Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2017shares | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | Lloyds Banking Group plc |
Document Type | 20-F |
Current Fiscal Year End Date | --12-31 |
Entity Common Stock, Shares Outstanding | 72,385,962,900 |
Amendment Flag | false |
Entity Central Index Key | 1,160,106 |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Filer Category | Large Accelerated Filer |
Entity Well-known Seasoned Issuer | Yes |
Document Period End Date | Dec. 31, 2017 |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | FY |
CONSOLIDATED INCOME STATEMENT
CONSOLIDATED INCOME STATEMENT - GBP (£) £ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Statement [Line Items] | ||||
Interest and similar income | £ 16,006 | £ 16,620 | £ 17,615 | |
Interest and similar expense | [1] | (5,094) | (7,346) | (6,297) |
Net interest income | 10,912 | 9,274 | 11,318 | |
Fee and commission income | 2,965 | 3,045 | 3,252 | |
Fee and commission expense | (1,382) | (1,356) | (1,442) | |
Net fee and commission income | 1,583 | 1,689 | 1,810 | |
Net trading income | 11,817 | 18,545 | 3,714 | |
Insurance premium income | 7,930 | 8,068 | 4,792 | |
Other operating income | 1,995 | 2,035 | 1,516 | |
Other income | 23,325 | 30,337 | 11,832 | |
Total income | 34,237 | 39,611 | 23,150 | |
Insurance claims | (15,578) | (22,344) | (5,729) | |
Total income, net of insurance claims | 18,659 | 17,267 | 17,421 | |
Regulatory provisions | (2,165) | (2,374) | (4,837) | |
Other operating expenses | (10,181) | (10,253) | (10,550) | |
Total operating expenses | (12,346) | (12,627) | (15,387) | |
Trading surplus | 6,313 | 4,640 | 2,034 | |
Impairment | (688) | (752) | (390) | |
Profit before tax | 5,625 | 3,888 | 1,644 | |
Taxation | (1,728) | (1,724) | (688) | |
Profit for the year | 3,897 | 2,164 | 956 | |
Profit attributable to ordinary shareholders | 3,392 | 1,651 | 466 | |
Profit attributable to other equity holders | [2] | 415 | 412 | 394 |
Profit attributable to equity holders | 3,807 | 2,063 | 860 | |
Profit attributable to non-controlling interests | £ 90 | £ 101 | £ 96 | |
Basic earnings per share (in Pounds per share) | £ 0.049 | £ 0.024 | £ 0.008 | |
Diluted earnings per share (in Pounds per share) | £ 0.048 | £ 0.024 | £ 0.008 | |
[1] | Includes 50 million (2016: 51 million; 2015: nil) of interest expense on assets with negative interest rates. | |||
[2] | The profit after tax attributable to other equity holders of 415 million (2016: 412 million; 2015: 394 million) is partly offset in reserves by a tax credit attributable to ordinary shareholders of 102 million (2016: 91 million; 2015: 80 million). |
CONSOLIDATED INCOME STATEMENT (
CONSOLIDATED INCOME STATEMENT (Parentheticals) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement [Line Items] | |||
Tax credit attributable to ordinary shareholders | £ 102 | £ 91 | £ 80 |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement [Line Items] | |||
Profit for the year | £ 3,897 | £ 2,164 | £ 956 |
Post-retirement defined benefit scheme remeasurements: | |||
Remeasurements before tax | 628 | (1,348) | (274) |
Tax | (146) | 320 | 59 |
482 | (1,028) | (215) | |
Gains and losses attributable to own credit risk: | |||
Gains (losses) before tax | (55) | ||
Tax | 15 | ||
(40) | |||
Movements in revaluation reserve in respect of available-for-sale financial assets: | |||
Adjustment on transfer from held-to-maturity portfolio | 1,544 | ||
Change in fair value | 303 | 356 | (318) |
Income statement transfers in respect of disposals | (446) | (575) | (51) |
Income statement transfers in respect of impairment | 6 | 173 | 4 |
Tax | 63 | (301) | (6) |
(74) | 1,197 | (371) | |
Movement in cash flow hedging reserve: | |||
Effective portion of changes in fair value taken to other comprehensive income | (363) | 2,432 | 537 |
Net income statement transfers | (651) | (557) | (956) |
Tax | 283 | (466) | 7 |
(731) | 1,409 | (412) | |
Currency translation differences (tax: nil) | (32) | (4) | (42) |
Other comprehensive income for the year, net of tax | (395) | 1,574 | (1,040) |
Total comprehensive income for the year | 3,502 | 3,738 | (84) |
Total comprehensive income attributable to ordinary shareholders | 2,997 | 3,225 | (574) |
Total comprehensive income attributable to other equity holders | 415 | 412 | 394 |
Total comprehensive income attributable to equity holders | 3,412 | 3,637 | (180) |
Total comprehensive income attributable to non-controlling interests | 90 | 101 | 96 |
Total comprehensive income for the year | £ 3,502 | £ 3,738 | £ (84) |
CONSOLIDATED BALANCE SHEET
CONSOLIDATED BALANCE SHEET - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Cash and balances at central banks | £ 58,521 | £ 47,452 |
Items in the course of collection from banks | 755 | 706 |
Trading and other financial assets at fair value through profit or loss | 162,878 | 151,174 |
Derivative financial instruments | 25,834 | 36,138 |
Loans and receivables: | ||
Loans and advances to banks | 6,611 | 26,902 |
Loans and advances to customers | 472,498 | 457,958 |
Debt securities | 3,643 | 3,397 |
482,752 | 488,257 | |
Available-for-sale financial assets | 42,098 | 56,524 |
Goodwill | 2,310 | 2,016 |
Value of in-force business | 4,839 | 5,042 |
Other intangible assets | 2,835 | 1,681 |
Property, plant and equipment | 12,727 | 12,972 |
Current tax recoverable | 16 | 28 |
Deferred tax assets | 2,284 | 2,706 |
Retirement benefit assets | 723 | 342 |
Other assets | 13,537 | 12,755 |
Total assets | 812,109 | 817,793 |
Liabilities | ||
Deposits from banks | 29,804 | 16,384 |
Customer deposits | 418,124 | 415,460 |
Items in course of transmission to banks | 584 | 548 |
Trading and other financial liabilities at fair value through profit or loss | 50,877 | 54,504 |
Derivative financial instruments | 26,124 | 34,924 |
Notes in circulation | 1,313 | 1,402 |
Debt securities in issue | 72,450 | 76,314 |
Liabilities arising from insurance contracts and participating investment contracts | 103,413 | 94,390 |
Liabilities arising from non-participating investment contracts | 15,447 | 20,112 |
Other liabilities | 20,730 | 29,193 |
Retirement benefit obligations | 358 | 822 |
Current tax liabilities | 274 | 226 |
Other provisions | 5,546 | 5,218 |
Subordinated liabilities | 17,922 | 19,831 |
Total liabilities | 762,966 | 769,328 |
Equity | ||
Share capital | 7,197 | 7,146 |
Share premium account | 17,634 | 17,622 |
Other reserves | 13,815 | 14,652 |
Retained profits | 4,905 | 3,250 |
Shareholders’ equity | 43,551 | 42,670 |
Other equity instruments | 5,355 | 5,355 |
Total equity excluding non-controlling interests | 48,906 | 48,025 |
Non-controlling interests | 237 | 440 |
Total equity | 49,143 | 48,465 |
Total equity and liabilities | £ 812,109 | £ 817,793 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - GBP (£) £ in Millions | Share premium [member] | Other reserves [member] | Retained earnings [member] | Equity attributable to owners of parent [member] | Other equity interest [member] | Non-controlling interests [member] | Total [Member] | Total | |||
Balance at 1 January at Dec. 31, 2014 | £ 24,427 | £ 13,216 | £ 5,692 | £ 43,335 | £ 5,355 | £ 1,213 | £ 49,903 | ||||
Comprehensive income | |||||||||||
Profit for the year | 860 | 860 | 96 | 956 | £ 956 | ||||||
Post-retirement defined benefit scheme remeasurements, net of tax | (215) | (215) | (215) | (215) | |||||||
Movements in revaluation reserve in respect of available-for-sale financial assets, net of tax | (371) | (371) | (371) | (371) | |||||||
Movements in cash flow hedging reserve, net of tax | (412) | (412) | (412) | (412) | |||||||
Currency translation differences (tax: £nil) | (42) | (42) | (42) | (42) | |||||||
Total other comprehensive income | (825) | (215) | (1,040) | (1,040) | (1,040) | ||||||
Total comprehensive income | (825) | 645 | (180) | 96 | (84) | (84) | |||||
Transactions with owners | |||||||||||
Dividends | (1,070) | [1] | (1,070) | (52) | (1,122) | ||||||
Distributions on other equity instruments, net of tax | (314) | (314) | (314) | ||||||||
Redemption of preference shares | 131 | (131) | 131 | [2] | |||||||
Movement in treasury shares | (816) | (816) | (816) | (816) | |||||||
Value of employee services: | |||||||||||
Share option schemes | 107 | 107 | 107 | ||||||||
Other employee award schemes | 172 | 172 | 172 | ||||||||
Adjustment on sale of non-controlling interest in TSB Banking Group plc | (825) | (825) | |||||||||
Other changes in non-controlling interests | (41) | (41) | |||||||||
Total transactions with owners | 131 | (131) | (1,921) | (1,921) | (918) | (2,839) | |||||
Balance At 31 December at Dec. 31, 2015 | 24,558 | 12,260 | 4,416 | 41,234 | 5,355 | 391 | 46,980 | ||||
Comprehensive income | |||||||||||
Profit for the year | 2,063 | 2,063 | 101 | 2,164 | 2,164 | ||||||
Post-retirement defined benefit scheme remeasurements, net of tax | (1,028) | (1,028) | (1,028) | (1,028) | |||||||
Movements in revaluation reserve in respect of available-for-sale financial assets, net of tax | 1,197 | 1,197 | 1,197 | 1,197 | |||||||
Movements in cash flow hedging reserve, net of tax | 1,409 | 1,409 | 1,409 | 1,409 | |||||||
Currency translation differences (tax: £nil) | (4) | (4) | (4) | (4) | |||||||
Total other comprehensive income | 2,602 | (1,028) | 1,574 | 1,574 | 1,574 | ||||||
Total comprehensive income | 2,602 | 1,035 | 3,637 | 101 | 3,738 | 3,738 | |||||
Transactions with owners | |||||||||||
Dividends | (2,014) | [1] | (2,014) | (29) | (2,043) | ||||||
Distributions on other equity instruments, net of tax | (321) | (321) | (321) | ||||||||
Redemption of preference shares | 210 | (210) | 210 | [2] | |||||||
Movement in treasury shares | (175) | (175) | (175) | (175) | |||||||
Value of employee services: | |||||||||||
Share option schemes | 141 | 141 | 141 | ||||||||
Other employee award schemes | 168 | 168 | 168 | ||||||||
Other changes in non-controlling interests | (23) | (23) | |||||||||
Total transactions with owners | 210 | (210) | (2,201) | (2,201) | (52) | (2,253) | |||||
Balance At 31 December at Dec. 31, 2016 | 24,768 | 14,652 | 3,250 | 42,670 | 5,355 | 440 | 48,465 | 48,465 | |||
Comprehensive income | |||||||||||
Profit for the year | 3,807 | 3,807 | 90 | 3,897 | 3,897 | ||||||
Post-retirement defined benefit scheme remeasurements, net of tax | 482 | 482 | 482 | 482 | |||||||
Movements in revaluation reserve in respect of available-for-sale financial assets, net of tax | (74) | (74) | (74) | (74) | |||||||
Gains and losses attributable to own credit risk, net of tax | (40) | (40) | (40) | (40) | |||||||
Movements in cash flow hedging reserve, net of tax | (731) | (731) | (731) | (731) | |||||||
Currency translation differences (tax: £nil) | (32) | (32) | (32) | (32) | |||||||
Total other comprehensive income | (837) | 442 | (395) | (395) | (395) | ||||||
Total comprehensive income | (837) | 4,249 | 3,412 | 90 | 3,502 | 3,502 | |||||
Transactions with owners | |||||||||||
Dividends | (2,284) | [1] | (2,284) | (51) | (2,335) | ||||||
Distributions on other equity instruments, net of tax | (313) | (313) | (313) | ||||||||
Redemption of preference shares | [2] | ||||||||||
Issue of ordinary shares | 63 | 63 | 63 | ||||||||
Movement in treasury shares | (411) | (411) | (411) | (411) | |||||||
Value of employee services: | |||||||||||
Share option schemes | 82 | 82 | 82 | ||||||||
Other employee award schemes | 332 | 332 | 332 | ||||||||
Other changes in non-controlling interests | (242) | (242) | |||||||||
Total transactions with owners | 63 | (2,594) | (2,531) | (293) | (2,824) | ||||||
Balance At 31 December at Dec. 31, 2017 | £ 24,831 | £ 13,815 | £ 4,905 | £ 43,551 | £ 5,355 | £ 237 | £ 49,143 | £ 49,143 | |||
[1] | Net of a credit in respect of unclaimed dividends written-back in accordance with the Company's Articles of Association. | ||||||||||
[2] | During the year ended 31 December 2016, the Company redeemed all of its outstanding 6.267% Non-cumulative Fixed to Floating Rate Callable US Dollar Preference Shares at their combined sterling equivalent par value of £210 million. These preference shares had been accounted for as subordinated liabilities. On redemption an amount of £210 million was transferred from the distributable merger reserve to the share premium account (2015: £131 million in respect of the redemption of the outstanding 6.0884% Non-cumulative Fixed to Floating Rate Preference Shares and 5.92% Non-cumulative Fixed to Floating Rate Preference Shares). |
CONSOLIDATED CASH FLOW STATEMEN
CONSOLIDATED CASH FLOW STATEMENT - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement [Line Items] | |||
Profit before tax | £ 5,625 | £ 3,888 | £ 1,644 |
Adjustments for: | |||
Change in operating assets | (15,492) | (12,218) | 34,700 |
Change in operating liabilities | (4,282) | (2,659) | (11,985) |
Non-cash and other items | 11,982 | 13,885 | (7,808) |
Tax paid | (1,028) | (822) | (179) |
Net cash (used in) provided by operating activities | (3,195) | 2,074 | 16,372 |
Cash flows from investing activities | |||
Purchase of financial assets | (7,862) | (4,930) | (19,354) |
Proceeds from sale and maturity of financial assets | 18,675 | 6,335 | 22,000 |
Purchase of fixed assets | (3,655) | (3,760) | (3,417) |
Proceeds from sale of fixed assets | 1,444 | 1,684 | 1,537 |
Acquisition of businesses, net of cash acquired | (1,923) | (20) | (5) |
Disposal of businesses, net of cash disposed | 129 | 5 | (4,071) |
Net cash provided by (used in) investing activities | 6,808 | (686) | (3,310) |
Cash flows from financing activities | |||
Dividends paid to ordinary shareholders | (2,284) | (2,014) | (1,070) |
Distributions on other equity instruments | (415) | (412) | (394) |
Dividends paid to non-controlling interests | (51) | (29) | (52) |
Interest paid on subordinated liabilities | (1,275) | (1,687) | (1,840) |
Proceeds from issue of subordinated liabilities | 1,061 | 338 | |
Proceeds from issue of ordinary shares | 14 | ||
Repayment of subordinated liabilities | (1,008) | (7,885) | (3,199) |
Changes in non-controlling interests | (8) | (41) | |
Net cash used in financing activities | (5,019) | (10,974) | (6,258) |
Effects of exchange rate changes on cash and cash equivalents | 21 | 2 | |
Change in cash and cash equivalents | (1,406) | (9,565) | 6,806 |
Cash and cash equivalents at beginning of year | 62,388 | 71,953 | 65,147 |
Cash and cash equivalents at end of year | £ 60,982 | £ 62,388 | £ 71,953 |
BASIS OF PREPARATION
BASIS OF PREPARATION | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of basis of preparation of financial statements [text block] [Abstract] | |
Disclosure of basis of preparation of financial statements [text block] | NOTE 1: BASIS OF PREPARATION The consolidated financial statements of Lloyds Banking Group plc have been prepared in accordance with International Financial Reporting Standards (IFRS). IFRS comprises accounting standards prefixed IFRS issued by the International Accounting Standards Board (IASB) and those prefixed IAS issued by the IASB’s predecessor body as well as interpretations issued by the IFRS Interpretations Committee (IFRS IC) and its predecessor body. The financial information has been prepared under the historical cost convention, as modified by the revaluation of investment properties, available-for-sale financial assets, trading securities and certain other financial assets and liabilities at fair value through profit or loss and all derivative contracts. The directors consider that it is appropriate to continue to adopt the going concern basis in preparing the financial statements. To improve transparency and ease of reference, certain disclosures required under IFRS have been included within the risk and renumeration disclosures on pages 36 to 108 and 117 to 137. These disclosures are covered by the Audit opinion (inclued on page F-2) where referenced as audited. With effect from 1 January 2017 the Group has elected to early adopt the provision in IFRS 9 for gains and losses attributable to changes in own credit risk on financial liabilities designated at fair value through profit or loss to be presented in other comprehensive income. The impact has been to increase profit after tax and reduce other comprehensive income by £40 million in the year ended 31 December 2017; there is no impact on total liabilities or shareholders’ equity. Comparatives have not been restated. Details of those IFRS pronouncements which will be relevant to the Group but which were not effective at 31 December 2017 and which have not been applied inpreparing these financial statements are given in note 54. |
ACCOUNTING POLICIES
ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of significant accounting policies [text block] [Abstract] | |
Disclosure of significant accounting policies [text block] | NOTE 2: ACCOUNTING POLICIES The Group’s accounting policies are set out below. These accounting policies have been applied consistently. (A) Consolidation The assets, liabilities and results of Group undertakings (including structured entities) are included in the financial statements on the basis of accounts made up to the reporting date. Group undertakings include subsidiaries, associates and joint ventures. (1) SUBSIDIARIES Subsidiaries are entities controlled by the Group. The Group controls an entity when it has power over the entity, is exposed to, or has rights to, variable returns from its involvement with the entity, and has the ability to affect those returns through the exercise of its power. This generally accompanies a shareholding of more than one half of the voting rights although in certain circumstances a holding of less than one half of the voting rights may still result in the ability of the Group to exercise control. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether the Group controls another entity. The Group reassesses whether or not it controls an entity if facts and circumstances indicate that there are changes to any of the above elements. Subsidiaries are fully consolidated from the date on which control is transferred to the Group; they are de-consolidated from the date that control ceases. The Group consolidates collective investment vehicles if its beneficial ownership interests give it substantive rights to remove the external fund manager over the investment activities of the fund. Where a subsidiary of the Group is the fund manager of a collective investment vehicle, the Group considers a number of factors in determining whether it acts as principal, and therefore controls the collective investment vehicle, including: an assessment of the scope of the Group’s decision making authority over the investment vehicle; the rights held by other parties including substantive removal rights without cause over the Group acting as fund manager; the remuneration to which the Group is entitled in its capacity as decision maker; and the Group’s exposure to variable returns from the beneficial interest it holds in the investment vehicle. Consolidation may be appropriate in circumstances where the Group has less than a majority beneficial interest. Where a collective investment vehicle is consolidated the interests of parties other than the Group are reported in other liabilities and the movement in these interests in interest expense. Structured entities are entities that are designed so that their activities are not governed by way of voting rights. In assessing whether the Group has power over such entities in which it has an interest, the Group considers factors such as the purpose and design of the entity; its practical ability to direct the relevant activities of the entity; the nature of the relationship with the entity; and the size of its exposure to the variability of returns of the entity. The treatment of transactions with non-controlling interests depends on whether, as a result of the transaction, the Group loses control of the subsidiary. Changes in the parent’s ownership interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions; any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognised directly in equity and attributed to the owners of the parent entity. Where the Group loses control of the subsidiary, at the date when control is lost the amount of any non-controlling interest in that former subsidiary is derecognised and any investment retained in the former subsidiary is remeasured to its fair value; the gain or loss that is recognised in profit or loss on the partial disposal of the subsidiary includes the gain or loss on the remeasurement of the retained interest. Intercompany transactions, balances and unrealised gains and losses on transactions between Group companies are eliminated. The acquisition method of accounting is used to account for business combinations by the Group. The consideration for the acquisition of a subsidiary is the fair value of the assets transferred, the liabilities incurred and the equity interests issued by the Group. The consideration includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Acquisition related costs are expensed as incurred except those relating to the issuance of debt instruments (see (E)(5) below) or share capital (see (P) below). Identifiable assets acquired and liabilities assumed in a business combination are measured initially at their fair value at the acquisition date. (2) JOINT VENTURES AND ASSOCIATES Joint ventures are joint arrangements over which the Group has joint control with other parties and has rights to the net assets of the arrangements. Associates are entities over which the Group has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the entity, but is not control or joint control of those policies, and is generally achieved through holding between 20 per cent and 50 per cent of the voting share capital of the entity. The Group utilises the venture capital exemption for investments where significant influence or joint control is present and the business unit operates as a venture capital business. These investments are designated at initial recognition at fair value through profit or loss. Otherwise, the Group’s investments in joint ventures and associates are accounted for by the equity method of accounting. (B) Goodwill Goodwill arises on business combinations and represents the excess of the cost of an acquisition over the fair value of the Group’s share of the identifiable assets, liabilities and contingent liabilities acquired. Where the fair value of the Group’s share of the identifiable assets, liabilities and contingent liabilities of the acquired entity is greater than the cost of acquisition, the excess is recognised immediately in the income statement. Goodwill is recognised as an asset at cost and is tested at least annually for impairment. If an impairment is identified the carrying value of the goodwill is written down immediately through the income statement and is not subsequently reversed. At the date of disposal of a subsidiary, the carrying value of attributable goodwill is included in the calculation of the profit or loss on disposal. (C) Other intangible assets Intangible assets which have been determined to have a finite useful life are amortised on a straight line basis over their estimated useful life as follows: up to 7 years for capitalised software; 10 to 15 years for brands and other intangibles. Intangible assets with finite useful lives are reviewed at each reporting date to assess whether there is any indication that they are impaired. If any such indication exists the recoverable amount of the asset is determined and in the event that the asset’s carrying amount is greater than its recoverable amount, it is written down immediately. Certain brands have been determined to have an indefinite useful life and are not amortised. Such intangible assets are reassessed annually to reconfirm that an indefinite useful life remains appropriate. In the event that an indefinite life is inappropriate a finite life is determined and an impairment review is performed on the asset. (D) Revenue recognition Interest income and expense are recognised in the income statement for all interest-bearing financial instruments using the effective interest method, except for those classified at fair value through profit or loss. The effective interest method is a method of calculating the amortised cost of a financial asset or liability and of allocating the interest income or interest expense over the expected life of the financial instrument. The effective interest rate is the rate that exactly discounts the estimated future cash payments or receipts over the expected life of the financial instrument or, when appropriate, a shorter period, to the net carrying amount of the financial asset or financial liability, including early redemption fees, and related penalties; and premiums and discounts that are an integral part of the overall return. Direct incremental transaction costs related to the acquisition, issue or disposal of a financial instrument are also taken into account. Fees and commissions which are not an integral part of the effective interest rate are generally recognised when the service has been provided. Loan commitment fees for loans that are likely to be drawn down are deferred (together with related direct costs) and recognised as an adjustment to the effective interest rate on the loan once drawn. Where it is unlikely that loan commitments will be drawn, loan commitment fees are recognised over the life of the facility. Dividend income is recognised when the right to receive payment is established. Revenue recognition policies specific to life insurance and general insurance business are detailed below (see (M) below); those relating to leases are set out in (J)(2) below. (E) Financial assets and liabilities On initial recognition, financial assets are classified into fair value through profit or loss, available-for-sale financial assets, held-to-maturity investments or loans and receivables. Financial liabilities are measured at amortised cost, except for trading liabilities and other financial liabilities designated at fair value through profit or loss on initial recognition which are held at fair value. The Group initially recognises loans and receivables, deposits, debt securities in issue and subordinated liabilities when the Group becomes a party to the contractual provisions of the instrument. Regular way purchases and sales of securities and other financial assets and trading liabilities are recognised on trade date, being the date that the Group is committed to purchase or sell an asset. Financial assets are derecognised when the contractual right to receive cash flows from those assets has expired or when the Group has transferred its contractual right to receive the cash flows from the assets and either: substantially all of the risks and rewards of ownership have been transferred; or the Group has neither retained nor transferred substantially all of the risks and rewards, but has transferred control. Financial liabilities are derecognised when they are extinguished (i.e. when the obligation is discharged), cancelled or expire. (1) FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS Financial instruments are classified at fair value through profit or loss where they are trading securities or where they are designated at fair value through profit or loss by management. Derivatives are carried at fair value (see (F) below). Held for trading: Classified at fair value through profit and loss: – it eliminates or significantly reduces the inconsistent treatment that would otherwise arise from measuring the assets and liabilities or recognising gains or losses on different bases. The main type of financial assets designated by the Group at fair value through profit or loss are assets backing insurance contracts and investment contracts issued by the Group’s life insurance businesses. Fair value designation allows changes in the fair value of these assets to be recorded in the income statement along with the changes in the value of the associated liabilities, thereby significantly reducing the measurement inconsistency had the assets been classified as available-for-sale financial assets. – the assets and liabilities are part of a group which is managed, and its performance evaluated, on a fair value basis in accordance with a documented risk management or investment strategy, with management information also prepared on this basis. – where the assets and liabilities contain one or more embedded derivatives that significantly modify the cash flows arising under the contract and would otherwise need to be separately accounted for. The fair values of assets and liabilities traded in active markets are based on current bid and offer prices respectively. If the market is not active the Group establishes a fair value by using valuation techniques. Refer to note 48(3) (Financial instruments: Financial assets and liabilities carried at fair value) for details of valuation techniques and significant inputs to valuation models. (2) AVAILABLE-FOR-SALE FINANCIAL ASSETS Debt securities and equity shares that are not classified as trading securities, at fair value through profit or loss, held-to-maturity investments or as loans and receivables are classified as available-for-sale financial assets and are recognised in the balance sheet at their fair value, inclusive of transaction costs. Such assets are intended to be held for an indeterminate period of time and may be sold in response to needs for liquidity or changes in interest rates, exchange rates or equity prices. Gains and losses arising from changes in the fair value of investments classified as available-for-sale are recognised directly in other comprehensive income, until the financial asset is either sold, becomes impaired or matures, at which time the cumulative gain or loss previously recognised in other comprehensive income is recognised in the income statement. Interest calculated using the effective interest method and foreign exchange gains and losses on debt securities denominated in foreign currencies are recognised in the income statement. The Group is permitted to transfer a financial asset from the available-for-sale category to the loans and receivables category where that asset would otherwise have met the definition of loans and receivables at the time of reclassification and where there is both the intention and ability to hold that financial asset for the foreseeable future. Reclassification of a financial asset from the available-for-sale category to the held-to-maturity category is permitted when the Group has the ability and intent to hold that financial asset to maturity. Reclassifications are made at fair value as of the reclassification date. Fair value becomes the new cost or amortised cost as applicable. Effective interest rates for financial assets reclassified to the loans and receivables and held-to-maturity categories are determined at the reclassification date. Any previous gain or loss on a transferred asset that has been recognised in equity is amortised to profit or loss over the remaining life of the investment using the effective interest method or until the asset becomes impaired. Any difference between the new amortised cost and the expected cash flows is also amortised over the remaining life of the asset using the effective interest method. When an impairment loss is recognised in respect of available-for-sale assets transferred, the unamortised balance of any available-for-sale reserve that remains in equity is transferred to the income statement and recorded as part of the impairment loss. (3) LOANS AND RECEIVABLES Loans and receivables include loans and advances to banks and customers and eligible assets including those transferred into this category out of the fair value through profit or loss or available-for-sale financial assets categories. Loans and receivables are initially recognised when cash is advanced to the borrowers at fair value inclusive of transaction costs or, for eligible assets transferred into this category, their fair value at the date of transfer. Financial assets classified as loans and receivables are accounted for at amortised cost using the effective interest method (see (D) above) less provision for impairment (see (H) below). The Group has entered into securitisation and similar transactions to finance certain loans and advances to customers. In cases where the securitisation vehicles are funded by the issue of debt, on terms whereby the majority of the risks and rewards of the portfolio of securitised lending are retained by the Group, these loans and advances continue to be recognised by the Group, together with a corresponding liability for the funding. (4) BORROWINGS Borrowings (which include deposits from banks, customer deposits, debt securities in issue and subordinated liabilities) are recognised initially at fair value, being their issue proceeds net of transaction costs incurred. These instruments are subsequently stated at amortised cost using the effective interest method. Preference shares and other instruments which carry a mandatory coupon or are redeemable on a specific date are classified as financial liabilities. The coupon on these instruments is recognised in the income statement as interest expense. Securities which carry a discretionary coupon and have no fixed maturity or redemption date are classified as other equity instruments. Interest payments on these securities are recognised, net of tax, as distributions from equity in the period in which they are paid. An exchange of financial liabilities on substantially different terms is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. The difference between the carrying amount of a financial liability extinguished and the new financial liability is recognised in profit or loss together with any related costs or fees incurred. When a financial liability is exchanged for an equity instrument, the new equity instrument is recognised at fair value and any difference between the original carrying value of the liability and the fair value of the new equity is recognised in the profit or loss. (5) SALE AND REPURCHASE AGREEMENTS (INCLUDING SECURITIES LENDING AND BORROWING) Securities sold subject to repurchase agreements (repos) continue to be recognised on the balance sheet where substantially all of the risks and rewards are retained. Funds received under these arrangements are included in deposits from banks, customer deposits, or trading liabilities. Conversely, securities purchased under agreements to resell (reverse repos), where the Group does not acquire substantially all of the risks and rewards of ownership, are recorded as loans and receivables or trading securities. The difference between sale and repurchase price is treated as interest and accrued over the life of the agreements using the effective interest method. Securities borrowing and lending transactions are typically secured; collateral takes the form of securities or cash advanced or received. Securities lent to counterparties are retained on the balance sheet. Securities borrowed are not recognised on the balance sheet, unless these are sold to third parties, in which case the obligation to return them is recorded at fair value as a trading liability. Cash collateral given or received is treated as a loan and receivable or customer deposit. (F) Derivative financial instruments and hedge accounting Derivatives are classified as trading except those designated as effective hedging instruments which meet the criteria under IAS 39. All derivatives are recognised at their fair value. Derivatives are carried in the balance sheet as assets when their fair value is positive and as liabilities when their fair value is negative. Refer to note 48(3) (Financial instruments: Financial assets and liabilities carried at fair value) for details of valuation techniques and significant inputs to valuation models. Changes in the fair value of any derivative instrument that is not part of a hedging relationship are recognised immediately in the income statement. Derivatives embedded in financial instruments and insurance contracts (unless the embedded derivative is itself an insurance contract) are treated as separate derivatives when their economic characteristics and risks are not closely related to those of the host contract and the host contract is not carried at fair value through profit or loss. These embedded derivatives are measured at fair value with changes in fair value recognised in the income statement. In accordance with IFRS 4 Insurance Contracts The method of recognising the movements in the fair value of derivatives depends on whether they are designated as hedging instruments and, if so, the nature of the item being hedged. Hedge accounting allows one financial instrument, generally a derivative such as a swap, to be designated as a hedge of another financial instrument such as a loan or deposit or a portfolio of such instruments. At the inception of the hedge relationship, formal documentation is drawn up specifying the hedging strategy, the hedged item, the hedging instrument and the methodology that will be used to measure the effectiveness of the hedge relationship in offsetting changes in the fair value or cash flow of the hedged risk. The effectiveness of the hedging relationship is tested both at inception and throughout its life and if at any point it is concluded that it is no longer highly effective in achieving its documented objective, hedge accounting is discontinued. (1) FAIR VALUE HEDGES Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in the income statement, together with the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk; this also applies if the hedged asset is classified as an available-for-sale financial asset. If the hedge no longer meets the criteria for hedge accounting, changes in the fair value of the hedged item attributable to the hedged risk are no longer recognised in the income statement. The cumulative adjustment that has been made to the carrying amount of the hedged item is amortised to the income statement using the effective interest method over the period to maturity. (2) CASH FLOW HEDGES The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognised in other comprehensive income in the cash flow hedge reserve. The gain or loss relating to the ineffective portion is recognised immediately in the income statement. Amounts accumulated in equity are reclassified to the income statement in the periods in which the hedged item affects profit or loss. When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss existing in equity at that time remains in equity and is recognised in the income statement when the forecast transaction is ultimately recognised in the income statement. When a forecast transaction is no longer expected to occur, the cumulative gain or loss that was reported in equity is immediately transferred to the income statement. (3) NET INVESTMENT HEDGES Hedges of net investments in foreign operations are accounted for similarly to cash flow hedges. Any gain or loss on the hedging instrument relating to the effective portion of the hedge is recognised in other comprehensive income, the gain or loss relating to the ineffective portion is recognised immediately in the income statement. Gains and losses accumulated in equity are included in the income statement when the foreign operation is disposed of. The hedging instrument used in net investment hedges may include non-derivative liabilities as well as derivative financial instruments. (G) Offset Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right of set-off and there is an intention to settle on a net basis, or realise the asset and settle the liability simultaneously. Cash collateral on exchange traded derivative transactions is presented gross unless the collateral cash flows are always settled net with the derivative cash flows. In certain situations, even though master netting agreements exist, the lack of management intention to settle on a net basis results in the financial assets and liabilities being reported gross on the balance sheet. (H) Impairment of financial assets (1) ASSETS ACCOUNTED FOR AT AMORTISED COST At each balance sheet date the Group assesses whether, as a result of one or more events occurring after initial recognition of the financial asset and prior to the balance sheet date, there is objective evidence that a financial asset or group of financial assets has become impaired. Where such an event, including the identification of fraud, has had an impact on the estimated future cash flows of the financial asset or group of financial assets, an impairment allowance is recognised. The amount of impairment allowance is the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the asset’s original effective interest rate. If the asset has a variable rate of interest, the discount rate used for measuring the impairment allowance is the current effective interest rate. Subsequent to the recognition of an impairment loss on a financial asset or a group of financial assets, interest income continues to be recognised on an effective interest rate basis, on the asset’s carrying value net of impairment provisions. If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, the allowance is adjusted and the amount of the reversal is recognised in the income statement. Impairment allowances are assessed individually for financial assets that are individually significant. Impairment allowances for portfolios of smaller balance homogenous loans such as most residential mortgages, personal loans and credit card balances that are below the individual assessment thresholds, and for loan losses that have been incurred but not separately identified at the balance sheet date, are determined on a collective basis. In certain circumstances, the Group will renegotiate the original terms of a customer’s loan, either as part of an ongoing customer relationship or in response to adverse changes in the circumstances of the borrower. Where the renegotiated payments of interest and principal will not recover the original carrying value of the asset, the asset continues to be reported as past due and is considered impaired. Where the renegotiated payments of interest and principal will recover the original carrying value of the asset, the loan is no longer reported as past due or impaired provided that payments are made in accordance with the revised terms. Renegotiation may lead to the loan and associated provision being derecognised and a new loan being recognised initially at fair value. A loan or advance is normally written off, either partially or in full, against the related allowance when the proceeds from realising any available security have been received or there is no realistic prospect of recovery and the amount of the loss has been determined. Subsequent recoveries of amounts previously written off decrease the amount of impairment losses recorded in the income statement. For both secured and unsecured retail balances, the write-off takes place only once an extensive set of collections processes has been completed, or the status of the account reaches a point where policy dictates that forbearance is no longer appropriate. For commercial lending, a write-off occurs if the loan facility with the customer is restructured, the asset is under administration and the only monies that can be received are the amounts estimated by the administrator, the underlying assets are disposed and a decision is made that no further settlement monies will be received, or external evidence (for example, third party valuations) is available that there has been an irreversible decline in expected cash flows. (2) AVAILABLE-FOR-SALE FINANCIAL ASSETS The Group assesses, at each balance sheet date, whether there is objective evidence that an available-for-sale financial asset is impaired. In addition to the criteria for financial assets accounted for at amortised cost set out above, this assessment involves reviewing the current financial circumstances (including creditworthiness) and future prospects of the issuer, assessing the future cash flows expected to be realised and, in the case of equity shares, considering whether there has been a significant or prolonged decline in the fair value of the asset below its cost. If an impairment loss has been incurred, the cumulative loss measured as the difference between the acquisition cost (net of any principal repayment and amortisation) and the current fair value, less any impairment loss on that asset previously recognised, is reclassified from equity to the income statement. For impaired debt instruments, impairment losses are recognised in subsequent periods when it is determined that there has been a further negative impact on expected future cash flows; a reduction in fair value caused by general widening of credit spreads would not, of itself, result in additional impairment. If, in a subsequent period, the fair value of a debt instrument classified as available-for-sale increases and the increase can be objectively related to an event occurring after the impairment loss was recognised, an amount not greater than the original impairment loss is credited to the income statement; any excess is taken to other comprehensive income. Impairment losses recognised in the income statement on equity instruments are not reversed through the income statement. (I) Property, plant and equipment Property, plant and equipment (other than investment property) is included at cost less accumulated depreciation. The value of land (included in premises) is not depreciated. Depreciation on other assets is calculated using the straight-line method to allocate the difference between the cost and the residual value over their estimated useful lives, as follows: the shorter of 50 years and the remaining period of the lease for freehold/long and short leasehold premises; the shorter of 10 years and, if lease renewal is not likely, the remaining period of the lease for leasehold improvements; 10 to 20 years for fixtures and furnishings; and 2 to 8 years for other equipment and motor vehicles. The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date. Assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. In the event that an asset’s carrying amount is determined to be greater than its recoverable amount it is written down immediately. The recoverable amount is the higher of the asset’s fair value less costs to sell and its value in use. Investment property comprises freehold and long leasehold land and buildings that are held either to earn rental income or for capital accretion or both, primarily within the life insurance funds. In accordance with the guidance published by the Royal Institution of Chartered Surveyors, investment property is carried at fair value based on current prices for similar properties, adjusted for the specific characteristics of the property (such as location or condition). If this information is not available, the Group uses alternative valuation methods such as discounted cash flow projections or recent prices in less active markets. These valuations are reviewed at least annually by independent professionally qualified valuers. Investment property being redeveloped for continuing use as investment property, or for which the market has become less active, continues to be valued at fair value. (J) Leases (1) AS LESSEE The leases entered into by the Group are primarily operating leases. Operating lease rentals payable are charged to the income statement on a straight-line basis over the period of the lease. When an operating lease is terminated before the end of the lease period, any payment made to the lessor by way of penalty is recognised as an expense in the period of termination. (2) AS LESSOR Assets leased to customers are classified as finance leases if the lease agreements transfer substantially all the risks and rewards of ownership to the lessee but not necessarily legal title. All other leases are classified as operating leases. When assets are subject to finance leases, the present value of the lease payments, together with any unguaranteed residual value, is recognised as a receivable, net of provisions, within loans and advances to banks and cu |
CRITICAL ACCOUNTING ESTIMATES
CRITICAL ACCOUNTING ESTIMATES | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of accounting judgements and estimates [text block] [Abstract] | |
Disclosure of accounting judgements and estimates [text block] | NOTE 3: CRITICAL ACCOUNTING ESTIMATES The preparation of the Group’s financial statements in accordance with IFRS requires management to make judgements, estimates and assumptions in applying the accounting policies that affect the reported amounts of assets, liabilities, income and expenses. Due to the inherent uncertainty in making estimates, actual results reported in future periods may be based upon amounts which differ from those estimates. Estimates, judgements and assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The significant judgements made by management in applying the Group’s accounting policies and the key sources of estimation uncertainty in these financial statements, which together are deemed critical to the Group’s results and financial position, are as follows: – Allowance for impairment losses on loans and receivables (note 20); – Valuation of assets and liabilities arising from insurance business (notes 24 and 31); – Defined benefit pension scheme obligations (note 35); – Recoverability of deferred tax assets (note 36); – Payment protection insurance and other regulatory provisions (note 37); and – Fair value of financial instruments (note 48). |
SEGMENTAL ANALYSIS
SEGMENTAL ANALYSIS | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of entity's operating segments [text block] [Abstract] | |
Disclosure of entity's operating segments [text block] | NOTE 4: SEGMENTAL ANALYSIS Lloyds Banking Group provides a wide range of banking and financial services in the UK and in certain locations overseas. The Group Executive Committee has been determined to be the chief operating decision maker for the Group. The Group’s operating segments reflect its organisational and management structures. The Group Executive Committee reviews the Group’s internal reporting based around these segments in order to assess performance and allocate resources. GEC considers interest income and expense on a net basis and consequently the total interest income and expense for all reportable segments is presented net. The segments are differentiated by the type of products provided, by whether the customers are individuals or corporate entities. The segmental results and comparatives are presented on an underlying basis, the basis reviewed by the chief operating decision maker. The effects of the following are excluded in arriving at underlying profit: – losses on redemption of the Enhanced Capital Notes and the volatility in the value of the embedded equity conversion feature; – market volatility and asset sales, which includes the effects of certain asset sales, the volatility relating to the Group’s own debt and hedging arrangements and that arising in the insurance businesses and insurance gross up; – the unwind of acquisition-related fair value adjustments and the amortisation of purchased intangible assets; – restructuring costs, comprising costs relating to the Simplification programme and the costs of implementing regulatory reform and ring-fencing, the rationalisation of the non-branch property portfolio and the integration of MBNA; – TSB build and dual running costs and the loss relating to the TSB sale in 2015; and – payment protection insurance and other conduct provisions. For the purposes of the underlying income statement, operating lease depreciation (net of gains on disposal of operating lease assets) is shown as an adjustment to total income. As part of a Group restructuring during 2017: – the Consumer Finance division has now become part of Retail; – the Group’s UK wealth business, previously part of Retail, has been transferred to the Insurance division, now renamed Insurance and Wealth; – the Group’s International wealth business, previously part of Retail, has been transferred to the Commercial Banking division; and – the Group’s venture capital business, previously part of Commercial Banking, has been transferred to Other. Comparatives have been restated accordingly. Following this restructuring, the Group’s activities are now organised into three financial reporting segments: Retail; Commercial Banking; and Insurance and Wealth. Retail offers a broad range of financial service products, including current accounts, savings, mortgages, motor finance and unsecured consumer lending to personal and small business customers. Commercial Banking provides a range of products and services such as lending, transactional banking, working capital management, risk management and debt capital markets services to SMEs, corporates and financial institutions. Insurance and Wealth offers insurance, investment and wealth management products and services. Other includes certain assets previously reported as outside of the Group’s risk appetite and income and expenditure not attributed to divisions, including the costs of certain central and head office functions and the Group’s private equity business, Lloyds Development Capital. Inter-segment services are generally recharged at cost, with the exception of the internal commission arrangements between the UK branch and other distribution networks and the insurance product manufacturing businesses within the Group, where a profit margin is also charged. Inter-segment lending and deposits are generally entered into at market rates, except that non-interest bearing balances are priced at a rate that reflects the external yield that could be earned on such funds. For the majority of those derivative contracts entered into by business units for risk management purposes, the business unit recognises the net interest income or expense on an accrual accounting basis and transfers the remainder of the movement in the fair value of the derivative to the central group segment where the resulting accounting volatility is managed where possible through the establishment of hedge accounting relationships. Any change in fair value of the hedged instrument attributable to the hedged risk is also recorded within the central group segment. This allocation of the fair value of the derivative and change in fair value of the hedged instrument attributable to the hedged risk avoids accounting asymmetry in segmental results and leads to accounting volatility, which is managed centrally and reported within Other. Retail Commercial Insurance Other Underlying basis Year ended 31 December 2017 Net interest income 8,706 3,086 133 395 12,320 Other income, net of insurance claims 2,217 1,761 1,846 381 6,205 Total underlying income, net of insurance claims 10,923 4,847 1,979 776 18,525 Operating lease depreciation 1 (946 ) (44 ) – (63 ) (1,053 ) Net income 9,977 4,803 1,979 713 17,472 Operating costs (4,857 ) (2,199 ) (1,040 ) (88 ) (8,184 ) Impairment (charge) credit (717 ) (115 ) – 37 (795 ) Underlying profit 4,403 2,489 939 662 8,493 External income 12,651 3,093 1,883 898 18,525 Inter-segment income (1,728 ) 1,754 96 (122 ) – Segment underlying income, net of insurance claims 10,923 4,847 1,979 776 18,525 Segment external assets 349,116 174,081 151,986 136,926 812,109 Segment customer deposits 253,127 147,588 13,770 3,639 418,124 Segment external liabilities 258,423 223,543 157,824 123,176 762,966 Other segment items reflected in income statement above: Depreciation and amortisation 1,545 259 197 369 2,370 Increase in value of in-force business – – (165 ) – (165 ) Defined benefit scheme charges 137 48 25 149 359 Other segment items: Additions to fixed assets 2,431 107 274 843 3,655 Investments in joint ventures and associates at end of year 9 – – 56 65 1 Net of profits on disposal of operating lease assets of £32 million. Retail Commercial Insurance Other Underlying Year ended 31 December 2016 1 Net interest income 8,073 2,934 80 348 11,435 Other income, net of insurance claims 2,162 1,756 1,939 208 6,065 Total underlying income, net of insurance claims 10,235 4,690 2,019 556 17,500 Operating lease depreciation 2 (775 ) (105 ) – (15 ) (895 ) Net income 9,460 4,585 2,019 541 16,605 Operating costs (4,748 ) (2,189 ) (1,046 ) (110 ) (8,093 ) Impairment (charge) credit (654 ) (17 ) – 26 (645 ) Underlying profit 4,058 2,379 973 457 7,867 External income 12,203 3,408 1,434 455 17,500 Inter-segment income (1,968 ) 1,282 585 101 – Segment underlying income, net of insurance claims 10,235 4,690 2,019 556 17,500 Segment external assets 338,939 187,405 154,782 136,667 817,793 Segment customer deposits 256,453 141,302 13,798 3,907 415,460 Segment external liabilities 264,915 230,030 160,815 113,568 769,328 Other segment items reflected in Depreciation and amortisation 1,343 313 169 555 2,380 Decrease in value of in-force business – – 472 – 472 Defined benefit scheme charges 141 49 31 66 287 Other segment items: Additions to fixed assets 2,362 126 481 791 3,760 Investments in joint ventures and associates at end of year 6 – – 53 59 1 Restated – see page F-18. 2 Net of profits on disposal of operating lease assets of £58 million. Retail Commercial Insurance Other Underlying Year ended 31 December 2015 1 Net interest income 8,253 2,774 59 396 11,482 Other income, net of insurance claims 2,263 1,842 1,986 64 6,155 Total underlying income, net of insurance claims 10,516 4,616 2,045 460 17,637 Operating lease depreciation 2 (720 ) (30 ) – (14 ) (764 ) Net income 9,796 4,586 2,045 446 16,873 Operating costs (4,958 ) (2,225 ) (954 ) (174 ) (8,311 ) Impairment (charge) credit (583 ) 22 (1 ) (6 ) (568 ) TSB – – – 118 118 Underlying profit 4,255 2,383 1,090 384 8,112 External income 12,217 3,364 2,155 (99 ) 17,637 Inter-segment income (1,701 ) 1,252 (110 ) 559 – Segment underlying income, net of insurance claims 10,516 4,616 2,045 460 17,637 Segment external assets 340,263 178,110 145,737 142,578 806,688 Segment customer deposits 261,646 140,675 14,477 1,528 418,326 Segment external liabilities 270,666 235,221 150,702 103,119 759,708 Other segment items reflected in Depreciation and amortisation 1,247 203 124 538 2,112 Decrease in value of in-force business – – (162 ) – (162 ) Defined benefit scheme charges 124 32 17 142 315 Other segment items: Additions to fixed assets 2,133 155 343 786 3,417 Investments in joint ventures and associates at end of year 5 – – 42 47 1 Restated – see page F-18. 2 Net of profits on disposal of operating lease assets of £66 million. Reconciliation of underlying basis to statutory results The underlying basis is the basis on which financial information is presented to the chief operating decision maker which excludes certain items included in the statutory results. The table below reconciles the statutory results to the underlying basis. Lloyds Removal of: Banking Group statutory £m Volatility and other items 1 TSB 6 Insurance gross up 2 PPI Other Underlying Year ended 31 December 2017 Net interest income 10,912 228 – 1,180 – – 12,320 Other income, net of insurance claims 7,747 (186 ) – (1,356 ) – – 6,205 Total income, net of insurance claims 18,659 42 – (176 ) – – 18,525 Operating lease depreciation 3 (1,053 ) – – – – (1,053 ) Net income 18,659 (1,011 ) – (176 ) – – 17,472 Operating expenses (12,346 ) 1,821 – 176 1,300 865 (8,184 ) Impairment (688 ) (107 ) – – – – (795 ) Profit 5,625 703 – – 1,300 865 8,493 Lloyds Removal of: Banking Volatility 4 TSB 6 Insurance 2 PPI Other Underlying Year ended 31 December 2016 Net interest income 9,274 263 – 1,898 – – 11,435 Other income, net of insurance claims 7,993 121 – (2,110 ) – 61 6,065 Total income, net of insurance claims 17,267 384 – (212 ) – 61 17,500 Operating lease depreciation 3 (895 ) – – – – (895 ) Net income 17,267 (511 ) – (212 ) – 61 16,605 Operating expenses (12,627 ) 1,948 – 212 1,350 1,024 (8,093 ) Impairment (752 ) 107 – – – – (645 ) Profit 3,888 1,544 – – 1,350 1,085 7,867 Lloyds Removal of: Banking Volatility 5 TSB 6 Insurance 2 PPI Other Underlying Year ended 31 December 2015 Net interest income 11,318 318 (192 ) 38 – – 11,482 Other income, net of insurance claims 6,103 209 (31 ) (126 ) – – 6,155 Total income, net of insurance claims 17,421 527 (223 ) (88 ) – – 17,637 Operating lease depreciation 3 (764 ) – – – – (764 ) Net income 17,421 (237 ) (223 ) (88 ) – – 16,873 Operating expenses (15,387 ) 2,065 86 88 4,000 837 (8,311 ) Impairment (390 ) (197 ) 19 – – – (568 ) TSB – – 118 – – – 118 Profit 1,644 1,631 – – 4,000 837 8,112 1 In the year ended 31 December 2017 this comprises the effects of asset sales (gain of £30 million); volatile items (gain of £263 million); liability management (loss of £14 million); the amortisation of purchased intangibles (£91 million); restructuring costs (£621 million, principally comprising costs relating to the Simplification programme; the rationalisation of the non-branch property portfolio, the work on implementing the ring-fencing requirements and the integration of MBNA); and the fair value unwind and other items (loss of £270 million). 2 The Group’s insurance businesses’ income statements include income and expenditure which are attributable to the policyholders of the Group’s long-term assurance funds. These items have no impact in total upon the profit attributable to equity shareholders and, in order to provide a clearer representation of the underlying trends within the business, these items are shown net within the underlying results. 3 Net of profits on disposal of operating lease assets of £32 million (2016: £58 million; 2015: £66 million). 4 Comprises the write-off of the ECN embedded derivative and premium paid on redemption of the remaining notes in the first quarter (loss of £790 million); the effects of asset sales (gain of £217 million); volatile items (gain of £99 million); liability management (gain of £123 million); the amortisation of purchased intangibles (£340 million); restructuring costs (£622 million, principally comprising the severance related costs related to phase II of the Simplification programme); and the fair value unwind and other items (loss of £231 million). 5 Comprises market movements on the ECN embedded derivative (loss of £101 million); the effects of asset sales (gain of £54 million); volatile items (loss of £107 million); liability management (loss of £28 million); the amortisation of purchased intangibles (£342 million); restructuring costs (£170 million); TSB costs (£745 million); and the fair value unwind and other items (loss of £192 million). 6 Comprises the underlying results of TSB. Geographical areas Following the reduction in the Group’s non-UK activities, an analysis between UK and non-UK activities is no longer provided. |
NET INTEREST INCOME
NET INTEREST INCOME | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of interest income (expense) [text block] [Abstract] | |
Disclosure of interest income (expense) [text block] | NOTE 5: NET INTEREST INCOME Weighted average 2017 2016 2015 2017 2016 2015 Interest and similar income: Loans and advances to customers 3.16 3.32 3.50 14,712 15,190 16,256 Loans and advances to banks 0.40 0.46 0.42 271 381 397 Debt securities held as loans and receivables 1.29 1.47 1.87 43 56 40 Interest receivable on loans and receivables 2.81 2.87 2.98 15,026 15,627 16,693 Available-for-sale financial assets 1.96 1.88 1.77 980 762 725 Held-to-maturity investments – 1.44 1.49 – 231 197 Total interest and similar income 1 2.73 2.77 2.86 16,006 16,620 17,615 Interest and similar expense: Deposits from banks, excluding liabilities under sale and repurchase transactions 1.18 0.65 0.41 (80 ) (68 ) (43 ) Customer deposits, excluding liabilities under sale and repurchase transactions 0.49 0.69 0.87 (1,722 ) (2,520 ) (3,299 ) Debt securities in issue 2 0.37 0.94 0.69 (266 ) (799 ) (586 ) Subordinated liabilities 7.93 8.35 8.37 (1,481 ) (1,864 ) (2,091 ) Liabilities under sale and repurchase agreements 0.58 0.46 0.57 (110 ) (38 ) (34 ) Interest payable on liabilities held at amortised cost 0.79 1.07 1.19 (3,659 ) (5,289 ) (6,053 ) Amounts payable to unitholders in consolidated open-ended investment vehicles 9.15 10.85 1.16 (1,435 ) (2,057 ) (244 ) Total interest and similar expense 3 1.06 1.44 1.19 (5,094 ) (7,346 ) (6,297 ) Net interest income 10,912 9,274 11,318 1 Includes £12 million (2016: £nil; 2015: £nil) of interest income on liabilities with negative interest rates. 2 The impact of the Group’s hedging arrangements is included on this line; excluding this impact the weighted average effective interest rate in respect of debt securities in issue would be 2.43 per cent (2016: 2.70 per cent; 2015: 2.76 per cent). 3 Includes £50 million (2016: £51 million; 2015: £nil) of interest expense on assets with negative interest rates. Included within interest and similar income is £179 million (2016: £205 million; 2015: £248 million) in respect of impaired financial assets. Net interest income also includes a credit of £651 million (2016: credit of £557 million; 2015: credit of £956 million) transferred from the cash flow hedging reserve (see note 41). |
NET FEE AND COMMISSION INCOME
NET FEE AND COMMISSION INCOME | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of fee and commission income (expense) [text block] [Abstract] | |
Disclosure of fee and commission income (expense) [text block] | NOTE 6: NET FEE AND COMMISSION INCOME 2017 2016 2015 Fee and commission income: Current accounts 712 752 804 Credit and debit card fees 953 875 918 Other 1,300 1,418 1,530 Total fee and commission income 2,965 3,045 3,252 Fee and commission expense (1,382 ) (1,356 ) (1,442 ) Net fee and commission income 1,583 1,689 1,810 Fees and commissions which are an integral part of the effective interest rate form part of net interest income shown in note 5. Fees and commissions relating to instruments that are held at fair value through profit or loss are included within net trading income shown in note 7. |
NET TRADING INCOME
NET TRADING INCOME | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of trading income (expense) [text block] [Abstract] | |
Disclosure of trading income (expense) [text block] | NOTE 7: NET TRADING INCOME 2017 2016 2015 Foreign exchange translation (losses) gains (174 ) 1,363 (80 ) Gains on foreign exchange trading transactions 517 542 335 Total foreign exchange 343 1,905 255 Investment property gains (losses) (note 26) 230 (83 ) 416 Securities and other gains (see below) 11,244 16,723 3,043 Net trading income 11,817 18,545 3,714 Securities and other gains comprise net gains (losses) arising on assets and liabilities held at fair value through profit or loss and for trading as follows: 2017 2016 2015 Net income arising on assets held at fair value through profit or loss: Debt securities, loans and advances 1,122 4,771 451 Equity shares 9,862 12,534 2,384 Total net income arising on assets held at fair value through profit or loss 10,984 17,305 2,835 Net (expense) income arising on liabilities held at fair value through profit or loss – debt securities in issue (144 ) (154 ) 14 Total net gains arising on assets and liabilities held at fair value through profit or loss 10,840 17,151 2,849 Net gains (losses) on financial instruments held for trading 404 (428 ) 194 Securities and other gains 11,244 16,723 3,043 |
INSURANCE PREMIUM INCOME
INSURANCE PREMIUM INCOME | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of insurance premium revenue [text block] [Abstract] | |
Disclosure of insurance premium revenue [text block] | NOTE 8: INSURANCE PREMIUM INCOME 2017 2016 2015 Life insurance Gross premiums: Life and pensions 6,273 5,613 3,613 Annuities 1,082 1,685 430 7,355 7,298 4,043 Ceded reinsurance premiums (168 ) (88 ) (122 ) Net earned premiums 7,187 7,210 3,921 Non-life insurance Net earned premiums 743 858 871 Total net earned premiums 7,930 8,068 4,792 Premium income in 2015 was reduced by a charge of £1,959 million relating to the recapture by a third party insurer of a portfolio of policies previously reassured with the Group. |
OTHER OPERATING INCOME
OTHER OPERATING INCOME | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of other operating income (expense) [text block] [Abstract] | |
Disclosure of other operating income (expense) [text block] | NOTE 9: OTHER OPERATING INCOME 2017 2016 2015 Operating lease rental income 1,344 1,225 1,165 Rental income from investment properties (note 26) 213 229 268 Gains less losses on disposal of available-for-sale financial assets (note 41) 446 575 51 Movement in value of in-force business (note 24) (165 ) 472 (162 ) Liability management (14 ) (598 ) (28 ) Share of results of joint ventures and associates 6 (1 ) (3 ) Other 165 133 225 Total other operating income 1,995 2,035 1,516 |
INSURANCE CLAIMS
INSURANCE CLAIMS | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of claims and benefits paid [text block] [Abstract] | |
Disclosure of claims and benefits paid [text block] | NOTE 10: INSURANCE CLAIMS Insurance claims comprise: 2017 2016 2015 Life insurance and participating investment contracts Claims and surrenders (8,898 ) (8,617 ) (7,983 ) Change in insurance and participating investment contracts (note 31) (9,067 ) (14,160 ) 2,898 Change in non-participating investment contracts 2,836 679 (438 ) (15,129 ) (22,098 ) (5,523 ) Reinsurers’ share 35 106 101 (15,094 ) (21,992 ) (5,422 ) Change in unallocated surplus (147 ) 14 63 Total life insurance and participating investment contracts (15,241 ) (21,978 ) (5,359 ) Non-life insurance Total non-life insurance claims, net of reinsurance (337 ) (366 ) (370 ) Total insurance claims (15,578 ) (22,344 ) (5,729 ) Life insurance and participating investment contracts gross claims and surrenders can also be analysed as follows: Deaths (675 ) (635 ) (631 ) Maturities (1,280 ) (1,347 ) (1,348 ) Surrenders (5,674 ) (5,444 ) (4,811 ) Annuities (985 ) (949 ) (902 ) Other (284 ) (242 ) (291 ) Total life insurance gross claims and surrenders (8,898 ) (8,617 ) (7,983 ) |
OPERATING EXPENSES
OPERATING EXPENSES | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of expenses [text block] [Abstract] | |
Disclosure of expenses [text block] | NOTE 11: OPERATING EXPENSES 2017 2016 2015 Staff costs: Salaries 2,679 2,750 2,808 Performance-based compensation 473 475 409 Social security costs 361 363 349 Pensions and other post-retirement benefit schemes (note 35) 625 555 548 Restructuring costs 24 241 104 Other staff costs 448 433 459 4,610 4,817 4,677 Premises and equipment: Rent and rates 365 365 368 Repairs and maintenance 231 187 173 Other 134 120 174 730 672 715 Other expenses: Communications and data processing 882 848 893 Advertising and promotion 208 198 253 Professional fees 328 265 262 UK bank levy 231 200 270 TSB disposal – – 665 Other 814 873 703 2,463 2,384 3,046 Depreciation and amortisation: Depreciation of property, plant and equipment (note 26) 1,944 1,761 1,534 Amortisation of acquired value of in-force non-participating investment contracts (note 24) 34 37 41 Amortisation of other intangible assets (note 25) 392 582 537 2,370 2,380 2,112 Goodwill impairment (note 23) 8 – – Total operating expenses, excluding regulatory provisions 10,181 10,253 10,550 Regulatory provisions: Payment protection insurance provision (note 37) 1,300 1,350 4,000 Other regulatory provisions 1 865 1,024 837 2,165 2,374 4,837 Total operating expenses 12,346 12,627 15,387 1 In 2016, regulatory provisions of £61 million were charged against income. Performance-based compensation The table below analyses the Group’s performance-based compensation costs between those relating to the current performance year and those relating to earlier years. 2017 2016 2015 £m £m £m Performance-based compensation expense comprises: Awards made in respect of the year ended 31 December 334 312 280 Awards made in respect of earlier years 139 163 129 473 475 409 Performance-based compensation expense deferred until later years comprises: Awards made in respect of the year ended 31 December 127 123 114 Awards made in respect of earlier years 35 41 56 162 164 170 Performance-based awards expensed in 2017 include cash awards amounting to £102 million (2016: £116 million; 2015: £96 million). Average headcount The average number of persons on a headcount basis employed by the Group during the year was as follows: 2017 2016 2015 UK 75,150 79,606 84,922 Overseas 794 812 781 Total 75,944 80,418 85,703 Fees payable to the auditors Fees payable to the Company’s auditors by the Group are as follows: 2017 2016 2015 £m £m £m Fees payable for the audit of the Company’s current year annual report 1.5 1.5 1.2 Fees payable for other services: Audit of the Company’s subsidiaries pursuant to legislation 18.6 14.7 14.9 Other services supplied pursuant to legislation 3.0 3.1 2.2 Total audit fees 23.1 19.3 18.3 Other services – audit related fees 1.2 3.1 3.2 Total audit and audit related fees 24.3 22.4 21.5 Services relating to taxation: Taxation compliance services – 0.2 0.2 All other taxation advisory services – 0.1 0.1 – 0.3 0.3 Other non-audit fees: Services relating to corporate finance transactions 1.2 0.1 0.2 Other services 2.4 1.5 2.3 Total other non-audit fees 3.6 1.6 2.5 Total fees payable to the Company’s auditors by the Group 27.9 24.3 24.3 The following types of services are included in the categories listed above: Audit fees: Audit related fees: Services relating to taxation: Other non-audit fees: It is the Group’s policy to use the auditors on assignments in cases where their knowledge of the Group means that it is neither efficient nor cost effective to employ another firm of accountants. Such assignments typically relate to assistance in transactions involving the acquisition and disposal of businesses and accounting advice. The Group has procedures that are designed to ensure auditor independence, including prohibiting certain non-audit services. All statutory audit work as well as most non-audit assignments must be pre-approved by the audit committee on an individual engagement basis; for certain types of non-audit engagements where the fee is ‘de minimis’ the audit committee has pre-approved all assignments subject to confirmation by management. On a quarterly basis, the audit committee receives and reviews a report detailing all pre-approved services and amounts paid to the auditors for such pre-approved services. During the year, the auditors also earned fees payable by entities outside the consolidated Lloyds Banking Group in respect of the following: 2017 2016 2015 £m £m £m Audits of Group pension schemes 0.1 0.3 0.3 Audits of the unconsolidated Open Ended Investment Companies managed by the Group 0.3 0.4 0.4 Reviews of the financial position of corporate and other borrowers – 1.2 3.1 Acquisition due diligence and other work performed in respect of potential venture capital investments 0.1 1.0 1.2 |
IMPAIRMENT
IMPAIRMENT | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of impairment loss and reversal of impairment loss [text block] [Abstract] | |
Disclosure of impairment loss and reversal of impairment loss [text block] | NOTE 12: IMPAIRMENT 2017 2016 2015 Impairment losses on loans and receivables: Loans and advances to customers 697 592 443 Debt securities classified as loans and receivables (6 ) – (2 ) Total impairment losses on loans and receivables (note 20) 691 592 441 Impairment of available-for-sale financial assets 6 173 4 Other credit risk provisions (9 ) (13 ) (55 ) Total impairment charged to the income statement 688 752 390 |
TAXATION
TAXATION | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of income tax [text block] [Abstract] | |
Disclosure of income tax [text block] | NOTE 13: TAXATION (A) Analysis of tax expense for the year 2017 £m 2016 2015 UK corporation tax: Current tax on profit for the year (1,346 ) (1,010 ) (485 ) Adjustments in respect of prior years 126 156 (90 ) (1,220 ) (854 ) (575 ) Foreign tax: Current tax on profit for the year (40 ) (20 ) (24 ) Adjustments in respect of prior years 10 2 27 (30 ) (18 ) 3 Current tax expense (1,250 ) (872 ) (572 ) Deferred tax: Current year (430 ) (758 ) (212 ) Adjustments in respect of prior years (48 ) (94 ) 96 Deferred tax expense (478 ) (852 ) (116 ) Tax expense (1,728 ) (1,724 ) (688 ) The income tax expense is made up as follows: 2017 £m 2016 2015 Tax (expense) credit attributable to policyholders (82 ) (301 ) 3 Shareholder tax expense (1,646 ) (1,423 ) (691 ) Tax expense (1,728 ) (1,724 ) (688 ) (B) Factors affecting the tax expense for the year The UK corporation tax rate for the year was 19.25 per cent (2016: 20 per cent; 2015: 20.25 per cent). An explanation of the relationship between tax expense and accounting profit is set out below: 2017 £m 2016 2015 Profit before tax 5,625 3,888 1,644 UK corporation tax thereon (1,083 ) (778 ) (333 ) Impact of surcharge on banking profits (452 ) (266 ) – Non-deductible costs: conduct charges (287 ) (289 ) (459 ) Non-deductible costs: bank levy (44 ) (40 ) (55 ) Other non-deductible costs (59 ) (135 ) (116 ) Non-taxable income 72 75 162 Tax-exempt gains on disposals 128 19 67 Recognition of losses that arose in prior years – 59 42 Remeasurement of deferred tax due to rate changes (9 ) (201 ) (27 ) Differences in overseas tax rates (15 ) 10 (4 ) Policyholder tax 1 (66 ) (241 ) 3 Adjustments in respect of prior years 88 64 33 Tax effect of share of results of joint ventures (1 ) (1 ) (1 ) Tax expense (1,728 ) (1,724 ) (688 ) 1 In 2016 this included a £231 million write down of the deferred tax asset held within the life business, reflecting the Group’s utilisation estimate which has been restricted by the current economic environment. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of earnings per share [text block] [Abstract] | |
Disclosure of earnings per share [text block] | NOTE 14: EARNINGS PER SHARE 2017 £m 2016 2015 Profit attributable to equity shareholders – basic and diluted 3,392 1,651 466 Tax credit on distributions to other equity holders 102 91 80 3,494 1,742 546 2017 2016 2015 million million million Weighted average number of ordinary shares in issue – basic 71,710 71,234 71,272 Adjustment for share options and awards 683 790 1,068 Weighted average number of ordinary shares in issue – diluted 72,393 72,024 72,340 Basic earnings per share 4.9p 2.4p 0.8p Diluted earnings per share 4.8p 2.4p 0.8p Basic earnings per share are calculated by dividing the net profit attributable to equity shareholders by the weighted average number of ordinary shares in issue during the year, which has been calculated after deducting 57 million (2016: 140 million; 2015: 101 million) ordinary shares representing the Group’s holdings of own shares in respect of employee share schemes. For the calculation of diluted earnings per share the weighted average number of ordinary shares in issue is adjusted to assume conversion of all dilutive potential ordinary shares that arise in respect of share options and awards granted to employees. The number of shares that could have been acquired at the average annual share price of the Company’s shares based on the monetary value of the subscription rights attached to outstanding share options and awards is determined. This is deducted from the number of shares issuable under such options and awards to leave a residual bonus amount of shares which are added to the weighted-average number of ordinary shares in issue, but no adjustment is made to the profit attributable to equity shareholders. There were no anti-dilutive share options and awards excluded from the calculation of diluted earnings per share at 31 December 2017 (2016: weighted-average of 0.3 million; 2015: weighted-average of 1 million). |
TRADING AND OTHER FINANCIAL ASS
TRADING AND OTHER FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Trading And Other Financial Assets At Fair Value Through Profit Or Loss [Abstract] | |
Disclosure Of Trading And Other Financial Assets At Fair Value Through Profit Or Loss [Text Block] | NOTE 15: TRADING AND OTHER FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS These assets are comprised as follows: 2017 2016 Trading Other financial Total Trading Other financial Total Loans and advances to customers 29,976 – 29,976 30,473 – 30,473 Loans and advances to banks 1,614 – 1,614 2,606 – 2,606 Debt securities: Government securities 9,833 12,187 22,020 11,828 14,904 26,732 Other public sector securities – 1,527 1,527 – 1,325 1,325 Bank and building society certificates of deposit – 222 222 – 244 244 Asset-backed securities: Mortgage-backed securities 189 211 400 47 660 707 Other asset-backed securities 95 926 1,021 69 1,469 1,538 Corporate and other debt securities 523 19,467 19,990 224 19,608 19,832 10,640 34,540 45,180 12,168 38,210 50,378 Equity shares 6 86,084 86,090 6 67,691 67,697 Treasury and other bills – 18 18 – 20 20 Total 42,236 120,642 162,878 45,253 105,921 151,174 Other financial assets at fair value through profit or loss include the following assets designated into that category: (i) financial assets backing insurance contracts and investment contracts of £117,323 million (2016: £101,888 million) which are so designated because the related liabilities either have cash flows that are contractually based on the performance of the assets or are contracts whose measurement takes account of current market conditions and where significant measurement inconsistencies would otherwise arise. Included within these assets are investments in unconsolidated structured entities of £28,759 million (2016: £15,611 million), see note 19; and (ii) private equity investments of £1,944 million (2016: £2,245 million) that are managed, and evaluated, on a fair value basis in accordance with a documented risk management or investment strategy and reported to key management personnel on that basis. For amounts included above which are subject to repurchase and reverse repurchase agreements see note 51. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of derivative financial instruments [text block] [Abstract] | |
Disclosure of derivative financial instruments [text block] | NOTE 16: DERIVATIVE FINANCIAL INSTRUMENTS The fair values and notional amounts of derivative instruments are set out in the following table: 31 December 2017 31 December 2016 Contract/ notional amount £m Fair value assets £m Fair value liabilities £m Contract/ Fair value Fair value Trading and other Exchange rate contracts: Spot, forwards and futures 31,716 1,023 789 38,072 1,149 1,383 Currency swaps 223,624 3,157 3,534 288,441 6,903 6,382 Options purchased 8,191 580 – 15,192 808 – Options written 6,684 – 627 18,342 – 1,016 270,215 4,760 4,950 360,047 8,860 8,781 Interest rate contracts: Interest rate swaps 2,264,834 15,791 15,364 2,160,535 19,780 18,862 Forward rate agreements 239,797 5 1 628,962 13 87 Options purchased 32,097 2,329 – 39,509 3,251 – Options written 32,817 – 2,524 39,847 – 3,400 Futures 35,542 9 7 114,284 6 3 2,605,087 18,134 17,896 2,983,137 23,050 22,352 Credit derivatives 4,568 77 423 8,098 381 659 Equity and other contracts 25,150 982 1,242 43,218 1,135 1,168 Total derivative assets/liabilities – trading and other 2,905,020 23,953 24,511 3,394,500 33,426 32,960 Hedging Derivatives designated as fair value hedges: Currency swaps 1,327 19 38 1,454 19 22 Interest rate swaps 109,670 1,145 407 194,416 1,462 737 110,997 1,164 445 195,870 1,481 759 Derivatives designated as cash flow hedges: Interest rate swaps 549,099 597 1,053 384,182 814 1,166 Futures 73,951 – 1 53,115 – 3 Currency swaps 7,310 120 114 8,121 417 36 630,360 717 1,168 445,418 1,231 1,205 Total derivative assets/liabilities – hedging 741,357 1,881 1,613 641,288 2,712 1,964 Total recognised derivative assets/liabilities 3,646,377 25,834 26,124 4,035,788 36,138 34,924 The notional amount of the contract does not represent the Group’s real exposure to credit risk which is limited to the current cost of replacing contracts with a positive value to the Group should the counterparty default. To reduce credit risk the Group uses a variety of credit enhancement techniques such as netting and collateralisation, where security is provided against the exposure. Further details are provided in note 51 Credit risk. The Group holds derivatives as part of the following strategies: – Customer driven, where derivatives are held as part of the provision of risk management products to Group customers; – To manage and hedge the Group’s interest rate and foreign exchange risk arising from normal banking business. The hedge accounting strategy adopted by the Group is to utilise a combination of fair value and cash flow hedge approaches as described in note 51; and – Derivatives held in policyholder funds as permitted by the investment strategies of those funds. The principal derivatives used by the Group are as follows: – Interest rate related contracts include interest rate swaps, forward rate agreements and options. An interest rate swap is an agreement between two parties to exchange fixed and floating interest payments, based upon interest rates defined in the contract, without the exchange of the underlying principal amounts. Forward rate agreements are contracts for the payment of the difference between a specified rate of interest and a reference rate, applied to a notional principal amount at a specific date in the future. An interest rate option gives the buyer, on payment of a premium, the right, but not the obligation, to fix the rate of interest on a future loan or deposit, for a specified period and commencing on a specified future date. – Exchange rate related contracts include forward foreign exchange contracts, currency swaps and options. A forward foreign exchange contract is an agreement to buy or sell a specified amount of foreign currency on a specified future date at an agreed rate. Currency swaps generally involve the exchange of interest payment obligations denominated in different currencies; the exchange of principal can be notional or actual. A currency option gives the buyer, on payment of a premium, the right, but not the obligation, to sell specified amounts of currency at agreed rates of exchange on or before a specified future date. – Credit derivatives, principally credit default swaps, are used by the Group as part of its trading activity and to manage its own exposure to credit risk. A credit default swap is a swap in which one counterparty receives a premium at pre-set intervals in consideration for guaranteeing to make a specific payment should a negative credit event take place. – Equity derivatives are also used by the Group as part of its equity-based retail product activity to eliminate the Group’s exposure to fluctuations in various international stock exchange indices. Index-linked equity options are purchased which give the Group the right, but not the obligation, to buy or sell a specified amount of equities, or basket of equities, in the form of published indices on or before a specified future date. Hedged cash flows For designated cash flow hedges the following table shows when the Group’s hedged cash flows are expected to occur and when they will affect income. 2017 0-1 years 1-2 years 2-3 years 3-4 years 4-5 years 5-10 years 10-20 years Over Total Hedged forecast cash flows expected to occur: Forecast receivable cash flows 346 515 682 492 395 701 55 46 3,232 Forecast payable cash flows (475 ) (654 ) (592 ) (552 ) (406 ) (1,150 ) (627 ) (163 ) (4,619 ) Hedged forecast cash flows affect profit or loss: Forecast receivable cash flows 307 562 648 448 466 684 63 54 3,232 Forecast payable cash flows (680 ) (640 ) (556 ) (505 ) (377 ) (1,085 ) (612 ) (164 ) (4,619 ) 2016 0-1 years 1-2 years 2-3 years 3-4 years 4-5 years 5-10 years 10-20 years Over Total Hedged forecast cash flows expected to occur: Forecast receivable cash flows 172 198 415 372 391 1,215 102 45 2,910 Forecast payable cash flows (565 ) (722 ) (692 ) (599 ) (429 ) (1,541 ) (806 ) (262 ) (5,616 ) Hedged forecast cash flows affect profit or loss: Forecast receivable cash flows 211 223 418 363 472 1,070 99 54 2,910 Forecast payable cash flows (777 ) (713 ) (671 ) (521 ) (415 ) (1,477 ) (787 ) (255 ) (5,616 ) There were no transactions for which cash flow hedge accounting had to be ceased in 2016 or 2017 as a result of the highly probable cash flows no longer being expected to occur. |
LOANS AND ADVANCES TO CUSTOMERS
LOANS AND ADVANCES TO CUSTOMERS | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of loans and advances to customers [text block] [Abstract] | |
Disclosure of loans and advances to customers [text block] | NOTE 17: LOANS AND ADVANCES TO CUSTOMERS 2017 £m 2016 Agriculture, forestry and fishing 7,461 7,269 Energy and water supply 1,609 2,320 Manufacturing 7,886 7,285 Construction 4,428 4,535 Transport, distribution and hotels 14,074 13,320 Postal and telecommunications 2,148 2,564 Property companies 30,980 32,192 Financial, business and other services 57,006 49,197 Personal: Mortgages 304,665 306,682 Other 28,757 20,761 Lease financing 2,094 2,628 Hire purchase 13,591 11,617 Total loans and advances to customers before allowance for impairment losses 474,699 460,370 Allowance for impairment losses (note 20) (2,201 ) (2,412 ) Total loans and advances to customers 472,498 457,958 For amounts included above which are subject to reverse repurchase agreements see note 51. Loans and advances to customers include finance lease receivables, which may be analysed as follows: 2017 £m 2016 Gross investment in finance leases, receivable: Not later than 1 year 680 551 Later than 1 year and not later than 5 years 1,106 1,618 Later than 5 years 1,053 1,561 2,839 3,730 Unearned future finance income on finance leases (692 ) (1,038 ) Rentals received in advance (53 ) (64 ) Net investment in finance leases 2,094 2,628 The net investment in finance leases represents amounts recoverable as follows: 2017 2016 £m £m Not later than 1 year 546 361 Later than 1 year and not later than 5 years 887 1,282 Later than 5 years 661 985 Net investment in finance leases 2,094 2,628 Equipment leased to customers under finance leases primarily relates to structured financing transactions to fund the purchase of aircraft, ships and other large individual value items. During 2016 and 2017 no contingent rentals in respect of finance leases were recognised in the income statement. There was no allowance for uncollectable finance lease receivables included in the allowance for impairment losses (2016: £nil). |
SECURITISATIONS AND COVERED BON
SECURITISATIONS AND COVERED BONDS | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Securitisations Programmers And Transactions [Abstract] | |
Disclosure Of Securitisations Programmers And Transactions [Text Block] | NOTE 18: SECURITISATIONS AND COVERED BONDS Securitisation programmes Loans and advances to customers and debt securities classified as loans and receivables include loans securitised under the Group’s securitisation programmes, the majority of which have been sold by subsidiary companies to bankruptcy remote structured entities. As the structured entities are funded by the issue of debt on terms whereby the majority of the risks and rewards of the portfolio are retained by the subsidiary, the structured entities are consolidated fully and all of these loans are retained on the Group’s balance sheet, with the related notes in issue included within debt securities in issue. Covered bond programmes Certain loans and advances to customers have been assigned to bankruptcy remote limited liability partnerships to provide security for issues of covered bonds by the Group. The Group retains all of the risks and rewards associated with these loans and the partnerships are consolidated fully with the loans retained on the Group’s balance sheet and the related covered bonds in issue included within debt securities in issue. The Group’s principal securitisation and covered bond programmes, together with the balances of the advances subject to these arrangements and the carrying value of the notes in issue at 31 December, are listed below. The notes in issue are reported in note 30. 2017 2016 Loans and Notes Loans and Notes Securitisation programmes 1 UK residential mortgages 21,158 14,105 35,146 17,705 Commercial loans 6,616 7,001 7,395 8,179 Credit card receivables 7,701 4,090 7,610 5,723 Dutch residential mortgages – – 2,033 2,081 35,475 25,196 52,184 33,688 Less held by the Group (21,536 ) (26,435 ) Total securitisation programmes (note 30) 3,660 7,253 Covered bond programmes Residential mortgage-backed 30,361 25,632 33,881 30,021 Social housing loan-backed 1,628 1,200 2,087 1,200 31,989 26,832 35,968 31,221 Less held by the Group (700 ) (700 ) Total covered bond programmes (note 30) 26,132 30,521 Total securitisation and covered bond programmes 29,792 37,774 1 Includes securitisations utilising a combination of external funding and credit default swaps. Cash deposits of £3,507 million (2016: £9,018 million) which support the debt securities issued by the structured entities, the term advances related to covered bonds and other legal obligations are held by the Group. Additionally, the Group had certain contractual arrangements to provide liquidity facilities to some of these structured entities. At 31 December 2017 these obligations had not been triggered; the maximum exposure under these facilities was £95 million (2016: £373 million). The Group has a number of covered bond programmes, for which Limited Liability Partnerships have been established to ring-fence asset pools and guarantee the covered bonds issued by the Group. At the reporting date the Group had over-collateralised these programmes as set out in the table above to meet the terms of the programmes, to secure the rating of the covered bonds and to provide operational flexibility. From time-to-time, the obligations of the Group to provide collateral may increase due to the formal requirements of the programmes. The Group may also voluntarily contribute collateral to support the ratings of the covered bonds. The Group recognises the full liabilities associated with its securitisation and covered bond programmes within debt securities in issue, although the obligations of the Group are limited to the cash flows generated from the underlying assets. The Group could be required to provide additional support to a number of the securitisation programmes to support the credit ratings of the debt securities issued, in the form of increased cash reserves and the holding of subordinated notes. Further, certain programmes contain contractual obligations that require the Group to repurchase assets should they become credit impaired. The Group has not voluntarily offered to repurchase assets from any of its public securitisation programmes during 2017 (2016: none). |
STRUCTURED ENTITIES
STRUCTURED ENTITIES | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of unconsolidated structured entities [line items] | |
Disclosure of information about interests in structured entity [text block] | NOTE 19: STRUCTURED ENTITIES The Group’s interests in structured entities are both consolidated and unconsolidated. Detail of the Group’s interests in consolidated structured entities are set out in: note 18 for securitisations and covered bond vehicles, note 35 for structured entities associated with the Group’s pension schemes, and below in part (A) and (B). Details of the Group’s interests in unconsolidated structured entities are included below in part (C). (A) Asset-backed conduits In addition to the structured entities discussed in note 18, which are used for securitisation and covered bond programmes, the Group sponsors an active asset-backed conduit, Cancara, which invests in client receivables and debt securities. The total consolidated exposure of Cancara at 31 December 2017 was £6,049 million (2016: £6,840 million), comprising £5,939 million of loans and advances (2016: £6,684 million) and £110 million of debt securities (2016: £156 million). All lending assets and debt securities held by the Group in Cancara are restricted in use, as they are held by the collateral agent for the benefit of the commercial paper investors and the liquidity providers only. The Group provides liquidity facilities to Cancara under terms that are usual and customary for standard lending activities in the normal course of the Group’s banking activities. During 2017 there have continued to be planned drawdowns on certain liquidity facilities for balance sheet management purposes, supporting the programme to provide funding alongside the proceeds of the asset-backed commercial paper issuance. The Group could be asked to provide support under the contractual terms of these arrangements including, for example, if Cancara experienced a shortfall in external funding, which may occur in the event of market disruption. The external assets in Cancara are consolidated in the Group’s financial statements. (B) Consolidated collective investment vehicles and limited partnerships The assets of the Insurance business held in consolidated collective investment vehicles, such as Open-Ended Investment Companies and limited partnerships, are not directly available for use by the Group. However, the Group’s investment in the majority of these collective investment vehicles is readily realisable. As at 31 December 2017, the total carrying value of these consolidated collective investment vehicle assets and liabilities held by the Group was £68,124 million (2016: £75,669 million). The Group has no contractual arrangements (such as liquidity facilities) that would require it to provide financial or other support to the consolidated collective investment vehicles; the Group has not previously provided such support and has no current intentions to provide such support. (C) Unconsolidated collective investment vehicles and limited partnerships The Group’s direct interests in unconsolidated structured entities comprise investments in collective investment vehicles, such as Open-Ended Investment Companies, and limited partnerships with a total carrying value of £28,759 million at 31 December 2017 (2016: £15,611 million), included within financial assets designated at fair value through profit and loss (see note 15). These investments include both those entities managed by third parties and those managed by the Group. At 31 December 2017, the total asset value of these unconsolidated structured entities, including the portion in which the Group has no interest, was £2,338 billion (2016: £1,849 billion). The Group’s maximum exposure to loss is equal to the carrying value of the investment. However, the Group’s investments in these entities are primarily held to match policyholder liabilities in the Insurance division and the majority of the risk from a change in the value of the Group’s investment is matched by a change in policyholder liabilities. The collective investment vehicles are primarily financed by investments from investors in the vehicles. During the year the Group has not provided any non-contractual financial or other support to these entities and has no current intention of providing any financial or other support. There were no transfers from/to these unconsolidated collective investment vehicles and limited partnerships. The Group considers itself the sponsor of a structured entity where it is primarily involved in the design and establishment of the structured entity; and further where the Group transfers assets to the structured entity; market products associated with the structured entity in its own name and/or provide guarantees regarding the structured entity’s performance. The Group sponsors a range of diverse investment funds and limited partnerships where it acts as the fund manager or equivalent decision maker and markets the funds under one of the Group’s brands. The Group earns fees from managing the investments of these funds. The investment management fees that the Group earned from these entities, including those in which the Group held no ownership interest at 31 December 2017, are reported in note 6. |
ALLOWANCE FOR IMPAIRMENT LOSSES
ALLOWANCE FOR IMPAIRMENT LOSSES ON LOANS AND RECEIVABLES | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of allowance for credit losses [text block] [Abstract] | |
Disclosure of allowance for credit losses [text block] | NOTE 20: ALLOWANCE FOR IMPAIRMENT LOSSES ON LOANS AND RECEIVABLES Critical accounting estimates and judgements The allowance for impairment losses on loans and receivables is management’s best estimate of losses incurred in the portfolio at the balance sheet date. In determining the required level of impairment provisions, the Group uses the output from various statistical models. Management judgement is required to assess the robustness of the outputs from these models and, where necessary, make appropriate adjustments. Impairment allowances are made up of two components, those determined individually and those determined collectively. Individual impairment allowances are generally established against the Group’s commercial lending portfolios. Assets are reviewed on a regular basis and those showing potential or actual vulnerability are placed on a watchlist where greater monitoring is undertaken and any adverse or potentially adverse impact on ability to repay is used in assessing whether an asset should be transferred to a dedicated Business Support Unit. Specific examples of trigger events that could lead to the initial recognition of impairment allowances against lending to corporate borrowers (or the recognition of additional impairment allowances) include (i) trading losses, loss of business or major customer of a borrower; (ii) material breaches of the terms and conditions of a loan facility, including non-payment of interest or principal, or a fall in the value of security such that it is no longer considered adequate; (iii) disappearance of an active market because of financial difficulties; or (iv) restructuring a facility with preferential terms to aid recovery of the lending (such as a debt for equity swap). For such individually identified financial assets, a review is undertaken of the expected future cash flows which requires significant management judgement as to the amount and timing of such cash flows. Where the debt is secured, the assessment reflects the expected cash flows from the realisation of the security, net of costs to realise, whether or not foreclosure or realisation of the collateral is probable. The determination of individual impairment allowances requires the exercise of considerable judgement by management involving matters such as local economic conditions and the resulting trading performance of the customer, and the value of the security held, for which there may not be a readily accessible market. The actual amount of the future cash flows and their timing may differ significantly from the assumptions made for the purposes of determining the impairment allowances and consequently these allowances can be subject to variation as time progresses and the circumstances of the customer become clearer. Collective impairment allowances are generally established for smaller balance homogenous portfolios such as the retail portfolios. For these portfolios the asset is included in a group of financial assets with similar risk characteristics and collectively assessed for impairment. Segmentation takes into account factors such as the type of asset, industry sector, geographical location, collateral type, past-due status and other relevant factors. These characteristics are relevant to the estimation of future cash flows for groups of such assets as they are indicative of the borrower’s ability to pay all amounts due according to the contractual terms of the assets being evaluated. Generally, the impairment trigger used within the impairment calculation for a loan, or group of loans, is when they reach a pre-defined level of delinquency or where the customer is bankrupt. Loans where the Group provides arrangements that forgive a portion of interest or principal are also deemed to be impaired and loans that are originated to refinance currently impaired assets are also defined as impaired. In respect of the Group’s secured mortgage portfolios, the impairment allowance is calculated based on a definition of impaired loans which are those six months or more in arrears (or certain cases where the borrower is bankrupt or is in possession). The estimated cash flows are calculated based on historical experience and are dependent on estimates of the expected value of collateral which takes into account expected future movements in house prices, less costs to sell. For unsecured personal lending portfolios, the impairment trigger is generally when the balance is two or more instalments in arrears or where the customer has exhibited one or more of the impairment characteristics set out above. While the trigger is based on the payment performance or circumstances of each individual asset, the assessment of future cash flows uses historical experience of cohorts of similar portfolios such that the assessment is considered to be collective. Future cash flows are estimated on the basis of the contractual cash flows of the assets in the cohort and historical loss experience for similar assets. The methodology and assumptions used for estimating future cash flows are reviewed regularly by the Group to reduce any differences between loss estimates and actual loss experience. The collective impairment allowance is also subject to estimation uncertainty and in particular is sensitive to changes in economic and credit conditions, including the interdependency of house prices, unemployment rates, interest rates, borrowers’ behaviour, and consumer bankruptcy trends. It is, however, inherently difficult to estimate how changes in one or more of these factors might impact the collective impairment allowance. The value of collateral supporting the Group’s UK mortgage portfolio is estimated by applying changes in the house price indices to the original assessed value of the property. Given the relative size of the portfolio, this is a key variable in determining the Group’s impairment charge for loans and receivables. If average house prices were ten per cent lower than those estimated at 31 December 2017, the impairment charge would increase by approximately £200 million in respect of UK mortgages. In addition, the collective provision also includes provision for losses that have been incurred but have not been separately identified at the balance sheet date. The loans that are not currently recognised as impaired are grouped into homogenous portfolios by key risk drivers. Risk drivers for secured retail lending include the current indexed loan-to-value, previous mortgage arrears, internal cross-product delinquency data and external credit bureau data; for unsecured retail lending they include whether the account is up-to-date and, if not, the number of payments that have been missed; and for commercial lending they include factors such as observed default rates and loss given default. An assessment is made of the likelihood of assets being impaired at the balance sheet date and being identified subsequently; the length of time taken to identify that an impairment event has occurred is known as the loss emergence period. The loss emergence period is determined by local management for each portfolio and the Group has a range of loss emergence periods which are dependent upon the characteristics of the portfolios. Loss emergence periods are reviewed regularly and updated when appropriate. In general the periods used across the Group vary between one month and 12 months based on historical experience. Unsecured portfolios tend to have shorter loss emergence periods than secured portfolios. This provision is sensitive to changes in the loss emergence period. Management use a significant level of judgement when determining the collective unidentified impairment provision, including the assessment of the level of overall risk existing within particular sectors and the impact of the low interest rate environment on loss emergence periods. In the Commercial Banking division, an increase of one month in the loss emergence period in respect of the loan portfolio assessed for collective unidentified impairment provisions would result in an increase in the collective unidentified impairment provision of approximately £25 million (2016: £33 million). 2017 2016 Loans and Debt Total Loans and advances to customers £m Debt securities £m Total £m At 1 January 2,412 76 2,488 3,033 97 3,130 Exchange and other adjustments 132 – 132 69 – 69 Advances written off (1,499 ) (44 ) (1,543 ) (2,111 ) (22 ) (2,133 ) Recoveries of advances written off in previous years 482 – 482 861 1 862 Unwinding of discount (23 ) – (23 ) (32 ) – (32 ) Charge (release) to the income statement (note 12) 697 (6 ) 691 592 – 592 At 31 December 2,201 26 2,227 2,412 76 2,488 Of the total allowance in respect of loans and advances to customers, £1,772 million (2016: £1,876 million) related to lending that had been determined to be impaired (either individually or on a collective basis) at the reporting date. Of the total allowance in respect of loans and advances to customers, £1,201 million (2016: £1,208 million) was assessed on a collective basis. |
AVAILABLE-FOR-SALE FINANCIAL AS
AVAILABLE-FOR-SALE FINANCIAL ASSETS | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of available-for-sale financial assets [text block] [Abstract] | |
Disclosure of available-for-sale financial assets [text block] | NOTE 21: AVAILABLE-FOR-SALE FINANCIAL ASSETS 2017 £m 2016 Debt securities: Government securities 34,708 48,714 Bank and building society certificates of deposit 167 142 Asset-backed securities: Mortgage-backed securities 1,156 108 Other asset-backed securities 255 317 Corporate and other debt securities 4,615 6,030 40,901 55,311 Equity shares 1,197 1,213 Total available-for-sale financial assets 42,098 56,524 All assets have been individually assessed for impairment. The criteria used to determine whether an impairment loss has been incurred are disclosed in note 2(H). |
ACQUISITION OF MBNA LIMITED
ACQUISITION OF MBNA LIMITED | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of deferred acquisition costs arising from insurance contracts [text block] [Abstract] | |
Disclosure of deferred acquisition costs arising from insurance contracts [text block] | NOTE 22: ACQUISITION OF MBNA LIMITED On 1 June 2017, following the receipt of competition and regulatory approval, the Group acquired 100 per cent of the ordinary share capital of MBNA Limited (MBNA), which together with its subsidiaries undertakes a UK consumer credit card business, from FIA Jersey Holdings Limited, a wholly-owned subsidiary of Bank of America. The acquisition will enable the Group to enhance its position and offering within the UK prime credit card market. The total fair value of the purchase consideration was £2,016 million, settled in cash. The acquisition is expected to result in a significant opportunity for cost synergies and goodwill of £302 million has been recognised on the transaction. None of the goodwill recognised is deductible for tax purposes. The table below sets out the fair value of the identifiable assets and liabilities acquired. The Group has finalised the acquisition accounting in the second half of 2017 and this has resulted in a reduction in other assets of £23 million, an increase in deferred tax assets of £4 million and an increase in goodwill of £19 million compared to the provisional amounts previously reported. Book value Fair value Fair value Assets Loans and advances to customers 7,466 345 7,811 Available-for-sale financial assets 16 – 16 Purchased credit card relationships – 702 702 Deferred tax assets 27 4 31 Other assets 190 322 512 Total assets 7,699 1,373 9,072 Liabilities Deposits from banks 1 6,431 – 6,431 Deferred tax liabilities 3 184 187 Other liabilities 112 – 112 Other provisions 233 395 628 Total liabilities 6,779 579 7,358 Fair value of net assets acquired 920 794 1,714 Goodwill arising on acquisition 302 Total consideration 2,016 1 Upon acquisition, the funding of MBNA was assumed by Lloyds Bank plc. At acquisition date, the contractual amount of loans and advances receivable from customers was £7,628 million. The amount expected to be collected is not materially different from the book value recognised by MBNA at 1 June 2017 (£7,466 million). As a result of an indemnity guaranteed by Bank of America, N.A., the Group’s exposure to MBNA’s PPI liability is capped at £240 million. Acquisition-related costs of £21 million have been included in operating expenses for the year ended 31 December 2017. The post-acquisition total income of MBNA, which is included in the Group statutory consolidated income statement for the year ended 31 December 2017, is £436 million. MBNA also contributed profit before tax of £146 million for the same period. Had the acquisition date of MBNA been 1 January 2017, the Group’s consolidated total income would have been £329 million higher at £34,566 million and the Group’s consolidated profit before tax would have been £112 million higher at £5,737 million. |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of goodwill [text block] [Abstract] | |
Disclosure of goodwill [text block] | NOTE 23: GOODWILL 2017 2016 £m £m At 1 January 2,016 2,016 Acquisition of businesses (note 22) 302 – Impairment charged to the income statement (note 11) (8 ) – At 31 December 2,310 2,016 Cost 1 2,664 2,362 Accumulated impairment losses (354 ) (346 ) At 31 December 2,310 2,016 1 For acquisitions made prior to 1 January 2004, the date of transition to IFRS, cost is included net of amounts amortised up to 31 December 2003. The goodwill held in the Group’s balance sheet is tested at least annually for impairment. For the purposes of impairment testing the goodwill is allocated to the appropriate cash generating unit; of the total balance of £2,310 million (2016: £2,016 million), £1,836 million, or 79 per cent of the total (2016: £1,836 million, 91 per cent of the total) has been allocated to Scottish Widows in the Group’s Insurance and Wealth division; £302 million, or 13 per cent of the total (2016: £nil) relates to the acquisition of MBNA (note 22) and has been allocated to Cards in the Group’s Retail division; and £170 million, or 7 per cent of the total (2016: £170 million, 8 per cent of the total) to Motor Finance in the Group’s Retail division. The recoverable amount of the goodwill relating to Scottish Widows has been based on a value-in-use calculation. The calculation uses pre-tax projections of future cash flows based upon budgets and plans approved by management covering a five-year period, the related run-off of existing business in force and a discount rate of 9 per cent. The budgets and plans are based upon past experience adjusted to take into account anticipated changes in sales volumes, product mix and margins having regard to expected market conditions and competitor activity. The discount rate is determined with reference to internal measures and available industry information. New business cash flows beyond the five-year period have been extrapolated using a steady 2 per cent growth rate which does not exceed the long-term average growth rate for the life assurance market. Management believes that any reasonably possible change in the key assumptions above would not cause the recoverable amount of Scottish Widows to fall below its balance sheet carrying value. The recoverable amount of the goodwill relating to Motor Finance has also been based on a value-in-use calculation using pre-tax cash flow projections based on financial budgets and plans approved by management covering a five-year period and a discount rate of 14 per cent. The cash flows beyond the five-year period are extrapolated using a growth rate of 0.5 per cent which does not exceed the long-term average growth rates for the markets in which Motor Finance participates. Management believes that any reasonably possible change in the key assumptions above would not cause the recoverable amount of Motor Finance to fall below the balance sheet carrying value. The goodwill relating to the acquisition of MBNA has been allocated to the Group’s Cards business as the Cards business is expected to benefit from the synergies of the acquisition. The recoverable amount of this goodwill has been based on a value-in-use calculation using pre-tax cash flow projections based on financial budgets and plans approved by management covering a five-year period and a discount rate of 14 per cent. The cash flows beyond the five year period are extrapolated using a growth rate of 0.5 per cent which does not exceed the long-term average growth rates for the markets in which Cards participates. Management believes that any reasonably possible change in the key assumptions above would not cause the recoverable amount of the Cards business to fall below the balance sheet carrying value. |
VALUE OF IN-FORCE BUSINESS
VALUE OF IN-FORCE BUSINESS | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of value of in-force business [Abstract] | |
Disclosure of value of in-force business [Text Block] | NOTE 24: VALUE OF IN-FORCE BUSINESS Critical accounting estimates and judgements The value of in-force business asset represents the present value of future profits expected to arise from the portfolio of in-force life insurance and participating investment contracts. The valuation of this asset requires assumptions to be made about future economic and operating conditions which are inherently uncertain and changes could significantly affect the value attributed to this asset. The methodology used to value this asset and the key assumptions that have been made in determining the carrying value of the value of in-force business asset at 31 December 2017 are set out below. Key assumptions The principal features of the methodology and process used for determining key assumptions used in the calculation of the value of in-force business are set out below: ECONOMIC ASSUMPTIONS Each cash flow is valued using the discount rate consistent with that applied to such a cash flow in the capital markets. In practice, to achieve the same result, where the cash flows are either independent of or move linearly with market movements, a method has been applied known as the ‘certainty equivalent’ approach whereby it is assumed that all assets earn a risk-free rate and all cash flows are discounted at a risk-free rate. The certainty equivalent approach covers all investment assets relating to insurance and participating investment contracts, other than the annuity business (where an illiquidity premium is included, see below). A market-consistent approach has been adopted for the valuation of financial options and guarantees, using a stochastic option pricing technique calibrated to be consistent with the market price of relevant options at each valuation date. Further information on options and guarantees can be found in note 31. The liabilities in respect of the Group’s UK annuity business are matched by a portfolio of fixed interest securities, including a large proportion of corporate bonds and illiquid loan assets. The value of the in-force business asset for UK annuity business has been calculated after taking into account an estimate of the market premium for illiquidity in respect of corporate bond holdings and relevant illiquid loan assets. In determining the market premium for illiquidity, a range of inputs are considered which reflect actual asset allocation and relevant observable market data. The illiquidity premium is estimated to be 114 basis points at 31 December 2017 (2016: 138 basis points). The risk-free rate is derived from the relevant swap curve with a deduction for credit risk. The table below shows the resulting range of yields and other key assumptions at 31 December: 2017 2016 % % Risk-free rate (value of in-force non-annuity business) 1 0.00 to 4.20 0.00 to 4.20 Risk-free rate (value of in-force annuity business) 1 1.14 to 5.34 1.38 to 5.58 Risk-free rate (financial options and guarantees) 1 0.00 to 4.20 0.00 to 4.20 Retail price inflation 3.43 3.50 Expense inflation 3.67 3.73 1 All risk-free rates are quoted as the range of rates implied by the relevant forward swap curve. NON-MARKET RISK An allowance for non-market risk is made through the choice of best estimate assumptions based upon experience, which generally will give the mean expected financial outcome for shareholders and hence no further allowance for non-market risk is required. However, in the case of operational risk, reinsurer default and the with-profit funds these can be asymmetric in the range of potential outcomes for which an explicit allowance is made. NON-ECONOMIC ASSUMPTIONS Future mortality, morbidity, expenses, lapse and paid-up rate assumptions are reviewed each year and are based on an analysis of past experience and on management’s view of future experience. Further information on these assumptions is given in note 31 and the effect of changes in key assumptions is given in note 32. The gross value of in-force business asset in the consolidated balance sheet is as follows: 2017 2016 Acquired value of in-force non-participating investment contracts 306 340 Value of in-force insurance and participating investment contracts 4,533 4,702 Total value of in-force business 4,839 5,042 The movement in the acquired value of in-force non-participating investment contracts over the year is as follows: 2017 2016 £m £m At 1 January 340 377 Amortisation taken to income statement (note 11) (34 ) (37 ) At 31 December 306 340 The acquired value of in-force non-participating investment contracts includes £185 million (2016: £206 million) in relation to OEIC business. The movement in the value of in-force insurance and participating investment contracts over the year is as follows: 2017 2016 £m £m At 1 January 4,702 4,219 Exchange and other adjustments (4 ) 11 Movements in the year: New business 348 428 Existing business: Expected return (318 ) (210 ) Experience variances (226 ) (137 ) Assumption changes (238 ) 127 Economic variance 269 264 Movement in the value of in-force business taken to income statement (note 9) (165 ) 472 At 31 December 4,533 4,702 This breakdown shows the movement in the value of in-force business only, and does not represent the full contribution that each item in the breakdown makes to profit before tax. This will also contain changes in the other assets and liabilities, including the effects of changes in assumptions used to value the liabilities, of the relevant businesses. The presentation of economic variance includes the impact of financial market conditions being different at the end of the reporting period from those included in assumptions used to calculate new and existing business returns. |
OTHER INTANGIBLE ASSETS
OTHER INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of intangible assets [text block] [Abstract] | |
Disclosure of intangible assets [text block] | NOTE 25: OTHER INTANGIBLE ASSETS Purchased Customer- Capitalised Core deposit credit card related software Brands intangible relationships intangibles enhancements Total £m £m £m £m £m £m Cost: At 1 January 2016 596 2,770 315 538 1,814 6,033 Additions – – – – 463 463 Disposals – – – – (110 ) (110 ) At 31 December 2016 596 2,770 315 538 2,167 6,386 Acquisition of businesses (note 22) – – 702 – – 702 Additions – – – – 850 850 Disposals – – – – (77 ) (77 ) At 31 December 2017 596 2,770 1,017 538 2,940 7,861 Accumulated amortisation: At 1 January 2016 149 2,460 309 472 805 4,195 Charge for the year 22 297 2 27 234 582 Disposals – – – – (72 ) (72 ) At 31 December 2016 171 2,757 311 499 967 4,705 Charge for the year 22 13 44 20 293 392 Disposals – – – – (71 ) (71 ) At 31 December 2017 193 2,770 355 519 1,189 5,026 Balance sheet amount at 31 December 2017 403 – 662 19 1,751 2,835 Balance sheet amount at 31 December 2016 425 13 4 39 1,200 1,681 Included within brands above are assets of £380 million (31 December 2016: £380 million) that have been determined to have indefinite useful lives and are not amortised. These brands use the Bank of Scotland name which has been in existence for over 300 years. These brands are well established financial services brands and there are no indications that they should not have an indefinite useful life. The additional £702 million of purchased credit card relationships in the year ended 31 December 2017 have arisen from the acquisition of MBNA (see note 22) and represent the benefit of recurring income generated from the portfolio of credit cards purchased. |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Property Plant And Equipment And Investment Properties [Abstract] | |
Disclosure Of Property Plant And Equipment And Investment Properties [Text Block] | NOTE 26: PROPERTY, PLANT AND EQUIPMENT Investment Operating properties Premises Equipment lease assets Total £m £m £m £m £m Cost or valuation: At 1 January 2016 4,361 2,589 5,266 5,023 17,239 Exchange and other adjustments 13 2 6 112 133 Additions – 59 806 2,088 2,953 Expenditure on investment properties (see below) 344 – – – 344 Change in fair value of investment properties (note 7) (83 ) – – – (83 ) Disposals (871 ) (100 ) (113 ) (1,017 ) (2,101 ) At 31 December 2016 3,764 2,550 5,965 6,206 18,485 Exchange and other adjustments – (37 ) – (44 ) (81 ) Acquisition of businesses (note 22) – 3 3 – 6 Additions – 70 382 2,262 2,714 Expenditure on investment properties (see below) 209 – – – 209 Change in fair value of investment properties (note 7) 230 – – – 230 Disposals (504 ) (795 ) (1,282 ) (1,896 ) (4,477 ) At 31 December 2017 3,699 1,791 5,068 6,528 17,086 Accumulated depreciation and impairment: At 1 January 2016 – 1,247 2,096 917 4,260 Exchange and other adjustments – (1 ) (8 ) 49 40 Depreciation charge for the year – 136 672 953 1,761 Disposals – (49 ) (89 ) (410 ) (548 ) At 31 December 2016 – 1,333 2,671 1,509 5,513 Exchange and other adjustments – (8 ) (9 ) (34 ) (51 ) Depreciation charge for the year – 125 734 1,085 1,944 Disposals – (722 ) (1,271 ) (1,054 ) (3,047 ) At 31 December 2017 – 728 2,125 1,506 4,359 Balance sheet amount at 31 December 2017 3,699 1,063 2,943 5,022 12,727 Balance sheet amount at 31 December 2016 3,764 1,217 3,294 4,697 12,972 Expenditure on investment properties is comprised as follows: 2017 2016 £m £m Acquisitions of new properties 82 251 Additional expenditure on existing properties 127 93 209 344 Rental income of £213 million (2016: £229 million) and direct operating expenses arising from properties that generate rental income of £24 million (2016: £26 million) have been recognised in the income statement. Capital expenditure in respect of investment properties which had been contracted for but not recognised in the financial statements was £21 million (2016: £65 million). The table above analyses movements in investment properties, all of which are categorised as level 3. See note 48 for details of levels in the fair value hierarchy. At 31 December the future minimum rentals receivable under non-cancellable operating leases were as follows: 2017 2016 £m £m Receivable within 1 year 1,301 1,120 1 to 5 years 1,419 1,373 Over 5 years 128 347 Total future minimum rentals receivable 2,848 2,840 Equipment leased to customers under operating leases primarily relates to vehicle contract hire arrangements. During 2016 and 2017 no contingent rentals in respect of operating leases were recognised in the income statement. Total future minimum sub-lease income of £71 million at 31 December 2017 (£109 million at 31 December 2016) is expected to be received under non-cancellable sub-leases of the Group’s premises. |
OTHER ASSETS
OTHER ASSETS | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of other assets [text block] [Abstract] | |
Disclosure of other assets [text block] | NOTE 27: OTHER ASSETS 2017 2016 £m £m Assets arising from reinsurance contracts held (notes 31 and 33) 602 714 Deferred acquisition and origination costs 104 81 Settlement balances 720 700 Corporate pension asset 7,786 6,645 Investments in joint ventures and associates 65 59 Other assets and prepayments 4,260 4,556 Total other assets 13,537 12,755 |
CUSTOMER DEPOSITS
CUSTOMER DEPOSITS | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of deposits from customers [text block] [Abstract] | |
Disclosure of deposits from customers [text block] | NOTE 28: CUSTOMER DEPOSITS 2017 2016 £m £m Non-interest bearing current accounts 70,444 61,804 Interest bearing current accounts 95,889 90,978 Savings and investment accounts 196,966 208,227 Liabilities in respect of securities sold under repurchase agreements 2,638 2,462 Other customer deposits 52,187 51,989 Customer deposits 418,124 415,460 For amounts included above which are subject to repurchase agreements, see note 51. Included in the amounts reported above are deposits of £220,855 million (2016: £219,106 million) which are protected under the UK Financial Services Compensation Scheme. |
TRADING AND OTHER FINANCIAL LIA
TRADING AND OTHER FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Trading And Other Financial Liabilities At Fair Value Through Profit Or Loss [Abstract] | |
Disclosure Of Trading And Other Financial Liabilities At Fair Value Through Profit Or Loss [Text Block] | NOTE 29: TRADING AND OTHER FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS 2017 2016 £m £m Liabilities held at fair value through profit or loss 7,815 9,425 Trading liabilities: Liabilities in respect of securities sold under repurchase agreements 41,378 42,067 Other deposits 381 530 Short positions in securities 1,303 2,482 43,062 45,079 Trading and other financial liabilities at fair value through profit or loss 50,877 54,504 Liabilities designated at fair value through profit or loss primarily represent debt securities in issue which either contain substantive embedded derivatives which would otherwise need to be recognised and measured at fair value separately from the related debt securities, or which are accounted for at fair value to significantly reduce an accounting mismatch. The amount contractually payable on maturity of the debt securities held at fair value through profit or loss at 31 December 2017 was £14,224 million, which was £6,412 million higher than the balance sheet carrying value (2016: £16,079 million, which was £6,656 million higher than the balance sheet carrying value). At 31 December 2017 there was a cumulative £147 million increase in the fair value of these liabilities attributable to changes in credit spread risk; this is determined by reference to the quoted credit spreads of Lloyds Bank plc, the issuing entity within the Group. Of the cumulative amount an increase of £52 million arose in 2017 and an increase of £28 million arose in 2016. For the fair value of collateral pledged in respect of repurchase agreements see note 51. |
DEBT SECURITIES IN ISSUE
DEBT SECURITIES IN ISSUE | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of debt instruments [text block] [Abstract] | |
Disclosure of debt instruments [text block] | NOTE 30: DEBT SECURITIES IN ISSUE 2017 2016 £m £m Medium-term notes issued 29,418 27,182 Covered bonds (note 18) 26,132 30,521 Certificates of deposit issued 9,999 8,077 Securitisation notes (note 18) 3,660 7,253 Commercial paper 3,241 3,281 Total debt securities in issue 72,450 76,314 |
LIABILITIES ARISING FROM INSURA
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of amounts arising from insurance contracts [text block] [Abstract] | |
Disclosure of amounts arising from insurance contracts [text block] | NOTE 31: LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS Insurance contract and participating investment contract liabilities are comprised as follows: 2017 2016 Gross Reinsurance 1 Net Gross Reinsurance 1 Net £m £m £m £m £m £m Life insurance (see (1) below): Insurance contracts 89,157 (563 ) 88,594 79,793 (671 ) 79,122 Participating investment contracts 13,673 – 13,673 13,984 – 13,984 102,830 (563 ) 102,267 93,777 (671 ) 93,106 Non-life insurance contracts (see (2) below): Unearned premiums 358 (13 ) 345 404 (14 ) 390 Claims outstanding 225 – 225 209 – 209 583 (13 ) 570 613 (14 ) 599 Total 103,413 (576 ) 102,837 94,390 (685 ) 93,705 1 Reinsurance balances are reported within other assets (note 27). (1) Life insurance The movement in life insurance contract and participating investment contract liabilities over the year can be analysed as follows: Participating Insurance investment contracts contracts Gross Reinsurance Net £m £m £m £m £m At 1 January 2016 66,122 13,460 79,582 (629 ) 78,953 New business 4,422 28 4,450 (5 ) 4,445 Changes in existing business 9,214 496 9,710 (37 ) 9,673 Change in liabilities charged to the income statement (note 10) 13,636 524 14,160 (42 ) 14,118 Exchange and other adjustments 35 – 35 – 35 At 31 December 2016 79,793 13,984 93,777 (671 ) 93,106 New business 4,154 43 4,197 (21 ) 4,176 Changes in existing business 5,224 (354 ) 4,870 129 4,999 Change in liabilities charged to the income statement (note 10) 9,378 (311 ) 9,067 108 9,175 Exchange and other adjustments (14 ) – (14 ) – (14 ) At 31 December 2017 89,157 13,673 102,830 (563 ) 102,267 Liabilities for insurance contracts and participating investment contracts can be split into with-profit fund liabilities, accounted for using the PRA’s realistic capital regime (realistic liabilities) and non-profit fund liabilities, accounted for using a prospective actuarial discounted cash flow methodology, as follows: 2017 2016 With-profit Non-profit With-profit Non-profit fund fund Total fund fund Total £m £m £m £m £m £m Insurance contracts 8,946 80,211 89,157 9,147 70,646 79,793 Participating investment contracts 8,481 5,192 13,673 8,860 5,124 13,984 Total 17,427 85,403 102,830 18,007 75,770 93,777 WITH-PROFIT FUND REALISTIC LIABILITIES (I) BUSINESS DESCRIPTION Scottish Widows Limited has the only with-profit funds within the Group. The primary purpose of the conventional and unitised business written in the with-profit funds is to provide a smoothed investment vehicle to policyholders, protecting them against short-term market fluctuations. Payouts may be subject to a guaranteed minimum payout if certain policy conditions are met. With-profit policyholders are entitled to at least 90 per cent of the distributed profits, with the shareholders receiving the balance. The policyholders are also usually insured against death and the policy may carry a guaranteed annuity option at retirement. (II) METHOD OF CALCULATION OF LIABILITIES With-profit liabilities are stated at their realistic value, the main components of which are: – With-profit benefit reserve, the total asset shares for with-profit policies; – Cost of options and guarantees (including guaranteed annuity options); – Deductions levied against asset shares; – Planned enhancements to with-profits benefits reserve; and – Impact of the smoothing policy. (III) ASSUMPTIONS Key assumptions used in the calculation of with-profit liabilities, and the processes for determining these, are: INVESTMENT RETURNS AND DISCOUNT RATES With-profit fund liabilities are valued on a market-consistent basis, achieved by the use of a valuation model which values liabilities on a basis calibrated to tradable market option contracts and other observable market data. The with-profit fund financial options and guarantees are valued using a stochastic simulation model where all assets are assumed to earn, on average, the risk-free yield and all cash flows are discounted using the risk-free yield. The risk-free yield is defined as the spot yield derived from the relevant swap curve, adjusted for credit risk. Further information on significant options and guarantees is given below. GUARANTEED ANNUITY OPTION TAKE-UP RATES Certain pension contracts contain guaranteed annuity options that allow the policyholder to take an annuity benefit on retirement at annuity rates that were guaranteed at the outset of the contract. For contracts that contain such options, key assumptions in determining the cost of options are economic conditions in which the option has value, mortality rates and take up rates of other options. The financial impact is dependent on the value of corresponding investments, interest rates and longevity at the time of the claim. INVESTMENT VOLATILITY The calibration of the stochastic simulation model uses implied volatilities of derivatives where possible, or historical volatility where it is not possible to observe meaningful prices. MORTALITY The mortality assumptions, including allowances for improvements in longevity for annuitants, are set with regard to the Group’s actual experience where this is significant, and relevant industry data otherwise. LAPSE RATES (PERSISTENCY) Lapse rates refer to the rate of policy termination or the rate at which policyholders stop paying regular premiums due under the contract. Historical persistency experience is analysed using statistical techniques. As experience can vary considerably between different product types and for contracts that have been in force for different periods, the data is broken down into broadly homogenous groups for the purposes of this analysis. The most recent experience is considered along with the results of previous analyses and management’s views on future experience, taking into consideration potential changes in future experience that may result from guarantees and options becoming more valuable under adverse market conditions, in order to determine a ‘best estimate’ view of what persistency will be. In determining this best estimate view a number of factors are considered, including the credibility of the results (which will be affected by the volume of data available), any exceptional events that have occurred during the period under consideration, any known or expected trends in underlying data and relevant published market data. (IV) OPTIONS AND GUARANTEES WITHIN THE WITH-PROFIT FUNDS The most significant options and guarantees provided from within the With-Profit Funds are in respect of guaranteed minimum cash benefits on death, maturity, retirement or certain policy anniversaries, and guaranteed annuity options on retirement for certain pension policies. For those policies written in Scottish Widows pre-demutualisation containing potentially valuable options and guarantees, under the terms of the Scheme a separate memorandum account was set up, within the With-Profit Fund originally held in Scottish Widows plc and subsequently transferred into Scottish Widows Limited, called the Additional Account which is available, inter alia, to meet any additional costs of providing guaranteed benefits in respect of those policies. The Additional Account had a value at 31 December 2017 of £2.8 billion (2016: £2.7 billion). The eventual cost of providing benefits on policies written both pre and post demutualisation is dependent upon a large number of variables, including future interest rates and equity values, demographic factors, such as mortality, and the proportion of policyholders who seek to exercise their options. The ultimate cost will therefore not be known for many years. As noted above, the liabilities of the With-Profit Funds are valued using a market-consistent stochastic simulation model which places a value on the options and guarantees which captures both their intrinsic value and their time value. The most significant economic assumptions included in the model are risk-free yield and investment volatility. NON-PROFIT FUND LIABILITIES (I) BUSINESS DESCRIPTION The Group principally writes the following types of life insurance contracts within its non-profit funds. Shareholder profits on these types of business arise from management fees and other policy charges. Unit-linked business Life insurance Annuities (II) METHOD OF CALCULATION OF LIABILITIES The non-profit fund liabilities are determined on the basis of recognised actuarial methods and involve estimating future policy cash flows over the duration of the in-force book of policies, and discounting the cash flows back to the valuation date allowing for probabilities of occurrence. (III) ASSUMPTIONS Generally, assumptions used to value non-profit fund liabilities are prudent in nature and therefore contain a margin for adverse deviation. This margin for adverse deviation is based on management’s judgement and reflects management’s views on the inherent level of uncertainty. The key assumptions used in the measurement of non-profit fund liabilities are: INTEREST RATES The rates of interest used are determined by reference to a number of factors including the redemption yields on fixed interest assets at the valuation date. Margins for risk are allowed for in the assumed interest rates. These are derived from the limits in the guidelines set by local regulatory bodies, including reductions made to the available yields to allow for default risk based upon the credit rating of the securities allocated to the insurance liability. MORTALITY AND MORBIDITY The mortality and morbidity assumptions, including allowances for improvements in longevity for annuitants, are set with regard to the Group’s actual experience where this provides a reliable basis, and relevant industry data otherwise, and include a margin for adverse deviation. LAPSE RATES (PERSISTENCY) Lapse rates are allowed for on some non-profit fund contracts. The process for setting these rates is as described for with-profit liabilities, however a prudent scenario is assumed by the inclusion of a margin for adverse deviation within the non-profit fund liabilities. MAINTENANCE EXPENSES Allowance is made for future policy costs explicitly. Expenses are determined by reference to an internal analysis of current and expected future costs plus a margin for adverse deviation. Explicit allowance is made for future expense inflation. KEY CHANGES IN ASSUMPTIONS A detailed review of the Group’s assumptions in 2017 resulted in the following key impacts on profit before tax: – Change in persistency assumptions (£237 million decrease). – Change in the assumption in respect of current and future mortality and morbidity rates (£289 million increase). – Change in expenses assumptions (£142 million decrease). These amounts include the impacts of movements in liabilities and value of the in-force business in respect of insurance contracts and participating investment contracts. (IV) OPTIONS AND GUARANTEES OUTSIDE THE WITH-PROFIT FUNDS A number of typical guarantees are provided outside the With-Profit Funds such as guaranteed payments on death (e.g. term assurance) or guaranteed income for life (e.g. annuities). In addition, certain personal pension policyholders in Scottish Widows, for whom reinstatement to their occupational pension scheme was not an option, have been given a guarantee that their pension and other benefits will correspond in value to the benefits of the relevant occupational pension scheme. The key assumptions affecting the ultimate value of the guarantee are future salary growth, gilt yields at retirement, annuitant mortality at retirement, marital status at retirement and future investment returns. There is currently a provision, calculated on a deterministic basis, of £35 million (2016: £82 million) in respect of those guarantees. (2) Non-life insurance For non-life insurance contracts, the methodology and assumptions used in relation to determining the bases of the earned premium and claims provisioning levels are derived for each individual underwritten product. Assumptions are intended to be neutral estimates of the most likely or expected outcome. There has been no significant change in the assumptions and methodologies used for setting reserves. The movements in non-life insurance contract liabilities and reinsurance assets over the year have been as follows: 2017 2016 £m £m Provisions for unearned premiums Gross provision at 1 January 404 461 Increase in the year 724 827 Release in the year (770 ) (884 ) Change in provision for unearned premiums charged to income statement (46 ) (57 ) Gross provision at 31 December 358 404 Reinsurers’ share (13 ) (14 ) Net provision at 31 December 345 390 These provisions represent the liability for short-term insurance contracts for which the Group’s obligations are not expired at the year end. 2017 2016 £m £m Claims outstanding Gross claims outstanding at 1 January 209 251 Cash paid for claims settled in the year (321 ) (408 ) Increase/(decrease) in liabilities charged to the income statement 1 337 366 16 (42 ) Gross claims outstanding at 31 December 225 209 Reinsurers’ share – – Net claims outstanding at 31 December 225 209 Notified claims 174 122 Incurred but not reported 51 87 Net claims outstanding at 31 December 225 209 1 Of which an increase of £350 million (2016: £363 million) was in respect of current year claims and a decrease of £13 million (2016: an increase of £3 million) was in respect of prior year claims. |
LIFE INSURANCE SENSITIVITY ANAL
LIFE INSURANCE SENSITIVITY ANALYSIS | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of sensitivity analysis for actuarial assumptions [text block] [Abstract] | |
Disclosure of sensitivity analysis for actuarial assumptions [text block] | NOTE 32: LIFE INSURANCE SENSITIVITY ANALYSIS Critical accounting estimates and judgements Elements of the valuations of liabilities arising from insurance contracts and participating investment contracts require assumptions to be made about future investment returns, future mortality rates and future policyholder behaviour and are subject to significant management judgement and estimation uncertainty. The methodology used to value these liabilities and the key assumptions that have been made in determining their carrying value are set out in note 31. The following table demonstrates the effect of reasonably possible changes in key assumptions on profit before tax and equity disclosed in these financial statements assuming that the other assumptions remain unchanged. In practice this is unlikely to occur, and changes in some assumptions may be correlated. These amounts include movements in assets, liabilities and the value of the in-force business in respect of insurance contracts and participating investment contracts. The impact is shown in one direction but can be assumed to be reasonably symmetrical. 2017 2016 Increase Increase (reduction) Increase (reduction) Increase in profit (reduction) in profit (reduction) Change in before tax in equity before tax in equity variable £m £m £m £m Non-annuitant mortality and morbidity 1 5% reduction 23 19 25 21 Annuitant mortality 2 5% reduction (221 ) (184 ) (287 ) (238 ) Lapse rates 3 10% reduction 75 62 48 40 Future maintenance and investment expenses 4 10% reduction 289 240 318 264 Risk-free rate 5 0.25% reduction (40 ) (33 ) (74 ) (62 ) Guaranteed annuity option take up 6 5% addition (6 ) (5 ) (12 ) (10 ) Equity investment volatility 7 1% addition (7 ) (6 ) (10 ) (8 ) Widening of credit default spreads on corporate bonds 8 0.25% addition (235 ) (195 ) (200 ) (166 ) Increase in illiquidity premia 9 0.10% addition 145 120 152 126 Assumptions have been flexed on the basis used to calculate the value of in-force business and the realistic and statutory reserving bases. 1 This sensitivity shows the impact of reducing mortality and morbidity rates on non-annuity business to 95 per cent of the expected rate. 2 This sensitivity shows the impact on the annuity and deferred annuity business of reducing mortality rates to 95 per cent of the expected rate. 3 This sensitivity shows the impact of reducing lapse and surrender rates to 90 per cent of the expected rate. 4 This sensitivity shows the impact of reducing maintenance expenses and investment expenses to 90 per cent of the expected rate. 5 This sensitivity shows the impact on the value of in-force business, financial options and guarantee costs, statutory reserves and asset values of reducing the risk-free rate by 25 basis points. 6 This sensitivity shows the impact of a flat 5 per cent addition to the expected rate. 7 This sensitivity shows the impact of a flat 1 per cent addition to the expected rate. 8 This sensitivity shows the impact of a 25 basis point increase in credit default spreads on corporate bonds and the corresponding reduction in market values. Swap curves, the risk-free rate and illiquidity premia are all assumed to be unchanged. 9 This sensitivity shows the impact of a 10 basis point increase in the allowance for illiquidity premia. It assumes the overall spreads on assets are unchanged and hence market values are unchanged. Swap curves and the non-annuity risk-free rate are both assumed to be unchanged. The increased illiquidity premium increases the annuity risk-free rate. |
LIABILITIES ARISING FROM NON-PA
LIABILITIES ARISING FROM NON-PARTICIPATING INVESTMENT CONTRACTS | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of investment contracts liabilities [text block] [Abstract] | |
Disclosure of investment contracts liabilities [text block] | NOTE 33: LIABILITIES ARISING FROM NON-PARTICIPATING INVESTMENT CONTRACTS The movement in liabilities arising from non-participating investment contracts may be analysed as follows: 2017 2016 £m £m At 1 January 20,112 22,777 New business 608 560 Changes in existing business (5,273 ) (3,225 ) At 31 December 15,447 20,112 The balances above are shown gross of reinsurance. As at 31 December 2017, related reinsurance balances were £26 million (2016: £29 million); reinsurance balances are reported within other assets (note 27). Liabilities arising from non-participating investment contracts are categorised as level 2. See note 48 for details of levels in the fair value hierarchy. |
OTHER LIABILITIES
OTHER LIABILITIES | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of other liabilities [text block] [Abstract] | |
Disclosure of other liabilities [text block] | NOTE 34: OTHER LIABILITIES 2017 2016 £m £m Settlement balances 501 706 Unitholders’ interest in Open Ended Investment Companies 14,480 22,947 Unallocated surplus within insurance businesses 390 243 Other creditors and accruals 5,359 5,297 Total other liabilities 20,730 29,193 |
RETIREMENT BENEFIT OBLIGATIONS
RETIREMENT BENEFIT OBLIGATIONS | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of employee benefits [text block] [Abstract] | |
Disclosure of employee benefits [text block] | NOTE 35: RETIREMENT BENEFIT OBLIGATIONS 2017 2016 2015 £m £m £m Charge to the income statement Defined benefit pension schemes 362 279 307 Other post-retirement benefit schemes 7 8 8 Total defined benefit schemes 369 287 315 Defined contribution pension schemes 256 268 233 Total charge to the income statement (note 11) 625 555 548 2017 2016 £m £m Amounts recognised in the balance sheet Retirement benefit assets 723 342 Retirement benefit obligations (358 ) (822 ) Total amounts recognised in the balance sheet 365 (480 ) The total amount recognised in the balance sheet relates to: 2017 2016 £m £m Defined benefit pension schemes 509 (244 ) Other post-retirement benefit schemes (144 ) (236 ) Total amounts recognised in the balance sheet 365 (480 ) Pension schemes DEFINED BENEFIT SCHEMES CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS The accounting valuation of the Group’s defined benefit pension schemes’ liabilities requires management to make a number of assumptions. The key areas of estimation uncertainty are the discount rate applied to future cash flows and the expected lifetime of the schemes’ members. The discount rate is required to be set with reference to market yields at the end of the reporting period on high quality corporate bonds in the currency and with a term consistent with the defined benefit pension schemes’ obligations. The average duration of the schemes’ obligations is approximately 19 years. The market for bonds with a similar duration is illiquid and, as a result, significant management judgement is required to determine an appropriate yield curve on which to base the discount rate. The cost of the benefits payable by the schemes will also depend upon the life expectancy of the members. The Group considers latest market practice and actual experience in determining the appropriate assumptions for both current mortality expectations and the rate of future mortality improvement. It is uncertain whether this rate of improvement will be sustained going forward and, as a result, actual experience may differ from current expectations. The effect on the net accounting surplus or deficit and on the pension charge in the Group’s income statement of changes to the principal actuarial assumptions is set out in (iii) below. (I) CHARACTERISTICS OF AND RISKS ASSOCIATED WITH THE GROUP’S SCHEMES The Group has established a number of defined benefit pension schemes in the UK and overseas. All significant schemes are based in the UK, with the three most significant being the defined benefit sections of the Lloyds Bank Pension Schemes No’s 1 and 2 and the HBOS Final Salary Pension Scheme. At 31 December 2017, these schemes represented 95 per cent of the Group’s total gross defined benefit pension assets (2016: 94 per cent). These schemes provide retirement benefits calculated as a percentage of final pensionable salary depending upon the length of service; the minimum retirement age under the rules of the schemes at 31 December 2017 is generally 55 although certain categories of member are deemed to have a contractual right to retire at 50. The Group operates a number of funded and unfunded pension arrangements, the majority, including the three most significant schemes, are funded schemes in the UK. All these schemes are operated as separate legal entities under trust law by the trustees and are in compliance with the Pensions Act 2004. The responsibility for the governance of the Group’s funded defined benefit pension schemes lies with the Pension Trustees. All of the Group’s funded UK defined benefit pension schemes are managed by a Trustee Board (the Trustee) whose role is to ensure that their Scheme is administered in accordance with the Scheme rules and relevant legislation, and to safeguard the assets in the best interests of all members and beneficiaries. The Trustee is solely responsible for setting investment policy and for agreeing funding requirements with the employer through the funding valuation process. The Board of Trustees must be composed of representatives of the Company and plan participants in accordance with the Scheme’s regulations. A valuation to determine the funding status of each scheme is carried out at least every three years, whereby scheme assets are measured at market value and liabilities (technical provisions) are measured using prudent assumptions. If a deficit is identified a recovery plan is agreed between the Group and the scheme Trustee and sent to the Pensions Regulator for review. The Group has not provided for these deficit contributions as the future economic benefits arising from these contributions are expected to be available to the Group. The Group’s overseas defined benefit pension schemes are subject to local regulatory arrangements. The most recent triennial funding valuation of the Group’s three main schemes, based on the position as at 31 December 2016, is substantially complete and the terms have been agreed in principle with the trustees. The valuation shows an aggregate funding deficit of £7.3 billion (a funding level of 85.6 per cent) compared to a £5.2 billion deficit (a funding level of 85.9 per cent) for the previous valuation as at 30 June 2014. In the light of this funding deficit, and in contemplation of the changes the Group expects to make as a result of its Structural Reform Programme, the Group has agreed in principle a recovery plan with the trustees. Under the plan, deficit contributions of £412 million are payable during 2018, rising to £618 million in 2019, £798 million in 2020, £1,287 million in 2021 and £1,305 million per annum from 2022 to 2024. Contributions in the later years will be subject to review and renegotiation at subsequent funding valuations. The next funding valuation is due to be completed by March 2021 with an effective date of 31 December 2019. The deficit contributions are in addition to the regular contributions to meet of benefits accruing over the year. The Group currently expects to pay contributions of approximately £750 million to its defined benefit schemes in 2018. During 2009, the Group made one-off contributions to the Lloyds Bank Pension Scheme No 1 and Lloyds Bank Pension Scheme No 2 in the form of interests in limited liability partnerships for each of the two schemes which hold assets to provide security for the Group’s obligations to the two schemes. At 31 December 2017, the limited liability partnerships held assets of approximately £5.5 billion. The limited liability partnerships are consolidated fully in the Group’s balance sheet. The Group has also established three private limited companies which hold assets to provide security for the Group’s obligations to the HBOS Final Salary Pension Scheme, a section of the Lloyds Bank Pension Scheme No 1 and the Lloyds Bank Offshore Pension Scheme. At 31 December 2017 these held assets of approximately £4.8 billion in aggregate. The private limited companies are consolidated fully in the Group’s balance sheet. The terms of these arrangements require the Group to maintain assets in these vehicles to agreed minimum values in order to secure obligations owed to the relevant Group pension schemes. The Group has satisfied this requirement during 2017. The last funding valuations of other Group schemes were carried out on a number of different dates. In order to report the position under IAS 19 as at 31 December 2017 the most recent valuation results for all schemes have been updated by qualified independent actuaries. The main differences between the funding and IAS 19 valuations are different and more prudent approach to setting the discount rate and more conservative longevity assumptions used in the funding valuations. (II) AMOUNTS IN THE FINANCIAL STATEMENTS 2017 2016 £m £m Amount included in the balance sheet Present value of funded obligations (44,384 ) (45,822 ) Fair value of scheme assets 44,893 45,578 Net amount recognised in the balance sheet 509 (244 ) 2017 2016 £m £m Net amount recognised in the balance sheet At 1 January (244 ) 736 Net defined benefit pension charge (362 ) (279 ) Actuarial (losses) gains on defined benefit obligation (731 ) (8,770 ) Return on plan assets 1,267 7,455 Employer contributions 580 623 Exchange and other adjustments (1 ) (9 ) At 31 December 509 (244 ) 2017 2016 £m £m Movements in the defined benefit obligation At 1 January (45,822 ) (36,903 ) Current service cost (295 ) (257 ) Interest expense (1,241 ) (1,401 ) Remeasurements: Actuarial gains – experience (347 ) 535 Actuarial gains (losses) – demographic assumptions 1,084 195 Actuarial (losses) gains – financial assumptions (1,468 ) (9,500 ) Benefits paid 3,714 1,580 Past service cost (14 ) (20 ) Curtailments (10 ) – Settlements 15 12 Exchange and other adjustments – (63 ) At 31 December (44,384 ) (45,822 ) 2017 2016 £m £m Analysis of the defined benefit obligation: Active members (7,947 ) (9,903 ) Deferred members (15,823 ) (16,934 ) Pensioners (19,014 ) (17,476 ) Dependants (1,600 ) (1,509 ) (44,384 ) (45,822 ) 2017 2016 £m £m Changes in the fair value of scheme assets At 1 January 45,578 37,639 Return on plan assets excluding amounts included in interest income 1,267 7,455 Interest income 1,242 1,441 Employer contributions 580 623 Benefits paid (3,714 ) (1,580 ) Settlements (18 ) (18 ) Administrative costs paid (41 ) (36 ) Exchange and other adjustments (1 ) 54 At 31 December 44,893 45,578 COMPOSITION OF SCHEME ASSETS: 2017 2016 Quoted Unquoted Total Quoted Unquoted Total £m £m £m £m £m £m Equity instruments 846 5 851 1,114 – 1,114 Debt instruments 1 Fixed interest government bonds 5,344 – 5,344 5,797 – 5,797 Index-linked government bonds 17,439 – 17,439 14,359 – 14,359 Corporate and other debt securities 6,903 – 6,903 7,464 – 7,464 Asset-backed securities 121 – 121 99 – 99 29,807 – 29,807 27,719 – 27,719 Property – 544 544 – 497 497 Pooled investment vehicles 3,937 13,443 17,380 3,577 12,845 16,422 Money market instruments, cash, derivatives and other assets and liabilities 1,501 (5,190 ) (3,689 ) 1,462 (1,636 ) (174 ) At 31 December 36,091 8,802 44,893 33,872 11,706 45,578 1 Of the total debt instruments, £27,732 million (31 December 2016: £25,219 million) were investment grade (credit ratings equal to or better than ‘BBB’). The assets of all the funded plans are held independently of the Group’s assets in separate trustee administered funds. The pension schemes’ pooled investment vehicles comprise: 2017 2016 £m £m Equity funds 2,669 2,883 Hedge and mutual funds 2,377 2,350 Liquidity funds 2,877 484 Bond and debt funds 1,830 3,383 Other 7,627 7,322 At 31 December 17,380 16,422 The expense recognised in the income statement for the year ended 31 December comprises: 2017 2016 2015 £m £m £m Current service cost 295 257 302 Net interest amount (1 ) (40 ) (43 ) Past service credits and curtailments 10 – – Settlements 3 6 6 Past service cost – plan amendments 14 20 12 Plan administration costs incurred during the year 41 36 30 Total defined benefit pension expense 362 279 307 ASSUMPTIONS The principal actuarial and financial assumptions used in valuations of the defined benefit pension schemes were as follows: 2017 2016 Discount rate 2.59 2.76 Rate of inflation: Retail Prices Index 3.20 3.23 Consumer Price Index 2.15 2.18 Rate of salary increases 0.00 0.00 Weighted-average rate of increase for pensions in payment 2.73 2.74 2017 2016 Life expectancy for member aged 60, on the valuation date: Men 27.9 28.1 Women 29.5 30.3 Life expectancy for member aged 60, 15 years after the valuation date: Men 28.9 29.3 Women 30.7 31.7 The mortality assumptions used in the scheme valuations are based on standard tables published by the Institute and Faculty of Actuaries which were adjusted in line with the actual experience of the relevant schemes. The table shows that a member retiring at age 60 at 31 December 2017 is assumed to live for, on average, 27.9 years for a male and 29.5 years for a female. In practice there will be much variation between individual members but these assumptions are expected to be appropriate across all members. It is assumed that younger members will live longer in retirement than those retiring now. This reflects the expectation that mortality rates will continue to fall over time as medical science and standards of living improve. To illustrate the degree of improvement assumed the table also shows the life expectancy for members aged 45 now, when they retire in 15 years’ time at age 60. (III) AMOUNT TIMING AND UNCERTAINTY OF FUTURE CASH FLOWS RISK EXPOSURE OF THE DEFINED BENEFIT SCHEMES Whilst the Group is not exposed to any unusual, entity specific or scheme specific risks in its defined benefit pension schemes, it is exposed to a number of significant risks, detailed below: Inflation rate risk: Interest rate risk: Longevity risk: Investment risk: The ultimate cost of the defined benefit obligations to the Group will depend upon actual future events rather than the assumptions made. The assumptions made are unlikely to be borne out in practice and as such the cost may be higher or lower than expected. SENSITIVITY ANALYSIS The effect of reasonably possible changes in key assumptions on the value of scheme liabilities and the resulting pension charge in the Group’s income statement and on the net defined benefit pension scheme liability, for the Group’s three most significant schemes, is set out below. The sensitivities provided assume that all other assumptions and the value of the schemes’ assets remain unchanged, and are not intended to represent changes that are at the extremes of possibility. The calculations are approximate in nature and full detailed calculations could lead to a different result. It is unlikely that isolated changes to individual assumptions will be experienced in practice. Due to the correlation of assumptions, aggregating the effects of these isolated changes may not be a reasonable estimate of the actual effect of simultaneous changes in multiple assumptions. Effect of reasonably possible alternative assumptions Increase (decrease) in the income statement charge Increase (decrease) in the net defined benefit pension scheme liability 2017 £m 2016 2017 £m 2016 Inflation (including pension increases): 1 Increase of 0.1 per cent 16 19 472 491 Decrease of 0.1 per cent (15 ) (14 ) (453 ) (458 ) Discount rate: 2 Increase of 0.1 per cent (28 ) (30 ) (773 ) (821 ) Decrease of 0.1 per cent 26 30 794 847 Expected life expectancy of members: Increase of one year 44 42 1,404 1,213 Decrease of one year (41 ) (37 ) (1,357 ) (1,178 ) 1 At 31 December 2017, the assumed rate of RPI inflation is 3.20 per cent and CPI inflation 2.15 per cent (2016: RPI 3.23 per cent and CPI 2.18 per cent). 2 At 31 December 2017, the assumed discount rate is 2.59 per cent (2016: 2.76 per cent). SENSITIVITY ANALYSIS METHOD AND ASSUMPTIONS The sensitivity analysis above reflects the impact on the Group’s three most significant schemes which account for over 90 per cent of the Group’s defined benefit obligations. Whilst differences in the underlying liability profiles for the remainder of the Group’s pension arrangements mean they may exhibit slightly different sensitivities to variations in these assumptions, the sensitivities provided above are indicative of the impact across the Group as a whole. The inflation assumption sensitivity applies to both the assumed rate of increase in the Consumer Prices Index (CPI) and the Retail Prices Index (RPI), and include the impact on the rate of increases to pensions, both before and after retirement. These pension increases are linked to inflation (either CPI or RPI) subject to certain minimum and maximum limits. The sensitivity analysis (including the inflation sensitivity) does not include the impact of any change in the rate of salary increases as pensionable salaries have been frozen since 2 April 2014. The life expectancy assumption has been applied by allowing for an increase/decrease in life expectation from age 60 of one year, based upon the approximate weighted average age for each scheme. Whilst this is an approximate approach and will not give the same result as a one year increase in life expectancy at every age, it provides an appropriate indication of the potential impact on the schemes from changes in life expectancy. There was no change in the methods and assumptions used in preparing the sensitivity analysis from the prior year. ASSET-LIABILITY MATCHING STRATEGIES The main schemes’ assets are invested in a diversified portfolio, consisting primarily of debt securities. The investment strategy is not static and will evolve to reflect the structure of liabilities within the schemes. Specific asset-liability matching strategies for each pension plan are independently determined by the responsible governance body for each scheme and in consultation with the employer. A significant goal of the asset-liability matching strategies adopted by Group schemes is to reduce volatility caused by changes in market expectations of interest rates and inflation. In the main schemes, this is achieved by investing scheme assets in bonds, primarily fixed interest gilts and index linked gilts, and by entering into interest rate and inflation swap arrangements. These investments are structured to take into account the profile of scheme liabilities, and actively managed to reflect both changing market conditions and changes to the liability profile. At 31 December 2017 the asset-liability matching strategy mitigated 98 per cent of the liability sensitivity to interest rate movements and 102 per cent of the liability sensitivity to inflation movements. Much of the residual interest rate sensitivity is mitigated through holdings of corporate and other debt securities. MATURITY PROFILE OF DEFINED BENEFIT OBLIGATION The following table provides information on the weighted average duration of the defined benefit pension obligations and the distribution and timing of benefit payments: 2017 2016 Duration of the defined benefit obligation 19 20 2017 2016 Maturity analysis of benefits expected to be paid Benefits expected to be paid within 12 months 1,174 1,639 Benefits expected to be paid between 1 and 2 years 1,235 1,180 Benefits expected to be paid between 2 and 5 years 4,089 3,971 Benefits expected to be paid between 5 and 10 years 8,082 8,030 Benefits expected to be paid between 10 and 15 years 9,360 9,453 Benefits expected to be paid between 15 and 25 years 19,044 20,268 Benefits expected to be paid between 25 and 35 years 16,735 18,831 Benefits expected to be paid between 35 and 45 years 11,156 13,589 Benefits expected to be paid in more than 45 years 5,219 7,809 MATURITY ANALYSIS METHOD AND ASSUMPTIONS The projected benefit payments are based on the assumptions underlying the assessment of the obligations, including allowance for expected future inflation. They are shown in their undiscounted form and therefore appear large relative to the discounted assessment of the defined benefit obligations recognised in the Group’s balance sheet. They are in respect of benefits that have been accrued prior to the respective year-end date only and make no allowance for any benefits that may have been accrued subsequently. DEFINED CONTRIBUTION SCHEMES The Group operates a number of defined contribution pension schemes in the UK and overseas, principally Your Tomorrow and the defined contribution sections of the Lloyds Bank Pension Scheme No. 1. During the year ended 31 December 2017 the charge to the income statement in respect of defined contribution schemes was £256 million (2016: £268 million; 2015: £233 million), representing the contributions payable by the employer in accordance with each scheme’s rules. Other post-retirement benefit schemes The Group operates a number of schemes which provide post-retirement healthcare benefits and concessionary mortgages to certain employees, retired employees and their dependants. The principal scheme relates to former Lloyds Bank staff and under this scheme the Group has undertaken to meet the cost of post-retirement healthcare for all eligible former employees (and their dependants) who retired prior to 1 January 1996. The Group has entered into an insurance contract to provide these benefits and a provision has been made for the estimated cost of future insurance premiums payable. For the principal post-retirement healthcare scheme, the latest actuarial valuation of the liability was carried out at 31 December 2017 by qualified independent actuaries. The principal assumptions used were as set out above, except that the rate of increase in healthcare premiums has been assumed at 6.81 per cent (2016: 6.84 per cent). Movements in the other post-retirement benefits obligation: 2017 £m 2016 At 1 January (236 ) (200 ) Actuarial (loss) gain 92 (33 ) Insurance premiums paid 7 7 Charge for the year (7 ) (8 ) Exchange and other adjustments – (2 ) At 31 December (144 ) (236 ) |
DEFERRED TAX
DEFERRED TAX | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of deferred taxes [text block] [Abstract] | |
Disclosure of deferred taxes [text block] | NOTE 36: DEFERRED TAX The Group’s deferred tax assets and liabilities are as follows: Statutory position 2017 £m 2016 Tax disclosure 2017 £m 2016 Deferred tax assets 2,284 2,706 Deferred tax assets 4,989 5,634 Deferred tax liabilities – – Deferred tax liabilities (2,705 ) (2,928 ) Asset at 31 December 2,284 2,706 Asset at 31 December 2,284 2,706 The statutory position reflects the deferred tax assets and liabilities as disclosed in the consolidated balance sheet and takes account of the inability to offset assets and liabilities where there is no legally enforceable right of offset. The tax disclosure of deferred tax assets and liabilities ties to the amounts outlined in the tables below which splits the deferred tax assets and liabilities by type. The UK corporation tax rate will reduce from 19 per cent to 17 per cent on 1 April 2020. The Group measures its deferred tax assets and liabilities at the value expected to be recoverable or payable in future periods, and re-measures them at each reporting date based on the most recent estimates of utilisation or settlement, including the impact of bank surcharge where appropriate. The deferred tax impact of this re-measurement in 2017 is a charge of £9 million in the income statement and a credit of £22 million in other comprehensive income. Movements in deferred tax liabilities and assets (before taking into consideration the offsetting of balances within the same taxing jurisdiction) can be summarised as follows: Deferred tax assets Tax losses Property, Pension Provisions Share-based Other Total At 1 January 2016 4,890 1,089 102 28 91 395 6,595 (Charge) credit to the income statement (592 ) (120 ) (1,981 ) 12 (17 ) (357 ) (3,055 ) (Charge) credit to other comprehensive income – – 2,107 – – – 2,107 Other (charge) credit to equity – – – – (13 ) – (13 ) At 31 December 2016 4,298 969 228 40 61 38 5,634 (Charge) credit to the income statement (264 ) (226 ) (287 ) (7 ) 7 (28 ) (805 ) (Charge) credit to other comprehensive income – – 149 25 – – 174 Other (charge) credit to equity – – – – (17 ) – (17 ) Impact of acquisitions and disposals – – – – – 3 3 At 31 December 2017 4,034 743 90 58 51 13 4,989 Deferred tax liabilities Long-term Acquisition Pension Derivatives Available-for- Other Total At 1 January 2016 (641 ) (891 ) (174 ) (395 ) (11 ) (506 ) (2,618 ) (Charge) credit to the income statement (273 ) 93 1,876 232 23 252 2,203 (Charge) credit to other comprehensive income – – (1,787 ) (466 ) (246 ) – (2,499 ) Exchange and other adjustments – – – (14 ) – – (14 ) At 31 December 2016 (914 ) (798 ) (85 ) (643 ) (234 ) (254 ) (2,928 ) (Charge) credit to the income statement 115 76 199 (139 ) (40 ) 116 327 (Charge) credit to other comprehensive income – – (295 ) 283 67 – 55 Impact of acquisitions and disposals – (157 ) – – – (2 ) (159 ) At 31 December 2017 (799 ) (879 ) (181 ) (499 ) (207 ) (140 ) (2,705 ) CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS Estimation of income taxes includes the assessment of recoverability of deferred tax assets. Deferred tax assets are only recognised to the extent they are considered more likely than not to be recoverable based on existing tax laws and forecasts of future taxable profits against which the underlying tax deductions can be utilised. The Group has recognised a deferred tax asset of £4,034 million (2016: £4,298 million) in respect of UK trading losses carried forward. Substantially all of these losses have arisen in Bank of Scotland plc and Lloyds Bank plc, and they will be utilised as taxable profits arise in those legal entities in future periods. The Group’s expectations as to the level of future taxable profits take into account the Group’s long-term financial and strategic plans, and anticipated future tax-adjusting items. In making this assessment, account is taken of business plans, the Board-approved operating plan and the expected future economic outlook as set out in the strategic report, as well as the risks associated with future regulatory change. Under current law there is no expiry date for UK trading losses not yet utilised, although (since Finance Act 2016) banking losses that arose before 1 April 2015 can only be used against 25 per cent of taxable profits arising after 1 April 2016, and they cannot be used to reduce the surcharge on banking profits. This restriction in utilisation means that the value of the deferred tax asset is only expected to be fully recovered by 2034. DEFERRED TAX NOT RECOGNISED No deferred tax has been recognised in respect of the future tax benefit of expenses of the life assurance business carried forward. The deferred tax asset not recognised in respect of these expenses is approximately £470 million (2016: £636 million). These expenses can be carried forward indefinitely. Deferred tax assets of approximately £76 million (2016: £92 million) have not been recognised in respect of £404 million of UK tax losses and other temporary differences which can only be used to offset future capital gains. UK capital losses can be carried forward indefinitely. In addition, no deferred tax asset is recognised in respect of unrelieved foreign tax credits of £46 million (2016: £46 million), as there are no expected future taxable profits against which the credits can be utilised. These credits can be carried forward indefinitely. No deferred tax has been recognised in respect of foreign trade losses where it is not more likely than not that we will be able to utilise them in future periods. Of the asset not recognised, £35 million (2016: £63 million) relates to losses that will expire if not used within 20 years, and £56 million (2016: £56 million) relates to losses with no expiry date. As a result of parent company exemptions on dividends from subsidiaries and on capital gains on disposal there are no significant taxable temporary differences associated with investments in subsidiaries, branches, associates and joint arrangements. |
OTHER PROVISIONS
OTHER PROVISIONS | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of other provisions [text block] [Abstract] | |
Disclosure of other provisions [text block] | NOTE 37: OTHER PROVISIONS Critical accounting estimates and judgements At 31 December 2017, the Group carried provisions of £4,070 million (2016: £3,947 million) against the cost of making redress payments to customers and the related administration costs in connection with historical regulatory breaches, principally the mis-selling of payment protection insurance (2017: £2,778 million; 2016: £2,608 million). Determining the amount of the provisions, which represent management’s best estimate of the cost of settling these issues, requires the exercise of significant judgement. It will often be necessary to form a view on matters which are inherently uncertain, such as the scope of reviews required by regulators, the number of future complaints, the extent to which they will be upheld, the average cost of redress and the impact of legal decisions that may be relevant to claims received. Consequently the continued appropriateness of the underlying assumptions is reviewed on a regular basis against actual experience and other relevant evidence and adjustments made to the provisions where appropriate. More detail on the nature of the assumptions that have been made and key sensitivities is set out below. Provisions for Payment Other Vacant Other Total At 1 January 2017 56 2,608 1,339 51 1,164 5,218 Exchange and other adjustments (26 ) – 16 9 139 138 Acquisition of businesses (note 22) 9 527 – – 92 628 Provisions applied – (1,657 ) (928 ) (23 ) (252 ) (2,860 ) Charge for the year (9 ) 1,300 865 19 247 2,422 At 31 December 2017 30 2,778 1,292 56 1,390 5,546 Provisions for commitments Provisions are held in cases where the Group is irrevocably committed to advance additional funds, but where there is doubt as to the customer’s ability to meet its repayment obligations. Payment protection insurance (excluding MBNA) The Group increased the provision for PPI costs by a further £1,300 million in 2017, of which £600 million was in the fourth quarter, bringing the total amount provided to £18,675 million. The remaining provision is consistent with an average of 11,000 complaints per week (previously 9,000) through to the industry deadline of August 2019, in line with the average experience over the last nine months. The higher volume of complaints received has been driven by increased claims management company (CMC) marketing activity and the UK Financial Conduct Authority (FCA) advertising campaign. At 31 December 2017, a provision of £2,438 million remained unutilised relating to complaints and associated administration costs. Total cash payments were £1,470 million during the year to 31 December 2017. SENSITIVITIES The Group estimates that it has sold approximately 16 million PPI policies since 2000. These include policies that were not mis-sold and those that have been successfully claimed upon. Since the commencement of the PPI redress programme in 2011 the Group estimates that it has contacted, settled or provided for approximately 53 per cent of the policies sold since 2000. The total amount provided for PPI represents the Group’s best estimate of the likely future cost. However a number of risks and uncertainties remain in particular with respect to future volumes. The cost could differ from the Group’s estimates and the assumptions underpinning them, and could result in a further provision being required. There is significant uncertainty around the impact of the regulatory changes, FCA media campaign and Claims Management Company and customer activity. For every additional 1,000 reactive complaints per week above 11,000 on average through to the industry deadline of August 2019, the Group would expect an additional charge of £200 million. Payment protection insurance (MBNA) With regard to MBNA, as announced in December 2016, the Group’s exposure is capped at £240 million already provided for, through an indemnity received from Bank of America. Other provisions for legal actions and regulatory matters In the course of its business, the Group is engaged in discussions with the PRA, FCA and other UK and overseas regulators and other governmental authorities on a range of matters. The Group also receives complaints in connection with its past conduct and claims brought by or on behalf of current and former employees, customers, investors and other third parties and is subject to legal proceedings and other legal actions. Where significant, provisions are held against the costs expected to be incurred in relation to these matters and matters arising from related internal reviews. During the year ended 31 December 2017 the Group charged a further £865 million in respect of legal actions and other regulatory matters, the unutilised balance at 31 December 2017 was £1,292 million (31 December 2016: £1,339 million). The most significant items are as follows. ARREARS HANDLING RELATED ACTIVITIES The Group has provided an additional £245 million (bringing the total provided to date to £642 million), for the costs of identifying and rectifying certain arrears management fees and activities. Following a review of the Group’s arrears handling activities, the Group has put in place a number of actions to improve further its handling of customers in these areas and has made good progress in reimbursing mortgage arrears fees to the 590,000 impacted customers. PACKAGED BANK ACCOUNTS In 2017 the Group provided an additional £245 million in respect of complaints relating to alleged mis-selling of packaged bank accounts raising the total amount provided to £750 million. A number of risks and uncertainties remain in particular with respect to future volumes. CUSTOMER CLAIMS IN RELATION TO INSURANCE BRANCH BUSINESS IN GERMANY The Group continues to receive claims in Germany from customers relating to policies issued by Clerical Medical Investment Group Limited (subsequently renamed Scottish Widows Limited). The German industry-wide issue regarding notification of contractual ‘cooling off’ periods continued to lead to an increasing number of claims in 2016 and 2017. Up to 31 December 2016 the Group had provided a total of £639 million and no further amounts have been provided to 31 December 2017. The validity of the claims facing the Group depends upon the facts and circumstances in respect of each claim. As a result the ultimate financial effect, which could be significantly different from the current provision, will be known only once all relevant claims have been resolved. HBOS READING – CUSTOMER REVIEW The Group is undertaking a review into a number of customer cases from the former HBOS Impaired Assets Office based in Reading. This review follows the conclusion of a criminal trial in which a number of individuals, including two former HBOS employees, were convicted of conspiracy to corrupt, fraudulent trading and associated money laundering offences which occurred prior to the acquisition of HBOS by the Group in 2009. The Group has provided £100 million in the year to 31 December 2017 and is in the process of paying compensation to the victims of the fraud for economic losses as well as ex-gratia payments and awards for distress and inconvenience. The review is ongoing and at 12 February 2018, the Group had made offers to 57 customers, which represents more than 80 per cent of the customers in review. Vacant leasehold property Vacant leasehold property provisions are made by reference to a prudent estimate of expected sub-let income, compared to the head rent, and the possibility of disposing of the Group’s interest in the lease, taking into account conditions in the property market. These provisions are reassessed on a biannual basis and will normally run off over the period of under-recovery of the leases concerned, currently averaging 5 years; where a property is disposed of earlier than anticipated, any remaining balance in the provision relating to that property is released. Other Following the sale of TSB Banking Group plc in 2015, the Group raised a provision of £665 million in relation to the Transitional Service Agreement entered into between Lloyds Bank plc and TSB and the contribution to be provided to TSB in moving to alternative IT provision; £622 million of this provision remained unutilised at 31 December 2017. Provisions are made for staff and other costs related to Group restructuring initiatives at the point at which the Group becomes irrevocably committed to the expenditure. At 31 December 2017 provisions of £104 million (31 December 2016: £239 million) were held. Other provisions also includes those arising in the normal course of business, whether from certain customer rectifications or provisions for dilapidation and refurbishment of properties. Provisions also include a matter arising out of the insolvency of a third party insurer, which remains exposed to asbestos and pollution claims in the US. The ultimate cost and timing of payments are uncertain. The provision held of £32 million at 31 December 2017 represents management’s current best estimate of the cost after having regard to actuarial estimates of future losses. |
SUBORDINATED LIABILITIES
SUBORDINATED LIABILITIES | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of subordinated liabilities [text block] [Abstract] | |
Disclosure of subordinated liabilities [text block] | NOTE 38: SUBORDINATED LIABILITIES The movement in subordinated liabilities during the year was as follows: Preference Preferred Undated Dated Total At 1 January 2017 864 4,134 599 14,234 19,831 Issued during the year – – – – – Repurchases and redemptions during the year 1 – (237 ) – (771 ) (1,008 ) Foreign exchange movements (43 ) (221 ) (34 ) (487 ) (785 ) Other movements (all non-cash) (8 ) 14 – (122 ) (116 ) At 31 December 2017 813 3,690 565 12,854 17,922 1 The repurchases and redemptions resulted in cash outflows of £1,008 million. Repurchases and redemptions during the year Preferred securities £m 7.627% Fixed to Floating Rate Guaranteed Non-voting Non-cumulative 163 Preferred Securities 4.385% Step-up Perpetual Capital Securities callable 2017 (€750 million) 74 237 Dated subordinated liabilities £m Subordinated Callable Notes 2017 771 771 There were no repurchases of preference shares or undated subordinated liabilities during the year. Preference Preferred Undated Enhanced Dated Total At 1 January 2016 980 3,748 965 3,610 14,009 23,312 Issued during the year 1 – – – – 1,061 1,061 Tender offers and redemptions 2 – – – (3,568 ) – (3,568 ) Other repurchases and redemptions during the year 2 (319 ) (182 ) (475 ) – (3,070 ) (4,046 ) Foreign exchange movements 127 511 166 93 1,854 2,751 Other movements (all non-cash) 76 57 (57 ) (135 ) 380 321 At 31 December 2016 864 4,134 599 – 14,234 19,831 Other repurchases and redemptions Preference shares £m 6.267% Non-Cumulative Callable Fixed to Floating Rate Preference shares callable 2016 319 Preferred securities £m 4.939% Non-voting Non-cumulative Perpetual Preferred Securities 32 7.286% Perpetual Regulatory Tier One Securities (Series A) 150 182 Undated subordinated liabilities £m 7.5% Undated Subordinated Step-up Notes 5 4.25% Subordinated Undated Instruments 7 Floating Rate Primary Capital Notes 108 Primary Capital Undated Floating Rate Notes 3 353 5.125% Undated subordinated Step-up Notes callable 2016 2 475 Dated subordinated liabilities £m Subordinated Fixed to Fixed Rate Notes 2021 callable 2016 4 2,359 Callable Floating Rate Subordinated Notes 2016 329 Subordinated Callable Notes 2016 382 3,070 1 4.65% Subordinated Fixed Rate Notes 2026 (US$1,500 million). 2 In total, the tender offers, repurchases and redemptions resulted from cash outflows of £7,885 million. 3 Comprising Series 1 (£101 million), Series 2 (£142 million), Series 3 (£110 million). 4 Comprising notes with the following coupon rates: 13% (£244 million), 10.125% (£233 million), 11.875% (£960 million), 10.75% (£466 million), 9.875% (£456 million). These securities will, in the event of the winding-up of the issuer, be subordinated to the claims of depositors and all other creditors of the issuer, other than creditors whose claims rank equally with, or are junior to, the claims of the holders of the subordinated liabilities. The subordination of specific subordinated liabilities is determined in respect of the issuer and any guarantors of that liability. The claims of holders of preference shares and preferred securities are generally junior to those of the holders of undated subordinated liabilities, which in turn are junior to the claims of holders of the dated subordinated liabilities. The subordination of the dated Enhanced Capital Notes (ECNs) ranked equally with that of the dated subordinated liabilities. The Group has not had any defaults of principal, interest or other breaches with respect to its subordinated liabilities during 2017 (2016: none). |
SHARE CAPITAL
SHARE CAPITAL | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of issued capital [text block] [Abstract] | |
Disclosure of issued capital [text block] | NOTE 39: SHARE CAPITAL (1) Authorised share capital As permitted by the Companies Act 2006, the Company removed references to authorised share capital from its articles of association at the annual general meeting on 5 June 2009. This change took effect from 1 October 2009. (2) Issued and fully paid share capital 2017 2016 2015 2017 2016 2015 Ordinary shares of 10p (formerly 25p) each At 1 January 71,373,735,357 71,373,735,357 71,373,735,357 7,138 7,138 7,138 Issued under employee share schemes 518,293,181 – – 51 – – Redesignation of limited voting ordinary shares (see below) 80,921,051 – – 8 – – At 31 December 71,972,949,589 71,373,735,357 71,373,735,357 7,197 7,138 7,138 Limited voting ordinary shares of 10p (formerly 25p) each At 1 January 80,921,051 80,921,051 80,921,051 8 8 8 Redesignation to ordinary shares (see below) (80,921,051 ) – – (8 ) – – At 31 December – 80,921,051 80,921,051 – 8 8 Total issued share capital 7,197 7,146 7,146 SHARE ISSUANCES No shares were issued in 2015 or 2016; in 2017, 518 million shares were issued in respect of employee share schemes. (3) Share capital and control There are no restrictions on the transfer of shares in the Company other than as set out in the articles of association and: – certain restrictions which may from time to time be imposed by law and regulations (for example, insider trading laws); – where directors and certain employees of the Company require the approval of the Company to deal in the Company’s shares; and – pursuant to the rules of some of the Company’s employee share plans where certain restrictions may apply while the shares are subject to the plans. Where, under an employee share plan operated by the Company, participants are the beneficial owners of shares but not the registered owners, the voting rights are normally exercised by the registered owner at the direction of the participant. Outstanding awards and options would normally vest and become exercisable on a change of control, subject to the satisfaction of any performance conditions at that time. In addition, the Company is not aware of any agreements between shareholders that may result in restrictions on the transfer of securities and/or voting rights. Information regarding significant direct or indirect holdings of shares in the Company can be found under Major shareholders and related party transactions The directors have authority to allot and issue ordinary and preference shares and to make market purchases of ordinary and preference shares as granted at the annual general meeting on 11 May 2017. The authority to issue shares and the authority to make market purchases of shares will expire at the next annual general meeting. Shareholders will be asked, at the annual general meeting, to give similar authorities. Subject to any rights or restrictions attached to any shares, on a show of hands at a general meeting of the Company every holder of shares present in person or by proxy and entitled to vote has one vote and on a poll every member present and entitled to vote has one vote for every share held. Further details regarding voting at the annual general meeting can be found in the notes to the notice of the annual general meeting. ORDINARY SHARES The holders of ordinary shares, who held 100 per cent of the total ordinary share capital at 31 December 2017, are entitled to receive the Company’s report and accounts, attend, speak and vote at general meetings and appoint proxies to exercise voting rights. Holders of ordinary shares may also receive a dividend (subject to the provisions of the Company’s articles of association) and on a winding up may share in the assets of the Company. LIMITED VOTING ORDINARY SHARES At the annual general meeting on 11 May 2017, the Company’s shareholders approved the redesignation of the 80,921,051 limited voting ordinary shares held by the Lloyds Bank Foundations as ordinary shares of 10 pence each. The redesignation took effect on 1 July 2017 and the redesignated shares now rank equally with the existing issued ordinary shares of the Company. The Company has entered into deeds of covenant with the Foundations under the terms of which the Company makes annual donations. The deeds of covenant in effect as at 31 December 2017 provide that such annual donations will cease in certain circumstances, including the Company providing nine years’ notice. Such notice has been given to the Lloyds TSB Foundation for Scotland. PREFERENCE SHARES The Company has in issue various classes of preference shares which are all classified as liabilities under IFRS which are included in note 38. |
SHARE PREMIUM ACCOUNT
SHARE PREMIUM ACCOUNT | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure For Share Premium Account Explanatory [Abstract] | |
Disclosure for share premium account [text block] | NOTE 40: SHARE PREMIUM ACCOUNT 2017 2016 2015 At 1 January 17,622 17,412 17,281 Issued under employee share schemes 12 – – Redemption of preference shares 1 – 210 131 At 31 December 17,634 17,622 17,412 1 During the year ended 31 December 2016, the Company redeemed all of its outstanding 6.267% Non-cumulative Fixed to Floating Rate Callable US Dollar Preference Shares at their combined sterling equivalent par value of £210 million. These preference shares had been accounted for as subordinated liabilities. On redemption an amount of £210 million was transferred from the distributable merger reserve to the share premium account (2015: £131 million in respect of the redemption of the outstanding 6.0884% Non-cumulative Fixed to Floating Rate Preference Shares and 5.92% Non-cumulative Fixed to Floating Rate Preference Shares). |
OTHER RESERVES
OTHER RESERVES | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of reserves within equity [text block] [Abstract] | |
Disclosure of reserves within equity [text block] | NOTE 41: OTHER RESERVES 2017 2016 2015 Other reserves comprise: Merger reserve 7,766 7,766 7,976 Capital redemption reserve 4,115 4,115 4,115 Revaluation reserve in respect of available-for-sale financial assets 685 759 (438 ) Cash flow hedging reserve 1,405 2,136 727 Foreign currency translation reserve (156 ) (124 ) (120 ) At 31 December 13,815 14,652 12,260 The merger reserve primarily comprises the premium on shares issued on 13 January 2009 under the placing and open offer and shares issued on 16 January 2009 on the acquisition of HBOS plc. The capital redemption reserve represents transfers from distributable reserve in accordance with companies’ legislation upon the redemption of ordinary and preference share capital. The revaluation reserve in respect of available-for-sale financial assets represents the cumulative after tax unrealised change in the fair value of financial assets classified as available-for-sale since initial recognition; in the case of available-for-sale financial assets obtained on acquisitions of businesses, since the date of acquisition; and in the case of transferred assets that were previously held at amortised cost, by reference to that amortised cost. The cash flow hedging reserve represents the cumulative after tax gains and losses on effective cash flow hedging instruments that will be reclassified to the income statement in the periods in which the hedged item affects profit or loss. The foreign currency translation reserve represents the cumulative after-tax gains and losses on the translation of foreign operations and exchange differences arising on financial instruments designated as hedges of the Group’s net investment in foreign operations. 2017 2016 2015 Merger reserve At 1 January 7,766 7,976 8,107 Redemption of preference shares (note 40) – (210 ) (131 ) At 31 December 7,766 7,766 7,976 Movements in other reserves were as follows: 2017 2016 2015 Revaluation reserve in respect of available-for-sale financial assets At 1 January 759 (438 ) (67 ) Adjustment on transfer from held-to-maturity portfolio – 1,544 – Deferred tax – (417 ) – – 1,127 – Change in fair value of available-for-sale financial assets 303 356 (318 ) Deferred tax (26 ) (25 ) (18 ) Current tax (4 ) (3 ) 2 273 328 (334 ) Income statement transfers: Disposals (note 9) (446 ) (575 ) (51 ) Deferred tax 93 196 3 Current tax – (52 ) (1 ) (353 ) (431 ) (49 ) Impairment 6 173 4 Deferred tax – – 8 6 173 12 At 31 December 685 759 (438 ) 2017 2016 2015 £m £m £m Cash flow hedging reserve At 1 January 2,136 727 1,139 Change in fair value of hedging derivatives (363 ) 2,432 537 Deferred tax 121 (610 ) (186 ) (242 ) 1,822 351 Income statement transfers (note 5) (651 ) (557 ) (956 ) Deferred tax 162 144 193 (489 ) (413 ) (763 ) At 31 December 1,405 2,136 727 2017 2016 2015 £m £m £m Foreign currency translation reserve At 1 January (124 ) (120 ) (78 ) Currency translation differences arising in the year (21 ) (110 ) (59 ) Foreign currency gains on net investment hedges (tax: £nil) (11 ) 106 17 At 31 December (156 ) (124 ) (120 ) |
RETAINED PROFITS
RETAINED PROFITS | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Retained Profits [Abstract] | |
Disclosure of Retained Profits [Text Block] | NOTE 42: RETAINED PROFITS 2017 2016 2015 At 1 January 3,250 4,416 5,692 Profit for the year 3,807 2,063 860 Dividends paid 1 (2,284 ) (2,014 ) (1,070 ) Distributions on other equity instruments (net of tax) (313 ) (321 ) (314 ) Post-retirement defined benefit scheme remeasurements 482 (1,028 ) (215 ) Gains and losses attributable to own credit risk (net of tax) 2 (40 ) – – Movement in treasury shares (411 ) (175 ) (816 ) Value of employee services: Share option schemes 82 141 107 Other employee award schemes 332 168 172 At 31 December 4,905 3,250 4,416 1 Net of a credit in respect of unclaimed dividends written-back in accordance with the Company’s Articles of Association. 2 During 2017 the Group derecognised, on redemption, financial liabilities on which cumulative fair value movements relating to own credit of £3 million (net of tax) had been recognised directly in retained profits. Retained profits are stated after deducting £611 million (2016: £495 million; 2015: £740 million) representing 861 million (2016: 730 million; 2015: 943 million) treasury shares held. The payment of dividends by subsidiaries and the ability of members of the Group to lend money to other members of the Group may be subject to regulatory or legal restrictions, the availability of reserves and the financial and operating performance of the entity. Details of such restrictions and the methods adopted by the Group to manage the capital of its subsidiaries are provided under Capital risk |
OTHER EQUITY INSTRUMENTS
OTHER EQUITY INSTRUMENTS | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Other Equity Instruments Explanatory [Abstract] | |
Disclosure of Other Equity Instruments [text block] | NOTE 43: OTHER EQUITY INSTRUMENTS 2017 2016 2015 At 1 January and 31 December 5,355 5,355 5,355 The AT1 securities are Fixed Rate Resetting Perpetual Subordinated Contingent Convertible Securities with no fixed maturity or redemption date. The principal terms of the AT1 securities are described below: – The securities rank behind the claims against Lloyds Banking Group plc of (a) unsubordinated creditors, (b) claims which are, or are expressed to be, subordinated to the claims of unsubordinated creditors of Lloyds Banking Group plc but not further or otherwise or (c) whose claims are, or are expressed to be, junior to the claims of other creditors of Lloyds Banking Group, whether subordinated or unsubordinated, other than those whose claims rank, or are expressed to rank, pari passu with, or junior to, the claims of the holders of the AT1 Securities in a winding-up occurring prior to the Conversion Trigger. – The securities bear a fixed rate of interest until the first call date. After the initial call date, in the event that they are not redeemed, the AT1 securities will bear interest at rates fixed periodically in advance for five year periods based on market rates. – Interest on the securities will be due and payable only at the sole discretion of Lloyds Banking Group plc, and Lloyds Banking Group plc may at any time elect to cancel any Interest Payment (or any part thereof) which would otherwise be payable on any Interest Payment Date. There are also certain restrictions on the payment of interest as specified in the terms. – The securities are undated and are repayable, at the option of Lloyds Banking Group plc, in whole at the first call date, or on any fifth anniversary after the first call date. In addition, the AT1 securities are repayable, at the option of Lloyds Banking Group plc, in whole for certain regulatory or tax reasons. Any repayments require the prior consent of the PRA. – The securities convert into ordinary shares of Lloyds Banking Group plc, at a pre-determined price, should the fully loaded Common Equity Tier 1 ratio of the Group fall below 7.0 per cent. |
DIVIDENDS ON ORDINARY SHARES
DIVIDENDS ON ORDINARY SHARES | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of dividends [text block] [Abstract] | |
Disclosure of dividends [text block] | NOTE 44: DIVIDENDS ON ORDINARY SHARES The directors have recommended a final dividend, which is subject to approval by the shareholders at the Annual General Meeting, of 2.05 pence per share (2016: 1.7 pence per share; 2015: 1.5 pence per share) representing a total dividend of £1,475 million (2016: £1,212 million; 2015: £1,070 million), which will be paid on 29 May 2018. At 31 December 2016 the directors also recommended a special dividend of 0.5 pence per share (2015: 0.5 pence per share) representing a total dividend of £356 million (2015: £357 million). The financial statements do not reflect recommended dividends. Dividends paid during the year were as follows: 2017 2016 2015 2017 2016 2015 Recommended by directors at previous year end: Final dividend 1.70 1.50 0.75 1,212 1,070 535 Special dividend 0.50 0.50 – 356 357 – Interim dividend paid in the year 1.00 0.85 0.75 720 607 535 3.20 2.85 1.50 2,288 2,034 1,070 The cash cost of the dividends paid in the year was £2,284 million (2016: £2,014 million; 2015: £1,070 million), net of a credit in respect of unclaimed dividends written-back in accordance with the Company’s Articles of Association. The trustees of the following holdings of Lloyds Banking Group plc shares in relation to employee share schemes retain the right to receive dividends but have chosen to waive their entitlement to the dividends on those shares as indicated: the Lloyds Banking Group Share Incentive Plan (holding at 31 December 2017: 12,414,401 shares, 31 December 2016: 27,898,019 shares, waived rights to all dividends), the HBOS Share Incentive Plan Trust (holding at 31 December 2017: 445,625 shares, 31 December 2016: 445,625 shares, waived rights to all dividends), the Lloyds Banking Group Employee Share Ownership Trust (holding at 31 December 2017: 13,346,132 shares, 31 December 2016: 10,699,978 shares, on which it waived rights to all dividends) and Lloyds Group Holdings (Jersey) Limited (holding at 31 December 2017: 42,846 shares, 31 December 2016: 42,846 shares, waived rights to all but a nominal amount of one penny in total). |
SHARE-BASED PAYMENTS
SHARE-BASED PAYMENTS | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of share-based payment arrangements [text block] [Abstract] | |
Disclosure of share-based payment arrangements [text block] | NOTE 45: SHARE-BASED PAYMENTS Charge to the income statement The charge to the income statement is set out below: 2017 2016 2015 Deferred bonus plan 313 266 255 Executive and SAYE plans: Options granted in the year 17 16 12 Options granted in prior years 81 138 99 98 154 111 Share plans: Shares granted in the year 17 15 15 Shares granted in prior years 9 7 6 26 22 21 Total charge to the income statement 437 442 387 During the year ended 31 December 2017 the Group operated the following share-based payment schemes, all of which are equity settled. Deferred bonus plans The Group operates a number of deferred bonus plans that are equity settled. Bonuses in respect of employee performance in 2017 have been recognised in the charge in line with the proportion of the deferral period completed. Save-As-You-Earn schemes Eligible employees may enter into contracts through the Save-As-You-Earn schemes to save up to £500 per month and, at the expiry of a fixed term of three or five years, have the option to use these savings within six months of the expiry of the fixed term to acquire shares in the Group at a discounted price of no less than 80 per cent of the market price at the start of the invitation. Movements in the number of share options outstanding under the SAYE schemes are set out below: 2017 2016 Number of Weighted Number of Weighted Outstanding at 1 January 678,692,896 51.76 850,146,220 50.99 Granted 268,653,890 51.03 454,667,560 47.49 Exercised (13,119,229 ) 55.58 (401,286,043 ) 40.74 Forfeited (18,545,569 ) 51.70 (10,590,490 ) 56.02 Cancelled (41,211,075 ) 52.77 (204,238,535 ) 60.23 Expired (13,603,825 ) 56.98 (10,005,816 ) 57.08 Outstanding at 31 December 860,867,088 51.34 678,692,896 51.76 Exercisable at 31 December – – – – The weighted average share price at the time that the options were exercised during 2017 was £0.67 (2016: £0.67). The weighted average remaining contractual life of options outstanding at the end of the year was 1.4 years (2016: 2.9 years). The weighted average fair value of SAYE options granted during 2017 was £0.15 (2016: £0.13). The fair values of the SAYE options have been determined using a standard Black-Scholes model. Other share option plans LLOYDS BANKING GROUP EXECUTIVE SHARE PLAN 2003 The Plan was adopted in December 2003 and under the Plan share options may be granted to senior employees. Options under this plan have been granted specifically to facilitate recruitment and in some instances, the grant may be subject to performance conditions. The Plan is used not only to compensate new recruits for any lost share awards but also to make grants to key individuals for retention purposes with, in some instances, the grant being made subject to individual performance conditions. Options granted on 27 March 2014 under the Commercial Banking Transformation Plan (CBTP), became exercisable in March 2017 and vested at a factor of 2.1 from the original ‘on-target’ award, due to the degree to which the performance conditions were exceeded. The award was based upon the underlying profit and return on risk-weighted assets (‘RoRWA’) of Commercial Banking as at 31 December 2016. Participants are not entitled to any dividends paid during the vesting period. 2017 2016 Number of Weighted Number Weighted Outstanding at 1 January 218,962,281 Nil 221,397,597 Nil Granted 5,466,405 Nil 4,298,701 Nil Exercised (104,967,667 ) Nil (2,700,679 ) Nil Forfeited (81,883 ) Nil (3,863,477 ) Nil Lapsed (104,855,147 ) Nil (169,861 ) Nil Outstanding at 31 December 14,523,989 Nil 218,962,281 Nil Exercisable at 31 December 7,729,919 Nil 4,504,392 Nil The weighted average fair value of options granted in the year was £0.62 (2016: £0.68). The fair values of options granted have been determined using a standard Black-Scholes model. The weighted average share price at the time that the options were exercised during 2017 was £0.69 (2016: £0.64). The weighted average remaining contractual life of options outstanding at the end of the year was 4.9 years (2016: 5.1 years). Other share plans LLOYDS BANKING GROUP LONG-TERM INCENTIVE PLAN The Long-Term Incentive Plan (LTIP) introduced in 2006 is aimed at delivering shareholder value by linking the receipt of shares to an improvement in the performance of the Group over a three year period. Awards are made within limits set by the rules of the Plan, with the limits determining the maximum number of shares that can be awarded equating to three times annual salary. In exceptional circumstances this may increase to four times annual salary. For the 2015 and 2016 LTIPs participants may be entitled to any dividends paid during the vesting period if the performance conditions are met. An amount equal in value to any dividends paid between the award date and the date the Remuneration Committee determine that the performance conditions were met may be paid, based on the number of shares that vest. The Remuneration Committee will determine if any dividends are to be paid in cash or in shares. Details of the performance conditions for the plan are provided in the Directors’ remuneration report. At the end of the performance period for the 2014 grant, the targets had not been fully met and therefore these awards vested in 2017 at a rate of 55 per cent. 2017 Number of shares 2016 Number of shares Outstanding at 1 January 358,228,028 398,066,746 Granted 139,812,788 132,194,032 Vested (57,406,864 ) (140,879,465 ) Forfeited (73,268,966 ) (33,713,900 ) Dividend award 3,439,929 2,560,615 Outstanding at 31 December 370,804,915 358,228,028 Awards in respect of the 2015 grant will vest in 2018 at a rate of 66.3 per cent. The weighted average fair value of awards granted in the year was £0.57 (2016: £0.64). The fair value calculations at 31 December 2017 for grants made in the year, using Black-Scholes models and Monte Carlo simulation, are based on the following assumptions: Save-As-You-Earn Executive LTIP Weighted average risk-free interest rate 0.59% 0.18% 0.22% Weighted average expected life 3.3 years 1.9 years 3.6 years Weighted average expected volatility 29% 30% 31% Weighted average expected dividend yield 4.0% 4.0% 0.0% Weighted average share price £0.68 £0.67 £0.68 Weighted average exercise price £0.51 nil nil Expected volatility is a measure of the amount by which the Group’s shares are expected to fluctuate during the life of an option. The expected volatility is estimated based on the historical volatility of the closing daily share price over the most recent period that is commensurate with the expected life of the option. The historical volatility is compared to the implied volatility generated from market traded options in the Group’s shares to assess the reasonableness of the historical volatility and adjustments made where appropriate. Share Incentive Plan FREE SHARES An award of shares may be made annually to employees up to a maximum of £3,000. The shares awarded are held in trust for a mandatory period of three years on the employee’s behalf, during which period the employee is entitled to any dividends paid on such shares. The award is subject to a non-market based condition. If an employee leaves the Group within this three year period for other than a ‘good’ reason, all of the shares awarded will be forfeited. On 10 May 2017, the Group made an award of £200 of shares to all eligible employees. The number of shares awarded was 21,566,047, with an average fair value of 0.69 based on the market price at the date of award. MATCHING SHARES The Group undertakes to match shares purchased by employees up to the value of £45 per month; these matching shares are held in trust for a mandatory period of three years on the employee’s behalf, during which period the employee is entitled to any dividends paid on such shares. The award is subject to a non-market based condition: if an employee leaves within this three year period for other than a ‘good’ reason, 100 per cent of the matching shares are forfeited. Similarly if the employees sell their purchased shares within three years, their matching shares are forfeited. The number of shares awarded relating to matching shares in 2017 was 32,025,497 (2016: 35,956,224), with an average fair value of £0.67 (2016: £0.61), based on market prices at the date of award. FIXED SHARE AWARDS Fixed share awards were introduced in 2014 in order to ensure that total fixed remuneration is commensurate with role and to provide a competitive reward package for certain Lloyds Banking Group employees, with an appropriate balance of fixed and variable remuneration, in line with regulatory requirements. The fixed share awards are delivered in Lloyds Banking Group shares, released over five years with 20 per cent being released each year following the year of award. The number of shares purchased in 2017 was 9,313,314 (2016: 10,031,272). The fixed share award is not subject to any performance conditions, performance adjustment or clawback. On an employee leaving the Group, there is no change to the timeline for which shares will become unrestricted. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of related party [text block] [Abstract] | |
Disclosure of related party [text block] | NOTE 46: RELATED PARTY TRANSACTIONS Key management personnel Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of an entity; the Group’s key management personnel are the members of the Lloyds Banking Group plc Group Executive Committee together with its Non-Executive Directors. The table below details, on an aggregated basis, key management personnel compensation: 2017 £m 2016 £m 2015 £m Compensation Salaries and other short-term benefits 13 17 14 Post-employment benefits – – – Share-based payments 22 23 18 Total compensation 35 40 32 Aggregate contributions in respect of key management personnel to defined contribution pension schemes were £0.05 million (2016: £0.1 million; 2015: £0.1 million). 2017 million 2016 million 2015 million Share option plans At 1 January 3 9 13 Granted, including certain adjustments (includes entitlements of appointed key management personnel) – 3 3 Exercised/lapsed (includes entitlements of former key management personnel) (2 ) (9 ) (7 ) At 31 December 1 3 9 2017 million 2016 million 2015 million Share plans At 1 January 65 82 102 Granted, including certain adjustments (includes entitlements of appointed key management personnel) 37 29 37 Exercised/lapsed (includes entitlements of former key management personnel) (20 ) (46 ) (57 ) At 31 December 82 65 82 The tables below detail, on an aggregated basis, balances outstanding at the year end and related income and expense, together with information relating to other transactions between the Group and its key management personnel: 2017 £m 2016 £m 2015 £m Loans At 1 January 4 5 3 Advanced (includes loans of appointed key management personnel) 1 3 4 Repayments (includes loans of former key management personnel) (3 ) (4 ) (2 ) At 31 December 2 4 5 The loans are on both a secured and unsecured basis and are expected to be settled in cash. The loans attracted interest rates of between 6.45 per cent and 23.95 per cent in 2017 (2016: 2.49 per cent and 23.95 per cent; 2015: 3.99 per cent and 23.95 per cent). No provisions have been recognised in respect of loans given to key management personnel (2016 and 2015: £nil). 2017 £m 2016 £m 2015 £m Deposits At 1 January 12 13 16 Placed (includes deposits of appointed key management personnel) 41 41 58 Withdrawn (includes deposits of former key management personnel) (33 ) (42 ) (61 ) At 31 December 20 12 13 Deposits placed by key management personnel attracted interest rates of up to 4.0 per cent (2016: 4.0 per cent; 2015: 4.7 per cent). At 31 December 2017, the Group did not provide any guarantees in respect of key management personnel (2016 and 2015: none). At 31 December 2017, transactions, arrangements and agreements entered into by the Group’s banking subsidiaries with directors and connected persons included amounts outstanding in respect of loans and credit card transactions of £0.01 million with 3 directors and 2 connected persons (2016: £0.4 million with five directors and two connected persons; 2015: £1 million with four directors and six connected persons). Subsidiaries In accordance with IFRS 10 Consolidated financial statements, transactions and balances with subsidiaries have been eliminated on consolidation. PENSION FUNDS The Group provides banking and some investment management services to certain of its pension funds. At 31 December 2017, customer deposits of £337 million (2016: £171 million) and investment and insurance contract liabilities of £307 million (2016: £406 million) related to the Group’s pension funds. COLLECTIVE INVESTMENT VEHICLES The Group manages 134 (2016: 139) collective investment vehicles, such as Open Ended Investment Companies (OEICs) and of these 83 (2016: 83) are consolidated. The Group invested £418 million (2016: £265 million) and redeemed £616 million (2016: £826 million) in the unconsolidated collective investment vehicles during the year and had investments, at fair value, of £2,328 million (2016: £2,405 million) at 31 December. The Group earned fees of £133 million from the unconsolidated collective investment vehicles during 2017 (2016: £192 million). JOINT VENTURES AND ASSOCIATES At 31 December 2017 there were loans and advances to customers of £123 million (2016: £173 million) outstanding and balances within customer deposits of £9 million (2016: £15 million) relating to joint ventures and associates. In addition to the above balances, the Group has a number of other associates held by its venture capital business that it accounts for at fair value through profit or loss. At 31 December 2017, these companies had total assets of approximately £4,661 million (2016: £4,712 million), total liabilities of approximately £5,228 million (2016: £5,033 million) and for the year ended 31 December 2017 had turnover of approximately £4,601 million (2016: £4,401 million) and made a loss of approximately £87 million (2016: net loss of £27 million). In addition, the Group has provided £1,226 million (2016: £1,550 million) of financing to these companies on which it received £81 million (2016: £127 million) of interest income in the year. |
CONTINGENT LIABILITIES AND COMM
CONTINGENT LIABILITIES AND COMMITMENTS | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of commitments and contingent liabilities [text block] [Abstract] | |
Disclosure of commitments and contingent liabilities [text block] | NOTE 47: CONTINGENT LIABILITIES AND COMMITMENTS Interchange fees With respect to multi-lateral interchange fees (MIFs), the Group is not directly involved in the ongoing investigations and litigation (as described below) which involve card schemes such as Visa and MasterCard. However, the Group is a member of Visa and MasterCard and other card schemes. – The European Commission continues to pursue competition investigations against MasterCard and Visa probing, amongst other things, MIFs paid in respect of cards issued outside the EEA. – Litigation brought by retailers continues in the English Courts against both Visa and MasterCard. – Any ultimate impact on the Group of the above investigations and litigation against Visa and MasterCard remains uncertain at this time. Visa Inc completed its acquisition of Visa Europe on 21 June 2016. As part of this transaction, the Group and certain other UK banks also entered into a Loss Sharing Agreement (LSA) with Visa Inc, which clarifies the allocation of liabilities between the parties should the litigation referred to above result in Visa Inc being liable for damages payable by Visa Europe. The maximum amount of liability to which the Group may be subject under the LSA is capped at the cash consideration which was received by the Group at completion. Visa Inc may also have recourse to a general indemnity, previously in place under Visa Europe’s Operating Regulations, for damages claims concerning inter or intra-regional MIF setting activities. LIBOR and other trading rates In July 2014, the Group announced that it had reached settlements totalling £217 million (at 30 June 2014 exchange rates) to resolve with UK and US federal authorities legacy issues regarding the manipulation several years ago of Group companies’ submissions to the British Bankers’ Association (BBA) London Interbank Offered Rate (LIBOR) and Sterling Repo Rate. The Group continues to cooperate with various other government and regulatory authorities, including the Serious Fraud Office, the Swiss Competition Commission, and a number of US State Attorneys General, in conjunction with their investigations into submissions made by panel members to the bodies that set LIBOR and various other interbank offered rates. Certain Group companies, together with other panel banks, have also been named as defendants in private lawsuits, including purported class action suits, in the US in connection with their roles as panel banks contributing to the setting of US Dollar, Japanese Yen and Sterling LIBOR and the Australian BBSW Reference Rate. Certain of the plaintiffs’ claims, including those in connection with USD and JPY LIBOR, have been dismissed by the US Federal Court for Southern District of New York, and decisions are awaited on the Group’s motions to dismiss the Sterling LIBOR and BBSW claims. The decisions leading to the Group’s dismissal from the USD LIBOR claims are subject to two appeals; the first took place on 25 September 2017 and a decision is expected in the first quarter of 2018, and the second is expected to take place in the first half of 2018. The decisions leading to the Group’s dismissal from the JPY LIBOR claims are not presently subject to appeal. Certain Group companies are also named as defendants in: (i) UK based claims; and (ii) in a Dutch class action, each raising LIBOR manipulation allegations. A number of the claims against the Group in relation to the alleged mis-sale of Interest Rate Hedging Products also include allegations of LIBOR manipulation. It is currently not possible to predict the scope and ultimate outcome on the Group of the various outstanding regulatory investigations not encompassed by the settlements, any private lawsuits or any related challenges to the interpretation or validity of any of the Group’s contractual arrangements, including their timing and scale. UK shareholder litigation In August 2014, the Group and a number of former directors were named as defendants in a claim by a number of claimants who held shares in Lloyds TSB Group plc (LTSB) prior to the acquisition of HBOS plc, alleging breaches of duties in relation to information provided to shareholders in connection with the acquisition and the recapitalisation of LTSB. The defendants refute all claims made. A trial commenced in the English High Court on 18 October 2017 and is scheduled to conclude in the first quarter of 2018 with judgment to follow. It is currently not possible to determine the ultimate impact on the Group (if any). Financial Services Compensation Scheme Following the default of a number of deposit takers in 2008, the Financial Services Compensation Scheme (FSCS) borrowed funds from HM Treasury to meet the compensation costs for customers of those firms. In June 2017, the FSCS announced that following the sale of certain Bradford & Bingley mortgage assets, the principal balance outstanding on the HM Treasury loan was £4,678 million (31 December 2016: £15,655 million). Although it is anticipated that the substantial majority of this loan will be repaid from funds the FSCS receives from asset sales, surplus cash flow or other recoveries in relation to the assets of the firms that defaulted, any shortfall will be funded by deposit-taking participants, including the Group, of the FSCS. The amount of future levies payable by the Group depends on a number of factors, principally, the amounts recovered by the FSCS from asset sales. Tax authorities The Group has an open matter in relation to a claim for group relief of losses incurred in its former Irish banking subsidiary, which ceased trading on 31 December 2010. In 2013 HMRC informed the Group that their interpretation of the UK rules which allow the offset of such losses denies the claim. If HMRC’s position is found to be correct management estimate that this would result in an increase in current tax liabilities of approximately £650 million (including interest) and a reduction in the Group’s deferred tax asset of approximately £350 million. The Group does not agree with HMRC’s position and, having taken appropriate advice, does not consider that this is a case where additional tax will ultimately fall due. There are a number of other open matters on which the Group is in discussion with HMRC (including the tax treatment of certain costs arising from the divestment of TSB Banking Group plc), none of which is expected to have a material impact on the financial position of the Group. Residential mortgage repossessions In August 2014, the Northern Ireland High Court handed down judgment in favour of the borrowers in relation to three residential mortgage test cases concerning certain aspects of the Group’s practice with respect to the recalculation of contractual monthly instalments of customers in arrears. The FCA is actively engaged with the industry in relation to these considerations and has published Guidance on the treatment of customers with mortgage payment shortfalls. The Guidance covers remediation for mortgage customers who may have been affected by the way firms calculate these customers’ monthly mortgage instalments. The Group is now determining its detailed approach to implementation of the Guidance and will contact affected customers during 2018. Mortgage arrears handling activities On 26 May 2016, the Group was informed that an enforcement team at the FCA had commenced an investigation in connection with the Group’s mortgage arrears handling activities. This investigation is ongoing and it is currently not possible to make a reliable assessment of the liability, if any, that may result from the investigation. Other legal actions and regulatory matters In addition, during the ordinary course of business the Group is subject to other complaints and threatened or actual legal proceedings (including class or group action claims) brought by or on behalf of current or former employees, customers, investors or other third parties, as well as legal and regulatory reviews, challenges, investigations and enforcement actions, both in the UK and overseas. All such material matters are periodically reassessed, with the assistance of external professional advisers where appropriate, to determine the likelihood of the Group incurring a liability. In those instances where it is concluded that it is more likely than not that a payment will be made, a provision is established to management’s best estimate of the amount required at the relevant balance sheet date. In some cases it will not be possible to form a view, for example because the facts are unclear or because further time is needed properly to assess the merits of the case, and no provisions are held in relation to such matters. In these circumstances, specific disclosure in relation to a contingent liability will be made where material. However the Group does not currently expect the final outcome of any such case to have a material adverse effect on its financial position, operations or cash flows. 2017 £m 2016 £m Contingent liabilities Acceptances and endorsements 71 21 Other: Other items serving as direct credit substitutes 740 779 Performance bonds and other transaction-related contingencies 2,300 2,237 3,040 3,016 Total contingent liabilities 3,111 3,037 The contingent liabilities of the Group arise in the normal course of its banking business and it is not practicable to quantify their future financial effect. 2017 £m 2016 £m Commitments Forward asset purchases and forward deposits placed 384 648 Undrawn formal standby facilities, credit lines and other commitments to lend: Less than 1 year original maturity: Mortgage offers made 11,156 10,749 Other commitments 81,883 62,697 93,039 73,446 1 year or over original maturity 36,386 40,074 Total commitments 129,809 114,168 Of the amounts shown above in respect of undrawn formal standby facilities, credit lines and other commitments to lend, £60,126 million (2016: £63,203 million) was irrevocable. Operating lease commitments Where a Group company is the lessee the future minimum lease payments under non-cancellable premises operating leases are as follows: 2017 2016 £m Not later than 1 year 275 264 Later than 1 year and not later than 5 years 845 855 Later than 5 years 934 944 Total operating lease commitments 2,054 2,063 Operating lease payments represent rental payable by the Group for certain of its properties. Some of these operating lease arrangements have renewal options and rent escalation clauses, although the effect of these is not material. No arrangements have been entered into for contingent rental payments. Capital commitments Excluding commitments in respect of investment property (note 26), capital expenditure contracted but not provided for at 31 December 2017 amounted to £444 million (2016: £543 million). Of this amount, £440 million (2016: £541 million) related to assets to be leased to customers under operating leases. The Group’s management is confident that future net revenues and funding will be sufficient to cover these commitments. |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of financial instruments [text block] [Abstract] | |
Disclosure of financial instruments [text block] | NOTE 48: FINANCIAL INSTRUMENTS (1) Measurement basis of financial assets and liabilities The accounting policies in note 2 describe how different classes of financial instruments are measured, and how income and expenses, including fair value gains and losses, are recognised. The following table analyses the carrying amounts of the financial assets and liabilities by category and by balance sheet heading. At fair value Derivatives Held for Designated Available- Loans and Held at Insurance Total At 31 December 2017 Financial assets Cash and balances at central banks – – – – – 58,521 – 58,521 Items in the course of collection from banks – – – – – 755 – 755 Trading and other financial assets at fair value through profit or loss – 42,236 120,642 – – – – 162,878 Derivative financial instruments 1,881 23,953 – – – – – 25,834 Loans and receivables: Loans and advances to banks – – – – 6,611 – – 6,611 Loans and advances to customers – – – – 472,498 – – 472,498 Debt securities – – – – 3,643 – – 3,643 – – – – 482,752 – – 482,752 Available-for-sale financial assets – – – 42,098 – – – 42,098 Total financial assets 1,881 66,189 120,642 42,098 482,752 59,276 – 772,838 Financial liabilities Deposits from banks – – – – – 29,804 – 29,804 Customer deposits – – – – – 418,124 – 418,124 Items in course of transmission to banks – – – – – 584 – 584 Trading and other financial liabilities at fair value through profit or loss – 43,062 7,815 – – – – 50,877 Derivative financial instruments 1,613 24,511 – – – – – 26,124 Notes in circulation – – – – – 1,313 – 1,313 Debt securities in issue – – – – – 72,450 – 72,450 Liabilities arising from insurance contracts and participating investment contracts – – – – – – 103,413 103,413 Liabilities arising from non-participating investment contracts – – – – – – 15,447 15,447 Unallocated surplus within insurance businesses – – – – – – 390 390 Subordinated liabilities – – – – – 17,922 – 17,922 Total financial liabilities 1,613 67,573 7,815 – – 540,197 119,250 736,448 At fair value Derivatives Held for Designated Available- Loans and Held at Insurance Total At 31 December 2016 Financial assets Cash and balances at central banks – – – – – 47,452 – 47,452 Items in the course of collection from banks – – – – – 706 – 706 Trading and other financial assets at fair value through profit or loss – 45,253 105,921 – – – – 151,174 Derivative financial instruments 2,712 33,426 – – – – – 36,138 Loans and receivables: Loans and advances to banks – – – – 26,902 – – 26,902 Loans and advances to customers – – – – 457,958 – – 457,958 Debt securities – – – – 3,397 – – 3,397 – – – – 488,257 – – 488,257 Available-for-sale financial assets – – – 56,524 – – – 56,524 Total financial assets 2,712 78,679 105,921 56,524 488,257 48,158 – 780,251 Financial liabilities Deposits from banks – – – – – 16,384 – 16,384 Customer deposits – – – – – 415,460 – 415,460 Items in course of transmission to banks – – – – – 548 – 548 Trading and other financial liabilities at fair value through profit or loss – 45,079 9,425 – – – – 54,504 Derivative financial instruments 1,964 32,960 – – – – – 34,924 Notes in circulation – – – – – 1,402 – 1,402 Debt securities in issue – – – – – 76,314 – 76,314 Liabilities arising from insurance contracts and participating investment contracts – – – – – – 94,390 94,390 Liabilities arising from non-participating investment contracts – – – – – – 20,112 20,112 Unallocated surplus within insurance businesses – – – – – – 243 243 Subordinated liabilities – – – – – 19,831 – 19,831 Total financial liabilities 1,964 78,039 9,425 – – 529,939 114,745 734,112 (2) Fair value measurement Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. It is a measure as at a specific date and may be significantly different from the amount which will actually be paid or received on maturity or settlement date. Wherever possible, fair values have been calculated using unadjusted quoted market prices in active markets for identical instruments held by the Group. Where quoted market prices are not available, or are unreliable because of poor liquidity, fair values have been determined using valuation techniques which, to the extent possible, use market observable inputs, but in some cases use non-market observable inputs. Valuation techniques used include discounted cash flow analysis and pricing models and, where appropriate, comparison to instruments with characteristics similar to those of the instruments held by the Group. The Group manages valuation adjustments for its derivative exposures on a net basis; the Group determines their fair values on the basis of their net exposures. In all other cases, fair values of financial assets and liabilities measured at fair value are determined on the basis of their gross exposures. The carrying amount of the following financial instruments is a reasonable approximation of fair value: cash and balances at central banks, items in the course of collection from banks, items in course of transmission to banks, notes in circulation and liabilities arising from non-participating investment contracts. Because a variety of estimation techniques are employed and significant estimates made, comparisons of fair values between financial institutions may not be meaningful. Readers of these financial statements are thus advised to use caution when using this data to evaluate the Group’s financial position. Fair value information is not provided for items that are not financial instruments or for other assets and liabilities which are not carried at fair value in the Group’s consolidated balance sheet. These items include intangible assets, such as the value of the Group’s branch network, the long-term relationships with depositors and credit card relationships; premises and equipment; and shareholders’ equity. These items are material and accordingly the Group believes that the fair value information presented does not represent the underlying value of the Group. VALUATION CONTROL FRAMEWORK The key elements of the control framework for the valuation of financial instruments include model validation, product implementation review and independent price verification. These functions are carried out by appropriately skilled risk and finance teams, independent of the business area responsible for the products. Model validation covers both qualitative and quantitative elements relating to new models. In respect of new products, a product implementation review is conducted pre- and post-trading. Pre-trade testing ensures that the new model is integrated into the Group’s systems and that the profit and loss and risk reporting are consistent throughout the trade life cycle. Post-trade testing examines the explanatory power of the implemented model, actively monitoring model parameters and comparing in-house pricing to external sources. Independent price verification procedures cover financial instruments carried at fair value. The frequency of the review is matched to the availability of independent data, monthly being the minimum. Valuation differences in breach of established thresholds are escalated to senior management. The results from independent pricing and valuation reserves are reviewed monthly by senior management. Formal committees, consisting of senior risk, finance and business management, meet at least quarterly to discuss and approve valuations in more judgemental areas, in particular for unquoted equities, structured credit, over-the-counter options and the Credit Valuation Adjustment (CVA) reserve. VALUATION OF FINANCIAL ASSETS AND LIABILITIES Assets and liabilities carried at fair value or for which fair values are disclosed have been classified into three levels according to the quality and reliability of information used to determine the fair values. LEVEL 1 Level 1 fair value measurements are those derived from unadjusted quoted prices in active markets for identical assets or liabilities. Products classified as level 1 predominantly comprise equity shares, treasury bills and other government securities. LEVEL 2 Level 2 valuations are those where quoted market prices are not available, for example where the instrument is traded in a market that is not considered to be active or valuation techniques are used to determine fair value and where these techniques use inputs that are based significantly on observable market data. Examples of such financial instruments include most over-the-counter derivatives, financial institution issued securities, certificates of deposit and certain asset-backed securities. LEVEL 3 Level 3 portfolios are those where at least one input which could have a significant effect on the instrument’s valuation is not based on observable market data. Such instruments would include the Group’s venture capital and unlisted equity investments which are valued using various valuation techniques that require significant management judgement in determining appropriate assumptions, including earnings multiples and estimated future cash flows. Certain of the Group’s asset-backed securities and derivatives, principally where there is no trading activity in such securities, are also classified as level 3. Transfers out of the level 3 portfolio arise when inputs that could have a significant impact on the instrument’s valuation become market observable after previously having been non-market observable. In the case of asset-backed securities this can arise if more than one consistent independent source of data becomes available. Conversely transfers into the portfolio arise when consistent sources of data cease to be available. (3) Financial assets and liabilities carried at fair value Critical accounting estimates and judgements The valuation techniques for level 2 and, particularly, level 3 financial instruments involve management judgement and estimates the extent of which depends on the complexity of the instrument and the availability of market observable information. In addition, in line with market practice, the Group applies credit, debit and funding valuation adjustments in determining the fair value of its uncollateralised derivative positions. A description of these adjustments is set out in this note on page F-71. Further details of the Group’s level 3 financial instruments and the sensitivity of their valuation including the effect of applying reasonably possible alternative assumptions in determining their fair value are set out below. Details about sensitivities to market risk arising from trading assets and other treasury positions can be found under Market risk (A) FINANCIAL ASSETS, EXCLUDING DERIVATIVES VALUATION HIERARCHY At 31 December 2017, the Group’s financial assets carried at fair value, excluding derivatives, totalled £204,976 million (31 December 2016: £207,698 million). The table below analyses these financial assets by balance sheet classification, asset type and valuation methodology (level 1, 2 or 3, as described on page F-66). The fair value measurement approach is recurring in nature. There were no significant transfers between level 1 and 2 during the year. VALUATION HIERARCHY Level 1 £m Level 2 £m Level 3 £m Total £m At 31 December 2017 Trading and other financial assets at fair value through profit or loss Loans and advances to customers – 29,976 – 29,976 Loans and advances to banks – 1,614 – 1,614 Debt securities: Government securities 20,268 1,729 23 22,020 Other public sector securities – 1,526 1 1,527 Bank and building society certificates of deposit – 222 – 222 Asset-backed securities: Mortgage-backed securities 3 348 49 400 Other asset-backed securities 5 229 787 1,021 Corporate and other debt securities – 18,542 1,448 19,990 20,276 22,596 2,308 45,180 Equity shares 84,694 18 1,378 86,090 Treasury and other bills 18 – – 18 Total trading and other financial assets at fair value through profit or loss 104,988 54,204 3,686 162,878 Available-for-sale financial assets Debt securities: Government securities 34,534 174 – 34,708 Bank and building society certificates of deposit – 167 – 167 Asset-backed securities: Mortgage-backed securities – 1,156 – 1,156 Other asset-backed securities – 163 92 255 Corporate and other debt securities 229 4,386 – 4,615 34,763 6,046 92 40,901 Equity shares 555 38 604 1,197 Total available-for-sale financial assets 35,318 6,084 696 42,098 Total financial assets carried at fair value, excluding derivatives 140,306 60,288 4,382 204,976 Level 1 £m Level 2 £m Level 3 £m Total £m At 31 December 2016 Trading and other financial assets at fair value through profit or loss Loans and advances to customers – 30,473 – 30,473 Loans and advances to banks – 2,606 – 2,606 Debt securities: Government securities 24,959 1,773 – 26,732 Other public sector securities – 1,279 46 1,325 Bank and building society certificates of deposit – 244 – 244 Asset-backed securities: Mortgage-backed securities – 654 53 707 Other asset-backed securities 4 1,092 442 1,538 Corporate and other debt securities 112 17,968 1,752 19,832 25,075 23,010 2,293 50,378 Equity shares 66,147 37 1,513 67,697 Treasury and other bills 20 – – 20 Total trading and other financial assets at fair value through profit or loss 91,242 56,126 3,806 151,174 Available-for-sale financial assets Debt securities: Government securities 48,542 172 – 48,714 Bank and building society certificates of deposit – 142 – 142 Asset-backed securities: Mortgage-backed securities – 108 – 108 Other asset-backed securities – 184 133 317 Corporate and other debt securities 107 5,923 – 6,030 48,649 6,529 133 55,311 Equity shares 435 17 761 1,213 Total available-for-sale financial assets 49,084 6,546 894 56,524 Total financial assets carried at fair value, excluding derivatives 140,326 62,672 4,700 207,698 MOVEMENTS IN LEVEL 3 PORTFOLIO The table below analyses movements in level 3 financial assets, excluding derivatives, carried at fair value (recurring measurement). 2017 2016 Trading and Available- Total level 3 Trading and Available- Total level 3 At 1 January 3,806 894 4,700 5,116 684 5,800 Exchange and other adjustments (1 ) (24 ) (25 ) 8 12 20 Gains recognised in the income statement within other income 202 – 202 437 – 437 (Losses) gains recognised in other comprehensive income within the revaluation reserve in respect of available-for-sale financial assets – (117 ) (117 ) – 312 312 Purchases 774 41 815 833 258 1,091 Sales (1,005 ) (61 ) (1,066 ) (2,597 ) (527 ) (3,124 ) Transfers into the level 3 portfolio 152 2 154 186 155 341 Transfers out of the level 3 portfolio (242 ) (39 ) (281 ) (177 ) – (177 ) At 31 December 3,686 696 4,382 3,806 894 4,700 Gains recognised in the income statement, within other income, relating to the change in fair value of those assets held at 31 December 125 – 125 642 – 642 VALUATION METHODOLOGY FOR FINANCIAL ASSETS, EXCLUDING DERIVATIVES LOANS AND ADVANCES TO CUSTOMERS AND BANKS These assets are principally reverse repurchase agreements. The fair value of these assets is determined using discounted cash flow techniques. The discount rates are derived from observable repo curves specific to the type of security purchased under the reverse repurchase agreement. DEBT SECURITIES Debt securities measured at fair value and classified as level 2 are valued by discounting expected cash flows using an observable credit spread applicable to the particular instrument. Where there is limited trading activity in debt securities, the Group uses valuation models, consensus pricing information from third party pricing services and broker or lead manager quotes to determine an appropriate valuation. Debt securities are classified as level 3 if there is a significant valuation input that cannot be corroborated through market sources or where there are materially inconsistent values for an input. Asset classes classified as level 3 mainly comprise certain collateralised loan obligations and collateralised debt obligations. EQUITY INVESTMENTS Unlisted equity and fund investments are valued using different techniques in accordance with the Group’s valuation policy and International Private Equity and Venture Capital Guidelines. Depending on the business sector and the circumstances of the investment, unlisted equity valuations are based on earnings multiples, net asset values or discounted cash flows. – A number of earnings multiples are used in valuing the portfolio including price earnings, earnings before interest and tax and earnings before interest, tax, depreciation and amortisation. The particular multiple selected being appropriate for the type of business being valued and is derived by reference to the current market-based multiple. Consideration is given to the risk attributes, growth prospects and financial gearing of comparable businesses when selecting an appropriate multiple. – Discounted cash flow valuations use estimated future cash flows, usually based on management forecasts, with the application of appropriate exit yields or terminal multiples and discounted using rates appropriate to the specific investment, business sector or recent economic rates of return. Recent transactions involving the sale of similar businesses may sometimes be used as a frame of reference in deriving an appropriate multiple. – For fund investments the most recent capital account value calculated by the fund manager is used as the basis for the valuation and adjusted, if necessary, to align valuation techniques with the Group’s valuation policy. Unlisted equity investments and investments in property partnerships held in the life assurance funds are valued using third party valuations. Management take account of any pertinent information, such as recent transactions and information received on particular investments, to adjust the third party valuations where necessary. (B) FINANCIAL LIABILITIES, EXCLUDING DERIVATIVES VALUATION HIERARCHY At 31 December 2017, the Group’s financial liabilities carried at fair value, excluding derivatives, comprised its trading and other financial liabilities at fair value through profit or loss and totalled £50,877 million (31 December 2016: £54,504 million). (Financial guarantees are also recognised at fair value, on initial recognition, and are classified as level 3; but the balance is not material). The table below analyses these financial liabilities by balance sheet classification and valuation methodology (level 1, 2 or 3, as described on page F-66). The fair value measurement approach is recurring in nature. There were no significant transfers between level 1 and 2 during the year. Level 1 Level 2 Level 3 Total At 31 December 2017 Trading and other financial liabilities at fair value through profit or loss Liabilities held at fair value through profit or loss 3 7,812 – 7,815 Trading liabilities: Liabilities in respect of securities sold under repurchase agreements – 41,378 – 41,378 Other deposits – 381 – 381 Short positions in securities 1,106 197 – 1,303 1,106 41,956 – 43,062 Total financial liabilities carried at fair value, excluding derivatives 1,109 49,768 – 50,877 At 31 December 2016 Trading and other financial liabilities at fair value through profit or loss Liabilities held at fair value through profit or loss – 9,423 2 9,425 Trading liabilities: Liabilities in respect of securities sold under repurchase agreements – 42,067 – 42,067 Other deposits – 530 – 530 Short positions in securities 2,417 65 – 2,482 2,417 42,662 – 45,079 Total financial liabilities carried at fair value, excluding derivatives 2,417 52,085 2 54,504 The table below analyses movements in the level 3 financial liabilities portfolio, excluding derivatives. There were no transfers into or out of level 3 during 2016 or 2017. 2017 2016 At 1 January 2 1 Losses (gains) recognised in the income statement within other income (2 ) 1 Redemptions – – At 31 December – 2 Gains recognised in the income statement, within other income, relating to the change in fair value of those liabilities held at 31 December – 1 VALUATION METHODOLOGY FOR FINANCIAL LIABILITIES, EXCLUDING DERIVATIVES LIABILITIES HELD AT FAIR VALUE THROUGH PROFIT OR LOSS These principally comprise debt securities in issue which are classified as level 2 and their fair value is determined using techniques whose inputs are based on observable market data. The carrying amount of the securities is adjusted to reflect the effect of changes in own credit spreads. From 1 January 2017, the resulting gain or loss is recognised in other comprehensive income (see note 1). At 31 December 2017, the own credit adjustment arising from the fair valuation of £7,812 million (2016: £9,423 million) of the Group’s debt securities in issue designated at fair value through profit or loss resulted in a loss of £55 million, recognised in other comprehensive income (2016: loss of £28 million, recognised in the income statement). TRADING LIABILITIES IN RESPECT OF SECURITIES SOLD UNDER REPURCHASE AGREEMENTS The fair value of these liabilities is determined using discounted cash flow techniques. The discount rates are derived from observable repo curves specific to the type of security sold under the repurchase agreement. (C) DERIVATIVES All of the Group’s derivative assets and liabilities are carried at fair value. At 31 December 2017, such assets totalled £25,834 million (31 December 2016: £36,138 million) and liabilities totalled £26,124 million (31 December 2016: £34,924 million). The table below analyses these derivative balances by valuation methodology (level 1, 2 or 3, as described on page F-66). The fair value measurement approach is recurring in nature. There were no significant transfers between level 1 and level 2 during the year. 2017 2016 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Derivative assets 246 24,532 1,056 25,834 270 34,469 1,399 36,138 Derivative liabilities (587 ) (24,733 ) (804 ) (26,124 ) (358 ) (33,606 ) (960 ) (34,924 ) Where the Group’s derivative assets and liabilities are not traded on an exchange, they are valued using valuation techniques, including discounted cash flow and options pricing models, as appropriate. The types of derivatives classified as level 2 and the valuation techniques used include: – Interest rate swaps which are valued using discounted cash flow models; the most significant inputs into those models are interest rate yield curves which are developed from publicly quoted rates. – Foreign exchange derivatives that do not contain options which are priced using rates available from publicly quoted sources. – Credit derivatives which are valued using standard models with observable inputs, except for the items classified as level 3, which are valued using publicly available yield and credit default swap (CDS) curves. – Less complex interest rate and foreign exchange option products which are valued using volatility surfaces developed from publicly available interest rate cap, interest rate swaption and other option volatilities; option volatility skew information is derived from a market standard consensus pricing service. For more complex option products, the Group calibrates its models using observable at-the-money data; where necessary, the Group adjusts for out-of-the-money positions using a market standard consensus pricing service. Complex interest rate and foreign exchange products where there is significant dispersion of consensus pricing or where implied funding costs are material and unobservable are classified as level 3. Where credit protection, usually in the form of credit default swaps, has been purchased or written on asset-backed securities, the security is referred to as a negative basis asset-backed security and the resulting derivative assets or liabilities have been classified as either level 2 or level 3 according to the classification of the underlying asset-backed security. Certain unobservable inputs are used to calculate CVA, FVA, and own credit adjustments, but are not considered significant in determining the classification of the derivative and debt portfolios. Consequently, those inputs do not form part of the Level 3 sensitivities presented. The table below analyses movements in level 3 derivative assets and liabilities carried at fair value. 2017 2016 Derivative Derivative Derivative Derivative At 1 January 1,399 (960 ) 1,469 (723 ) Exchange and other adjustments 24 (20 ) 74 (53 ) Losses (gains) recognised in the income statement within other income (208 ) 215 220 (299 ) Purchases (additions) 103 (18 ) 24 (13 ) (Sales) redemptions (79 ) 53 (91 ) 128 Derecognised pursuant to tender offers and redemptions in respect of Enhanced Capital Notes – – (476 ) – Transfers into the level 3 portfolio 33 (74 ) 216 – Transfers out of the level 3 portfolio (216 ) – (37 ) – At 31 December 1,056 (804 ) 1,399 (960 ) Gains (losses) recognised in the income statement, within other income, relating to the change in fair value of those assets or liabilities held at 31 December (208 ) 213 284 (262 ) DERIVATIVE VALUATION ADJUSTMENTS Derivative financial instruments which are carried in the balance sheet at fair value are adjusted where appropriate to reflect credit risk, market liquidity and other risks. (I) UNCOLLATERALISED DERIVATIVE VALUATION ADJUSTMENTS, EXCLUDING MONOLINE COUNTERPARTIES The following table summarises the movement on this valuation adjustment account during 2016 and 2017: 2017 2016 At 1 January 744 598 Income statement charge (credit) (260 ) 163 Transfers 37 (17 ) At 31 December 521 744 Represented by: 2017 2016 Credit Valuation Adjustment 408 685 Debit Valuation Adjustment (37 ) (123 ) Funding Valuation Adjustment 150 182 521 744 Credit and Debit Valuation Adjustments (CVA and DVA) are applied to the Group’s over-the-counter derivative exposures with counterparties that are not subject to standard interbank collateral arrangements. These exposures largely relate to the provision of risk management solutions for corporate customers within the Commercial Banking division. A CVA is taken where the Group has a positive future uncollateralised exposure (asset). A DVA is taken where the Group has a negative future uncollateralised exposure (liability). These adjustments reflect interest rates and expectations of counterparty creditworthiness and the Group’s own credit spread respectively. The CVA is sensitive to: – the current size of the mark-to-market position on the uncollateralised asset; – expectations of future market volatility of the underlying asset; and – expectations of counterparty creditworthiness. In circumstances where exposures to a counterparty become impaired, any associated derivative valuation adjustment is transferred and assessed for specific loss alongside other non-derivative assets and liabilities that the counterparty may have with the Group. Market Credit Default Swap (CDS) spreads are used to develop the probability of default for quoted counterparties. For unquoted counterparties, internal credit ratings and market sector CDS curves and recovery rates are used. The Loss Given Default (LGD) is based on market recovery rates and internal credit assessments. The combination of a one notch deterioration in the credit rating of derivative counterparties and a ten per cent increase in LGD increases the CVA by £82 million. Current market value is used to estimate the projected exposure for products not supported by the model, which are principally complex interest rate options that are traded in very low volumes. For these, the CVA is calculated on an add-on basis (although no such adjustment was required at 31 December 2017). The DVA is sensitive to: – the current size of the mark-to-market position on the uncollateralised liability; – expectations of future market volatility of the underlying liability; and – the Group’s own CDS spread. A one per cent rise in the CDS spread would lead to an increase in the DVA of £96 million to £133 million. The risk exposures that are used for the CVA and DVA calculations are strongly influenced by interest rates. Due to the nature of the Group’s business the CVA/ DVA exposures tend to be on average the same way around such that the valuation adjustments fall when interest rates rise. A one per cent rise in interest rates would lead to a £186 million fall in the overall valuation adjustment to £185 million. The CVA model used by the Group does not assume any correlation between the level of interest rates and default rates. The Group has also recognised a Funding Valuation Adjustment to adjust for the net cost of funding uncollateralised derivative positions. This adjustment is calculated on the expected future exposure discounted at a suitable cost of funds. A ten basis points increase in the cost of funds will increase the funding valuation adjustment by approximately £26 million. (II) MARKET LIQUIDITY The Group includes mid to bid-offer valuation adjustments against the expected cost of closing out the net market risk in the Group’s trading positions within a timeframe that is consistent with historical trading activity and spreads that the trading desks have accessed historically during the ordinary course of business in normal market conditions. At 31 December 2017, the Group’s derivative trading business held mid to bid-offer valuation adjustments of £74 million (2016: £96 million). (D) SENSITIVITY OF LEVEL 3 VALUATIONS At 31 December 2017 At 31 December 2016 Effect of reasonably possible alternative assumptions 2 Effect of reasonably possible 2 Valuation techniques Significant unobservable inputs 1 Carrying Favourable Unfavourable Carrying Favourable Unfavourable Trading and other financial assets at fair value through profit or loss Debt securities Discounted cash flows Credit spreads (bps) (1bps/2bps) 11 – – 29 5 (5 ) Asset-backed securities Lead manager or broker quote n/a – – – 59 – – Equity and venture capital investments Market approach Earnings multiple 1,879 65 (65 ) 2,163 63 (68 ) Underlying asset/net asset value (incl. property prices) 3 n/a 50 5 (5 ) 54 2 (3 ) Unlisted equities, debt securities and property partnerships in the life funds Underlying asset/net asset value (incl. property prices), broker quotes or discounted cash flows 3 n/a 1,746 26 (76 ) 1,501 – (32 ) 3,686 3,806 Available-for-sale financial assets Asset-backed securities Lead manager or broker quote/consensus pricing n/a 92 – (4 ) 133 – – Equity and venture capital investments Underlying asset/net asset value (incl. property prices) 3 n/a 604 83 (42 ) 761 48 (53 ) Other Various n/a – – – 696 894 Derivative financial assets Interest rate derivatives Option pricing model Interest rate volatility 1,056 11 (3 ) 1,399 (3 ) (19 ) 1,056 1,399 Level 3 financial assets carried at fair value 5,438 6,099 Trading and other financial liabilities at fair value through profit or loss – – – 2 – – Derivative financial liabilities Interest rate derivatives Option pricing model Interest rate volatility 804 – – 960 – – 804 960 Level 3 financial liabilities carried at fair value 804 962 1 Ranges are shown where appropriate and represent the highest and lowest inputs used in the level 3 valuations. 2 Where the exposure to an unobservable input is managed on a net basis, only the net impact is shown in the table. 3 Underlying asset/net asset values represent fair value. UNOBSERVABLE INPUTS Significant unobservable inputs affecting the valuation of debt securities, unlisted equity investments and derivatives are as follows: – Interest rates and inflation rates are referenced in some derivatives where the payoff that the holder of the derivative receives depends on the behaviour of those underlying references through time. – Credit spreads represent the premium above the benchmark reference instrument required to compensate for lower credit quality; higher spreads lead to a lower fair value. – Volatility parameters represent key attributes of option behaviour; higher volatilities typically denote a wider range of possible outcomes. – Earnings multiples are used to value certain unlisted equity investments; a higher earnings multiple will result in a higher fair value. REASONABLY POSSIBLE ALTERNATIVE ASSUMPTIONS Valuation techniques applied to many of the Group’s level 3 instruments often involve the use of two or more inputs whose relationship is interdependent. The calculation of the effect of reasonably possible alternative assumptions included in the table above reflects such relationships. DEBT SECURITIES Reasonably possible alternative assumptions have been determined in respect of the Group’s structured credit investment by flexing credit spreads. DERIVATI |
TRANSFERS OF FINANCIAL ASSETS
TRANSFERS OF FINANCIAL ASSETS | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of transferred financial assets that are not derecognised in their entirety [text block] [Abstract] | |
Disclosure of transferred financial assets that are not derecognised in their entirety [text block] | NOTE 49: TRANSFERS OF FINANCIAL ASSETS There were no significant transferred financial assets which were derecognised in their entirety, but with ongoing exposure. Details of transferred financial assets that continue to be recognised in full are as follows. The Group enters into repurchase and securities lending transactions in the normal course of business that do not result in derecognition of the financial assets covered as substantially all of the risks and rewards, including credit, interest rate, prepayment and other price risks are retained by the Group. In all cases, the transferee has the right to sell or repledge the assets concerned. As set out in note 18, included within loans and receivables are loans transferred under the Group’s securitisation and covered bond programmes. As the Group retains all of a majority of the risks and rewards associated with these loans, including credit, interest rate, prepayment and liquidity risk, they remain on the Group’s balance sheet. Assets transferred into the Group’s securitisation and covered bond programmes are not available to be used by the Group whilst the assets are within the programmes. However, the Group retains the right to remove loans from the covered bond programmes where they are in excess of the programme’s requirements. In addition, where the Group has retained some of the notes issued by securitisation and covered bond programmes, the Group has the ability to sell or pledge these retained notes. The table below sets out the carrying values of the transferred assets and the associated liabilities. For repurchase and securities lending transactions, the associated liabilities represent the Group’s obligation to repurchase the transferred assets. For securitisation programmes, the associated liabilities represent the external notes in issue (note 30). Except as otherwise noted below, none of the liabilities shown in the table below have recourse only to the transferred assets. 2017 2016 Carrying Carrying Carrying Carrying Repurchase and securities lending transactions Trading and other financial assets at fair value through profit or loss 9,946 3,257 10,256 3,380 Available-for-sale financial assets 19,359 16,753 24,681 21,809 Loans and receivables: Loans and advances to customers – – 583 – Securitisation programmes Loans and receivables: Loans and advances to customers 1 35,475 3,660 52,184 7,253 1 The carrying value of associated liabilities excludes securitisation notes held by the Group of £21,582 million (31 December 2016: £26,435 million). |
OFFSETTING OF FINANCIAL ASSETS
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of offsetting of financial assets and financial liabilities [text block] [Abstract] | |
Disclosure of offsetting of financial assets and financial liabilities [text block] | NOTE 50: OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES The following information relates to financial assets and liabilities which have been offset in the balance sheet and those which have not been offset but for which the Group has enforceable master netting agreements or collateral arrangements in place with counterparties. Related amounts where set off in 3 Potential At 31 December 2017 Gross amounts of assets and liabilities 1 £m Amounts offset in the balance sheet 2 £m Net amounts presented in the balance sheet £m Cash collateral Non-cash net amounts if offset of related amounts permitted £m Financial assets Trading and other financial assets at fair value through profit or loss: Excluding reverse repos 131,288 – 131,288 – (3,322 ) 127,966 Reverse repos 38,882 (7,292 ) 31,590 – (31,590 ) – 170,170 (7,292 ) 162,878 – (34,912 ) 127,966 Derivative financial instruments 72,869 (47,035 ) 25,834 (5,419 ) (13,807 ) 6,608 Loans and advances to banks: Excluding reverse repos 5,840 – 5,840 (2,293 ) – 3,547 Reverse repos 771 – 771 (646 ) (125 ) – 6,611 – 6,611 (2,939 ) (125 ) 3,547 Loans and advances to customers: Excluding reverse repos 457,382 (1,716 ) 455,666 (1,656 ) (7,030 ) 446,980 Reverse repos 16,832 – 16,832 – (16,832 ) – 474,214 (1,716 ) 472,498 (1,656 ) (23,862 ) 446,980 Debt securities 3,643 – 3,643 – – 3,643 Available-for-sale financial assets 42,098 – 42,098 – (16,751 ) 25,347 Financial liabilities Deposits from banks: Excluding repos 6,629 – 6,629 (4,860 ) – 1,769 Repos 23,175 – 23,175 – (23,175 ) – 29,804 – 29,804 (4,860 ) (23,175 ) 1,769 Customer deposits: Excluding repos 417,009 (1,523 ) 415,486 (1,205 ) (7,030 ) 407,251 Repos 2,638 – 2,638 – (2,638 ) – 419,647 (1,523 ) 418,124 (1,205 ) (9,668 ) 407,251 Trading and other financial liabilities at fair value through profit or loss: Excluding repos 9,499 – 9,499 – – 9,499 Repos 48,670 (7,292 ) 41,378 – (41,378 ) – 58,169 (7,292 ) 50,877 – (41,378 ) 9,499 Derivative financial instruments 73,352 (47,228 ) 26,124 (3,949 ) (17,459 ) 4,716 Related amounts where set off in the balance sheet not permitted 3 Potential At 31 December 2016 Gross amounts of assets and liabilities 1 £m Amounts offset in the balance sheet 2 £m Net amounts presented in the balance sheet £m Cash collateral received/ pledged £m Non-cash collateral received/ pledged £m net amounts if offset of related amounts permitted £m Financial assets Trading and other financial assets at fair value through profit or loss: Excluding reverse repos 118,095 – 118,095 – (3,265 ) 114,830 Reverse repos 35,298 (2,219 ) 33,079 – (33,079 ) – 153,393 (2,219 ) 151,174 – (36,344 ) 114,830 Derivative financial instruments 92,390 (56,252 ) 36,138 (6,472 ) (19,906 ) 9,760 Loans and advances to banks: Excluding reverse repos 26,000 – 26,000 (2,826 ) – 23,174 Reverse repos 902 – 902 – (902 ) – 26,902 – 26,902 (2,826 ) (902 ) 23,174 Loans and advances to customers: Excluding reverse repos 451,290 (1,636 ) 449,654 (1,793 ) (6,331 ) 441,530 Reverse repos 8,304 – 8,304 – (8,304 ) – 459,594 (1,636 ) 457,958 (1,793 ) (14,635 ) 441,530 Debt securities 3,397 – 3,397 – – 3,397 Available-for-sale financial assets 56,524 – 56,524 – (21,475 ) 35,049 Financial liabilities Deposits from banks: Excluding repos 9,105 – 9,105 (5,080 ) (695 ) 3,330 Repos 7,279 – 7,279 – (7,279 ) – 16,384 – 16,384 (5,080 ) (7,974 ) 3,330 Customer deposits: Excluding repos 415,153 (2,155 ) 412,998 (1,391 ) (6,331 ) 405,276 Repos 2,462 – 2,462 – (2,462 ) – 417,615 (2,155 ) 415,460 (1,391 ) (8,793 ) 405,276 Trading and other financial liabilities at fair value through profit or loss: Excluding repos 12,437 – 12,437 – – 12,437 Repos 44,286 (2,219 ) 42,067 – (42,067 ) – 56,723 (2,219 ) 54,504 – (42,067 ) 12,437 Derivative financial instruments 90,657 (55,733 ) 34,924 (4,620 ) (24,820 ) 5,484 1 After impairment allowance. 2 The amounts set off in the balance sheet as shown above represent derivatives and repurchase agreements with central clearing houses which meet the criteria for offsetting under IAS 32. 3 The Group enters into derivatives and repurchase and reverse repurchase agreements with various counterparties which are governed by industry standard master netting agreements. The Group holds and provides cash and securities collateral in respective of derivative transactions covered by these agreements. The right to set off balances under these master netting agreements or to set off cash and securities collateral only arises in the event of non-payment or default and, as a result, these arrangements do not qualify for offsetting under IAS 32. The effects of over collateralisation have not been taken into account in the above table. |
FINANCIAL RISK MANAGEMENT
FINANCIAL RISK MANAGEMENT | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of financial risk management [text block] [Abstract] | |
Disclosure of financial risk management [text block] | NOTE 51: FINANCIAL RISK MANAGEMENT As a bancassurer, financial instruments are fundamental to the Group’s activities and, as a consequence, the risks associated with financial instruments represent a significant component of the risks faced by the Group. The primary risks affecting the Group through its use of financial instruments are: credit risk; market risk, which includes interest rate risk and foreign exchange risk; liquidity risk; capital risk; and insurance risk. Information about the Group’s exposure to each of the above risks and capital can be found under Risk management Market risk INTEREST RATE RISK Interest rate risk arises from the different repricing characteristics of the assets and liabilities. Liabilities are either insensitive to interest rate movements, for example interest free or very low interest customer deposits, or are sensitive to interest rate changes but bear rates which may be varied at the Group’s discretion and that for competitive reasons generally reflect changes in the Bank of England’s base rate. The rates on the remaining deposits are contractually fixed for their term to maturity. Many banking assets are sensitive to interest rate movements; there is a large volume of managed rate assets such as variable rate mortgages which may be considered as a natural offset to the interest rate risk arising from the managed rate liabilities. However, a significant proportion of the Group’s lending assets, for example many personal loans and mortgages, bear interest rates which are contractually fixed. The Group establishes two types of hedge accounting relationships for interest rate risk: fair value hedges and cash flow hedges. The Group is exposed to fair value interest rate risk on its fixed rate customer loans, its fixed rate customer deposits and the majority of its subordinated debt, and to cash flow interest rate risk on its variable rate loans and deposits together with its floating rate subordinated debt. At 31 December 2017 the aggregate notional principal of interest rate swaps designated as fair value hedges was £109,670 million (2016: £194,416 million) with a net fair value asset of £738 million (2016: asset of £725 million) (note 16). The losses on the hedging instruments were £420 million (2016: losses of £1,946 million). The gains on the hedged items attributable to the hedged risk were £484 million (2016: gains of £2,017 million). In addition the Group has cash flow hedges which are primarily used to hedge the variability in the cost of funding within the commercial business. Note 16 shows when the hedged cash flows are expected to occur and when they will affect income for designated cash flow hedges. The notional principal of the interest rate swaps designated as cash flow hedges at 31 December 2017 was £549,099 million (2016: £384,182 million) with a net fair value liability of £456 million (2016: liability of £352 million) (note 16). In 2017, ineffectiveness recognised in the income statement that arises from cash flow hedges was a loss of £21 million (2016: gain of £24 million). CURRENCY RISK The corporate and retail businesses incur foreign exchange risk in the course of providing services to their customers. All non-structural foreign exchange exposures in the non-trading book are transferred to the trading area where they are monitored and controlled. These risks reside in the authorised trading centres who are allocated exposure limits. The limits are monitored daily by the local centres and reported to the market and liquidity risk function in London. Associated VaR and the closing, average, maximum and minimum are disclosed under Market risk Risk arises from the Group’s investments in its overseas operations. The Group’s structural foreign currency exposure is represented by the net asset value of the foreign currency equity and subordinated debt investments in its subsidiaries and branches. Gains or losses on structural foreign currency exposures are taken to reserves. The Group hedges part of the currency translation risk of the net investment in certain foreign operations using currency borrowings. At 31 December 2017 the aggregate principal of these currency borrowings was £41 million (2016: £695 million). In 2017, an ineffectiveness loss of £11 million before tax and £8 million after tax (2016: ineffectiveness loss of £2 million before tax and £1 million after tax) was recognised in the income statement arising from net investment hedges. The Group’s main overseas operations are in the Americas and Europe. Details of the Group’s structural foreign currency exposures, after net investment hedges, are as follows: FUNCTIONAL CURRENCY OF GROUP OPERATIONS 2017 2016 Euro US Dollar Other Euro US Dollar Other Gross exposure 73 374 32 247 479 36 Net investment hedges (41 ) – – (216 ) (479 ) – Total structural foreign currency exposures, after net investment hedges 32 374 32 31 – 36 Credit risk The Group’s credit risk exposure arises in respect of the instruments below and predominantly in the United Kingdom. Information about the Group’s exposure to credit risk, credit risk management, measurement and mitigation can be found under Credit risk A. MAXIMUM CREDIT EXPOSURE The maximum credit risk exposure of the Group in the event of other parties failing to perform their obligations is detailed below. No account is taken of any collateral held and the maximum exposure to loss, which includes amounts held to cover unit-linked and With Profits funds liabilities, is considered to be the balance sheet carrying amount or, for non-derivative off-balance sheet transactions and financial guarantees, their contractual nominal amounts. At 31 December 2017 At 31 December 2016 Maximum Offset 2 Net exposure Maximum Offset 2 Net exposure Loans and receivables: Loans and advances to banks, net 1 6,611 – 6,611 26,902 – 26,902 Loans and advances to customers, net 1 472,498 (7,030 ) 465,468 457,958 (6,331 ) 451,627 Debt securities, net 1 3,643 – 3,643 3,397 – 3,397 482,752 (7,030 ) 475,722 488,257 (6,331 ) 481,926 Available-for-sale financial assets 3 40,901 – 40,901 55,311 – 55,311 Trading and other financial assets at fair value through profit or loss: 3,4 Loans and advances 31,590 – 31,590 33,079 – 33,079 Debt securities, treasury and other bills 45,198 – 45,198 50,398 – 50,398 76,788 – 76,788 83,477 – 83,477 Derivative assets 25,834 (13,049 ) 12,785 36,138 (18,539 ) 17,599 Assets arising from reinsurance contracts held 602 – 602 714 – 714 Financial guarantees 5,820 – 5,820 6,883 – 6,883 Off-balance sheet items: Acceptances and endorsements 71 – 71 21 – 21 Other items serving as direct credit substitutes 740 – 740 779 – 779 Performance bonds and other transaction-related contingencies 2,300 – 2,300 2,237 – 2,237 Irrevocable commitments 60,126 – 60,126 63,203 – 63,203 63,237 – 63,237 66,240 – 66,240 695,934 (20,079 ) 675,855 737,020 (24,870 ) 712,150 1 Amounts shown net of related impairment allowances. 2 Offset items comprise deposit amounts available for offset, and amounts available for offset under master netting arrangements, that do not meet the criteria under IAS 32 to enable loans and advances and derivative assets respectively to be presented net of these balances in the financial statements. 3 Excluding equity shares. 4 Includes assets within the Group’s unit-linked funds for which credit risk is borne by the policyholders and assets within the Group’s With-Profits funds for which credit risk is largely borne by the policyholders. Consequently, the Group has no significant exposure to credit risk for such assets which back related contract liabilities. B. CONCENTRATIONS OF EXPOSURE The Group’s management of concentration risk includes single name, industry sector and country limits as well as controls over the Group’s overall exposure to certain products. Further information on the Group’s management of this risk is included within Credit risk mitigation, under Credit risk At 31 December 2017 the most significant concentrations of exposure were in mortgages (comprising 64 per cent of total loans and advances to customers) and to financial, business and other services (comprising 12 per cent of the total). For further information on concentrations of the Group’s loans, refer to note 17. Following the continuing reduction in the Group’s non-UK activities, an analysis of credit risk exposures by geographical region has not been provided. C. CREDIT QUALITY OF ASSETS LOANS AND RECEIVABLES The disclosures in the table below and those on page F-81 are produced under the underlying basis used for the Group’s segmental reporting. The Group believes that, for reporting periods following a significant acquisition this underlying basis, which includes the allowance for loan losses at the acquisition date on a gross basis, more fairly reflects the underlying provisioning status of the loans. The remaining acquisition-related fair value adjustments in respect of this lending are therefore identified separately in this table. The analysis of lending between retail and commercial has been prepared based upon the type of exposure and not the business segment in which the exposure is recorded. Included within retail are exposures to personal customers and small businesses, whilst included within commercial are exposures to corporate customers and other large institutions. LOANS AND ADVANCES Loans and advances to customers Loans and Loans and advances to banks £m Retail – mortgages £m Retail – other £m Commercial £m Total £m advances designated at fair value through profit or loss £m At 31 December 2017 Neither past due nor impaired 6,577 295,765 48,897 116,396 461,058 31,590 Past due but not impaired 6 5,934 585 336 6,855 – Impaired – no provision required 28 640 306 700 1,646 – – provision held – 3,529 1,053 1,613 6,195 – Gross 6,611 305,868 50,841 119,045 475,754 31,590 Allowance for impairment losses – (1,604 ) (655 ) (1,183 ) (3,442 ) – Fair value adjustments – 186 – Net balance sheet carrying value 6,611 472,498 31,590 At 31 December 2016 Neither past due nor impaired 26,888 296,303 39,478 109,364 445,145 33,079 Past due but not impaired 14 7,340 386 305 8,031 – Impaired – no provision required – 784 392 689 1,865 – – provision held – 3,536 1,038 2,056 6,630 – Gross 26,902 307,963 41,294 112,414 461,671 33,079 Allowance for impairment losses – (1,696 ) (458 ) (1,378 ) (3,532 ) – Fair value adjustments – (181 ) – Net balance sheet carrying value 26,902 457,958 33,079 The criteria that the Group uses to determine that there is objective evidence of an impairment loss are disclosed in note 2(H). Included in loans and receivables are advances which are individually determined to be impaired with a gross amount before impairment allowances of £2,465 million (31 December 2016: £2,870 million). The table below sets out the reconciliation of the allowance for impairment losses of £2,201 million (2016: £2,412 million) shown in note 20 to the allowance for impairment losses on an underlying basis of £3,442 million (2016: £3,532 million) shown above: 2017 2016 Allowance for impairment losses on loans and advances to customers 2,201 2,412 Impairment allowance of HBOS and MBNA at acquisition 1 11,309 11,147 Impairment charge covered by fair value adjustments 12,321 12,236 Amounts subsequently written off, net of foreign exchange and other movements (22,389 ) (22,263 ) Allowance for impairment losses on loans and advances to customers on an underlying basis 3,442 3,532 1 Comprises an allowance in respect of HBOS (£11,147 million) and, in 2017, MBNA (£162 million). These amounts impact the impairment allowance on an underlying basis but not on a statutory basis. LOANS AND ADVANCES WHICH ARE NEITHER PAST DUE NOR IMPAIRED Loans and advances to customers Loans and advances designated Loans and at fair value advances Retail – Retail – through to banks mortgages other Commercial Total profit or loss £m £m £m £m £m £m At 31 December 2017 Good quality 6,351 294,748 43,145 81,121 31,548 Satisfactory quality 198 790 4,770 30,154 42 Lower quality 28 32 286 4,807 – Below standard, but not impaired – 195 696 314 – Total loans and advances which are neither past due nor impaired 6,577 295,765 48,897 116,396 461,058 31,590 At 31 December 2016 Good quality 26,745 295,286 34,195 72,083 33,049 Satisfactory quality 87 814 4,479 30,433 30 Lower quality 3 39 387 6,433 – Below standard, but not impaired 53 164 417 415 – Total loans and advances which are neither past due nor impaired 26,888 296,303 39,478 109,364 445,145 33,079 The definitions of good quality, satisfactory quality, lower quality and below standard, but not impaired applying to retail and commercial are not the same, reflecting the different characteristics of these exposures and the way they are managed internally, and consequently totals are not provided. Commercial lending has been classified using internal probability of default rating models mapped so that they are comparable to external credit ratings. Good quality lending comprises the lower assessed default probabilities, with other classifications reflecting progressively higher default risk. Classifications of retail lending incorporate expected recovery levels for mortgages, as well as probabilities of default assessed using internal rating models. Further information about the Group’s internal probabilities of default rating models can be found under Credit risk LOANS AND ADVANCES WHICH ARE PAST DUE BUT NOT IMPAIRED Loans and advances to customers Loans and advances designated Loans and at fair value advances Retail – Retail – through to banks mortgages other Commercial Total profit or loss £m £m £m £m £m £m At 31 December 2017 0-30 days 6 3,057 458 246 3,761 – 30-60 days – 1,115 111 10 1,236 – 60-90 days – 785 3 13 801 – 90-180 days – 977 3 8 988 – Over 180 days – – 10 59 69 – Total loans and advances which are past due but not impaired 6 5,934 585 336 6,855 – At 31 December 2016 0-30 days 14 3,547 285 157 3,989 – 30-60 days – 1,573 75 37 1,685 – 60-90 days – 985 2 74 1,061 – 90-180 days – 1,235 6 14 1,255 – Over 180 days – – 18 23 41 – Total loans and advances which are past due but not impaired 14 7,340 386 305 8,031 – A financial asset is ‘past due’ if a counterparty has failed to make a payment when contractually due. DEBT SECURITIES CLASSIFIED AS LOANS AND RECEIVABLES An analysis by credit rating of the Group’s debt securities classified as loans and receivables is provided below: 2017 2016 Investment Investment grade 1 Other 2 Total grade 1 Other 2 Total £m £m £m £m £m £m Asset-backed securities: Mortgage-backed securities 2,366 – 2,366 2,089 – 2,089 Other asset-backed securities 1,164 96 1,260 1,192 98 1,290 3,530 96 3,626 3,281 98 3,379 Corporate and other debt securities 27 16 43 29 65 94 Gross exposure 3,557 112 3,669 3,310 163 3,473 Allowance for impairment losses (26 ) (76 ) Total debt securities classified as loans and receivables 3,643 3,397 1 Credit ratings equal to or better than ‘BBB’. 2 Other comprises sub-investment grade (2017: £89 million; 2016: £91 million) and not rated (2017: £23 million; 2016: £72 million). AVAILABLE-FOR-SALE FINANCIAL ASSETS (EXCLUDING EQUITY SHARES) An analysis of the Group’s available-for-sale financial assets is included in note 21. The credit quality of the Group’s available-for-sale financial assets (excluding equity shares) is set out below: 2017 2016 Investment Investment grade 1 Other 2 Total grade 1 Other 2 Total £m £m £m £m £m £m Debt securities: Government securities 34,708 – 34,708 48,714 – 48,714 Bank and building society certificates of deposit 167 – 167 142 – 142 Asset-backed securities: Mortgage-backed securities 1,156 – 1,156 108 – 108 Other asset-backed securities 235 20 255 312 5 317 1,391 20 1,411 420 5 425 Corporate and other debt securities 4,250 365 4,615 6,030 – 6,030 Total held as available-for-sale financial assets 40,516 385 40,901 55,306 5 55,311 1 Credit ratings equal to or better than ‘BBB’. 2 Other comprises sub-investment grade (2017: £9 million; 2016: £5 million) and not rated (2017: £376 million; 2016: £nil). DEBT SECURITIES, TREASURY AND OTHER BILLS HELD AT FAIR VALUE THROUGH PROFIT OR LOSS An analysis of the Group’s trading and other financial assets at fair value through profit or loss is included in note 15. The credit quality of the Group’s debt securities, treasury and other bills held at fair value through profit or loss is set out below: 2017 2016 Investment Investment grade 1 Other 2 Total grade 1 Other 2 Total £m £m £m £m £m £m Debt securities, treasury and other bills held at fair value through profit or loss Trading assets: Government securities 9,833 – 9,833 11,828 – 11,828 Asset-backed securities: Mortgage-backed securities 84 105 189 47 – 47 Other asset-backed securities 95 – 95 69 – 69 179 105 284 116 – 116 Corporate and other debt securities 469 54 523 221 3 224 Total held as trading assets 10,481 159 10,640 12,165 3 12,168 Other assets held at fair value through profit or loss: Government securities 12,180 7 12,187 14,904 – 14,904 Other public sector securities 1,519 8 1,527 1,318 7 1,325 Bank and building society certificates of deposit 222 – 222 244 – 244 Asset-backed securities: Mortgage-backed securities 208 3 211 633 27 660 Other asset-backed securities 924 2 926 1,178 291 1,469 1,132 5 1,137 1,811 318 2,129 Corporate and other debt securities 17,343 2,124 19,467 17,445 2,163 19,608 Total debt securities held at fair value through profit or loss 32,396 2,144 34,540 35,722 2,488 38,210 Treasury bills and other bills 18 – 18 20 – 20 Total other assets held at fair value through profit or loss 32,414 2,144 34,558 35,742 2,488 38,230 Total held at fair value through profit or loss 42,895 2,303 45,198 47,907 2,491 50,398 1 Credit ratings equal to or better than ‘BBB’. 2 Other comprises sub-investment grade (2017: £331 million; 2016: £485 million) and not rated (2017: £1,972 million; 2016: £2,006 million). Credit risk in respect of trading and other financial assets at fair value through profit or loss held within the Group’s unit-linked funds is borne by the policyholders and credit risk in respect of with-profits funds is largely borne by the policyholders. Consequently, the Group has no significant exposure to credit risk for such assets which back those contract liabilities. DERIVATIVE ASSETS An analysis of derivative assets is given in note 16. The Group reduces exposure to credit risk by using master netting agreements and by obtaining collateral in the form of cash or highly liquid securities. In respect of the Group’s net credit risk relating to derivative assets of £12,785 million (2016: £17,599 million), cash collateral of £5,419 million (2016: £6,472 million) was held and a further £275 million was due from OECD banks (2016: £613 million). 2017 2016 Investment Investment grade 1 Other 2 Total grade 1 Other 2 Total £m £m £m £m £m £m Trading and other 21,742 2,211 23,953 31,373 2,053 33,426 Hedging 1,874 7 1,881 2,664 48 2,712 Total derivative financial instruments 23,616 2,218 25,834 34,037 2,101 36,138 1 Credit ratings equal to or better than ‘BBB’. 2 Other comprises sub-investment grade (2017: £1,878 million; 2016: £1,830 million) and not rated (2017: £340 million; 2016: £271 million). FINANCIAL GUARANTEES AND IRREVOCABLE LOAN COMMITMENTS Financial guarantees represent undertakings that the Group will meet a customer’s obligation to third parties if the customer fails to do so. Commitments to extend credit represent unused portions of authorisations to extend credit in the form of loans, guarantees or letters of credit. The Group is theoretically exposed to loss in an amount equal to the total guarantees or unused commitments, however, the likely amount of loss is expected to be significantly less; most commitments to extend credit are contingent upon customers maintaining specific credit standards. D. COLLATERAL HELD AS SECURITY FOR FINANCIAL ASSETS A general description of collateral held as security in respect of financial instruments is provided under Credit risk LOANS AND RECEIVABLES The disclosures below are produced under the underlying basis used for the Group’s segmental reporting. The Group believes that, for reporting periods following a significant acquisition, such as the acquisition of HBOS in 2009, this underlying basis, which includes the allowance for loan losses at the acquisition on a gross basis, more fairly reflects the underlying provisioning status of the loans. The Group holds collateral in respect of loans and advances to banks and customers as set out below. The Group does not hold collateral against debt securities, comprising asset-backed securities and corporate and other debt securities, which are classified as loans and receivables. LOANS AND ADVANCES TO BANKS There were reverse repurchase agreements which are accounted for as collateralised loans within loans and advances to banks with a carrying value of £771 million (2016: £902 million), against which the Group held collateral with a fair value of £796 million (2016: £785 million). These transactions were generally conducted under terms that are usual and customary for standard secured lending activities. LOANS AND ADVANCES TO CUSTOMERS RETAIL LENDING Mortgages An analysis by loan-to-value ratio of the Group’s residential mortgage lending is provided below. The value of collateral used in determining the loan-to-value ratios has been estimated based upon the last actual valuation, adjusted to take into account subsequent movements in house prices, after making allowance for indexation error and dilapidations. 2017 2016 Neither Neither past due Past due but past due Past due but nor impaired not impaired Impaired Gross nor impaired not impaired Impaired Gross £m £m £m £m £m £m £m £m Less than 70 per cent 217,070 4,309 2,443 223,822 220,497 5,288 2,334 228,119 70 per cent to 80 per cent 43,045 787 595 44,427 39,789 1,004 648 41,441 80 per cent to 90 per cent 25,497 500 436 26,433 23,589 621 495 24,705 90 per cent to 100 per cent 7,085 177 245 7,507 7,983 223 355 8,561 Greater than 100 per cent 3,068 161 450 3,679 4,445 204 488 5,137 Total 295,765 5,934 4,169 305,868 296,303 7,340 4,320 307,963 Other The majority of non-mortgage retail lending is unsecured. At 31 December 2017, impaired non-mortgage lending amounted to £817 million, net of an impairment allowance of £542 million (2016: £972 million, net of an impairment allowance of £458 million). The fair value of the collateral held in respect of this lending was £154 million (2016: £139 million). In determining the fair value of collateral, no specific amounts have been attributed to the costs of realisation and the value of collateral for each loan has been limited to the principal amount of the outstanding advance in order to eliminate the effects of any over-collateralisation and to provide a clearer representation of the Group’s exposure. Unimpaired non-mortgage retail lending amounted to £49,482 million (2016: £39,864 million). Lending decisions are predominantly based on an obligor’s ability to repay from normal business operations rather than reliance on the disposal of any security provided. Collateral values are rigorously assessed at the time of loan origination and are thereafter monitored in accordance with business unit credit policy. The Group credit risk disclosures for unimpaired non-mortgage retail lending report assets gross of collateral and therefore disclose the maximum loss exposure. The Group believes that this approach is appropriate. The value of collateral is reassessed if there is observable evidence of distress of the borrower. Unimpaired non-mortgage retail lending, including any associated collateral, is managed on a customer-by-customer basis rather than a portfolio basis. No aggregated collateral information for the entire unimpaired non-mortgage retail lending portfolio is provided to key management personnel. COMMERCIAL LENDING Reverse repurchase transactions At 31 December 2017 there were reverse repurchase agreements which were accounted for as collateralised loans with a carrying value of £16,832 million (2016: £8,304 million), against which the Group held collateral with a fair value of £17,122 million (2016: £7,490 million), all of which the Group was able to repledge. Included in these amounts were collateral balances in the form of cash provided in respect of reverse repurchase agreements of £nil (2016: £8 million). These transactions were generally conducted under terms that are usual and customary for standard secured lending activities. Impaired secured lending The value of collateral is re-evaluated and its legal soundness re-assessed if there is observable evidence of distress of the borrower; this evaluation is used to determine potential loss allowances and management’s strategy to try to either repair the business or recover the debt. At 31 December 2017, impaired secured commercial lending amounted to £698 million, net of an impairment allowance of £242 million (2016: £204 million, net of an impairment allowance of £401 million). The fair value of the collateral held in respect of impaired secured commercial lending was £797 million (2016: £1,160 million). In determining the fair value of collateral, no specific amounts have been attributed to the costs of realisation. For the purposes of determining the total collateral held by the Group in respect of impaired secured commercial lending, the value of collateral for each loan has been limited to the principal amount of the outstanding advance in order to eliminate the effects of any over-collateralisation and to provide a clearer representation of the Group’s exposure. Impaired secured commercial lending and associated collateral relates to lending to property companies and to customers in the financial, business and other services; transport, distribution and hotels; and construction industries. Unimpaired secured lending Unimpaired secured commercial lending amounted to £48,120 million (2016: £36,275 million). For unimpaired secured commercial lending, the Group reports assets gross of collateral and therefore discloses the maximum loss exposure. The Group believes that this approach is appropriate as collateral values at origination and during a period of good performance may not be representative of the value of collateral if the obligor enters a distressed state. Unimpaired secured commercial lending is predominantly managed on a cash flow basis. On occasion, it may include an assessment of underlying collateral, although, for impaired lending, this will not always involve assessing it on a fair value basis. No aggregated collateral information for the entire unimpaired secured commercial lending portfolio is provided to key management personnel. TRADING AND OTHER FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (EXCLUDING EQUITY SHARES) Included in trading and other financial assets at fair value through profit or loss are reverse repurchase agreements treated as collateralised loans with a carrying value of £31,590 million (2016: £33,079 million). Collateral is held with a fair value of £39,099 million (2016: £30,850 million), all of which the Group is able to repledge. At 31 December 2017, £31,281 million had been repledged (2016: £27,303 million). In addition, securities held as collateral in the form of stock borrowed amounted to £61,469 million (2016: £47,816 million). Of this amount, £44,432 million (2016: £16,204 million) had been resold or repledged as collateral for the Group’s own transactions. These transactions were generally conducted under terms that are usual and customary for standard secured lending activities. DERIVATIVE ASSETS, AFTER OFFSETTING OF AMOUNTS UNDER MASTER NETTING ARRANGEMENTS The Group reduces exposure to credit risk by using master netting agreements and by obtaining collateral in the form of cash or highly liquid securities. In respect of the net derivative assets after offsetting of amounts under master netting arrangements of £12,785 million (2016: £17,599 million), cash collateral of £5,419 million (2016: £6,472 million) was held. IRREVOCABLE LOAN COMMITMENTS AND OTHER CREDIT-RELATED CONTINGENCIES At 31 December 2017, the Group held irrevocable loan commitments and other credit-related contingencies of £63,237 million (2016: £66,240 million). Collateral is held as security, in the event that lending is drawn down, on £10,956 million (2016: £10,053 million) of these balances. COLLATERAL REPOSSESSED During the year, £297 million of collateral was repossessed (2016: £241 million), consisting primarily of residential property. In respect of retail portfolios, the Group does not take physical possession of properties or other assets held as collateral and uses external agents to realise the value as soon as practicable, generally at auction, to settle indebtedness. Any surplus funds are returned to the borrower or are otherwise dealt with in accordance with appropriate insolvency regulations. In certain circumstances the Group takes physical possession of assets held as collateral against commercial lending. In such cases, the assets are carried on the Group’s balance sheet and are classified according to the Group’s accounting policies. E. Collateral pledged as security The Group pledges assets primarily for repurchase agreements and securities lending transactions which are generally conducted under terms that are usual and customary for standard securitised borrowing contracts. REPURCHASE TRANSACTIONS DEPOSITS FROM BANKS Included in deposits from banks are balances arising from repurchase transactions of £23,175 million (2016: £7,279 million); the fair value of the collateral provided under these agreements at 31 December 2017 was £23,082 million (2016: £8,395 million). CUSTOMER DEPOSITS Included in customer deposits are balances arising from repurchase transactions of £2,638 million (2016: £2,462 million); the fair value of the collateral provided under these agreements at 31 December 2017 was £2,640 million (2016: £2,277 million). TRADING AND OTHER FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS The fair value of collateral pledged in respect of repurchase transactions, accounted for as secured borrowing, where the secured party is permitted by contract or custom to repledge was £48,765 million (2016: £45,702 million). SECURITIES LENDING TRANSACTIONS The following on balance sheet financial assets have been lent to counterparties under securities lending transactions: 2017 2016 £m £m Trading and other financial assets at fair value through profit or loss 6,622 6,991 Loans and advances to customers 197 583 Available-for-sale financial assets 2,608 3,206 9,427 10,780 SECURITISATIONS AND COVERED BONDS In addition to the assets detailed above, the Group also holds assets that are encumbered through the Group’s asset-backed conduits and its securitisation and covered bond programmes. Further details of these assets are provided in notes 18 and 19. Liquidity risk Liquidity risk is defined as the risk that the Group has insufficient financial resources to meet its commitments as they fall due, or can only secure them at excessive cost. Liquidity risk is managed through a series of measures, tests and reports that are primarily based on contractual maturity. The Group carries out monthly stress testing of its liquidity position against a range of scenarios, including those prescribed by the PRA. The Group’s liquidity risk appetite is also calibrated against a number of stressed liquidity metrics. The table below analyses assets and liabilities of the Group into relevant maturity groupings based on the remaining contractual period at the balance sheet date; balances with no fixed maturity are included in the over 5 years category. Certain balances, included in the table below on the basis of their residual maturity, are repayable on demand upon payment of a penalty. MATURITIES OF ASSETS AND LIABILITIES Up to 1 month £m 1-3 months £m 3-6 months £m 6-9 months £m 9-12 months £m 1-2 years £m 2-5 years £m Over 5 years £m Total £m At 31 December 2017 Assets Cash and balances at central banks 58,519 2 – – – – – – 58,521 Trading and other financial assets at fair value through profit or loss 11,473 13,345 4,858 2,781 1,056 2,655 5,341 121,369 162,878 Derivative financial instruments 449 601 763 451 503 965 2,763 19,339 25,834 Loans and advances to banks 3,104 314 190 190 192 131 2,405 85 6,611 Loans and advances to customers 28,297 15,953 13,585 11,881 10,482 29,340 70,967 291,993 472,498 Debt securities held as loans and receivables 10 29 – – 7 350 2,775 472 3,643 Available-for-sale financial assets 59 365 286 1,025 265 3,040 15, |
CONSOLIDATED CASH FLOW STATEM59
CONSOLIDATED CASH FLOW STATEMENT | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of cash flow statement [text block] [Abstract] | |
Disclosure of cash flow statement [text block] | NOTE 52: CONSOLIDATED CASH FLOW STATEMENT (A) Change in operating assets 2017 2016 £m 2015 £m Change in loans and receivables (24,747 ) 710 6,081 Change in derivative financial instruments, trading and other financial assets at fair value through profit or loss 9,916 (13,889 ) 20,689 Change in other operating assets (661 ) 961 7,930 Change in operating assets (15,492 ) (12,218 ) 34,700 (B) Change in operating liabilities 2017 2016 £m 2015 £m Change in deposits from banks 13,415 (654 ) 6,107 Change in customer deposits 2,913 (3,690 ) (4,252 ) Change in debt securities in issue (3,600 ) (6,552 ) 5,657 Change in derivative financial instruments, trading and other liabilities at fair value through profit or loss (12,481 ) 11,265 (16,924 ) Change in investment contract liabilities (4,665 ) (2,665 ) (3,922 ) Change in other operating liabilities 136 (363 ) 1,349 Change in operating liabilities (4,282 ) (2,659 ) (11,985 ) (C) Non-cash and other items 2017 2016 2015 Depreciation and amortisation 2,370 2,380 2,112 Revaluation of investment properties (230 ) 83 (416 ) Allowance for loan losses 691 592 441 Write-off of allowance for loan losses, net of recoveries (1,061 ) (1,272 ) (3,467 ) Impairment of available-for-sale financial assets 6 173 4 Change in insurance contract liabilities 9,168 14,084 (2,856 ) Payment protection insurance provision 1,300 1,350 4,000 Other regulatory provisions 865 1,085 837 Other provision movements (17 ) (40 ) 337 Net charge (credit) in respect of defined benefit schemes 369 287 315 Impact of consolidation and deconsolidation of OEICs 1 – (3,157 ) (5,978 ) Unwind of discount on impairment allowances (23 ) (32 ) (56 ) Foreign exchange impact on balance sheet 2 125 (155 ) 507 Loss on ECN transactions – 721 – Interest expense on subordinated liabilities 1,436 1,864 1,970 Loss (profit) on disposal of businesses – – 46 Net gain on sale of available-for-sale financial assets (446 ) (575 ) (51 ) Hedging valuation adjustments on subordinated debt (327 ) 153 (162 ) Value of employee services 414 309 279 Transactions in own shares (411 ) (175 ) (816 ) Accretion of discounts and amortisation of premiums and issue costs 1,701 465 339 Share of post-tax results of associates and joint ventures (6 ) 1 3 Transfers to income statement from reserves (650 ) (557 ) (956 ) Profit on disposal of tangible fixed assets (120 ) (93 ) (51 ) Other non-cash items – (17 ) (11 ) Total non-cash items 15,154 17,474 (3,630 ) Contributions to defined benefit schemes (587 ) (630 ) (433 ) Payments in respect of payment protection insurance provision (1,657 ) (2,200 ) (3,091 ) Payments in respect of other regulatory provisions (928 ) (761 ) (661 ) Other – 2 7 Total other items (3,172 ) (3,589 ) (4,178 ) Non-cash and other items 11,982 13,885 (7,808 ) 1 These OEICs (Open-ended investment companies) are mutual funds which are consolidated if the Group manages the funds and also has a sufficient beneficial interest. The population of OEICs to be consolidated varies at each reporting date as external investors acquire and divest holdings in the various funds. The consolidation of these funds is effected by the inclusion of the fund investments and a matching liability to the unitholders; and changes in funds consolidated represent a non-cash movement on the balance sheet. 2 When considering the movement on each line of the balance sheet, the impact of foreign exchange rate movements is removed in order to show the underlying cash impact. (D) Analysis of cash and cash equivalents as shown in the balance sheet 2017 2016 £m 2015 £m Cash and balances at central banks 58,521 47,452 58,417 Less: mandatory reserve deposits 1 (957 ) (914 ) (941 ) 57,564 46,538 57,476 Loans and advances to banks 6,611 26,902 25,117 Less: amounts with a maturity of three months or more (3,193 ) (11,052 ) (10,640 ) 3,418 15,850 14,477 Total cash and cash equivalents 60,982 62,388 71,953 1 Mandatory reserve deposits are held with local central banks in accordance with statutory requirements; these deposits are not available to finance the Group’s day-to-day operations. Included within cash and cash equivalents at 31 December 2017 is £2,322 million (2016: £14,475 million; 2015: £13,545 million) held within the Group’s long-term insurance and investments businesses, which is not immediately available for use in the business. (E) Acquisition of group undertakings and businesses 2017 2016 £m 2015 £m Net assets acquired: Cash and cash equivalents 123 – – Loans and receivables: Loans and advances to customers 7,811 – – Available-for-sale financial assets 16 – – Intangible assets 702 – – Property, plant and equipment 6 – – Other assets 414 – – Deposits from banks 1 (6,431 ) – – Other liabilities (927 ) – – Goodwill arising on acquisition 302 – – Cash consideration 2,016 – – Less: Cash and cash equivalents acquired (123 ) – – Net cash outflow arising from acquisition of MBNA 1,893 – – Acquisition of and additional investment in joint ventures 30 20 5 Net cash outflow from acquisitions in the year 1,923 20 5 1 Upon acquisition, the funding of MBNA was assumed by Lloyds Bank plc. (F) Disposal and closure of group undertakings and businesses 2017 2016 £m 2015 £m Trading and other assets at fair value through profit or loss – – 3,420 Loans and advances to customers 342 – 21,333 Loans and advances to banks – – 5,539 Available-for-sale financial assets – – 654 Value of in-force business – – 60 Property, plant and equipment – – 150 342 – 31,156 Customer deposits – – (24,613 ) Debt securities in issue – – (9 ) Liabilities arising from insurance contracts and participating investment contracts – – (3,828 ) Liabilities arising from non-participating investment contracts – – (549 ) Non-controlling interests (242 ) – (825 ) Other net assets (liabilities) 29 5 (314 ) (213 ) 5 (30,138 ) Net assets 129 5 1,018 Non-cash consideration received – – – (Loss) profit on sale – – (46 ) Cash consideration received on losing control of group undertakings and businesses 129 5 972 Cash and cash equivalents disposed – – (5,043 ) Net cash inflow (outflow) 129 5 (4,071 ) |
EVENTS SINCE THE BALANCE SHEET
EVENTS SINCE THE BALANCE SHEET DATE | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of events after reporting period [text block] [Abstract] | |
Disclosure of events after reporting period [text block] | NOTE 53: EVENTS SINCE THE BALANCE SHEET DATE The Group intends to implement a share buyback of up to £1 billion. This represents the return to shareholders of capital surplus to that required to provide capacity for growth, meet regulatory requirements and cover uncertainties. The share buyback programme will commence in March 2018 and is expected to be completed during the next 12 months. |
FUTURE ACCOUNTING DEVELOPMENTS
FUTURE ACCOUNTING DEVELOPMENTS | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of expected impact of initial application of new standards or interpretations [text block] [Abstract] | |
Disclosure of expected impact of initial application of new standards or interpretations [text block] | NOTE 54: FUTURE ACCOUNTING DEVELOPMENTS The following pronouncements are not applicable for the year ending 31 December 2017 and have not been applied in preparing these financial statements. Save as disclosed below, the impact of these accounting changes is still being assessed by the Group and reliable estimates cannot be made at this stage. IFRS 9 Financial Instruments IFRS 9 replaces IAS 39 ‘Financial Instruments: Recognition and Measurement’ and is effective for annual periods beginning on or after 1 January 2018. The Group has chosen 1 January 2018 as its initial application date of IFRS 9 and has not restated comparative periods. CLASSIFICATION AND MEASUREMENT IFRS 9 requires financial assets to be classified into one of three measurement categories, fair value through profit or loss, fair value through other comprehensive income or amortised cost. Financial assets will be measured at amortised cost if they are held within a business model the objective of which is to hold financial assets in order to collect contractual cash flows, and their contractual cash flows represent solely payments of principal and interest. Financial assets will be measured at fair value through other comprehensive income if they are held within a business model the objective of which is achieved by both collecting contractual cash flows and selling financial assets and their contractual cash flows represent solely payments of principal and interest. Financial assets not meeting either of these two business models; and all equity instruments (unless designated at inception to fair value through other comprehensive income); and all derivatives are measured at fair value through profit or loss. An entity may, at initial recognition, designate a financial asset as measured at fair value through profit or loss if doing so eliminates or significantly reduces an accounting mismatch. In October 2017 the IASB issued an Amendment to IFRS 9, ‘Prepayment Features with Negative Compensation’ which has an effective date of 1 January 2019. This Amendment changes the requirements of IFRS 9 so that certain prepayment features meet the solely payments of principal and interest test. The Group has some loans in its Commercial Banking division that have these features and so the Group has decided to apply the Amendment in 2018 in order to avoid further changes to accounting for financial assets in 2019. IMPAIRMENT The IFRS 9 impairment model will be applicable to all financial assets at amortised cost, debt instruments measured at fair value through other comprehensive income, lease receivables, loan commitments and financial guarantees not measured at fair value through profit or loss. IFRS 9 replaces the existing ‘incurred loss’ impairment approach with an expected credit loss (‘ECL’) model resulting in earlier recognition of credit losses compared with IAS 39. Expected credit losses are the unbiased probability weighted average credit losses determined by evaluating a range of possible outcomes and future economic conditions. The ECL model has three stages. Entities are required to recognise a 12 month expected loss allowance on initial recognition (stage 1) and a lifetime expected loss allowance when there has been a significant increase in credit risk since initial recognition (stage 2). Stage 3 requires objective evidence that an asset is credit-impaired, which is similar to the guidance on incurred losses in IAS 39, and then a lifetime expected loss allowance is recognised. IFRS 9 requires the use of more forward looking information including reasonable and supportable forecasts of future economic conditions. The need to consider a range of economic scenarios and how they could impact the loss allowance is a subjective feature of the IFRS 9 ECL model. The Group has developed the capability to model a number of economic scenarios and capture the impact on credit losses to ensure the overall ECL reflects an appropriate distribution of economic outcomes. For all material portfolios, IFRS 9 ECL calculation will leverage the systems, data and methodology used to calculate regulatory ‘expected losses’. The definition of default for IFRS 9 purposes will be aligned to the Basel definition of default to ensure consistency across the Group. IFRS 9 models will use three key input parameters for the computation of expected loss, being probability of default (‘PD’), loss given default (‘LGD’) and exposure at default (‘EAD’). However, given the conservatism inherent in the regulatory expected losses calculation and some differences in the period over which risk parameters are measured, some adjustments to these components have been made to ensure compliance with IFRS 9. IMPACT ON 31 DECEMBER 2017 BALANCE SHEET It is estimated that the new impairment methodology will result in higher impairment provisions of approximately £1.3 billion, predominantly for loans and advances to customers, recognised on the Group’s balance sheet. The re-classification and measurement of assets under IFRS 9 also results in a reduction to the carrying value of financial assets of approximately £0.2 billion gross of tax, mainly as a result of transferring assets managed by the Insurance division to fair value through profit or loss. The total net of tax impact on shareholders’ equity is a reduction of approximately £1.2 billion. The ongoing impact on the financial results will only become clearer after running the IFRS 9 credit risk models over a period of time and under different economic environments, however, it could result in impairment charges being more volatile when compared to the current IAS 39 impairment model, due to the forward looking nature of expected credit losses. HEDGE ACCOUNTING The hedge accounting requirements of IFRS 9 are more closely aligned with risk management practices and follow a more principle-based approach than IAS 39. The standard does not address macro hedge accounting, which is being considered in a separate IASB project. There is an option to retain the existing IAS 39 hedge accounting requirements until the IASB completes its project on macro hedging. The Group expects to continue applying IAS 39 hedge accounting in accordance with this accounting policy choice. IFRS 15 Revenue from Contracts with Customers IFRS 15 replaces IAS 18 ‘Revenue’ and IAS 11 ‘Construction Contracts’ and is effective for annual periods beginning on or after 1 January 2018. The core principle of IFRS 15 is that revenue reflects the transfer of goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled. The recognition of such revenue is in accordance with five steps to: identify the contract; identify the performance obligations; determine the transaction price; allocate the transaction price to the performance obligations; and recognise revenue when the performance obligations are satisfied. In nearly all cases the Group’s current accounting policy is consistent with the requirements of IFRS 15, however, certain income streams within the Group’s car leasing business will be deferred with effect from 1 January 2018. This results in an additional £14 million being recognised as deferred income at 1 January 2018 and a corresponding debit of £11 million, net of tax, to shareholders’ equity; as permitted by the transition options under IFRS 15 comparative figures for the prior year have not been restated. IFRS 16 Leases IFRS 16 replaces IAS 17 ‘Leases’ and is effective for annual periods beginning on or after 1 January 2019. IFRS 16 requires lessees to recognise a right of use asset and a liability for future payments arising from a lease contract. Lessees will recognise a finance charge on the liability and a depreciation charge on the asset which could affect the timing of the recognition of expenses on leased assets. This change will mainly impact the properties that the Group currently accounts for as operating leases. Finance systems will need to be changed to reflect the new accounting rules and disclosures. Lessor accounting requirements remain aligned to the current approach under IAS 17. IFRS 17 Insurance Contracts IFRS 17 replaces IFRS 4 ‘Insurance Contracts’ and is effective for annual periods beginning on or after 1 January 2021. IFRS 17 requires insurance contracts and participating investment contracts to be measured on the balance sheet as the total of the fulfilment cash flows and the contractual service margin. Changes to estimates of future cash flows from one reporting date to another are recognised either as an amount in profit or loss or as an adjustment to the expected profit for providing insurance coverage, depending on the type of change and the reason for it. The effects of some changes in discount rates can either be recognised in profit or loss or in other comprehensive income as an accounting policy choice. The risk adjustment is released to profit and loss as an insurer’s risk reduces. Profits which are currently recognised through a Value in Force asset, will no longer be recognised at inception of an insurance contract. Instead, the expected profit for providing insurance coverage is recognised in profit or loss over time as the insurance coverage is provided. The standard will have a significant impact on the accounting for the insurance and participating investment contracts issued by the Group. Minor amendments to other accounting standards The IASB has issued a number of minor amendments to IFRSs effective 1 January 2018 (including IFRS 2 Share-based Payment and IAS 40 Investment Property) and effective 1 January 2019 (including IAS 19 Employee Benefits, IAS 12 Income Taxes and IFRIC 23 Uncertainty over Income Tax Treatments). These revised requirements are not expected to have a significant impact on the Group. |
PARENT COMPANY DISCLOSURES
PARENT COMPANY DISCLOSURES | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Parent Company Financial Statements Explanatory [Abstract] | |
Disclosure of parent company financial statements [text block] | NOTE 55: PARENT COMPANY DISCLOSURES A COMPANY INCOME STATEMENT 2017 2016 2015 £ million £ million £ million Net interest (expense) income (121 ) 66 276 Other income 2,792 3,618 983 Total income 2,671 3,684 1,259 Operating expenses (255 ) (221 ) (290 ) Profit on ordinary activities before tax 2,416 3,463 969 Tax expense (17 ) (328 ) (72 ) Profit for the year 2,399 3,135 897 Profit attributable to ordinary shareholders 1,984 2,723 503 Profit attributable to other equity holders 1 415 412 394 Profit for the year 2,399 3,135 897 1 The profit after tax attributable to other equity holders of £415 million (2016: £412 million; 2015: £394 million) is offset in reserves by a tax credit attributable to ordinary shareholders of £79 million (2016: £82 million; 2015: £80 million). B COMPANY BALANCE SHEET 2017 2016 £ million £ million Assets Non-current assets: Investment in subsidiaries 44,863 44,188 Loans to subsidiaries 14,379 6,912 Deferred tax assets 22 38 59,264 51,138 Current assets: Derivative financial instruments 265 461 Other assets 961 959 Amounts due from subsidiaries 47 67 Cash and cash equivalents 272 42 Current tax recoverable 724 465 2,269 1,994 Total assets 61,533 53,132 Equity and liabilities Capital and reserves: Share capital 7,197 7,146 Share premium account 17,634 17,622 Merger reserve 7,423 7,423 Capital redemption reserve 4,115 4,115 Retained profits 1,500 1,584 Shareholders’ equity 37,869 37,890 Other equity instruments 5,355 5,355 Total equity 43,224 43,245 Non-current liabilities: Debt securities in issue 10,886 2,455 Subordinated liabilities 3,993 4,329 14,879 6,784 Current liabilities: Derivative financial instruments 327 – Other liabilities 3,103 3,103 3,430 3,103 Total liabilities 18,309 9,887 Total equity and liabilities 61,533 53,132 C COMPANY STATEMENT OF CHANGES IN EQUITY Capital Total Share capital Merger redemption Retained shareholders’ Other equity Total and premium reserve reserve profits 1 equity instruments equity £ million £ million £ million £ million £ million £ million £ million Balance at 1 January 2015 24,427 7,764 4,115 1,720 38,026 5,355 43,381 Total comprehensive income 1 – – – 897 897 – 897 Dividends paid – – – (1,070 ) (1,070 ) – (1,070 ) Distributions on other equity instruments, net of tax – – – (314 ) (314 ) – (314 ) Redemption of preference shares 131 (131 ) – – – – – Movement in treasury shares – – – (753 ) (753 ) – (753 ) Value of employee services: Share option schemes – – – 133 133 – 133 Other employee award schemes – – – 172 172 – 172 Balance at 31 December 2015 24,558 7,633 4,115 785 37,091 5,355 42,446 Total comprehensive income 1 – – – 3,135 3,135 – 3,135 Dividends paid – – – (2,014 ) (2,014 ) – (2,014 ) Distributions on other equity instruments, net of tax – – – (330 ) (330 ) – (330 ) Redemption of preference shares 210 (210 ) – – – – – Movement in treasury shares – – – (301 ) (301 ) – (301 ) Value of employee services: Share option schemes – – – 141 141 – 141 Other employee award schemes – – – 168 168 – 168 Balance at 31 December 2016 24,768 7,423 4,115 1,584 37,890 5,355 43,245 Total comprehensive income 1 – – – 2,399 2,399 – 2,399 Dividends paid – – – (2,284 ) (2,284 ) – (2,284 ) Distributions on other equity instruments, net of tax – – – (336 ) (336 ) – (336 ) Issue of ordinary shares 63 – – – 63 – 63 Movement in treasury shares – – – (277 ) (277 ) – (277 ) Value of employee services: Share option schemes – – – 82 82 – 82 Other employee award schemes – – – 332 332 – 332 Balance at 31 December 2017 24,831 7,423 4,115 1,500 37,869 5,355 43,224 1 Total comprehensive income comprises only the profit (loss) for the year. D COMPANY CASH FLOW STATEMENT 2017 2016 2015 £ million £ million £ million Profit before tax 2,416 3,463 969 Fair value and exchange adjustments and other non-cash items 495 1,986 (1,357 ) Change in other assets 18 (50 ) (566 ) Change in other liabilities and other items 8,431 (8,392 ) 458 Dividends received (2,650 ) (3,759 ) (1,080 ) Distributions on other equity instruments received (292 ) (119 ) – Tax (paid) received (197 ) (679 ) (142 ) Net cash provided by (used in) operating activities 8,221 (7,550 ) (1,718 ) Cash flows from investing activities Return of capital contribution 77 441 600 Dividends received 2,650 3,759 1,080 Distributions on other equity instruments received 292 119 – Capital injection to Lloyds Bank plc – (3,522 ) – Acquisition of subsidiaries (320 ) – – Amounts advanced to subsidiaries (8,476 ) (4,978 ) (1,157 ) Redemption of loans to subsidiaries 475 13,166 570 Interest received on loans to subsidiaries 244 496 763 Net cash (used in) provided by investing activities (5,058 ) 9,481 1,856 Cash flows from financing activities Dividends paid to ordinary shareholders (2,284 ) (2,014 ) (1,070 ) Distributions on other equity instruments (415 ) (412 ) (394 ) Issue of subordinated liabilities – 1,061 1,436 Interest paid on subordinated liabilities (248 ) (229 ) (129 ) Repayment of subordinated liabilities – (319 ) (152 ) Proceeds from issue of ordinary shares 14 – – Net cash provided by financing activities (2,933 ) (1,913 ) (309 ) Change in cash and cash equivalents 230 18 (171 ) Cash and cash equivalents at beginning of year 42 24 195 Cash and cash equivalents at end of year 272 42 24 E INTERESTS IN SUBSIDIARIES The principal subsidiaries, all of which have prepared accounts to 31 December and whose results are included in the consolidated accounts of Lloyds Banking Group plc, are: Percentage of equity Country of share capital registration/ and voting Incorporation rights held Nature of business Lloyds Bank plc England 100% Banking and financial services Scottish Widows Limited Scotland 100% 1 Life assurance HBOS plc Scotland 100% 1 Holding company Bank of Scotland plc Scotland 100% 1 Banking and financial services 1 Indirect interest. The principal area of operation for each of the above subsidiaries is the United Kingdom. |
CONDENSED CONSOLIDATING FINANCI
CONDENSED CONSOLIDATING FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of separate financial statements [text block] [Abstract] | |
Disclosure of separate financial statements [text block] | NOTE 56: CONDENSED CONSOLIDATING FINANCIAL INFORMATION The Company owns 100 per cent of the share capital of Lloyds Bank plc (Lloyds Bank), which intends to offer and sell certain securities in the US from time to time utilising a registration statement on Form F-3 filed with the SEC by the Company. This will be accompanied by a full and unconditional guarantee by the Company. Lloyds Bank intends to utilise an exception provided in Rule 3-10 of Regulation S-X, which allows it to not file its financial statements with the SEC. In accordance with the requirements to qualify for the exception, presented below is condensed consolidating financial information for: – The Company on a stand-alone basis as guarantor; – Lloyds Bank on a stand-alone basis as issuer; – Non-guarantor subsidiaries of the Company and Lloyds Bank on a combined basis (Subsidiaries); – Consolidation adjustments; and – Lloyds Banking Group’s consolidated amounts (the Group). Under IAS 27, the Company and Lloyds Bank account for investments in their subsidiary undertakings at cost less impairment. Rule 3-10 of Regulation S-X requires a company to account for its investments in subsidiary undertakings using the equity method, which would increase/(decrease) the results of the Company and Lloyds Bank in the information below by £1,408 million and £(1,140) million, respectively, for the year ended 31 December 2017; by £(1,072) million and £(851) million, respectively, for the year ended 31 December 2016; and by £(37) million and £(10,248) million, respectively, for the year ended 31 December 2015. The net assets of the Company and Lloyds Bank in the information below would also be increased/(decreased) by £5,682 million and £(9,962) million, respectively, at 31 December 2017; and by £4,780 million and £(8,268) million, respectively, at 31 December 2016. INCOME STATEMENTS For the year ended 31 December 2017 Company Lloyds Bank Subsidiaries Consolidation Group Net interest (expense) income (121 ) 5,829 5,360 (156 ) 10,912 Other income 2,792 7,642 22,553 (9,662 ) 23,325 Total income 2,671 13,471 27,913 (9,818 ) 34,237 Insurance claims – – (15,578 ) – (15,578 ) Total income, net of insurance claims 2,671 13,471 12,335 (9,818 ) 18,659 Operating expenses (255 ) (7,201 ) (6,939 ) 2,049 (12,346 ) Trading surplus 2,416 6,270 5,396 (7,769 ) 6,313 Impairment – (462 ) (281 ) 55 (688 ) Profit before tax 2,416 5,808 5,115 (7,714 ) 5,625 Taxation (17 ) (529 ) (1,153 ) (29 ) (1,728 ) Profit for the year 2,399 5,279 3,962 (7,743 ) 3,897 For the year ended 31 December 2016 Company Lloyds Bank Subsidiaries Consolidation Group Net interest income 66 4,883 4,661 (336 ) 9,274 Other income 3,618 5,489 30,349 (9,119 ) 30,337 Total income 3,684 10,372 35,010 (9,455 ) 39,611 Insurance claims – – (22,344 ) – (22,344 ) Total income, net of insurance claims 3,684 10,372 12,666 (9,455 ) 17,267 Operating expenses (221 ) (7,722 ) (6,380 ) 1,696 (12,627 ) Trading surplus 3,463 2,650 6,286 (7,759 ) 4,640 Impairment – (620 ) (239 ) 107 (752 ) Profit before tax 3,463 2,030 6,047 (7,652 ) 3,888 Taxation (328 ) (77 ) (1,815 ) 496 (1,724 ) Profit for the year 3,135 1,953 4,232 (7,156 ) 2,164 For the year ended 31 December 2015 Company Lloyds Bank Subsidiaries Consolidation Group Net interest income 276 4,170 7,129 (257 ) 11,318 Other income 983 16,057 10,035 (15,243 ) 11,832 Total income 1,259 20,227 17,164 (15,500 ) 23,150 Insurance claims – – (5,729 ) – (5,729 ) Total income, net of insurance claims 1,259 20,227 11,435 (15,500 ) 17,421 Operating expenses (290 ) (8,994 ) (6,948 ) 845 (15,387 ) Trading surplus 969 11,233 4,487 (14,655 ) 2,034 Impairment – (265 ) (222 ) 97 (390 ) Profit before tax 969 10,968 4,265 (14,558 ) 1,644 Taxation (72 ) (57 ) (803 ) 244 (688 ) Profit for the year 897 10,911 3,462 (14,314 ) 956 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME For the year ended 31 December 2017 Company Lloyds Bank Subsidiaries Consolidation Group Profit (loss) for the year 2,399 5,279 3,962 (7,743 ) 3,897 Other comprehensive income Items that will not subsequently be reclassified to profit or loss: Post–retirement defined benefit scheme remeasurements: Remeasurements before taxation – 442 186 – 628 Taxation – (110 ) (36 ) – (146 ) – 332 150 – 482 Gains and losses attributable to own credit risk: Gains (losses) before taxation – (55 ) – – (55 ) Taxation – 15 – – 15 – (40 ) – – (40 ) Items that may subsequently be reclassified to profit or loss: Movements in revaluation reserve in respect of available-for-sale financial assets: Change in fair value – 231 38 34 303 Income statement transfers in respect of disposals – (333 ) (131 ) 18 (446 ) Income statement transfers in respect of impairment – – 9 (3 ) 6 Taxation – 46 17 – 63 – (56 ) (67 ) 49 (74 ) Movements in cash flow hedging reserve: Effective portion of changes in fair value – 15 (136 ) (242 ) (363 ) Net income statement transfers – (436 ) 46 (261 ) (651 ) Taxation – 130 23 130 283 – (291 ) (67 ) (373 ) (731 ) Currency translation differences (tax: nil) – (5 ) (27 ) – (32 ) Other comprehensive income for the year, net of tax – (60 ) (11 ) (324 ) (395 ) Total comprehensive income for the year 2,399 5,219 3,951 (8,067 ) 3,502 Total comprehensive income attributable to ordinary shareholders 1,984 4,946 3,740 (7,673 ) 2,997 Total comprehensive income attributable to other equity holders 415 273 121 (394 ) 415 Total comprehensive income attributable to equity holders 2,399 5,219 3,861 (8,067 ) 3,412 Total comprehensive income attributable to non-controlling interests – – 90 – 90 Total comprehensive income for the year 2,399 5,219 3,951 (8,067 ) 3,502 For the year ended 31 December 2016 Company Lloyds Bank Subsidiaries Consolidation Group Profit (loss) for the year 3,135 1,953 4,232 (7,156 ) 2,164 Other comprehensive income Items that will not subsequently be reclassified to profit or loss: Post-retirement defined benefit scheme remeasurements: Remeasurements before taxation – (682 ) (666 ) – (1,348 ) Taxation – 184 136 – 320 – (498 ) (530 ) – (1,028 ) Items that may subsequently be reclassified to profit or loss: Movements in revaluation reserve in respect of available-for-sale financial assets: Adjustment on transfer from held-to-maturity portfolio – 1,544 – – 1,544 Change in fair value – 268 84 4 356 Income statement transfers in respect of disposals – (507 ) (68 ) – (575 ) Income statement transfers in respect of impairment – 172 1 – 173 Taxation – (269 ) (32 ) – (301 ) – 1,208 (15 ) 4 1,197 Movements in cash flow hedging reserve: Effective portion of changes in fair value – 1,290 125 1,017 2,432 Net income statement transfers – (241 ) (233 ) (83 ) (557 ) Taxation – (258 ) 29 (237 ) (466 ) 791 (79 ) 697 1,409 Currency translation differences (tax: nil) – 19 44 (67 ) (4 ) Other comprehensive income for the year, net of tax – 1,520 (580 ) 634 1,574 Total comprehensive income for the year 3,135 3,473 3,652 (6,522 ) 3,738 Total comprehensive income attributable to ordinary shareholders 2,723 3,354 3,450 (6,302 ) 3,225 Total comprehensive income attributable to other equity holders 412 119 101 (220 ) 412 Total comprehensive income attributable to equity holders 3,135 3,473 3,551 (6,522 ) 3,637 Total comprehensive income attributable to non-controlling interests – – 101 – 101 Total comprehensive income for the year 3,135 3,473 3,652 (6,522 ) 3,738 For the year ended 31 December 2015 Company Lloyds Bank Subsidiaries Consolidation Group Profit (loss) for the year 897 10,911 3,462 (14,314 ) 956 Other comprehensive income Items that will not subsequently be reclassified to profit or loss: Post-retirement defined benefit scheme remeasurements: Remeasurements before taxation – 31 (305 ) – (274 ) Taxation – (1 ) 60 – 59 – 30 (245 ) – (215 ) Items that may subsequently be reclassified to profit or loss: Movements in revaluation reserve in respect of available-for-sale financial assets: Change in fair value – (300 ) (27 ) 9 (318 ) Income statement transfers in respect of disposals – (14 ) (37 ) – (51 ) Income statement transfers in respect of impairment – 1 38 (35 ) 4 Taxation – (17 ) 2 9 (6 ) – (330 ) (24 ) (17 ) (371 ) Movements in cash flow hedging reserve: Effective portion of changes in fair value – 294 183 60 537 Net income statement transfers – (421 ) (557 ) 22 (956 ) Taxation – (76 ) 59 24 7 – (203 ) (315 ) 106 (412 ) Currency translation differences (tax: nil) – (13 ) 52 (81 ) (42 ) Other comprehensive income for the year, net of tax – (516 ) (532 ) 8 (1,040 ) Total comprehensive income for the year 897 10,395 2,930 (14,306 ) (84 ) Total comprehensive income attributable to ordinary shareholders 503 10,395 2,834 (14,306 ) (574 ) Total comprehensive income attributable to other equity holders 394 – – – 394 Total comprehensive income attributable to equity holders 897 10,395 2,834 (14,306 ) (180 ) Total comprehensive income attributable to non-controlling interests – – 96 – 96 Total comprehensive income for the year 897 10,395 2,930 (14,306 ) (84 ) BALANCE SHEETS At 31 December 2017 Company Lloyds Bank Subsidiaries Consolidation Group Assets Cash and balances at central banks – 55,835 2,686 – 58,521 Items in course of collection from banks – 490 265 – 755 Trading and other financial assets at fair value through profit or loss – 43,977 126,864 (7,963 ) 162,878 Derivative financial instruments 265 26,764 14,785 (15,980 ) 25,834 Loans and receivables: Loans and advances to banks – 3,611 2,975 25 6,611 Loans and advances to customers – 170,804 294,463 7,231 472,498 Debt securities – 3,182 420 41 3,643 Due from fellow Lloyds Banking Group undertakings 14,698 180,772 119,914 (315,384 ) – Available-for-sale financial assets – 42,566 1,582 (2,050 ) 42,098 Goodwill – – 2,332 (22 ) 2,310 Value of in-force business – – 4,590 249 4,839 Other intangible assets – 1,415 345 1,075 2,835 Property, plant and equipment – 3,252 9,526 (51 ) 12,727 Current tax recoverable 724 – 26 (734 ) 16 Deferred tax assets 22 1,995 2,285 (2,018 ) 2,284 Retirement benefit assets – 673 69 (19 ) 723 Investment in subsidiary undertakings, including assets held for sale 44,863 40,500 – (85,363 ) – Other assets 961 1,117 12,107 (648 ) 13,537 Total assets 61,533 576,953 595,234 (421,611 ) 812,109 Equity and liabilities Liabilities Deposits from banks – 7,538 22,268 (2 ) 29,804 Customer deposits – 234,397 183,830 (103 ) 418,124 Due to fellow Lloyds Banking Group undertakings 2,168 112,769 179,952 (294,889 ) – Items in course of transmission to banks – 304 280 – 584 Trading and other financial liabilities at fair value through profit or loss – 51,045 53 (221 ) 50,877 Derivative financial instruments 327 28,267 13,510 (15,980 ) 26,124 Notes in circulation – – 1,313 – 1,313 Debt securities in issue 10,886 66,249 15,847 (20,532 ) 72,450 Liabilities arising from insurance contracts and participating investment contracts – – 103,434 (21 ) 103,413 Liabilities arising from non-participating investment contracts – – 15,447 – 15,447 Other liabilities 935 3,425 18,480 (2,110 ) 20,730 Retirement benefit obligations – 143 134 81 358 Current tax liabilities – 105 1,242 (1,073 ) 274 Deferred tax liabilities – – 779 (779 ) – Other provisions – 2,593 2,865 88 5,546 Subordinated liabilities 3,993 9,341 8,288 (3,700 ) 17,922 Total liabilities 18,309 516,176 567,722 (339,241 ) 762,966 Equity Shareholders’ equity 37,869 57,560 25,470 (77,348 ) 43,551 Other equity instruments 5,355 3,217 1,805 (5,022 ) 5,355 Total equity excluding non-controlling interests 43,224 60,777 27,275 (82,370 ) 48,906 Non-controlling interests – – 237 – 237 Total equity 43,224 60,777 27,512 (82,370 ) 49,143 Total equity and liabilities 61,533 576,953 595,234 (421,611 ) 812,109 At 31 December 2016 Company Lloyds Bank Subsidiaries Consolidation Group Assets Cash and balances at central banks – 44,595 2,857 – 47,452 Items in course of collection from banks – 512 194 – 706 Trading and other financial assets at fair value through profit or loss – 48,309 112,154 (9,289 ) 151,174 Derivative financial instruments 461 36,714 18,737 (19,774 ) 36,138 Loans and receivables: Loans and advances to banks – 4,379 22,498 25 26,902 Loans and advances to customers – 161,161 290,036 6,761 457,958 Debt securities – 2,818 528 51 3,397 Due from fellow Lloyds Banking Group undertakings 7,021 152,260 104,314 (263,595 ) – Available-for-sale financial assets – 55,122 3,274 (1,872 ) 56,524 Goodwill – – 2,343 (327 ) 2,016 Value of in-force business – – 4,761 281 5,042 Other intangible assets – 893 314 474 1,681 Property, plant and equipment – 3,644 9,263 65 12,972 Current tax recoverable 465 420 26 (883 ) 28 Deferred tax assets 38 2,286 1,503 (1,121 ) 2,706 Retirement benefit assets – 254 86 2 342 Investment in subsidiary undertakings, including assets held for sale 44,188 38,757 – (82,945 ) – Other assets 959 1,168 11,613 (985 ) 12,755 Total assets 53,132 553,292 584,501 (373,132 ) 817,793 Equity and liabilities Liabilities Deposits from banks – 9,450 6,936 (2 ) 16,384 Customer deposits – 213,135 202,433 (108 ) 415,460 Due to fellow Lloyds Banking Group undertakings 2,690 86,803 149,152 (238,645 ) – Items in course of transmission to banks – 292 256 – 548 Trading and other financial liabilities at fair value through profit or loss – 55,776 945 (2,217 ) 54,504 Derivative financial instruments – 38,591 16,107 (19,774 ) 34,924 Notes in circulation – – 1,402 – 1,402 Debt securities in issue 2,455 74,366 22,336 (22,843 ) 76,314 Liabilities arising from insurance contracts and participating investment contracts – – 94,409 (19 ) 94,390 Liabilities arising from non-participating investment contracts – – 20,112 – 20,112 Other liabilities 413 3,295 27,668 (2,183 ) 29,193 Retirement benefit obligations – 399 420 3 822 Current tax liabilities – 3 1,390 (1,167 ) 226 Deferred tax liabilities – – – – – Other provisions – 2,833 2,355 30 5,218 Subordinated liabilities 4,329 10,575 10,648 (5,721 ) 19,831 Total liabilities 9,887 495,518 556,569 (292,646 ) 769,328 Equity Shareholders’ equity 37,890 54,557 25,687 (75,464 ) 42,670 Other equity instruments 5,355 3,217 305 (3,522 ) 5,355 Total equity excluding non-controlling interests 43,245 57,774 25,992 (78,986 ) 48,025 Non-controlling interests – – 1,940 (1,500 ) 440 Total equity 43,245 57,774 27,932 (80,486 ) 48,465 Total equity and liabilities 53,132 553,292 584,501 (373,132 ) 817,793 CASH FLOW STATEMENTS For the year ended 31 December 2017 Company Lloyds Bank Subsidiaries Consolidation Group Net cash (used in) provided by operating activities 8,221 (3,430 ) (5,959 ) (2,027 ) (3,195 ) Cash flows from investing activities Dividends received from subsidiary undertakings 2,650 4,378 – (7,028 ) – Distributions on other equity instruments received 292 101 – (393 ) – Return of capital contributions 77 – – (77 ) – Available-for-sale financial assets: Purchases – (7,550 ) (482 ) 170 (7,862 ) Proceeds from sale and maturity – 16,480 2,195 – 18,675 Purchase of fixed assets – (1,155 ) (2,500 ) – (3,655 ) Proceeds from sale of fixed assets – 85 1,359 – 1,444 Additional capital lending to subsidiaries (8,476 ) (34 ) – 8,510 – Capital repayments by subsidiaries 475 – – (475 ) – Interest received on lending to Lloyds Bank 244 – – (244 ) – Acquisition of businesses, net of cash acquired (320 ) (2,026 ) (622 ) 1,045 (1,923 ) Disposal of businesses, net of cash disposed – 592 129 (592 ) 129 Net cash flows from investing activities (5,058 ) 10,871 79 916 6,808 Cash flows from financing activities Dividends paid to equity shareholders (2,284 ) (2,650 ) (4,378 ) 7,028 (2,284 ) Distributions on other equity instruments (415 ) (273 ) (120 ) 393 (415 ) Dividends paid to non-controlling interests – – (51 ) – (51 ) Interest paid on subordinated liabilities (248 ) (668 ) (700 ) 341 (1,275 ) Proceeds from issue of subsordinated liabilities – – – – – Proceeds from issue of ordinary shares 14 – – – 14 Repayment of subordinated liabilities – (675 ) (1,132 ) 799 (1,008 ) Capital contributions received – – – – – Changes in non-controlling interests – – – – – Return of capital contribution – (77 ) – 77 – Capital borrowing from the Company – 8,476 – (8,476 ) – Capital repayments to parent company – (475 ) – 475 – Interest paid on borrowing from the Company – (244 ) – 244 – Net cash used in financing activities (2,933 ) 3,414 (6,381 ) 881 (5,019 ) Effects of exchange rate changes on cash and cash equivalents – (1 ) 1 – – Change in cash and cash equivalents 230 10,854 (12,260 ) (230 ) (1,406 ) Cash and cash equivalents at beginning of year 42 45,266 17,122 (42 ) 62,388 Cash and cash equivalents at end of year 272 56,120 4,862 (272 ) 60,982 For the year ended 31 December 2016 Company Lloyds Bank Subsidiaries Consolidation Group Net cash provided by (used in) operating activities (7,550 ) 1,073 11,131 (2,580 ) 2,074 Cash flows from investing activities Dividends received from subsidiary undertakings 3,759 3,984 – (7,743 ) – Distributions on other equity instruments received 119 – – (119 ) – Return of capital contributions 441 – – (441 ) – Available-for-sale financial assets and held-to-maturity investments: Purchases – (4,664 ) (322 ) 56 (4,930 ) Proceeds from sale and maturity – 6,429 2,350 (2,444 ) 6,335 Purchase of fixed assets – (1,122 ) (2,638 ) – (3,760 ) Proceeds from sale of fixed assets – 19 1,665 – 1,684 Purchase of other equity instruments issued by subsidiaries – – – – – Capital lending to Lloyds Bank – – – – – Capital repayments by Lloyds Bank – – – – – Additional capital lending to subsidiaries (4,978 ) – – 4,978 – Capital repayments by subsidiaries 13,166 – – (13,166 ) – Interest received on lending to Lloyds Bank 496 – – (496 ) – Additional capital injections to subsidiaries (3,522 ) (309 ) – 3,831 – Acquisition of businesses, net of cash acquired – – (20 ) – (20 ) Disposal of businesses, net of cash disposed – 231 5 (231 ) 5 Net cash flows from investing activities 9,481 4,568 1,040 (15,775 ) (686 ) Cash flows from financing activities Dividends paid to ordinary shareholders (2,014 ) (3,040 ) (4,602 ) 7,642 (2,014 ) Distributions on other equity instruments (412 ) (119 ) (101 ) 220 (412 ) Dividends paid to non-controlling interests – – (29 ) – (29 ) Interest paid on subordinated liabilities (229 ) (1,516 ) (893 ) 951 (1,687 ) Proceeds from issue of subordinated liabilities 1,061 2,753 – (2,753 ) 1,061 Repayment of subordinated liabilities (319 ) (13,200 ) (4,952 ) 10,586 (7,885 ) Proceeds from issue of other equity instruments – 3,217 305 (3,522 ) – Capital contribution received – – 309 (309 ) – Return of capital contributions – (441 ) – 441 – Capital borrowing from the Company – – – – – Capital repayments to the Company – (3,387 ) (1,198 ) 4,585 – Interest paid on borrowing from the Company – (496 ) – 496 – Change in stake of non-controlling interests – – (8 ) – (8 ) Net cash used in financing activities (1,913 ) (16,229 ) (11,169 ) 18,337 (10,974 ) Effects of exchange rate changes on cash and cash equivalents – 2 19 – 21 Change in cash and cash equivalents 18 (10,586 ) 1,021 (18 ) (9,565 ) Cash and cash equivalents at beginning of year 24 55,852 16,101 (24 ) 71,953 Cash and cash equivalents at end of year 42 45,266 17,122 (42 ) 62,388 For the year ended 31 December 2015 Company £m Lloyds Bank £m Subsidiaries £m Consolidation adjustments £m Group £m Net cash provided by (used in) operating activities (1,718 ) 8,302 7,472 2,316 16,372 Cash flows from investing activities Dividends received from subsidiary undertakings 1,080 12,820 – (13,900 ) – Return of capital contributions 600 – – (600 ) – Available-for-sale financial assets and held-to-maturity investments: Purchases – (7,903 ) (13,593 ) 2,142 (19,354 ) Proceeds from sale and maturity – 7,055 14,945 – 22,000 Purchase of fixed assets – (1,279 ) (2,138 ) – (3,417 ) Proceeds from sale of fixed assets – 61 1,476 – 1,537 Additional capital injections to subsidiaries – (64 ) – 64 – Purchase of other equity instruments issued by subsidiaries – (1,500 ) – 1,500 – Capital lending to Lloyds Bank (1,157 ) – – 1,157 – Capital repayments by Lloyds Bank 570 – – (570 ) – Interest received on lending to Lloyds Bank 763 – – (763 ) – Acquisition of businesses, net of cash acquired – – (5 ) – (5 ) Disposal of businesses, net of cash disposed – 850 122 (5,043 ) (4,071 ) Net cash flows from investing activities 1,856 10,040 807 (16,013 ) (3,310 ) Cash flows from financing activities Dividends paid to ordinary shareholders (1,070 ) (1,080 ) (12,820 ) 13,900 (1,070 ) Distributions on other equity instruments (394 ) – – – (394 ) Dividends paid to non-controlling interests – – (52 ) – (52 ) Interest paid on subordinated liabilities (129 ) (1,755 ) (956 ) 1,000 (1,840 ) Proceeds from issue of subordinated liabilities 1,436 – – (1,098 ) 338 Repayment of subordinated liabilities (152 ) (1,266 ) (2,151 ) 370 (3,199 ) Capital contributions received – – 165 (165 ) – Return of capital contributions – (600 ) – 600 – Capital borrowing from the Company – 1,157 – (1,157 ) – Capital repayments to the Company – (1,155 ) – 1,155 – Interest paid on borrowing from the Company – (763 ) – 763 – Changes in non-controlling interests – – 1,459 (1,500 ) (41 ) Net cash used in financing activities (309 ) (5,462 ) (14,355 ) 13,868 (6,258 ) Effects of exchange rate changes on cash and cash equivalents – – 2 – 2 Change in cash and cash equivalents (171 ) 12,880 (6,074 ) 171 6,806 Cash and cash equivalents at beginning of year 195 42,972 22,175 (195 ) 65,147 Cash and cash equivalents at end of year 24 55,852 16,101 (24 ) 71,953 |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Description of accounting policy for consolidation [text block] | Consolidation The assets, liabilities and results of Group undertakings (including structured entities) are included in the financial statements on the basis of accounts made up to the reporting date. Group undertakings include subsidiaries, associates and joint ventures. (1) SUBSIDIARIES Subsidiaries are entities controlled by the Group. The Group controls an entity when it has power over the entity, is exposed to, or has rights to, variable returns from its involvement with the entity, and has the ability to affect those returns through the exercise of its power. This generally accompanies a shareholding of more than one half of the voting rights although in certain circumstances a holding of less than one half of the voting rights may still result in the ability of the Group to exercise control. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether the Group controls another entity. The Group reassesses whether or not it controls an entity if facts and circumstances indicate that there are changes to any of the above elements. Subsidiaries are fully consolidated from the date on which control is transferred to the Group; they are de-consolidated from the date that control ceases. The Group consolidates collective investment vehicles if its beneficial ownership interests give it substantive rights to remove the external fund manager over the investment activities of the fund. Where a subsidiary of the Group is the fund manager of a collective investment vehicle, the Group considers a number of factors in determining whether it acts as principal, and therefore controls the collective investment vehicle, including: an assessment of the scope of the Group’s decision making authority over the investment vehicle; the rights held by other parties including substantive removal rights without cause over the Group acting as fund manager; the remuneration to which the Group is entitled in its capacity as decision maker; and the Group’s exposure to variable returns from the beneficial interest it holds in the investment vehicle. Consolidation may be appropriate in circumstances where the Group has less than a majority beneficial interest. Where a collective investment vehicle is consolidated the interests of parties other than the Group are reported in other liabilities and the movement in these interests in interest expense. Structured entities are entities that are designed so that their activities are not governed by way of voting rights. In assessing whether the Group has power over such entities in which it has an interest, the Group considers factors such as the purpose and design of the entity; its practical ability to direct the relevant activities of the entity; the nature of the relationship with the entity; and the size of its exposure to the variability of returns of the entity. The treatment of transactions with non-controlling interests depends on whether, as a result of the transaction, the Group loses control of the subsidiary. Changes in the parent’s ownership interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions; any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognised directly in equity and attributed to the owners of the parent entity. Where the Group loses control of the subsidiary, at the date when control is lost the amount of any non-controlling interest in that former subsidiary is derecognised and any investment retained in the former subsidiary is remeasured to its fair value; the gain or loss that is recognised in profit or loss on the partial disposal of the subsidiary includes the gain or loss on the remeasurement of the retained interest. Intercompany transactions, balances and unrealised gains and losses on transactions between Group companies are eliminated. The acquisition method of accounting is used to account for business combinations by the Group. The consideration for the acquisition of a subsidiary is the fair value of the assets transferred, the liabilities incurred and the equity interests issued by the Group. The consideration includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Acquisition related costs are expensed as incurred except those relating to the issuance of debt instruments (see (E)(5) below) or share capital (see (P) below). Identifiable assets acquired and liabilities assumed in a business combination are measured initially at their fair value at the acquisition date. (2) JOINT VENTURES AND ASSOCIATES Joint ventures are joint arrangements over which the Group has joint control with other parties and has rights to the net assets of the arrangements. Associates are entities over which the Group has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the entity, but is not control or joint control of those policies, and is generally achieved through holding between 20 per cent and 50 per cent of the voting share capital of the entity. The Group utilises the venture capital exemption for investments where significant influence or joint control is present and the business unit operates as a venture capital business. These investments are designated at initial recognition at fair value through profit or loss. Otherwise, the Group’s investments in joint ventures and associates are accounted for by the equity method of accounting. |
Description of accounting policy for goodwill [text block] | Goodwill Goodwill arises on business combinations and represents the excess of the cost of an acquisition over the fair value of the Group’s share of the identifiable assets, liabilities and contingent liabilities acquired. Where the fair value of the Group’s share of the identifiable assets, liabilities and contingent liabilities of the acquired entity is greater than the cost of acquisition, the excess is recognised immediately in the income statement. Goodwill is recognised as an asset at cost and is tested at least annually for impairment. If an impairment is identified the carrying value of the goodwill is written down immediately through the income statement and is not subsequently reversed. At the date of disposal of a subsidiary, the carrying value of attributable goodwill is included in the calculation of the profit or loss on disposal. |
Description of accounting policy for intangible assets other than goodwill [text block] | Other intangible assets Intangible assets which have been determined to have a finite useful life are amortised on a straight line basis over their estimated useful life as follows: up to 7 years for capitalised software; 10 to 15 years for brands and other intangibles. Intangible assets with finite useful lives are reviewed at each reporting date to assess whether there is any indication that they are impaired. If any such indication exists the recoverable amount of the asset is determined and in the event that the asset’s carrying amount is greater than its recoverable amount, it is written down immediately. Certain brands have been determined to have an indefinite useful life and are not amortised. Such intangible assets are reassessed annually to reconfirm that an indefinite useful life remains appropriate. In the event that an indefinite life is inappropriate a finite life is determined and an impairment review is performed on the asset. |
Description of accounting policy for recognition of revenue [text block] | Revenue recognition Interest income and expense are recognised in the income statement for all interest-bearing financial instruments using the effective interest method, except for those classified at fair value through profit or loss. The effective interest method is a method of calculating the amortised cost of a financial asset or liability and of allocating the interest income or interest expense over the expected life of the financial instrument. The effective interest rate is the rate that exactly discounts the estimated future cash payments or receipts over the expected life of the financial instrument or, when appropriate, a shorter period, to the net carrying amount of the financial asset or financial liability, including early redemption fees, and related penalties; and premiums and discounts that are an integral part of the overall return. Direct incremental transaction costs related to the acquisition, issue or disposal of a financial instrument are also taken into account. Fees and commissions which are not an integral part of the effective interest rate are generally recognised when the service has been provided. Loan commitment fees for loans that are likely to be drawn down are deferred (together with related direct costs) and recognised as an adjustment to the effective interest rate on the loan once drawn. Where it is unlikely that loan commitments will be drawn, loan commitment fees are recognised over the life of the facility. Dividend income is recognised when the right to receive payment is established. Revenue recognition policies specific to life insurance and general insurance business are detailed below (see (M) below); those relating to leases are set out in (J)(2) below. |
Description of accounting policy for financial assets and liabilities policy [text block] | Financial assets and liabilities On initial recognition, financial assets are classified into fair value through profit or loss, available-for-sale financial assets, held-to-maturity investments or loans and receivables. Financial liabilities are measured at amortised cost, except for trading liabilities and other financial liabilities designated at fair value through profit or loss on initial recognition which are held at fair value. The Group initially recognises loans and receivables, deposits, debt securities in issue and subordinated liabilities when the Group becomes a party to the contractual provisions of the instrument. Regular way purchases and sales of securities and other financial assets and trading liabilities are recognised on trade date, being the date that the Group is committed to purchase or sell an asset. Financial assets are derecognised when the contractual right to receive cash flows from those assets has expired or when the Group has transferred its contractual right to receive the cash flows from the assets and either: substantially all of the risks and rewards of ownership have been transferred; or the Group has neither retained nor transferred substantially all of the risks and rewards, but has transferred control. Financial liabilities are derecognised when they are extinguished (i.e. when the obligation is discharged), cancelled or expire. (1) FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS Financial instruments are classified at fair value through profit or loss where they are trading securities or where they are designated at fair value through profit or loss by management. Derivatives are carried at fair value (see (F) below). Held for trading: Classified at fair value through profit and loss: – it eliminates or significantly reduces the inconsistent treatment that would otherwise arise from measuring the assets and liabilities or recognising gains or losses on different bases. The main type of financial assets designated by the Group at fair value through profit or loss are assets backing insurance contracts and investment contracts issued by the Group’s life insurance businesses. Fair value designation allows changes in the fair value of these assets to be recorded in the income statement along with the changes in the value of the associated liabilities, thereby significantly reducing the measurement inconsistency had the assets been classified as available-for-sale financial assets. – the assets and liabilities are part of a group which is managed, and its performance evaluated, on a fair value basis in accordance with a documented risk management or investment strategy, with management information also prepared on this basis. – where the assets and liabilities contain one or more embedded derivatives that significantly modify the cash flows arising under the contract and would otherwise need to be separately accounted for. The fair values of assets and liabilities traded in active markets are based on current bid and offer prices respectively. If the market is not active the Group establishes a fair value by using valuation techniques. Refer to note 48(3) (Financial instruments: Financial assets and liabilities carried at fair value) for details of valuation techniques and significant inputs to valuation models. (2) AVAILABLE-FOR-SALE FINANCIAL ASSETS Debt securities and equity shares that are not classified as trading securities, at fair value through profit or loss, held-to-maturity investments or as loans and receivables are classified as available-for-sale financial assets and are recognised in the balance sheet at their fair value, inclusive of transaction costs. Such assets are intended to be held for an indeterminate period of time and may be sold in response to needs for liquidity or changes in interest rates, exchange rates or equity prices. Gains and losses arising from changes in the fair value of investments classified as available-for-sale are recognised directly in other comprehensive income, until the financial asset is either sold, becomes impaired or matures, at which time the cumulative gain or loss previously recognised in other comprehensive income is recognised in the income statement. Interest calculated using the effective interest method and foreign exchange gains and losses on debt securities denominated in foreign currencies are recognised in the income statement. The Group is permitted to transfer a financial asset from the available-for-sale category to the loans and receivables category where that asset would otherwise have met the definition of loans and receivables at the time of reclassification and where there is both the intention and ability to hold that financial asset for the foreseeable future. Reclassification of a financial asset from the available-for-sale category to the held-to-maturity category is permitted when the Group has the ability and intent to hold that financial asset to maturity. Reclassifications are made at fair value as of the reclassification date. Fair value becomes the new cost or amortised cost as applicable. Effective interest rates for financial assets reclassified to the loans and receivables and held-to-maturity categories are determined at the reclassification date. Any previous gain or loss on a transferred asset that has been recognised in equity is amortised to profit or loss over the remaining life of the investment using the effective interest method or until the asset becomes impaired. Any difference between the new amortised cost and the expected cash flows is also amortised over the remaining life of the asset using the effective interest method. When an impairment loss is recognised in respect of available-for-sale assets transferred, the unamortised balance of any available-for-sale reserve that remains in equity is transferred to the income statement and recorded as part of the impairment loss. (3) LOANS AND RECEIVABLES Loans and receivables include loans and advances to banks and customers and eligible assets including those transferred into this category out of the fair value through profit or loss or available-for-sale financial assets categories. Loans and receivables are initially recognised when cash is advanced to the borrowers at fair value inclusive of transaction costs or, for eligible assets transferred into this category, their fair value at the date of transfer. Financial assets classified as loans and receivables are accounted for at amortised cost using the effective interest method (see (D) above) less provision for impairment (see (H) below). The Group has entered into securitisation and similar transactions to finance certain loans and advances to customers. In cases where the securitisation vehicles are funded by the issue of debt, on terms whereby the majority of the risks and rewards of the portfolio of securitised lending are retained by the Group, these loans and advances continue to be recognised by the Group, together with a corresponding liability for the funding. (4) BORROWINGS Borrowings (which include deposits from banks, customer deposits, debt securities in issue and subordinated liabilities) are recognised initially at fair value, being their issue proceeds net of transaction costs incurred. These instruments are subsequently stated at amortised cost using the effective interest method. Preference shares and other instruments which carry a mandatory coupon or are redeemable on a specific date are classified as financial liabilities. The coupon on these instruments is recognised in the income statement as interest expense. Securities which carry a discretionary coupon and have no fixed maturity or redemption date are classified as other equity instruments. Interest payments on these securities are recognised, net of tax, as distributions from equity in the period in which they are paid. An exchange of financial liabilities on substantially different terms is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. The difference between the carrying amount of a financial liability extinguished and the new financial liability is recognised in profit or loss together with any related costs or fees incurred. When a financial liability is exchanged for an equity instrument, the new equity instrument is recognised at fair value and any difference between the original carrying value of the liability and the fair value of the new equity is recognised in the profit or loss. (5) SALE AND REPURCHASE AGREEMENTS (INCLUDING SECURITIES LENDING AND BORROWING) Securities sold subject to repurchase agreements (repos) continue to be recognised on the balance sheet where substantially all of the risks and rewards are retained. Funds received under these arrangements are included in deposits from banks, customer deposits, or trading liabilities. Conversely, securities purchased under agreements to resell (reverse repos), where the Group does not acquire substantially all of the risks and rewards of ownership, are recorded as loans and receivables or trading securities. The difference between sale and repurchase price is treated as interest and accrued over the life of the agreements using the effective interest method. Securities borrowing and lending transactions are typically secured; collateral takes the form of securities or cash advanced or received. Securities lent to counterparties are retained on the balance sheet. Securities borrowed are not recognised on the balance sheet, unless these are sold to third parties, in which case the obligation to return them is recorded at fair value as a trading liability. Cash collateral given or received is treated as a loan and receivable or customer deposit. |
Description of accounting policy for derivative financial instruments and hedging [text block] | Derivative financial instruments and hedge accounting Derivatives are classified as trading except those designated as effective hedging instruments which meet the criteria under IAS 39. All derivatives are recognised at their fair value. Derivatives are carried in the balance sheet as assets when their fair value is positive and as liabilities when their fair value is negative. Refer to note 48(3) (Financial instruments: Financial assets and liabilities carried at fair value) for details of valuation techniques and significant inputs to valuation models. Changes in the fair value of any derivative instrument that is not part of a hedging relationship are recognised immediately in the income statement. Derivatives embedded in financial instruments and insurance contracts (unless the embedded derivative is itself an insurance contract) are treated as separate derivatives when their economic characteristics and risks are not closely related to those of the host contract and the host contract is not carried at fair value through profit or loss. These embedded derivatives are measured at fair value with changes in fair value recognised in the income statement. In accordance with IFRS 4 Insurance Contracts The method of recognising the movements in the fair value of derivatives depends on whether they are designated as hedging instruments and, if so, the nature of the item being hedged. Hedge accounting allows one financial instrument, generally a derivative such as a swap, to be designated as a hedge of another financial instrument such as a loan or deposit or a portfolio of such instruments. At the inception of the hedge relationship, formal documentation is drawn up specifying the hedging strategy, the hedged item, the hedging instrument and the methodology that will be used to measure the effectiveness of the hedge relationship in offsetting changes in the fair value or cash flow of the hedged risk. The effectiveness of the hedging relationship is tested both at inception and throughout its life and if at any point it is concluded that it is no longer highly effective in achieving its documented objective, hedge accounting is discontinued. (1) FAIR VALUE HEDGES Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in the income statement, together with the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk; this also applies if the hedged asset is classified as an available-for-sale financial asset. If the hedge no longer meets the criteria for hedge accounting, changes in the fair value of the hedged item attributable to the hedged risk are no longer recognised in the income statement. The cumulative adjustment that has been made to the carrying amount of the hedged item is amortised to the income statement using the effective interest method over the period to maturity. (2) CASH FLOW HEDGES The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognised in other comprehensive income in the cash flow hedge reserve. The gain or loss relating to the ineffective portion is recognised immediately in the income statement. Amounts accumulated in equity are reclassified to the income statement in the periods in which the hedged item affects profit or loss. When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss existing in equity at that time remains in equity and is recognised in the income statement when the forecast transaction is ultimately recognised in the income statement. When a forecast transaction is no longer expected to occur, the cumulative gain or loss that was reported in equity is immediately transferred to the income statement. (3) NET INVESTMENT HEDGES Hedges of net investments in foreign operations are accounted for similarly to cash flow hedges. Any gain or loss on the hedging instrument relating to the effective portion of the hedge is recognised in other comprehensive income, the gain or loss relating to the ineffective portion is recognised immediately in the income statement. Gains and losses accumulated in equity are included in the income statement when the foreign operation is disposed of. The hedging instrument used in net investment hedges may include non-derivative liabilities as well as derivative financial instruments. |
Description of accounting policy for offsetting of financial instruments [text block] | Offset Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right of set-off and there is an intention to settle on a net basis, or realise the asset and settle the liability simultaneously. Cash collateral on exchange traded derivative transactions is presented gross unless the collateral cash flows are always settled net with the derivative cash flows. In certain situations, even though master netting agreements exist, the lack of management intention to settle on a net basis results in the financial assets and liabilities being reported gross on the balance sheet. |
Description of accounting policy for impairment of financial assets [text block] | Impairment of financial assets (1) ASSETS ACCOUNTED FOR AT AMORTISED COST At each balance sheet date the Group assesses whether, as a result of one or more events occurring after initial recognition of the financial asset and prior to the balance sheet date, there is objective evidence that a financial asset or group of financial assets has become impaired. Where such an event, including the identification of fraud, has had an impact on the estimated future cash flows of the financial asset or group of financial assets, an impairment allowance is recognised. The amount of impairment allowance is the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the asset’s original effective interest rate. If the asset has a variable rate of interest, the discount rate used for measuring the impairment allowance is the current effective interest rate. Subsequent to the recognition of an impairment loss on a financial asset or a group of financial assets, interest income continues to be recognised on an effective interest rate basis, on the asset’s carrying value net of impairment provisions. If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, the allowance is adjusted and the amount of the reversal is recognised in the income statement. Impairment allowances are assessed individually for financial assets that are individually significant. Impairment allowances for portfolios of smaller balance homogenous loans such as most residential mortgages, personal loans and credit card balances that are below the individual assessment thresholds, and for loan losses that have been incurred but not separately identified at the balance sheet date, are determined on a collective basis. In certain circumstances, the Group will renegotiate the original terms of a customer’s loan, either as part of an ongoing customer relationship or in response to adverse changes in the circumstances of the borrower. Where the renegotiated payments of interest and principal will not recover the original carrying value of the asset, the asset continues to be reported as past due and is considered impaired. Where the renegotiated payments of interest and principal will recover the original carrying value of the asset, the loan is no longer reported as past due or impaired provided that payments are made in accordance with the revised terms. Renegotiation may lead to the loan and associated provision being derecognised and a new loan being recognised initially at fair value. A loan or advance is normally written off, either partially or in full, against the related allowance when the proceeds from realising any available security have been received or there is no realistic prospect of recovery and the amount of the loss has been determined. Subsequent recoveries of amounts previously written off decrease the amount of impairment losses recorded in the income statement. For both secured and unsecured retail balances, the write-off takes place only once an extensive set of collections processes has been completed, or the status of the account reaches a point where policy dictates that forbearance is no longer appropriate. For commercial lending, a write-off occurs if the loan facility with the customer is restructured, the asset is under administration and the only monies that can be received are the amounts estimated by the administrator, the underlying assets are disposed and a decision is made that no further settlement monies will be received, or external evidence (for example, third party valuations) is available that there has been an irreversible decline in expected cash flows. (2) AVAILABLE-FOR-SALE FINANCIAL ASSETS The Group assesses, at each balance sheet date, whether there is objective evidence that an available-for-sale financial asset is impaired. In addition to the criteria for financial assets accounted for at amortised cost set out above, this assessment involves reviewing the current financial circumstances (including creditworthiness) and future prospects of the issuer, assessing the future cash flows expected to be realised and, in the case of equity shares, considering whether there has been a significant or prolonged decline in the fair value of the asset below its cost. If an impairment loss has been incurred, the cumulative loss measured as the difference between the acquisition cost (net of any principal repayment and amortisation) and the current fair value, less any impairment loss on that asset previously recognised, is reclassified from equity to the income statement. For impaired debt instruments, impairment losses are recognised in subsequent periods when it is determined that there has been a further negative impact on expected future cash flows; a reduction in fair value caused by general widening of credit spreads would not, of itself, result in additional impairment. If, in a subsequent period, the fair value of a debt instrument classified as available-for-sale increases and the increase can be objectively related to an event occurring after the impairment loss was recognised, an amount not greater than the original impairment loss is credited to the income statement; any excess is taken to other comprehensive income. Impairment losses recognised in the income statement on equity instruments are not reversed through the income statement. |
Description of accounting policy for property, plant and equipment [text block] | Property, plant and equipment Property, plant and equipment (other than investment property) is included at cost less accumulated depreciation. The value of land (included in premises) is not depreciated. Depreciation on other assets is calculated using the straight-line method to allocate the difference between the cost and the residual value over their estimated useful lives, as follows: the shorter of 50 years and the remaining period of the lease for freehold/long and short leasehold premises; the shorter of 10 years and, if lease renewal is not likely, the remaining period of the lease for leasehold improvements; 10 to 20 years for fixtures and furnishings; and 2 to 8 years for other equipment and motor vehicles. The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date. Assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. In the event that an asset’s carrying amount is determined to be greater than its recoverable amount it is written down immediately. The recoverable amount is the higher of the asset’s fair value less costs to sell and its value in use. Investment property comprises freehold and long leasehold land and buildings that are held either to earn rental income or for capital accretion or both, primarily within the life insurance funds. In accordance with the guidance published by the Royal Institution of Chartered Surveyors, investment property is carried at fair value based on current prices for similar properties, adjusted for the specific characteristics of the property (such as location or condition). If this information is not available, the Group uses alternative valuation methods such as discounted cash flow projections or recent prices in less active markets. These valuations are reviewed at least annually by independent professionally qualified valuers. Investment property being redeveloped for continuing use as investment property, or for which the market has become less active, continues to be valued at fair value. |
Description of accounting policy for leases [text block] | Leases (1) AS LESSEE The leases entered into by the Group are primarily operating leases. Operating lease rentals payable are charged to the income statement on a straight-line basis over the period of the lease. When an operating lease is terminated before the end of the lease period, any payment made to the lessor by way of penalty is recognised as an expense in the period of termination. (2) AS LESSOR Assets leased to customers are classified as finance leases if the lease agreements transfer substantially all the risks and rewards of ownership to the lessee but not necessarily legal title. All other leases are classified as operating leases. When assets are subject to finance leases, the present value of the lease payments, together with any unguaranteed residual value, is recognised as a receivable, net of provisions, within loans and advances to banks and customers. The difference between the gross receivable and the present value of the receivable is recognised as unearned finance lease income. Finance lease income is recognised in interest income over the term of the lease using the net investment method (before tax) so as to give a constant rate of return on the net investment in the leases. Unguaranteed residual values are reviewed regularly to identify any impairment. Operating lease assets are included within tangible fixed assets at cost and depreciated over their estimated useful lives, which equates to the lives of the leases, after taking into account anticipated residual values. Operating lease rental income is recognised on a straight-line basis over the life of the lease. The Group evaluates non-lease arrangements such as outsourcing and similar contracts to determine if they contain a lease which is then accounted for separately. |
Description of accounting policy for employee benefits [text block] | Employee benefits Short-term employee benefits, such as salaries, paid absences, performance-based cash awards and social security costs are recognised over the period in which the employees provide the related services. (1) PENSION SCHEMES The Group operates a number of post-retirement benefit schemes for its employees including both defined benefit and defined contribution pension plans. A defined benefit scheme is a pension plan that defines an amount of pension benefit that an employee will receive on retirement, dependent on one or more factors such as age, years of service and salary. A defined contribution plan is a pension plan into which the Group pays fixed contributions; there is no legal or constructive obligation to pay further contributions. Scheme assets are included at their fair value and scheme liabilities are measured on an actuarial basis using the projected unit credit method. The defined benefit scheme liabilities are discounted using rates equivalent to the market yields at the balance sheet date on high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension liability. The Group’s income statement charge includes the current service cost of providing pension benefits, past service costs, net interest expense (income), and plan administration costs that are not deducted from the return on plan assets. Past service costs, which represents the change in the present value of the defined benefit obligation resulting from a plan amendment or curtailment, are recognised when the plan amendment or curtailment occurs. Net interest expense (income) is calculated by applying the discount rate at the beginning of the period to the net defined benefit liability or asset. Remeasurements, comprising actuarial gains and losses, the return on plan assets (excluding amounts included in net interest expense (income) and net of the cost of managing the plan assets), and the effect of changes to the asset ceiling (if applicable) are reflected immediately in the balance sheet with a charge or credit recognised in other comprehensive income in the period in which they occur. Remeasurements recognised in other comprehensive income are reflected immediately in retained profits and will not subsequently be reclassified to profit or loss. The Group’s balance sheet includes the net surplus or deficit, being the difference between the fair value of scheme assets and the discounted value of scheme liabilities at the balance sheet date. Surpluses are only recognised to the extent that they are recoverable through reduced contributions in the future or through refunds from the schemes. In assessing whether a surplus is recoverable, the Group considers its current right to obtain a refund or a reduction in future contributions and does not anticipate any future acts by other parties that could change the amount of the surplus that may ultimately be recovered. The costs of the Group’s defined contribution plans are charged to the income statement in the period in which they fall due. (2) SHARE-BASED COMPENSATION The Group operates a number of equity-settled, share-based compensation plans in respect of services received from certain of its employees. The value of the employee services received in exchange for equity instruments granted under these plans is recognised as an expense over the vesting period of the instruments, with a corresponding increase in equity. This expense is determined by reference to the fair value of the number of equity instruments that are expected to vest. The fair value of equity instruments granted is based on market prices, if available, at the date of grant. In the absence of market prices, the fair value of the instruments at the date of grant is estimated using an appropriate valuation technique, such as a Black-Scholes option pricing model or a Monte Carlo simulation. The determination of fair values excludes the impact of any non-market vesting conditions, which are included in the assumptions used to estimate the number of options that are expected to vest. At each balance sheet date, this estimate is reassessed and if necessary revised. Any revision of the original estimate is recognised in the income statement, together with a corresponding adjustment to equity. Cancellations by employees of contributions to the Group’s Save As You Earn plans are treated as non-vesting conditions and the Group recognises, in the year of cancellation, the amount of the expense that would have otherwise been recognised over the remainder of the vesting period. Modifications are assessed at the date of modification and any incremental charges are charged to the income statement. |
Description of accounting policy for income tax [text block] | Taxation Tax expense comprises current and deferred tax. Current and deferred tax are charged or credited in the income statement except to the extent that the tax arises from a transaction or event which is recognised, in the same or a different period, outside the income statement (either in other comprehensive income, directly in equity, or through a business combination), in which case the tax appears in the same statement as the transaction that gave rise to it. Current tax is the amount of corporate income taxes expected to be payable or recoverable based on the profit for the period as adjusted for items that are not taxable or not deductible, and is calculated using tax rates and laws that were enacted or substantively enacted at the balance sheet date. Current tax includes amounts provided in respect of uncertain tax positions when management expects that, upon examination of the uncertainty by Her Majesty’s Revenue and Customs (HMRC) or other relevant tax authority, it is more likely than not that an economic outflow will occur. Provisions reflect management’s best estimate of the ultimate liability based on their interpretation of tax law, precedent and guidance, informed by external tax advice as necessary. Changes in facts and circumstances underlying these provisions are reassessed at each balance sheet date, and the provisions are re-measured as required to reflect current information. For the Group’s long-term insurance businesses, the tax expense is analysed between tax that is payable in respect of policyholders’ returns and tax that is payable on the shareholders’ returns. This allocation is based on an assessment of the rates of tax which will be applied to the returns under the current UK tax rules. Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the balance sheet. Deferred tax is calculated using tax rates and laws that have been enacted or substantively enacted at the balance sheet date, and which are expected to apply when the related deferred tax asset is realised or the deferred tax liability is settled. Deferred tax liabilities are generally recognised for all taxable temporary differences but not recognised for taxable temporary differences arising on investments in subsidiaries where the reversal of the temporary difference can be controlled and it is probable that the difference will not reverse in the foreseeable future. Deferred tax liabilities are not recognised on temporary differences that arise from goodwill which is not deductible for tax purposes. Deferred tax assets are recognised to the extent it is probable that taxable profits will be available against which the deductible temporary differences can be utilised, and are reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax assets and liabilities are not recognised in respect of temporary differences that arise on initial recognition of assets and liabilities acquired other than in a business combination. Deferred tax is not discounted. |
Description of accounting policy for insurance contracts and related assets, liabilities, income and expense [text block] | Insurance The Group undertakes both life insurance and general insurance business. Insurance and participating investment contracts are accounted for under IFRS 4 Insurance Contracts Products sold by the life insurance business are classified into three categories: – Insurance contracts – these contracts transfer significant insurance risk and may also transfer financial risk. The Group defines significant insurance risk as the possibility of having to pay benefits on the occurrence of an insured event which are significantly more than the benefits payable if the insured event were not to occur. These contracts may or may not include discretionary participation features. – Investment contracts containing a discretionary participation feature (participating investment contracts) – these contracts do not transfer significant insurance risk, but contain a contractual right which gives the holder the right to receive, in addition to the guaranteed benefits, further additional discretionary benefits or bonuses that are likely to be a significant proportion of the total contractual benefits and the amount and timing of which is at the discretion of the Group, within the constraints of the terms and conditions of the instrument and based upon the performance of specified assets. – Non-participating investment contracts – these contracts do not transfer significant insurance risk or contain a discretionary participation feature. The general insurance business issues only insurance contracts. (1) LIFE INSURANCE BUSINESS (I) ACCOUNTING FOR INSURANCE AND PARTICIPATING INVESTMENT CONTRACTS PREMIUMS AND CLAIMS Premiums received in respect of insurance and participating investment contracts are recognised as revenue when due except for unit-linked contracts on which premiums are recognised as revenue when received. Claims are recorded as an expense on the earlier of the maturity date or the date on which the claim is notified. LIABILITIES Changes in the value of liabilities are recognised in the income statement through insurance claims. – Insurance and participating investment contracts in the Group’s with-profit funds Liabilities of the Group’s with-profit funds, including guarantees and options embedded within products written by these funds, are stated at their realistic values in accordance with the Prudential Regulation Authority’s realistic capital regime, except that projected transfers out of the funds into other Group funds are recorded in the unallocated surplus (see below). – Insurance and participating investment contracts which are not unit-linked or in the Group’s with-profit funds A liability for contractual benefits that are expected to be incurred in the future is recorded when the premiums are recognised. The liability is calculated by estimating the future cash flows over the duration of in-force policies and discounting them back to the valuation date allowing for probabilities of occurrence. The liability will vary with movements in interest rates and with the cost of life insurance and annuity benefits where future mortality is uncertain. Assumptions are made in respect of all material factors affecting future cash flows, including future interest rates, mortality and costs. – Insurance and participating investment contracts which are unit-linked Liabilities for unit-linked insurance contracts and participating investment contracts are stated at the bid value of units plus an additional allowance where appropriate (such as for any excess of future expenses over charges). The liability is increased or reduced by the change in the unit prices and is reduced by policy administration fees, mortality and surrender charges and any withdrawals. Benefit claims in excess of the account balances incurred in the period are also charged through insurance claims. Revenue consists of fees deducted for mortality, policy administration and surrender charges. UNALLOCATED SURPLUS Any amounts in the with-profit funds not yet determined as being due to policyholders or shareholders are recognised as an unallocated surplus which is shown separately from liabilities arising from insurance contracts and participating investment contracts. (II) ACCOUNTING FOR NON-PARTICIPATING INVESTMENT CONTRACTS The Group’s non-participating investment contracts are primarily unit-linked. These contracts are accounted for as financial liabilities whose value is contractually linked to the fair values of financial assets within the Group’s unitised investment funds. The value of the unit-linked financial liabilities is determined using current unit prices multiplied by the number of units attributed to the contract holders at the balance sheet date. Their value is never less than the amount payable on surrender, discounted for the required notice period where applicable. Investment returns (including movements in fair value and investment income) allocated to those contracts are recognised in the income statement through insurance claims. Deposits and withdrawals are not accounted for through the income statement but are accounted for directly in the balance sheet as adjustments to the non-participating investment contract liability. The Group receives investment management fees in the form of an initial adjustment or charge to the amount invested. These fees are in respect of services rendered in conjunction with the issue and management of investment contracts where the Group actively manages the consideration received from its customers to fund a return that is based on the investment profile that the customer selected on origination of the contract. These services comprise an indeterminate number of acts over the lives of the individual contracts and, therefore, the Group defers these fees and recognises them over the estimated lives of the contracts, in line with the provision of investment management services. Costs which are directly attributable and incremental to securing new non-participating investment contracts are deferred. This asset is subsequently amortised over the period of the provision of investment management services and its recoverability is reviewed in circumstances where its carrying amount may not be recoverable. If the asset is greater than its recoverable amount it is written down immediately through fee and commission expense in the income statement. All other costs are recognised as expenses when incurred. (III) VALUE OF IN-FORCE BUSINESS The Group recognises as an asset the value of in-force business in respect of insurance contracts and participating investment contracts. The asset represents the present value of the shareholders’ interest in the profits expected to emerge from those contracts written at the balance sheet date. This is determined after making appropriate assumptions about future economic and operating conditions such as future mortality and persistency rates and includes allowances for both non-market risk and for the realistic value of financial options and guarantees. Each cash flow is valued using the discount rate consistent with that applied to such a cash flow in the capital markets. The asset in the consolidated balance sheet is presented gross of attributable tax and movements in the asset are reflected within other operating income in the income statement. The Group’s contractual rights to benefits from providing investment management services in relation to non-participating investment contracts acquired in business combinations and portfolio transfers are measured at fair value at the date of acquisition. The resulting asset is amortised over the estimated lives of the contracts. At each reporting date an assessment is made to determine if there is any indication of impairment. Where impairment exists, the carrying value of the asset is reduced to its recoverable amount and the impairment loss recognised in the income statement. (2) GENERAL INSURANCE BUSINESS The Group both underwrites and acts as intermediary in the sale of general insurance products. Underwriting premiums are included in insurance premium income, net of refunds, in the period in which insurance cover is provided to the customer; premiums received relating to future periods are deferred in the balance sheet within liabilities arising from insurance contracts and participating investment contracts on a basis that reflects the length of time for which contracts have been in force and the projected incidence of risk over the term of the contract and only credited to the income statement when earned. Broking commission is recognised when the underwriter accepts the risk of providing insurance cover to the customer. Where appropriate, provision is made for the effect of future policy terminations based upon past experience. The underwriting business makes provision for the estimated cost of claims notified but not settled and claims incurred but not reported at the balance sheet date. The provision for the cost of claims notified but not settled is based upon a best estimate of the cost of settling the outstanding claims after taking into account all known facts. In those cases where there is insufficient information to determine the required provision, statistical techniques are used which take into account the cost of claims that have recently been settled and make assumptions about the future development of the outstanding cases. Similar statistical techniques are used to determine the provision for claims incurred but not reported at the balance sheet date. Claims liabilities are not discounted. (3) LIABILITY ADEQUACY TEST At each balance sheet date liability adequacy tests are performed to ensure the adequacy of insurance and participating investment contract liabilities net of related deferred cost assets and value of in-force business. In performing these tests current best estimates of discounted future contractual cash flows and claims handling and policy administration expenses, as well as investment income from the assets backing such liabilities, are used. Any deficiency is immediately charged to the income statement, initially by writing off the relevant assets and subsequently by establishing a provision for losses arising from liability adequacy tests. (4) REINSURANCE Contracts entered into by the Group with reinsurers under which the Group is compensated for benefits payable on one or more contracts issued by the Group are recognised as assets arising from reinsurance contracts held. Where the underlying contracts issued by the Group are classified as insurance contracts and the reinsurance contract transfers significant insurance risk on those contracts to the reinsurer, the assets arising from reinsurance contracts held are classified as insurance contracts. Where the underlying contracts issued by the Group are classified as non-participating investment contracts and the reinsurance contract transfers financial risk on those contracts to the reinsurer, the assets arising from reinsurance contracts held are classified as non-participating investment contracts. ASSETS ARISING FROM REINSURANCE CONTRACTS HELD – CLASSIFIED AS INSURANCE CONTRACTS Amounts recoverable from or due to reinsurers are measured consistently with the amounts associated with the reinsured contracts and in accordance with the terms of each reinsurance contract and are regularly reviewed for impairment. Premiums payable for reinsurance contracts are recognised as an expense when due within insurance premium income. Changes in the reinsurance recoverable assets are recognised in the income statement through insurance claims. ASSETS ARISING FROM REINSURANCE CONTRACTS HELD – CLASSIFIED AS NON-PARTICIPATING INVESTMENT CONTRACTS These contracts are accounted for as financial assets whose value is contractually linked to the fair values of financial assets within the reinsurers’ investment funds. Investment returns (including movements in fair value and investment income) allocated to these contracts are recognised in insurance claims. |
Description of accounting policy for foreign currency translation [text block] | Foreign currency translation Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (the functional currency). Foreign currency transactions are translated into the appropriate functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the income statement, except when recognised in other comprehensive income as qualifying cash flow or net investment hedges. Non-monetary assets that are measured at fair value are translated using the exchange rate at the date that the fair value was determined. Translation differences on equities and similar non-monetary items held at fair value through profit and loss are recognised in profit or loss as part of the fair value gain or loss. Translation differences on available-for-sale non-monetary financial assets, such as equity shares, are included in the fair value reserve in equity unless the asset is a hedged item in a fair value hedge. The results and financial position of all group entities that have a functional currency different from the presentation currency are translated into the presentation currency as follows: the assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on the acquisition of a foreign entity, are translated into sterling at foreign exchange rates ruling at the balance sheet date; and the income and expenses of foreign operations are translated into sterling at average exchange rates unless these do not approximate to the foreign exchange rates ruling at the dates of the transactions in which case income and expenses are translated at the dates of the transactions. Foreign exchange differences arising on the translation of a foreign operation are recognised in other comprehensive income and accumulated in a separate component of equity together with exchange differences arising from the translation of borrowings and other currency instruments designated as hedges of such investments (see (F)(3) above). On disposal or liquidation of a foreign operation, the cumulative amount of exchange differences relating to that foreign operation are reclassified from equity and included in determining the profit or loss arising on disposal or liquidation. |
Description of accounting policy for provisions [text block] | Provisions and contingent liabilities Provisions are recognised in respect of present obligations arising from past events where it is probable that outflows of resources will be required to settle the obligations and they can be reliably estimated. Contingent liabilities are possible obligations whose existence depends on the outcome of uncertain future events or those present obligations where the outflows of resources are uncertain or cannot be measured reliably. Contingent liabilities are not recognised in the financial statements but are disclosed unless they are remote. Provision is made for irrevocable undrawn loan commitments if it is probable that the facility will be drawn and result in the recognition of an asset at an amount less than the amount advanced. |
Description of accounting policy for issued capital [text block] | Share capital Incremental costs directly attributable to the issue of new shares or options or to the acquisition of a business are shown in equity as a deduction, net of tax, from the proceeds. Dividends paid on the Group’s ordinary shares are recognised as a reduction in equity in the period in which they are paid. Where the Company or any member of the Group purchases the Company’s share capital, the consideration paid is deducted from shareholders’ equity as treasury shares until they are cancelled; if these shares are subsequently sold or reissued, any consideration received is included in shareholders’ equity. |
Description of accounting policy for determining components of cash and cash equivalents [text block] | Cash and cash equivalents For the purposes of the cash flow statement, cash and cash equivalents comprise cash and non-mandatory balances with central banks and amounts due from banks with a maturity of less than three months. |
SEGMENTAL ANALYSIS (Tables)
SEGMENTAL ANALYSIS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of entity's operating segments [text block] [Abstract] | |
Schedule of Operating Segments [Text Block] | Retail Commercial Insurance Other Underlying basis Year ended 31 December 2017 Net interest income 8,706 3,086 133 395 12,320 Other income, net of insurance claims 2,217 1,761 1,846 381 6,205 Total underlying income, net of insurance claims 10,923 4,847 1,979 776 18,525 Operating lease depreciation 1 (946 ) (44 ) – (63 ) (1,053 ) Net income 9,977 4,803 1,979 713 17,472 Operating costs (4,857 ) (2,199 ) (1,040 ) (88 ) (8,184 ) Impairment (charge) credit (717 ) (115 ) – 37 (795 ) Underlying profit 4,403 2,489 939 662 8,493 External income 12,651 3,093 1,883 898 18,525 Inter-segment income (1,728 ) 1,754 96 (122 ) – Segment underlying income, net of insurance claims 10,923 4,847 1,979 776 18,525 Segment external assets 349,116 174,081 151,986 136,926 812,109 Segment customer deposits 253,127 147,588 13,770 3,639 418,124 Segment external liabilities 258,423 223,543 157,824 123,176 762,966 Other segment items reflected in income statement above: Depreciation and amortisation 1,545 259 197 369 2,370 Increase in value of in-force business – – (165 ) – (165 ) Defined benefit scheme charges 137 48 25 149 359 Other segment items: Additions to fixed assets 2,431 107 274 843 3,655 Investments in joint ventures and associates at end of year 9 – – 56 65 Retail Commercial Insurance Other Underlying Year ended 31 December 2016 1 Net interest income 8,073 2,934 80 348 11,435 Other income, net of insurance claims 2,162 1,756 1,939 208 6,065 Total underlying income, net of insurance claims 10,235 4,690 2,019 556 17,500 Operating lease depreciation 2 (775 ) (105 ) – (15 ) (895 ) Net income 9,460 4,585 2,019 541 16,605 Operating costs (4,748 ) (2,189 ) (1,046 ) (110 ) (8,093 ) Impairment (charge) credit (654 ) (17 ) – 26 (645 ) Underlying profit 4,058 2,379 973 457 7,867 External income 12,203 3,408 1,434 455 17,500 Inter-segment income (1,968 ) 1,282 585 101 – Segment underlying income, net of insurance claims 10,235 4,690 2,019 556 17,500 Segment external assets 338,939 187,405 154,782 136,667 817,793 Segment customer deposits 256,453 141,302 13,798 3,907 415,460 Segment external liabilities 264,915 230,030 160,815 113,568 769,328 Other segment items reflected in Depreciation and amortisation 1,343 313 169 555 2,380 Decrease in value of in-force business – – 472 – 472 Defined benefit scheme charges 141 49 31 66 287 Other segment items: Additions to fixed assets 2,362 126 481 791 3,760 Investments in joint ventures and associates at end of year 6 – – 53 59 Retail Commercial Insurance Other Underlying Year ended 31 December 2015 1 Net interest income 8,253 2,774 59 396 11,482 Other income, net of insurance claims 2,263 1,842 1,986 64 6,155 Total underlying income, net of insurance claims 10,516 4,616 2,045 460 17,637 Operating lease depreciation 2 (720 ) (30 ) – (14 ) (764 ) Net income 9,796 4,586 2,045 446 16,873 Operating costs (4,958 ) (2,225 ) (954 ) (174 ) (8,311 ) Impairment (charge) credit (583 ) 22 (1 ) (6 ) (568 ) TSB – – – 118 118 Underlying profit 4,255 2,383 1,090 384 8,112 External income 12,217 3,364 2,155 (99 ) 17,637 Inter-segment income (1,701 ) 1,252 (110 ) 559 – Segment underlying income, net of insurance claims 10,516 4,616 2,045 460 17,637 Segment external assets 340,263 178,110 145,737 142,578 806,688 Segment customer deposits 261,646 140,675 14,477 1,528 418,326 Segment external liabilities 270,666 235,221 150,702 103,119 759,708 Other segment items reflected in Depreciation and amortisation 1,247 203 124 538 2,112 Decrease in value of in-force business – – (162 ) – (162 ) Defined benefit scheme charges 124 32 17 142 315 Other segment items: Additions to fixed assets 2,133 155 343 786 3,417 Investments in joint ventures and associates at end of year 5 – – 42 47 1 Net of profits on disposal of operating lease assets of £32 million. 1 Restated – see page F-18. 2 Net of profits on disposal of operating lease assets of £58 million. 1 Restated – see page F-18. 2 Net of profits on disposal of operating lease assets of £66 million. |
Disclosure of reconciliation of underlying basis to statutory results [text block] | The underlying basis is the basis on which financial information is presented to the chief operating decision maker which excludes certain items included in the statutory results. The table below reconciles the statutory results to the underlying basis. Lloyds Removal of: Banking Group statutory £m Volatility and other items 1 TSB 6 Insurance gross up 2 PPI Other Underlying Year ended 31 December 2017 Net interest income 10,912 228 – 1,180 – – 12,320 Other income, net of insurance claims 7,747 (186 ) – (1,356 ) – – 6,205 Total income, net of insurance claims 18,659 42 – (176 ) – – 18,525 Operating lease depreciation 3 (1,053 ) – – – – (1,053 ) Net income 18,659 (1,011 ) – (176 ) – – 17,472 Operating expenses (12,346 ) 1,821 – 176 1,300 865 (8,184 ) Impairment (688 ) (107 ) – – – – (795 ) Profit 5,625 703 – – 1,300 865 8,493 Lloyds Removal of: Banking Volatility 4 TSB 6 Insurance 2 PPI Other Underlying Year ended 31 December 2016 Net interest income 9,274 263 – 1,898 – – 11,435 Other income, net of insurance claims 7,993 121 – (2,110 ) – 61 6,065 Total income, net of insurance claims 17,267 384 – (212 ) – 61 17,500 Operating lease depreciation 3 (895 ) – – – – (895 ) Net income 17,267 (511 ) – (212 ) – 61 16,605 Operating expenses (12,627 ) 1,948 – 212 1,350 1,024 (8,093 ) Impairment (752 ) 107 – – – – (645 ) Profit 3,888 1,544 – – 1,350 1,085 7,867 Lloyds Removal of: Banking Volatility 5 TSB 6 Insurance 2 PPI Other Underlying Year ended 31 December 2015 Net interest income 11,318 318 (192 ) 38 – – 11,482 Other income, net of insurance claims 6,103 209 (31 ) (126 ) – – 6,155 Total income, net of insurance claims 17,421 527 (223 ) (88 ) – – 17,637 Operating lease depreciation 3 (764 ) – – – – (764 ) Net income 17,421 (237 ) (223 ) (88 ) – – 16,873 Operating expenses (15,387 ) 2,065 86 88 4,000 837 (8,311 ) Impairment (390 ) (197 ) 19 – – – (568 ) TSB – – 118 – – – 118 Profit 1,644 1,631 – – 4,000 837 8,112 1 In the year ended 31 December 2017 this comprises the effects of asset sales (gain of £30 million); volatile items (gain of £263 million); liability management (loss of £14 million); the amortisation of purchased intangibles (£91 million); restructuring costs (£621 million, principally comprising costs relating to the Simplification programme; the rationalisation of the non-branch property portfolio, the work on implementing the ring-fencing requirements and the integration of MBNA); and the fair value unwind and other items (loss of £270 million). 2 The Group’s insurance businesses’ income statements include income and expenditure which are attributable to the policyholders of the Group’s long-term assurance funds. These items have no impact in total upon the profit attributable to equity shareholders and, in order to provide a clearer representation of the underlying trends within the business, these items are shown net within the underlying results. 3 Net of profits on disposal of operating lease assets of £32 million (2016: £58 million; 2015: £66 million). 4 Comprises the write-off of the ECN embedded derivative and premium paid on redemption of the remaining notes in the first quarter (loss of £790 million); the effects of asset sales (gain of £217 million); volatile items (gain of £99 million); liability management (gain of £123 million); the amortisation of purchased intangibles (£340 million); restructuring costs (£622 million, principally comprising the severance related costs related to phase II of the Simplification programme); and the fair value unwind and other items (loss of £231 million). 5 Comprises market movements on the ECN embedded derivative (loss of £101 million); the effects of asset sales (gain of £54 million); volatile items (loss of £107 million); liability management (loss of £28 million); the amortisation of purchased intangibles (£342 million); restructuring costs (£170 million); TSB costs (£745 million); and the fair value unwind and other items (loss of £192 million). 6 Comprises the underlying results of TSB. |
NET INTEREST INCOME (Tables)
NET INTEREST INCOME (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of interest income (expense) [text block] [Abstract] | |
Disclosure of interest income [text block] | Weighted average 2017 2016 2015 2017 2016 2015 Interest and similar income: Loans and advances to customers 3.16 3.32 3.50 14,712 15,190 16,256 Loans and advances to banks 0.40 0.46 0.42 271 381 397 Debt securities held as loans and receivables 1.29 1.47 1.87 43 56 40 Interest receivable on loans and receivables 2.81 2.87 2.98 15,026 15,627 16,693 Available-for-sale financial assets 1.96 1.88 1.77 980 762 725 Held-to-maturity investments – 1.44 1.49 – 231 197 Total interest and similar income 1 2.73 2.77 2.86 16,006 16,620 17,615 Interest and similar expense: Deposits from banks, excluding liabilities under sale and repurchase transactions 1.18 0.65 0.41 (80 ) (68 ) (43 ) Customer deposits, excluding liabilities under sale and repurchase transactions 0.49 0.69 0.87 (1,722 ) (2,520 ) (3,299 ) Debt securities in issue 2 0.37 0.94 0.69 (266 ) (799 ) (586 ) Subordinated liabilities 7.93 8.35 8.37 (1,481 ) (1,864 ) (2,091 ) Liabilities under sale and repurchase agreements 0.58 0.46 0.57 (110 ) (38 ) (34 ) Interest payable on liabilities held at amortised cost 0.79 1.07 1.19 (3,659 ) (5,289 ) (6,053 ) Amounts payable to unitholders in consolidated open-ended investment vehicles 9.15 10.85 1.16 (1,435 ) (2,057 ) (244 ) Total interest and similar expense 3 1.06 1.44 1.19 (5,094 ) (7,346 ) (6,297 ) Net interest income 10,912 9,274 11,318 1 Includes £12 million (2016: £nil; 2015: £nil) of interest income on liabilities with negative interest rates. 2 The impact of the Group’s hedging arrangements is included on this line; excluding this impact the weighted average effective interest rate in respect of debt securities in issue would be 2.43 per cent (2016: 2.70 per cent; 2015: 2.76 per cent). 3 Includes £50 million (2016: £51 million; 2015: £nil) of interest expense on assets with negative interest rates. |
NET FEE AND COMMISSION INCOME (
NET FEE AND COMMISSION INCOME (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of fee and commission income (expense) [text block] [Abstract] | |
Disclosure of fee and commission income (expense) [text block] | 2017 2016 2015 Fee and commission income: Current accounts 712 752 804 Credit and debit card fees 953 875 918 Other 1,300 1,418 1,530 Total fee and commission income 2,965 3,045 3,252 Fee and commission expense (1,382 ) (1,356 ) (1,442 ) Net fee and commission income 1,583 1,689 1,810 |
NET TRADING INCOME (Tables)
NET TRADING INCOME (Tables) - Financial assets at fair value through profit or loss, classified as held for trading, category [member] | 12 Months Ended |
Dec. 31, 2017 | |
NET TRADING INCOME (Tables) [Line Items] | |
Disclosure of trading income (expense) [text block] | 2017 2016 2015 Foreign exchange translation (losses) gains (174 ) 1,363 (80 ) Gains on foreign exchange trading transactions 517 542 335 Total foreign exchange 343 1,905 255 Investment property gains (losses) (note 26) 230 (83 ) 416 Securities and other gains (see below) 11,244 16,723 3,043 Net trading income 11,817 18,545 3,714 |
Net gains (losses) [Member] | |
NET TRADING INCOME (Tables) [Line Items] | |
Disclosure of financial assets held for trading [text block] | Securities and other gains comprise net gains (losses) arising on assets and liabilities held at fair value through profit or loss and for trading as follows: 2017 2016 2015 Net income arising on assets held at fair value through profit or loss: Debt securities, loans and advances 1,122 4,771 451 Equity shares 9,862 12,534 2,384 Total net income arising on assets held at fair value through profit or loss 10,984 17,305 2,835 Net (expense) income arising on liabilities held at fair value through profit or loss – debt securities in issue (144 ) (154 ) 14 Total net gains arising on assets and liabilities held at fair value through profit or loss 10,840 17,151 2,849 Net gains (losses) on financial instruments held for trading 404 (428 ) 194 Securities and other gains 11,244 16,723 3,043 |
INSURANCE PREMIUM INCOME (Table
INSURANCE PREMIUM INCOME (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Insurance premium income [Member] | |
INSURANCE PREMIUM INCOME (Tables) [Line Items] | |
Disclosure of insurance premium revenue [text block] | 2017 2016 2015 Life insurance Gross premiums: Life and pensions 6,273 5,613 3,613 Annuities 1,082 1,685 430 7,355 7,298 4,043 Ceded reinsurance premiums (168 ) (88 ) (122 ) Net earned premiums 7,187 7,210 3,921 Non-life insurance Net earned premiums 743 858 871 Total net earned premiums 7,930 8,068 4,792 |
OTHER OPERATING INCOME (Tables)
OTHER OPERATING INCOME (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other operating income [Member] | |
OTHER OPERATING INCOME (Tables) [Line Items] | |
Disclosure of other operating income [text block] | 2017 2016 2015 Operating lease rental income 1,344 1,225 1,165 Rental income from investment properties (note 26) 213 229 268 Gains less losses on disposal of available-for-sale financial assets (note 41) 446 575 51 Movement in value of in-force business (note 24) (165 ) 472 (162 ) Liability management (14 ) (598 ) (28 ) Share of results of joint ventures and associates 6 (1 ) (3 ) Other 165 133 225 Total other operating income 1,995 2,035 1,516 |
INSURANCE CLAIMS (Tables)
INSURANCE CLAIMS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of claims and benefits paid [text block] [Abstract] | |
Schedule of Insurance Claims [Text Block] | Insurance claims comprise: 2017 2016 2015 Life insurance and participating investment contracts Claims and surrenders (8,898 ) (8,617 ) (7,983 ) Change in insurance and participating investment contracts (note 31) (9,067 ) (14,160 ) 2,898 Change in non-participating investment contracts 2,836 679 (438 ) (15,129 ) (22,098 ) (5,523 ) Reinsurers’ share 35 106 101 (15,094 ) (21,992 ) (5,422 ) Change in unallocated surplus (147 ) 14 63 Total life insurance and participating investment contracts (15,241 ) (21,978 ) (5,359 ) Non-life insurance Total non-life insurance claims, net of reinsurance (337 ) (366 ) (370 ) Total insurance claims (15,578 ) (22,344 ) (5,729 ) Life insurance and participating investment contracts gross claims and surrenders can also be analysed as follows: Deaths (675 ) (635 ) (631 ) Maturities (1,280 ) (1,347 ) (1,348 ) Surrenders (5,674 ) (5,444 ) (4,811 ) Annuities (985 ) (949 ) (902 ) Other (284 ) (242 ) (291 ) Total life insurance gross claims and surrenders (8,898 ) (8,617 ) (7,983 ) |
OPERATING EXPENSES (Tables)
OPERATING EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
OPERATING EXPENSES (Tables) [Line Items] | |
Disclosure of performance-based compensation costs [text block] | The table below analyses the Group’s performance-based compensation costs between those relating to the current performance year and those relating to earlier years. 2017 2016 2015 £m £m £m Performance-based compensation expense comprises: Awards made in respect of the year ended 31 December 334 312 280 Awards made in respect of earlier years 139 163 129 473 475 409 Performance-based compensation expense deferred until later years comprises: Awards made in respect of the year ended 31 December 127 123 114 Awards made in respect of earlier years 35 41 56 162 164 170 |
Disclosure of information about employees [text block] | The average number of persons on a headcount basis employed by the Group during the year was as follows: 2017 2016 2015 UK 75,150 79,606 84,922 Overseas 794 812 781 Total 75,944 80,418 85,703 |
Operating expense [Member] | |
OPERATING EXPENSES (Tables) [Line Items] | |
Disclosure of other operating expense [text block] | 2017 2016 2015 Staff costs: Salaries 2,679 2,750 2,808 Performance-based compensation 473 475 409 Social security costs 361 363 349 Pensions and other post-retirement benefit schemes (note 35) 625 555 548 Restructuring costs 24 241 104 Other staff costs 448 433 459 4,610 4,817 4,677 Premises and equipment: Rent and rates 365 365 368 Repairs and maintenance 231 187 173 Other 134 120 174 730 672 715 Other expenses: Communications and data processing 882 848 893 Advertising and promotion 208 198 253 Professional fees 328 265 262 UK bank levy 231 200 270 TSB disposal – – 665 Other 814 873 703 2,463 2,384 3,046 Depreciation and amortisation: Depreciation of property, plant and equipment (note 26) 1,944 1,761 1,534 Amortisation of acquired value of in-force non-participating investment contracts (note 24) 34 37 41 Amortisation of other intangible assets (note 25) 392 582 537 2,370 2,380 2,112 Goodwill impairment (note 23) 8 – – Total operating expenses, excluding regulatory provisions 10,181 10,253 10,550 Regulatory provisions: Payment protection insurance provision (note 37) 1,300 1,350 4,000 Other regulatory provisions 1 865 1,024 837 2,165 2,374 4,837 Total operating expenses 12,346 12,627 15,387 1 In 2016, regulatory provisions of £61 million were charged against income. |
Lloyds Banking Group [Member] | |
OPERATING EXPENSES (Tables) [Line Items] | |
Disclosure of auditors' remuneration [text block] | Fees payable to the Company’s auditors by the Group are as follows: 2017 2016 2015 £m £m £m Fees payable for the audit of the Company’s current year annual report 1.5 1.5 1.2 Fees payable for other services: Audit of the Company’s subsidiaries pursuant to legislation 18.6 14.7 14.9 Other services supplied pursuant to legislation 3.0 3.1 2.2 Total audit fees 23.1 19.3 18.3 Other services – audit related fees 1.2 3.1 3.2 Total audit and audit related fees 24.3 22.4 21.5 Services relating to taxation: Taxation compliance services – 0.2 0.2 All other taxation advisory services – 0.1 0.1 – 0.3 0.3 Other non-audit fees: Services relating to corporate finance transactions 1.2 0.1 0.2 Other services 2.4 1.5 2.3 Total other non-audit fees 3.6 1.6 2.5 Total fees payable to the Company’s auditors by the Group 27.9 24.3 24.3 |
Entities Outside of Lloyds [Member] | |
OPERATING EXPENSES (Tables) [Line Items] | |
Disclosure of auditors' remuneration [text block] | During the year, the auditors also earned fees payable by entities outside the consolidated Lloyds B 2017 2016 2015 £m £m £m Audits of Group pension schemes 0.1 0.3 0.3 Audits of the unconsolidated Open Ended Investment Companies managed by the Group 0.3 0.4 0.4 Reviews of the financial position of corporate and other borrowers – 1.2 3.1 Acquisition due diligence and other work performed in respect of potential venture capital investments 0.1 1.0 1.2 |
IMPAIRMENT (Tables)
IMPAIRMENT (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of impairment loss and reversal of impairment loss [text block] [Abstract] | |
Schedule of Impairment [Text Block] | 2017 2016 2015 Impairment losses on loans and receivables: Loans and advances to customers 697 592 443 Debt securities classified as loans and receivables (6 ) – (2 ) Total impairment losses on loans and receivables (note 20) 691 592 441 Impairment of available-for-sale financial assets 6 173 4 Other credit risk provisions (9 ) (13 ) (55 ) Total impairment charged to the income statement 688 752 390 |
TAXATION (Tables)
TAXATION (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of income tax [text block] [Abstract] | |
Disclosure of tax receivables and payables [text block] | 2017 £m 2016 2015 UK corporation tax: Current tax on profit for the year (1,346 ) (1,010 ) (485 ) Adjustments in respect of prior years 126 156 (90 ) (1,220 ) (854 ) (575 ) Foreign tax: Current tax on profit for the year (40 ) (20 ) (24 ) Adjustments in respect of prior years 10 2 27 (30 ) (18 ) 3 Current tax expense (1,250 ) (872 ) (572 ) Deferred tax: Current year (430 ) (758 ) (212 ) Adjustments in respect of prior years (48 ) (94 ) 96 Deferred tax expense (478 ) (852 ) (116 ) Tax expense (1,728 ) (1,724 ) (688 ) |
Schedule of Income Tax Charges [Text Block] | The income tax expense is made up as follows: 2017 £m 2016 2015 Tax (expense) credit attributable to policyholders (82 ) (301 ) 3 Shareholder tax expense (1,646 ) (1,423 ) (691 ) Tax expense (1,728 ) (1,724 ) (688 ) |
Disclosure of reconciliation of charge resulting from applying UK corporation tax rate | An explanation of the relationship between tax expense and accounting profit is set out below: 2017 £m 2016 2015 Profit before tax 5,625 3,888 1,644 UK corporation tax thereon (1,083 ) (778 ) (333 ) Impact of surcharge on banking profits (452 ) (266 ) – Non-deductible costs: conduct charges (287 ) (289 ) (459 ) Non-deductible costs: bank levy (44 ) (40 ) (55 ) Other non-deductible costs (59 ) (135 ) (116 ) Non-taxable income 72 75 162 Tax-exempt gains on disposals 128 19 67 Recognition of losses that arose in prior years – 59 42 Remeasurement of deferred tax due to rate changes (9 ) (201 ) (27 ) Differences in overseas tax rates (15 ) 10 (4 ) Policyholder tax 1 (66 ) (241 ) 3 Adjustments in respect of prior years 88 64 33 Tax effect of share of results of joint ventures (1 ) (1 ) (1 ) Tax expense (1,728 ) (1,724 ) (688 ) 1 In 2016 this included a £231 million write down of the deferred tax asset held within the life business, reflecting the Group’s utilisation estimate which has been restricted by the current economic environment. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of earnings per share [text block] [Abstract] | |
Earnings per share [text block] | 2017 £m 2016 2015 Profit attributable to equity shareholders – basic and diluted 3,392 1,651 466 Tax credit on distributions to other equity holders 102 91 80 3,494 1,742 546 2017 2016 2015 million million million Weighted average number of ordinary shares in issue – basic 71,710 71,234 71,272 Adjustment for share options and awards 683 790 1,068 Weighted average number of ordinary shares in issue – diluted 72,393 72,024 72,340 Basic earnings per share 4.9p 2.4p 0.8p Diluted earnings per share 4.8p 2.4p 0.8p |
TRADING AND OTHER FINANCIAL A76
TRADING AND OTHER FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Financial assets at fair value through profit or loss, classified as held for trading, category [member] | |
TRADING AND OTHER FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (Tables) [Line Items] | |
Disclosure of Trading and Other Financial Assets at Fair Value Through Profit or Loss [text block] | These assets are comprised as follows: 2017 2016 Trading Other financial Total Trading Other financial Total Loans and advances to customers 29,976 – 29,976 30,473 – 30,473 Loans and advances to banks 1,614 – 1,614 2,606 – 2,606 Debt securities: Government securities 9,833 12,187 22,020 11,828 14,904 26,732 Other public sector securities – 1,527 1,527 – 1,325 1,325 Bank and building society certificates of deposit – 222 222 – 244 244 Asset-backed securities: Mortgage-backed securities 189 211 400 47 660 707 Other asset-backed securities 95 926 1,021 69 1,469 1,538 Corporate and other debt securities 523 19,467 19,990 224 19,608 19,832 10,640 34,540 45,180 12,168 38,210 50,378 Equity shares 6 86,084 86,090 6 67,691 67,697 Treasury and other bills – 18 18 – 20 20 Total 42,236 120,642 162,878 45,253 105,921 151,174 |
DERIVATIVE FINANCIAL INSTRUME77
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) [Line Items] | |
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [text block] | For designated cash flow hedges the following table shows when the Group’s hedged cash flows are exp 2017 0-1 years 1-2 years 2-3 years 3-4 years 4-5 years 5-10 years 10-20 years Over Total Hedged forecast cash flows expected to occur: Forecast receivable cash flows 346 515 682 492 395 701 55 46 3,232 Forecast payable cash flows (475 ) (654 ) (592 ) (552 ) (406 ) (1,150 ) (627 ) (163 ) (4,619 ) Hedged forecast cash flows affect profit or loss: Forecast receivable cash flows 307 562 648 448 466 684 63 54 3,232 Forecast payable cash flows (680 ) (640 ) (556 ) (505 ) (377 ) (1,085 ) (612 ) (164 ) (4,619 ) 2016 0-1 years 1-2 years 2-3 years 3-4 years 4-5 years 5-10 years 10-20 years Over Total Hedged forecast cash flows expected to occur: Forecast receivable cash flows 172 198 415 372 391 1,215 102 45 2,910 Forecast payable cash flows (565 ) (722 ) (692 ) (599 ) (429 ) (1,541 ) (806 ) (262 ) (5,616 ) Hedged forecast cash flows affect profit or loss: Forecast receivable cash flows 211 223 418 363 472 1,070 99 54 2,910 Forecast payable cash flows (777 ) (713 ) (671 ) (521 ) (415 ) (1,477 ) (787 ) (255 ) (5,616 ) |
At fair value [member] | |
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) [Line Items] | |
Disclosure of Total Derivative Financial Instruments [Text Block] | The fair values and notional amounts of derivative instruments are set out in the following table: 31 December 2017 31 December 2016 Contract/ notional amount £m Fair value assets £m Fair value liabilities £m Contract/ Fair value Fair value Trading and other Exchange rate contracts: Spot, forwards and futures 31,716 1,023 789 38,072 1,149 1,383 Currency swaps 223,624 3,157 3,534 288,441 6,903 6,382 Options purchased 8,191 580 – 15,192 808 – Options written 6,684 – 627 18,342 – 1,016 270,215 4,760 4,950 360,047 8,860 8,781 Interest rate contracts: Interest rate swaps 2,264,834 15,791 15,364 2,160,535 19,780 18,862 Forward rate agreements 239,797 5 1 628,962 13 87 Options purchased 32,097 2,329 – 39,509 3,251 – Options written 32,817 – 2,524 39,847 – 3,400 Futures 35,542 9 7 114,284 6 3 2,605,087 18,134 17,896 2,983,137 23,050 22,352 Credit derivatives 4,568 77 423 8,098 381 659 Equity and other contracts 25,150 982 1,242 43,218 1,135 1,168 Total derivative assets/liabilities – trading and other 2,905,020 23,953 24,511 3,394,500 33,426 32,960 Hedging Derivatives designated as fair value hedges: Currency swaps 1,327 19 38 1,454 19 22 Interest rate swaps 109,670 1,145 407 194,416 1,462 737 110,997 1,164 445 195,870 1,481 759 Derivatives designated as cash flow hedges: Interest rate swaps 549,099 597 1,053 384,182 814 1,166 Futures 73,951 – 1 53,115 – 3 Currency swaps 7,310 120 114 8,121 417 36 630,360 717 1,168 445,418 1,231 1,205 Total derivative assets/liabilities – hedging 741,357 1,881 1,613 641,288 2,712 1,964 Total recognised derivative assets/liabilities 3,646,377 25,834 26,124 4,035,788 36,138 34,924 |
LOANS AND ADVANCES TO CUSTOME78
LOANS AND ADVANCES TO CUSTOMERS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
LOANS AND ADVANCES TO CUSTOMERS (Tables) [Line Items] | |
Disclosure of maturity analysis of finance lease payments receivable [text block] | Loans and advances to customers include finance lease receivables, which may be analysed as follows: 2017 £m 2016 Gross investment in finance leases, receivable: Not later than 1 year 680 551 Later than 1 year and not later than 5 years 1,106 1,618 Later than 5 years 1,053 1,561 2,839 3,730 Unearned future finance income on finance leases (692 ) (1,038 ) Rentals received in advance (53 ) (64 ) Net investment in finance leases 2,094 2,628 |
Loans and advances to customers [Member] | |
LOANS AND ADVANCES TO CUSTOMERS (Tables) [Line Items] | |
Disclosure of Total Loans And Advances to Customers [text block] | 2017 £m 2016 Agriculture, forestry and fishing 7,461 7,269 Energy and water supply 1,609 2,320 Manufacturing 7,886 7,285 Construction 4,428 4,535 Transport, distribution and hotels 14,074 13,320 Postal and telecommunications 2,148 2,564 Property companies 30,980 32,192 Financial, business and other services 57,006 49,197 Personal: Mortgages 304,665 306,682 Other 28,757 20,761 Lease financing 2,094 2,628 Hire purchase 13,591 11,617 Total loans and advances to customers before allowance for impairment losses 474,699 460,370 Allowance for impairment losses (note 20) (2,201 ) (2,412 ) Total loans and advances to customers 472,498 457,958 |
Recoverable net investment [Member] | |
LOANS AND ADVANCES TO CUSTOMERS (Tables) [Line Items] | |
Disclosure of maturity analysis of finance lease payments receivable [text block] | The net investment in finance leases represents amounts recoverable as follows: 2017 2016 £m £m Not later than 1 year 546 361 Later than 1 year and not later than 5 years 887 1,282 Later than 5 years 661 985 Net investment in finance leases 2,094 2,628 |
SECURITISATIONS AND COVERED B79
SECURITISATIONS AND COVERED BONDS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Securitisations Programmers And Transactions [Abstract] | |
Information about Securitisation programmes and transactions | The Group’s principal securitisation and covered bond programmes, together with the balances of the advances subject to these arrangements and the carrying value of the notes in issue at 31 December, are listed below. The notes in issue are reported in note 30. 2017 2016 Loans and Notes Loans and Notes Securitisation programmes 1 UK residential mortgages 21,158 14,105 35,146 17,705 Commercial loans 6,616 7,001 7,395 8,179 Credit card receivables 7,701 4,090 7,610 5,723 Dutch residential mortgages – – 2,033 2,081 35,475 25,196 52,184 33,688 Less held by the Group (21,536 ) (26,435 ) Total securitisation programmes (note 30) 3,660 7,253 Covered bond programmes Residential mortgage-backed 30,361 25,632 33,881 30,021 Social housing loan-backed 1,628 1,200 2,087 1,200 31,989 26,832 35,968 31,221 Less held by the Group (700 ) (700 ) Total covered bond programmes (note 30) 26,132 30,521 Total securitisation and covered bond programmes 29,792 37,774 1 Includes securitisations utilising a combination of external funding and credit default swaps. |
ALLOWANCE FOR IMPAIRMENT LOSS80
ALLOWANCE FOR IMPAIRMENT LOSSES ON LOANS AND RECEIVABLES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of allowance for credit losses [text block] [Abstract] | |
Disclosure of allowance for Credit Losses Explanatory [text block] | 2017 2016 Loans and Debt Total Loans and advances to customers £m Debt securities £m Total £m At 1 January 2,412 76 2,488 3,033 97 3,130 Exchange and other adjustments 132 – 132 69 – 69 Advances written off (1,499 ) (44 ) (1,543 ) (2,111 ) (22 ) (2,133 ) Recoveries of advances written off in previous years 482 – 482 861 1 862 Unwinding of discount (23 ) – (23 ) (32 ) – (32 ) Charge (release) to the income statement (note 12) 697 (6 ) 691 592 – 592 At 31 December 2,201 26 2,227 2,412 76 2,488 |
AVAILABLE-FOR-SALE FINANCIAL 81
AVAILABLE-FOR-SALE FINANCIAL ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Financial assets available-for-sale, category [member] | |
AVAILABLE-FOR-SALE FINANCIAL ASSETS (Tables) [Line Items] | |
Disclosure of Available-For-Sale Financial Assets [text block] | 2017 £m 2016 Debt securities: Government securities 34,708 48,714 Bank and building society certificates of deposit 167 142 Asset-backed securities: Mortgage-backed securities 1,156 108 Other asset-backed securities 255 317 Corporate and other debt securities 4,615 6,030 40,901 55,311 Equity shares 1,197 1,213 Total available-for-sale financial assets 42,098 56,524 |
ACQUISITION OF MBNA LIMITED (Ta
ACQUISITION OF MBNA LIMITED (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of deferred acquisition costs arising from insurance contracts [text block] [Abstract] | |
Disclosure of business combinations [text block] | Book value Fair value Fair value Assets Loans and advances to customers 7,466 345 7,811 Available-for-sale financial assets 16 – 16 Purchased credit card relationships – 702 702 Deferred tax assets 27 4 31 Other assets 190 322 512 Total assets 7,699 1,373 9,072 Liabilities Deposits from banks 1 6,431 – 6,431 Deferred tax liabilities 3 184 187 Other liabilities 112 – 112 Other provisions 233 395 628 Total liabilities 6,779 579 7,358 Fair value of net assets acquired 920 794 1,714 Goodwill arising on acquisition 302 Total consideration 2,016 1 Upon acquisition, the funding of MBNA was assumed by Lloyds Bank plc. |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of goodwill [text block] [Abstract] | |
Disclosure of reconciliation of changes in goodwill [text block] | 2017 2016 £m £m At 1 January 2,016 2,016 Acquisition of businesses (note 22) 302 – Impairment charged to the income statement (note 11) (8 ) – At 31 December 2,310 2,016 Cost 1 2,664 2,362 Accumulated impairment losses (354 ) (346 ) At 31 December 2,310 2,016 1 For acquisitions made prior to 1 January 2004, the date of transition to IFRS, cost is included net of amounts amortised up to 31 December 2003. |
VALUE OF IN-FORCE BUSINESS (Tab
VALUE OF IN-FORCE BUSINESS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
VALUE OF IN-FORCE BUSINESS (Tables) [Line Items] | |
Disclosure of range of yields and other key assumptions | The table below shows the resulting range of yields and other key assumptions at 31 December: 2017 2016 % % Risk-free rate (value of in-force non-annuity business) 1 0.00 to 4.20 0.00 to 4.20 Risk-free rate (value of in-force annuity business) 1 1.14 to 5.34 1.38 to 5.58 Risk-free rate (financial options and guarantees) 1 0.00 to 4.20 0.00 to 4.20 Retail price inflation 3.43 3.50 Expense inflation 3.67 3.73 1 All risk-free rates are quoted as the range of rates implied by the relevant forward swap curve. |
Disclosure of detailed information about intangible assets [text block] | Purchased Customer- Capitalised Core deposit credit card related software Brands intangible relationships intangibles enhancements Total £m £m £m £m £m £m Cost: At 1 January 2016 596 2,770 315 538 1,814 6,033 Additions – – – – 463 463 Disposals – – – – (110 ) (110 ) At 31 December 2016 596 2,770 315 538 2,167 6,386 Acquisition of businesses (note 22) – – 702 – – 702 Additions – – – – 850 850 Disposals – – – – (77 ) (77 ) At 31 December 2017 596 2,770 1,017 538 2,940 7,861 Accumulated amortisation: At 1 January 2016 149 2,460 309 472 805 4,195 Charge for the year 22 297 2 27 234 582 Disposals – – – – (72 ) (72 ) At 31 December 2016 171 2,757 311 499 967 4,705 Charge for the year 22 13 44 20 293 392 Disposals – – – – (71 ) (71 ) At 31 December 2017 193 2,770 355 519 1,189 5,026 Balance sheet amount at 31 December 2017 403 – 662 19 1,751 2,835 Balance sheet amount at 31 December 2016 425 13 4 39 1,200 1,681 |
In-Force [Member] | |
VALUE OF IN-FORCE BUSINESS (Tables) [Line Items] | |
Disclosure of intangible assets material to entity [text block] | The gross value of in-force business asset in the consolidated balance sheet is as follows: 2017 2016 Acquired value of in-force non-participating investment contracts 306 340 Value of in-force insurance and participating investment contracts 4,533 4,702 Total value of in-force business 4,839 5,042 |
Non-participating investment contracts [Member] | |
VALUE OF IN-FORCE BUSINESS (Tables) [Line Items] | |
Disclosure of intangible assets material to entity [text block] | The movement in the acquired value of in-force non-participating investment contracts over the year 2017 2016 £m £m At 1 January 340 377 Amortisation taken to income statement (note 11) (34 ) (37 ) At 31 December 306 340 |
In-Force Insurance and Participating Investment Contracts [Member] | |
VALUE OF IN-FORCE BUSINESS (Tables) [Line Items] | |
Disclosure of detailed information about intangible assets [text block] | The movement in the value of in-force insurance and participating investment contracts over the year 2017 2016 £m £m At 1 January 4,702 4,219 Exchange and other adjustments (4 ) 11 Movements in the year: New business 348 428 Existing business: Expected return (318 ) (210 ) Experience variances (226 ) (137 ) Assumption changes (238 ) 127 Economic variance 269 264 Movement in the value of in-force business taken to income statement (note 9) (165 ) 472 At 31 December 4,533 4,702 |
OTHER INTANGIBLE ASSETS (Tables
OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of intangible assets [text block] [Abstract] | |
Disclosure of detailed information about intangible assets [text block] | Purchased Customer- Capitalised Core deposit credit card related software Brands intangible relationships intangibles enhancements Total £m £m £m £m £m £m Cost: At 1 January 2016 596 2,770 315 538 1,814 6,033 Additions – – – – 463 463 Disposals – – – – (110 ) (110 ) At 31 December 2016 596 2,770 315 538 2,167 6,386 Acquisition of businesses (note 22) – – 702 – – 702 Additions – – – – 850 850 Disposals – – – – (77 ) (77 ) At 31 December 2017 596 2,770 1,017 538 2,940 7,861 Accumulated amortisation: At 1 January 2016 149 2,460 309 472 805 4,195 Charge for the year 22 297 2 27 234 582 Disposals – – – – (72 ) (72 ) At 31 December 2016 171 2,757 311 499 967 4,705 Charge for the year 22 13 44 20 293 392 Disposals – – – – (71 ) (71 ) At 31 December 2017 193 2,770 355 519 1,189 5,026 Balance sheet amount at 31 December 2017 403 – 662 19 1,751 2,835 Balance sheet amount at 31 December 2016 425 13 4 39 1,200 1,681 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Property Plant And Equipment And Investment Properties [Abstract] | |
Disclosure Of Property Plant And Equipment And Investment Properties | Investment Operating properties Premises Equipment lease assets Total £m £m £m £m £m Cost or valuation: At 1 January 2016 4,361 2,589 5,266 5,023 17,239 Exchange and other adjustments 13 2 6 112 133 Additions – 59 806 2,088 2,953 Expenditure on investment properties (see below) 344 – – – 344 Change in fair value of investment properties (note 7) (83 ) – – – (83 ) Disposals (871 ) (100 ) (113 ) (1,017 ) (2,101 ) At 31 December 2016 3,764 2,550 5,965 6,206 18,485 Exchange and other adjustments – (37 ) – (44 ) (81 ) Acquisition of businesses (note 22) – 3 3 – 6 Additions – 70 382 2,262 2,714 Expenditure on investment properties (see below) 209 – – – 209 Change in fair value of investment properties (note 7) 230 – – – 230 Disposals (504 ) (795 ) (1,282 ) (1,896 ) (4,477 ) At 31 December 2017 3,699 1,791 5,068 6,528 17,086 Accumulated depreciation and impairment: At 1 January 2016 – 1,247 2,096 917 4,260 Exchange and other adjustments – (1 ) (8 ) 49 40 Depreciation charge for the year – 136 672 953 1,761 Disposals – (49 ) (89 ) (410 ) (548 ) At 31 December 2016 – 1,333 2,671 1,509 5,513 Exchange and other adjustments – (8 ) (9 ) (34 ) (51 ) Depreciation charge for the year – 125 734 1,085 1,944 Disposals – (722 ) (1,271 ) (1,054 ) (3,047 ) At 31 December 2017 – 728 2,125 1,506 4,359 Balance sheet amount at 31 December 2017 3,699 1,063 2,943 5,022 12,727 Balance sheet amount at 31 December 2016 3,764 1,217 3,294 4,697 12,972 |
Disclosure of detailed information about investment property [text block] | Expenditure on investment properties is comprised as follows: 2017 2016 £m £m Acquisitions of new properties 82 251 Additional expenditure on existing properties 127 93 209 344 |
Disclosure Of Minimum Lease Payments Receivable Under Noncancellable Operating Lease Explanatory | At 31 December the future minimum rentals receivable under non-cancellable operating leases were as follows: 2017 2016 £m £m Receivable within 1 year 1,301 1,120 1 to 5 years 1,419 1,373 Over 5 years 128 347 Total future minimum rentals receivable 2,848 2,840 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of other assets [text block] [Abstract] | |
Schedule of Other Assets [Text Block] | 2017 2016 £m £m Assets arising from reinsurance contracts held (notes 31 and 33) 602 714 Deferred acquisition and origination costs 104 81 Settlement balances 720 700 Corporate pension asset 7,786 6,645 Investments in joint ventures and associates 65 59 Other assets and prepayments 4,260 4,556 Total other assets 13,537 12,755 |
CUSTOMER DEPOSITS (Tables)
CUSTOMER DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Deposits from Customers [Member] | |
CUSTOMER DEPOSITS (Tables) [Line Items] | |
Disclosure Of Customer Deposits TextBlock | 2017 2016 £m £m Non-interest bearing current accounts 70,444 61,804 Interest bearing current accounts 95,889 90,978 Savings and investment accounts 196,966 208,227 Liabilities in respect of securities sold under repurchase agreements 2,638 2,462 Other customer deposits 52,187 51,989 Customer deposits 418,124 415,460 |
TRADING AND OTHER FINANCIAL L89
TRADING AND OTHER FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Financial assets at fair value through profit or loss, category [member] | |
TRADING AND OTHER FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS (Tables) [Line Items] | |
Disclosure of Trading and Other Financial Liabilities and Fair Value Through Profit or Loss [text block] | 2017 2016 £m £m Liabilities held at fair value through profit or loss 7,815 9,425 Trading liabilities: Liabilities in respect of securities sold under repurchase agreements 41,378 42,067 Other deposits 381 530 Short positions in securities 1,303 2,482 43,062 45,079 Trading and other financial liabilities at fair value through profit or loss 50,877 54,504 |
DEBT SECURITIES IN ISSUE (Table
DEBT SECURITIES IN ISSUE (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of debt instruments [text block] [Abstract] | |
Schedule of Debt Securities in Issue [Text Block] | 2017 2016 £m £m Medium-term notes issued 29,418 27,182 Covered bonds (note 18) 26,132 30,521 Certificates of deposit issued 9,999 8,077 Securitisation notes (note 18) 3,660 7,253 Commercial paper 3,241 3,281 Total debt securities in issue 72,450 76,314 |
LIABILITIES ARISING FROM INSU91
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Tables) [Line Items] | |
Disclosure of types of insurance contracts [text block] | Insurance contract and participating investment contract liabilities are comprised as follows: 2017 2016 Gross Reinsurance 1 Net Gross Reinsurance 1 Net £m £m £m £m £m £m Life insurance (see (1) below): Insurance contracts 89,157 (563 ) 88,594 79,793 (671 ) 79,122 Participating investment contracts 13,673 – 13,673 13,984 – 13,984 102,830 (563 ) 102,267 93,777 (671 ) 93,106 Non-life insurance contracts (see (2) below): Unearned premiums 358 (13 ) 345 404 (14 ) 390 Claims outstanding 225 – 225 209 – 209 583 (13 ) 570 613 (14 ) 599 Total 103,413 (576 ) 102,837 94,390 (685 ) 93,705 1 Reinsurance balances are reported within other assets (note 27). |
Disclosure of insurance premium revenue [text block] | NOTE 8: INSURANCE PREMIUM INCOME 2017 2016 2015 Life insurance Gross premiums: Life and pensions 6,273 5,613 3,613 Annuities 1,082 1,685 430 7,355 7,298 4,043 Ceded reinsurance premiums (168 ) (88 ) (122 ) Net earned premiums 7,187 7,210 3,921 Non-life insurance Net earned premiums 743 858 871 Total net earned premiums 7,930 8,068 4,792 Premium income in 2015 was reduced by a charge of £1,959 million relating to the recapture by a third party insurer of a portfolio of policies previously reassured with the Group. |
Participating investment contracts [Member] | |
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Tables) [Line Items] | |
Disclosure of Life Insurance and Participating Contract Liabilities [text block] | The movement in life insurance contract and participating investment contract liabilities over the year can be analysed as follows: Participating Insurance investment contracts contracts Gross Reinsurance Net £m £m £m £m £m At 1 January 2016 66,122 13,460 79,582 (629 ) 78,953 New business 4,422 28 4,450 (5 ) 4,445 Changes in existing business 9,214 496 9,710 (37 ) 9,673 Change in liabilities charged to the income statement (note 10) 13,636 524 14,160 (42 ) 14,118 Exchange and other adjustments 35 – 35 – 35 At 31 December 2016 79,793 13,984 93,777 (671 ) 93,106 New business 4,154 43 4,197 (21 ) 4,176 Changes in existing business 5,224 (354 ) 4,870 129 4,999 Change in liabilities charged to the income statement (note 10) 9,378 (311 ) 9,067 108 9,175 Exchange and other adjustments (14 ) – (14 ) – (14 ) At 31 December 2017 89,157 13,673 102,830 (563 ) 102,267 |
Disclosure of Liabilities for Insurance Contracts and Participating Investment Contracts [text block] | Liabilities for insurance contracts and participating investment contracts can be split into with-profit fund liabilities, accounted for using the PRA’s realistic capital regime (realistic liabilities) and non-profit fund liabilities, accounted for using a prospective actuarial discounted cash flow methodology, as follows: 2017 2016 With-profit Non-profit With-profit Non-profit fund fund Total fund fund Total £m £m £m £m £m £m Insurance contracts 8,946 80,211 89,157 9,147 70,646 79,793 Participating investment contracts 8,481 5,192 13,673 8,860 5,124 13,984 Total 17,427 85,403 102,830 18,007 75,770 93,777 |
Unearned premiums [Member] | |
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Tables) [Line Items] | |
Disclosure of insurance premium revenue [text block] | The movements in non-life insurance contract liabilities and reinsurance assets over the year have been as follows: 2017 2016 £m £m Provisions for unearned premiums Gross provision at 1 January 404 461 Increase in the year 724 827 Release in the year (770 ) (884 ) Change in provision for unearned premiums charged to income statement (46 ) (57 ) Gross provision at 31 December 358 404 Reinsurers’ share (13 ) (14 ) Net provision at 31 December 345 390 |
Claims outstanding [Member] | |
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Tables) [Line Items] | |
Disclosure of Insurance Claims Outstanding [text block] | These provisions represent the liability for short-term insurance contracts for which the Group’s obligations are not expired at the year end. 2017 2016 £m £m Claims outstanding Gross claims outstanding at 1 January 209 251 Cash paid for claims settled in the year (321 ) (408 ) Increase/(decrease) in liabilities charged to the income statement 1 337 366 16 (42 ) Gross claims outstanding at 31 December 225 209 Reinsurers’ share – – Net claims outstanding at 31 December 225 209 Notified claims 174 122 Incurred but not reported 51 87 Net claims outstanding at 31 December 225 209 1 Of which an increase of £350 million (2016: £363 million) was in respect of current year claims and a decrease of £13 million (2016: an increase of £3 million) was in respect of prior year claims. |
LIFE INSURANCE SENSITIVITY AN92
LIFE INSURANCE SENSITIVITY ANALYSIS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of sensitivity analysis for actuarial assumptions [text block] [Abstract] | |
Schedule of Accounting Estimates and Judgements [Text Block] | 2017 2016 Increase Increase (reduction) Increase (reduction) Increase in profit (reduction) in profit (reduction) Change in before tax in equity before tax in equity variable £m £m £m £m Non-annuitant mortality and morbidity 1 5% reduction 23 19 25 21 Annuitant mortality 2 5% reduction (221 ) (184 ) (287 ) (238 ) Lapse rates 3 10% reduction 75 62 48 40 Future maintenance and investment expenses 4 10% reduction 289 240 318 264 Risk-free rate 5 0.25% reduction (40 ) (33 ) (74 ) (62 ) Guaranteed annuity option take up 6 5% addition (6 ) (5 ) (12 ) (10 ) Equity investment volatility 7 1% addition (7 ) (6 ) (10 ) (8 ) Widening of credit default spreads on corporate bonds 8 0.25% addition (235 ) (195 ) (200 ) (166 ) Increase in illiquidity premia 9 0.10% addition 145 120 152 126 1 This sensitivity shows the impact of reducing mortality and morbidity rates on non-annuity business to 95 per cent of the expected rate. 2 This sensitivity shows the impact on the annuity and deferred annuity business of reducing mortality rates to 95 per cent of the expected rate. 3 This sensitivity shows the impact of reducing lapse and surrender rates to 90 per cent of the expected rate. 4 This sensitivity shows the impact of reducing maintenance expenses and investment expenses to 90 per cent of the expected rate. 5 This sensitivity shows the impact on the value of in-force business, financial options and guarantee costs, statutory reserves and asset values of reducing the risk-free rate by 25 basis points. 6 This sensitivity shows the impact of a flat 5 per cent addition to the expected rate. 7 This sensitivity shows the impact of a flat 1 per cent addition to the expected rate. 8 This sensitivity shows the impact of a 25 basis point increase in credit default spreads on corporate bonds and the corresponding reduction in market values. Swap curves, the risk-free rate and illiquidity premia are all assumed to be unchanged. 9 This sensitivity shows the impact of a 10 basis point increase in the allowance for illiquidity premia. It assumes the overall spreads on assets are unchanged and hence market values are unchanged. Swap curves and the non-annuity risk-free rate are both assumed to be unchanged. The increased illiquidity premium increases the annuity risk-free rate. |
LIABILITIES ARISING FROM NON-93
LIABILITIES ARISING FROM NON-PARTICIPATING INVESTMENT CONTRACTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of investment contracts liabilities [text block] [Abstract] | |
Disclosure of investment contract liabilities explanatory | 2017 2016 £m £m At 1 January 20,112 22,777 New business 608 560 Changes in existing business (5,273 ) (3,225 ) At 31 December 15,447 20,112 |
OTHER LIABILITIES (Tables)
OTHER LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of other liabilities [text block] [Abstract] | |
Disclosure Of Other Liabilities | 2017 2016 £m £m Settlement balances 501 706 Unitholders’ interest in Open Ended Investment Companies 14,480 22,947 Unallocated surplus within insurance businesses 390 243 Other creditors and accruals 5,359 5,297 Total other liabilities 20,730 29,193 |
DEFERRED TAX (Tables)
DEFERRED TAX (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of deferred taxes [text block] [Abstract] | |
Disclosure of analysis of present value of defined benefit obligation that distinguishes nature, characteristics and risks [text block] | The Group’s deferred tax assets and liabilities are as follows: Statutory position 2017 £m 2016 Tax disclosure 2017 £m 2016 Deferred tax assets 2,284 2,706 Deferred tax assets 4,989 5,634 Deferred tax liabilities – – Deferred tax liabilities (2,705 ) (2,928 ) Asset at 31 December 2,284 2,706 Asset at 31 December 2,284 2,706 |
Disclosure Of Deferred Taxes | Movements in deferred tax liabilities and assets (before taking into consideration the offsetting of balances within the same taxing jurisdiction) can be summarised as follows: Deferred tax assets Tax losses Property, Pension Provisions Share-based Other Total At 1 January 2016 4,890 1,089 102 28 91 395 6,595 (Charge) credit to the income statement (592 ) (120 ) (1,981 ) 12 (17 ) (357 ) (3,055 ) (Charge) credit to other comprehensive income – – 2,107 – – – 2,107 Other (charge) credit to equity – – – – (13 ) – (13 ) At 31 December 2016 4,298 969 228 40 61 38 5,634 (Charge) credit to the income statement (264 ) (226 ) (287 ) (7 ) 7 (28 ) (805 ) (Charge) credit to other comprehensive income – – 149 25 – – 174 Other (charge) credit to equity – – – – (17 ) – (17 ) Impact of acquisitions and disposals – – – – – 3 3 At 31 December 2017 4,034 743 90 58 51 13 4,989 Deferred tax liabilities Long-term Acquisition Pension Derivatives Available-for- Other Total At 1 January 2016 (641 ) (891 ) (174 ) (395 ) (11 ) (506 ) (2,618 ) (Charge) credit to the income statement (273 ) 93 1,876 232 23 252 2,203 (Charge) credit to other comprehensive income – – (1,787 ) (466 ) (246 ) – (2,499 ) Exchange and other adjustments – – – (14 ) – – (14 ) At 31 December 2016 (914 ) (798 ) (85 ) (643 ) (234 ) (254 ) (2,928 ) (Charge) credit to the income statement 115 76 199 (139 ) (40 ) 116 327 (Charge) credit to other comprehensive income – – (295 ) 283 67 – 55 Impact of acquisitions and disposals – (157 ) – – – (2 ) (159 ) At 31 December 2017 (799 ) (879 ) (181 ) (499 ) (207 ) (140 ) (2,705 ) |
OTHER PROVISIONS (Tables)
OTHER PROVISIONS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of other provisions [text block] [Abstract] | |
Disclosure of other provisions [text block] | More detail on the nature of the assumptions that have been made and key sensitivities is set out be Provisions for Payment Other Vacant Other Total At 1 January 2017 56 2,608 1,339 51 1,164 5,218 Exchange and other adjustments (26 ) – 16 9 139 138 Acquisition of businesses (note 22) 9 527 – – 92 628 Provisions applied – (1,657 ) (928 ) (23 ) (252 ) (2,860 ) Charge for the year (9 ) 1,300 865 19 247 2,422 At 31 December 2017 30 2,778 1,292 56 1,390 5,546 |
SUBORDINATED LIABILITIES (Table
SUBORDINATED LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of subordinated liabilities [text block] [Abstract] | |
Disclosure of subordinated liabilities | The movement in subordinated liabilities during the year was as follows: Preference Preferred Undated Dated Total At 1 January 2017 864 4,134 599 14,234 19,831 Issued during the year – – – – – Repurchases and redemptions during the year 1 – (237 ) – (771 ) (1,008 ) Foreign exchange movements (43 ) (221 ) (34 ) (487 ) (785 ) Other movements (all non-cash) (8 ) 14 – (122 ) (116 ) At 31 December 2017 813 3,690 565 12,854 17,922 Preference Preferred Undated Enhanced Dated Total At 1 January 2016 980 3,748 965 3,610 14,009 23,312 Issued during the year 1 – – – – 1,061 1,061 Tender offers and redemptions 2 – – – (3,568 ) – (3,568 ) Other repurchases and redemptions during the year 2 (319 ) (182 ) (475 ) – (3,070 ) (4,046 ) Foreign exchange movements 127 511 166 93 1,854 2,751 Other movements (all non-cash) 76 57 (57 ) (135 ) 380 321 At 31 December 2016 864 4,134 599 – 14,234 19,831 1 The repurchases and redemptions resulted in cash outflows of £1,008 million. 1 4.65% Subordinated Fixed Rate Notes 2026 (US$1,500 million). 2 In total, the tender offers, repurchases and redemptions resulted from cash outflows of £7,885 million. 3 Comprising Series 1 (£101 million), Series 2 (£142 million), Series 3 (£110 million). 4 Comprising notes with the following coupon rates: 13% (£244 million), 10.125% (£233 million), 11.875% (£960 million), 10.75% (£466 million), 9.875% (£456 million). |
Disclosure of repurchases and redemptions during the year [text block] | Repurchases and redemptions during the year Preferred securities £m 7.627% Fixed to Floating Rate Guaranteed Non-voting Non-cumulative 163 Preferred Securities 4.385% Step-up Perpetual Capital Securities callable 2017 (€750 million) 74 237 Dated subordinated liabilities £m Subordinated Callable Notes 2017 771 771 Other repurchases and redemptions Preference shares £m 6.267% Non-Cumulative Callable Fixed to Floating Rate Preference shares callable 2016 319 Preferred securities £m 4.939% Non-voting Non-cumulative Perpetual Preferred Securities 32 7.286% Perpetual Regulatory Tier One Securities (Series A) 150 182 Undated subordinated liabilities £m 7.5% Undated Subordinated Step-up Notes 5 4.25% Subordinated Undated Instruments 7 Floating Rate Primary Capital Notes 108 Primary Capital Undated Floating Rate Notes 3 353 5.125% Undated subordinated Step-up Notes callable 2016 2 475 Dated subordinated liabilities £m Subordinated Fixed to Fixed Rate Notes 2021 callable 2016 4 2,359 Callable Floating Rate Subordinated Notes 2016 329 Subordinated Callable Notes 2016 382 3,070 1 4.65% Subordinated Fixed Rate Notes 2026 (US$1,500 million). 2 In total, the tender offers, repurchases and redemptions resulted from cash outflows of £7,885 million. 3 Comprising Series 1 (£101 million), Series 2 (£142 million), Series 3 (£110 million). 4 Comprising notes with the following coupon rates: 13% (£244 million), 10.125% (£233 million), 11.875% (£960 million), 10.75% (£466 million), 9.875% (£456 million). |
SHARE CAPITAL (Tables)
SHARE CAPITAL (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of issued capital [text block] [Abstract] | |
Disclosure of classes of share capital [text block] | 2017 2016 2015 2017 2016 2015 Ordinary shares of 10p (formerly 25p) each At 1 January 71,373,735,357 71,373,735,357 71,373,735,357 7,138 7,138 7,138 Issued under employee share schemes 518,293,181 – – 51 – – Redesignation of limited voting ordinary shares (see below) 80,921,051 – – 8 – – At 31 December 71,972,949,589 71,373,735,357 71,373,735,357 7,197 7,138 7,138 Limited voting ordinary shares of 10p (formerly 25p) each At 1 January 80,921,051 80,921,051 80,921,051 8 8 8 Redesignation to ordinary shares (see below) (80,921,051 ) – – (8 ) – – At 31 December – 80,921,051 80,921,051 – 8 8 Total issued share capital 7,197 7,146 7,146 |
SHARE PREMIUM ACCOUNT (Tables)
SHARE PREMIUM ACCOUNT (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure For Share Premium Account Explanatory [Abstract] | |
Disclosure of share premium accounts | 2017 2016 2015 At 1 January 17,622 17,412 17,281 Issued under employee share schemes 12 – – Redemption of preference shares 1 – 210 131 At 31 December 17,634 17,622 17,412 1 During the year ended 31 December 2016, the Company redeemed all of its outstanding 6.267% Non-cumulative Fixed to Floating Rate Callable US Dollar Preference Shares at their combined sterling equivalent par value of £210 million. These preference shares had been accounted for as subordinated liabilities. On redemption an amount of £210 million was transferred from the distributable merger reserve to the share premium account (2015: £131 million in respect of the redemption of the outstanding 6.0884% Non-cumulative Fixed to Floating Rate Preference Shares and 5.92% Non-cumulative Fixed to Floating Rate Preference Shares). |
OTHER RESERVES (Tables)
OTHER RESERVES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other reserves [member] | |
OTHER RESERVES (Tables) [Line Items] | |
Disclosure of other reserves [text block] | 2017 2016 2015 Other reserves comprise: Merger reserve 7,766 7,766 7,976 Capital redemption reserve 4,115 4,115 4,115 Revaluation reserve in respect of available-for-sale financial assets 685 759 (438 ) Cash flow hedging reserve 1,405 2,136 727 Foreign currency translation reserve (156 ) (124 ) (120 ) At 31 December 13,815 14,652 12,260 |
Merger reserve [member] | |
OTHER RESERVES (Tables) [Line Items] | |
Disclosure of Merger Reserve [text block] | The foreign currency translation reserve represents the cumulative after-tax gains and losses on the translation of foreign operations and exchange differences arising on financial instruments designated as hedges of the Group’s net investment in foreign operations. 2017 2016 2015 Merger reserve At 1 January 7,766 7,976 8,107 Redemption of preference shares (note 40) – (210 ) (131 ) At 31 December 7,766 7,766 7,976 |
Movement in other reserves [Member] | |
OTHER RESERVES (Tables) [Line Items] | |
Disclosure of Movement in Other Reserves [text block] | Movements in other reserves were as follows: 2017 2016 2015 Revaluation reserve in respect of available-for-sale financial assets At 1 January 759 (438 ) (67 ) Adjustment on transfer from held-to-maturity portfolio – 1,544 – Deferred tax – (417 ) – – 1,127 – Change in fair value of available-for-sale financial assets 303 356 (318 ) Deferred tax (26 ) (25 ) (18 ) Current tax (4 ) (3 ) 2 273 328 (334 ) Income statement transfers: Disposals (note 9) (446 ) (575 ) (51 ) Deferred tax 93 196 3 Current tax – (52 ) (1 ) (353 ) (431 ) (49 ) Impairment 6 173 4 Deferred tax – – 8 6 173 12 At 31 December 685 759 (438 ) 2017 2016 2015 £m £m £m Cash flow hedging reserve At 1 January 2,136 727 1,139 Change in fair value of hedging derivatives (363 ) 2,432 537 Deferred tax 121 (610 ) (186 ) (242 ) 1,822 351 Income statement transfers (note 5) (651 ) (557 ) (956 ) Deferred tax 162 144 193 (489 ) (413 ) (763 ) At 31 December 1,405 2,136 727 2017 2016 2015 £m £m £m Foreign currency translation reserve At 1 January (124 ) (120 ) (78 ) Currency translation differences arising in the year (21 ) (110 ) (59 ) Foreign currency gains on net investment hedges (tax: £nil) (11 ) 106 17 At 31 December (156 ) (124 ) (120 ) |
RETAINED PROFITS (Tables)
RETAINED PROFITS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Retained earnings [member] | |
RETAINED PROFITS (Tables) [Line Items] | |
Disclosure Of Retained Earnings [text block] | 2017 2016 2015 At 1 January 3,250 4,416 5,692 Profit for the year 3,807 2,063 860 Dividends paid 1 (2,284 ) (2,014 ) (1,070 ) Distributions on other equity instruments (net of tax) (313 ) (321 ) (314 ) Post-retirement defined benefit scheme remeasurements 482 (1,028 ) (215 ) Gains and losses attributable to own credit risk (net of tax) 2 (40 ) – – Movement in treasury shares (411 ) (175 ) (816 ) Value of employee services: Share option schemes 82 141 107 Other employee award schemes 332 168 172 At 31 December 4,905 3,250 4,416 1 Net of a credit in respect of unclaimed dividends written-back in accordance with the Company’s Articles of Association. 2 During 2017 the Group derecognised, on redemption, financial liabilities on which cumulative fair value movements relating to own credit of £3 million (net of tax) had been recognised directly in retained profits. |
OTHER EQUITY INSTRUMENTS (Table
OTHER EQUITY INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Other Equity Instruments Explanatory [Abstract] | |
Disclosure Of Other Equity Instruments [text block] | 2017 2016 2015 At 1 January and 31 December 5,355 5,355 5,355 |
DIVIDENDS ON ORDINARY SHARES (T
DIVIDENDS ON ORDINARY SHARES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Dividend award [Member] | |
DIVIDENDS ON ORDINARY SHARES (Tables) [Line Items] | |
Disclosure of Dividends On Ordinary Shares [Text Block] | Dividends paid during the year were as follows: 2017 2016 2015 2017 2016 2015 Recommended by directors at previous year end: Final dividend 1.70 1.50 0.75 1,212 1,070 535 Special dividend 0.50 0.50 – 356 357 – Interim dividend paid in the year 1.00 0.85 0.75 720 607 535 3.20 2.85 1.50 2,288 2,034 1,070 |
SHARE-BASED PAYMENTS (Tables)
SHARE-BASED PAYMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
SHARE-BASED PAYMENTS (Tables) [Line Items] | |
Charges to Income Statement [text block] | The charge to the income statement is set out below: 2017 2016 2015 Deferred bonus plan 313 266 255 Executive and SAYE plans: Options granted in the year 17 16 12 Options granted in prior years 81 138 99 98 154 111 Share plans: Shares granted in the year 17 15 15 Shares granted in prior years 9 7 6 26 22 21 Total charge to the income statement 437 442 387 |
Disclosure of range of exercise prices of outstanding share options [text block] | Movements in the number of share options outstanding under the SAYE schemes are set out below: 2017 2016 Number of Weighted Number of Weighted Outstanding at 1 January 678,692,896 51.76 850,146,220 50.99 Granted 268,653,890 51.03 454,667,560 47.49 Exercised (13,119,229 ) 55.58 (401,286,043 ) 40.74 Forfeited (18,545,569 ) 51.70 (10,590,490 ) 56.02 Cancelled (41,211,075 ) 52.77 (204,238,535 ) 60.23 Expired (13,603,825 ) 56.98 (10,005,816 ) 57.08 Outstanding at 31 December 860,867,088 51.34 678,692,896 51.76 Exercisable at 31 December – – – – 2017 2016 Number of Weighted Number Weighted Outstanding at 1 January 218,962,281 Nil 221,397,597 Nil Granted 5,466,405 Nil 4,298,701 Nil Exercised (104,967,667 ) Nil (2,700,679 ) Nil Forfeited (81,883 ) Nil (3,863,477 ) Nil Lapsed (104,855,147 ) Nil (169,861 ) Nil Outstanding at 31 December 14,523,989 Nil 218,962,281 Nil Exercisable at 31 December 7,729,919 Nil 4,504,392 Nil 2017 Number of shares 2016 Number of shares Outstanding at 1 January 358,228,028 398,066,746 Granted 139,812,788 132,194,032 Vested (57,406,864 ) (140,879,465 ) Forfeited (73,268,966 ) (33,713,900 ) Dividend award 3,439,929 2,560,615 Outstanding at 31 December 370,804,915 358,228,028 |
Lloyds Banking Group Long-Term Incentive Plan [Member] | |
SHARE-BASED PAYMENTS (Tables) [Line Items] | |
Disclosure of basis of preparation of financial statements [text block] | The fair value calculations at 31 December 2017 for grants made in the year, using Black-Scholes models and Monte Carlo simulation, are based on the following assumptions: Save-As-You-Earn Executive LTIP Weighted average risk-free interest rate 0.59% 0.18% 0.22% Weighted average expected life 3.3 years 1.9 years 3.6 years Weighted average expected volatility 29% 30% 31% Weighted average expected dividend yield 4.0% 4.0% 0.0% Weighted average share price £0.68 £0.67 £0.68 Weighted average exercise price £0.51 nil nil |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Compensation [Member] | |
RELATED PARTY TRANSACTIONS (Tables) [Line Items] | |
Disclosure of information about key management personnel [text block] | The table below details, on an aggregated basis, key management personnel compensation: 2017 £m 2016 £m 2015 £m Compensation Salaries and other short-term benefits 13 17 14 Post-employment benefits – – – Share-based payments 22 23 18 Total compensation 35 40 32 |
Defined benefit plans [member] | |
RELATED PARTY TRANSACTIONS (Tables) [Line Items] | |
Disclosure of information about key management personnel [text block] | 2017 million 2016 million 2015 million Share option plans At 1 January 3 9 13 Granted, including certain adjustments (includes entitlements of appointed key management personnel) – 3 3 Exercised/lapsed (includes entitlements of former key management personnel) (2 ) (9 ) (7 ) At 31 December 1 3 9 2017 million 2016 million 2015 million Share plans At 1 January 65 82 102 Granted, including certain adjustments (includes entitlements of appointed key management personnel) 37 29 37 Exercised/lapsed (includes entitlements of former key management personnel) (20 ) (46 ) (57 ) At 31 December 82 65 82 |
Loans and receivables, category [member] | |
RELATED PARTY TRANSACTIONS (Tables) [Line Items] | |
Disclosure of information about key management personnel [text block] | The tables below detail, on an aggregated basis, balances outstanding at the year end and related income and expense, together with information relating to other transactions between the Group and its key management personnel: 2017 £m 2016 £m 2015 £m Loans At 1 January 4 5 3 Advanced (includes loans of appointed key management personnel) 1 3 4 Repayments (includes loans of former key management personnel) (3 ) (4 ) (2 ) At 31 December 2 4 5 |
Deposits Placed [Member] | |
RELATED PARTY TRANSACTIONS (Tables) [Line Items] | |
Disclosure of information about key management personnel [text block] | 2017 £m 2016 £m 2015 £m Deposits At 1 January 12 13 16 Placed (includes deposits of appointed key management personnel) 41 41 58 Withdrawn (includes deposits of former key management personnel) (33 ) (42 ) (61 ) At 31 December 20 12 13 |
CONTINGENT LIABILITIES AND C106
CONTINGENT LIABILITIES AND COMMITMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of commitments and contingent liabilities [text block] [Abstract] | |
Disclosure of contingent liabilities [text block] | 2017 £m 2016 £m Contingent liabilities Acceptances and endorsements 71 21 Other: Other items serving as direct credit substitutes 740 779 Performance bonds and other transaction-related contingencies 2,300 2,237 3,040 3,016 Total contingent liabilities 3,111 3,037 |
Disclosure of commitments [text block] | 2017 £m 2016 £m Commitments Forward asset purchases and forward deposits placed 384 648 Undrawn formal standby facilities, credit lines and other commitments to lend: Less than 1 year original maturity: Mortgage offers made 11,156 10,749 Other commitments 81,883 62,697 93,039 73,446 1 year or over original maturity 36,386 40,074 Total commitments 129,809 114,168 |
Disclosure of maturity analysis of operating lease payments [text block] | Where a Group company is the lessee the future minimum lease payments under non-cancellable premises operating leases are as follows: 2017 2016 £m Not later than 1 year 275 264 Later than 1 year and not later than 5 years 845 855 Later than 5 years 934 944 Total operating lease commitments 2,054 2,063 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
FINANCIAL INSTRUMENTS (Tables) [Line Items] | |
Disclosure of measurement basis of financial assets and liabilities [text block] | The following table analyses the carrying amounts of the financial assets and liabilities by category and by balance sheet heading. At fair value Derivatives Held for Designated Available- Loans and Held at Insurance Total At 31 December 2017 Financial assets Cash and balances at central banks – – – – – 58,521 – 58,521 Items in the course of collection from banks – – – – – 755 – 755 Trading and other financial assets at fair value through profit or loss – 42,236 120,642 – – – – 162,878 Derivative financial instruments 1,881 23,953 – – – – – 25,834 Loans and receivables: Loans and advances to banks – – – – 6,611 – – 6,611 Loans and advances to customers – – – – 472,498 – – 472,498 Debt securities – – – – 3,643 – – 3,643 – – – – 482,752 – – 482,752 Available-for-sale financial assets – – – 42,098 – – – 42,098 Total financial assets 1,881 66,189 120,642 42,098 482,752 59,276 – 772,838 Financial liabilities Deposits from banks – – – – – 29,804 – 29,804 Customer deposits – – – – – 418,124 – 418,124 Items in course of transmission to banks – – – – – 584 – 584 Trading and other financial liabilities at fair value through profit or loss – 43,062 7,815 – – – – 50,877 Derivative financial instruments 1,613 24,511 – – – – – 26,124 Notes in circulation – – – – – 1,313 – 1,313 Debt securities in issue – – – – – 72,450 – 72,450 Liabilities arising from insurance contracts and participating investment contracts – – – – – – 103,413 103,413 Liabilities arising from non-participating investment contracts – – – – – – 15,447 15,447 Unallocated surplus within insurance businesses – – – – – – 390 390 Subordinated liabilities – – – – – 17,922 – 17,922 Total financial liabilities 1,613 67,573 7,815 – – 540,197 119,250 736,448 At fair value Derivatives Held for Designated Available- Loans and Held at Insurance Total At 31 December 2016 Financial assets Cash and balances at central banks – – – – – 47,452 – 47,452 Items in the course of collection from banks – – – – – 706 – 706 Trading and other financial assets at fair value through profit or loss – 45,253 105,921 – – – – 151,174 Derivative financial instruments 2,712 33,426 – – – – – 36,138 Loans and receivables: Loans and advances to banks – – – – 26,902 – – 26,902 Loans and advances to customers – – – – 457,958 – – 457,958 Debt securities – – – – 3,397 – – 3,397 – – – – 488,257 – – 488,257 Available-for-sale financial assets – – – 56,524 – – – 56,524 Total financial assets 2,712 78,679 105,921 56,524 488,257 48,158 – 780,251 Financial liabilities Deposits from banks – – – – – 16,384 – 16,384 Customer deposits – – – – – 415,460 – 415,460 Items in course of transmission to banks – – – – – 548 – 548 Trading and other financial liabilities at fair value through profit or loss – 45,079 9,425 – – – – 54,504 Derivative financial instruments 1,964 32,960 – – – – – 34,924 Notes in circulation – – – – – 1,402 – 1,402 Debt securities in issue – – – – – 76,314 – 76,314 Liabilities arising from insurance contracts and participating investment contracts – – – – – – 94,390 94,390 Liabilities arising from non-participating investment contracts – – – – – – 20,112 20,112 Unallocated surplus within insurance businesses – – – – – – 243 243 Subordinated liabilities – – – – – 19,831 – 19,831 Total financial liabilities 1,964 78,039 9,425 – – 529,939 114,745 734,112 |
Disclosure of financial liabilities [text block] | Level 1 Level 2 Level 3 Total At 31 December 2017 Trading and other financial liabilities at fair value through profit or loss Liabilities held at fair value through profit or loss 3 7,812 – 7,815 Trading liabilities: Liabilities in respect of securities sold under repurchase agreements – 41,378 – 41,378 Other deposits – 381 – 381 Short positions in securities 1,106 197 – 1,303 1,106 41,956 – 43,062 Total financial liabilities carried at fair value, excluding derivatives 1,109 49,768 – 50,877 At 31 December 2016 Trading and other financial liabilities at fair value through profit or loss Liabilities held at fair value through profit or loss – 9,423 2 9,425 Trading liabilities: Liabilities in respect of securities sold under repurchase agreements – 42,067 – 42,067 Other deposits – 530 – 530 Short positions in securities 2,417 65 – 2,482 2,417 42,662 – 45,079 Total financial liabilities carried at fair value, excluding derivatives 2,417 52,085 2 54,504 |
Disclosure of significant adjustments to valuation obtained [text block] | The following table summarises the movement on this valuation adjustment account during 2016 and 2017: 2017 2016 At 1 January 744 598 Income statement charge (credit) (260 ) 163 Transfers 37 (17 ) At 31 December 521 744 Represented by: 2017 2016 Credit Valuation Adjustment 408 685 Debit Valuation Adjustment (37 ) (123 ) Funding Valuation Adjustment 150 182 521 744 |
Disclosure of fair value measurement of assets [text block] | The table below analyses the fair values of the financial assets of the Group which are carried at amortised cost by valuation methodology (level 1, 2 or 3, as described on page F-66). Loans and receivables are mainly classified as level 3 due to significant unobservable inputs used in the valuation models. Where inputs are observable, debt securities are classified as level 1 or 2. Valuation hierarchy Carrying value Fair value Level 1 Level 2 Level 3 At 31 December 2017 Loans and receivables: Loans and advances to customers: unimpaired 467,670 467,276 – 16,832 450,444 Loans and advances to customers: impaired 4,828 4,809 – – 4,809 Loans and advances to customers 472,498 472,085 – 16,832 455,253 Loans and advances to banks 6,611 6,564 – 771 5,793 Debt securities 3,643 3,586 – 3,571 15 Reverse repos included in above amounts: Loans and advances to customers 16,832 16,832 – 16,832 – Loans and advances to banks 771 771 – 771 – At 31 December 2016 Loans and receivables: Loans and advances to customers: unimpaired 451,339 450,986 – – 450,986 Loans and advances to customers: impaired 6,619 6,475 – – 6,475 Loans and advances to customers 457,958 457,461 – – 457,461 Loans and advances to banks 26,902 26,812 – – 26,812 Debt securities 3,397 3,303 – 3,288 15 Reverse repos included in above amounts: Loans and advances to customers 8,304 8,304 – – 8,304 Loans and advances to banks 902 902 – – 902 |
Disclosure of fair value measurement of liabilities [text block] | The table below analyses the fair values of the financial liabilities of the Group which are carried at amortised cost by valuation methodology (level 1, 2 or 3, as described on page F-66). Valuation hierarchy Carrying value Fair value Level 1 Level 2 Level 3 At 31 December 2017 Deposits from banks 29,804 29,798 – 29,798 – Customer deposits 418,124 418,441 – 411,591 6,850 Debt securities in issue 72,450 75,756 – 75,756 – Subordinated liabilities 17,922 21,398 – 21,398 – Repos included in above amounts: Deposits from banks 23,175 23,175 – 23,175 – Customer deposits 2,638 2,638 – 2,638 – At 31 December 2016 Deposits from banks 16,384 16,395 – 16,395 – Customer deposits 415,460 416,490 – 408,571 7,919 Debt securities in issue 76,314 79,650 – 79,434 216 Subordinated liabilities 19,831 22,395 – 22,395 – Repos included in above amounts: Deposits from banks 7,279 7,279 – 7,279 – Customer deposits 2,462 2,462 – 2,462 – |
Level 3 of fair value hierarchy [member] | |
FINANCIAL INSTRUMENTS (Tables) [Line Items] | |
Disclosure of financial assets held for trading [text block] | 2017 2016 Trading and Available- Total level 3 Trading and Available- Total level 3 At 1 January 3,806 894 4,700 5,116 684 5,800 Exchange and other adjustments (1 ) (24 ) (25 ) 8 12 20 Gains recognised in the income statement within other income 202 – 202 437 – 437 (Losses) gains recognised in other comprehensive income within the revaluation reserve in respect of available-for-sale financial assets – (117 ) (117 ) – 312 312 Purchases 774 41 815 833 258 1,091 Sales (1,005 ) (61 ) (1,066 ) (2,597 ) (527 ) (3,124 ) Transfers into the level 3 portfolio 152 2 154 186 155 341 Transfers out of the level 3 portfolio (242 ) (39 ) (281 ) (177 ) – (177 ) At 31 December 3,686 696 4,382 3,806 894 4,700 Gains recognised in the income statement, within other income, relating to the change in fair value of those assets held at 31 December 125 – 125 642 – 642 |
Disclosure of Movement in Level 3 Financial Liabilities [text block] | 2017 2016 At 1 January 2 1 Losses (gains) recognised in the income statement within other income (2 ) 1 Redemptions – – At 31 December – 2 Gains recognised in the income statement, within other income, relating to the change in fair value of those liabilities held at 31 December – 1 |
Disclosure of Level 3 Derivative Assets and Liabilities [text block] | The table below analyses movements in level 3 derivative assets and liabilities carried at fair value. 2017 2016 Derivative Derivative Derivative Derivative At 1 January 1,399 (960 ) 1,469 (723 ) Exchange and other adjustments 24 (20 ) 74 (53 ) Losses (gains) recognised in the income statement within other income (208 ) 215 220 (299 ) Purchases (additions) 103 (18 ) 24 (13 ) (Sales) redemptions (79 ) 53 (91 ) 128 Derecognised pursuant to tender offers and redemptions in respect of Enhanced Capital Notes – – (476 ) – Transfers into the level 3 portfolio 33 (74 ) 216 – Transfers out of the level 3 portfolio (216 ) – (37 ) – At 31 December 1,056 (804 ) 1,399 (960 ) Gains (losses) recognised in the income statement, within other income, relating to the change in fair value of those assets or liabilities held at 31 December (208 ) 213 284 (262 ) |
Disclosure of Sensitivity of Level 3 Valuations [text block] | At 31 December 2017 At 31 December 2016 Effect of reasonably possible alternative assumptions 2 Effect of reasonably possible 2 Valuation techniques Significant unobservable inputs 1 Carrying Favourable Unfavourable Carrying Favourable Unfavourable Trading and other financial assets at fair value through profit or loss Debt securities Discounted cash flows Credit spreads (bps) (1bps/2bps) 11 – – 29 5 (5 ) Asset-backed securities Lead manager or broker quote n/a – – – 59 – – Equity and venture capital investments Market approach Earnings multiple 1,879 65 (65 ) 2,163 63 (68 ) Underlying asset/net asset value (incl. property prices) 3 n/a 50 5 (5 ) 54 2 (3 ) Unlisted equities, debt securities and property partnerships in the life funds Underlying asset/net asset value (incl. property prices), broker quotes or discounted cash flows 3 n/a 1,746 26 (76 ) 1,501 – (32 ) 3,686 3,806 Available-for-sale financial assets Asset-backed securities Lead manager or broker quote/consensus pricing n/a 92 – (4 ) 133 – – Equity and venture capital investments Underlying asset/net asset value (incl. property prices) 3 n/a 604 83 (42 ) 761 48 (53 ) Other Various n/a – – – 696 894 Derivative financial assets Interest rate derivatives Option pricing model Interest rate volatility 1,056 11 (3 ) 1,399 (3 ) (19 ) 1,056 1,399 Level 3 financial assets carried at fair value 5,438 6,099 Trading and other financial liabilities at fair value through profit or loss – – – 2 – – Derivative financial liabilities Interest rate derivatives Option pricing model Interest rate volatility 804 – – 960 – – 804 960 Level 3 financial liabilities carried at fair value 804 962 |
Recurring fair value measurement [member] | |
FINANCIAL INSTRUMENTS (Tables) [Line Items] | |
Schedule of Derivatives by recurring fair value measurement [text block] | The table below analyses these derivative balances by valuation methodology (level 1, 2 or 3, as described on page F-66). The fair value measurement approach is recurring in nature. There were no significant transfers between level 1 and level 2 during the year. 2017 2016 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Derivative assets 246 24,532 1,056 25,834 270 34,469 1,399 36,138 Derivative liabilities (587 ) (24,733 ) (804 ) (26,124 ) (358 ) (33,606 ) (960 ) (34,924 ) |
Financial Assets, Excluding Derivatives [Member] | |
FINANCIAL INSTRUMENTS (Tables) [Line Items] | |
Disclosure of financial assets [text block] | Level 1 £m Level 2 £m Level 3 £m Total £m At 31 December 2017 Trading and other financial assets at fair value through profit or loss Loans and advances to customers – 29,976 – 29,976 Loans and advances to banks – 1,614 – 1,614 Debt securities: Government securities 20,268 1,729 23 22,020 Other public sector securities – 1,526 1 1,527 Bank and building society certificates of deposit – 222 – 222 Asset-backed securities: Mortgage-backed securities 3 348 49 400 Other asset-backed securities 5 229 787 1,021 Corporate and other debt securities – 18,542 1,448 19,990 20,276 22,596 2,308 45,180 Equity shares 84,694 18 1,378 86,090 Treasury and other bills 18 – – 18 Total trading and other financial assets at fair value through profit or loss 104,988 54,204 3,686 162,878 Available-for-sale financial assets Debt securities: Government securities 34,534 174 – 34,708 Bank and building society certificates of deposit – 167 – 167 Asset-backed securities: Mortgage-backed securities – 1,156 – 1,156 Other asset-backed securities – 163 92 255 Corporate and other debt securities 229 4,386 – 4,615 34,763 6,046 92 40,901 Equity shares 555 38 604 1,197 Total available-for-sale financial assets 35,318 6,084 696 42,098 Total financial assets carried at fair value, excluding derivatives 140,306 60,288 4,382 204,976 Level 1 £m Level 2 £m Level 3 £m Total £m At 31 December 2016 Trading and other financial assets at fair value through profit or loss Loans and advances to customers – 30,473 – 30,473 Loans and advances to banks – 2,606 – 2,606 Debt securities: Government securities 24,959 1,773 – 26,732 Other public sector securities – 1,279 46 1,325 Bank and building society certificates of deposit – 244 – 244 Asset-backed securities: Mortgage-backed securities – 654 53 707 Other asset-backed securities 4 1,092 442 1,538 Corporate and other debt securities 112 17,968 1,752 19,832 25,075 23,010 2,293 50,378 Equity shares 66,147 37 1,513 67,697 Treasury and other bills 20 – – 20 Total trading and other financial assets at fair value through profit or loss 91,242 56,126 3,806 151,174 Available-for-sale financial assets Debt securities: Government securities 48,542 172 – 48,714 Bank and building society certificates of deposit – 142 – 142 Asset-backed securities: Mortgage-backed securities – 108 – 108 Other asset-backed securities – 184 133 317 Corporate and other debt securities 107 5,923 – 6,030 48,649 6,529 133 55,311 Equity shares 435 17 761 1,213 Total available-for-sale financial assets 49,084 6,546 894 56,524 Total financial assets carried at fair value, excluding derivatives 140,326 62,672 4,700 207,698 |
TRANSFERS OF FINANCIAL ASSETS (
TRANSFERS OF FINANCIAL ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of transferred financial assets that are not derecognised in their entirety [text block] [Abstract] | |
Schedule of Transfered Assets and Liabilities [Text Block] | 2017 2016 Carrying Carrying Carrying Carrying Repurchase and securities lending transactions Trading and other financial assets at fair value through profit or loss 9,946 3,257 10,256 3,380 Available-for-sale financial assets 19,359 16,753 24,681 21,809 Loans and receivables: Loans and advances to customers – – 583 – Securitisation programmes Loans and receivables: Loans and advances to customers 1 35,475 3,660 52,184 7,253 1 The carrying value of associated liabilities excludes securitisation notes held by the Group of £21,582 million (31 December 2016: £26,435 million). |
OFFSETTING OF FINANCIAL ASSE109
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Offset [Member] | Offset [Member] | |
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES (Tables) [Line Items] | |
Disclosure of Offsetting of Financial Assets and Liabilities [text block] | The following information relates to financial assets and liabilities which have been offset in the balance sheet and those which have not been offset but for which the Group has enforceable master netting agreements or collateral arrangements in place with counterparties. Related amounts where set off in 3 Potential At 31 December 2017 Gross amounts of assets and liabilities 1 £m Amounts offset in the balance sheet 2 £m Net amounts presented in the balance sheet £m Cash collateral Non-cash net amounts if offset of related amounts permitted £m Financial assets Trading and other financial assets at fair value through profit or loss: Excluding reverse repos 131,288 – 131,288 – (3,322 ) 127,966 Reverse repos 38,882 (7,292 ) 31,590 – (31,590 ) – 170,170 (7,292 ) 162,878 – (34,912 ) 127,966 Derivative financial instruments 72,869 (47,035 ) 25,834 (5,419 ) (13,807 ) 6,608 Loans and advances to banks: Excluding reverse repos 5,840 – 5,840 (2,293 ) – 3,547 Reverse repos 771 – 771 (646 ) (125 ) – 6,611 – 6,611 (2,939 ) (125 ) 3,547 Loans and advances to customers: Excluding reverse repos 457,382 (1,716 ) 455,666 (1,656 ) (7,030 ) 446,980 Reverse repos 16,832 – 16,832 – (16,832 ) – 474,214 (1,716 ) 472,498 (1,656 ) (23,862 ) 446,980 Debt securities 3,643 – 3,643 – – 3,643 Available-for-sale financial assets 42,098 – 42,098 – (16,751 ) 25,347 Financial liabilities Deposits from banks: Excluding repos 6,629 – 6,629 (4,860 ) – 1,769 Repos 23,175 – 23,175 – (23,175 ) – 29,804 – 29,804 (4,860 ) (23,175 ) 1,769 Customer deposits: Excluding repos 417,009 (1,523 ) 415,486 (1,205 ) (7,030 ) 407,251 Repos 2,638 – 2,638 – (2,638 ) – 419,647 (1,523 ) 418,124 (1,205 ) (9,668 ) 407,251 Trading and other financial liabilities at fair value through profit or loss: Excluding repos 9,499 – 9,499 – – 9,499 Repos 48,670 (7,292 ) 41,378 – (41,378 ) – 58,169 (7,292 ) 50,877 – (41,378 ) 9,499 Derivative financial instruments 73,352 (47,228 ) 26,124 (3,949 ) (17,459 ) 4,716 Related amounts where set off in the balance sheet not permitted 3 Potential At 31 December 2016 Gross amounts of assets and liabilities 1 £m Amounts offset in the balance sheet 2 £m Net amounts presented in the balance sheet £m Cash collateral received/ pledged £m Non-cash collateral received/ pledged £m net amounts if offset of related amounts permitted £m Financial assets Trading and other financial assets at fair value through profit or loss: Excluding reverse repos 118,095 – 118,095 – (3,265 ) 114,830 Reverse repos 35,298 (2,219 ) 33,079 – (33,079 ) – 153,393 (2,219 ) 151,174 – (36,344 ) 114,830 Derivative financial instruments 92,390 (56,252 ) 36,138 (6,472 ) (19,906 ) 9,760 Loans and advances to banks: Excluding reverse repos 26,000 – 26,000 (2,826 ) – 23,174 Reverse repos 902 – 902 – (902 ) – 26,902 – 26,902 (2,826 ) (902 ) 23,174 Loans and advances to customers: Excluding reverse repos 451,290 (1,636 ) 449,654 (1,793 ) (6,331 ) 441,530 Reverse repos 8,304 – 8,304 – (8,304 ) – 459,594 (1,636 ) 457,958 (1,793 ) (14,635 ) 441,530 Debt securities 3,397 – 3,397 – – 3,397 Available-for-sale financial assets 56,524 – 56,524 – (21,475 ) 35,049 Financial liabilities Deposits from banks: Excluding repos 9,105 – 9,105 (5,080 ) (695 ) 3,330 Repos 7,279 – 7,279 – (7,279 ) – 16,384 – 16,384 (5,080 ) (7,974 ) 3,330 Customer deposits: Excluding repos 415,153 (2,155 ) 412,998 (1,391 ) (6,331 ) 405,276 Repos 2,462 – 2,462 – (2,462 ) – 417,615 (2,155 ) 415,460 (1,391 ) (8,793 ) 405,276 Trading and other financial liabilities at fair value through profit or loss: Excluding repos 12,437 – 12,437 – – 12,437 Repos 44,286 (2,219 ) 42,067 – (42,067 ) – 56,723 (2,219 ) 54,504 – (42,067 ) 12,437 Derivative financial instruments 90,657 (55,733 ) 34,924 (4,620 ) (24,820 ) 5,484 1 After impairment allowance. 2 The amounts set off in the balance sheet as shown above represent derivatives and repurchase agreements with central clearing houses which meet the criteria for offsetting under IAS 32. 3 The Group enters into derivatives and repurchase and reverse repurchase agreements with various counterparties which are governed by industry standard master netting agreements. The Group holds and provides cash and securities collateral in respective of derivative transactions covered by these agreements. The right to set off balances under these master netting agreements or to set off cash and securities collateral only arises in the event of non-payment or default and, as a result, these arrangements do not qualify for offsetting under IAS 32. |
FINANCIAL RISK MANAGEMENT (Tabl
FINANCIAL RISK MANAGEMENT (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
FINANCIAL RISK MANAGEMENT (Tables) [Line Items] | |
Description of accounting policy for functional currency [text block] | 2017 2016 Euro US Dollar Other Euro US Dollar Other Gross exposure 73 374 32 247 479 36 Net investment hedges (41 ) – – (216 ) (479 ) – Total structural foreign currency exposures, after net investment hedges 32 374 32 31 – 36 |
Disclosure of credit risk exposure [text block] | At 31 December 2017 At 31 December 2016 Maximum Offset 2 Net exposure Maximum Offset 2 Net exposure Loans and receivables: Loans and advances to banks, net 1 6,611 – 6,611 26,902 – 26,902 Loans and advances to customers, net 1 472,498 (7,030 ) 465,468 457,958 (6,331 ) 451,627 Debt securities, net 1 3,643 – 3,643 3,397 – 3,397 482,752 (7,030 ) 475,722 488,257 (6,331 ) 481,926 Available-for-sale financial assets 3 40,901 – 40,901 55,311 – 55,311 Trading and other financial assets at fair value through profit or loss: 3,4 Loans and advances 31,590 – 31,590 33,079 – 33,079 Debt securities, treasury and other bills 45,198 – 45,198 50,398 – 50,398 76,788 – 76,788 83,477 – 83,477 Derivative assets 25,834 (13,049 ) 12,785 36,138 (18,539 ) 17,599 Assets arising from reinsurance contracts held 602 – 602 714 – 714 Financial guarantees 5,820 – 5,820 6,883 – 6,883 Off-balance sheet items: Acceptances and endorsements 71 – 71 21 – 21 Other items serving as direct credit substitutes 740 – 740 779 – 779 Performance bonds and other transaction-related contingencies 2,300 – 2,300 2,237 – 2,237 Irrevocable commitments 60,126 – 60,126 63,203 – 63,203 63,237 – 63,237 66,240 – 66,240 695,934 (20,079 ) 675,855 737,020 (24,870 ) 712,150 1 Amounts shown net of related impairment allowances. 2 Offset items comprise deposit amounts available for offset, and amounts available for offset under master netting arrangements, that do not meet the criteria under IAS 32 to enable loans and advances and derivative assets respectively to be presented net of these balances in the financial statements. 3 Excluding equity shares. 4 Includes assets within the Group’s unit-linked funds for which credit risk is borne by the policyholders and assets within the Group’s With-Profits funds for which credit risk is largely borne by the policyholders. Consequently, the Group has no significant exposure to credit risk for such assets which back related contract liabilities. |
Disclosure of L&A to Customers and L&A held at FVTPL | Loans and advances to customers Loans and Loans and advances to banks £m Retail – mortgages £m Retail – other £m Commercial £m Total £m advances designated at fair value through profit or loss £m At 31 December 2017 Neither past due nor impaired 6,577 295,765 48,897 116,396 461,058 31,590 Past due but not impaired 6 5,934 585 336 6,855 – Impaired – no provision required 28 640 306 700 1,646 – – provision held – 3,529 1,053 1,613 6,195 – Gross 6,611 305,868 50,841 119,045 475,754 31,590 Allowance for impairment losses – (1,604 ) (655 ) (1,183 ) (3,442 ) – Fair value adjustments – 186 – Net balance sheet carrying value 6,611 472,498 31,590 At 31 December 2016 Neither past due nor impaired 26,888 296,303 39,478 109,364 445,145 33,079 Past due but not impaired 14 7,340 386 305 8,031 – Impaired – no provision required – 784 392 689 1,865 – – provision held – 3,536 1,038 2,056 6,630 – Gross 26,902 307,963 41,294 112,414 461,671 33,079 Allowance for impairment losses – (1,696 ) (458 ) (1,378 ) (3,532 ) – Fair value adjustments – (181 ) – Net balance sheet carrying value 26,902 457,958 33,079 |
Information about credit quality of neither past due nor impaired financial assets [text block] | Loans and advances to customers Loans and advances designated Loans and at fair value advances Retail – Retail – through to banks mortgages other Commercial Total profit or loss £m £m £m £m £m £m At 31 December 2017 Good quality 6,351 294,748 43,145 81,121 31,548 Satisfactory quality 198 790 4,770 30,154 42 Lower quality 28 32 286 4,807 – Below standard, but not impaired – 195 696 314 – Total loans and advances which are neither past due nor impaired 6,577 295,765 48,897 116,396 461,058 31,590 At 31 December 2016 Good quality 26,745 295,286 34,195 72,083 33,049 Satisfactory quality 87 814 4,479 30,433 30 Lower quality 3 39 387 6,433 – Below standard, but not impaired 53 164 417 415 – Total loans and advances which are neither past due nor impaired 26,888 296,303 39,478 109,364 445,145 33,079 |
Analysis of age of financial assets that are past due but not impaired [text block] | Loans and advances to customers Loans and advances designated Loans and at fair value advances Retail – Retail – through to banks mortgages other Commercial Total profit or loss £m £m £m £m £m £m At 31 December 2017 0-30 days 6 3,057 458 246 3,761 – 30-60 days – 1,115 111 10 1,236 – 60-90 days – 785 3 13 801 – 90-180 days – 977 3 8 988 – Over 180 days – – 10 59 69 – Total loans and advances which are past due but not impaired 6 5,934 585 336 6,855 – At 31 December 2016 0-30 days 14 3,547 285 157 3,989 – 30-60 days – 1,573 75 37 1,685 – 60-90 days – 985 2 74 1,061 – 90-180 days – 1,235 6 14 1,255 – Over 180 days – – 18 23 41 – Total loans and advances which are past due but not impaired 14 7,340 386 305 8,031 – |
Disclosure of fair value of financial instruments [text block] | An analysis of the Group’s trading and other financial assets at fair value through profit or loss is included in note 15. The credit quality of the Group’s debt securities, treasury and other bills held at fair value through profit or loss is set out below: 2017 2016 Investment Investment grade 1 Other 2 Total grade 1 Other 2 Total £m £m £m £m £m £m Debt securities, treasury and other bills held at fair value through profit or loss Trading assets: Government securities 9,833 – 9,833 11,828 – 11,828 Asset-backed securities: Mortgage-backed securities 84 105 189 47 – 47 Other asset-backed securities 95 – 95 69 – 69 179 105 284 116 – 116 Corporate and other debt securities 469 54 523 221 3 224 Total held as trading assets 10,481 159 10,640 12,165 3 12,168 Other assets held at fair value through profit or loss: Government securities 12,180 7 12,187 14,904 – 14,904 Other public sector securities 1,519 8 1,527 1,318 7 1,325 Bank and building society certificates of deposit 222 – 222 244 – 244 Asset-backed securities: Mortgage-backed securities 208 3 211 633 27 660 Other asset-backed securities 924 2 926 1,178 291 1,469 1,132 5 1,137 1,811 318 2,129 Corporate and other debt securities 17,343 2,124 19,467 17,445 2,163 19,608 Total debt securities held at fair value through profit or loss 32,396 2,144 34,540 35,722 2,488 38,210 Treasury bills and other bills 18 – 18 20 – 20 Total other assets held at fair value through profit or loss 32,414 2,144 34,558 35,742 2,488 38,230 Total held at fair value through profit or loss 42,895 2,303 45,198 47,907 2,491 50,398 1 Credit ratings equal to or better than ‘BBB’. 2 Other comprises sub-investment grade (2017: £331 million; 2016: £485 million) and not rated (2017: £1,972 million; 2016: £2,006 million). |
Analysis of Loan-to-value ratio of Residential Mortgage Lending | An analysis by loan-to-value ratio of the Group’s residential mortgage lending is provided below. The value of collateral used in determining the loan-to-value ratios has been estimated based upon the last actual valuation, adjusted to take into account subsequent movements in house prices, after making allowance for indexation error and dilapidations. 2017 2016 Neither Neither past due Past due but past due Past due but nor impaired not impaired Impaired Gross nor impaired not impaired Impaired Gross £m £m £m £m £m £m £m £m Less than 70 per cent 217,070 4,309 2,443 223,822 220,497 5,288 2,334 228,119 70 per cent to 80 per cent 43,045 787 595 44,427 39,789 1,004 648 41,441 80 per cent to 90 per cent 25,497 500 436 26,433 23,589 621 495 24,705 90 per cent to 100 per cent 7,085 177 245 7,507 7,983 223 355 8,561 Greater than 100 per cent 3,068 161 450 3,679 4,445 204 488 5,137 Total 295,765 5,934 4,169 305,868 296,303 7,340 4,320 307,963 |
Participating investment contracts [Member] | |
FINANCIAL RISK MANAGEMENT (Tables) [Line Items] | |
Disclosure of Liabilities Arising from Insurance and Participating Investment Contracts [text block] | Liabilities arising from insurance and participating investment contracts are analysed on a behavioural basis, as permitted by IFRS 4, as follows: Up to 1-3 3-12 1-5 Over 5 Total At 31 December 2017 1,708 1,747 6,467 26,479 67,012 103,413 At 31 December 2016 1,283 1,836 6,266 23,425 61,580 94,390 |
Available-for-Sale Financial Assets (Excluding Equity Shares) [Member] | |
FINANCIAL RISK MANAGEMENT (Tables) [Line Items] | |
Disclosure of Available-for-Sale Financial Assets (Excluding Equity Shares) [text block] | An analysis of the Group’s available-for-sale financial assets is included in note 21. The credit quality of the Group’s available-for-sale financial assets (excluding equity shares) is set out below: 2017 2016 Investment Investment grade 1 Other 2 Total grade 1 Other 2 Total £m £m £m £m £m £m Debt securities: Government securities 34,708 – 34,708 48,714 – 48,714 Bank and building society certificates of deposit 167 – 167 142 – 142 Asset-backed securities: Mortgage-backed securities 1,156 – 1,156 108 – 108 Other asset-backed securities 235 20 255 312 5 317 1,391 20 1,411 420 5 425 Corporate and other debt securities 4,250 365 4,615 6,030 – 6,030 Total held as available-for-sale financial assets 40,516 385 40,901 55,306 5 55,311 1 Credit ratings equal to or better than ‘BBB’. 2 Other comprises sub-investment grade (2017: £9 million; 2016: £5 million) and not rated (2017: £376 million; 2016: £nil). |
Derivative assets [Member] | |
FINANCIAL RISK MANAGEMENT (Tables) [Line Items] | |
Disclosure of Derivative Assets [text block] | 2017 2016 Investment Investment grade 1 Other 2 Total grade 1 Other 2 Total £m £m £m £m £m £m Trading and other 21,742 2,211 23,953 31,373 2,053 33,426 Hedging 1,874 7 1,881 2,664 48 2,712 Total derivative financial instruments 23,616 2,218 25,834 34,037 2,101 36,138 1 Credit ratings equal to or better than ‘BBB’. 2 Other comprises sub-investment grade (2017: £1,878 million; 2016: £1,830 million) and not rated (2017: £340 million; 2016: £271 million). |
Consumer loans [member] | |
FINANCIAL RISK MANAGEMENT (Tables) [Line Items] | |
Explanation of impairment loss recognised or reversed [text block] | The table below sets out the reconciliation of the allowance for impairment losses of £2,201 million (2016: £2,412 million) shown in note 20 to the allowance for impairment losses on an underlying basis of £3,442 million (2016: £3,532 million) shown above: 2017 2016 Allowance for impairment losses on loans and advances to customers 2,201 2,412 Impairment allowance of HBOS and MBNA at acquisition 1 11,309 11,147 Impairment charge covered by fair value adjustments 12,321 12,236 Amounts subsequently written off, net of foreign exchange and other movements (22,389 ) (22,263 ) Allowance for impairment losses on loans and advances to customers on an underlying basis 3,442 3,532 1 Comprises an allowance in respect of HBOS (£11,147 million) and, in 2017, MBNA (£162 million). These amounts impact the impairment allowance on an underlying basis but not on a statutory basis. |
Corporate loans [member] | |
FINANCIAL RISK MANAGEMENT (Tables) [Line Items] | |
Disclosure of Debt Securities Classified as Loans and Receivables [text block] | An analysis by credit rating of the Group’s debt securities classified as loans and receivables is provided below: 2017 2016 Investment Investment grade 1 Other 2 Total grade 1 Other 2 Total £m £m £m £m £m £m Asset-backed securities: Mortgage-backed securities 2,366 – 2,366 2,089 – 2,089 Other asset-backed securities 1,164 96 1,260 1,192 98 1,290 3,530 96 3,626 3,281 98 3,379 Corporate and other debt securities 27 16 43 29 65 94 Gross exposure 3,557 112 3,669 3,310 163 3,473 Allowance for impairment losses (26 ) (76 ) Total debt securities classified as loans and receivables 3,643 3,397 1 Credit ratings equal to or better than ‘BBB’. 2 Other comprises sub-investment grade (2017: £89 million; 2016: £91 million) and not rated (2017: £23 million; 2016: £72 million). |
Assets and liabilities [member] | |
FINANCIAL RISK MANAGEMENT (Tables) [Line Items] | |
Disclosure of maturity analysis for derivative financial liabilities [text block] | The table below analyses assets and liabilities of the Group into relevant maturity groupings based on the remaining contractual period at the balance sheet date; balances with no fixed maturity are included in the over 5 years category. Certain balances, included in the table below on the basis of their residual maturity, are repayable on demand upon payment of a penalty. Up to 1 month £m 1-3 months £m 3-6 months £m 6-9 months £m 9-12 months £m 1-2 years £m 2-5 years £m Over 5 years £m Total £m At 31 December 2017 Assets Cash and balances at central banks 58,519 2 – – – – – – 58,521 Trading and other financial assets at fair value through profit or loss 11,473 13,345 4,858 2,781 1,056 2,655 5,341 121,369 162,878 Derivative financial instruments 449 601 763 451 503 965 2,763 19,339 25,834 Loans and advances to banks 3,104 314 190 190 192 131 2,405 85 6,611 Loans and advances to customers 28,297 15,953 13,585 11,881 10,482 29,340 70,967 291,993 472,498 Debt securities held as loans and receivables 10 29 – – 7 350 2,775 472 3,643 Available-for-sale financial assets 59 365 286 1,025 265 3,040 15,366 21,692 42,098 Other assets 3,807 897 414 1,170 854 725 5,618 26,541 40,026 Total assets 105,718 31,506 20,096 17,498 13,359 37,206 105,235 481,491 812,109 Liabilities Deposits from banks 2,810 2,318 1,885 87 28 – 22,378 298 29,804 Customer deposits 366,778 18,821 10,615 5,524 5,074 7,823 2,986 503 418,124 Derivative financial instruments, trading and other financial liabilities at fair value through profit or loss 19,215 16,932 4,933 3,419 948 1,961 4,298 25,295 77,001 Debt securities in issue 3,248 6,014 4,431 3,506 2,902 6,333 25,669 20,347 72,450 Liabilities arising from insurance and investment contracts 1,898 2,003 2,484 2,466 2,425 8,532 21,842 77,210 118,860 Other liabilities 4,229 2,805 239 2,216 1,894 1,498 1,933 13,991 28,805 Subordinated liabilities – 202 1,588 – 570 574 3,983 11,005 17,922 Total liabilities 398,178 49,095 26,175 17,218 13,841 26,721 83,089 148,649 762,966 At 31 December 2016 Assets Cash and balances at central banks 47,446 2 4 – – – – – 47,452 Trading and other financial assets at fair value through profit or loss 20,168 14,903 7,387 2,914 817 1,680 6,011 97,294 151,174 Derivative financial instruments 956 1,700 1,393 786 651 2,230 4,165 24,257 36,138 Loans and advances to banks 9,801 6,049 3,894 1,201 867 1,281 3,692 117 26,902 Loans and advances to customers 20,179 10,651 14,235 12,400 10,773 26,007 69,300 294,413 457,958 Debt securities held as loans and receivables 8 – – 242 – – 34 3,113 3,397 Available-for-sale financial assets 127 259 73 637 222 1,887 16,080 37,239 56,524 Other assets 5,025 583 584 1,560 1,059 1,846 4,808 22,783 38,248 Total assets 103,710 34,147 27,570 19,740 14,389 34,931 104,090 479,216 817,793 Liabilities Deposits from banks 3,772 2,779 1,062 503 13 43 7,859 353 16,384 Customer deposits 347,753 18,936 8,961 10,482 8,477 13,859 6,430 562 415,460 Derivative financial instruments, trading and other financial liabilities at fair value through profit or loss 18,381 19,640 8,779 1,696 1,179 3,843 5,575 30,335 89,428 Debt securities in issue 4,065 8,328 6,433 4,158 1,224 6,939 25,020 20,147 76,314 Liabilities arising from insurance and investment contracts 1,583 2,190 2,737 2,463 2,377 8,588 19,971 74,593 114,502 Other liabilities 3,282 2,266 1,213 2,164 1,440 413 3,087 23,544 37,409 Subordinated liabilities – 390 161 393 – 1,750 4,527 12,610 19,831 Total liabilities 378,836 54,529 29,346 21,859 14,710 35,435 72,469 162,144 769,328 |
Financial liabilities, category [member] | |
FINANCIAL RISK MANAGEMENT (Tables) [Line Items] | |
Disclosure of maturity analysis for derivative financial liabilities [text block] | The table below analyses financial instrument liabilities of the Group, excluding those arising from insurance and participating investment contracts, on an undiscounted future cash flow basis according to contractual maturity, into relevant maturity groupings based on the remaining period at the balance sheet date; balances with no fixed maturity are included in the over 5 years category. Up to 1-3 3-12 1-5 Over 5 Total At 31 December 2017 Deposits from banks 2,516 3,545 2,096 21,498 660 30,315 Customer deposits 367,103 18,854 21,308 11,198 2,375 420,838 Trading and other financial liabilities at fair value through profit or loss 21,286 14,424 6,499 4,251 13,044 59,504 Debt securities in issue 3,444 6,331 12,562 36,999 23,923 83,259 Liabilities arising from non-participating investment contracts 15,447 – – – – 15,447 Subordinated liabilities 231 454 2,907 7,170 19,164 29,926 Total non-derivative financial liabilities 410,027 43,608 45,372 81,116 59,166 639,289 Derivative financial liabilities: Gross settled derivatives – outflows 23,850 31,974 24,923 43,444 30,605 154,796 Gross settled derivatives – inflows (23,028 ) (30,972 ) (23,886 ) (43,523 ) (32,065 ) (153,474 ) Gross settled derivatives – net flows 822 1,002 1,037 (79 ) (1,460 ) 1,322 Net settled derivatives liabilities 17,425 128 776 974 2,795 22,098 Total derivative financial liabilities 18,247 1,130 1,813 895 1,335 23,420 At 31 December 2016 Deposits from banks 3,686 4,154 1,541 5,883 1,203 16,467 Customer deposits 347,573 19,151 28,248 20,789 1,294 417,055 Trading and other financial liabilities at fair value through profit or loss 14,390 19,718 11,845 1,938 13,513 61,404 Debt securities in issue 7,590 8,721 12,533 36,386 17,635 82,865 Liabilities arising from non-participating investment contracts 20,112 – – – – 20,112 Subordinated liabilities 41 674 1,289 9,279 18,542 29,825 Total non-derivative financial liabilities 393,392 52,418 55,456 74,275 52,187 627,728 Derivative financial liabilities: Gross settled derivatives – outflows 33,128 24,088 25,366 52,925 36,462 171,969 Gross settled derivatives – inflows (31,359 ) (22,401 ) (23,510 ) (49,239 ) (32,382 ) (158,891 ) Gross settled derivatives – net flows 1,769 1,687 1,856 3,686 4,080 13,078 Net settled derivatives liabilities 21,669 117 620 1,167 3,020 26,593 Total derivative financial liabilities 23,438 1,804 2,476 4,853 7,100 39,671 |
Off balance sheet [Member] | |
FINANCIAL RISK MANAGEMENT (Tables) [Line Items] | |
Maturity Analysis For Commitments And Contingent Liabilities | The following tables set out the amounts and residual maturities of the Group’s off balance sheet contingent liabilities and commitments. Up to 1-3 3-6 6-9 9-12 1-3 3-5 Over 5 Total At 31 December 2017 Acceptances and endorsements 12 51 4 – – 4 – – 71 Other contingent liabilities 392 669 210 131 205 506 271 656 3,040 Total contingent liabilities 404 720 214 131 205 510 271 656 3,111 Lending commitments 66,964 3,137 5,966 5,525 11,440 17,374 15,106 3,913 129,425 Other commitments 19 – – 38 – 46 71 210 384 Total commitments 66,983 3,137 5,966 5,563 11,440 17,420 15,177 4,123 129,809 Total contingents and commitments 67,387 3,857 6,180 5,694 11,645 17,930 15,448 4,779 132,920 Up to 1 month £m 1-3 months £m 3-6 months £m 6-9 months £m 9-12 months £m 1-3 years £m 3-5 years £m Over 5 years £m Total £m At 31 December 2016 Acceptances and endorsements 13 6 – – 1 1 – – 21 Other contingent liabilities 427 782 163 153 122 466 280 623 3,016 Total contingent liabilities 440 788 163 153 123 467 280 623 3,037 Lending commitments 48,210 3,546 5,276 4,783 11,628 17,212 18,775 4,090 113,520 Other commitments – 3 – 41 1 79 122 402 648 Total commitments 48,210 3,549 5,276 4,824 11,629 17,291 18,897 4,492 114,168 Total contingents and commitments 48,650 4,337 5,439 4,977 11,752 17,758 19,177 5,115 117,205 |
Securities lending [member] | |
FINANCIAL RISK MANAGEMENT (Tables) [Line Items] | |
Disclosure of transfers of financial assets [text block] | The following on balance sheet financial assets have been lent to counterparties under securities lending transactions: 2017 2016 £m £m Trading and other financial assets at fair value through profit or loss 6,622 6,991 Loans and advances to customers 197 583 Available-for-sale financial assets 2,608 3,206 9,427 10,780 |
CONSOLIDATED CASH FLOW STATE111
CONSOLIDATED CASH FLOW STATEMENT (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of cash flow statement [text block] [Abstract] | |
Description of nature of assets with significant risk of material adjustments within next financial year | 2017 2016 £m 2015 £m Change in loans and receivables (24,747 ) 710 6,081 Change in derivative financial instruments, trading and other financial assets at fair value through profit or loss 9,916 (13,889 ) 20,689 Change in other operating assets (661 ) 961 7,930 Change in operating assets (15,492 ) (12,218 ) 34,700 |
Disclosure of change in operating liabilities [text block] | 2017 2016 £m 2015 £m Change in deposits from banks 13,415 (654 ) 6,107 Change in customer deposits 2,913 (3,690 ) (4,252 ) Change in debt securities in issue (3,600 ) (6,552 ) 5,657 Change in derivative financial instruments, trading and other liabilities at fair value through profit or loss (12,481 ) 11,265 (16,924 ) Change in investment contract liabilities (4,665 ) (2,665 ) (3,922 ) Change in other operating liabilities 136 (363 ) 1,349 Change in operating liabilities (4,282 ) (2,659 ) (11,985 ) |
Disclosure of Non-cash and other items [text block] | 2017 2016 2015 Depreciation and amortisation 2,370 2,380 2,112 Revaluation of investment properties (230 ) 83 (416 ) Allowance for loan losses 691 592 441 Write-off of allowance for loan losses, net of recoveries (1,061 ) (1,272 ) (3,467 ) Impairment of available-for-sale financial assets 6 173 4 Change in insurance contract liabilities 9,168 14,084 (2,856 ) Payment protection insurance provision 1,300 1,350 4,000 Other regulatory provisions 865 1,085 837 Other provision movements (17 ) (40 ) 337 Net charge (credit) in respect of defined benefit schemes 369 287 315 Impact of consolidation and deconsolidation of OEICs 1 – (3,157 ) (5,978 ) Unwind of discount on impairment allowances (23 ) (32 ) (56 ) Foreign exchange impact on balance sheet 2 125 (155 ) 507 Loss on ECN transactions – 721 – Interest expense on subordinated liabilities 1,436 1,864 1,970 Loss (profit) on disposal of businesses – – 46 Net gain on sale of available-for-sale financial assets (446 ) (575 ) (51 ) Hedging valuation adjustments on subordinated debt (327 ) 153 (162 ) Value of employee services 414 309 279 Transactions in own shares (411 ) (175 ) (816 ) Accretion of discounts and amortisation of premiums and issue costs 1,701 465 339 Share of post-tax results of associates and joint ventures (6 ) 1 3 Transfers to income statement from reserves (650 ) (557 ) (956 ) Profit on disposal of tangible fixed assets (120 ) (93 ) (51 ) Other non-cash items – (17 ) (11 ) Total non-cash items 15,154 17,474 (3,630 ) Contributions to defined benefit schemes (587 ) (630 ) (433 ) Payments in respect of payment protection insurance provision (1,657 ) (2,200 ) (3,091 ) Payments in respect of other regulatory provisions (928 ) (761 ) (661 ) Other – 2 7 Total other items (3,172 ) (3,589 ) (4,178 ) Non-cash and other items 11,982 13,885 (7,808 ) 1 These OEICs (Open-ended investment companies) are mutual funds which are consolidated if the Group manages the funds and also has a sufficient beneficial interest. The population of OEICs to be consolidated varies at each reporting date as external investors acquire and divest holdings in the various funds. The consolidation of these funds is effected by the inclusion of the fund investments and a matching liability to the unitholders; and changes in funds consolidated represent a non-cash movement on the balance sheet. 2 When considering the movement on each line of the balance sheet, the impact of foreign exchange rate movements is removed in order to show the underlying cash impact. |
Disclosure of cash and cash equivalents [text block] | 2017 2016 £m 2015 £m Cash and balances at central banks 58,521 47,452 58,417 Less: mandatory reserve deposits 1 (957 ) (914 ) (941 ) 57,564 46,538 57,476 Loans and advances to banks 6,611 26,902 25,117 Less: amounts with a maturity of three months or more (3,193 ) (11,052 ) (10,640 ) 3,418 15,850 14,477 Total cash and cash equivalents 60,982 62,388 71,953 1 Mandatory reserve deposits are held with local central banks in accordance with statutory requirements; these deposits are not available to finance the Group’s day-to-day operations. |
Schedule of Acquisition of Group Undertakings and Businesses | 2017 2016 £m 2015 £m Net assets acquired: Cash and cash equivalents 123 – – Loans and receivables: Loans and advances to customers 7,811 – – Available-for-sale financial assets 16 – – Intangible assets 702 – – Property, plant and equipment 6 – – Other assets 414 – – Deposits from banks 1 (6,431 ) – – Other liabilities (927 ) – – Goodwill arising on acquisition 302 – – Cash consideration 2,016 – – Less: Cash and cash equivalents acquired (123 ) – – Net cash outflow arising from acquisition of MBNA 1,893 – – Acquisition of and additional investment in joint ventures 30 20 5 Net cash outflow from acquisitions in the year 1,923 20 5 1 Upon acquisition, the funding of MBNA was assumed by Lloyds Bank plc. |
Disclosure of non-current assets or disposal groups classified as held for sale [text block] | 2017 2016 £m 2015 £m Trading and other assets at fair value through profit or loss – – 3,420 Loans and advances to customers 342 – 21,333 Loans and advances to banks – – 5,539 Available-for-sale financial assets – – 654 Value of in-force business – – 60 Property, plant and equipment – – 150 342 – 31,156 Customer deposits – – (24,613 ) Debt securities in issue – – (9 ) Liabilities arising from insurance contracts and participating investment contracts – – (3,828 ) Liabilities arising from non-participating investment contracts – – (549 ) Non-controlling interests (242 ) – (825 ) Other net assets (liabilities) 29 5 (314 ) (213 ) 5 (30,138 ) Net assets 129 5 1,018 Non-cash consideration received – – – (Loss) profit on sale – – (46 ) Cash consideration received on losing control of group undertakings and businesses 129 5 972 Cash and cash equivalents disposed – – (5,043 ) Net cash inflow (outflow) 129 5 (4,071 ) |
PARENT COMPANY DISCLOSURES (Tab
PARENT COMPANY DISCLOSURES (Tables) - Parent [member] | 12 Months Ended |
Dec. 31, 2017 | |
PARENT COMPANY DISCLOSURES (Tables) [Line Items] | |
Disclosure of interests in subsidiaries [text block] | The principal subsidiaries, all of which have prepared accounts to 31 December and whose results are Percentage of equity Country of share capital registration/ and voting Incorporation rights held Nature of business Lloyds Bank plc England 100% Banking and financial services Scottish Widows Limited Scotland 100% 1 Life assurance HBOS plc Scotland 100% 1 Holding company Bank of Scotland plc Scotland 100% 1 Banking and financial services 1 Indirect interest. |
Condensed Consolidated Income Statement [Member] | |
PARENT COMPANY DISCLOSURES (Tables) [Line Items] | |
Disclosure of separate financial statements [text block] | 2017 2016 2015 £ million £ million £ million Net interest (expense) income (121 ) 66 276 Other income 2,792 3,618 983 Total income 2,671 3,684 1,259 Operating expenses (255 ) (221 ) (290 ) Profit on ordinary activities before tax 2,416 3,463 969 Tax expense (17 ) (328 ) (72 ) Profit for the year 2,399 3,135 897 Profit attributable to ordinary shareholders 1,984 2,723 503 Profit attributable to other equity holders 1 415 412 394 Profit for the year 2,399 3,135 897 1 The profit after tax attributable to other equity holders of £415 million (2016: £412 million; 2015: £394 million) is offset in reserves by a tax credit attributable to ordinary shareholders of £79 million (2016: £82 million; 2015: £80 million). |
Balance sheet [Member] | |
PARENT COMPANY DISCLOSURES (Tables) [Line Items] | |
Disclosure of separate financial statements [text block] | 2017 2016 £ million £ million Assets Non-current assets: Investment in subsidiaries 44,863 44,188 Loans to subsidiaries 14,379 6,912 Deferred tax assets 22 38 59,264 51,138 Current assets: Derivative financial instruments 265 461 Other assets 961 959 Amounts due from subsidiaries 47 67 Cash and cash equivalents 272 42 Current tax recoverable 724 465 2,269 1,994 Total assets 61,533 53,132 Equity and liabilities Capital and reserves: Share capital 7,197 7,146 Share premium account 17,634 17,622 Merger reserve 7,423 7,423 Capital redemption reserve 4,115 4,115 Retained profits 1,500 1,584 Shareholders’ equity 37,869 37,890 Other equity instruments 5,355 5,355 Total equity 43,224 43,245 Non-current liabilities: Debt securities in issue 10,886 2,455 Subordinated liabilities 3,993 4,329 14,879 6,784 Current liabilities: Derivative financial instruments 327 – Other liabilities 3,103 3,103 3,430 3,103 Total liabilities 18,309 9,887 Total equity and liabilities 61,533 53,132 |
Statement of changes in equity [Member] | |
PARENT COMPANY DISCLOSURES (Tables) [Line Items] | |
Disclosure of separate financial statements [text block] | Capital Total Share capital Merger redemption Retained shareholders’ Other equity Total and premium reserve reserve profits 1 equity instruments equity £ million £ million £ million £ million £ million £ million £ million Balance at 1 January 2015 24,427 7,764 4,115 1,720 38,026 5,355 43,381 Total comprehensive income 1 – – – 897 897 – 897 Dividends paid – – – (1,070 ) (1,070 ) – (1,070 ) Distributions on other equity instruments, net of tax – – – (314 ) (314 ) – (314 ) Redemption of preference shares 131 (131 ) – – – – – Movement in treasury shares – – – (753 ) (753 ) – (753 ) Value of employee services: Share option schemes – – – 133 133 – 133 Other employee award schemes – – – 172 172 – 172 Balance at 31 December 2015 24,558 7,633 4,115 785 37,091 5,355 42,446 Total comprehensive income 1 – – – 3,135 3,135 – 3,135 Dividends paid – – – (2,014 ) (2,014 ) – (2,014 ) Distributions on other equity instruments, net of tax – – – (330 ) (330 ) – (330 ) Redemption of preference shares 210 (210 ) – – – – – Movement in treasury shares – – – (301 ) (301 ) – (301 ) Value of employee services: Share option schemes – – – 141 141 – 141 Other employee award schemes – – – 168 168 – 168 Balance at 31 December 2016 24,768 7,423 4,115 1,584 37,890 5,355 43,245 Total comprehensive income 1 – – – 2,399 2,399 – 2,399 Dividends paid – – – (2,284 ) (2,284 ) – (2,284 ) Distributions on other equity instruments, net of tax – – – (336 ) (336 ) – (336 ) Issue of ordinary shares 63 – – – 63 – 63 Movement in treasury shares – – – (277 ) (277 ) – (277 ) Value of employee services: Share option schemes – – – 82 82 – 82 Other employee award schemes – – – 332 332 – 332 Balance at 31 December 2017 24,831 7,423 4,115 1,500 37,869 5,355 43,224 1 Total comprehensive income comprises only the profit (loss) for the year. |
Cash flow statement [Member] | |
PARENT COMPANY DISCLOSURES (Tables) [Line Items] | |
Disclosure of separate financial statements [text block] | 2017 2016 2015 £ million £ million £ million Profit before tax 2,416 3,463 969 Fair value and exchange adjustments and other non-cash items 495 1,986 (1,357 ) Change in other assets 18 (50 ) (566 ) Change in other liabilities and other items 8,431 (8,392 ) 458 Dividends received (2,650 ) (3,759 ) (1,080 ) Distributions on other equity instruments received (292 ) (119 ) – Tax (paid) received (197 ) (679 ) (142 ) Net cash provided by (used in) operating activities 8,221 (7,550 ) (1,718 ) Cash flows from investing activities Return of capital contribution 77 441 600 Dividends received 2,650 3,759 1,080 Distributions on other equity instruments received 292 119 – Capital injection to Lloyds Bank plc – (3,522 ) – Acquisition of subsidiaries (320 ) – – Amounts advanced to subsidiaries (8,476 ) (4,978 ) (1,157 ) Redemption of loans to subsidiaries 475 13,166 570 Interest received on loans to subsidiaries 244 496 763 Net cash (used in) provided by investing activities (5,058 ) 9,481 1,856 Cash flows from financing activities Dividends paid to ordinary shareholders (2,284 ) (2,014 ) (1,070 ) Distributions on other equity instruments (415 ) (412 ) (394 ) Issue of subordinated liabilities – 1,061 1,436 Interest paid on subordinated liabilities (248 ) (229 ) (129 ) Repayment of subordinated liabilities – (319 ) (152 ) Proceeds from issue of ordinary shares 14 – – Net cash provided by financing activities (2,933 ) (1,913 ) (309 ) Change in cash and cash equivalents 230 18 (171 ) Cash and cash equivalents at beginning of year 42 24 195 Cash and cash equivalents at end of year 272 42 24 |
CONDENSED CONSOLIDATING FINA113
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Consolidated Income Statement [Member] | |
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Tables) [Line Items] | |
Disclosure of separate financial statements [text block] | For the year ended 31 December 2017 Company Lloyds Bank Subsidiaries Consolidation Group Net interest (expense) income (121 ) 5,829 5,360 (156 ) 10,912 Other income 2,792 7,642 22,553 (9,662 ) 23,325 Total income 2,671 13,471 27,913 (9,818 ) 34,237 Insurance claims – – (15,578 ) – (15,578 ) Total income, net of insurance claims 2,671 13,471 12,335 (9,818 ) 18,659 Operating expenses (255 ) (7,201 ) (6,939 ) 2,049 (12,346 ) Trading surplus 2,416 6,270 5,396 (7,769 ) 6,313 Impairment – (462 ) (281 ) 55 (688 ) Profit before tax 2,416 5,808 5,115 (7,714 ) 5,625 Taxation (17 ) (529 ) (1,153 ) (29 ) (1,728 ) Profit for the year 2,399 5,279 3,962 (7,743 ) 3,897 For the year ended 31 December 2016 Company Lloyds Bank Subsidiaries Consolidation Group Net interest income 66 4,883 4,661 (336 ) 9,274 Other income 3,618 5,489 30,349 (9,119 ) 30,337 Total income 3,684 10,372 35,010 (9,455 ) 39,611 Insurance claims – – (22,344 ) – (22,344 ) Total income, net of insurance claims 3,684 10,372 12,666 (9,455 ) 17,267 Operating expenses (221 ) (7,722 ) (6,380 ) 1,696 (12,627 ) Trading surplus 3,463 2,650 6,286 (7,759 ) 4,640 Impairment – (620 ) (239 ) 107 (752 ) Profit before tax 3,463 2,030 6,047 (7,652 ) 3,888 Taxation (328 ) (77 ) (1,815 ) 496 (1,724 ) Profit for the year 3,135 1,953 4,232 (7,156 ) 2,164 For the year ended 31 December 2015 Company Lloyds Bank Subsidiaries Consolidation Group Net interest income 276 4,170 7,129 (257 ) 11,318 Other income 983 16,057 10,035 (15,243 ) 11,832 Total income 1,259 20,227 17,164 (15,500 ) 23,150 Insurance claims – – (5,729 ) – (5,729 ) Total income, net of insurance claims 1,259 20,227 11,435 (15,500 ) 17,421 Operating expenses (290 ) (8,994 ) (6,948 ) 845 (15,387 ) Trading surplus 969 11,233 4,487 (14,655 ) 2,034 Impairment – (265 ) (222 ) 97 (390 ) Profit before tax 969 10,968 4,265 (14,558 ) 1,644 Taxation (72 ) (57 ) (803 ) 244 (688 ) Profit for the year 897 10,911 3,462 (14,314 ) 956 |
Condolidated statement of comprehensive income [Member] | |
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Tables) [Line Items] | |
Disclosure of separate financial statements [text block] | For the year ended 31 December 2017 Company Lloyds Bank Subsidiaries Consolidation Group Profit (loss) for the year 2,399 5,279 3,962 (7,743 ) 3,897 Other comprehensive income Items that will not subsequently be reclassified to profit or loss: Post–retirement defined benefit scheme remeasurements: Remeasurements before taxation – 442 186 – 628 Taxation – (110 ) (36 ) – (146 ) – 332 150 – 482 Gains and losses attributable to own credit risk: Gains (losses) before taxation – (55 ) – – (55 ) Taxation – 15 – – 15 – (40 ) – – (40 ) Items that may subsequently be reclassified to profit or loss: Movements in revaluation reserve in respect of available-for-sale financial assets: Change in fair value – 231 38 34 303 Income statement transfers in respect of disposals – (333 ) (131 ) 18 (446 ) Income statement transfers in respect of impairment – – 9 (3 ) 6 Taxation – 46 17 – 63 – (56 ) (67 ) 49 (74 ) Movements in cash flow hedging reserve: Effective portion of changes in fair value – 15 (136 ) (242 ) (363 ) Net income statement transfers – (436 ) 46 (261 ) (651 ) Taxation – 130 23 130 283 – (291 ) (67 ) (373 ) (731 ) Currency translation differences (tax: nil) – (5 ) (27 ) – (32 ) Other comprehensive income for the year, net of tax – (60 ) (11 ) (324 ) (395 ) Total comprehensive income for the year 2,399 5,219 3,951 (8,067 ) 3,502 Total comprehensive income attributable to ordinary shareholders 1,984 4,946 3,740 (7,673 ) 2,997 Total comprehensive income attributable to other equity holders 415 273 121 (394 ) 415 Total comprehensive income attributable to equity holders 2,399 5,219 3,861 (8,067 ) 3,412 Total comprehensive income attributable to non-controlling interests – – 90 – 90 Total comprehensive income for the year 2,399 5,219 3,951 (8,067 ) 3,502 For the year ended 31 December 2016 Company Lloyds Bank Subsidiaries Consolidation Group Profit (loss) for the year 3,135 1,953 4,232 (7,156 ) 2,164 Other comprehensive income Items that will not subsequently be reclassified to profit or loss: Post-retirement defined benefit scheme remeasurements: Remeasurements before taxation – (682 ) (666 ) – (1,348 ) Taxation – 184 136 – 320 – (498 ) (530 ) – (1,028 ) Items that may subsequently be reclassified to profit or loss: Movements in revaluation reserve in respect of available-for-sale financial assets: Adjustment on transfer from held-to-maturity portfolio – 1,544 – – 1,544 Change in fair value – 268 84 4 356 Income statement transfers in respect of disposals – (507 ) (68 ) – (575 ) Income statement transfers in respect of impairment – 172 1 – 173 Taxation – (269 ) (32 ) – (301 ) – 1,208 (15 ) 4 1,197 Movements in cash flow hedging reserve: Effective portion of changes in fair value – 1,290 125 1,017 2,432 Net income statement transfers – (241 ) (233 ) (83 ) (557 ) Taxation – (258 ) 29 (237 ) (466 ) 791 (79 ) 697 1,409 Currency translation differences (tax: nil) – 19 44 (67 ) (4 ) Other comprehensive income for the year, net of tax – 1,520 (580 ) 634 1,574 Total comprehensive income for the year 3,135 3,473 3,652 (6,522 ) 3,738 Total comprehensive income attributable to ordinary shareholders 2,723 3,354 3,450 (6,302 ) 3,225 Total comprehensive income attributable to other equity holders 412 119 101 (220 ) 412 Total comprehensive income attributable to equity holders 3,135 3,473 3,551 (6,522 ) 3,637 Total comprehensive income attributable to non-controlling interests – – 101 – 101 Total comprehensive income for the year 3,135 3,473 3,652 (6,522 ) 3,738 For the year ended 31 December 2015 Company Lloyds Bank Subsidiaries Consolidation Group Profit (loss) for the year 897 10,911 3,462 (14,314 ) 956 Other comprehensive income Items that will not subsequently be reclassified to profit or loss: Post-retirement defined benefit scheme remeasurements: Remeasurements before taxation – 31 (305 ) – (274 ) Taxation – (1 ) 60 – 59 – 30 (245 ) – (215 ) Items that may subsequently be reclassified to profit or loss: Movements in revaluation reserve in respect of available-for-sale financial assets: Change in fair value – (300 ) (27 ) 9 (318 ) Income statement transfers in respect of disposals – (14 ) (37 ) – (51 ) Income statement transfers in respect of impairment – 1 38 (35 ) 4 Taxation – (17 ) 2 9 (6 ) – (330 ) (24 ) (17 ) (371 ) Movements in cash flow hedging reserve: Effective portion of changes in fair value – 294 183 60 537 Net income statement transfers – (421 ) (557 ) 22 (956 ) Taxation – (76 ) 59 24 7 – (203 ) (315 ) 106 (412 ) Currency translation differences (tax: nil) – (13 ) 52 (81 ) (42 ) Other comprehensive income for the year, net of tax – (516 ) (532 ) 8 (1,040 ) Total comprehensive income for the year 897 10,395 2,930 (14,306 ) (84 ) Total comprehensive income attributable to ordinary shareholders 503 10,395 2,834 (14,306 ) (574 ) Total comprehensive income attributable to other equity holders 394 – – – 394 Total comprehensive income attributable to equity holders 897 10,395 2,834 (14,306 ) (180 ) Total comprehensive income attributable to non-controlling interests – – 96 – 96 Total comprehensive income for the year 897 10,395 2,930 (14,306 ) (84 ) |
Balance sheet [Member] | |
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Tables) [Line Items] | |
Disclosure of separate financial statements [text block] | At 31 December 2017 Company Lloyds Bank Subsidiaries Consolidation Group Assets Cash and balances at central banks – 55,835 2,686 – 58,521 Items in course of collection from banks – 490 265 – 755 Trading and other financial assets at fair value through profit or loss – 43,977 126,864 (7,963 ) 162,878 Derivative financial instruments 265 26,764 14,785 (15,980 ) 25,834 Loans and receivables: Loans and advances to banks – 3,611 2,975 25 6,611 Loans and advances to customers – 170,804 294,463 7,231 472,498 Debt securities – 3,182 420 41 3,643 Due from fellow Lloyds Banking Group undertakings 14,698 180,772 119,914 (315,384 ) – Available-for-sale financial assets – 42,566 1,582 (2,050 ) 42,098 Goodwill – – 2,332 (22 ) 2,310 Value of in-force business – – 4,590 249 4,839 Other intangible assets – 1,415 345 1,075 2,835 Property, plant and equipment – 3,252 9,526 (51 ) 12,727 Current tax recoverable 724 – 26 (734 ) 16 Deferred tax assets 22 1,995 2,285 (2,018 ) 2,284 Retirement benefit assets – 673 69 (19 ) 723 Investment in subsidiary undertakings, including assets held for sale 44,863 40,500 – (85,363 ) – Other assets 961 1,117 12,107 (648 ) 13,537 Total assets 61,533 576,953 595,234 (421,611 ) 812,109 Equity and liabilities Liabilities Deposits from banks – 7,538 22,268 (2 ) 29,804 Customer deposits – 234,397 183,830 (103 ) 418,124 Due to fellow Lloyds Banking Group undertakings 2,168 112,769 179,952 (294,889 ) – Items in course of transmission to banks – 304 280 – 584 Trading and other financial liabilities at fair value through profit or loss – 51,045 53 (221 ) 50,877 Derivative financial instruments 327 28,267 13,510 (15,980 ) 26,124 Notes in circulation – – 1,313 – 1,313 Debt securities in issue 10,886 66,249 15,847 (20,532 ) 72,450 Liabilities arising from insurance contracts and participating investment contracts – – 103,434 (21 ) 103,413 Liabilities arising from non-participating investment contracts – – 15,447 – 15,447 Other liabilities 935 3,425 18,480 (2,110 ) 20,730 Retirement benefit obligations – 143 134 81 358 Current tax liabilities – 105 1,242 (1,073 ) 274 Deferred tax liabilities – – 779 (779 ) – Other provisions – 2,593 2,865 88 5,546 Subordinated liabilities 3,993 9,341 8,288 (3,700 ) 17,922 Total liabilities 18,309 516,176 567,722 (339,241 ) 762,966 Equity Shareholders’ equity 37,869 57,560 25,470 (77,348 ) 43,551 Other equity instruments 5,355 3,217 1,805 (5,022 ) 5,355 Total equity excluding non-controlling interests 43,224 60,777 27,275 (82,370 ) 48,906 Non-controlling interests – – 237 – 237 Total equity 43,224 60,777 27,512 (82,370 ) 49,143 Total equity and liabilities 61,533 576,953 595,234 (421,611 ) 812,109 At 31 December 2016 Company Lloyds Bank Subsidiaries Consolidation Group Assets Cash and balances at central banks – 44,595 2,857 – 47,452 Items in course of collection from banks – 512 194 – 706 Trading and other financial assets at fair value through profit or loss – 48,309 112,154 (9,289 ) 151,174 Derivative financial instruments 461 36,714 18,737 (19,774 ) 36,138 Loans and receivables: Loans and advances to banks – 4,379 22,498 25 26,902 Loans and advances to customers – 161,161 290,036 6,761 457,958 Debt securities – 2,818 528 51 3,397 Due from fellow Lloyds Banking Group undertakings 7,021 152,260 104,314 (263,595 ) – Available-for-sale financial assets – 55,122 3,274 (1,872 ) 56,524 Goodwill – – 2,343 (327 ) 2,016 Value of in-force business – – 4,761 281 5,042 Other intangible assets – 893 314 474 1,681 Property, plant and equipment – 3,644 9,263 65 12,972 Current tax recoverable 465 420 26 (883 ) 28 Deferred tax assets 38 2,286 1,503 (1,121 ) 2,706 Retirement benefit assets – 254 86 2 342 Investment in subsidiary undertakings, including assets held for sale 44,188 38,757 – (82,945 ) – Other assets 959 1,168 11,613 (985 ) 12,755 Total assets 53,132 553,292 584,501 (373,132 ) 817,793 Equity and liabilities Liabilities Deposits from banks – 9,450 6,936 (2 ) 16,384 Customer deposits – 213,135 202,433 (108 ) 415,460 Due to fellow Lloyds Banking Group undertakings 2,690 86,803 149,152 (238,645 ) – Items in course of transmission to banks – 292 256 – 548 Trading and other financial liabilities at fair value through profit or loss – 55,776 945 (2,217 ) 54,504 Derivative financial instruments – 38,591 16,107 (19,774 ) 34,924 Notes in circulation – – 1,402 – 1,402 Debt securities in issue 2,455 74,366 22,336 (22,843 ) 76,314 Liabilities arising from insurance contracts and participating investment contracts – – 94,409 (19 ) 94,390 Liabilities arising from non-participating investment contracts – – 20,112 – 20,112 Other liabilities 413 3,295 27,668 (2,183 ) 29,193 Retirement benefit obligations – 399 420 3 822 Current tax liabilities – 3 1,390 (1,167 ) 226 Deferred tax liabilities – – – – – Other provisions – 2,833 2,355 30 5,218 Subordinated liabilities 4,329 10,575 10,648 (5,721 ) 19,831 Total liabilities 9,887 495,518 556,569 (292,646 ) 769,328 Equity Shareholders’ equity 37,890 54,557 25,687 (75,464 ) 42,670 Other equity instruments 5,355 3,217 305 (3,522 ) 5,355 Total equity excluding non-controlling interests 43,245 57,774 25,992 (78,986 ) 48,025 Non-controlling interests – – 1,940 (1,500 ) 440 Total equity 43,245 57,774 27,932 (80,486 ) 48,465 Total equity and liabilities 53,132 553,292 584,501 (373,132 ) 817,793 |
Cash flow statement [Member] | |
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Tables) [Line Items] | |
Disclosure of separate financial statements [text block] | For the year ended 31 December 2017 Company Lloyds Bank Subsidiaries Consolidation Group Net cash (used in) provided by operating activities 8,221 (3,430 ) (5,959 ) (2,027 ) (3,195 ) Cash flows from investing activities Dividends received from subsidiary undertakings 2,650 4,378 – (7,028 ) – Distributions on other equity instruments received 292 101 – (393 ) – Return of capital contributions 77 – – (77 ) – Available-for-sale financial assets: Purchases – (7,550 ) (482 ) 170 (7,862 ) Proceeds from sale and maturity – 16,480 2,195 – 18,675 Purchase of fixed assets – (1,155 ) (2,500 ) – (3,655 ) Proceeds from sale of fixed assets – 85 1,359 – 1,444 Additional capital lending to subsidiaries (8,476 ) (34 ) – 8,510 – Capital repayments by subsidiaries 475 – – (475 ) – Interest received on lending to Lloyds Bank 244 – – (244 ) – Acquisition of businesses, net of cash acquired (320 ) (2,026 ) (622 ) 1,045 (1,923 ) Disposal of businesses, net of cash disposed – 592 129 (592 ) 129 Net cash flows from investing activities (5,058 ) 10,871 79 916 6,808 Cash flows from financing activities Dividends paid to equity shareholders (2,284 ) (2,650 ) (4,378 ) 7,028 (2,284 ) Distributions on other equity instruments (415 ) (273 ) (120 ) 393 (415 ) Dividends paid to non-controlling interests – – (51 ) – (51 ) Interest paid on subordinated liabilities (248 ) (668 ) (700 ) 341 (1,275 ) Proceeds from issue of subsordinated liabilities – – – – – Proceeds from issue of ordinary shares 14 – – – 14 Repayment of subordinated liabilities – (675 ) (1,132 ) 799 (1,008 ) Capital contributions received – – – – – Changes in non-controlling interests – – – – – Return of capital contribution – (77 ) – 77 – Capital borrowing from the Company – 8,476 – (8,476 ) – Capital repayments to parent company – (475 ) – 475 – Interest paid on borrowing from the Company – (244 ) – 244 – Net cash used in financing activities (2,933 ) 3,414 (6,381 ) 881 (5,019 ) Effects of exchange rate changes on cash and cash equivalents – (1 ) 1 – – Change in cash and cash equivalents 230 10,854 (12,260 ) (230 ) (1,406 ) Cash and cash equivalents at beginning of year 42 45,266 17,122 (42 ) 62,388 Cash and cash equivalents at end of year 272 56,120 4,862 (272 ) 60,982 For the year ended 31 December 2016 Company Lloyds Bank Subsidiaries Consolidation Group Net cash provided by (used in) operating activities (7,550 ) 1,073 11,131 (2,580 ) 2,074 Cash flows from investing activities Dividends received from subsidiary undertakings 3,759 3,984 – (7,743 ) – Distributions on other equity instruments received 119 – – (119 ) – Return of capital contributions 441 – – (441 ) – Available-for-sale financial assets and held-to-maturity investments: Purchases – (4,664 ) (322 ) 56 (4,930 ) Proceeds from sale and maturity – 6,429 2,350 (2,444 ) 6,335 Purchase of fixed assets – (1,122 ) (2,638 ) – (3,760 ) Proceeds from sale of fixed assets – 19 1,665 – 1,684 Purchase of other equity instruments issued by subsidiaries – – – – – Capital lending to Lloyds Bank – – – – – Capital repayments by Lloyds Bank – – – – – Additional capital lending to subsidiaries (4,978 ) – – 4,978 – Capital repayments by subsidiaries 13,166 – – (13,166 ) – Interest received on lending to Lloyds Bank 496 – – (496 ) – Additional capital injections to subsidiaries (3,522 ) (309 ) – 3,831 – Acquisition of businesses, net of cash acquired – – (20 ) – (20 ) Disposal of businesses, net of cash disposed – 231 5 (231 ) 5 Net cash flows from investing activities 9,481 4,568 1,040 (15,775 ) (686 ) Cash flows from financing activities Dividends paid to ordinary shareholders (2,014 ) (3,040 ) (4,602 ) 7,642 (2,014 ) Distributions on other equity instruments (412 ) (119 ) (101 ) 220 (412 ) Dividends paid to non-controlling interests – – (29 ) – (29 ) Interest paid on subordinated liabilities (229 ) (1,516 ) (893 ) 951 (1,687 ) Proceeds from issue of subordinated liabilities 1,061 2,753 – (2,753 ) 1,061 Repayment of subordinated liabilities (319 ) (13,200 ) (4,952 ) 10,586 (7,885 ) Proceeds from issue of other equity instruments – 3,217 305 (3,522 ) – Capital contribution received – – 309 (309 ) – Return of capital contributions – (441 ) – 441 – Capital borrowing from the Company – – – – – Capital repayments to the Company – (3,387 ) (1,198 ) 4,585 – Interest paid on borrowing from the Company – (496 ) – 496 – Change in stake of non-controlling interests – – (8 ) – (8 ) Net cash used in financing activities (1,913 ) (16,229 ) (11,169 ) 18,337 (10,974 ) Effects of exchange rate changes on cash and cash equivalents – 2 19 – 21 Change in cash and cash equivalents 18 (10,586 ) 1,021 (18 ) (9,565 ) Cash and cash equivalents at beginning of year 24 55,852 16,101 (24 ) 71,953 Cash and cash equivalents at end of year 42 45,266 17,122 (42 ) 62,388 For the year ended 31 December 2015 Company £m Lloyds Bank £m Subsidiaries £m Consolidation adjustments £m Group £m Net cash provided by (used in) operating activities (1,718 ) 8,302 7,472 2,316 16,372 Cash flows from investing activities Dividends received from subsidiary undertakings 1,080 12,820 – (13,900 ) – Return of capital contributions 600 – – (600 ) – Available-for-sale financial assets and held-to-maturity investments: Purchases – (7,903 ) (13,593 ) 2,142 (19,354 ) Proceeds from sale and maturity – 7,055 14,945 – 22,000 Purchase of fixed assets – (1,279 ) (2,138 ) – (3,417 ) Proceeds from sale of fixed assets – 61 1,476 – 1,537 Additional capital injections to subsidiaries – (64 ) – 64 – Purchase of other equity instruments issued by subsidiaries – (1,500 ) – 1,500 – Capital lending to Lloyds Bank (1,157 ) – – 1,157 – Capital repayments by Lloyds Bank 570 – – (570 ) – Interest received on lending to Lloyds Bank 763 – – (763 ) – Acquisition of businesses, net of cash acquired – – (5 ) – (5 ) Disposal of businesses, net of cash disposed – 850 122 (5,043 ) (4,071 ) Net cash flows from investing activities 1,856 10,040 807 (16,013 ) (3,310 ) Cash flows from financing activities Dividends paid to ordinary shareholders (1,070 ) (1,080 ) (12,820 ) 13,900 (1,070 ) Distributions on other equity instruments (394 ) – – – (394 ) Dividends paid to non-controlling interests – – (52 ) – (52 ) Interest paid on subordinated liabilities (129 ) (1,755 ) (956 ) 1,000 (1,840 ) Proceeds from issue of subordinated liabilities 1,436 – – (1,098 ) 338 Repayment of subordinated liabilities (152 ) (1,266 ) (2,151 ) 370 (3,199 ) Capital contributions received – – 165 (165 ) – Return of capital contributions – (600 ) – 600 – Capital borrowing from the Company – 1,157 – (1,157 ) – Capital repayments to the Company – (1,155 ) – 1,155 – Interest paid on borrowing from the Company – (763 ) – 763 – Changes in non-controlling interests – – 1,459 (1,500 ) (41 ) Net cash used in financing activities (309 ) (5,462 ) (14,355 ) 13,868 (6,258 ) Effects of exchange rate changes on cash and cash equivalents – – 2 – 2 Change in cash and cash equivalents (171 ) 12,880 (6,074 ) 171 6,806 Cash and cash equivalents at beginning of year 195 42,972 22,175 (195 ) 65,147 Cash and cash equivalents at end of year 24 55,852 16,101 (24 ) 71,953 |
BASIS OF PREPARATION (Details)
BASIS OF PREPARATION (Details) £ in Millions | 12 Months Ended |
Dec. 31, 2017GBP (£) | |
Disclosure of basis of preparation of financial statements [text block] [Abstract] | |
Right-of-use assets, increase (decrease) in revaluation surplus | £ 40 |
ACCOUNTING POLICIES (Details)
ACCOUNTING POLICIES (Details) | 12 Months Ended |
Dec. 31, 2017 | |
ACCOUNTING POLICIES (Details) [Line Items] | |
Proportion of voting rights held by non-controlling interests | 100.00% |
Property, plant and equipment under operating leases [member] | |
ACCOUNTING POLICIES (Details) [Line Items] | |
Useful lives or depreciation rates, property, plant and equipment | the shorter of 50 years and the remaining period of the lease for freehold/longand short leasehold premises |
Leasehold improvements [member] | |
ACCOUNTING POLICIES (Details) [Line Items] | |
Useful lives or depreciation rates, property, plant and equipment | the shorter of 10 years and, if lease renewal is not likely, the remaining period of the lease for leasehold improvements |
Fixtures and fittings [member] | |
ACCOUNTING POLICIES (Details) [Line Items] | |
Useful lives or depreciation rates, property, plant and equipment | 10 to 20 years for fixtures and furnishings |
Motor vehicles [member] | |
ACCOUNTING POLICIES (Details) [Line Items] | |
Useful lives or depreciation rates, property, plant and equipment | 2 to 8 years for other equipment and motor vehicles. |
Bottom of range [member] | |
ACCOUNTING POLICIES (Details) [Line Items] | |
Proportion of voting rights held by non-controlling interests | 20.00% |
Bottom of range [member] | Brand names [member] | |
ACCOUNTING POLICIES (Details) [Line Items] | |
Useful lives or depreciation rates, property, plant and equipment | 10 |
Top of range [member] | |
ACCOUNTING POLICIES (Details) [Line Items] | |
Proportion of voting rights held by non-controlling interests | 50.00% |
Top of range [member] | Computer software [member] | |
ACCOUNTING POLICIES (Details) [Line Items] | |
Useful lives or depreciation rates, property, plant and equipment | 7 |
Top of range [member] | Brand names [member] | |
ACCOUNTING POLICIES (Details) [Line Items] | |
Useful lives or depreciation rates, property, plant and equipment | 15 years |
SEGMENTAL ANALYSIS (Details)
SEGMENTAL ANALYSIS (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
SEGMENTAL ANALYSIS (Details) [Line Items] | |||
Description of types of products and services from which each reportable segment derives its revenues | the Group’s activities are now organised into three financial reporting segments: Retail; Commercial Banking; and Insuranceand Wealth. | ||
Profit (loss) on disposal of investments and changes in value of investments | £ 32 | £ 58 | £ 66 |
Amortisation, intangible assets other than goodwill | 392 | 582 | 537 |
Expense of restructuring activities | 24 | 241 | 104 |
Expense due to unwinding of discount on provisions | (23) | (32) | (56) |
Profit (loss) from continuing operations | 32 | 58 | 66 |
Bank and similar charges | (44) | (40) | (55) |
MBNA Limited [Member] | |||
SEGMENTAL ANALYSIS (Details) [Line Items] | |||
Gains (losses) on available-for-sale financial assets | 30 | ||
Loss on Volatile Items | 263 | ||
Transfers of cumulative gain (loss) within equity when changes in liability's credit risk are presented in other comprehensive income | (14) | ||
Amortisation, intangible assets other than goodwill | 91 | ||
Expense of restructuring activities | 621 | ||
Expense due to unwinding of discount on provisions | £ (270) | ||
Write-Off of the ECN [Member] | |||
SEGMENTAL ANALYSIS (Details) [Line Items] | |||
Gains (losses) on available-for-sale financial assets | 217 | ||
Loss on Volatile Items | 99 | ||
Transfers of cumulative gain (loss) within equity when changes in liability's credit risk are presented in other comprehensive income | (123) | ||
Amortisation, intangible assets other than goodwill | 340 | ||
Expense of restructuring activities | 622 | ||
Gains (losses) on change in fair value of derivatives | (790) | ||
Market Movements on the ECN [Member] | |||
SEGMENTAL ANALYSIS (Details) [Line Items] | |||
Gains (losses) on available-for-sale financial assets | 54 | ||
Loss on Volatile Items | (107) | ||
Transfers of cumulative gain (loss) within equity when changes in liability's credit risk are presented in other comprehensive income | (28) | ||
Amortisation, intangible assets other than goodwill | 342 | ||
Expense of restructuring activities | 170 | ||
Expense due to unwinding of discount on provisions | £ (231) | (192) | |
Other gains (losses) | (101) | ||
Bank and similar charges | £ 745 |
SEGMENTAL ANALYSIS (Details) -
SEGMENTAL ANALYSIS (Details) - Schedule of Operating Segments - GBP (£) £ in Millions | 12 Months Ended | ||||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||||
SEGMENTAL ANALYSIS (Details) - Schedule of Operating Segments [Line Items] | |||||||
Net interest income | £ 16,006 | £ 16,620 | £ 17,615 | ||||
Other income, net of insurance claims | 7,747 | 7,993 | 6,103 | ||||
Total underlying income, net of insurance claims | 18,659 | 17,267 | 17,421 | ||||
Net income | 18,659 | 17,267 | 17,421 | ||||
Operating costs | (12,346) | (12,627) | (15,387) | ||||
Impairment | (688) | (752) | (390) | ||||
Other segment items: | |||||||
Underlying profit (loss) | 5,625 | 3,888 | 1,644 | ||||
Segment underlying income, net of insurance claims | 18,659 | 17,267 | 17,421 | ||||
Segment external assets | 812,109 | 817,793 | |||||
Segment customer deposits | 418,124 | 415,460 | |||||
Segment external liabilities | 762,966 | 769,328 | |||||
Other segment items reflected in income statement above: | |||||||
Depreciation and amortisation | 2,370 | 2,380 | 2,112 | ||||
Increase in value of in-force business | (165) | 472 | (162) | ||||
Defined benefit scheme charges | 369 | 287 | 315 | ||||
Other segment items: | |||||||
Investments in joint ventures and associates at end of year | 65 | 59 | |||||
Other segment items reflected in income statement above: | |||||||
Decrease in value of in-force business | 55 | 28 | |||||
Underlying Basis [Member] | |||||||
SEGMENTAL ANALYSIS (Details) - Schedule of Operating Segments [Line Items] | |||||||
Net interest income | 12,320 | 11,435 | 11,482 | ||||
Other income, net of insurance claims | 6,205 | 6,065 | 6,155 | ||||
Total underlying income, net of insurance claims | 18,525 | 17,500 | 17,637 | ||||
Operating lease depreciation | (1,053) | [1] | (895) | [2] | (764) | [3] | |
Net income | 17,472 | 16,605 | 16,873 | ||||
Operating costs | (8,184) | (8,093) | (8,311) | ||||
Impairment | (795) | (645) | (568) | ||||
TSB | 118 | ||||||
Other segment items: | |||||||
Underlying profit (loss) | 8,493 | 7,867 | 8,112 | ||||
External income | 18,525 | 17,500 | 17,637 | ||||
Segment underlying income, net of insurance claims | 18,525 | 17,500 | 17,637 | ||||
Segment external assets | 812,109 | 817,793 | 806,688 | ||||
Segment customer deposits | 418,124 | 415,460 | 418,326 | ||||
Segment external liabilities | 762,966 | 769,328 | 759,708 | ||||
Other segment items reflected in income statement above: | |||||||
Depreciation and amortisation | 2,370 | 2,380 | 2,112 | ||||
Increase in value of in-force business | (165) | ||||||
Defined benefit scheme charges | 359 | 287 | 315 | ||||
Other segment items: | |||||||
Additions to fixed assets | 3,655 | 3,760 | 3,417 | ||||
Investments in joint ventures and associates at end of year | 65 | 59 | 47 | ||||
Other segment items reflected in income statement above: | |||||||
Decrease in value of in-force business | 472 | (162) | |||||
5200 to 5999 Retail Trade [Member] | Underlying Basis [Member] | |||||||
SEGMENTAL ANALYSIS (Details) - Schedule of Operating Segments [Line Items] | |||||||
Net interest income | 8,706 | 8,073 | 8,253 | ||||
Other income, net of insurance claims | 2,217 | 2,162 | 2,263 | ||||
Total underlying income, net of insurance claims | 10,923 | 10,235 | 10,516 | ||||
Operating lease depreciation | (946) | [1] | (775) | [2] | (720) | [3] | |
Net income | 9,977 | 9,460 | 9,796 | ||||
Operating costs | (4,857) | (4,748) | (4,958) | ||||
Impairment | (717) | (654) | (583) | ||||
Other segment items: | |||||||
Underlying profit (loss) | 4,403 | 4,058 | 4,255 | ||||
External income | 12,651 | 12,203 | 12,217 | ||||
Inter-segment income | (1,728) | (1,968) | (1,701) | ||||
Segment underlying income, net of insurance claims | 10,923 | 10,235 | 10,516 | ||||
Segment external assets | 349,116 | 338,939 | 340,263 | ||||
Segment customer deposits | 253,127 | 256,453 | 261,646 | ||||
Segment external liabilities | 258,423 | 264,915 | 270,666 | ||||
Other segment items reflected in income statement above: | |||||||
Depreciation and amortisation | 1,545 | 1,343 | 1,247 | ||||
Defined benefit scheme charges | 137 | 141 | 124 | ||||
Other segment items: | |||||||
Additions to fixed assets | 2,431 | 2,362 | 2,133 | ||||
Investments in joint ventures and associates at end of year | 9 | 6 | 5 | ||||
522110 Commercial Banking [Member] | Underlying Basis [Member] | |||||||
SEGMENTAL ANALYSIS (Details) - Schedule of Operating Segments [Line Items] | |||||||
Net interest income | 3,086 | 2,934 | [4] | 2,774 | [4] | ||
Other income, net of insurance claims | 1,761 | 1,756 | [4] | 1,842 | [4] | ||
Total underlying income, net of insurance claims | 4,847 | 4,690 | [4] | 4,616 | [4] | ||
Operating lease depreciation | (44) | [1] | (105) | [2],[4] | (30) | [3],[4] | |
Net income | 4,803 | 4,585 | [4] | 4,586 | [4] | ||
Operating costs | (2,199) | (2,189) | [4] | (2,225) | [4] | ||
Impairment | (115) | (17) | [4] | 22 | [4] | ||
TSB | [4] | ||||||
Other segment items: | |||||||
Underlying profit (loss) | 2,489 | 2,379 | [4] | 2,383 | [4] | ||
External income | 3,093 | 3,408 | [4] | 3,364 | [4] | ||
Inter-segment income | 1,754 | 1,282 | [4] | 1,252 | [4] | ||
Segment underlying income, net of insurance claims | 4,847 | 4,690 | [4] | 4,616 | [4] | ||
Segment external assets | 174,081 | 187,405 | [4] | 178,110 | [4] | ||
Segment customer deposits | 147,588 | 141,302 | [4] | 140,675 | [4] | ||
Segment external liabilities | 223,543 | 230,030 | [4] | 235,221 | [4] | ||
Other segment items reflected in income statement above: | |||||||
Depreciation and amortisation | [4] | 259 | 313 | 203 | |||
Increase in value of in-force business | [4] | ||||||
Defined benefit scheme charges | [4] | 48 | 49 | 32 | |||
Other segment items: | |||||||
Additions to fixed assets | 107 | 126 | [4] | 155 | [4] | ||
Investments in joint ventures and associates at end of year | [4] | ||||||
Other segment items reflected in income statement above: | |||||||
Decrease in value of in-force business | [4] | ||||||
Insurance and wealth [Member] | Underlying Basis [Member] | |||||||
SEGMENTAL ANALYSIS (Details) - Schedule of Operating Segments [Line Items] | |||||||
Net interest income | 133 | 80 | [4] | 59 | [4] | ||
Other income, net of insurance claims | 1,846 | 1,939 | [4] | 1,986 | [4] | ||
Total underlying income, net of insurance claims | 1,979 | 2,019 | [4] | 2,045 | [4] | ||
Operating lease depreciation | [1] | [2],[4] | [3],[4] | ||||
Net income | 1,979 | 2,019 | [4] | 2,045 | [4] | ||
Operating costs | (1,040) | (1,046) | [4] | (954) | [4] | ||
Impairment | [4] | (1) | |||||
TSB | [4] | ||||||
Other segment items: | |||||||
Underlying profit (loss) | 939 | 973 | [4] | 1,090 | [4] | ||
External income | 1,883 | 1,434 | [4] | 2,155 | [4] | ||
Inter-segment income | 96 | 585 | [4] | (110) | [4] | ||
Segment underlying income, net of insurance claims | 1,979 | 2,019 | [4] | 2,045 | [4] | ||
Segment external assets | 151,986 | 154,782 | [4] | 145,737 | [4] | ||
Segment customer deposits | 13,770 | 13,798 | [4] | 14,477 | [4] | ||
Segment external liabilities | 157,824 | 160,815 | [4] | 150,702 | [4] | ||
Other segment items reflected in income statement above: | |||||||
Depreciation and amortisation | [4] | 197 | 169 | 124 | |||
Increase in value of in-force business | [4] | (165) | |||||
Defined benefit scheme charges | [4] | 25 | 31 | 17 | |||
Other segment items: | |||||||
Additions to fixed assets | 274 | 481 | [4] | 343 | [4] | ||
Investments in joint ventures and associates at end of year | [4] | ||||||
Other segment items reflected in income statement above: | |||||||
Decrease in value of in-force business | [4] | 472 | (162) | ||||
Other [Member] | Underlying Basis [Member] | |||||||
SEGMENTAL ANALYSIS (Details) - Schedule of Operating Segments [Line Items] | |||||||
Net interest income | 395 | 348 | 396 | ||||
Other income, net of insurance claims | 381 | 208 | 64 | ||||
Total underlying income, net of insurance claims | 776 | 556 | 460 | ||||
Operating lease depreciation | (63) | [1] | (15) | [2] | (14) | [3] | |
Net income | 713 | 541 | 446 | ||||
Operating costs | (88) | (110) | (174) | ||||
Impairment | 37 | 26 | (6) | ||||
TSB | 118 | ||||||
Other segment items: | |||||||
Underlying profit (loss) | 662 | 457 | 384 | ||||
External income | 898 | 455 | (99) | ||||
Inter-segment income | (122) | 101 | 559 | ||||
Segment underlying income, net of insurance claims | 776 | 556 | 460 | ||||
Segment external assets | 136,926 | 136,667 | 142,578 | ||||
Segment customer deposits | 3,639 | 3,907 | 1,528 | ||||
Segment external liabilities | 123,176 | 113,568 | 103,119 | ||||
Other segment items reflected in income statement above: | |||||||
Depreciation and amortisation | 369 | 555 | 538 | ||||
Defined benefit scheme charges | 149 | 66 | 142 | ||||
Other segment items: | |||||||
Additions to fixed assets | 843 | 791 | 786 | ||||
Investments in joint ventures and associates at end of year | £ 56 | £ 53 | £ 42 | ||||
[1] | Net of profits on disposal of operating lease assets of 32 million. | ||||||
[2] | Net of profits on disposal of operating lease assets of 58 million. | ||||||
[3] | Net of profits on disposal of operating lease assets of 66 million. | ||||||
[4] | Restated - see page F-18. |
SEGMENTAL ANALYSIS (Details)118
SEGMENTAL ANALYSIS (Details) - Schedule of Reconciliation of Underlying Basis to Statutory Results - GBP (£) £ in Millions | 12 Months Ended | ||||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||||
SEGMENTAL ANALYSIS (Details) - Schedule of Reconciliation of Underlying Basis to Statutory Results [Line Items] | |||||||
Net interest income | £ 10,912 | £ 9,274 | £ 11,318 | ||||
Other income, net of insurance claims | 7,747 | 7,993 | 6,103 | ||||
Total income, net of insurance claims | 18,659 | 17,267 | 17,421 | ||||
Net income | 18,659 | 17,267 | 17,421 | ||||
Operating expenses | (12,346) | (12,627) | (15,387) | ||||
Impairment | (688) | (752) | (390) | ||||
Profit | 5,625 | 3,888 | 1,644 | ||||
Volatility And Other Items [Member] | |||||||
SEGMENTAL ANALYSIS (Details) - Schedule of Reconciliation of Underlying Basis to Statutory Results [Line Items] | |||||||
Net interest income | 228 | [1] | 263 | [2] | 318 | [3] | |
Other income, net of insurance claims | (186) | [1] | 121 | [2] | 209 | [3] | |
Total income, net of insurance claims | 42 | [1] | 384 | [2] | 527 | [3] | |
Operating lease depreciation | [4] | (1,053) | [1] | (895) | [2] | (764) | [3] |
Net income | (1,011) | [1] | (511) | [2] | (237) | [3] | |
Operating expenses | 1,821 | [1] | 1,948 | [2] | 2,065 | [3] | |
Impairment | (107) | [1] | 107 | [2] | (197) | [3] | |
TSB | [3] | ||||||
Profit | 703 | [1] | 1,544 | [2] | 1,631 | [3] | |
TSB [Member] | |||||||
SEGMENTAL ANALYSIS (Details) - Schedule of Reconciliation of Underlying Basis to Statutory Results [Line Items] | |||||||
Net interest income | [2] | [5] | (192) | [2] | |||
Other income, net of insurance claims | [2] | [5] | (31) | [2] | |||
Total income, net of insurance claims | [2] | [5] | (223) | [2] | |||
Operating lease depreciation | [4] | [2] | [5] | [2] | |||
Net income | [2] | [5] | (223) | [2] | |||
Operating expenses | [2] | [5] | 86 | [2] | |||
Impairment | [2] | [5] | 19 | [2] | |||
TSB | [2] | 118 | |||||
Profit | [2] | [5] | [2] | ||||
Insurance Gross Up [Member] | |||||||
SEGMENTAL ANALYSIS (Details) - Schedule of Reconciliation of Underlying Basis to Statutory Results [Line Items] | |||||||
Net interest income | [6] | 1,180 | 1,898 | 38 | |||
Other income, net of insurance claims | [6] | (1,356) | (2,110) | (126) | |||
Total income, net of insurance claims | [6] | (176) | (212) | (88) | |||
Operating lease depreciation | [4],[6] | ||||||
Net income | [6] | (176) | (212) | (88) | |||
Operating expenses | [6] | 176 | 212 | 88 | |||
Impairment | [6] | ||||||
TSB | [6] | ||||||
Profit | [6] | ||||||
PPI [Member] | |||||||
SEGMENTAL ANALYSIS (Details) - Schedule of Reconciliation of Underlying Basis to Statutory Results [Line Items] | |||||||
Operating lease depreciation | [4] | ||||||
Operating expenses | 1,300 | 1,350 | 4,000 | ||||
Profit | 1,300 | 1,350 | 4,000 | ||||
Other Conduct Provisions [Member] | |||||||
SEGMENTAL ANALYSIS (Details) - Schedule of Reconciliation of Underlying Basis to Statutory Results [Line Items] | |||||||
Other income, net of insurance claims | 61 | ||||||
Total income, net of insurance claims | 61 | ||||||
Operating lease depreciation | [4] | ||||||
Net income | 61 | ||||||
Operating expenses | 865 | 1,024 | 837 | ||||
Profit | 865 | 1,085 | 837 | ||||
Underlying Basis [Member] | |||||||
SEGMENTAL ANALYSIS (Details) - Schedule of Reconciliation of Underlying Basis to Statutory Results [Line Items] | |||||||
Net interest income | 12,320 | 11,435 | 11,482 | ||||
Other income, net of insurance claims | 6,205 | 6,065 | 6,155 | ||||
Total income, net of insurance claims | 18,525 | 17,500 | 17,637 | ||||
Operating lease depreciation | [4] | (1,053) | (895) | (764) | |||
Net income | 17,472 | 16,605 | 16,873 | ||||
Operating expenses | (8,184) | (8,093) | (8,311) | ||||
Impairment | (795) | (645) | (568) | ||||
TSB | 118 | ||||||
Profit | £ 8,493 | £ 7,867 | £ 8,112 | ||||
[1] | In the year ended 31 December 2017 this comprises the effects of asset sales (gain of 30 million); volatile items (gain of 263 million); liability management (loss of 14 million); the amortisation of purchased intangibles (91 million); restructuring costs (621 million, principally comprising costs relating to the Simplification programme; the rationalisation of the non-branch property portfolio, the work on implementing the ring-fencing requirements and the integration of MBNA); and the fair value unwind and other items (loss of 270 million). | ||||||
[2] | Comprises the write-off of the ECN embedded derivative and premium paid on redemption of the remaining notes in the first quarter (loss of 790 million); the effects of asset sales (gain of 217 million); volatile items (gain of 99 million); liability management (gain of 123 million); the amortisation of purchased intangibles (340 million); restructuring costs (622 million, principally comprising the severance related costs related to phase II of the Simplification programme); and the fair value unwind and other items (loss of 231 million). | ||||||
[3] | Comprises market movements on the ECN embedded derivative (loss of 101 million); the effects of asset sales (gain of 54 million); volatile items (loss of 107 million); liability management (loss of 28 million); the amortisation of purchased intangibles (342 million); restructuring costs (170 million); TSB costs (745 million); and the fair value unwind and other items (loss of 192 million). | ||||||
[4] | Net of profits on disposal of operating lease assets of 32 million (2016: 58 million; 2015: 66 million). | ||||||
[5] | Comprises the underlying results of TSB. | ||||||
[6] | The Group's insurance businesses' income statements include income and expenditure which are attributable to the policyholders of the Group's long-term assurance funds. These items have no impact in total upon the profit attributable to equity shareholders and, in order to provide a clearer representation of the underlying trends within the business, these items are shown net within the underlying results. |
NET INTEREST INCOME (Details)
NET INTEREST INCOME (Details) - GBP (£) £ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
NET INTEREST INCOME (Details) [Line Items] | ||||
Interest income | £ 16,006 | £ 16,620 | £ 17,615 | |
Borrowings, interest rate | 2.43% | 2.70% | 2.76% | |
Interest expense | [1] | £ 5,094 | £ 7,346 | £ 6,297 |
Interest income on impaired financial assets accrued | 179 | 205 | 248 | |
Reserve of cash flow hedges [member] | ||||
NET INTEREST INCOME (Details) [Line Items] | ||||
Interest income | 651 | 557 | £ 956 | |
Negative interest rates [Member] | ||||
NET INTEREST INCOME (Details) [Line Items] | ||||
Interest income | 12 | |||
Interest expense | £ 50 | £ 51 | ||
[1] | Includes 50 million (2016: 51 million; 2015: nil) of interest expense on assets with negative interest rates. |
NET INTEREST INCOME (Details) -
NET INTEREST INCOME (Details) - Schedule of Net Interest Income - GBP (£) £ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
NET INTEREST INCOME (Details) - Schedule of Net Interest Income [Line Items] | ||||
Total interest and similar income | £ 16,006 | £ 16,620 | £ 17,615 | |
Subordinated liabilities | £ 1,436 | £ 1,864 | £ 1,970 | |
Total interest and similar expense | [1] | 1.06% | 1.44% | 1.19% |
Total interest and similar expense | [1] | £ (5,094) | £ (7,346) | £ (6,297) |
Net interest income | £ 10,912 | £ 9,274 | £ 11,318 | |
Interest and similar income [Member] | ||||
NET INTEREST INCOME (Details) - Schedule of Net Interest Income [Line Items] | ||||
Loans and advances to customers | 3.16% | 3.32% | 3.50% | |
Loans and advances to customers | £ 14,712 | £ 15,190 | £ 16,256 | |
Loans and advances to banks | 0.40% | 0.46% | 0.42% | |
Loans and advances to banks | £ 271 | £ 381 | £ 397 | |
Debt securities held as loans and receivables | 1.29% | 1.47% | 1.87% | |
Debt securities held as loans and receivables | £ 43 | £ 56 | £ 40 | |
Interest receivable on loans and receivables | 2.81% | 2.87% | 2.98% | |
Interest receivable on loans and receivables | £ 15,026 | £ 15,627 | £ 16,693 | |
Available-for-sale financial assets | 1.96% | 1.88% | 1.77% | |
Available-for-sale financial assets | £ 980 | £ 762 | £ 725 | |
Held-to-maturity investments | 1.44% | 1.49% | ||
Held-to-maturity investments | £ 231 | £ 197 | ||
Total interest and similar income | [2] | 2.73 | 2.77 | 2.86 |
Total interest and similar income | [2] | £ 16,006 | £ 16,620 | £ 17,615 |
Interest and similar expense [Member] | ||||
NET INTEREST INCOME (Details) - Schedule of Net Interest Income [Line Items] | ||||
Deposits from banks, excluding liabilities under sale and repurchase transactions | 1.18% | 0.65% | 0.41% | |
Deposits from banks, excluding liabilities under sale and repurchase transactions | £ (80) | £ (68) | £ (43) | |
Customer deposits, excluding liabilities under sale and repurchase transactions | 0.49% | 0.69% | 0.87% | |
Customer deposits, excluding liabilities under sale and repurchase transactions | £ (1,722) | £ (2,520) | £ (3,299) | |
Debt securities in issue | [3] | 0.37% | 0.94% | 0.69% |
Debt securities in issue | [3] | £ (266) | £ (799) | £ (586) |
Subordinated liabilities | 7.93% | 8.35% | 8.37% | |
Subordinated liabilities | £ (1,481) | £ (1,864) | £ (2,091) | |
Liabilities under sale and repurchase agreements | 0.58% | 0.46% | 0.57% | |
Liabilities under sale and repurchase agreements | £ (110) | £ (38) | £ (34) | |
Interest payable on liabilities held at amortised cost | 0.79% | 1.07% | 1.19% | |
Interest payable on liabilities held at amortised cost | £ (3,659) | £ (5,289) | £ (6,053) | |
Amounts payable to unitholders in consolidated open-ended investment vehicles | 9.15% | 10.85% | 1.16% | |
Amounts payable to unitholders in consolidated open-ended investment vehicles | £ (1,435) | £ (2,057) | £ (244) | |
[1] | Includes 50 million (2016: 51 million; 2015: nil) of interest expense on assets with negative interest rates. | |||
[2] | Includes 12 million (2016: nil; 2015: nil) of interest income on liabilities with negative interest rates. | |||
[3] | The impact of the Group's hedging arrangements is included on this line; excluding this impact the weighted average effective interest rate in respect of debt securities in issue would be 2.43 per cent (2016: 2.70 per cent; 2015: 2.76 per cent). |
NET FEE AND COMMISSION INCOM121
NET FEE AND COMMISSION INCOME (Details) - Schedule of Fee and Commission Income - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Fee and commission income: | |||
Current accounts | £ 712 | £ 752 | £ 804 |
Credit and debit card fees | 953 | 875 | 918 |
Other | 1,300 | 1,418 | 1,530 |
Total fee and commission income | 2,965 | 3,045 | 3,252 |
Fee and commission expense | (1,382) | (1,356) | (1,442) |
Net fee and commission income | £ 1,583 | £ 1,689 | £ 1,810 |
NET TRADING INCOME (Details) -
NET TRADING INCOME (Details) - Schedule of Net Trading Income - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Net Trading Income [Abstract] | |||
Foreign exchange translation (losses) gains | £ (174) | £ 1,363 | £ (80) |
Gains on foreign exchange trading transactions | 517 | 542 | 335 |
Total foreign exchange | 343 | 1,905 | 255 |
Investment property gains (losses) (note 26) | 230 | (83) | 416 |
Securities and other gains (see below) | 11,244 | 16,723 | 3,043 |
Net trading income | £ 11,817 | £ 18,545 | £ 3,714 |
NET TRADING INCOME (Details)123
NET TRADING INCOME (Details) - Schedule of Net Gains (Losses) Held For Trading - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net income arising on assets held at fair value through profit or loss: | |||
Debt securities, loans and advances | £ 1,122 | £ 4,771 | £ 451 |
Equity shares | 9,862 | 12,534 | 2,384 |
Total net income arising on assets held at fair value through profit or loss | 10,984 | 17,305 | 2,835 |
Net (expense) income arising on liabilities held at fair value through profit or loss – debt securities in issue | (144) | (154) | 14 |
Total net gains arising on assets and liabilities held at fair value through profit or loss | 10,840 | 17,151 | 2,849 |
Net gains (losses) on financial instruments held for trading | 404 | (428) | 194 |
Securities and other gains | £ 11,244 | £ 16,723 | £ 3,043 |
INSURANCE PREMIUM INCOME (Detai
INSURANCE PREMIUM INCOME (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
INSURANCE PREMIUM INCOME (Details) [Line Items] | |||
Increase (decrease) in provision for unearned premium | £ (46) | £ (57) | |
Third Party Insurer [Member] | |||
INSURANCE PREMIUM INCOME (Details) [Line Items] | |||
Increase (decrease) in provision for unearned premium | £ 1,959 |
INSURANCE PREMIUM INCOME (De125
INSURANCE PREMIUM INCOME (Details) - Schedule of Insurance Premium Income - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
INSURANCE PREMIUM INCOME (Details) - Schedule of Insurance Premium Income [Line Items] | |||
Net earned premiums | £ 7,930 | £ 8,068 | £ 4,792 |
Life insurance contracts [member] | |||
INSURANCE PREMIUM INCOME (Details) - Schedule of Insurance Premium Income [Line Items] | |||
Gross premiums | 7,355 | 7,298 | 4,043 |
Net earned premiums | 7,187 | 7,210 | 3,921 |
Life insurance contracts [member] | Life and pensions [Member] | |||
INSURANCE PREMIUM INCOME (Details) - Schedule of Insurance Premium Income [Line Items] | |||
Gross premiums | 6,273 | 5,613 | 3,613 |
Life insurance contracts [member] | Annuities [member] | |||
INSURANCE PREMIUM INCOME (Details) - Schedule of Insurance Premium Income [Line Items] | |||
Gross premiums | 1,082 | 1,685 | 430 |
Life insurance contracts [member] | Ceded reinsurance premiums [Member] | |||
INSURANCE PREMIUM INCOME (Details) - Schedule of Insurance Premium Income [Line Items] | |||
Gross premiums | (168) | (88) | (122) |
Non-life insurance contracts [member] | |||
INSURANCE PREMIUM INCOME (Details) - Schedule of Insurance Premium Income [Line Items] | |||
Net earned premiums | £ 743 | £ 858 | £ 871 |
OTHER OPERATING INCOME (Details
OTHER OPERATING INCOME (Details) - Schedule of Other Operating Income - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Other Operating Income [Abstract] | |||
Operating lease rental income | £ 1,344 | £ 1,225 | £ 1,165 |
Rental income from investment properties (note 26) | 213 | 229 | 268 |
Gains less losses on disposal of available-for-sale financial assets (note 41) | 446 | 575 | 51 |
Movement in value of in-force business (note 24) | (165) | 472 | (162) |
Liability management | (14) | (598) | (28) |
Share of results of joint ventures and associates | 6 | (1) | (3) |
Other | 165 | 133 | 225 |
Total other operating income | £ 1,995 | £ 2,035 | £ 1,516 |
INSURANCE CLAIMS (Details) - Sc
INSURANCE CLAIMS (Details) - Schedule of Insurance Claims - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
INSURANCE CLAIMS (Details) - Schedule of Insurance Claims [Line Items] | |||
Total insurance claims | £ 15,578 | £ 22,344 | £ 5,729 |
Deaths [Member] | |||
INSURANCE CLAIMS (Details) - Schedule of Insurance Claims [Line Items] | |||
Claims and surrenders | (675) | (635) | (631) |
Maturities [Member] | |||
INSURANCE CLAIMS (Details) - Schedule of Insurance Claims [Line Items] | |||
Claims and surrenders | (1,280) | (1,347) | (1,348) |
Surrenders [Member] | |||
INSURANCE CLAIMS (Details) - Schedule of Insurance Claims [Line Items] | |||
Claims and surrenders | (5,674) | (5,444) | (4,811) |
Annuities [member] | |||
INSURANCE CLAIMS (Details) - Schedule of Insurance Claims [Line Items] | |||
Claims and surrenders | (985) | (949) | (902) |
Other [Member] | |||
INSURANCE CLAIMS (Details) - Schedule of Insurance Claims [Line Items] | |||
Claims and surrenders | (284) | (242) | (291) |
Life insurance contracts [member] | |||
INSURANCE CLAIMS (Details) - Schedule of Insurance Claims [Line Items] | |||
Claims and surrenders | (8,898) | (8,617) | (7,983) |
Change in insurance and participating investment contracts (note 31) | (9,067) | (14,160) | 2,898 |
Change in non-participating investment contracts | 2,836 | 679 | (438) |
(15,129) | (22,098) | (5,523) | |
Reinsurers’ share | 35 | 106 | 101 |
(15,094) | (21,992) | (5,422) | |
Change in unallocated surplus | (147) | 14 | 63 |
Total insurance claims | (15,241) | (21,978) | (5,359) |
Non-life insurance contracts [member] | |||
INSURANCE CLAIMS (Details) - Schedule of Insurance Claims [Line Items] | |||
Total insurance claims | (337) | (366) | (370) |
Total [Member] | |||
INSURANCE CLAIMS (Details) - Schedule of Insurance Claims [Line Items] | |||
Total insurance claims | (15,578) | (22,344) | (5,729) |
Total life insurance gross claims and surrenders | £ (8,898) | £ (8,617) | £ (7,983) |
OPERATING EXPENSES (Details)
OPERATING EXPENSES (Details) - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of expenses [text block] [Abstract] | |||
Regulatory provision charged to income | £ 61 | ||
Performance-based Cash Awards | £ 102 | £ 116 | £ 96 |
OPERATING EXPENSES (Details) -
OPERATING EXPENSES (Details) - Schedule of Operating Expenses - GBP (£) £ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Staff costs: | ||||
Salaries | £ 2,679 | £ 2,750 | £ 2,808 | |
Social security costs | 361 | 363 | 349 | |
Pensions and other post-retirement benefit schemes (note 35) | 625 | 555 | 548 | |
Restructuring costs | 24 | 241 | 104 | |
Other staff costs | 448 | 433 | 459 | |
4,610 | 4,817 | 4,677 | ||
Premises and equipment: | ||||
Rent and rates | 365 | 365 | 368 | |
Repairs and maintenance | 231 | 187 | 173 | |
Other | 134 | 120 | 174 | |
730 | 672 | 715 | ||
Other expenses: | ||||
Communications and data processing | 882 | 848 | 893 | |
Advertising and promotion | 208 | 198 | 253 | |
Professional fees | 328 | 265 | 262 | |
UK bank levy | 231 | 200 | 270 | |
TSB disposal | 665 | |||
Other | 814 | 873 | 703 | |
2,463 | 2,384 | 3,046 | ||
Depreciation and amortisation: | ||||
Depreciation of property, plant and equipment (note 26) | 1,944 | 1,761 | 1,534 | |
Amortisation of acquired value of in-force non-participating investment contracts (note 24) | 34 | 37 | 41 | |
Amortisation of other intangible assets (note 25) | 392 | 582 | 537 | |
2,370 | 2,380 | 2,112 | ||
Goodwill impairment (note 23) | 8 | |||
Total operating expenses, excluding regulatory provisions | 10,181 | 10,253 | 10,550 | |
Regulatory provisions: | ||||
Regulatory provisions | 2,165 | 2,374 | 4,837 | |
Total operating expenses | 12,346 | 12,627 | 15,387 | |
Payment Protection Insurance [Member] | ||||
Regulatory provisions: | ||||
Regulatory provisions | 1,300 | 1,350 | 4,000 | |
Other regulatory provisions [Member] | ||||
Regulatory provisions: | ||||
Regulatory provisions | [1] | 865 | 1,024 | 837 |
Performance-based compensation [Member] | ||||
Staff costs: | ||||
Performance-based compensation | £ 473 | £ 475 | £ 409 | |
[1] | In 2016, regulatory provisions of £61 million were charged against income. |
OPERATING EXPENSES (Details)130
OPERATING EXPENSES (Details) - Schedule of Performance-Based Compensation Costs - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Performance-based compensation expense comprises [Member] | |||
OPERATING EXPENSES (Details) - Schedule of Performance-Based Compensation Costs [Line Items] | |||
Awards made | £ 473 | £ 475 | £ 409 |
Performance-based compensation expense comprises [Member] | Current year [Member] | |||
OPERATING EXPENSES (Details) - Schedule of Performance-Based Compensation Costs [Line Items] | |||
Awards made | 334 | 312 | 280 |
Performance-based compensation expense comprises [Member] | Prior year [Member] | |||
OPERATING EXPENSES (Details) - Schedule of Performance-Based Compensation Costs [Line Items] | |||
Awards made | 139 | 163 | 129 |
Performance-based compensation expense deferred until later years comprises [Member] | |||
OPERATING EXPENSES (Details) - Schedule of Performance-Based Compensation Costs [Line Items] | |||
Awards made | 162 | 164 | 170 |
Performance-based compensation expense deferred until later years comprises [Member] | Current year [Member] | |||
OPERATING EXPENSES (Details) - Schedule of Performance-Based Compensation Costs [Line Items] | |||
Awards made | 127 | 123 | 114 |
Performance-based compensation expense deferred until later years comprises [Member] | Prior year [Member] | |||
OPERATING EXPENSES (Details) - Schedule of Performance-Based Compensation Costs [Line Items] | |||
Awards made | £ 35 | £ 41 | £ 56 |
OPERATING EXPENSES (Details)131
OPERATING EXPENSES (Details) - Schedule of Average Number of Persons Employed by the Group | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
OPERATING EXPENSES (Details) - Schedule of Average Number of Persons Employed by the Group [Line Items] | |||
Number of Employees | 75,944 | 80,418 | 85,703 |
UK [Member] | |||
OPERATING EXPENSES (Details) - Schedule of Average Number of Persons Employed by the Group [Line Items] | |||
Number of Employees | 75,150 | 79,606 | 84,922 |
Overseas [Member] | |||
OPERATING EXPENSES (Details) - Schedule of Average Number of Persons Employed by the Group [Line Items] | |||
Number of Employees | 794 | 812 | 781 |
OPERATING EXPENSES (Details)132
OPERATING EXPENSES (Details) - Schedule of Auditors' Fees Payable by the Group - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Audit of the company's current year annual report [Member] | |||
OPERATING EXPENSES (Details) - Schedule of Auditors' Fees Payable by the Group [Line Items] | |||
Fees payable to the Company’s auditors | £ 1.5 | £ 1.5 | £ 1.2 |
Audit of the company's subsidiaries pursuant to legislation [Member] | |||
OPERATING EXPENSES (Details) - Schedule of Auditors' Fees Payable by the Group [Line Items] | |||
Fees payable to the Company’s auditors | 18.6 | 14.7 | 14.9 |
Other services supplied pursuant to legislation [Member] | |||
OPERATING EXPENSES (Details) - Schedule of Auditors' Fees Payable by the Group [Line Items] | |||
Fees payable to the Company’s auditors | 3 | 3.1 | 2.2 |
Total audit fees [Member] | |||
OPERATING EXPENSES (Details) - Schedule of Auditors' Fees Payable by the Group [Line Items] | |||
Fees payable to the Company’s auditors | 23.1 | 19.3 | 18.3 |
Other services – audit related fees [Member] | |||
OPERATING EXPENSES (Details) - Schedule of Auditors' Fees Payable by the Group [Line Items] | |||
Fees payable to the Company’s auditors | 1.2 | 3.1 | 3.2 |
Total audit and audit related fees [Member] | |||
OPERATING EXPENSES (Details) - Schedule of Auditors' Fees Payable by the Group [Line Items] | |||
Fees payable to the Company’s auditors | 24.3 | 22.4 | 21.5 |
Taxation compliance services [Member] | |||
OPERATING EXPENSES (Details) - Schedule of Auditors' Fees Payable by the Group [Line Items] | |||
Fees payable to the Company’s auditors | 0.2 | 0.2 | |
All other taxation advisory services [Member] | |||
OPERATING EXPENSES (Details) - Schedule of Auditors' Fees Payable by the Group [Line Items] | |||
Fees payable to the Company’s auditors | 0.1 | 0.1 | |
Total services relating to taxation [Member] | |||
OPERATING EXPENSES (Details) - Schedule of Auditors' Fees Payable by the Group [Line Items] | |||
Fees payable to the Company’s auditors | 0.3 | 0.3 | |
Services relating to corporate finanace transactions [Member] | |||
OPERATING EXPENSES (Details) - Schedule of Auditors' Fees Payable by the Group [Line Items] | |||
Fees payable to the Company’s auditors | 1.2 | 0.1 | 0.2 |
Other [Member] | |||
OPERATING EXPENSES (Details) - Schedule of Auditors' Fees Payable by the Group [Line Items] | |||
Fees payable to the Company’s auditors | 2.4 | 1.5 | 2.3 |
Total other non-audit fees [Member] | |||
OPERATING EXPENSES (Details) - Schedule of Auditors' Fees Payable by the Group [Line Items] | |||
Fees payable to the Company’s auditors | 3.6 | 1.6 | 2.5 |
Total fees payable to the Company’s auditors by the Group [Member] | |||
OPERATING EXPENSES (Details) - Schedule of Auditors' Fees Payable by the Group [Line Items] | |||
Fees payable to the Company’s auditors | £ 27.9 | £ 24.3 | £ 24.3 |
OPERATING EXPENSES (Details)133
OPERATING EXPENSES (Details) - Schedule of Auditors' Fees Payable by Entities Outside of the Group - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Audits of group pension schemes [Member] | |||
OPERATING EXPENSES (Details) - Schedule of Auditors' Fees Payable by Entities Outside of the Group [Line Items] | |||
Audit Fees | £ 0.1 | £ 0.3 | £ 0.3 |
Audits of the unconsolidated Open Ended Investment Companies managed by the Group [Member] | |||
OPERATING EXPENSES (Details) - Schedule of Auditors' Fees Payable by Entities Outside of the Group [Line Items] | |||
Audit Fees | 0.3 | 0.4 | 0.4 |
Reviews of the financial position of corporate and other borrowers [Member] | |||
OPERATING EXPENSES (Details) - Schedule of Auditors' Fees Payable by Entities Outside of the Group [Line Items] | |||
Audit Fees | 1.2 | 3.1 | |
Acquisition due diligence and other work performed in respect of potential venture capital investments [Member] | |||
OPERATING EXPENSES (Details) - Schedule of Auditors' Fees Payable by Entities Outside of the Group [Line Items] | |||
Audit Fees | £ 0.1 | £ 1 | £ 1.2 |
IMPAIRMENT (Details) - Schedule
IMPAIRMENT (Details) - Schedule of Impairment - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
IMPAIRMENT (Details) - Schedule of Impairment [Line Items] | |||
Impairment loss on financial assets | £ (688) | £ (752) | £ (390) |
Other credit risk provisions | (9) | (13) | (55) |
Total impairment charged to the income statement | 688 | 752 | 390 |
Loans and receivables, category [member] | |||
IMPAIRMENT (Details) - Schedule of Impairment [Line Items] | |||
Impairment loss on financial assets | 691 | 592 | 441 |
Loans and advances to customers [Member] | |||
IMPAIRMENT (Details) - Schedule of Impairment [Line Items] | |||
Impairment loss on financial assets | 697 | 592 | 443 |
Debt securities classified as loans and receivables [Member] | |||
IMPAIRMENT (Details) - Schedule of Impairment [Line Items] | |||
Impairment loss on financial assets | (6) | (2) | |
Financial assets available-for-sale, category [member] | |||
IMPAIRMENT (Details) - Schedule of Impairment [Line Items] | |||
Impairment loss on financial assets | £ 6 | £ 173 | £ 4 |
TAXATION (Details)
TAXATION (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of income tax [text block] [Abstract] | |||
Applicable tax rate | 19.25% | 20.00% | 20.25% |
Insurance Deferred Tax Expense Arising From Writedown Or Reversal Of Writedown Of Deferred Tax Asset (in Pounds) | £ 231 |
TAXATION (Details) - Schedule o
TAXATION (Details) - Schedule of Tax Charges - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
TAXATION (Details) - Schedule of Tax Charges [Line Items] | |||
Current year | £ (430) | £ (758) | £ (212) |
Adjustments in respect of prior years | (48) | (94) | 96 |
Current tax expense | (1,250) | (872) | (572) |
Deferred tax expense | (478) | (852) | (116) |
Tax charge | (1,728) | (1,724) | (688) |
UK Corporation Tax [Member] | |||
TAXATION (Details) - Schedule of Tax Charges [Line Items] | |||
Current tax on profit for the year | (1,346) | (1,010) | (485) |
Adjustments in respect of prior years | 126 | 156 | (90) |
Current tax expense | (1,220) | (854) | (575) |
Foreign Tax [Member] | |||
TAXATION (Details) - Schedule of Tax Charges [Line Items] | |||
Current tax on profit for the year | (40) | (20) | (24) |
Adjustments in respect of prior years | 10 | 2 | 27 |
Current tax expense | £ (30) | £ (18) | £ 3 |
TAXATION (Details) - Schedul137
TAXATION (Details) - Schedule of Income Tax Charges - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Income Tax Charges [Abstract] | |||
Tax (expense) credit attributable to policyholders | £ (82) | £ (301) | £ 3 |
Shareholder tax expense | (1,646) | (1,423) | (691) |
Tax expense | £ (1,728) | £ (1,724) | £ (688) |
TAXATION (Details) - Schedul138
TAXATION (Details) - Schedule of Reconciliation of the Charge Resulting from Applying the Standard UK Corporation Tax Rate - GBP (£) £ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Schedule of Reconciliation of the Charge Resulting from Applying the Standard UK Corporation Tax Rate [Abstract] | ||||
Profit before tax | £ 5,625 | £ 3,888 | £ 1,644 | |
UK corporation tax thereon | (1,083) | (778) | (333) | |
Impact of surcharge on banking profits | (452) | (266) | ||
Non-deductible costs: conduct charges | (287) | (289) | (459) | |
Non-deductible costs: bank levy | (44) | (40) | (55) | |
Other non-deductible costs | (59) | (135) | (116) | |
Non-taxable income | 72 | 75 | 162 | |
Tax-exempt gains on disposals | 128 | 19 | 67 | |
Recognition of losses that arose in prior years | 59 | 42 | ||
Remeasurement of deferred tax due to rate changes | (9) | (201) | (27) | |
Differences in overseas tax rates | (15) | 10 | (4) | |
Policyholder tax | [1] | (66) | (241) | 3 |
Adjustments in respect of prior years | 88 | 64 | 33 | |
Tax effect of share of results of joint ventures | (1) | (1) | (1) | |
Tax expense | £ (1,728) | £ (1,724) | £ (688) | |
[1] | In 2016 this included a 231 million write down of the deferred tax asset held within the life business, reflecting the Group's utilisation estimate which has been restricted by the current economic environment. |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - GBP (£) £ in Millions, shares in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of earnings per share [text block] [Abstract] | |||
Number of shares reserved for issue under options and contracts for sale of shares | 57 | 140 | 101 |
Antidilutive Securities Excluded From Computation Of Earnings Per Share Number Of Shares | £ 0 | £ 0.3 | £ 1 |
EARNINGS PER SHARE (Details) -
EARNINGS PER SHARE (Details) - Schedule of Earnings Per Share - GBP (£) £ / shares in Units, £ in Millions, shares in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Earnings Per Share [Abstract] | |||
Profit attributable to equity shareholders – basic and diluted | £ 3,392 | £ 1,651 | £ 466 |
Tax credit on distributions to other equity holders | 102 | 91 | 80 |
£ 3,494 | £ 1,742 | £ 546 | |
Weighted average number of ordinary shares in issue – basic | 71,710 | 71,234 | 71,272 |
Adjustment for share options and awards | 683 | 790 | 1,068 |
Weighted average number of ordinary shares in issue – diluted | 72,393 | 72,024 | 72,340 |
Basic earnings per share | £ 0.049 | £ 0.024 | £ 0.008 |
Diluted earnings per share | £ 0.048 | £ 0.024 | £ 0.008 |
TRADING AND OTHER FINANCIAL 141
TRADING AND OTHER FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (Details) - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
TRADING AND OTHER FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (Details) [Line Items] | ||
Trading and other financial assets at fair value through profit or loss | £ 162,878 | £ 151,174 |
Insurance contracts [member] | ||
TRADING AND OTHER FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (Details) [Line Items] | ||
Trading and other financial assets at fair value through profit or loss | 117,323 | 101,888 |
Insurance contracts [member] | Unconsolidated structured entities [member] | ||
TRADING AND OTHER FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (Details) [Line Items] | ||
Trading and other financial assets at fair value through profit or loss | 28,759 | 15,611 |
Insurance contracts [member] | Equity investments [member] | ||
TRADING AND OTHER FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (Details) [Line Items] | ||
Trading and other financial assets at fair value through profit or loss | £ 1,944 | £ 2,245 |
TRADING AND OTHER FINANCIAL 142
TRADING AND OTHER FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (Details) - Schedule of Trading and Other Financial Assets at Fair Value Through Profit or Loss - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
TRADING AND OTHER FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (Details) - Schedule of Trading and Other Financial Assets at Fair Value Through Profit or Loss [Line Items] | |||
Loans and advances to customers | £ 472,498 | £ 457,958 | |
Loans and advances to banks | 6,611 | 26,902 | £ 25,117 |
Government securities | 34,708 | 48,714 | |
Bank and building society certificates of deposit | 167 | 142 | |
Asset-backed securities: | |||
Mortgage-backed securities | 1,156 | 108 | |
Other asset-backed securities | 255 | 317 | |
Corporate and other debt securities | 4,615 | 6,030 | |
40,901 | 55,311 | ||
Equity shares | 1,197 | 1,213 | |
Financial assets at fair value through profit or loss, classified as held for trading, category [member] | |||
TRADING AND OTHER FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (Details) - Schedule of Trading and Other Financial Assets at Fair Value Through Profit or Loss [Line Items] | |||
Loans and advances to customers | 29,976 | 30,473 | |
Loans and advances to banks | 1,614 | 2,606 | |
Government securities | 9,833 | 11,828 | |
Asset-backed securities: | |||
Mortgage-backed securities | 189 | 47 | |
Other asset-backed securities | 95 | 69 | |
Corporate and other debt securities | 523 | 224 | |
10,640 | 12,168 | ||
Equity shares | 6 | 6 | |
Total | 42,236 | 45,253 | |
Financial assets at fair value through profit or loss, category [member] | |||
TRADING AND OTHER FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (Details) - Schedule of Trading and Other Financial Assets at Fair Value Through Profit or Loss [Line Items] | |||
Government securities | 12,187 | 14,904 | |
Other public sector securities | 1,527 | 1,325 | |
Bank and building society certificates of deposit | 222 | 244 | |
Asset-backed securities: | |||
Mortgage-backed securities | 211 | 660 | |
Other asset-backed securities | 926 | 1,469 | |
Corporate and other debt securities | 19,467 | 19,608 | |
34,540 | 38,210 | ||
Equity shares | 86,084 | 67,691 | |
Treasury and other bills | 18 | 20 | |
Total | 120,642 | 105,921 | |
Total [Member] | |||
TRADING AND OTHER FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (Details) - Schedule of Trading and Other Financial Assets at Fair Value Through Profit or Loss [Line Items] | |||
Loans and advances to customers | 29,976 | 30,473 | |
Loans and advances to banks | 1,614 | 2,606 | |
Government securities | 22,020 | 26,732 | |
Other public sector securities | 1,527 | 1,325 | |
Bank and building society certificates of deposit | 222 | 244 | |
Asset-backed securities: | |||
Mortgage-backed securities | 400 | 707 | |
Other asset-backed securities | 1,021 | 1,538 | |
Corporate and other debt securities | 19,990 | 19,832 | |
45,180 | 50,378 | ||
Equity shares | 86,090 | 67,697 | |
Treasury and other bills | 18 | 20 | |
Total | £ 162,878 | £ 151,174 |
DERIVATIVE FINANCIAL INSTRUM143
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of Derivative Instruments - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Exchange rate contracts: | ||
Contract/notional amount | £ 3,646,377 | £ 4,035,788 |
Fair value assets | 25,834 | 36,138 |
Fair value liabilities | 26,124 | 34,924 |
Trading and other exchange rate contracts [Member] | ||
Exchange rate contracts: | ||
Contract/notional amount | 270,215 | 360,047 |
Fair value assets | 4,760 | 8,860 |
Fair value liabilities | 4,950 | 8,781 |
Interest rate contract [Member] | ||
Exchange rate contracts: | ||
Contract/notional amount | 2,605,087 | 2,983,137 |
Fair value assets | 18,134 | 23,050 |
Fair value liabilities | 17,896 | 22,352 |
Credit Derivatives [Member] | ||
Exchange rate contracts: | ||
Contract/notional amount | 4,568 | 8,098 |
Fair value assets | 77 | 381 |
Fair value liabilities | 423 | 659 |
Equity And Other Contracts [Member] | ||
Exchange rate contracts: | ||
Contract/notional amount | 25,150 | 43,218 |
Fair value assets | 982 | 1,135 |
Fair value liabilities | 1,242 | 1,168 |
Trading and Other [Member] | ||
Exchange rate contracts: | ||
Contract/notional amount | 2,905,020 | 3,394,500 |
Fair value assets | 23,953 | 33,426 |
Fair value liabilities | 24,511 | 32,960 |
Hedging instruments [member] | ||
Exchange rate contracts: | ||
Contract/notional amount | 741,357 | 641,288 |
Fair value assets | 1,881 | 2,712 |
Fair value liabilities | 1,613 | 1,964 |
Hedging instruments [member] | Fair value hedges [member] | ||
Exchange rate contracts: | ||
Contract/notional amount | 110,997 | 195,870 |
Fair value assets | 1,164 | 1,481 |
Fair value liabilities | 445 | 759 |
Hedging instruments [member] | Cash flow hedges [member] | ||
Exchange rate contracts: | ||
Contract/notional amount | 630,360 | 445,418 |
Fair value assets | 717 | 1,231 |
Fair value liabilities | 1,168 | 1,205 |
Spots, Forwards, and Futures [Member] | Trading and other exchange rate contracts [Member] | ||
Exchange rate contracts: | ||
Contract/notional amount | 31,716 | 38,072 |
Fair value assets | 1,023 | 1,149 |
Fair value liabilities | 789 | 1,383 |
Currency swap contract [member] | Trading and other exchange rate contracts [Member] | ||
Exchange rate contracts: | ||
Contract/notional amount | 223,624 | 288,441 |
Fair value assets | 3,157 | 6,903 |
Fair value liabilities | 3,534 | 6,382 |
Currency swap contract [member] | Hedging instruments [member] | Fair value hedges [member] | ||
Exchange rate contracts: | ||
Contract/notional amount | 1,327 | 1,454 |
Fair value assets | 19 | 19 |
Fair value liabilities | 38 | 22 |
Currency swap contract [member] | Hedging instruments [member] | Cash flow hedges [member] | ||
Exchange rate contracts: | ||
Contract/notional amount | 7,310 | 8,121 |
Fair value assets | 120 | 417 |
Fair value liabilities | 114 | 36 |
Purchased call options [member] | Trading and other exchange rate contracts [Member] | ||
Exchange rate contracts: | ||
Contract/notional amount | 8,191 | 15,192 |
Fair value assets | 580 | 808 |
Purchased call options [member] | Interest rate contract [Member] | ||
Exchange rate contracts: | ||
Contract/notional amount | 32,097 | 39,509 |
Fair value assets | 2,329 | 3,251 |
Written put options [member] | Trading and other exchange rate contracts [Member] | ||
Exchange rate contracts: | ||
Contract/notional amount | 6,684 | 18,342 |
Fair value liabilities | 627 | 1,016 |
Written put options [member] | Interest rate contract [Member] | ||
Exchange rate contracts: | ||
Contract/notional amount | 32,817 | 39,847 |
Fair value liabilities | 2,524 | 3,400 |
Interest rate swap contract [member] | Interest rate contract [Member] | ||
Exchange rate contracts: | ||
Contract/notional amount | 2,264,834 | 2,160,535 |
Fair value assets | 15,791 | 19,780 |
Fair value liabilities | 15,364 | 18,862 |
Interest rate swap contract [member] | Hedging instruments [member] | Fair value hedges [member] | ||
Exchange rate contracts: | ||
Contract/notional amount | 109,670 | 194,416 |
Fair value assets | 1,145 | 1,462 |
Fair value liabilities | 407 | 737 |
Forward Rate Agreements [Member] | Interest rate contract [Member] | ||
Exchange rate contracts: | ||
Contract/notional amount | 239,797 | 628,962 |
Fair value assets | 5 | 13 |
Fair value liabilities | 1 | 87 |
Futures contract [member] | Interest rate contract [Member] | ||
Exchange rate contracts: | ||
Contract/notional amount | 35,542 | 114,284 |
Fair value assets | 9 | 6 |
Fair value liabilities | 7 | 3 |
Futures contract [member] | Hedging instruments [member] | Cash flow hedges [member] | ||
Exchange rate contracts: | ||
Contract/notional amount | 73,951 | 53,115 |
Fair value liabilities | 1 | 3 |
Interest rate swap contract [member] | Hedging instruments [member] | Cash flow hedges [member] | ||
Exchange rate contracts: | ||
Contract/notional amount | 549,099 | 384,182 |
Fair value assets | 597 | 814 |
Fair value liabilities | £ 1,053 | £ 1,166 |
DERIVATIVE FINANCIAL INSTRUM144
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of Hedged Cash Flows - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Hedged forecast cash flows expected to occur [Member] | ||
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of Hedged Cash Flows [Line Items] | ||
Forecast receivable cash flows | £ 3,232 | £ 2,910 |
Forecast payable cash flows | (4,619) | (5,616) |
Hedged forecast cash flows expected to occur [Member] | Not later than one year [member] | ||
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of Hedged Cash Flows [Line Items] | ||
Forecast receivable cash flows | 346 | 172 |
Forecast payable cash flows | (475) | (565) |
Hedged forecast cash flows expected to occur [Member] | Later than one year and not later than two years [member] | ||
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of Hedged Cash Flows [Line Items] | ||
Forecast receivable cash flows | 515 | 198 |
Forecast payable cash flows | (654) | (722) |
Hedged forecast cash flows expected to occur [Member] | Later than two years and not later than three years [member] | ||
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of Hedged Cash Flows [Line Items] | ||
Forecast receivable cash flows | 682 | 415 |
Forecast payable cash flows | (592) | (692) |
Hedged forecast cash flows expected to occur [Member] | Later than three years and not later than four years [member] | ||
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of Hedged Cash Flows [Line Items] | ||
Forecast receivable cash flows | 492 | 372 |
Forecast payable cash flows | (552) | (599) |
Hedged forecast cash flows expected to occur [Member] | Later than four years and not later than five years [member] | ||
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of Hedged Cash Flows [Line Items] | ||
Forecast receivable cash flows | 395 | 391 |
Forecast payable cash flows | (406) | (429) |
Hedged forecast cash flows expected to occur [Member] | Later than five years and not later than ten years [member] | ||
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of Hedged Cash Flows [Line Items] | ||
Forecast receivable cash flows | 701 | 1,215 |
Forecast payable cash flows | (1,150) | (1,541) |
Hedged forecast cash flows expected to occur [Member] | Later than ten years and not later than twenty years [Member] | ||
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of Hedged Cash Flows [Line Items] | ||
Forecast receivable cash flows | 55 | 102 |
Forecast payable cash flows | (627) | (806) |
Hedged forecast cash flows expected to occur [Member] | Later than twenty years [Member] | ||
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of Hedged Cash Flows [Line Items] | ||
Forecast receivable cash flows | 46 | 45 |
Forecast payable cash flows | (163) | (262) |
Hedged forecast cash flows affect profit or loss [Member] | ||
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of Hedged Cash Flows [Line Items] | ||
Forecast receivable cash flows | 3,232 | 2,910 |
Forecast payable cash flows | (4,619) | (5,616) |
Hedged forecast cash flows affect profit or loss [Member] | Not later than one year [member] | ||
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of Hedged Cash Flows [Line Items] | ||
Forecast receivable cash flows | 307 | 211 |
Forecast payable cash flows | (680) | (777) |
Hedged forecast cash flows affect profit or loss [Member] | Later than one year and not later than two years [member] | ||
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of Hedged Cash Flows [Line Items] | ||
Forecast receivable cash flows | 562 | 223 |
Forecast payable cash flows | (640) | (713) |
Hedged forecast cash flows affect profit or loss [Member] | Later than two years and not later than three years [member] | ||
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of Hedged Cash Flows [Line Items] | ||
Forecast receivable cash flows | 648 | 418 |
Forecast payable cash flows | (556) | (671) |
Hedged forecast cash flows affect profit or loss [Member] | Later than three years and not later than four years [member] | ||
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of Hedged Cash Flows [Line Items] | ||
Forecast receivable cash flows | 448 | 363 |
Forecast payable cash flows | (505) | (521) |
Hedged forecast cash flows affect profit or loss [Member] | Later than four years and not later than five years [member] | ||
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of Hedged Cash Flows [Line Items] | ||
Forecast receivable cash flows | 466 | 472 |
Forecast payable cash flows | (377) | (415) |
Hedged forecast cash flows affect profit or loss [Member] | Later than five years and not later than ten years [member] | ||
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of Hedged Cash Flows [Line Items] | ||
Forecast receivable cash flows | 684 | 1,070 |
Forecast payable cash flows | (1,085) | (1,477) |
Hedged forecast cash flows affect profit or loss [Member] | Later than ten years and not later than twenty years [Member] | ||
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of Hedged Cash Flows [Line Items] | ||
Forecast receivable cash flows | 63 | 99 |
Forecast payable cash flows | (612) | (787) |
Hedged forecast cash flows affect profit or loss [Member] | Later than twenty years [Member] | ||
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of Hedged Cash Flows [Line Items] | ||
Forecast receivable cash flows | 54 | 54 |
Forecast payable cash flows | £ (164) | £ (255) |
LOANS AND ADVANCES TO CUSTOM145
LOANS AND ADVANCES TO CUSTOMERS (Details) - Schedule of Loans and Advances to Customers - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
0000 to 0999 Agriculture, Forestry, and Fishing [Member] | ||
LOANS AND ADVANCES TO CUSTOMERS (Details) - Schedule of Loans and Advances to Customers [Line Items] | ||
Loans and advances to customers | £ 7,461 | £ 7,269 |
Energy and water supply [Member] | ||
LOANS AND ADVANCES TO CUSTOMERS (Details) - Schedule of Loans and Advances to Customers [Line Items] | ||
Loans and advances to customers | 1,609 | 2,320 |
2000 to 3999 Manufacturing [Member] | ||
LOANS AND ADVANCES TO CUSTOMERS (Details) - Schedule of Loans and Advances to Customers [Line Items] | ||
Loans and advances to customers | 7,886 | 7,285 |
1500 to 1799 Construction Industries [Member] | ||
LOANS AND ADVANCES TO CUSTOMERS (Details) - Schedule of Loans and Advances to Customers [Line Items] | ||
Loans and advances to customers | 4,428 | 4,535 |
Transport, distribution and hotels [Member] | ||
LOANS AND ADVANCES TO CUSTOMERS (Details) - Schedule of Loans and Advances to Customers [Line Items] | ||
Loans and advances to customers | 14,074 | 13,320 |
Postal and telecommunications [Member] | ||
LOANS AND ADVANCES TO CUSTOMERS (Details) - Schedule of Loans and Advances to Customers [Line Items] | ||
Loans and advances to customers | 2,148 | 2,564 |
Property companies [Member] | ||
LOANS AND ADVANCES TO CUSTOMERS (Details) - Schedule of Loans and Advances to Customers [Line Items] | ||
Loans and advances to customers | 30,980 | 32,192 |
Financial, business and other services [Member] | ||
LOANS AND ADVANCES TO CUSTOMERS (Details) - Schedule of Loans and Advances to Customers [Line Items] | ||
Loans and advances to customers | 57,006 | 49,197 |
Mortgages [member] | ||
LOANS AND ADVANCES TO CUSTOMERS (Details) - Schedule of Loans and Advances to Customers [Line Items] | ||
Loans and advances to customers | 304,665 | 306,682 |
Other [Member] | ||
LOANS AND ADVANCES TO CUSTOMERS (Details) - Schedule of Loans and Advances to Customers [Line Items] | ||
Loans and advances to customers | 28,757 | 20,761 |
Gross and Lease Financing [Member] | ||
Personal: | ||
Loans and advances to customers | 2,094 | 2,628 |
Hire purchase [Member] | ||
Personal: | ||
Loans and advances to customers | 13,591 | 11,617 |
Gross [Member] | ||
Personal: | ||
Loans and advances to customers | 474,699 | 460,370 |
Allowance for impairment losses [Member] | ||
Personal: | ||
Loans and advances to customers | (2,201) | (2,412) |
Net [Member] | ||
Personal: | ||
Loans and advances to customers | £ 472,498 | £ 457,958 |
LOANS AND ADVANCES TO CUSTOM146
LOANS AND ADVANCES TO CUSTOMERS (Details) - Schedule of Net Investment in Finance Leases - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
LOANS AND ADVANCES TO CUSTOMERS (Details) - Schedule of Net Investment in Finance Leases [Line Items] | ||
Gross investment in finance leases, receivable: | £ 2,839 | £ 3,730 |
Unearned future finance income on finance leases | (692) | (1,038) |
Rentals received in advance | (53) | (64) |
Net investment in finance leases | 472,498 | 457,958 |
Not later than 1 year [member] | ||
LOANS AND ADVANCES TO CUSTOMERS (Details) - Schedule of Net Investment in Finance Leases [Line Items] | ||
Gross investment in finance leases, receivable: | 680 | 551 |
Later than 1 year and not later than 5 years [member] | ||
LOANS AND ADVANCES TO CUSTOMERS (Details) - Schedule of Net Investment in Finance Leases [Line Items] | ||
Gross investment in finance leases, receivable: | 1,106 | 1,618 |
Later than 5 years [member] | ||
LOANS AND ADVANCES TO CUSTOMERS (Details) - Schedule of Net Investment in Finance Leases [Line Items] | ||
Gross investment in finance leases, receivable: | 1,053 | 1,561 |
Gross and Lease Financing [Member] | ||
LOANS AND ADVANCES TO CUSTOMERS (Details) - Schedule of Net Investment in Finance Leases [Line Items] | ||
Net investment in finance leases | £ 2,094 | £ 2,628 |
LOANS AND ADVANCES TO CUSTOM147
LOANS AND ADVANCES TO CUSTOMERS (Details) - Schedule of Recoverable Net Investment in Finance Leases - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
LOANS AND ADVANCES TO CUSTOMERS (Details) - Schedule of Recoverable Net Investment in Finance Leases [Line Items] | ||
Net Investment in Finance Lease | £ 2,094 | £ 2,628 |
Not later than 1 year [member] | ||
LOANS AND ADVANCES TO CUSTOMERS (Details) - Schedule of Recoverable Net Investment in Finance Leases [Line Items] | ||
Net Investment in Finance Lease | 546 | 361 |
Later than 1 year and not later than 5 years [member] | ||
LOANS AND ADVANCES TO CUSTOMERS (Details) - Schedule of Recoverable Net Investment in Finance Leases [Line Items] | ||
Net Investment in Finance Lease | 887 | 1,282 |
Later than 5 years [member] | ||
LOANS AND ADVANCES TO CUSTOMERS (Details) - Schedule of Recoverable Net Investment in Finance Leases [Line Items] | ||
Net Investment in Finance Lease | £ 661 | £ 985 |
SECURITISATIONS AND COVERED 148
SECURITISATIONS AND COVERED BONDS (Details) - Securitisation programme [Member] - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
SECURITISATIONS AND COVERED BONDS (Details) [Line Items] | ||
Restricted cash and cash equivalents | £ 3,507 | £ 9,018 |
Liquidity Facilities To Support Structured Entities | £ 95 | £ 373 |
SECURITISATIONS AND COVERED 149
SECURITISATIONS AND COVERED BONDS (Details) - Schedule of Securitisation and Covered Bond Programmes - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | |
SECURITISATIONS AND COVERED BONDS (Details) - Schedule of Securitisation and Covered Bond Programmes [Line Items] | |||
Securitisation and covered bond programmes | £ 29,418 | £ 27,182 | |
Securities lending [member] | Securitisation programme [Member] | |||
SECURITISATIONS AND COVERED BONDS (Details) - Schedule of Securitisation and Covered Bond Programmes [Line Items] | |||
Securitisation and covered bond programmes | [1] | 35,475 | 52,184 |
Securities lending [member] | Securitisation programme [Member] | UK residential mortgages [Member] | |||
SECURITISATIONS AND COVERED BONDS (Details) - Schedule of Securitisation and Covered Bond Programmes [Line Items] | |||
Securitisation and covered bond programmes | [1] | 21,158 | 35,146 |
Securities lending [member] | Securitisation programme [Member] | Commercial loans [Member] | |||
SECURITISATIONS AND COVERED BONDS (Details) - Schedule of Securitisation and Covered Bond Programmes [Line Items] | |||
Securitisation and covered bond programmes | [1] | 6,616 | 7,395 |
Securities lending [member] | Securitisation programme [Member] | Credit card receivables [Member] | |||
SECURITISATIONS AND COVERED BONDS (Details) - Schedule of Securitisation and Covered Bond Programmes [Line Items] | |||
Securitisation and covered bond programmes | [1] | 7,701 | 7,610 |
Securities lending [member] | Securitisation programme [Member] | Dutch residential mortgages [Member] | |||
SECURITISATIONS AND COVERED BONDS (Details) - Schedule of Securitisation and Covered Bond Programmes [Line Items] | |||
Securitisation and covered bond programmes | [1] | 2,033 | |
Securities lending [member] | Covered bond programme [Member] | |||
SECURITISATIONS AND COVERED BONDS (Details) - Schedule of Securitisation and Covered Bond Programmes [Line Items] | |||
Securitisation and covered bond programmes | 31,989 | 35,968 | |
Notes in issue [Member] | |||
SECURITISATIONS AND COVERED BONDS (Details) - Schedule of Securitisation and Covered Bond Programmes [Line Items] | |||
Securitisation and covered bond programmes | 29,792 | 37,774 | |
Notes in issue [Member] | Securitisation programme [Member] | |||
SECURITISATIONS AND COVERED BONDS (Details) - Schedule of Securitisation and Covered Bond Programmes [Line Items] | |||
Securitisation and covered bond programmes | [1] | 25,196 | 33,688 |
Notes in issue [Member] | Securitisation programme [Member] | UK residential mortgages [Member] | |||
SECURITISATIONS AND COVERED BONDS (Details) - Schedule of Securitisation and Covered Bond Programmes [Line Items] | |||
Securitisation and covered bond programmes | [1] | 14,105 | 17,705 |
Notes in issue [Member] | Securitisation programme [Member] | Commercial loans [Member] | |||
SECURITISATIONS AND COVERED BONDS (Details) - Schedule of Securitisation and Covered Bond Programmes [Line Items] | |||
Securitisation and covered bond programmes | [1] | 7,001 | 8,179 |
Notes in issue [Member] | Securitisation programme [Member] | Credit card receivables [Member] | |||
SECURITISATIONS AND COVERED BONDS (Details) - Schedule of Securitisation and Covered Bond Programmes [Line Items] | |||
Securitisation and covered bond programmes | [1] | 4,090 | 5,723 |
Notes in issue [Member] | Securitisation programme [Member] | Dutch residential mortgages [Member] | |||
SECURITISATIONS AND COVERED BONDS (Details) - Schedule of Securitisation and Covered Bond Programmes [Line Items] | |||
Securitisation and covered bond programmes | [1] | 2,081 | |
Notes in issue [Member] | Securitisation programme [Member] | Less held by the group [Member] | |||
SECURITISATIONS AND COVERED BONDS (Details) - Schedule of Securitisation and Covered Bond Programmes [Line Items] | |||
Securitisation and covered bond programmes | (21,536) | (26,435) | |
Notes in issue [Member] | Securitisation programme [Member] | Total [Member] | |||
SECURITISATIONS AND COVERED BONDS (Details) - Schedule of Securitisation and Covered Bond Programmes [Line Items] | |||
Securitisation and covered bond programmes | 3,660 | 7,253 | |
Notes in issue [Member] | Covered bond programme [Member] | |||
SECURITISATIONS AND COVERED BONDS (Details) - Schedule of Securitisation and Covered Bond Programmes [Line Items] | |||
Securitisation and covered bond programmes | 26,832 | 31,221 | |
Notes in issue [Member] | Covered bond programme [Member] | Less held by the group [Member] | |||
SECURITISATIONS AND COVERED BONDS (Details) - Schedule of Securitisation and Covered Bond Programmes [Line Items] | |||
Securitisation and covered bond programmes | (700) | (700) | |
Notes in issue [Member] | Covered bond programme [Member] | Total [Member] | |||
SECURITISATIONS AND COVERED BONDS (Details) - Schedule of Securitisation and Covered Bond Programmes [Line Items] | |||
Securitisation and covered bond programmes | 26,132 | 30,521 | |
Residential mortgage-backed [Member] | Securities lending [member] | Covered bond programme [Member] | |||
SECURITISATIONS AND COVERED BONDS (Details) - Schedule of Securitisation and Covered Bond Programmes [Line Items] | |||
Securitisation and covered bond programmes | 30,361 | 33,881 | |
Residential mortgage-backed [Member] | Notes in issue [Member] | Covered bond programme [Member] | |||
SECURITISATIONS AND COVERED BONDS (Details) - Schedule of Securitisation and Covered Bond Programmes [Line Items] | |||
Securitisation and covered bond programmes | 25,632 | 30,021 | |
Social housing loan-backed [Member] | Securities lending [member] | Covered bond programme [Member] | |||
SECURITISATIONS AND COVERED BONDS (Details) - Schedule of Securitisation and Covered Bond Programmes [Line Items] | |||
Securitisation and covered bond programmes | 1,628 | 2,087 | |
Social housing loan-backed [Member] | Notes in issue [Member] | Covered bond programme [Member] | |||
SECURITISATIONS AND COVERED BONDS (Details) - Schedule of Securitisation and Covered Bond Programmes [Line Items] | |||
Securitisation and covered bond programmes | £ 1,200 | £ 1,200 | |
[1] | Includes securitisations utilising a combination of external funding and credit default swaps. |
STRUCTURED ENTITIES (Details)
STRUCTURED ENTITIES (Details) - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
STRUCTURED ENTITIES (Details) [Line Items] | |||
Loans and advances to banks | £ 6,611 | £ 26,902 | £ 25,117 |
Asset-backed debt instruments held | 40,901 | 55,311 | |
Assets and liabilities held in consolidated collective investment vehicles | 68,124 | 75,669 | |
Assets and liabilities held in unconsolidated collective investment vehicles | 28,759 | 15,611 | |
Total Asset Value Of Unconsolidated Structured Entities | 2,338,000 | 1,849,000 | |
Cancara [Member] | |||
STRUCTURED ENTITIES (Details) [Line Items] | |||
Financial assets pledged as collateral for liabilities or contingent liabilities | 6,049 | 6,840 | |
Loans and advances to banks | 5,939 | 6,684 | |
Asset-backed debt instruments held | £ 110 | £ 156 |
ALLOWANCE FOR IMPAIRMENT LOS151
ALLOWANCE FOR IMPAIRMENT LOSSES ON LOANS AND RECEIVABLES (Details) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
ALLOWANCE FOR IMPAIRMENT LOSSES ON LOANS AND RECEIVABLES (Details) [Line Items] | ||
Decrease through impairments, regulatory deferral account debit balances | £ 200 | |
Impairment of loans and receivables estimated increase decrease due to change in factor | 25 | £ 33 |
Allowance account for credit losses of financial assets | £ 2,201 | 2,412 |
Mortgages Impairment to House Prices [Member] | ||
ALLOWANCE FOR IMPAIRMENT LOSSES ON LOANS AND RECEIVABLES (Details) [Line Items] | ||
Sensitivity analysis to insurance risk | If average house prices were ten per cent lower than those estimated at 31 December 2017, the impairment charge would increase by approximately £200 million in respect of UK mortgages. | |
Financial assets impaired [member] | ||
ALLOWANCE FOR IMPAIRMENT LOSSES ON LOANS AND RECEIVABLES (Details) [Line Items] | ||
Allowance account for credit losses of financial assets | £ 1,772 | 1,876 |
Collective basis [Member] | ||
ALLOWANCE FOR IMPAIRMENT LOSSES ON LOANS AND RECEIVABLES (Details) [Line Items] | ||
Allowance account for credit losses of financial assets | £ 1,201 | £ 1,208 |
ALLOWANCE FOR IMPAIRMENT LOS152
ALLOWANCE FOR IMPAIRMENT LOSSES ON LOANS AND RECEIVABLES (Details) - Schedule of Allowance for Impairment Losses on Loans and Receivables - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
ALLOWANCE FOR IMPAIRMENT LOSSES ON LOANS AND RECEIVABLES (Details) - Schedule of Allowance for Impairment Losses on Loans and Receivables [Line Items] | ||
Balance | £ 2,412 | |
Balance | 2,201 | £ 2,412 |
Accumulated impairment [member] | ||
ALLOWANCE FOR IMPAIRMENT LOSSES ON LOANS AND RECEIVABLES (Details) - Schedule of Allowance for Impairment Losses on Loans and Receivables [Line Items] | ||
Balance | 2,488 | 3,130 |
Exchange and other adjustments | 132 | 69 |
Advances written off | (1,543) | (2,133) |
Recoveries of advances written off in previous years | 482 | 862 |
Unwinding of discount | (23) | (32) |
Charge (release) to the income statement (note 12) | 691 | 592 |
Balance | 2,227 | 2,488 |
Loans and advances to customers [Member] | Accumulated impairment [member] | ||
ALLOWANCE FOR IMPAIRMENT LOSSES ON LOANS AND RECEIVABLES (Details) - Schedule of Allowance for Impairment Losses on Loans and Receivables [Line Items] | ||
Balance | 2,412 | 3,033 |
Exchange and other adjustments | 132 | 69 |
Advances written off | (1,499) | (2,111) |
Recoveries of advances written off in previous years | 482 | 861 |
Unwinding of discount | (23) | (32) |
Charge (release) to the income statement (note 12) | 697 | 592 |
Balance | 2,201 | 2,412 |
Debt securities [member] | Accumulated impairment [member] | ||
ALLOWANCE FOR IMPAIRMENT LOSSES ON LOANS AND RECEIVABLES (Details) - Schedule of Allowance for Impairment Losses on Loans and Receivables [Line Items] | ||
Balance | 76 | 97 |
Advances written off | (44) | (22) |
Recoveries of advances written off in previous years | 1 | |
Charge (release) to the income statement (note 12) | (6) | |
Balance | £ 26 | £ 76 |
AVAILABLE-FOR-SALE FINANCIAL153
AVAILABLE-FOR-SALE FINANCIAL ASSETS (Details) - Schedule of Available-For-Sale Financial Assets - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Debt securities: | ||
Government securities | £ 34,708 | £ 48,714 |
Bank and building society certificates of deposit | 167 | 142 |
Asset-backed securities: | ||
Mortgage-backed securities | 1,156 | 108 |
Other asset-backed securities | 255 | 317 |
Corporate and other debt securities | 4,615 | 6,030 |
40,901 | 55,311 | |
Equity shares | 1,197 | 1,213 |
Total available-for-sale financial assets | £ 42,098 | £ 56,524 |
ACQUISITION OF MBNA LIMITED (De
ACQUISITION OF MBNA LIMITED (Details) - GBP (£) £ in Millions | Jun. 01, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
ACQUISITION OF MBNA LIMITED (Details) [Line Items] | ||||
Proportion of ownership interest in subsidiary | 100.00% | |||
Acquisitions through business combinations, intangible assets and goodwill | £ 302 | |||
Loans and advances to customers | 472,498 | £ 457,958 | ||
Profit (loss) before tax | 5,625 | 3,888 | £ 1,644 | |
Revenue | 34,237 | £ 39,611 | £ 23,150 | |
Payment Protection Insurance [Member] | ||||
ACQUISITION OF MBNA LIMITED (Details) [Line Items] | ||||
PPI liability cap | 240 | |||
MBNA Limited [Member] | ||||
ACQUISITION OF MBNA LIMITED (Details) [Line Items] | ||||
Receivables from contracts with customers | £ 7,628 | |||
MBNA Limited [Member] | FIA Jersey Holdings Limited [Member] | ||||
ACQUISITION OF MBNA LIMITED (Details) [Line Items] | ||||
Proportion of ownership interest in subsidiary | 100.00% | |||
Consideration transferred, acquisition-date fair value | £ 2,016 | |||
Acquisitions through business combinations, intangible assets and goodwill | 302 | |||
MBNA Limited [Member] | Book value [Member] | ||||
ACQUISITION OF MBNA LIMITED (Details) [Line Items] | ||||
Loans and advances to customers | £ 7,466 | |||
MBNA Limited [Member] | Post-acquisition [Member] | ||||
ACQUISITION OF MBNA LIMITED (Details) [Line Items] | ||||
Other income (expense) from subsidiaries, jointly controlled entities and associates | 436 | |||
Profit (loss) before tax | 146 | |||
MBNA Limited [Member] | Had the acquisition date been 1 January 2017 [Member] | ||||
ACQUISITION OF MBNA LIMITED (Details) [Line Items] | ||||
Profit (loss) before tax | 5,737 | |||
Increase (decrease) in consolidated total income | 329 | |||
Revenue | 34,566 | |||
Increase (decrease) in consolidated profit before tax | 112 | |||
MBNA Limited [Member] | Goodwill [member] | ||||
ACQUISITION OF MBNA LIMITED (Details) [Line Items] | ||||
Increase (decrease) through acquisition of subsidiary, equity | 19 | |||
MBNA Limited [Member] | Other assets [member] | ||||
ACQUISITION OF MBNA LIMITED (Details) [Line Items] | ||||
Increase (decrease) through acquisition of subsidiary, equity | (23) | |||
MBNA Limited [Member] | Deferred tax assets [Member] | ||||
ACQUISITION OF MBNA LIMITED (Details) [Line Items] | ||||
Increase (decrease) through acquisition of subsidiary, equity | 4 | |||
MBNA Limited [Member] | Operating expense [Member] | ||||
ACQUISITION OF MBNA LIMITED (Details) [Line Items] | ||||
Acquisition-related costs | £ 21 |
ACQUISITION OF MBNA LIMITED 155
ACQUISITION OF MBNA LIMITED (Details) - Schedule of fair value of the identifiable assets and liabilities acquired - GBP (£) £ in Millions | Jun. 01, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Assets | ||||
Loans and advances to customers | £ 472,498 | £ 457,958 | ||
Available-for-sale financial assets | 42,098 | 56,524 | ||
Purchased credit card relationships | 702 | |||
Deferred tax assets | 2,284 | 2,706 | ||
Total assets | 812,109 | 817,793 | ||
Liabilities | ||||
Deposits from banks | 29,804 | 16,384 | ||
Other provisions | 5,546 | 5,218 | ||
Total liabilities | 762,966 | 769,328 | ||
Goodwill arising on acquisition | 302 | |||
At fair value [member] | ||||
Liabilities | ||||
Deposits from banks | £ 29,798 | £ 16,395 | ||
MBNA Limited [Member] | Book value [Member] | ||||
Assets | ||||
Loans and advances to customers | £ 7,466 | |||
Available-for-sale financial assets | 16 | |||
Deferred tax assets | 27 | |||
Other assets | 190 | |||
Total assets | 7,699 | |||
Liabilities | ||||
Deposits from banks | [1] | 6,431 | ||
Deferred tax liabilities | 3 | |||
Other liabilities | 112 | |||
Other provisions | 233 | |||
Total liabilities | 6,779 | |||
Fair value of net assets acquired | 920 | |||
MBNA Limited [Member] | Fair value adjustments [Member] | ||||
Assets | ||||
Loans and advances to customers | 345 | |||
Purchased credit card relationships | 702 | |||
Deferred tax assets | 4 | |||
Other assets | 322 | |||
Total assets | 1,373 | |||
Liabilities | ||||
Deposits from banks | [1] | |||
Deferred tax liabilities | 184 | |||
Other provisions | 395 | |||
Total liabilities | 579 | |||
Fair value of net assets acquired | 794 | |||
MBNA Limited [Member] | At fair value [member] | ||||
Assets | ||||
Loans and advances to customers | 7,811 | |||
Available-for-sale financial assets | 16 | |||
Purchased credit card relationships | 702 | |||
Deferred tax assets | 31 | |||
Other assets | 512 | |||
Total assets | 9,072 | |||
Liabilities | ||||
Deposits from banks | [1] | 6,431 | ||
Deferred tax liabilities | 187 | |||
Other liabilities | 112 | |||
Other provisions | 628 | |||
Total liabilities | 7,358 | |||
Fair value of net assets acquired | 1,714 | |||
Goodwill arising on acquisition | 302 | |||
Total consideration | £ 2,016 | |||
[1] | Upon acquisition, the funding of MBNA was assumed by Lloyds Bank plc. |
GOODWILL (Details)
GOODWILL (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
GOODWILL (Details) [Line Items] | |||
Goodwill | £ 2,310 | £ 2,016 | £ 2,016 |
Scottish Widows [member] | |||
GOODWILL (Details) [Line Items] | |||
Goodwill | £ 1,836 | £ 1,836 | |
Percentage of entity goodwill | 79.00% | 91.00% | |
MBNA Limited [Member] | |||
GOODWILL (Details) [Line Items] | |||
Goodwill | £ 302 | ||
Percentage of entity goodwill | 13.00% | ||
Motor Finance [member] | |||
GOODWILL (Details) [Line Items] | |||
Goodwill | £ 170 | £ 170 | |
Percentage of entity goodwill | 7.00% | 8.00% |
GOODWILL (Details) - Schedule o
GOODWILL (Details) - Schedule of Goodwill £ in Millions | 12 Months Ended | |
Dec. 31, 2017GBP (£) | ||
GOODWILL (Details) - Schedule of Goodwill [Line Items] | ||
Goodwill | £ 2,016 | |
Acquisition of businesses (note 22) | 302 | |
Impairment charged to the income statement (note 11) | (8) | |
Goodwill | 2,310 | |
Cost [Member] | ||
GOODWILL (Details) - Schedule of Goodwill [Line Items] | ||
Goodwill | 2,362 | [1] |
Goodwill | 2,664 | [1] |
Accumulated impairment losses [Member] | ||
GOODWILL (Details) - Schedule of Goodwill [Line Items] | ||
Goodwill | (346) | |
Goodwill | £ (354) | |
[1] | For acquisitions made prior to 1 January 2004, the date of transition to IFRS, cost is included net of amounts amortised up to 31 December 2003. |
VALUE OF IN-FORCE BUSINESS (Det
VALUE OF IN-FORCE BUSINESS (Details) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of value of in-force business [Abstract] | ||
Estimated Illiquidity Premium | 1.14% | 1.38% |
Acquired Value Of Non Participating Investment Contract-OEIC | £ 185 | £ 206 |
VALUE OF IN-FORCE BUSINESS (159
VALUE OF IN-FORCE BUSINESS (Details) - Schedule of Range of Yields and Other Key Assumptions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
Retail Price [Member] | |||
VALUE OF IN-FORCE BUSINESS (Details) - Schedule of Range of Yields and Other Key Assumptions [Line Items] | |||
Retail price inflation | 3.43% | 3.50% | |
Expense [Member] | |||
VALUE OF IN-FORCE BUSINESS (Details) - Schedule of Range of Yields and Other Key Assumptions [Line Items] | |||
Expense inflation | 3.67% | 3.73% | |
Bottom of range [member] | Value of In-Force Non-Annuity Business [Member] | |||
VALUE OF IN-FORCE BUSINESS (Details) - Schedule of Range of Yields and Other Key Assumptions [Line Items] | |||
Risk-free rate | [1] | 0.00% | 0.00% |
Bottom of range [member] | Value of In-Force Annuity Business [Member] | |||
VALUE OF IN-FORCE BUSINESS (Details) - Schedule of Range of Yields and Other Key Assumptions [Line Items] | |||
Risk-free rate | [1] | 1.14% | 1.38% |
Bottom of range [member] | Financial Options and Guarantees [Member] | |||
VALUE OF IN-FORCE BUSINESS (Details) - Schedule of Range of Yields and Other Key Assumptions [Line Items] | |||
Risk-free rate | [1] | 0.00% | 0.00% |
Top of range [member] | Value of In-Force Non-Annuity Business [Member] | |||
VALUE OF IN-FORCE BUSINESS (Details) - Schedule of Range of Yields and Other Key Assumptions [Line Items] | |||
Risk-free rate | [1] | 4.20% | 4.20% |
Top of range [member] | Value of In-Force Annuity Business [Member] | |||
VALUE OF IN-FORCE BUSINESS (Details) - Schedule of Range of Yields and Other Key Assumptions [Line Items] | |||
Risk-free rate | [1] | 5.34% | 5.58% |
Top of range [member] | Financial Options and Guarantees [Member] | |||
VALUE OF IN-FORCE BUSINESS (Details) - Schedule of Range of Yields and Other Key Assumptions [Line Items] | |||
Risk-free rate | [1] | 4.20% | 4.20% |
[1] | All risk-free rates are quoted as the range of rates implied by the relevant forward swap curve. |
VALUE OF IN-FORCE BUSINESS (160
VALUE OF IN-FORCE BUSINESS (Details) - Schedule of Value of In-Force Business - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
VALUE OF IN-FORCE BUSINESS (Details) - Schedule of Value of In-Force Business [Line Items] | ||
Total value of in-force business | £ 4,839 | £ 5,042 |
In-Force [Member] | ||
VALUE OF IN-FORCE BUSINESS (Details) - Schedule of Value of In-Force Business [Line Items] | ||
Acquired value of in-force non-participating investment contracts | 306 | 340 |
Value of in-force insurance and participating investment contracts | 4,533 | 4,702 |
Total value of in-force business | £ 4,839 | £ 5,042 |
VALUE OF IN-FORCE BUSINESS (161
VALUE OF IN-FORCE BUSINESS (Details) - Schedule of Acquired Value of In-Force Non-Participating Investment Contracts - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
VALUE OF IN-FORCE BUSINESS (Details) - Schedule of Acquired Value of In-Force Non-Participating Investment Contracts [Line Items] | |||
Balance | £ 5,042 | ||
Amortisation taken to income statement (note 11) | 2,370 | £ 2,380 | £ 2,112 |
Balance | 4,839 | 5,042 | |
Non-participating investment contracts [Member] | |||
VALUE OF IN-FORCE BUSINESS (Details) - Schedule of Acquired Value of In-Force Non-Participating Investment Contracts [Line Items] | |||
Balance | 340 | 377 | |
Amortisation taken to income statement (note 11) | (34) | (37) | |
Balance | £ 306 | £ 340 | £ 377 |
VALUE OF IN-FORCE BUSINESS (162
VALUE OF IN-FORCE BUSINESS (Details) - Schedule of Value of In-Force Insurance and Participating Investment Contracts - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
VALUE OF IN-FORCE BUSINESS (Details) - Schedule of Value of In-Force Insurance and Participating Investment Contracts [Line Items] | ||
Balance | £ 20,112 | |
Existing business: | ||
Balance | 15,447 | £ 20,112 |
In-Force Insurance and Participating Investment Contracts [Member] | ||
VALUE OF IN-FORCE BUSINESS (Details) - Schedule of Value of In-Force Insurance and Participating Investment Contracts [Line Items] | ||
Balance | 4,702 | 4,219 |
Exchange and other adjustments | (4) | 11 |
Movements in the year: | ||
Movements in the year | (165) | 472 |
Existing business: | ||
Balance | 4,533 | 4,702 |
In-Force Insurance and Participating Investment Contracts [Member] | New business [Member] | ||
Movements in the year: | ||
Movements in the year | 348 | 428 |
In-Force Insurance and Participating Investment Contracts [Member] | Expected return [Member] | ||
Movements in the year: | ||
Movements in the year | (318) | (210) |
In-Force Insurance and Participating Investment Contracts [Member] | Experience variances [Member] | ||
Movements in the year: | ||
Movements in the year | (226) | (137) |
In-Force Insurance and Participating Investment Contracts [Member] | Assumption changes [Member] | ||
Movements in the year: | ||
Movements in the year | (238) | 127 |
In-Force Insurance and Participating Investment Contracts [Member] | Economic variance [Member] | ||
Movements in the year: | ||
Movements in the year | £ 269 | £ 264 |
OTHER INTANGIBLE ASSETS (Detail
OTHER INTANGIBLE ASSETS (Details) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of intangible assets [text block] [Abstract] | ||
Brand names | £ 380 | £ 380 |
Purchased credit card relationships | £ 702 |
OTHER INTANGIBLE ASSETS (Det164
OTHER INTANGIBLE ASSETS (Details) - Schedule of Other Intangible Assets - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
OTHER INTANGIBLE ASSETS (Details) - Schedule of Other Intangible Assets [Line Items] | ||
Balance | £ 1,681 | |
Balance | 2,835 | £ 1,681 |
Acquisition of businesses (note 22) | 702 | |
Cost [Member] | ||
OTHER INTANGIBLE ASSETS (Details) - Schedule of Other Intangible Assets [Line Items] | ||
Balance | 6,386 | 6,033 |
Additions | 850 | 463 |
Disposals | (77) | (110) |
Balance | 7,861 | 6,386 |
Accumulated amortisation [Member] | ||
OTHER INTANGIBLE ASSETS (Details) - Schedule of Other Intangible Assets [Line Items] | ||
Balance | 4,705 | 4,195 |
Charge for the year | 392 | 582 |
Disposals | (71) | (72) |
Balance | 5,026 | 4,705 |
Brand names [member] | ||
OTHER INTANGIBLE ASSETS (Details) - Schedule of Other Intangible Assets [Line Items] | ||
Balance | 425 | |
Balance | 403 | 425 |
Brand names [member] | Cost [Member] | ||
OTHER INTANGIBLE ASSETS (Details) - Schedule of Other Intangible Assets [Line Items] | ||
Balance | 596 | 596 |
Balance | 596 | 596 |
Brand names [member] | Accumulated amortisation [Member] | ||
OTHER INTANGIBLE ASSETS (Details) - Schedule of Other Intangible Assets [Line Items] | ||
Balance | 171 | 149 |
Charge for the year | 22 | 22 |
Balance | 193 | 171 |
Core Deposit Intangible [Member] | ||
OTHER INTANGIBLE ASSETS (Details) - Schedule of Other Intangible Assets [Line Items] | ||
Balance | 13 | |
Balance | 13 | |
Core Deposit Intangible [Member] | Cost [Member] | ||
OTHER INTANGIBLE ASSETS (Details) - Schedule of Other Intangible Assets [Line Items] | ||
Balance | 2,770 | 2,770 |
Balance | 2,770 | 2,770 |
Core Deposit Intangible [Member] | Accumulated amortisation [Member] | ||
OTHER INTANGIBLE ASSETS (Details) - Schedule of Other Intangible Assets [Line Items] | ||
Balance | 2,757 | 2,460 |
Charge for the year | 13 | 297 |
Balance | 2,770 | 2,757 |
Purchased Credit Card Relationships [Member] | ||
OTHER INTANGIBLE ASSETS (Details) - Schedule of Other Intangible Assets [Line Items] | ||
Balance | 4 | |
Balance | 662 | 4 |
Acquisition of businesses (note 22) | 702 | |
Purchased Credit Card Relationships [Member] | Cost [Member] | ||
OTHER INTANGIBLE ASSETS (Details) - Schedule of Other Intangible Assets [Line Items] | ||
Balance | 315 | 315 |
Balance | 1,017 | 315 |
Purchased Credit Card Relationships [Member] | Accumulated amortisation [Member] | ||
OTHER INTANGIBLE ASSETS (Details) - Schedule of Other Intangible Assets [Line Items] | ||
Balance | 311 | 309 |
Charge for the year | 44 | 2 |
Balance | 355 | 311 |
Customer-related intangible assets [member] | ||
OTHER INTANGIBLE ASSETS (Details) - Schedule of Other Intangible Assets [Line Items] | ||
Balance | 39 | |
Balance | 19 | 39 |
Customer-related intangible assets [member] | Cost [Member] | ||
OTHER INTANGIBLE ASSETS (Details) - Schedule of Other Intangible Assets [Line Items] | ||
Balance | 538 | 538 |
Balance | 538 | 538 |
Customer-related intangible assets [member] | Accumulated amortisation [Member] | ||
OTHER INTANGIBLE ASSETS (Details) - Schedule of Other Intangible Assets [Line Items] | ||
Balance | 499 | 472 |
Charge for the year | 20 | 27 |
Balance | 519 | 499 |
Computer software [member] | ||
OTHER INTANGIBLE ASSETS (Details) - Schedule of Other Intangible Assets [Line Items] | ||
Balance | 1,200 | |
Balance | 1,751 | 1,200 |
Computer software [member] | Cost [Member] | ||
OTHER INTANGIBLE ASSETS (Details) - Schedule of Other Intangible Assets [Line Items] | ||
Balance | 2,167 | 1,814 |
Additions | 850 | 463 |
Disposals | (77) | (110) |
Balance | 2,940 | 2,167 |
Computer software [member] | Accumulated amortisation [Member] | ||
OTHER INTANGIBLE ASSETS (Details) - Schedule of Other Intangible Assets [Line Items] | ||
Balance | 967 | 805 |
Charge for the year | 293 | 234 |
Disposals | (71) | (72) |
Balance | £ 1,189 | £ 967 |
PROPERTY, PLANT AND EQUIPMEN165
PROPERTY, PLANT AND EQUIPMENT (Details) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Property Plant And Equipment And Investment Properties [Abstract] | ||
Rental income | £ 213 | £ 229 |
Direct operating expense from investment property | 24 | 26 |
Capital expenditure contracted for but not recognised | 21 | 65 |
Contingent rents recognised as income, classified as operating lease | 0 | 0 |
Expected future minimum sublease payments receivable under non-cancellable subleases, classified as operating lease | £ 71 | £ 109 |
PROPERTY, PLANT AND EQUIPMEN166
PROPERTY, PLANT AND EQUIPMENT (Details) - Schedule of Property, Plant and Equipment - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
PROPERTY, PLANT AND EQUIPMENT (Details) - Schedule of Property, Plant and Equipment [Line Items] | |||
Balance | £ 12,972 | ||
Depreciation charge for the year | 1,944 | £ 1,761 | £ 1,534 |
Expenditure on investment properties (see below) | 127 | 93 | |
Change in fair value of investment properties (note 7) | 230 | (83) | 416 |
Balance | 12,727 | 12,972 | |
Cost or valuation [Member] | |||
PROPERTY, PLANT AND EQUIPMENT (Details) - Schedule of Property, Plant and Equipment [Line Items] | |||
Balance | 18,485 | 17,239 | |
Exchange and other adjustments | (81) | 133 | |
Acquisition of businesses (note 22) | 6 | ||
Additions | 2,714 | 2,953 | |
Expenditure on investment properties (see below) | 209 | 344 | |
Change in fair value of investment properties (note 7) | 230 | (83) | |
Disposals | (4,477) | (2,101) | |
Balance | 17,086 | 18,485 | 17,239 |
Accumulated depreciation, amortisation and impairment [member] | |||
PROPERTY, PLANT AND EQUIPMENT (Details) - Schedule of Property, Plant and Equipment [Line Items] | |||
Balance | 5,513 | 4,260 | |
Exchange and other adjustments | (51) | 40 | |
Depreciation charge for the year | 1,944 | 1,761 | |
Disposals | (3,047) | (548) | |
Balance | 4,359 | 5,513 | 4,260 |
Investment property [member] | |||
PROPERTY, PLANT AND EQUIPMENT (Details) - Schedule of Property, Plant and Equipment [Line Items] | |||
Balance | 3,764 | ||
Balance | 3,699 | 3,764 | |
Investment property [member] | Cost or valuation [Member] | |||
PROPERTY, PLANT AND EQUIPMENT (Details) - Schedule of Property, Plant and Equipment [Line Items] | |||
Balance | 3,764 | 4,361 | |
Exchange and other adjustments | 13 | ||
Expenditure on investment properties (see below) | 209 | 344 | |
Change in fair value of investment properties (note 7) | 230 | (83) | |
Disposals | (504) | (871) | |
Balance | 3,699 | 3,764 | 4,361 |
Premises [Member] | |||
PROPERTY, PLANT AND EQUIPMENT (Details) - Schedule of Property, Plant and Equipment [Line Items] | |||
Balance | 1,217 | ||
Balance | 1,063 | 1,217 | |
Premises [Member] | Cost or valuation [Member] | |||
PROPERTY, PLANT AND EQUIPMENT (Details) - Schedule of Property, Plant and Equipment [Line Items] | |||
Balance | 2,550 | 2,589 | |
Exchange and other adjustments | (37) | 2 | |
Acquisition of businesses (note 22) | 3 | ||
Additions | 70 | 59 | |
Disposals | (795) | (100) | |
Balance | 1,791 | 2,550 | 2,589 |
Premises [Member] | Accumulated depreciation, amortisation and impairment [member] | |||
PROPERTY, PLANT AND EQUIPMENT (Details) - Schedule of Property, Plant and Equipment [Line Items] | |||
Balance | 1,333 | 1,247 | |
Exchange and other adjustments | (8) | (1) | |
Depreciation charge for the year | 125 | 136 | |
Disposals | (722) | (49) | |
Balance | 728 | 1,333 | 1,247 |
Equipment [Member] | |||
PROPERTY, PLANT AND EQUIPMENT (Details) - Schedule of Property, Plant and Equipment [Line Items] | |||
Balance | 3,294 | ||
Balance | 2,943 | 3,294 | |
Equipment [Member] | Cost or valuation [Member] | |||
PROPERTY, PLANT AND EQUIPMENT (Details) - Schedule of Property, Plant and Equipment [Line Items] | |||
Balance | 5,965 | 5,266 | |
Exchange and other adjustments | 6 | ||
Acquisition of businesses (note 22) | 3 | ||
Additions | 382 | 806 | |
Disposals | (1,282) | (113) | |
Balance | 5,068 | 5,965 | 5,266 |
Equipment [Member] | Accumulated depreciation, amortisation and impairment [member] | |||
PROPERTY, PLANT AND EQUIPMENT (Details) - Schedule of Property, Plant and Equipment [Line Items] | |||
Balance | 2,671 | 2,096 | |
Exchange and other adjustments | (9) | (8) | |
Depreciation charge for the year | 734 | 672 | |
Disposals | (1,271) | (89) | |
Balance | 2,125 | 2,671 | 2,096 |
Property, plant and equipment under operating leases [member] | |||
PROPERTY, PLANT AND EQUIPMENT (Details) - Schedule of Property, Plant and Equipment [Line Items] | |||
Balance | 4,697 | ||
Balance | 5,022 | 4,697 | |
Property, plant and equipment under operating leases [member] | Cost or valuation [Member] | |||
PROPERTY, PLANT AND EQUIPMENT (Details) - Schedule of Property, Plant and Equipment [Line Items] | |||
Balance | 6,206 | 5,023 | |
Exchange and other adjustments | (44) | 112 | |
Additions | 2,262 | 2,088 | |
Disposals | (1,896) | (1,017) | |
Balance | 6,528 | 6,206 | 5,023 |
Property, plant and equipment under operating leases [member] | Accumulated depreciation, amortisation and impairment [member] | |||
PROPERTY, PLANT AND EQUIPMENT (Details) - Schedule of Property, Plant and Equipment [Line Items] | |||
Balance | 1,509 | 917 | |
Exchange and other adjustments | (34) | 49 | |
Depreciation charge for the year | 1,085 | 953 | |
Disposals | (1,054) | (410) | |
Balance | £ 1,506 | £ 1,509 | £ 917 |
PROPERTY, PLANT AND EQUIPMEN167
PROPERTY, PLANT AND EQUIPMENT (Details) - Schedule of Expenditure on Investment Properties - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Expenditure on Investment Properties [Abstract] | ||
Acquisitions of new properties | £ 82 | £ 251 |
Additional expenditure on existing properties | 127 | 93 |
£ 209 | £ 344 |
PROPERTY, PLANT AND EQUIPMEN168
PROPERTY, PLANT AND EQUIPMENT (Details) - Schedule of Future Minimum Rentals Receivable under Non-Cancellable Operating Leases - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
PROPERTY, PLANT AND EQUIPMENT (Details) - Schedule of Future Minimum Rentals Receivable under Non-Cancellable Operating Leases [Line Items] | ||
Future minimum rentals receivable | £ 2,848 | £ 2,840 |
Within 1 Year [Member] | ||
PROPERTY, PLANT AND EQUIPMENT (Details) - Schedule of Future Minimum Rentals Receivable under Non-Cancellable Operating Leases [Line Items] | ||
Future minimum rentals receivable | 1,301 | 1,120 |
Within 1 to 5 Years [Member] | ||
PROPERTY, PLANT AND EQUIPMENT (Details) - Schedule of Future Minimum Rentals Receivable under Non-Cancellable Operating Leases [Line Items] | ||
Future minimum rentals receivable | 1,419 | 1,373 |
Over 5 Years [Member] | ||
PROPERTY, PLANT AND EQUIPMENT (Details) - Schedule of Future Minimum Rentals Receivable under Non-Cancellable Operating Leases [Line Items] | ||
Future minimum rentals receivable | £ 128 | £ 347 |
OTHER ASSETS (Details) - Schedu
OTHER ASSETS (Details) - Schedule of Other Assets - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Other Assets [Abstract] | ||
Assets arising from reinsurance contracts held (notes 31 and 33) | £ 602 | £ 714 |
Deferred acquisition and origination costs | 104 | 81 |
Settlement balances | 720 | 700 |
Corporate pension asset | 7,786 | 6,645 |
Investments in joint ventures and associates | 65 | 59 |
Other assets and prepayments | 4,260 | 4,556 |
Total other assets | £ 13,537 | £ 12,755 |
CUSTOMER DEPOSITS (Details)
CUSTOMER DEPOSITS (Details) - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
CUSTOMER DEPOSITS (Details) [Line Items] | ||
Deposits from customers | £ 418,124 | £ 415,460 |
Protected under UK Financial Services Compensation Scheme [Member] | ||
CUSTOMER DEPOSITS (Details) [Line Items] | ||
Deposits from customers | £ 220,855 | £ 219,106 |
CUSTOMER DEPOSITS (Details) - S
CUSTOMER DEPOSITS (Details) - Schedule of Customer Deposits - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
CUSTOMER DEPOSITS (Details) - Schedule of Customer Deposits [Line Items] | ||
Customer deposits | £ 418,124 | £ 415,460 |
Deposits from Customers [Member] | Non-Interest Bearing Account [Member] | ||
CUSTOMER DEPOSITS (Details) - Schedule of Customer Deposits [Line Items] | ||
Current Accounts | 70,444 | 61,804 |
Deposits from Customers [Member] | Interest Bearing Account [Member] | ||
CUSTOMER DEPOSITS (Details) - Schedule of Customer Deposits [Line Items] | ||
Current Accounts | 95,889 | 90,978 |
Deposits from Customers [Member] | Savings and investment account [Member] | ||
CUSTOMER DEPOSITS (Details) - Schedule of Customer Deposits [Line Items] | ||
Savings and investment accounts | 196,966 | 208,227 |
Deposits from Customers [Member] | Liabilities in respect of securities sold under repurchase agreements [Member] | ||
CUSTOMER DEPOSITS (Details) - Schedule of Customer Deposits [Line Items] | ||
Liabilities in respect of securities sold under repurchase agreements | 2,638 | 2,462 |
Deposits from Customers [Member] | Other Customer Deposits [Member] | ||
CUSTOMER DEPOSITS (Details) - Schedule of Customer Deposits [Line Items] | ||
Customer deposits | £ 52,187 | £ 51,989 |
TRADING AND OTHER FINANCIAL 172
TRADING AND OTHER FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS (Details) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Trading And Other Financial Liabilities At Fair Value Through Profit Or Loss [Abstract] | ||
Amount Contractually Payable On Debt Securities Held At Fair Value Through Profit Or Loss | £ 14,224 | £ 16,079 |
Difference Between The Balance Sheet Carrying Value And Amount Contractually Payable On Debt Securities Held At Fair Value Through Profit Or Loss | 6,412 | 6,656 |
Accumulated increase (decrease) in fair value of financial liability, attributable to changes in credit risk of liability | 147 | |
Increase (decrease) in fair value of financial liability, attributable to changes in credit risk of liability | £ 52 | £ 28 |
TRADING AND OTHER FINANCIAL 173
TRADING AND OTHER FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS (Details) - Schedule of Trading and Other Financial Liabilities and Fair Value Through Profit or Loss - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Trading and Other Financial Liabilities and Fair Value Through Profit or Loss [Abstract] | ||
Liabilities held at fair value through profit or loss | £ 7,815 | £ 9,425 |
Trading liabilities: | ||
Liabilities in respect of securities sold under repurchase agreements | 41,378 | 42,067 |
Other deposits | 381 | 530 |
Short positions in securities | 1,303 | 2,482 |
43,062 | 45,079 | |
Trading and other financial liabilities at fair value through profit or loss | £ 50,877 | £ 54,504 |
DEBT SECURITIES IN ISSUE (Detai
DEBT SECURITIES IN ISSUE (Details) - Schedule of Debt Securities in Issue - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Debt Securities in Issue [Abstract] | ||
Medium-term notes issued | £ 29,418 | £ 27,182 |
Covered bonds (note 18) | 26,132 | 30,521 |
Certificates of deposit issued | 9,999 | 8,077 |
Securitisation notes (note 18) | 3,660 | 7,253 |
Commercial paper | 3,241 | 3,281 |
Total debt securities in issue | £ 72,450 | £ 76,314 |
LIABILITIES ARISING FROM INS175
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) [Line Items] | |||
Actuarial gains (losses) arising from changes in financial assumptions, net defined benefit liability (asset) | £ 92 | £ (33) | |
Provisions | 345 | 390 | |
Adjustments for increase (decrease) in other liabilities | 136 | (363) | £ 1,349 |
Participating investment contracts [Member] | Scottish Widows [member] | |||
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) [Line Items] | |||
Additional Costs Of Providing Guaranteed Benefits | 2,800 | 2,700 | |
Participating investment contracts [Member] | Change in persistency assumptions [Member] | |||
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) [Line Items] | |||
Actuarial gains (losses) arising from changes in financial assumptions, net defined benefit liability (asset) | (237) | ||
Participating investment contracts [Member] | Change in current and future mortality and morbidity rates [Member] | |||
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) [Line Items] | |||
Actuarial gains (losses) arising from changes in financial assumptions, net defined benefit liability (asset) | 289 | ||
Participating investment contracts [Member] | Changes in expenses assumptions [Member] | |||
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) [Line Items] | |||
Actuarial gains (losses) arising from changes in financial assumptions, net defined benefit liability (asset) | £ (142) | ||
With-profit fund [Member] | |||
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) [Line Items] | |||
Percent of distributed profits | 90.00% | ||
Non-profit fund [Member] | Participating investment contracts [Member] | |||
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) [Line Items] | |||
Provisions | £ 35 | 82 | |
Current year [Member] | Participating investment contracts [Member] | |||
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) [Line Items] | |||
Adjustments for increase (decrease) in other current liabilities | 350 | 363 | |
Previously stated [member] | Participating investment contracts [Member] | |||
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) [Line Items] | |||
Adjustments for increase (decrease) in other liabilities | £ 13 | £ 3 |
LIABILITIES ARISING FROM INS176
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) - Schedule of Insurance Contracts - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | |
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) - Schedule of Insurance Contracts [Line Items] | |||
Insurance contracts | £ 103,413 | £ 94,390 | |
Gross amount arising from insurance contracts [member] | |||
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) - Schedule of Insurance Contracts [Line Items] | |||
Insurance contracts | 103,413 | 94,390 | |
Reinsurer's share of amount arising from insurance contracts [member] | |||
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) - Schedule of Insurance Contracts [Line Items] | |||
Insurance contracts | [1] | (576) | (685) |
Net [Member] | |||
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) - Schedule of Insurance Contracts [Line Items] | |||
Insurance contracts | 102,837 | 93,705 | |
Life insurance contracts [member] | Gross amount arising from insurance contracts [member] | |||
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) - Schedule of Insurance Contracts [Line Items] | |||
Insurance contracts | 102,830 | 93,777 | |
Life insurance contracts [member] | Gross amount arising from insurance contracts [member] | Insurance contracts [member] | |||
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) - Schedule of Insurance Contracts [Line Items] | |||
Insurance contracts | 89,157 | 79,793 | |
Life insurance contracts [member] | Gross amount arising from insurance contracts [member] | Participating investment contracts [Member] | |||
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) - Schedule of Insurance Contracts [Line Items] | |||
Insurance contracts | 13,673 | 13,984 | |
Life insurance contracts [member] | Reinsurer's share of amount arising from insurance contracts [member] | |||
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) - Schedule of Insurance Contracts [Line Items] | |||
Insurance contracts | [1] | (563) | (671) |
Life insurance contracts [member] | Reinsurer's share of amount arising from insurance contracts [member] | Insurance contracts [member] | |||
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) - Schedule of Insurance Contracts [Line Items] | |||
Insurance contracts | [1] | (563) | (671) |
Life insurance contracts [member] | Reinsurer's share of amount arising from insurance contracts [member] | Participating investment contracts [Member] | |||
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) - Schedule of Insurance Contracts [Line Items] | |||
Insurance contracts | [1] | ||
Life insurance contracts [member] | Net [Member] | |||
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) - Schedule of Insurance Contracts [Line Items] | |||
Insurance contracts | 102,267 | 93,106 | |
Life insurance contracts [member] | Net [Member] | Insurance contracts [member] | |||
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) - Schedule of Insurance Contracts [Line Items] | |||
Insurance contracts | 88,594 | 79,122 | |
Life insurance contracts [member] | Net [Member] | Participating investment contracts [Member] | |||
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) - Schedule of Insurance Contracts [Line Items] | |||
Insurance contracts | 13,673 | 13,984 | |
Non-life insurance contracts [member] | Gross amount arising from insurance contracts [member] | |||
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) - Schedule of Insurance Contracts [Line Items] | |||
Insurance contracts | 583 | 613 | |
Non-life insurance contracts [member] | Gross amount arising from insurance contracts [member] | Unearned premiums [Member] | |||
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) - Schedule of Insurance Contracts [Line Items] | |||
Unearned premiums | 358 | 404 | |
Non-life insurance contracts [member] | Gross amount arising from insurance contracts [member] | Claims outstanding [Member] | |||
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) - Schedule of Insurance Contracts [Line Items] | |||
Claims outstanding | 225 | 209 | |
Non-life insurance contracts [member] | Reinsurer's share of amount arising from insurance contracts [member] | |||
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) - Schedule of Insurance Contracts [Line Items] | |||
Insurance contracts | [1] | (13) | (14) |
Non-life insurance contracts [member] | Reinsurer's share of amount arising from insurance contracts [member] | Unearned premiums [Member] | |||
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) - Schedule of Insurance Contracts [Line Items] | |||
Unearned premiums | [1] | (13) | (14) |
Non-life insurance contracts [member] | Reinsurer's share of amount arising from insurance contracts [member] | Claims outstanding [Member] | |||
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) - Schedule of Insurance Contracts [Line Items] | |||
Claims outstanding | [1] | ||
Non-life insurance contracts [member] | Net [Member] | |||
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) - Schedule of Insurance Contracts [Line Items] | |||
Insurance contracts | 570 | 599 | |
Non-life insurance contracts [member] | Net [Member] | Unearned premiums [Member] | |||
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) - Schedule of Insurance Contracts [Line Items] | |||
Unearned premiums | 345 | 390 | |
Non-life insurance contracts [member] | Net [Member] | Claims outstanding [Member] | |||
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) - Schedule of Insurance Contracts [Line Items] | |||
Claims outstanding | £ 225 | £ 209 | |
[1] | Reinsurance balances are reported within other assets (note 27). |
LIABILITIES ARISING FROM INS177
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) - Schedule of Life Insurance and Participating Contract Liabilities - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) - Schedule of Life Insurance and Participating Contract Liabilities [Line Items] | |||
Balance | £ 103,413 | £ 94,390 | |
Insurance contracts [member] | |||
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) - Schedule of Life Insurance and Participating Contract Liabilities [Line Items] | |||
Balance | 89,157 | 79,793 | £ 66,122 |
New business | 4,154 | 4,422 | |
Changes in existing business | 5,224 | 9,214 | |
Change in liabilities charged to the income statement (note 10) | 9,378 | 13,636 | |
Exchange and other adjustments | (14) | 35 | |
Participating investment contracts [Member] | |||
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) - Schedule of Life Insurance and Participating Contract Liabilities [Line Items] | |||
Balance | 13,673 | 13,984 | 13,460 |
New business | 43 | 28 | |
Changes in existing business | (354) | 496 | |
Change in liabilities charged to the income statement (note 10) | (311) | 524 | |
Gross amount arising from insurance contracts [member] | |||
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) - Schedule of Life Insurance and Participating Contract Liabilities [Line Items] | |||
Balance | 102,830 | 93,777 | 79,582 |
New business | 4,197 | 4,450 | |
Changes in existing business | 4,870 | 9,710 | |
Change in liabilities charged to the income statement (note 10) | 9,067 | 14,160 | |
Exchange and other adjustments | (14) | 35 | |
Reinsurer's share of amount arising from insurance contracts [member] | |||
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) - Schedule of Life Insurance and Participating Contract Liabilities [Line Items] | |||
Balance | (563) | (671) | (629) |
New business | (21) | (5) | |
Changes in existing business | 129 | (37) | |
Change in liabilities charged to the income statement (note 10) | 108 | (42) | |
Net amount arising from insurance contracts [member] | |||
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) - Schedule of Life Insurance and Participating Contract Liabilities [Line Items] | |||
Balance | 102,267 | 93,106 | £ 78,953 |
New business | 4,176 | 4,445 | |
Changes in existing business | 4,999 | 9,673 | |
Change in liabilities charged to the income statement (note 10) | 9,175 | 14,118 | |
Exchange and other adjustments | £ (14) | £ 35 |
LIABILITIES ARISING FROM INS178
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) - Schedule of Liabilities for Insurance Contracts and Participating Investment Contracts - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) - Schedule of Liabilities for Insurance Contracts and Participating Investment Contracts [Line Items] | ||
Insurance contracts | £ 103,413 | £ 94,390 |
Participating investment contracts | 15,447 | 20,112 |
Discounted cash flow [member] | ||
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) - Schedule of Liabilities for Insurance Contracts and Participating Investment Contracts [Line Items] | ||
Insurance contracts | 89,157 | 79,793 |
Participating investment contracts | 13,673 | 13,984 |
Total | 102,830 | 93,777 |
Discounted cash flow [member] | With-profit fund [Member] | ||
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) - Schedule of Liabilities for Insurance Contracts and Participating Investment Contracts [Line Items] | ||
Insurance contracts | 8,946 | 9,147 |
Participating investment contracts | 8,481 | 8,860 |
Total | 17,427 | 18,007 |
Discounted cash flow [member] | Non-profit fund [Member] | ||
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) - Schedule of Liabilities for Insurance Contracts and Participating Investment Contracts [Line Items] | ||
Insurance contracts | 80,211 | 70,646 |
Participating investment contracts | 5,192 | 5,124 |
Total | £ 85,403 | £ 75,770 |
LIABILITIES ARISING FROM INS179
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) - Schedule of Provisions for Unearned Premiums - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Provisions for unearned premiums | |||
Gross provision at 1 January | £ 404 | £ 461 | |
Change in provisions | (2,165) | (2,374) | £ (4,837) |
Change in provision for unearned premiums charged to income statement | (46) | (57) | |
Gross provision at 31 December | 358 | 404 | £ 461 |
Reinsurers’ share | (13) | (14) | |
Net provision at 31 December | 345 | 390 | |
Increase [Member] | |||
Provisions for unearned premiums | |||
Change in provisions | 724 | 827 | |
Release [Member] | |||
Provisions for unearned premiums | |||
Change in provisions | £ (770) | £ (884) |
LIABILITIES ARISING FROM INS180
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) - Schedule of Insurance Claims Outstanding - GBP (£) £ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Claims outstanding | ||||
Increase/(decrease) in liabilities charged to the income statement | £ 136 | £ (363) | £ 1,349 | |
Net claims outstanding at 31 December | 103,413 | 94,390 | ||
Not expired at year end [Member] | Participating investment contracts [Member] | ||||
Claims outstanding | ||||
Gross claims outstanding at 1 January | 209 | 251 | ||
Cash paid for claims settled in the year | (321) | (408) | ||
Increase/(decrease) in liabilities charged to the income statement | [1] | 337 | 366 | |
16 | (42) | |||
Gross claims outstanding at 31 December | 225 | 209 | £ 251 | |
Net claims outstanding at 31 December | 225 | 209 | ||
Notified claims | 174 | 122 | ||
Incurred but not reported | £ 51 | £ 87 | ||
[1] | Of which an increase of 350 million (2016: 363 million) was in respect of current year claims and a decrease of 13 million (2016: an increase of 3 million) was in respect of prior year claims. |
LIFE INSURANCE SENSITIVITY A181
LIFE INSURANCE SENSITIVITY ANALYSIS (Details) - Schedule of Accounting Estimates and Judgements - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
Non-annuitant mortality and morbidity [Member] | Change in variable [Member] | |||
LIFE INSURANCE SENSITIVITY ANALYSIS (Details) - Schedule of Accounting Estimates and Judgements [Line Items] | |||
Change in variable | [1] | 5% reduction | |
Non-annuitant mortality and morbidity [Member] | Increase (reduction) in profit before tax [Member] | |||
LIFE INSURANCE SENSITIVITY ANALYSIS (Details) - Schedule of Accounting Estimates and Judgements [Line Items] | |||
Increase (decrease) in accounting estimate | [1] | £ 23 | £ 25 |
Non-annuitant mortality and morbidity [Member] | Increase (reduction) in equity [Member] | |||
LIFE INSURANCE SENSITIVITY ANALYSIS (Details) - Schedule of Accounting Estimates and Judgements [Line Items] | |||
Increase (decrease) in accounting estimate | [1] | £ 19 | 21 |
Annuitant mortality [Member] | Change in variable [Member] | |||
LIFE INSURANCE SENSITIVITY ANALYSIS (Details) - Schedule of Accounting Estimates and Judgements [Line Items] | |||
Change in variable | [2] | 5% reduction | |
Annuitant mortality [Member] | Increase (reduction) in profit before tax [Member] | |||
LIFE INSURANCE SENSITIVITY ANALYSIS (Details) - Schedule of Accounting Estimates and Judgements [Line Items] | |||
Increase (decrease) in accounting estimate | [2] | £ (221) | (287) |
Annuitant mortality [Member] | Increase (reduction) in equity [Member] | |||
LIFE INSURANCE SENSITIVITY ANALYSIS (Details) - Schedule of Accounting Estimates and Judgements [Line Items] | |||
Increase (decrease) in accounting estimate | [2] | £ (184) | (238) |
Lapse rates [Member] | Change in variable [Member] | |||
LIFE INSURANCE SENSITIVITY ANALYSIS (Details) - Schedule of Accounting Estimates and Judgements [Line Items] | |||
Change in variable | [3] | 10% reduction | |
Lapse rates [Member] | Increase (reduction) in profit before tax [Member] | |||
LIFE INSURANCE SENSITIVITY ANALYSIS (Details) - Schedule of Accounting Estimates and Judgements [Line Items] | |||
Increase (decrease) in accounting estimate | [3] | £ 75 | 48 |
Lapse rates [Member] | Increase (reduction) in equity [Member] | |||
LIFE INSURANCE SENSITIVITY ANALYSIS (Details) - Schedule of Accounting Estimates and Judgements [Line Items] | |||
Increase (decrease) in accounting estimate | [3] | £ 62 | 40 |
Future maintenance and investment expenses [Member] | Change in variable [Member] | |||
LIFE INSURANCE SENSITIVITY ANALYSIS (Details) - Schedule of Accounting Estimates and Judgements [Line Items] | |||
Change in variable | [4] | 10% reduction | |
Future maintenance and investment expenses [Member] | Increase (reduction) in profit before tax [Member] | |||
LIFE INSURANCE SENSITIVITY ANALYSIS (Details) - Schedule of Accounting Estimates and Judgements [Line Items] | |||
Increase (decrease) in accounting estimate | [4] | £ 289 | 318 |
Future maintenance and investment expenses [Member] | Increase (reduction) in equity [Member] | |||
LIFE INSURANCE SENSITIVITY ANALYSIS (Details) - Schedule of Accounting Estimates and Judgements [Line Items] | |||
Increase (decrease) in accounting estimate | [4] | £ 240 | 264 |
Risk-free rate [Member] | Change in variable [Member] | |||
LIFE INSURANCE SENSITIVITY ANALYSIS (Details) - Schedule of Accounting Estimates and Judgements [Line Items] | |||
Change in variable | [5] | 0.25% reduction | |
Risk-free rate [Member] | Increase (reduction) in profit before tax [Member] | |||
LIFE INSURANCE SENSITIVITY ANALYSIS (Details) - Schedule of Accounting Estimates and Judgements [Line Items] | |||
Increase (decrease) in accounting estimate | [5] | £ (40) | (74) |
Risk-free rate [Member] | Increase (reduction) in equity [Member] | |||
LIFE INSURANCE SENSITIVITY ANALYSIS (Details) - Schedule of Accounting Estimates and Judgements [Line Items] | |||
Increase (decrease) in accounting estimate | [5] | £ (33) | (62) |
Guaranteed annuity option take up [Member] | Change in variable [Member] | |||
LIFE INSURANCE SENSITIVITY ANALYSIS (Details) - Schedule of Accounting Estimates and Judgements [Line Items] | |||
Change in variable | [6] | 5% addition | |
Guaranteed annuity option take up [Member] | Increase (reduction) in profit before tax [Member] | |||
LIFE INSURANCE SENSITIVITY ANALYSIS (Details) - Schedule of Accounting Estimates and Judgements [Line Items] | |||
Increase (decrease) in accounting estimate | [6] | £ (6) | (12) |
Guaranteed annuity option take up [Member] | Increase (reduction) in equity [Member] | |||
LIFE INSURANCE SENSITIVITY ANALYSIS (Details) - Schedule of Accounting Estimates and Judgements [Line Items] | |||
Increase (decrease) in accounting estimate | [6] | £ (5) | (10) |
Equity investment volatility [Member] | Change in variable [Member] | |||
LIFE INSURANCE SENSITIVITY ANALYSIS (Details) - Schedule of Accounting Estimates and Judgements [Line Items] | |||
Change in variable | [7] | 1% addition | |
Equity investment volatility [Member] | Increase (reduction) in profit before tax [Member] | |||
LIFE INSURANCE SENSITIVITY ANALYSIS (Details) - Schedule of Accounting Estimates and Judgements [Line Items] | |||
Increase (decrease) in accounting estimate | [7] | £ (7) | (10) |
Equity investment volatility [Member] | Increase (reduction) in equity [Member] | |||
LIFE INSURANCE SENSITIVITY ANALYSIS (Details) - Schedule of Accounting Estimates and Judgements [Line Items] | |||
Increase (decrease) in accounting estimate | [7] | £ (6) | (8) |
Widening of credit default spreads on corporate bonds [Member] | Change in variable [Member] | |||
LIFE INSURANCE SENSITIVITY ANALYSIS (Details) - Schedule of Accounting Estimates and Judgements [Line Items] | |||
Change in variable | [8] | 0.25% addition | |
Widening of credit default spreads on corporate bonds [Member] | Increase (reduction) in profit before tax [Member] | |||
LIFE INSURANCE SENSITIVITY ANALYSIS (Details) - Schedule of Accounting Estimates and Judgements [Line Items] | |||
Increase (decrease) in accounting estimate | [8] | £ (235) | (200) |
Widening of credit default spreads on corporate bonds [Member] | Increase (reduction) in equity [Member] | |||
LIFE INSURANCE SENSITIVITY ANALYSIS (Details) - Schedule of Accounting Estimates and Judgements [Line Items] | |||
Increase (decrease) in accounting estimate | [8] | £ (195) | (166) |
Increase in illiquidity premia [Member] | Change in variable [Member] | |||
LIFE INSURANCE SENSITIVITY ANALYSIS (Details) - Schedule of Accounting Estimates and Judgements [Line Items] | |||
Change in variable | [9] | 0.10% addition | |
Increase in illiquidity premia [Member] | Increase (reduction) in profit before tax [Member] | |||
LIFE INSURANCE SENSITIVITY ANALYSIS (Details) - Schedule of Accounting Estimates and Judgements [Line Items] | |||
Increase (decrease) in accounting estimate | [9] | £ 145 | 152 |
Increase in illiquidity premia [Member] | Increase (reduction) in equity [Member] | |||
LIFE INSURANCE SENSITIVITY ANALYSIS (Details) - Schedule of Accounting Estimates and Judgements [Line Items] | |||
Increase (decrease) in accounting estimate | [9] | £ 120 | £ 126 |
[1] | This sensitivity shows the impact of reducing mortality and morbidity rates on non-annuity business to 95 per cent of the expected rate. | ||
[2] | This sensitivity shows the impact on the annuity and deferred annuity business of reducing mortality rates to 95 per cent of the expected rate. | ||
[3] | This sensitivity shows the impact of reducing lapse and surrender rates to 90 per cent of the expected rate. | ||
[4] | This sensitivity shows the impact of reducing maintenance expenses and investment expenses to 90 per cent of the expected rate. | ||
[5] | This sensitivity shows the impact on the value of in-force business, financial options and guarantee costs, statutory reserves and asset values of reducing the risk-free rate by 25 basis points. | ||
[6] | This sensitivity shows the impact of a flat 5 per cent addition to the expected rate. | ||
[7] | This sensitivity shows the impact of a flat 1 per cent addition to the expected rate. | ||
[8] | This sensitivity shows the impact of a 25 basis point increase in credit default spreads on corporate bonds and the corresponding reduction in market values. Swap curves, the risk-free rate and illiquidity premia are all assumed to be unchanged. | ||
[9] | This sensitivity shows the impact of a 10 basis point increase in the allowance for illiquidity premia. It assumes the overall spreads on assets are unchanged and hence market values are unchanged. Swap curves and the non-annuity risk-free rate are both assumed to be unchanged. The increased illiquidity premium increases the annuity risk-free rate. |
LIABILITIES ARISING FROM NON182
LIABILITIES ARISING FROM NON-PARTICIPATING INVESTMENT CONTRACTS (Details) - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
LIABILITIES ARISING FROM NON-PARTICIPATING INVESTMENT CONTRACTS (Details) [Line Items] | ||
Reinsurance assets | £ 602 | £ 714 |
Arising from non-participating investment contracts [Member] | ||
LIABILITIES ARISING FROM NON-PARTICIPATING INVESTMENT CONTRACTS (Details) [Line Items] | ||
Reinsurance assets | £ 26 | £ 29 |
LIABILITIES ARISING FROM NON183
LIABILITIES ARISING FROM NON-PARTICIPATING INVESTMENT CONTRACTS (Details) - Schedule of Liabilities Arising From Non-Participating Investment Contracts - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
LIABILITIES ARISING FROM NON-PARTICIPATING INVESTMENT CONTRACTS (Details) - Schedule of Liabilities Arising From Non-Participating Investment Contracts [Line Items] | ||
Balance | £ 20,112 | |
Balance | 15,447 | £ 20,112 |
Non-participating investment contracts [Member] | ||
LIABILITIES ARISING FROM NON-PARTICIPATING INVESTMENT CONTRACTS (Details) - Schedule of Liabilities Arising From Non-Participating Investment Contracts [Line Items] | ||
Balance | 20,112 | 22,777 |
New business | 608 | 560 |
Changes in existing business | (5,273) | (3,225) |
Balance | £ 15,447 | £ 20,112 |
OTHER LIABILITIES (Details) - S
OTHER LIABILITIES (Details) - Schedule of Other Liabilities - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
OTHER LIABILITIES (Details) - Schedule of Other Liabilities [Line Items] | ||
Settlement balances | £ 501 | £ 706 |
Unitholders’ interest in Open Ended Investment Companies | 14,480 | 22,947 |
Other creditors and accruals | 5,359 | 5,297 |
Total other liabilities | 20,730 | 29,193 |
Unallocated amounts [member] | ||
OTHER LIABILITIES (Details) - Schedule of Other Liabilities [Line Items] | ||
Unallocated surplus within insurance businesses | £ 390 | £ 243 |
RETIREMENT BENEFIT OBLIGATIONS
RETIREMENT BENEFIT OBLIGATIONS (Details) - GBP (£) £ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2014 | |
RETIREMENT BENEFIT OBLIGATIONS (Details) [Line Items] | ||||
Percentage of gross defined benefit pension assets | 95.00% | 94.00% | ||
Estimate of contributions expected to be paid to plan for next annual reporting period | £ 750 | |||
Assets | 812,109 | £ 817,793 | ||
£ 3,643 | £ 3,397 | |||
Actuarial assumption of discount rates | 2.59% | 2.76% | ||
Description of asset-liability matching strategies used by plan or entity to manage risk | At 31 December 2017 the asset-liability matching strategy mitigated98 per cent of the liability sensitivity to interest rate movements and 102 per cent of the liability sensitivity toinflation movements. Much of the residual interest rate sensitivity is mitigated through holdings of corporate and other debt securities. | |||
Employer contributions | £ 256 | £ 268 | £ 233 | |
Limited liability partnerships [Member] | ||||
RETIREMENT BENEFIT OBLIGATIONS (Details) [Line Items] | ||||
Assets | 5,500 | |||
Private limited companies [Member] | ||||
RETIREMENT BENEFIT OBLIGATIONS (Details) [Line Items] | ||||
Assets | £ 4,800 | |||
RPI [Member] | ||||
RETIREMENT BENEFIT OBLIGATIONS (Details) [Line Items] | ||||
Actuarial assumption of expected rates of inflation | 3.20% | 3.23% | ||
CPI [Member] | ||||
RETIREMENT BENEFIT OBLIGATIONS (Details) [Line Items] | ||||
Actuarial assumption of expected rates of inflation | 2.15% | 2.18% | ||
Aggregated measurement [member] | ||||
RETIREMENT BENEFIT OBLIGATIONS (Details) [Line Items] | ||||
Triennial Funding Valuation, Aggregate Funding Deficit | £ 7,300 | |||
Defined benefit plan funding level | 85.60% | 85.90% | ||
Triennial Funding Valuation, Aggregate Funding Deficit, Previous Valuation Date | £ 5,200 | |||
Triennial Funding Valuation, Deficit Contributions, 2018 | £ 412 | |||
Triennial Funding Valuation, Deficit Contributions, 2019 | 618 | |||
Triennial Funding Valuation, Deficit Contributions, 2020 | 798 | |||
Triennial Funding Valuation, Deficit Contributions, 2021 | 1,287 | |||
Triennial Funding Valuation, Deficit Contributions, 2022 to 2024 | £ 1,305 | |||
Healthcare premiums [Member] | ||||
RETIREMENT BENEFIT OBLIGATIONS (Details) [Line Items] | ||||
Percentage of reasonably possible increase in actuarial assumption | 6.81% | 6.84% | ||
Investment Grade [Member] | ||||
RETIREMENT BENEFIT OBLIGATIONS (Details) [Line Items] | ||||
£ 27,732 | £ 25,219 |
RETIREMENT BENEFIT OBLIGATIO186
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Retirement Benefit Charges to Income Statement - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Charge to the income statement | |||
Defined benefit plans | £ 369 | £ 287 | £ 315 |
Total charge to the income statement (note 11) | 625 | 555 | 548 |
Defined benefit pension schemes [Member] | |||
Charge to the income statement | |||
Defined benefit plans | 362 | 279 | 307 |
Other post-retirement benefit schemes [Member] | |||
Charge to the income statement | |||
Defined benefit plans | 7 | 8 | 8 |
Defined contribution pension schemes [Member] | |||
Charge to the income statement | |||
Defined benefit plans | £ 256 | £ 268 | £ 233 |
RETIREMENT BENEFIT OBLIGATIO187
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Retirement Benefits Recognised in Balance Sheet - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Retirement Benefits Recognised in Balance Sheet [Line Items] | ||
Defined benefit pension schemes | £ 723 | £ 342 |
Net amount recognised in the balance sheet [Member] | ||
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Retirement Benefits Recognised in Balance Sheet [Line Items] | ||
Retirement benefit assets | 723 | 342 |
Retirement benefit obligations | (358) | (822) |
Total amounts recognised in the balance sheet | 365 | (480) |
Defined benefit pension schemes | 509 | (244) |
Other post-retirement benefit schemes | £ (144) | £ (236) |
RETIREMENT BENEFIT OBLIGATIO188
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Retirement Benefits Recognized in Financial Statements - GBP (£) £ in Millions | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | |
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Retirement Benefits Recognized in Financial Statements [Line Items] | |||||
Defined benefit obligation | £ (44,384) | £ (45,822) | |||
Net amount recognised in the balance sheet | £ (236) | £ (236) | £ (200) | (144) | (236) |
At 1 January | (236) | (200) | |||
Current service cost | (295) | (257) | (302) | ||
Interest income (expense) | (1) | (40) | (43) | ||
Remeasurements: | |||||
Actuarial (losses) gains – financial assumptions | 92 | (33) | |||
Past service cost | 10 | ||||
Settlements | 3 | 6 | 6 | ||
Administrative costs paid | 10,181 | 10,253 | 10,550 | ||
Net defined benefit pension charge | 358 | 822 | |||
Exchange and other adjustments | (2) | ||||
At 31 December | (144) | (236) | (200) | ||
Active members [Member] | |||||
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Retirement Benefits Recognized in Financial Statements [Line Items] | |||||
Defined benefit obligation | (7,947) | (9,903) | |||
Deferred members [Member] | |||||
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Retirement Benefits Recognized in Financial Statements [Line Items] | |||||
Defined benefit obligation | (15,823) | (16,934) | |||
Pensioners [Member] | |||||
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Retirement Benefits Recognized in Financial Statements [Line Items] | |||||
Defined benefit obligation | (19,014) | (17,476) | |||
Dependants [Member] | |||||
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Retirement Benefits Recognized in Financial Statements [Line Items] | |||||
Defined benefit obligation | (1,600) | (1,509) | |||
Net amounts presented in the balance sheet [Member] | |||||
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Retirement Benefits Recognized in Financial Statements [Line Items] | |||||
Defined benefit obligation | (44,384) | (45,822) | |||
Fair value of scheme assets | 44,893 | 45,578 | |||
Net amount recognised in the balance sheet | 509 | (244) | 509 | (244) | |
At 1 January | (244) | ||||
Remeasurements: | |||||
At 31 December | 509 | (244) | |||
Net amount recognised in the balance sheet [Member] | |||||
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Retirement Benefits Recognized in Financial Statements [Line Items] | |||||
Net amount recognised in the balance sheet | (244) | (244) | 736 | 509 | (244) |
At 1 January | (244) | 736 | |||
Remeasurements: | |||||
Net defined benefit pension charge | (362) | (279) | |||
Actuarial (losses) gains on defined benefit obligation | (731) | (8,770) | |||
Return on plan assets | 1,267 | 7,455 | |||
Employer contributions | 580 | 623 | |||
Exchange and other adjustments | (1) | (9) | |||
At 31 December | 509 | (244) | 736 | ||
Movements in the defined benefit obligation [Member] | |||||
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Retirement Benefits Recognized in Financial Statements [Line Items] | |||||
Net amount recognised in the balance sheet | (45,822) | (45,822) | (36,903) | (44,384) | (45,822) |
At 1 January | (45,822) | (36,903) | |||
Current service cost | (295) | (257) | |||
Interest income (expense) | (1,241) | (1,401) | |||
Remeasurements: | |||||
Actuarial gains – experience | (347) | 535 | |||
Actuarial gains (losses) – demographic assumptions | 1,084 | 195 | |||
Actuarial (losses) gains – financial assumptions | (1,468) | (9,500) | |||
Benefits paid | 3,714 | 1,580 | |||
Past service cost | (14) | (20) | |||
Curtailments | (10) | ||||
Settlements | 15 | 12 | |||
Exchange and other adjustments | (63) | ||||
At 31 December | (44,384) | (45,822) | (36,903) | ||
Changes in the fair value of scheme assets [Member] | |||||
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Retirement Benefits Recognized in Financial Statements [Line Items] | |||||
Net amount recognised in the balance sheet | 45,578 | 45,578 | 37,639 | 44,893 | 45,578 |
At 1 January | 45,578 | 37,639 | |||
Interest income (expense) | 1,242 | 1,441 | |||
Remeasurements: | |||||
Benefits paid | £ (3,714) | £ (1,580) | |||
Settlements | (18) | (18) | |||
Administrative costs paid | (41) | (36) | |||
Return on plan assets | 1,267 | 7,455 | |||
Employer contributions | 580 | 623 | |||
Exchange and other adjustments | (1) | 54 | |||
At 31 December | £ 44,893 | £ 45,578 | £ 37,639 |
RETIREMENT BENEFIT OBLIGATIO189
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Composition of Retirement Scheme Assets - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | |
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Composition of Retirement Scheme Assets [Line Items] | |||
Equity instruments | £ 1,197 | £ 1,213 | |
Fixed interest government bonds | 34,708 | 48,714 | |
Corporate and other debt securities | 4,615 | 6,030 | |
Asset-backed securities | 40,901 | 55,311 | |
3,643 | 3,397 | ||
Property | 12,727 | 12,972 | |
Pooled investment vehicles | 17,380 | 16,422 | |
Retirement Scheme Assets [Member] | |||
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Composition of Retirement Scheme Assets [Line Items] | |||
Equity instruments | 851 | 1,114 | |
Fixed interest government bonds | [1] | 5,344 | 5,797 |
Index-linked government bonds | [1] | 17,439 | 14,359 |
Corporate and other debt securities | [1] | 6,903 | 7,464 |
Asset-backed securities | [1] | 121 | 99 |
29,807 | 27,719 | ||
Property | 544 | 497 | |
Pooled investment vehicles | 17,380 | 16,422 | |
Money market instruments, cash, derivatives and other assets and liabilities | (3,689) | (174) | |
At 31 December | 44,893 | 45,578 | |
Quoted [Member] | Retirement Scheme Assets [Member] | |||
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Composition of Retirement Scheme Assets [Line Items] | |||
Equity instruments | 846 | 1,114 | |
Fixed interest government bonds | [1] | 5,344 | 5,797 |
Index-linked government bonds | [1] | 17,439 | 14,359 |
Corporate and other debt securities | [1] | 6,903 | 7,464 |
Asset-backed securities | [1] | 121 | 99 |
29,807 | 27,719 | ||
Pooled investment vehicles | 3,937 | 3,577 | |
Money market instruments, cash, derivatives and other assets and liabilities | 1,501 | 1,462 | |
At 31 December | 36,091 | 33,872 | |
Unquoted [Member] | Retirement Scheme Assets [Member] | |||
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Composition of Retirement Scheme Assets [Line Items] | |||
Equity instruments | 5 | ||
Fixed interest government bonds | [1] | ||
Index-linked government bonds | [1] | ||
Corporate and other debt securities | [1] | ||
Asset-backed securities | [1] | ||
Property | 544 | 497 | |
Pooled investment vehicles | 13,443 | 12,845 | |
Money market instruments, cash, derivatives and other assets and liabilities | (5,190) | (1,636) | |
At 31 December | £ 8,802 | £ 11,706 | |
[1] | Of the total debt instruments, 27,732 million (31 December 2016: 25,219 million) were investment grade (credit ratings equal to or better than 'BBB'). |
RETIREMENT BENEFIT OBLIGATIO190
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Pension Scheme's Pooled Investment Vehicles - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Pension Scheme's Pooled Investment Vehicles [Line Items] | ||
Pooled investment vehicle | £ 17,380 | £ 16,422 |
Equity funds [Member] | ||
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Pension Scheme's Pooled Investment Vehicles [Line Items] | ||
Pooled investment vehicle | 2,669 | 2,883 |
Hedge and mutual funds [Member] | ||
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Pension Scheme's Pooled Investment Vehicles [Line Items] | ||
Pooled investment vehicle | 2,377 | 2,350 |
Liquidity funds [Member] | ||
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Pension Scheme's Pooled Investment Vehicles [Line Items] | ||
Pooled investment vehicle | 2,877 | 484 |
Bond and debt funds [Member] | ||
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Pension Scheme's Pooled Investment Vehicles [Line Items] | ||
Pooled investment vehicle | 1,830 | 3,383 |
Other [Member] | ||
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Pension Scheme's Pooled Investment Vehicles [Line Items] | ||
Pooled investment vehicle | £ 7,627 | £ 7,322 |
RETIREMENT BENEFIT OBLIGATIO191
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Defined Benefit Pension Expense - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Defined Benefit Pension Expense [Line Items] | |||
Current service cost | £ 295 | £ 257 | £ 302 |
Net interest amount | (1) | (40) | (43) |
Past service credits and curtailments | 10 | ||
Settlements | 3 | 6 | 6 |
Past service cost – plan amendments | 14 | 20 | 12 |
Plan administration costs incurred during the year | 41 | 36 | 30 |
Total defined benefit pension expense | 369 | 287 | 315 |
Defined benefit pension schemes [Member] | |||
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Defined Benefit Pension Expense [Line Items] | |||
Total defined benefit pension expense | £ 362 | £ 279 | £ 307 |
RETIREMENT BENEFIT OBLIGATIO192
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Principal Actuarial and Financial Assumptions Used in Valuations of Defined Benefit Pension Schemes | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Principal Actuarial and Financial Assumptions Used in Valuations of Defined Benefit Pension Schemes [Line Items] | ||
Discount rate | 2.59% | 2.76% |
Rate of inflation: | ||
Rate of salary increases | 0.00% | 0.00% |
Weighted-average rate of increase for pensions in payment | 2.73% | 2.74% |
RPI [Member] | ||
Rate of inflation: | ||
Price Index | 3.20% | 3.23% |
CPI [Member] | ||
Rate of inflation: | ||
Price Index | 2.15% | 2.18% |
Life expectancy for member aged 60, on the valuation date [Member] | Men [Member] | ||
Life expectancy for member aged 60, on the valuation date: | ||
Life Expectancy | 27 years 328 days | 28 years 36 days |
Life expectancy for member aged 60, on the valuation date [Member] | Women [Member] | ||
Life expectancy for member aged 60, on the valuation date: | ||
Life Expectancy | 29 years 6 months | 30 years 109 days |
Life expectancy for member aged 60, 15 years after valuation date [Member] | Men [Member] | ||
Life expectancy for member aged 60, on the valuation date: | ||
Life Expectancy | 28 years 328 days | 29 years 109 days |
Life expectancy for member aged 60, 15 years after valuation date [Member] | Women [Member] | ||
Life expectancy for member aged 60, on the valuation date: | ||
Life Expectancy | 30 years 255 days | 31 years 255 days |
RETIREMENT BENEFIT OBLIGATIO193
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Possible Alternative Assumptions Used in Valuations of Defined Benefit Pension Schemes - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
Actuarial assumption of expected rates of inflation [member] | Increase of 0.1 percent [Member] | |||
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Possible Alternative Assumptions Used in Valuations of Defined Benefit Pension Schemes [Line Items] | |||
Increase (decrease) in the income statement charge | [1] | £ 16 | £ 19 |
Increase (decrease) in the net defined benefit pension scheme liability | [1] | 472 | 491 |
Actuarial assumption of expected rates of inflation [member] | Decrease of 0.1 percent [Member] | |||
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Possible Alternative Assumptions Used in Valuations of Defined Benefit Pension Schemes [Line Items] | |||
Increase (decrease) in the income statement charge | [1] | (15) | (14) |
Increase (decrease) in the net defined benefit pension scheme liability | [1] | (453) | (458) |
Actuarial assumption of discount rates [member] | Increase of 0.1 percent [Member] | |||
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Possible Alternative Assumptions Used in Valuations of Defined Benefit Pension Schemes [Line Items] | |||
Increase (decrease) in the income statement charge | [2] | (28) | (30) |
Increase (decrease) in the net defined benefit pension scheme liability | [2] | (773) | (821) |
Actuarial assumption of discount rates [member] | Decrease of 0.1 percent [Member] | |||
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Possible Alternative Assumptions Used in Valuations of Defined Benefit Pension Schemes [Line Items] | |||
Increase (decrease) in the income statement charge | [2] | 26 | 30 |
Increase (decrease) in the net defined benefit pension scheme liability | [2] | 794 | 847 |
Actuarial assumption of expected life expectancy of members [Member] | Increase of one year [Member] | |||
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Possible Alternative Assumptions Used in Valuations of Defined Benefit Pension Schemes [Line Items] | |||
Increase (decrease) in the income statement charge | 44 | 42 | |
Increase (decrease) in the net defined benefit pension scheme liability | 1,404 | 1,213 | |
Actuarial assumption of expected life expectancy of members [Member] | Decrease of one year [Member] | |||
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Possible Alternative Assumptions Used in Valuations of Defined Benefit Pension Schemes [Line Items] | |||
Increase (decrease) in the income statement charge | (41) | (37) | |
Increase (decrease) in the net defined benefit pension scheme liability | £ (1,357) | £ (1,178) | |
[1] | At 31 December 2017, the assumed rate of RPI inflation is 3.20 per cent and CPI inflation 2.15 per cent (2016: RPI 3.23 per cent and CPI 2.18 per cent). | ||
[2] | At 31 December 2017, the assumed discount rate is 2.59 per cent (2016: 2.76 per cent). |
RETIREMENT BENEFIT OBLIGATIO194
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Weighted Average Duration of Defined Benefit Pension Obligations and Distribution and Timing of Benefit Payments £ in Millions | 12 Months Ended | |
Dec. 31, 2017GBP (£) | Dec. 31, 2016GBP (£) | |
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Weighted Average Duration of Defined Benefit Pension Obligations and Distribution and Timing of Benefit Payments [Line Items] | ||
Duration of the defined benefit obligation | 19 | 20 |
Not later than twelve months [Member] | ||
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Weighted Average Duration of Defined Benefit Pension Obligations and Distribution and Timing of Benefit Payments [Line Items] | ||
Benefits expected to be paid | £ 1,174 | £ 1,639 |
Later than one year and not later than two years [member] | ||
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Weighted Average Duration of Defined Benefit Pension Obligations and Distribution and Timing of Benefit Payments [Line Items] | ||
Benefits expected to be paid | 1,235 | 1,180 |
Later than two years and not later than five years [member] | ||
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Weighted Average Duration of Defined Benefit Pension Obligations and Distribution and Timing of Benefit Payments [Line Items] | ||
Benefits expected to be paid | 4,089 | 3,971 |
Later than five years and not later than ten years [member] | ||
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Weighted Average Duration of Defined Benefit Pension Obligations and Distribution and Timing of Benefit Payments [Line Items] | ||
Benefits expected to be paid | 8,082 | 8,030 |
Later than ten years and not later than fifteen years [member] | ||
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Weighted Average Duration of Defined Benefit Pension Obligations and Distribution and Timing of Benefit Payments [Line Items] | ||
Benefits expected to be paid | 9,360 | 9,453 |
Later than fifteen years and not later than twenty five years [Member] | ||
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Weighted Average Duration of Defined Benefit Pension Obligations and Distribution and Timing of Benefit Payments [Line Items] | ||
Benefits expected to be paid | 19,044 | 20,268 |
Later than twenty five years and not later than thirty five years [Member] | ||
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Weighted Average Duration of Defined Benefit Pension Obligations and Distribution and Timing of Benefit Payments [Line Items] | ||
Benefits expected to be paid | 16,735 | 18,831 |
Later than thirty five years and not later than forty five years [Member] | ||
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Weighted Average Duration of Defined Benefit Pension Obligations and Distribution and Timing of Benefit Payments [Line Items] | ||
Benefits expected to be paid | 11,156 | 13,589 |
Later than forty five years [Member] | ||
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Weighted Average Duration of Defined Benefit Pension Obligations and Distribution and Timing of Benefit Payments [Line Items] | ||
Benefits expected to be paid | £ 5,219 | £ 7,809 |
RETIREMENT BENEFIT OBLIGATIO195
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Movements in Oher Post-Retirement Benefits Obligation - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Movements in Oher Post-Retirement Benefits Obligation [Line Items] | |||
At 1 January | £ (236) | £ (200) | |
Actuarial (loss) gain | 92 | (33) | |
Insurance premiums paid | 7 | 7 | |
Charge for the year | (369) | (287) | £ (315) |
Exchange and other adjustments | (2) | ||
At 31 December | (144) | (236) | (200) |
Other post-retirement benefit schemes [Member] | |||
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Movements in Oher Post-Retirement Benefits Obligation [Line Items] | |||
Charge for the year | £ (7) | £ (8) | £ (8) |
DEFERRED TAX (Details)
DEFERRED TAX (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
DEFERRED TAX (Details) [Line Items] | |||
Applicable tax rate | 19.25% | 20.00% | 20.25% |
Decrease (Increase) In Accumulated Deferred Tax Recognised In Income Due To ChangeIn Tax Rate | £ 9 | ||
Deferred Tax Impact of Re-Measurement in Other Comprehensive Income | 22 | ||
Deferred tax assets in respect of trading losses carried forward | 4,034 | £ 4,298 | |
Deferred Tax Assets Not Recognised Trading Losses Carried Forward | 470 | 636 | |
Deferred Tax Assets Not Recognised Capital Losses Carried Forward | 76 | 92 | |
UK Tax Losses | 404 | ||
Deferred Tax Assets Not Recognised Unrelieved Foreign Tax Carried Forward | £ 46 | 46 | |
Current year [Member] | |||
DEFERRED TAX (Details) [Line Items] | |||
Applicable tax rate | 19.00% | ||
1 April 2020 [Member] | |||
DEFERRED TAX (Details) [Line Items] | |||
Applicable tax rate | 17.00% | ||
20 Years [Member] | |||
DEFERRED TAX (Details) [Line Items] | |||
Deferred Tax Assets Not Recognised Trading Losses Carried Forward | £ 35 | 63 | |
Deferred Tax Assets, Expiration Term | 20 years | ||
No Expiration [Member] | |||
DEFERRED TAX (Details) [Line Items] | |||
Deferred Tax Assets Not Recognised Trading Losses Carried Forward | £ 56 | £ 56 | |
Finance Act 2016 [Member] | |||
DEFERRED TAX (Details) [Line Items] | |||
Tax rate effect from change in tax rate | 25.00% |
DEFERRED TAX (Details) - Schedu
DEFERRED TAX (Details) - Schedule of Statutory Position and Tax Disclosure - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
DEFERRED TAX (Details) - Schedule of Statutory Position and Tax Disclosure [Line Items] | ||
Deferred tax assets | £ 2,284 | £ 2,706 |
Statutory position [Member] | ||
DEFERRED TAX (Details) - Schedule of Statutory Position and Tax Disclosure [Line Items] | ||
Deferred tax assets | 2,284 | 2,706 |
Asset at 31 December | 2,284 | 2,706 |
Tax disclosure [Member] | ||
DEFERRED TAX (Details) - Schedule of Statutory Position and Tax Disclosure [Line Items] | ||
Deferred tax assets | 4,989 | 5,634 |
Deferred tax liabilities | (2,705) | (2,928) |
Asset at 31 December | £ 2,284 | £ 2,706 |
DEFERRED TAX (Details) - Moveme
DEFERRED TAX (Details) - Movements in deferred tax liabilities and assets - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
DEFERRED TAX (Details) - Movements in deferred tax liabilities and assets [Line Items] | ||
Deferred Tax Assets | £ 2,706 | |
Deferred Tax Assets | 2,284 | £ 2,706 |
Long-term assurance business [Member] | ||
DEFERRED TAX (Details) - Movements in deferred tax liabilities and assets [Line Items] | ||
Deferred Tax Liabilities | (914) | (641) |
(Charge) credit to the income statement | 115 | (273) |
Deferred Tax Liabilities | (799) | (914) |
Acquisition Fair Value [Member] | ||
DEFERRED TAX (Details) - Movements in deferred tax liabilities and assets [Line Items] | ||
Deferred Tax Liabilities | (798) | (891) |
(Charge) credit to the income statement | 76 | 93 |
Impact of acquisitions and disposals | (157) | |
Deferred Tax Liabilities | (879) | (798) |
Defined benefit pension schemes [Member] | ||
DEFERRED TAX (Details) - Movements in deferred tax liabilities and assets [Line Items] | ||
Deferred Tax Liabilities | (85) | (174) |
(Charge) credit to the income statement | 199 | 1,876 |
(Charge) credit to other comprehensive income | (295) | (1,787) |
Deferred Tax Liabilities | (181) | (85) |
Derivative liabilities [Member] | ||
DEFERRED TAX (Details) - Movements in deferred tax liabilities and assets [Line Items] | ||
Deferred Tax Liabilities | (643) | (395) |
(Charge) credit to the income statement | (139) | 232 |
(Charge) credit to other comprehensive income | 283 | (466) |
Exchange and other adjustments | (14) | |
Deferred Tax Liabilities | (499) | (643) |
Available For Sale Financial Assets [Member] | ||
DEFERRED TAX (Details) - Movements in deferred tax liabilities and assets [Line Items] | ||
Deferred Tax Liabilities | (234) | (11) |
(Charge) credit to the income statement | (40) | 23 |
(Charge) credit to other comprehensive income | 67 | (246) |
Deferred Tax Liabilities | (207) | (234) |
Other temporary differences [member] | ||
DEFERRED TAX (Details) - Movements in deferred tax liabilities and assets [Line Items] | ||
Deferred Tax Liabilities | (254) | (506) |
(Charge) credit to the income statement | 116 | 252 |
Impact of acquisitions and disposals | (2) | |
Deferred Tax Liabilities | (140) | (254) |
Total [Member] | ||
DEFERRED TAX (Details) - Movements in deferred tax liabilities and assets [Line Items] | ||
Deferred Tax Liabilities | (2,928) | (2,618) |
(Charge) credit to the income statement | 327 | 2,203 |
(Charge) credit to other comprehensive income | 55 | (2,499) |
Exchange and other adjustments | (14) | |
Impact of acquisitions and disposals | (159) | |
Deferred Tax Liabilities | (2,705) | (2,928) |
Tax Losses [Member] | ||
DEFERRED TAX (Details) - Movements in deferred tax liabilities and assets [Line Items] | ||
Deferred Tax Assets | 4,298 | 4,890 |
(Charge) credit to the income statement | (264) | (592) |
Deferred Tax Assets | 4,034 | 4,298 |
Property, plant and equipment [member] | ||
DEFERRED TAX (Details) - Movements in deferred tax liabilities and assets [Line Items] | ||
Deferred Tax Assets | 969 | 1,089 |
(Charge) credit to the income statement | (226) | (120) |
Deferred Tax Assets | 743 | 969 |
Defined benefit pension schemes [Member] | ||
DEFERRED TAX (Details) - Movements in deferred tax liabilities and assets [Line Items] | ||
Deferred Tax Assets | 228 | 102 |
(Charge) credit to the income statement | (287) | (1,981) |
(Charge) credit to other comprehensive income | 149 | 2,107 |
Deferred Tax Assets | 90 | 228 |
Provisions [Member] | ||
DEFERRED TAX (Details) - Movements in deferred tax liabilities and assets [Line Items] | ||
Deferred Tax Assets | 40 | 28 |
(Charge) credit to the income statement | (7) | 12 |
(Charge) credit to other comprehensive income | 25 | |
Deferred Tax Assets | 58 | 40 |
Share-based payment arrangements [member] | ||
DEFERRED TAX (Details) - Movements in deferred tax liabilities and assets [Line Items] | ||
Deferred Tax Assets | 61 | 91 |
(Charge) credit to the income statement | 7 | (17) |
Other (charge) credit to equity | (17) | (13) |
Deferred Tax Assets | 51 | 61 |
Other temporary differences [member] | ||
DEFERRED TAX (Details) - Movements in deferred tax liabilities and assets [Line Items] | ||
Deferred Tax Assets | 38 | 395 |
(Charge) credit to the income statement | (28) | (357) |
Impact of acquisitions and disposals | 3 | |
Deferred Tax Assets | 13 | 38 |
Total [Member] | ||
DEFERRED TAX (Details) - Movements in deferred tax liabilities and assets [Line Items] | ||
Deferred Tax Assets | 5,634 | 6,595 |
(Charge) credit to the income statement | (805) | (3,055) |
(Charge) credit to other comprehensive income | 174 | 2,107 |
Other (charge) credit to equity | (17) | (13) |
Impact of acquisitions and disposals | 3 | |
Deferred Tax Assets | £ 4,989 | £ 5,634 |
OTHER PROVISIONS (Details)
OTHER PROVISIONS (Details) £ in Millions | 3 Months Ended | 12 Months Ended | 216 Months Ended | |||
Dec. 31, 2017GBP (£) | Dec. 31, 2017GBP (£) | Dec. 31, 2016GBP (£) | Dec. 31, 2015GBP (£) | Dec. 31, 2014GBP (£) | Dec. 31, 2017GBP (£) | |
OTHER PROVISIONS (Details) [Line Items] | ||||||
Other provisions | £ 5,546 | £ 5,546 | £ 5,218 | £ 5,546 | ||
Increase (decrease) in other provisions | £ (2,165) | (2,374) | £ (4,837) | |||
Payments in respect of settlements, reimbursement rights | £ 217 | |||||
Percentage of Insurance Paid Out So Far | 53.00% | |||||
Description of Reactive Complaint Sensitivities | For every additional 1,000 reactive complaints per week above11,000 on average through to the industry deadline of August 2019, the Group would expect an additional charge of £200 million. | |||||
Other Provisions, Maximum PPI Exposure Re MBNA | £ 240 | |||||
Provision For Insurance Business Germany | 639 | |||||
Other Provisions, Charge In Year Re HBOS Reading | £ 100 | |||||
Other Provisions, Progress Re HBOS Reading | The review is ongoing and at 12 February 2018, the Grouphad made offers to 57 customers, which represents more than 80 per cent of the customers in review. | |||||
Average Vacant Lease Period | 5 years | |||||
Restructuring provision | 104 | £ 104 | 239 | £ 104 | ||
Legal Action [Member] | ||||||
OTHER PROVISIONS (Details) [Line Items] | ||||||
Unused provision reversed, other provisions | 1,339 | |||||
Additional provisions, other provisions | 865 | |||||
Mis-selling of packaged bank accounts [Member] | ||||||
OTHER PROVISIONS (Details) [Line Items] | ||||||
Increase (decrease) through transfers and other changes, other provisions | 245 | |||||
Increase through adjustments arising from passage of time, other provisions | 750 | |||||
TSB Banking Group plc [Member] | ||||||
OTHER PROVISIONS (Details) [Line Items] | ||||||
Unused provision reversed, other provisions | 622 | |||||
Additional provisions, other provisions | £ 665 | |||||
Payment Protection Insurance [Member] | ||||||
OTHER PROVISIONS (Details) [Line Items] | ||||||
Other provisions | 2,778 | 2,778 | 2,608 | £ 2,778 | ||
Increase (decrease) in other provisions | 600 | £ 1,300 | ||||
Total Payment Protection Insurance To Date | 18,675 | |||||
Description of Average Number of Complaints Per Week PPI | The remaining provision is consistent with an average of 11,000 complaints per week (previously 9,000) through to the industrydeadline of August 2019, in line with the average experience over the last nine months. | |||||
Number of PPI Policies Sold Since 2000 | 16,000,000 | |||||
Management Fees and Activities [Member] | ||||||
OTHER PROVISIONS (Details) [Line Items] | ||||||
Increase (decrease) in other provisions | £ 245 | |||||
Total Provision To Date Arrears Handling | £ 642 | |||||
Impacted Customers | 590,000 | |||||
Historical Regulatory Breaches [Member] | ||||||
OTHER PROVISIONS (Details) [Line Items] | ||||||
Other provisions | 4,070 | £ 4,070 | 3,947 | £ 4,070 | ||
Relating to the Transitional Service Agreement [Member] | ||||||
OTHER PROVISIONS (Details) [Line Items] | ||||||
Unused provision reversed, other provisions | 2,438 | |||||
Relating to the Transitional Service Agreement [Member] | Payment Protection Insurance [Member] | ||||||
OTHER PROVISIONS (Details) [Line Items] | ||||||
Payments in respect of settlements, reimbursement rights | 1,470 | |||||
Other regulatory provisions [Member] | ||||||
OTHER PROVISIONS (Details) [Line Items] | ||||||
Other provisions | 1,292 | 1,292 | £ 1,339 | 1,292 | ||
Increase (decrease) in other provisions | 865 | |||||
Other regulatory provisions [Member] | Legal Action [Member] | ||||||
OTHER PROVISIONS (Details) [Line Items] | ||||||
Other provisions | 1,292 | 1,292 | 1,292 | |||
Other Miscellaneous Provisions [Member] | ||||||
OTHER PROVISIONS (Details) [Line Items] | ||||||
Other Provisions, Closing Balance, Asbestos Claims | £ 32 | £ 32 | £ 32 |
OTHER PROVISIONS (Details) - Sc
OTHER PROVISIONS (Details) - Schedule of Assumptions for Other Provisions - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
OTHER PROVISIONS (Details) - Schedule of Assumptions for Other Provisions [Line Items] | |||
Balance | £ 5,218 | ||
Charge for the year | (2,165) | £ (2,374) | £ (4,837) |
Balance | 5,546 | 5,218 | |
Provision for credit commitments [member] | |||
OTHER PROVISIONS (Details) - Schedule of Assumptions for Other Provisions [Line Items] | |||
Balance | 56 | ||
Exchange and other adjustments | (26) | ||
Acquisition of businesses (note 22) | 9 | ||
Charge for the year | (9) | ||
Balance | 30 | 56 | |
Payment Protection Insurance [Member] | |||
OTHER PROVISIONS (Details) - Schedule of Assumptions for Other Provisions [Line Items] | |||
Balance | 2,608 | ||
Acquisition of businesses (note 22) | 527 | ||
Provisions applied | (1,657) | ||
Charge for the year | 1,300 | ||
Balance | 2,778 | 2,608 | |
Other regulatory provisions [Member] | |||
OTHER PROVISIONS (Details) - Schedule of Assumptions for Other Provisions [Line Items] | |||
Balance | 1,339 | ||
Exchange and other adjustments | 16 | ||
Provisions applied | (928) | ||
Charge for the year | 865 | ||
Balance | 1,292 | 1,339 | |
Vacant leasehold property [Member] | |||
OTHER PROVISIONS (Details) - Schedule of Assumptions for Other Provisions [Line Items] | |||
Balance | 51 | ||
Exchange and other adjustments | 9 | ||
Provisions applied | (23) | ||
Charge for the year | 19 | ||
Balance | 56 | 51 | |
Other [Member] | |||
OTHER PROVISIONS (Details) - Schedule of Assumptions for Other Provisions [Line Items] | |||
Balance | 1,164 | ||
Exchange and other adjustments | 139 | ||
Acquisition of businesses (note 22) | 92 | ||
Provisions applied | (252) | ||
Charge for the year | 247 | ||
Balance | 1,390 | 1,164 | |
Total [Member] | |||
OTHER PROVISIONS (Details) - Schedule of Assumptions for Other Provisions [Line Items] | |||
Balance | 5,218 | ||
Exchange and other adjustments | 138 | ||
Acquisition of businesses (note 22) | 628 | ||
Provisions applied | (2,860) | ||
Charge for the year | 2,422 | ||
Balance | £ 5,546 | £ 5,218 |
SUBORDINATED LIABILITIES (Detai
SUBORDINATED LIABILITIES (Details) - GBP (£) £ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
SUBORDINATED LIABILITIES (Details) [Line Items] | ||||
£ 1,008 | [1] | £ 7,885 | ||
Subordinated liabilities | £ 17,922 | 19,831 | £ 23,312 | |
Undated subordinated liabilities [Member] | Primary Capital Undated Floating Rate Notes Series 1 [Member] | ||||
SUBORDINATED LIABILITIES (Details) [Line Items] | ||||
Subordinated liabilities | 101 | |||
Undated subordinated liabilities [Member] | Primary Capital Undated Floating Rate Notes Series 2 [Member] | ||||
SUBORDINATED LIABILITIES (Details) [Line Items] | ||||
Subordinated liabilities | 142 | |||
Undated subordinated liabilities [Member] | Primary Capital Undated Floating Rate Notes Series 3 [Member] | ||||
SUBORDINATED LIABILITIES (Details) [Line Items] | ||||
Subordinated liabilities | 110 | |||
Dated subordinated liabilities [Member] | 13% Subordinated Fixed to Fixed Rate Notes 2021 callable 2016 [Member] | ||||
SUBORDINATED LIABILITIES (Details) [Line Items] | ||||
Subordinated liabilities | 244 | |||
Dated subordinated liabilities [Member] | 10.125% Subordinated Fixed to Fixed Rate Notes 2021 callable 2016 [Member] | ||||
SUBORDINATED LIABILITIES (Details) [Line Items] | ||||
Subordinated liabilities | 233 | |||
Dated subordinated liabilities [Member] | 11.875% Subordinated Fixed to Fixed Rate Notes 2021 callable 2016 [Member] | ||||
SUBORDINATED LIABILITIES (Details) [Line Items] | ||||
Subordinated liabilities | 960 | |||
Dated subordinated liabilities [Member] | 10.75% Subordinated Fixed to Fixed Rate Notes 2021 callable 2016 [Member] | ||||
SUBORDINATED LIABILITIES (Details) [Line Items] | ||||
Subordinated liabilities | 466 | |||
Dated subordinated liabilities [Member] | 9.875% Subordinated Fixed to Fixed Rate Notes 2021 callable 2016 [Member] | ||||
SUBORDINATED LIABILITIES (Details) [Line Items] | ||||
Subordinated liabilities | £ 456 | |||
[1] | The repurchases and redemptions resulted in cash outflows of 1,008 million. |
SUBORDINATED LIABILITIES (De202
SUBORDINATED LIABILITIES (Details) - Schedule of Movement in Subordinated Liabilities - GBP (£) £ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | |||
SUBORDINATED LIABILITIES (Details) - Schedule of Movement in Subordinated Liabilities [Line Items] | ||||
Balance | £ 19,831 | £ 23,312 | ||
Balance | 17,922 | 19,831 | ||
Issued during the year | [1] | 1,061 | ||
Repurchases and redemptions during the year | (1,008) | [2] | (7,885) | |
Foreign exchange movements | (785) | 2,751 | ||
Other movements (all non-cash) | (116) | 321 | ||
Preference shares [member] | ||||
SUBORDINATED LIABILITIES (Details) - Schedule of Movement in Subordinated Liabilities [Line Items] | ||||
Balance | 864 | 980 | ||
Balance | 813 | 864 | ||
Issued during the year | [1] | |||
Repurchases and redemptions during the year | [2] | |||
Foreign exchange movements | (43) | 127 | ||
Other movements (all non-cash) | (8) | 76 | ||
Preferred securities [Member] | ||||
SUBORDINATED LIABILITIES (Details) - Schedule of Movement in Subordinated Liabilities [Line Items] | ||||
Balance | 4,134 | 3,748 | ||
Balance | 3,690 | 4,134 | ||
Issued during the year | [1] | |||
Repurchases and redemptions during the year | [2] | (237) | ||
Foreign exchange movements | (221) | 511 | ||
Other movements (all non-cash) | 14 | 57 | ||
Undated subordinated liabilities [Member] | ||||
SUBORDINATED LIABILITIES (Details) - Schedule of Movement in Subordinated Liabilities [Line Items] | ||||
Balance | 599 | 965 | ||
Balance | 565 | 599 | ||
Issued during the year | [1] | |||
Repurchases and redemptions during the year | [2] | |||
Foreign exchange movements | (34) | 166 | ||
Other movements (all non-cash) | (57) | |||
Dated subordinated liabilities [Member] | ||||
SUBORDINATED LIABILITIES (Details) - Schedule of Movement in Subordinated Liabilities [Line Items] | ||||
Balance | 14,234 | 14,009 | ||
Balance | 12,854 | 14,234 | ||
Issued during the year | [1] | 1,061 | ||
Repurchases and redemptions during the year | [2] | (771) | ||
Foreign exchange movements | (487) | 1,854 | ||
Other movements (all non-cash) | £ (122) | 380 | ||
Enhanced capital notes [Member] | ||||
SUBORDINATED LIABILITIES (Details) - Schedule of Movement in Subordinated Liabilities [Line Items] | ||||
Balance | 3,610 | |||
Issued during the year | [1] | |||
Foreign exchange movements | 93 | |||
Other movements (all non-cash) | (135) | |||
Tender offers and redemptions [Member] | ||||
SUBORDINATED LIABILITIES (Details) - Schedule of Movement in Subordinated Liabilities [Line Items] | ||||
Repurchases and redemptions during the year | [3] | (3,568) | ||
Tender offers and redemptions [Member] | Preference shares [member] | ||||
SUBORDINATED LIABILITIES (Details) - Schedule of Movement in Subordinated Liabilities [Line Items] | ||||
Repurchases and redemptions during the year | [3] | |||
Tender offers and redemptions [Member] | Preferred securities [Member] | ||||
SUBORDINATED LIABILITIES (Details) - Schedule of Movement in Subordinated Liabilities [Line Items] | ||||
Repurchases and redemptions during the year | [3] | |||
Tender offers and redemptions [Member] | Undated subordinated liabilities [Member] | ||||
SUBORDINATED LIABILITIES (Details) - Schedule of Movement in Subordinated Liabilities [Line Items] | ||||
Repurchases and redemptions during the year | [3] | |||
Tender offers and redemptions [Member] | Dated subordinated liabilities [Member] | ||||
SUBORDINATED LIABILITIES (Details) - Schedule of Movement in Subordinated Liabilities [Line Items] | ||||
Repurchases and redemptions during the year | [3] | |||
Tender offers and redemptions [Member] | Enhanced capital notes [Member] | ||||
SUBORDINATED LIABILITIES (Details) - Schedule of Movement in Subordinated Liabilities [Line Items] | ||||
Repurchases and redemptions during the year | [3] | (3,568) | ||
Other [Member] | ||||
SUBORDINATED LIABILITIES (Details) - Schedule of Movement in Subordinated Liabilities [Line Items] | ||||
Repurchases and redemptions during the year | [3] | (4,046) | ||
Other [Member] | Preference shares [member] | ||||
SUBORDINATED LIABILITIES (Details) - Schedule of Movement in Subordinated Liabilities [Line Items] | ||||
Repurchases and redemptions during the year | [3] | (319) | ||
Other [Member] | Preferred securities [Member] | ||||
SUBORDINATED LIABILITIES (Details) - Schedule of Movement in Subordinated Liabilities [Line Items] | ||||
Repurchases and redemptions during the year | [3] | (182) | ||
Other [Member] | Undated subordinated liabilities [Member] | ||||
SUBORDINATED LIABILITIES (Details) - Schedule of Movement in Subordinated Liabilities [Line Items] | ||||
Repurchases and redemptions during the year | [3] | (475) | ||
Other [Member] | Dated subordinated liabilities [Member] | ||||
SUBORDINATED LIABILITIES (Details) - Schedule of Movement in Subordinated Liabilities [Line Items] | ||||
Repurchases and redemptions during the year | [3] | (3,070) | ||
Other [Member] | Enhanced capital notes [Member] | ||||
SUBORDINATED LIABILITIES (Details) - Schedule of Movement in Subordinated Liabilities [Line Items] | ||||
Repurchases and redemptions during the year | [3] | |||
[1] | 4.65% Subordinated Fixed Rate Notes 2026 (US$1,500 million). | |||
[2] | The repurchases and redemptions resulted in cash outflows of 1,008 million. | |||
[3] | In total, the tender offers, repurchases and redemptions resulted from cash outflows of 7,885 million. |
SUBORDINATED LIABILITIES (De203
SUBORDINATED LIABILITIES (Details) - Disclosure of repurchases and redemptions duing the year - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
SUBORDINATED LIABILITIES (Details) - Disclosure of repurchases and redemptions duing the year [Line Items] | ||||
Subordinated liabilities | £ 17,922 | £ 19,831 | £ 23,312 | |
Repurchases and redemptions during the year [Member] | 7.627% Fixed to Floating Rate Guaranteed Non-voting Non-cumulative Preferred Securities [Member] | ||||
SUBORDINATED LIABILITIES (Details) - Disclosure of repurchases and redemptions duing the year [Line Items] | ||||
Subordinated liabilities | 163 | |||
Repurchases and redemptions during the year [Member] | 4.385% Step-up Perpetual Capital Securities callable 2017 (€750 million) [Member] | ||||
SUBORDINATED LIABILITIES (Details) - Disclosure of repurchases and redemptions duing the year [Line Items] | ||||
Subordinated liabilities | 74 | |||
Repurchases and redemptions during the year [Member] | Preferred securities [Member] | ||||
SUBORDINATED LIABILITIES (Details) - Disclosure of repurchases and redemptions duing the year [Line Items] | ||||
Subordinated liabilities | 237 | |||
Repurchases and redemptions during the year [Member] | Subordinated Callable Notes 2017 [Member] | ||||
SUBORDINATED LIABILITIES (Details) - Disclosure of repurchases and redemptions duing the year [Line Items] | ||||
Subordinated liabilities | 771 | |||
Repurchases and redemptions during the year [Member] | Dated subordinated liabilities [Member] | ||||
SUBORDINATED LIABILITIES (Details) - Disclosure of repurchases and redemptions duing the year [Line Items] | ||||
Subordinated liabilities | £ 771 | |||
Other repurchases and redemptions during the year [Member] | Preferred securities [Member] | ||||
SUBORDINATED LIABILITIES (Details) - Disclosure of repurchases and redemptions duing the year [Line Items] | ||||
Subordinated liabilities | 182 | |||
Other repurchases and redemptions during the year [Member] | Dated subordinated liabilities [Member] | ||||
SUBORDINATED LIABILITIES (Details) - Disclosure of repurchases and redemptions duing the year [Line Items] | ||||
Subordinated liabilities | 3,070 | |||
Other repurchases and redemptions during the year [Member] | 6.267% Non-Cumulative Callable Fixed to Floating Rate Preference shares callable 2016 [Member] | ||||
SUBORDINATED LIABILITIES (Details) - Disclosure of repurchases and redemptions duing the year [Line Items] | ||||
Subordinated liabilities | 319 | |||
Other repurchases and redemptions during the year [Member] | 4.939% Non-voting Non-cumulative Perpetual Preferred Securities [Member] | ||||
SUBORDINATED LIABILITIES (Details) - Disclosure of repurchases and redemptions duing the year [Line Items] | ||||
Subordinated liabilities | 32 | |||
Other repurchases and redemptions during the year [Member] | 7.286% Perpetual Regulatory Tier One Securities (Series A) [Member] | ||||
SUBORDINATED LIABILITIES (Details) - Disclosure of repurchases and redemptions duing the year [Line Items] | ||||
Subordinated liabilities | 150 | |||
Other repurchases and redemptions during the year [Member] | 7.5% Undated Subordinated Step-up Notes [Member] | ||||
SUBORDINATED LIABILITIES (Details) - Disclosure of repurchases and redemptions duing the year [Line Items] | ||||
Subordinated liabilities | 5 | |||
Other repurchases and redemptions during the year [Member] | 4.25% Subordinated Undated Instruments [Member] | ||||
SUBORDINATED LIABILITIES (Details) - Disclosure of repurchases and redemptions duing the year [Line Items] | ||||
Subordinated liabilities | 7 | |||
Other repurchases and redemptions during the year [Member] | Floating Rate Primary Capital Notes [Member] | ||||
SUBORDINATED LIABILITIES (Details) - Disclosure of repurchases and redemptions duing the year [Line Items] | ||||
Subordinated liabilities | 108 | |||
Other repurchases and redemptions during the year [Member] | Primary Capital Undated Floating Rate Notes [Member] | ||||
SUBORDINATED LIABILITIES (Details) - Disclosure of repurchases and redemptions duing the year [Line Items] | ||||
Subordinated liabilities | [1] | 353 | ||
Other repurchases and redemptions during the year [Member] | 5.125% Undated subordinated Step-up Notes callable 2016 [Member] | ||||
SUBORDINATED LIABILITIES (Details) - Disclosure of repurchases and redemptions duing the year [Line Items] | ||||
Subordinated liabilities | 2 | |||
Other repurchases and redemptions during the year [Member] | Undated subordinated liabilities [Member] | ||||
SUBORDINATED LIABILITIES (Details) - Disclosure of repurchases and redemptions duing the year [Line Items] | ||||
Subordinated liabilities | 475 | |||
Other repurchases and redemptions during the year [Member] | Subordinated Fixed to Fixed Rate Notes 2021 callable 2016 [Member] | ||||
SUBORDINATED LIABILITIES (Details) - Disclosure of repurchases and redemptions duing the year [Line Items] | ||||
Subordinated liabilities | [2] | 2,359 | ||
Other repurchases and redemptions during the year [Member] | Callable Floating Rate Subordinated Notes 2016 [Member] | ||||
SUBORDINATED LIABILITIES (Details) - Disclosure of repurchases and redemptions duing the year [Line Items] | ||||
Subordinated liabilities | 329 | |||
Other repurchases and redemptions during the year [Member] | Subordinated Callable Notes 2016 [Member] | ||||
SUBORDINATED LIABILITIES (Details) - Disclosure of repurchases and redemptions duing the year [Line Items] | ||||
Subordinated liabilities | £ 382 | |||
[1] | Comprising Series 1 (101 million), Series 2 (142 million), Series 3 (110 million). | |||
[2] | Comprising notes with the following coupon rates: 13% (244 million), 10.125% (233 million), 11.875% (960 million), 10.75% (466 million), 9.875% (456 million). |
SHARE CAPITAL (Details)
SHARE CAPITAL (Details) - £ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of issued capital [text block] [Abstract] | |||
Number of shares issued and fully paid | 518,000,000 | 0 | 0 |
Proportion of voting rights held by non-controlling interests | 100.00% | ||
Number of shares redesignated as ordinary shares | 80,921,051 | ||
Par Value Of Redesignated Ordinary Shares (in Pounds per share) | £ 0.10 |
SHARE CAPITAL (Details) - Sched
SHARE CAPITAL (Details) - Schedule of Issued and Fully Paid Share Capital - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
SHARE CAPITAL (Details) - Schedule of Issued and Fully Paid Share Capital [Line Items] | |||
Balance | £ 7,146 | £ 7,146 | |
Redesignation of limited voting ordinary shares (see below) | 80,921,051 | ||
Balance | £ 7,197 | £ 7,146 | £ 7,146 |
Ordinary shares [member] | |||
SHARE CAPITAL (Details) - Schedule of Issued and Fully Paid Share Capital [Line Items] | |||
Balance | 71,373,735,357 | 71,373,735,357 | 71,373,735,357 |
Balance | £ 7,138 | £ 7,138 | £ 7,138 |
Issued under employee share schemes | 518,293,181 | ||
Issued under employee share schemes | £ 51 | ||
Redesignation of limited voting ordinary shares (see below) | 80,921,051 | ||
Redesignation of limited voting ordinary shares (see below) | £ 8 | ||
Balance | 71,972,949,589 | 71,373,735,357 | 71,373,735,357 |
Balance | £ 7,197 | £ 7,138 | £ 7,138 |
Limited voting [Member] | |||
SHARE CAPITAL (Details) - Schedule of Issued and Fully Paid Share Capital [Line Items] | |||
Balance | 80,921,051 | 80,921,051 | 80,921,051 |
Balance | £ 8 | £ 8 | £ 8 |
Redesignation of limited voting ordinary shares (see below) | (80,921,051) | ||
Redesignation of limited voting ordinary shares (see below) | £ (8) | ||
Balance | 80,921,051 | 80,921,051 | |
Balance | £ 8 | £ 8 |
SHARE PREMIUM ACCOUNT (Details)
SHARE PREMIUM ACCOUNT (Details) - GBP (£) £ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
SHARE PREMIUM ACCOUNT (Details) [Line Items] | ||||
Redemption Of Preference Shares | [1] | £ 210 | £ 131 | |
5.92% Non-cumulative Fixed to Floating Rate Preference shares callable 2015 [Member] | 6.0884% Non-Cumulative Fixed to Floating Rate Preference Shares callable 2015 [Member] | ||||
SHARE PREMIUM ACCOUNT (Details) [Line Items] | ||||
Redemption Of Preference Shares | £ 131 | |||
Sterling equivalent [Member] | 6.267% Non-Cumulative Callable Fixed to Floating Rate Preference Shares callable 2016 [Member] | ||||
SHARE PREMIUM ACCOUNT (Details) [Line Items] | ||||
Redemption Of Preference Shares | £ 210 | |||
[1] | During the year ended 31 December 2016, the Company redeemed all of its outstanding 6.267% Non-cumulative Fixed to Floating Rate Callable US Dollar Preference Shares at their combined sterling equivalent par value of £210 million. These preference shares had been accounted for as subordinated liabilities. On redemption an amount of £210 million was transferred from the distributable merger reserve to the share premium account (2015: £131 million in respect of the redemption of the outstanding 6.0884% Non-cumulative Fixed to Floating Rate Preference Shares and 5.92% Non-cumulative Fixed to Floating Rate Preference Shares). |
SHARE PREMIUM ACCOUNT (Detai207
SHARE PREMIUM ACCOUNT (Details) - Schedule of Share Premium Account - GBP (£) £ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Schedule of Share Premium Account [Abstract] | ||||
At 1 January | £ 17,622 | £ 17,412 | £ 17,281 | |
Issued under employee share schemes | 12 | |||
Redemption of preference shares | [1] | 210 | 131 | |
At 31 December | £ 17,634 | £ 17,622 | £ 17,412 | |
[1] | During the year ended 31 December 2016, the Company redeemed all of its outstanding 6.267% Non-cumulative Fixed to Floating Rate Callable US Dollar Preference Shares at their combined sterling equivalent par value of £210 million. These preference shares had been accounted for as subordinated liabilities. On redemption an amount of £210 million was transferred from the distributable merger reserve to the share premium account (2015: £131 million in respect of the redemption of the outstanding 6.0884% Non-cumulative Fixed to Floating Rate Preference Shares and 5.92% Non-cumulative Fixed to Floating Rate Preference Shares). |
OTHER RESERVES (Details) - Sche
OTHER RESERVES (Details) - Schedule of Other Reserves - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Other Reserves [Abstract] | |||
Merger reserve | £ 7,766 | £ 7,766 | £ 7,976 |
Capital redemption reserve | 4,115 | 4,115 | 4,115 |
Revaluation reserve in respect of available-for-sale financial assets | 685 | 759 | (438) |
Cash flow hedging reserve | 1,405 | 2,136 | 727 |
Foreign currency translation reserve | (156) | (124) | (120) |
At 31 December | £ 13,815 | £ 14,652 | £ 12,260 |
OTHER RESERVES (Details) - S209
OTHER RESERVES (Details) - Schedule of Merger Reserve - GBP (£) £ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Merger reserve | ||||
At 1 January | £ 7,766 | £ 7,976 | ||
Redemption of preference shares (note 40) | [1] | 210 | £ 131 | |
At 31 December | 7,766 | 7,766 | 7,976 | |
Hedges of net investment in foreign operations [member] | ||||
Merger reserve | ||||
At 1 January | 7,766 | 7,976 | 8,107 | |
Redemption of preference shares (note 40) | (210) | (131) | ||
At 31 December | £ 7,766 | £ 7,766 | £ 7,976 | |
[1] | During the year ended 31 December 2016, the Company redeemed all of its outstanding 6.267% Non-cumulative Fixed to Floating Rate Callable US Dollar Preference Shares at their combined sterling equivalent par value of £210 million. These preference shares had been accounted for as subordinated liabilities. On redemption an amount of £210 million was transferred from the distributable merger reserve to the share premium account (2015: £131 million in respect of the redemption of the outstanding 6.0884% Non-cumulative Fixed to Floating Rate Preference Shares and 5.92% Non-cumulative Fixed to Floating Rate Preference Shares). |
OTHER RESERVES (Details) - S210
OTHER RESERVES (Details) - Schedule of Movement in Other Reserves - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
OTHER RESERVES (Details) - Schedule of Movement in Other Reserves [Line Items] | |||
Balance | £ 759 | £ (438) | |
Balance | 2,136 | 727 | |
Income statement transfers (note 5) | (650) | (557) | £ (956) |
Balance | (124) | (120) | |
Foreign currency gains on net investment hedges (tax: £nil) | (8) | (1) | |
Balance | 685 | 759 | (438) |
Balance | 1,405 | 2,136 | 727 |
Balance | (156) | (124) | (120) |
Revaluation surplus [member] | |||
OTHER RESERVES (Details) - Schedule of Movement in Other Reserves [Line Items] | |||
Balance | 759 | (438) | (67) |
Balance | 759 | (438) | |
Revaluation surplus [member] | Held-to-maturity investments, category [member] | |||
OTHER RESERVES (Details) - Schedule of Movement in Other Reserves [Line Items] | |||
Balance | 1,127 | ||
Adjustment on transfer from held-to-maturity portfolio | 1,544 | ||
Deferred tax | (417) | ||
Balance | 1,127 | ||
Revaluation surplus [member] | Financial assets available-for-sale, category [member] | |||
OTHER RESERVES (Details) - Schedule of Movement in Other Reserves [Line Items] | |||
Balance | 328 | (334) | |
Deferred tax | (26) | (25) | (18) |
Change in fair value of available-for-sale financial assets | 303 | 356 | (318) |
Current tax | (4) | (3) | 2 |
Balance | 273 | 328 | (334) |
Reserve of cash flow hedges [member] | |||
OTHER RESERVES (Details) - Schedule of Movement in Other Reserves [Line Items] | |||
Balance | 2,136 | 727 | 1,139 |
Balance | 1,405 | 2,136 | 727 |
Reserve of cash flow hedges [member] | Fair value hedges [member] | |||
OTHER RESERVES (Details) - Schedule of Movement in Other Reserves [Line Items] | |||
Deferred tax | 121 | (610) | (186) |
Balance | 1,822 | 351 | |
Change in fair value of hedging derivatives | (363) | 2,432 | 537 |
Balance | (242) | 1,822 | 351 |
Reserve of cash flow hedges [member] | Income statement transfers [Member] | |||
OTHER RESERVES (Details) - Schedule of Movement in Other Reserves [Line Items] | |||
Deferred tax | 162 | 144 | 193 |
Income statement transfers (note 5) | (651) | (557) | (956) |
Reserve of change in value of foreign currency basis spreads [member] | |||
OTHER RESERVES (Details) - Schedule of Movement in Other Reserves [Line Items] | |||
Balance | (124) | (120) | (78) |
Currency translation differences arising in the year | (21) | (110) | (59) |
Foreign currency gains on net investment hedges (tax: £nil) | (11) | 106 | 17 |
Balance | (156) | (124) | (120) |
Income statement transfers [Member] | Revaluation surplus [member] | Other disposals of assets [member] | |||
OTHER RESERVES (Details) - Schedule of Movement in Other Reserves [Line Items] | |||
Balance | (431) | (49) | |
Deferred tax | 93 | 196 | 3 |
Current tax | (52) | (1) | |
Disposals (note 9) | (446) | (575) | (51) |
Balance | (353) | (431) | (49) |
Income statement transfers [Member] | Revaluation surplus [member] | Entity's total for impairment of financial assets [member] | |||
OTHER RESERVES (Details) - Schedule of Movement in Other Reserves [Line Items] | |||
Balance | 173 | 12 | |
Deferred tax | 8 | ||
Impairment | 6 | 173 | 4 |
Balance | 6 | 173 | 12 |
Total [Member] | Reserve of cash flow hedges [member] | Income statement transfers [Member] | |||
OTHER RESERVES (Details) - Schedule of Movement in Other Reserves [Line Items] | |||
Income statement transfers (note 5) | £ (489) | £ (413) | £ (763) |
RETAINED PROFITS (Details)
RETAINED PROFITS (Details) - Retained earnings [member] - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
RETAINED PROFITS (Details) [Line Items] | |||
Financial Liabilities on Which Cumulative Fair Value Movements Relating To Own Credit Derecognised | £ 3 | ||
Treasury shares | 611 | £ 495 | £ 740 |
Treasury shares held | £ 861 | £ 730 | £ 943 |
RETAINED PROFITS (Details) - Sc
RETAINED PROFITS (Details) - Schedule of Retained Profits - GBP (£) £ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
RETAINED PROFITS (Details) - Schedule of Retained Profits [Line Items] | ||||
At 1 January | £ 3,250 | |||
Profit for the year | 3,807 | £ 2,063 | £ 860 | |
Post-retirement defined benefit scheme remeasurements | 482 | (1,028) | (215) | |
Gains and losses attributable to own credit risk (net of tax) | 10,984 | 17,305 | 2,835 | |
Movement in treasury shares | (411) | (175) | (816) | |
Value of employee services: | ||||
At 31 December | 4,905 | 3,250 | ||
Retained earnings [member] | ||||
RETAINED PROFITS (Details) - Schedule of Retained Profits [Line Items] | ||||
At 1 January | 3,250 | 4,416 | 5,692 | |
Profit for the year | 3,807 | 2,063 | 860 | |
Dividends paid | [1] | (2,284) | (2,014) | (1,070) |
Distributions on other equity instruments (net of tax) | (313) | (321) | (314) | |
Post-retirement defined benefit scheme remeasurements | 482 | (1,028) | (215) | |
Gains and losses attributable to own credit risk (net of tax) | [2] | (40) | ||
Movement in treasury shares | (411) | (175) | (816) | |
Value of employee services: | ||||
Share option schemes | 82 | 141 | 107 | |
Other employee award schemes | 332 | 168 | 172 | |
At 31 December | £ 4,905 | £ 3,250 | £ 4,416 | |
[1] | Net of a credit in respect of unclaimed dividends written-back in accordance with the Company's Articles of Association. | |||
[2] | During 2017 the Group derecognised, on redemption, financial liabilities on which cumulative fair value movements relating to own credit of 3 million (net of tax) had been recognised directly in retained profits. |
OTHER EQUITY INSTRUMENTS (Detai
OTHER EQUITY INSTRUMENTS (Details) - Schedule of Other Equity Instruments - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Other Equity Instruments [Abstract] | |||
At 1 January and 31 December | £ 5,355 | £ 5,355 | £ 5,355 |
At 1 January and 31 December | £ 5,355 | £ 5,355 | £ 5,355 |
DIVIDENDS ON ORDINARY SHARES (D
DIVIDENDS ON ORDINARY SHARES (Details) - GBP (£) £ / shares in Units, £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
DIVIDENDS ON ORDINARY SHARES (Details) [Line Items] | |||
Dividends paid, ordinary shares | £ 2,288 | £ 2,034 | £ 1,070 |
Final dividend [Member] | |||
DIVIDENDS ON ORDINARY SHARES (Details) [Line Items] | |||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners per share | £ 0.0205 | £ 0.017 | £ 0.015 |
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners | £ 1,475 | £ 1,212 | £ 1,070 |
Special dividend [Member] | |||
DIVIDENDS ON ORDINARY SHARES (Details) [Line Items] | |||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners per share | £ 0.005 | £ 0.005 | |
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners | £ 356 | £ 357 | |
Net of Credit for Unclaimed Dividends [Member] | |||
DIVIDENDS ON ORDINARY SHARES (Details) [Line Items] | |||
Dividends paid, ordinary shares | £ 2,284 | £ 2,014 | £ 1,070 |
Lloyds Banking Group Share Incentive Plan [Member] | Waived [Member] | |||
DIVIDENDS ON ORDINARY SHARES (Details) [Line Items] | |||
Number of shares in entity held by entity or by its subsidiaries or associates | 12,414,401 | 27,898,019 | |
HBOS Share Incentive Plan Trust [Member] | Waived [Member] | |||
DIVIDENDS ON ORDINARY SHARES (Details) [Line Items] | |||
Number of shares in entity held by entity or by its subsidiaries or associates | 445,625 | 445,625 | |
Lloyds Banking Group Employee Share Ownernship Trust [Member] | Waived [Member] | |||
DIVIDENDS ON ORDINARY SHARES (Details) [Line Items] | |||
Number of shares in entity held by entity or by its subsidiaries or associates | 13,346,132 | 10,699,978 | |
Lloyds Group Holdings (Jersey) Limited [Member] | Waived rights to all but a nominal amount of one penny [Member] | |||
DIVIDENDS ON ORDINARY SHARES (Details) [Line Items] | |||
Number of shares in entity held by entity or by its subsidiaries or associates | 42,846 | 42,846 |
DIVIDENDS ON ORDINARY SHARES215
DIVIDENDS ON ORDINARY SHARES (Details) - Schedule of Dividends On Ordinary Shares - GBP (£) £ / shares in Units, £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Recommended by directors at previous year end: | |||
Dividend | £ 0.0320 | £ 0.0285 | £ 0.0150 |
Dividend | £ 2,288 | £ 2,034 | £ 1,070 |
Final dividend [Member] | |||
Recommended by directors at previous year end: | |||
Dividend | £ 0.0170 | £ 0.0150 | £ 0.0075 |
Dividend | £ 1,212 | £ 1,070 | £ 535 |
Special dividend [Member] | |||
Recommended by directors at previous year end: | |||
Dividend | £ 0.0050 | £ 0.0050 | |
Dividend | £ 356 | £ 357 | |
Interim dividend [Member] | |||
Recommended by directors at previous year end: | |||
Dividend | £ 0.0100 | £ 0.0085 | £ 0.0075 |
Dividend | £ 720 | £ 607 | £ 535 |
SHARE-BASED PAYMENTS (Details)
SHARE-BASED PAYMENTS (Details) | 12 Months Ended | |
Dec. 31, 2017GBP (£) | Dec. 31, 2016GBP (£) | |
Fixed Share Awards [Member] | ||
SHARE-BASED PAYMENTS (Details) [Line Items] | ||
Number of other equity instruments granted in share-based payment arrangement | 9,313,314 | 10,031,272 |
Save-As-You-Earn [Member] | ||
SHARE-BASED PAYMENTS (Details) [Line Items] | ||
Maximum monthly scheme savings | £ 500 | |
Time period to use savings | 6 months | |
Discounted market price of shares | 80.00% | |
Weighted average share price for share options in share-based payment arrangement exercised during period at date of exercise | £ 0.67 | £ 0.67 |
Weighted average remaining contractual life of outstanding share options | 1.4 | 2.9 |
Weighted average fair value at measurement date, share options granted | £ 0.15 | £ 0.13 |
Lloyds Banking Group Executive Share Plan 2003 [Member] | ||
SHARE-BASED PAYMENTS (Details) [Line Items] | ||
Weighted average share price for share options in share-based payment arrangement exercised during period at date of exercise | £ 0.69 | £ 0.64 |
Weighted average remaining contractual life of outstanding share options | 4.9 | 5.1 |
Weighted average fair value at measurement date, share options granted | £ 0.62 | £ 0.68 |
Factor of options delivered depending on degree to which performance conditions have been met | 2.1 | |
Lloyds Banking Group Long-Term Incentive Plan [Member] | ||
SHARE-BASED PAYMENTS (Details) [Line Items] | ||
Weighted average fair value at measurement date, share options granted | £ 0.57 | £ 0.64 |
Free Share Awards [Member] | ||
SHARE-BASED PAYMENTS (Details) [Line Items] | ||
Maximum Employer Contribution To Free Shares Scheme | 3,000 | |
Employer Contribution To Free Shares Scheme | £ 200 | |
Number of other equity instruments granted in share-based payment arrangement | 21,566,047 | |
Weighted Average Fair Value At Date Of Award Of Shares Awarded To Employees Under Matching Shares Scheme | £ 0.69 | |
Matching Shares [Member] | ||
SHARE-BASED PAYMENTS (Details) [Line Items] | ||
Number of other equity instruments granted in share-based payment arrangement | 32,025,497 | 35,956,224 |
Weighted Average Fair Value At Date Of Award Of Shares Awarded To Employees Under Matching Shares Scheme | £ 0.67 | £ 0.61 |
Maximum Employer Contribution To Matching Shares Scheme | £ 45 | |
Bottom of range [member] | Save-As-You-Earn [Member] | ||
SHARE-BASED PAYMENTS (Details) [Line Items] | ||
Contract Term Under Share based Payment Arrangement | 3 years | |
Top of range [member] | Save-As-You-Earn [Member] | ||
SHARE-BASED PAYMENTS (Details) [Line Items] | ||
Contract Term Under Share based Payment Arrangement | 5 years | |
2014 [Member] | Lloyds Banking Group Long-Term Incentive Plan [Member] | ||
SHARE-BASED PAYMENTS (Details) [Line Items] | ||
Awards Vesting Rate | 55.00% | |
2015 [Member] | Lloyds Banking Group Long-Term Incentive Plan [Member] | ||
SHARE-BASED PAYMENTS (Details) [Line Items] | ||
Awards Vesting Rate | 66.30% |
SHARE-BASED PAYMENTS (Details)
SHARE-BASED PAYMENTS (Details) - Schedule of Charges to the Income Statement - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
SHARE-BASED PAYMENTS (Details) - Schedule of Charges to the Income Statement [Line Items] | |||
Deferred bonus plan | £ 313 | £ 266 | £ 255 |
Executive and SAYE plans: | |||
Executive and SAYE plans | 98 | 154 | 111 |
Share plans: | |||
Share plans | 26 | 22 | 21 |
Total charge to the income statement | 437 | 442 | 387 |
Granted in current year [Member] | |||
Executive and SAYE plans: | |||
Executive and SAYE plans | 17 | 16 | 12 |
Share plans: | |||
Share plans | 17 | 15 | 15 |
Granted in prior years [Member] | |||
Executive and SAYE plans: | |||
Executive and SAYE plans | 81 | 138 | 99 |
Share plans: | |||
Share plans | £ 9 | £ 7 | £ 6 |
SHARE-BASED PAYMENTS (Detail218
SHARE-BASED PAYMENTS (Details) - Schedule of Share Options Outstanding | 12 Months Ended | |
Dec. 31, 2017GBP (£)shares | Dec. 31, 2016GBP (£)shares | |
Share options outstanding at beginning of period [Member] | Save-As-You-Earn [Member] | ||
SHARE-BASED PAYMENTS (Details) - Schedule of Share Options Outstanding [Line Items] | ||
Balance | shares | 678,692,896 | 850,146,220 |
Balance | £ 0.5176 | £ 0.5099 |
Balance | shares | 678,692,896 | |
Balance | £ 0.5176 | |
Share options outstanding at beginning of period [Member] | Lloyds Banking Group Executive Share Plan 2003 [Member] | ||
SHARE-BASED PAYMENTS (Details) - Schedule of Share Options Outstanding [Line Items] | ||
Balance | shares | 218,962,281 | 221,397,597 |
Balance | ||
Balance | shares | 218,962,281 | |
Balance | ||
Share options outstanding at beginning of period [Member] | Lloyds Banking Group Long-Term Incentive Plan [Member] | ||
SHARE-BASED PAYMENTS (Details) - Schedule of Share Options Outstanding [Line Items] | ||
Balance | shares | 358,228,028 | 398,066,746 |
Balance | shares | 358,228,028 | |
Granted [Member] | Save-As-You-Earn [Member] | ||
SHARE-BASED PAYMENTS (Details) - Schedule of Share Options Outstanding [Line Items] | ||
Granted | 268,653,890 | 454,667,560 |
Granted | £ 0.5103 | £ 0.4749 |
Granted [Member] | Lloyds Banking Group Executive Share Plan 2003 [Member] | ||
SHARE-BASED PAYMENTS (Details) - Schedule of Share Options Outstanding [Line Items] | ||
Granted | 5,466,405 | 4,298,701 |
Granted | ||
Granted [Member] | Lloyds Banking Group Long-Term Incentive Plan [Member] | ||
SHARE-BASED PAYMENTS (Details) - Schedule of Share Options Outstanding [Line Items] | ||
Granted | 139,812,788 | 132,194,032 |
Exercised [Member] | Save-As-You-Earn [Member] | ||
SHARE-BASED PAYMENTS (Details) - Schedule of Share Options Outstanding [Line Items] | ||
Exercised | (13,119,229) | (401,286,043) |
Exercised | £ 0.5558 | £ 0.4074 |
Exercised [Member] | Lloyds Banking Group Executive Share Plan 2003 [Member] | ||
SHARE-BASED PAYMENTS (Details) - Schedule of Share Options Outstanding [Line Items] | ||
Exercised | (104,967,667) | (2,700,679) |
Exercised | ||
Forfeited [Member] | Save-As-You-Earn [Member] | ||
SHARE-BASED PAYMENTS (Details) - Schedule of Share Options Outstanding [Line Items] | ||
Forfeited | (18,545,569) | (10,590,490) |
Forfeited | £ 0.5170 | £ 0.5602 |
Forfeited [Member] | Lloyds Banking Group Executive Share Plan 2003 [Member] | ||
SHARE-BASED PAYMENTS (Details) - Schedule of Share Options Outstanding [Line Items] | ||
Forfeited | (81,883) | (3,863,477) |
Forfeited | ||
Forfeited [Member] | Lloyds Banking Group Long-Term Incentive Plan [Member] | ||
SHARE-BASED PAYMENTS (Details) - Schedule of Share Options Outstanding [Line Items] | ||
Forfeited | (73,268,966) | (33,713,900) |
Cancelled [Member] | Save-As-You-Earn [Member] | ||
SHARE-BASED PAYMENTS (Details) - Schedule of Share Options Outstanding [Line Items] | ||
Cancelled | (41,211,075) | (204,238,535) |
Cancelled | £ 0.5277 | £ 0.6023 |
Expired [Member] | Save-As-You-Earn [Member] | ||
SHARE-BASED PAYMENTS (Details) - Schedule of Share Options Outstanding [Line Items] | ||
Expired | (13,603,825) | (10,005,816) |
Expired | £ 0.5698 | £ 0.5708 |
Outstanding [Member] | Save-As-You-Earn [Member] | ||
SHARE-BASED PAYMENTS (Details) - Schedule of Share Options Outstanding [Line Items] | ||
Balance | shares | 678,692,896 | |
Balance | £ 0.5176 | |
Balance | shares | 860,867,088 | 678,692,896 |
Balance | £ 0.5134 | £ 0.5176 |
Outstanding [Member] | Lloyds Banking Group Executive Share Plan 2003 [Member] | ||
SHARE-BASED PAYMENTS (Details) - Schedule of Share Options Outstanding [Line Items] | ||
Balance | shares | 218,962,281 | |
Balance | ||
Balance | shares | 14,523,989 | 218,962,281 |
Balance | ||
Outstanding [Member] | Lloyds Banking Group Long-Term Incentive Plan [Member] | ||
SHARE-BASED PAYMENTS (Details) - Schedule of Share Options Outstanding [Line Items] | ||
Balance | shares | 358,228,028 | |
Balance | shares | 370,804,915 | 358,228,028 |
Exercisable [Member] | Save-As-You-Earn [Member] | ||
SHARE-BASED PAYMENTS (Details) - Schedule of Share Options Outstanding [Line Items] | ||
Exercisable at 31 December | ||
Exercisable at 31 December | ||
Exercisable [Member] | Lloyds Banking Group Executive Share Plan 2003 [Member] | ||
SHARE-BASED PAYMENTS (Details) - Schedule of Share Options Outstanding [Line Items] | ||
Exercisable at 31 December | 7,729,919 | 4,504,392 |
Exercisable at 31 December | ||
Share options lapsed [Member] | Lloyds Banking Group Executive Share Plan 2003 [Member] | ||
SHARE-BASED PAYMENTS (Details) - Schedule of Share Options Outstanding [Line Items] | ||
Expired | (104,855,147) | (169,861) |
Expired | ||
Vested [Member] | Lloyds Banking Group Long-Term Incentive Plan [Member] | ||
SHARE-BASED PAYMENTS (Details) - Schedule of Share Options Outstanding [Line Items] | ||
Vested | (57,406,864) | (140,879,465) |
Dividend award [Member] | Lloyds Banking Group Long-Term Incentive Plan [Member] | ||
SHARE-BASED PAYMENTS (Details) - Schedule of Share Options Outstanding [Line Items] | ||
Dividend award | 3,439,929 | 2,560,615 |
SHARE-BASED PAYMENTS (Detail219
SHARE-BASED PAYMENTS (Details) - Schedule of Financial Statement Preparations | 12 Months Ended |
Dec. 31, 2017GBP (£) | |
Save-as-you-earn [Member] | |
SHARE-BASED PAYMENTS (Details) - Schedule of Financial Statement Preparations [Line Items] | |
Weighted average risk-free interest rate | 0.59% |
Weighted average expected life | 3 years 109 days |
Weighted average expected volatility | 29.00% |
Weighted average expected dividend yield | 4.00% |
Weighted average share price (in Pounds) | £ 0.68 |
Weighted average exercise price (in Pounds) | £ 0.51 |
Executive share plan 2003 [Member] | |
SHARE-BASED PAYMENTS (Details) - Schedule of Financial Statement Preparations [Line Items] | |
Weighted average risk-free interest rate | 0.18% |
Weighted average expected life | 1 year 328 days |
Weighted average expected volatility | 30.00% |
Weighted average expected dividend yield | 4.00% |
Weighted average share price (in Pounds) | £ 0.67 |
Weighted average exercise price (in Pounds) | |
LTIP [Member] | |
SHARE-BASED PAYMENTS (Details) - Schedule of Financial Statement Preparations [Line Items] | |
Weighted average risk-free interest rate | 0.22% |
Weighted average expected life | 3 years 219 days |
Weighted average expected volatility | 31.00% |
Weighted average expected dividend yield | 0.00% |
Weighted average share price (in Pounds) | £ 0.68 |
Weighted average exercise price (in Pounds) |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2017GBP (£) | Dec. 31, 2016GBP (£) | Dec. 31, 2015GBP (£) | |
RELATED PARTY TRANSACTIONS (Details) [Line Items] | |||
Aggregate contributions in respect of key management personnel to defined contribution schemes | £ 50 | £ 100 | £ 100 |
Borrowings, interest rate | 2.43% | 2.70% | 2.76% |
Asset recognised for expected reimbursement, other provisions | £ 0 | £ 0 | £ 0 |
Outstanding commitments made by entity, related party transactions | 10 | 400 | 1,000 |
Deposits from customers | £ 418,124,000 | £ 415,460,000 | |
Number of investment vehicles | 134 | 139 | |
Fee and commission income | £ 2,965,000 | £ 3,045,000 | 3,252,000 |
Loans and advances to customers | 472,498,000 | 457,958,000 | |
Balances on term deposits from customers | 9,000 | 15,000 | |
Assets | 812,109,000 | 817,793,000 | |
Liabilities | 762,966,000 | 769,328,000 | |
Profit (loss) | 3,897,000 | 2,164,000 | 956,000 |
Cash flows from (used in) financing activities | (5,019,000) | (10,974,000) | (6,258,000) |
Interest income | £ 16,006,000 | £ 16,620,000 | £ 17,615,000 |
Key management personnel of entity or parent [member] | |||
RELATED PARTY TRANSACTIONS (Details) [Line Items] | |||
Borrowings, interest rate | 4.00% | 4.00% | 4.70% |
525110 Pension Funds [Member] | |||
RELATED PARTY TRANSACTIONS (Details) [Line Items] | |||
Deposits from customers | £ 337,000 | £ 171,000 | |
Contract liabilities | £ 307,000 | £ 406,000 | |
Bottom of range [member] | |||
RELATED PARTY TRANSACTIONS (Details) [Line Items] | |||
Borrowings, interest rate | 6.45% | 2.49% | 3.99% |
Top of range [member] | |||
RELATED PARTY TRANSACTIONS (Details) [Line Items] | |||
Borrowings, interest rate | 23.95% | 23.95% | 23.95% |
Associates [member] | |||
RELATED PARTY TRANSACTIONS (Details) [Line Items] | |||
Assets | £ 4,661,000 | £ 4,712,000 | |
Liabilities | 5,228,000 | 5,033,000 | |
Turnover | 4,601,000 | 4,401,000 | |
Profit (loss) | (87,000) | (27,000) | |
Cash flows from (used in) financing activities | 1,226,000 | 1,550,000 | |
Interest income | £ 81,000 | £ 127,000 | |
Consolidated [member] | |||
RELATED PARTY TRANSACTIONS (Details) [Line Items] | |||
Number of investment vehicles | 83 | 83 | |
Investment Vehicles [Member] | |||
RELATED PARTY TRANSACTIONS (Details) [Line Items] | |||
Current investments | £ 418,000 | £ 265,000 | |
Money redeemed from disposal of unconsolidated OEICs | 616,000 | 826,000 | |
Current investments in equity instruments designated at fair value through other comprehensive income | 2,328,000 | 2,405,000 | |
Fee and commission income | 133,000 | 192,000 | |
Outstanding [Member] | |||
RELATED PARTY TRANSACTIONS (Details) [Line Items] | |||
Loans and advances to customers | £ 123,000 | £ 173,000 |
RELATED PARTY TRANSACTIONS (221
RELATED PARTY TRANSACTIONS (Details) - Schedule of Compensation of Key Management Personnel - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Compensation | |||
Salaries and other short-term benefits | £ 13 | £ 17 | £ 14 |
Share-based payments | 22 | 23 | 18 |
Total compensation | £ 35 | £ 40 | £ 32 |
RELATED PARTY TRANSACTIONS (222
RELATED PARTY TRANSACTIONS (Details) - Aggregate contributions in respect of key management personnel to defined contribution pension schemes - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share option plans [Member] | |||
RELATED PARTY TRANSACTIONS (Details) - Aggregate contributions in respect of key management personnel to defined contribution pension schemes [Line Items] | |||
Balance | £ 3 | £ 9 | £ 13 |
Granted, including certain adjustments (includes entitlements of appointed key management personnel) | 3 | 3 | |
Exercised/lapsed (includes entitlements of former key management personnel) | (2) | (9) | (7) |
Balance | 1 | 3 | 9 |
Share plans [Member] | |||
RELATED PARTY TRANSACTIONS (Details) - Aggregate contributions in respect of key management personnel to defined contribution pension schemes [Line Items] | |||
Balance | 65 | 82 | 102 |
Granted, including certain adjustments (includes entitlements of appointed key management personnel) | 37 | 29 | 37 |
Exercised/lapsed (includes entitlements of former key management personnel) | (20) | (46) | (57) |
Balance | £ 82 | £ 65 | £ 82 |
RELATED PARTY TRANSACTIONS (223
RELATED PARTY TRANSACTIONS (Details) - Schedule of Loan Balances Outstanding - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Loans | |||
Balance | £ 4 | £ 5 | £ 3 |
Advanced (includes loans of appointed key management personnel) | 1 | 3 | 4 |
Repayments (includes loans of former key management personnel) | (3) | (4) | (2) |
Balance | £ 2 | £ 4 | £ 5 |
RELATED PARTY TRANSACTIONS (224
RELATED PARTY TRANSACTIONS (Details) - Schedule of Deposits - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Deposits | |||
Deposits | £ 12 | £ 13 | £ 16 |
Deposits | 20 | 12 | 13 |
Deposits Placed [Member] | |||
Deposits | |||
Deposits | 41 | 58 | |
Deposits | 41 | 41 | 58 |
Deposits Withdrawn [Member] | |||
Deposits | |||
Deposits | (42) | (61) | |
Deposits | £ (33) | £ (42) | £ (61) |
CONTINGENT LIABILITIES AND C225
CONTINGENT LIABILITIES AND COMMITMENTS (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2014 | Dec. 31, 2016 | |
CONTINGENT LIABILITIES AND COMMITMENTS (Details) [Line Items] | |||
Payments in respect of settlements, reimbursement rights | £ 217 | ||
Loans payable in default | £ 4,678 | £ 15,655 | |
Increase (Decrease) In Current Tax Liability | 650 | ||
Increase (decrease) in deferred tax liability (asset) | (350) | ||
Liabilities | 762,966 | 769,328 | |
Capital commitments | 444 | 543 | |
Recognised finance lease as assets | 440 | 541 | |
Irrevocable Loan Commitments [Member] | |||
CONTINGENT LIABILITIES AND COMMITMENTS (Details) [Line Items] | |||
Liabilities | £ 60,126 | £ 63,203 |
CONTINGENT LIABILITIES AND C226
CONTINGENT LIABILITIES AND COMMITMENTS (Details) - Schedule of Contingent Liabilities - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Contingent liabilities | ||
Acceptances and endorsements | £ 71 | £ 21 |
Other items serving as direct credit substitutes | 740 | 779 |
Performance bonds and other transaction-related contingencies | 2,300 | 2,237 |
3,040 | 3,016 | |
Total contingent liabilities | £ 3,111 | £ 3,037 |
CONTINGENT LIABILITIES AND C227
CONTINGENT LIABILITIES AND COMMITMENTS (Details) - Schedule of Commitments - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Commitments | ||
Forward asset purchases and forward deposits placed | £ 384 | £ 648 |
Total commitments | 129,809 | 114,168 |
129,809 | 114,168 | |
Not later than one year [member] | ||
Commitments | ||
93,039 | 73,446 | |
Later than one year [member] | ||
Commitments | ||
1 year or over original maturity | 36,386 | 40,074 |
Mortgages [member] | Not later than one year [member] | ||
Commitments | ||
11,156 | 10,749 | |
Other [Member] | Not later than one year [member] | ||
Commitments | ||
£ 81,883 | £ 62,697 |
CONTINGENT LIABILITIES AND C228
CONTINGENT LIABILITIES AND COMMITMENTS (Details) - Schedule of Operating Lease Commitments - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
CONTINGENT LIABILITIES AND COMMITMENTS (Details) - Schedule of Operating Lease Commitments [Line Items] | ||
Operating lease commitments | £ 2,054 | £ 2,063 |
Not later than one year [member] | ||
CONTINGENT LIABILITIES AND COMMITMENTS (Details) - Schedule of Operating Lease Commitments [Line Items] | ||
Operating lease commitments | 275 | 264 |
Later than one year and not later than five years [member] | ||
CONTINGENT LIABILITIES AND COMMITMENTS (Details) - Schedule of Operating Lease Commitments [Line Items] | ||
Operating lease commitments | 845 | 855 |
Later than five years [member] | ||
CONTINGENT LIABILITIES AND COMMITMENTS (Details) - Schedule of Operating Lease Commitments [Line Items] | ||
Operating lease commitments | £ 934 | £ 944 |
FINANCIAL INSTRUMENTS (Details)
FINANCIAL INSTRUMENTS (Details) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
FINANCIAL INSTRUMENTS (Details) [Line Items] | ||
Financial assets, at fair value | £ 204,976 | £ 207,698 |
Financial liabilities at fair value through profit or loss that meet definition of held for trading | 43,062 | 45,079 |
Fair Value of Debt Securities Issued | 7,812 | 9,423 |
Adjustments for fair value losses (gains) | 55 | 28 |
Derivative financial assets | 25,834 | 36,138 |
Derivative financial liabilities | £ 26,124 | 34,924 |
Increase (decrease) in loss given default | 10.00% | |
Increase (decrease) in valuation adjustment | £ (186) | |
Increase (decrease) in credit default swap | 1.00% | |
Adjustments for gains (losses) on change in fair value of derivatives | £ 74 | £ 96 |
Top of range [member] | ||
FINANCIAL INSTRUMENTS (Details) [Line Items] | ||
Increase (decrease) in valuation adjustment | £ 185 | |
Interest rate, significant unobservable inputs, assets | 94.00% | 115.00% |
Duration of loan | 5 years | |
Bottom of range [member] | ||
FINANCIAL INSTRUMENTS (Details) [Line Items] | ||
Interest rate, significant unobservable inputs, assets | 9.00% | |
Duration of loan | 2 years | |
CVA [Member] | ||
FINANCIAL INSTRUMENTS (Details) [Line Items] | ||
Description of sensitivity of fair value measurement to changes in unobservable inputs, assets | The combination of a one notch deterioration in the credit ratingof derivative counterparties and a ten per cent increase in LGD increases the CVA by £82 million. | |
Increase (decrease) in valuation adjustment | £ 82 | |
DVA [Member] | ||
FINANCIAL INSTRUMENTS (Details) [Line Items] | ||
Description of sensitivity of fair value measurement to changes in unobservable inputs, assets | A one per cent rise in the CDS spread would lead toan increase in the DVA of £96 million to £133 million. | |
Increase (decrease) in valuation adjustment | £ 96 | |
DVA [Member] | Top of range [member] | ||
FINANCIAL INSTRUMENTS (Details) [Line Items] | ||
Increase (decrease) in valuation adjustment | £ 133 | |
Funding Valuation Adjustment [Member] | ||
FINANCIAL INSTRUMENTS (Details) [Line Items] | ||
Description of sensitivity of fair value measurement to changes in unobservable inputs, assets | A ten basis points increase in the cost of funds will increase the fundingvaluation adjustment by approximately £26 million. | |
Increase (decrease) in valuation adjustment | £ 26 | |
Increase (decrease) in cost of funds | 0.10% | |
Excluding Derivatives [Member] | ||
FINANCIAL INSTRUMENTS (Details) [Line Items] | ||
Financial liabilities at fair value through profit or loss that meet definition of held for trading | £ 50,877 | £ 54,504 |
FINANCIAL INSTRUMENTS (Detai230
FINANCIAL INSTRUMENTS (Details) - Schedule of Reclassifications £ in Millions | 12 Months Ended |
Dec. 31, 2016GBP (£) | |
Disclosure of financial instruments [text block] [Abstract] | |
Credit to available for sale revaluation reserve on reclassification pre tax | £ 1,544 |
Credit To Available for sale Revaluation Reserve On Reclassification Post Tax | £ 1,127 |
FINANCIAL INSTRUMENTS (Detai231
FINANCIAL INSTRUMENTS (Details) - Schedule of Financial Assets and Liabilites - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Financial assets | |||
Cash and balances at central banks | £ 58,521 | £ 47,452 | £ 58,417 |
Items in the course of collection from banks | 755 | 706 | |
Trading and other financial assets at fair value through profit or loss | 162,878 | 151,174 | |
Derivative financial instruments | 25,834 | 36,138 | |
Loans and receivables: | |||
Loans and advances to banks | 6,611 | 26,902 | 25,117 |
Loans and advances to customers | 472,498 | 457,958 | |
Debt securities | 3,643 | 3,397 | |
Loans and receivables | 482,752 | 488,257 | |
Available-for-sale financial assets | 42,098 | 56,524 | |
Total financial assets | 772,838 | 780,251 | |
Financial liabilities | |||
Deposits from banks | 29,804 | 16,384 | |
Customer deposits | 418,124 | 415,460 | |
Items in course of transmission to banks | 584 | 548 | |
Trading and other financial liabilities at fair value through profit or loss | 50,877 | 54,504 | |
Derivative financial liabilities | 26,124 | 34,924 | |
Notes in circulation | 1,313 | 1,402 | |
Debt securities in issue | 72,450 | 76,314 | |
Liabilities arising from insurance contracts and participating investment contracts | 103,413 | 94,390 | |
Liabilities arising from non-participating investment contracts | 15,447 | 20,112 | |
Unallocated surplus within insurance businesses | 390 | 243 | |
Subordinated liabilities | 17,922 | 19,831 | £ 23,312 |
Total financial liabilities | 736,448 | 734,112 | |
Hedging instruments [member] | |||
Financial assets | |||
Derivative financial instruments | 1,881 | 2,712 | |
Loans and receivables: | |||
Total financial assets | 1,881 | 2,712 | |
Financial liabilities | |||
Derivative financial liabilities | 1,613 | 1,964 | |
Total financial liabilities | 1,613 | 1,964 | |
Financial assets at fair value through profit or loss, classified as held for trading, category [member] | |||
Financial assets | |||
Trading and other financial assets at fair value through profit or loss | 42,236 | 45,253 | |
Derivative financial instruments | 23,953 | 33,426 | |
Loans and receivables: | |||
Loans and advances to banks | 1,614 | 2,606 | |
Loans and advances to customers | 29,976 | 30,473 | |
Total financial assets | 66,189 | 78,679 | |
Financial liabilities | |||
Trading and other financial liabilities at fair value through profit or loss | 43,062 | 45,079 | |
Derivative financial liabilities | 24,511 | 32,960 | |
Total financial liabilities | 67,573 | 78,039 | |
Financial assets at fair value through profit or loss, designated upon initial recognition or subsequently, category [member] | |||
Financial assets | |||
Trading and other financial assets at fair value through profit or loss | 120,642 | 105,921 | |
Loans and receivables: | |||
Total financial assets | 120,642 | 105,921 | |
Financial liabilities | |||
Trading and other financial liabilities at fair value through profit or loss | 7,815 | 9,425 | |
Total financial liabilities | 7,815 | 9,425 | |
Financial assets available-for-sale, category [member] | |||
Loans and receivables: | |||
Available-for-sale financial assets | 42,098 | 56,524 | |
Total financial assets | 42,098 | 56,524 | |
Loans and receivables, category [member] | |||
Loans and receivables: | |||
Loans and advances to banks | 6,611 | 26,902 | |
Loans and advances to customers | 472,498 | 457,958 | |
Debt securities | 3,643 | 3,397 | |
Loans and receivables | 482,752 | 488,257 | |
Total financial assets | 482,752 | 488,257 | |
Financial assets at amortised cost, category [member] | |||
Financial assets | |||
Cash and balances at central banks | 58,521 | 47,452 | |
Items in the course of collection from banks | 755 | 706 | |
Loans and receivables: | |||
Total financial assets | 59,276 | 48,158 | |
Financial liabilities | |||
Deposits from banks | 29,804 | 16,384 | |
Customer deposits | 418,124 | 415,460 | |
Items in course of transmission to banks | 584 | 548 | |
Notes in circulation | 1,313 | 1,402 | |
Debt securities in issue | 72,450 | 76,314 | |
Subordinated liabilities | 17,922 | 19,831 | |
Total financial liabilities | 540,197 | 529,939 | |
Insurance contracts [member] | |||
Financial liabilities | |||
Liabilities arising from insurance contracts and participating investment contracts | 103,413 | 94,390 | |
Liabilities arising from non-participating investment contracts | 15,447 | 20,112 | |
Unallocated surplus within insurance businesses | 390 | 243 | |
Total financial liabilities | £ 119,250 | £ 114,745 |
FINANCIAL INSTRUMENTS (Detai232
FINANCIAL INSTRUMENTS (Details) - Schedule of Financial Assets Excluding Derivatives - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
FINANCIAL INSTRUMENTS (Details) - Schedule of Financial Assets Excluding Derivatives [Line Items] | |||
Loans and advances to customers | £ 472,498 | £ 457,958 | |
Loans and advances to banks | 6,611 | 26,902 | £ 25,117 |
Debt securities: | |||
Government securities | 34,708 | 48,714 | |
Bank and building society certificates of deposit | 167 | 142 | |
Asset-backed securities: | |||
Mortgage-backed securities | 1,156 | 108 | |
Other asset-backed securities | 255 | 317 | |
Debt securities: | |||
Corporate and other debt securities | 4,615 | 6,030 | |
40,901 | 55,311 | ||
Equity shares | 1,197 | 1,213 | |
Total available-for-sale financial assets | 42,098 | 56,524 | |
Trading and other financial assets at fair value through profit or loss | 162,878 | 151,174 | |
Financial assets at fair value through profit or loss, category [member] | |||
Debt securities: | |||
Government securities | 12,187 | 14,904 | |
Other public sector securities | 1,527 | 1,325 | |
Bank and building society certificates of deposit | 222 | 244 | |
Asset-backed securities: | |||
Mortgage-backed securities | 211 | 660 | |
Other asset-backed securities | 926 | 1,469 | |
Debt securities: | |||
Corporate and other debt securities | 19,467 | 19,608 | |
34,540 | 38,210 | ||
Equity shares | 86,084 | 67,691 | |
Treasury and other bills | 18 | 20 | |
Total trading and other financial assets at fair value through profit or loss | 120,642 | 105,921 | |
Financial assets available-for-sale, category [member] | |||
Debt securities: | |||
Total available-for-sale financial assets | 42,098 | 56,524 | |
Financial Assets, Excluding Derivatives [Member] | |||
Debt securities: | |||
Trading and other financial assets at fair value through profit or loss | 204,976 | 207,698 | |
Financial Assets, Excluding Derivatives [Member] | Level 1 of fair value hierarchy [member] | |||
Debt securities: | |||
Trading and other financial assets at fair value through profit or loss | 140,306 | 140,326 | |
Financial Assets, Excluding Derivatives [Member] | Level 2 of fair value hierarchy [member] | |||
Debt securities: | |||
Trading and other financial assets at fair value through profit or loss | 60,288 | 62,672 | |
Financial Assets, Excluding Derivatives [Member] | Level 3 of fair value hierarchy [member] | |||
Debt securities: | |||
Trading and other financial assets at fair value through profit or loss | 4,382 | 4,700 | |
Financial Assets, Excluding Derivatives [Member] | Financial assets at fair value through profit or loss, category [member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Financial Assets Excluding Derivatives [Line Items] | |||
Loans and advances to customers | 29,976 | 30,473 | |
Loans and advances to banks | 1,614 | 2,606 | |
Debt securities: | |||
Government securities | 22,020 | 26,732 | |
Other public sector securities | 1,527 | 1,325 | |
Bank and building society certificates of deposit | 222 | 244 | |
Asset-backed securities: | |||
Mortgage-backed securities | 400 | 707 | |
Other asset-backed securities | 1,021 | 1,538 | |
Debt securities: | |||
Corporate and other debt securities | 19,990 | 19,832 | |
45,180 | 50,378 | ||
Equity shares | 86,090 | 67,697 | |
Treasury and other bills | 18 | 20 | |
Total trading and other financial assets at fair value through profit or loss | 162,878 | 151,174 | |
Financial Assets, Excluding Derivatives [Member] | Financial assets at fair value through profit or loss, category [member] | Level 1 of fair value hierarchy [member] | |||
Debt securities: | |||
Government securities | 20,268 | 24,959 | |
Asset-backed securities: | |||
Mortgage-backed securities | 3 | ||
Other asset-backed securities | 5 | 4 | |
Debt securities: | |||
Corporate and other debt securities | 112 | ||
20,276 | 25,075 | ||
Equity shares | 84,694 | 66,147 | |
Treasury and other bills | 18 | 20 | |
Total trading and other financial assets at fair value through profit or loss | 104,988 | 91,242 | |
Financial Assets, Excluding Derivatives [Member] | Financial assets at fair value through profit or loss, category [member] | Level 2 of fair value hierarchy [member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Financial Assets Excluding Derivatives [Line Items] | |||
Loans and advances to customers | 29,976 | 30,473 | |
Loans and advances to banks | 1,614 | 2,606 | |
Debt securities: | |||
Government securities | 1,729 | 1,773 | |
Other public sector securities | 1,526 | 1,279 | |
Bank and building society certificates of deposit | 222 | 244 | |
Asset-backed securities: | |||
Mortgage-backed securities | 348 | 654 | |
Other asset-backed securities | 229 | 1,092 | |
Debt securities: | |||
Corporate and other debt securities | 18,542 | 17,968 | |
22,596 | 23,010 | ||
Equity shares | 18 | 37 | |
Total trading and other financial assets at fair value through profit or loss | 54,204 | 56,126 | |
Financial Assets, Excluding Derivatives [Member] | Financial assets at fair value through profit or loss, category [member] | Level 3 of fair value hierarchy [member] | |||
Debt securities: | |||
Government securities | 23 | ||
Other public sector securities | 1 | 46 | |
Asset-backed securities: | |||
Mortgage-backed securities | 49 | 53 | |
Other asset-backed securities | 787 | 442 | |
Debt securities: | |||
Corporate and other debt securities | 1,448 | 1,752 | |
2,308 | 2,293 | ||
Equity shares | 1,378 | 1,513 | |
Total trading and other financial assets at fair value through profit or loss | 3,686 | 3,806 | |
Financial Assets, Excluding Derivatives [Member] | Financial assets available-for-sale, category [member] | |||
Debt securities: | |||
Government securities | 34,708 | 48,714 | |
Bank and building society certificates of deposit | 167 | 142 | |
Asset-backed securities: | |||
Mortgage-backed securities | 1,156 | 108 | |
Other asset-backed securities | 255 | 317 | |
Debt securities: | |||
Corporate and other debt securities | 4,615 | 6,030 | |
40,901 | 55,311 | ||
Equity shares | 1,197 | 1,213 | |
Total available-for-sale financial assets | 42,098 | 56,524 | |
Financial Assets, Excluding Derivatives [Member] | Financial assets available-for-sale, category [member] | Level 1 of fair value hierarchy [member] | |||
Debt securities: | |||
Government securities | 34,534 | 48,542 | |
Debt securities: | |||
Corporate and other debt securities | 229 | 107 | |
34,763 | 48,649 | ||
Equity shares | 555 | 435 | |
Total available-for-sale financial assets | 35,318 | 49,084 | |
Financial Assets, Excluding Derivatives [Member] | Financial assets available-for-sale, category [member] | Level 2 of fair value hierarchy [member] | |||
Debt securities: | |||
Government securities | 174 | 172 | |
Bank and building society certificates of deposit | 167 | 142 | |
Asset-backed securities: | |||
Mortgage-backed securities | 1,156 | 108 | |
Other asset-backed securities | 163 | 184 | |
Debt securities: | |||
Corporate and other debt securities | 4,386 | 5,923 | |
6,046 | 6,529 | ||
Equity shares | 38 | 17 | |
Total available-for-sale financial assets | 6,084 | 6,546 | |
Financial Assets, Excluding Derivatives [Member] | Financial assets available-for-sale, category [member] | Level 3 of fair value hierarchy [member] | |||
Asset-backed securities: | |||
Other asset-backed securities | 92 | 133 | |
Debt securities: | |||
92 | 133 | ||
Equity shares | 604 | 761 | |
Total available-for-sale financial assets | £ 696 | £ 894 |
FINANCIAL INSTRUMENTS (Detai233
FINANCIAL INSTRUMENTS (Details) - Schedule of Movements in Level 3 Portfolio - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
FINANCIAL INSTRUMENTS (Details) - Schedule of Movements in Level 3 Portfolio [Line Items] | ||
At 31 December | £ 772,838 | £ 780,251 |
Level 3 of fair value hierarchy [member] | ||
FINANCIAL INSTRUMENTS (Details) - Schedule of Movements in Level 3 Portfolio [Line Items] | ||
Exchange and other adjustments | 24 | 74 |
Gains recognised in the income statement within other income | (208) | 220 |
Purchases | 103 | 24 |
Sales | (79) | (91) |
Transfers into the level 3 portfolio | 33 | 216 |
Transfers out of the level 3 portfolio | (216) | (37) |
Gains recognised in the income statement, within other income, relating to the change in fair value of those assets held at 31 December | (208) | 284 |
Financial assets at fair value through profit or loss, category [member] | Level 3 of fair value hierarchy [member] | ||
FINANCIAL INSTRUMENTS (Details) - Schedule of Movements in Level 3 Portfolio [Line Items] | ||
At 1 January | 3,806 | 5,116 |
Exchange and other adjustments | (1) | 8 |
Gains recognised in the income statement within other income | 202 | 437 |
Purchases | 774 | 833 |
Sales | (1,005) | (2,597) |
Transfers into the level 3 portfolio | 152 | 186 |
Transfers out of the level 3 portfolio | (242) | (177) |
At 31 December | 3,686 | 3,806 |
Gains recognised in the income statement, within other income, relating to the change in fair value of those assets held at 31 December | 125 | 642 |
Financial assets available-for-sale, category [member] | ||
FINANCIAL INSTRUMENTS (Details) - Schedule of Movements in Level 3 Portfolio [Line Items] | ||
At 31 December | 42,098 | 56,524 |
Financial assets available-for-sale, category [member] | Level 3 of fair value hierarchy [member] | ||
FINANCIAL INSTRUMENTS (Details) - Schedule of Movements in Level 3 Portfolio [Line Items] | ||
At 1 January | 894 | 684 |
Exchange and other adjustments | (24) | 12 |
(Losses) gains recognised in other comprehensive income within the revaluation reserve in respect of available-for-sale financial assets | (117) | 312 |
Purchases | 41 | 258 |
Sales | (61) | (527) |
Transfers into the level 3 portfolio | 2 | 155 |
Transfers out of the level 3 portfolio | (39) | |
At 31 December | 696 | 894 |
Financial Assets, Excluding Derivatives [Member] | Level 3 of fair value hierarchy [member] | ||
FINANCIAL INSTRUMENTS (Details) - Schedule of Movements in Level 3 Portfolio [Line Items] | ||
At 1 January | 4,700 | 5,800 |
Exchange and other adjustments | (25) | 20 |
Gains recognised in the income statement within other income | 202 | 437 |
(Losses) gains recognised in other comprehensive income within the revaluation reserve in respect of available-for-sale financial assets | (117) | 312 |
Purchases | 815 | 1,091 |
Sales | (1,066) | (3,124) |
Transfers into the level 3 portfolio | 154 | 341 |
Transfers out of the level 3 portfolio | (281) | (177) |
At 31 December | 4,382 | 4,700 |
Gains recognised in the income statement, within other income, relating to the change in fair value of those assets held at 31 December | £ 125 | £ 642 |
FINANCIAL INSTRUMENTS (Detai234
FINANCIAL INSTRUMENTS (Details) - Schedule of Financial Liabilities Excluding Derivatives - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
FINANCIAL INSTRUMENTS (Details) - Schedule of Financial Liabilities Excluding Derivatives [Line Items] | ||
Liabilities held at fair value through profit or loss | £ 7,815 | £ 9,425 |
Trading liabilities: | ||
Liabilities in respect of securities sold under repurchase agreements | 41,378 | 42,067 |
Other | 381 | 530 |
Short positions in securities | 1,303 | 2,482 |
43,062 | 45,079 | |
Total financial liabilities carried at fair value, excluding derivatives | 50,877 | 54,504 |
Level 1 of fair value hierarchy [member] | ||
FINANCIAL INSTRUMENTS (Details) - Schedule of Financial Liabilities Excluding Derivatives [Line Items] | ||
Liabilities held at fair value through profit or loss | 3 | |
Trading liabilities: | ||
Short positions in securities | 1,106 | 2,417 |
1,106 | 2,417 | |
Total financial liabilities carried at fair value, excluding derivatives | 1,109 | 2,417 |
Level 2 of fair value hierarchy [member] | ||
FINANCIAL INSTRUMENTS (Details) - Schedule of Financial Liabilities Excluding Derivatives [Line Items] | ||
Liabilities held at fair value through profit or loss | 7,812 | 9,423 |
Trading liabilities: | ||
Liabilities in respect of securities sold under repurchase agreements | 41,378 | 42,067 |
Other | 381 | 530 |
Short positions in securities | 197 | 65 |
41,956 | 42,662 | |
Total financial liabilities carried at fair value, excluding derivatives | £ 49,768 | 52,085 |
Level 3 of fair value hierarchy [member] | ||
FINANCIAL INSTRUMENTS (Details) - Schedule of Financial Liabilities Excluding Derivatives [Line Items] | ||
Liabilities held at fair value through profit or loss | 2 | |
Trading liabilities: | ||
Total financial liabilities carried at fair value, excluding derivatives | £ 2 |
FINANCIAL INSTRUMENTS (Detai235
FINANCIAL INSTRUMENTS (Details) - Schedule of Movement in Level 3 Financial Liabilities - Level 3 of fair value hierarchy [member] - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
FINANCIAL INSTRUMENTS (Details) - Schedule of Movement in Level 3 Financial Liabilities [Line Items] | ||
£ 2 | £ 1 | |
Gains recognised in the income statement, within other income, relating to the change in fair value of those liabilities held at 31 December | 1 | |
Losses (gains) recognised in the income statement within other income | (2) | 1 |
£ 2 |
FINANCIAL INSTRUMENTS (Detai236
FINANCIAL INSTRUMENTS (Details) - Schedule of Derivatives - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
FINANCIAL INSTRUMENTS (Details) - Schedule of Derivatives [Line Items] | |||
Derivative assets | £ 25,834 | £ 36,138 | |
Derivative liabilities | (26,124) | (34,924) | |
Level 1 of fair value hierarchy [member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Derivatives [Line Items] | |||
Derivative assets | 246 | 270 | |
Derivative liabilities | (587) | (358) | |
Level 2 of fair value hierarchy [member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Derivatives [Line Items] | |||
Derivative assets | 24,532 | 34,469 | |
Derivative liabilities | (24,733) | (33,606) | |
Level 3 of fair value hierarchy [member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Derivatives [Line Items] | |||
Derivative assets | 1,056 | 1,399 | £ 1,469 |
Derivative liabilities | £ (804) | £ (960) | £ (723) |
FINANCIAL INSTRUMENTS (Detai237
FINANCIAL INSTRUMENTS (Details) - Schedule of Level 3 Derivative Assets and Liabilities - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
FINANCIAL INSTRUMENTS (Details) - Schedule of Level 3 Derivative Assets and Liabilities [Line Items] | |||
At 1 January | £ 36,138 | ||
At 1 January | (34,924) | ||
Losses (gains) recognised in the income statement within other income | 144 | £ 154 | £ (14) |
At 31 December | 25,834 | 36,138 | |
At 31 December | (26,124) | (34,924) | |
Level 3 of fair value hierarchy [member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Level 3 Derivative Assets and Liabilities [Line Items] | |||
At 1 January | 1,399 | 1,469 | |
At 1 January | (960) | (723) | |
Exchange and other adjustments | 24 | 74 | |
Exchange and other adjustments | (20) | (53) | |
Losses (gains) recognised in the income statement within other income | (208) | 220 | |
Losses (gains) recognised in the income statement within other income | 215 | (299) | |
Purchases (additions) | 103 | 24 | |
Purchases (additions) | (18) | (13) | |
(Sales) redemptions | (79) | (91) | |
(Sales) redemptions | 53 | 128 | |
Derecognised pursuant to tender offers and redemptions in respect of Enhanced Capital Notes | (476) | ||
Transfers into the level 3 portfolio | 33 | 216 | |
Transfers into the level 3 portfolio | (74) | ||
Transfers out of the level 3 portfolio | (216) | (37) | |
At 31 December | 1,056 | 1,399 | 1,469 |
At 31 December | (804) | (960) | £ (723) |
Gains (losses) recognised in the income statement, within other income, relating to the change in fair value of those assets or liabilities held at 31 December | (208) | 284 | |
Gains (losses) recognised in the income statement, within other income, relating to the change in fair value of those assets or liabilities held at 31 December | £ 213 | £ (262) |
FINANCIAL INSTRUMENTS (Detai238
FINANCIAL INSTRUMENTS (Details) - Schedule of Valuation Adjustments - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
FINANCIAL INSTRUMENTS (Details) - Schedule of Valuation Adjustments [Line Items] | ||
Valuation Adjustment | £ 744 | £ 598 |
Income statement charge (credit) | (260) | 163 |
Transfers | 37 | (17) |
Valuation Adjustment | 521 | 744 |
Credit Valuation Adjustment [Member] | ||
FINANCIAL INSTRUMENTS (Details) - Schedule of Valuation Adjustments [Line Items] | ||
Valuation Adjustment | 685 | |
Valuation Adjustment | 408 | 685 |
Debit Valuation Adjustment [Member] | ||
FINANCIAL INSTRUMENTS (Details) - Schedule of Valuation Adjustments [Line Items] | ||
Valuation Adjustment | (123) | |
Valuation Adjustment | (37) | (123) |
Funding Valuation Adjustment [Member] | ||
FINANCIAL INSTRUMENTS (Details) - Schedule of Valuation Adjustments [Line Items] | ||
Valuation Adjustment | 182 | |
Valuation Adjustment | £ 150 | £ 182 |
FINANCIAL INSTRUMENTS (Detai239
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | ||||
Debt securities | £ 72,450 | £ 76,314 | ||
Asset-backed securities | 40,901 | 55,311 | ||
42,098 | 56,524 | |||
162,878 | 151,174 | |||
26,124 | 34,924 | |||
Derivative financial instruments | 25,834 | 36,138 | ||
Level 3 financial assets carried at fair value | 204,976 | 207,698 | ||
Trading and other financial liabilities at fair value through profit or loss | 50,877 | 54,504 | ||
Level 3 financial liabilities carried at fair value | 43,062 | 45,079 | ||
Financial liabilities at fair value through profit or loss, category [member] | ||||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | ||||
Trading and other financial liabilities at fair value through profit or loss | [1] | |||
Favourable changes [Member] | Financial liabilities at fair value through profit or loss, category [member] | ||||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | ||||
Trading and other financial liabilities at fair value through profit or loss | 2 | |||
Favourable changes [Member] | Derivative liabilities [Member] | ||||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | ||||
804 | 960 | |||
Unfavourable changes [Member] | Financial liabilities at fair value through profit or loss, category [member] | ||||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | ||||
Trading and other financial liabilities at fair value through profit or loss | [1] | |||
Gross carrying amount [member] | Financial liabilities at fair value through profit or loss, category [member] | ||||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | ||||
Trading and other financial liabilities at fair value through profit or loss | [1] | |||
Option pricing model [member] | Interest rate volatility [Member] | Favourable changes [Member] | Derivative liabilities [Member] | ||||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | ||||
Interest rate derivatives | [1] | 804 | 960 | |
Option pricing model [member] | Interest rate volatility [Member] | Unfavourable changes [Member] | Derivative liabilities [Member] | ||||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | ||||
Interest rate derivatives | [1] | |||
Level 3 of fair value hierarchy [member] | ||||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | ||||
Debt securities | 216 | |||
804 | 960 | £ 723 | ||
Derivative financial instruments | 1,056 | 1,399 | £ 1,469 | |
Trading and other financial liabilities at fair value through profit or loss | 2 | |||
Level 3 of fair value hierarchy [member] | Favourable changes [Member] | Financial liabilities at fair value, class [member] | ||||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | ||||
Level 3 financial liabilities carried at fair value | 804 | 962 | ||
Level 3 of fair value hierarchy [member] | Financial assets at fair value, class [member] | Favourable changes [Member] | ||||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | ||||
Level 3 financial assets carried at fair value | 5,438 | 6,099 | ||
Financial assets at fair value through profit or loss, category [member] | ||||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | ||||
Asset-backed securities | 34,540 | 38,210 | ||
Other | 120,642 | 105,921 | ||
Financial assets at fair value through profit or loss, category [member] | Favourable changes [Member] | ||||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | ||||
3,686 | 3,806 | |||
Financial assets at fair value through profit or loss, category [member] | Lead manager or broker quote [Member] | Favourable changes [Member] | ||||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | ||||
Asset-backed securities | [1] | 59 | ||
Financial assets at fair value through profit or loss, category [member] | Lead manager or broker quote [Member] | Unfavourable changes [Member] | ||||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | ||||
Asset-backed securities | [1] | |||
Financial assets at fair value through profit or loss, category [member] | Discounted cash flow [member] | Credit spreads [Member] | ||||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | ||||
Debt securities | (5) | |||
Financial assets at fair value through profit or loss, category [member] | Discounted cash flow [member] | Credit spreads [Member] | Favourable changes [Member] | ||||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | ||||
Debt securities | [1] | 11 | 29 | |
Financial assets at fair value through profit or loss, category [member] | Discounted cash flow [member] | Credit spreads [Member] | Unfavourable changes [Member] | ||||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | ||||
Debt securities | [1] | 5 | ||
Financial assets at fair value through profit or loss, category [member] | Market approach [member] | Earnings multiple [Member] | ||||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | ||||
Equity and venture capital investments | (68) | |||
Financial assets at fair value through profit or loss, category [member] | Market approach [member] | Earnings multiple [Member] | Favourable changes [Member] | ||||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | ||||
Equity and venture capital investments | [1] | 1,879 | 2,163 | |
Financial assets at fair value through profit or loss, category [member] | Market approach [member] | Earnings multiple [Member] | Unfavourable changes [Member] | ||||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | ||||
Equity and venture capital investments | [1] | 65 | 63 | |
Financial assets at fair value through profit or loss, category [member] | Market approach [member] | Gross carrying amount [member] | Earnings multiple [Member] | ||||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | ||||
Equity and venture capital investments | (65) | |||
Financial assets at fair value through profit or loss, category [member] | Underlying asset/net asset value (incl. property prices) [Member] | ||||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | ||||
Equity and venture capital investments | (3) | |||
Financial assets at fair value through profit or loss, category [member] | Underlying asset/net asset value (incl. property prices) [Member] | Favourable changes [Member] | ||||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | ||||
Equity and venture capital investments | [1],[2] | 50 | 54 | |
Financial assets at fair value through profit or loss, category [member] | Underlying asset/net asset value (incl. property prices) [Member] | Unfavourable changes [Member] | ||||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | ||||
Equity and venture capital investments | [1],[2] | 5 | 2 | |
Financial assets at fair value through profit or loss, category [member] | Underlying asset/net asset value (incl. property prices) [Member] | Gross carrying amount [member] | ||||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | ||||
Equity and venture capital investments | [2] | (5) | ||
Financial assets available-for-sale, category [member] | ||||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | ||||
42,098 | 56,524 | |||
Financial assets available-for-sale, category [member] | Favourable changes [Member] | ||||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | ||||
696 | 894 | |||
Financial assets available-for-sale, category [member] | Underlying asset/net asset value (incl. property prices) [Member] | ||||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | ||||
Equity and venture capital investments | (53) | |||
Financial assets available-for-sale, category [member] | Underlying asset/net asset value (incl. property prices) [Member] | Favourable changes [Member] | ||||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | ||||
Equity and venture capital investments | [1] | 604 | 761 | |
Financial assets available-for-sale, category [member] | Underlying asset/net asset value (incl. property prices) [Member] | Unfavourable changes [Member] | ||||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | ||||
Equity and venture capital investments | [1] | 83 | 48 | |
Financial assets available-for-sale, category [member] | Underlying asset/net asset value (incl. property prices) [Member] | Gross carrying amount [member] | ||||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | ||||
Equity and venture capital investments | (42) | |||
Financial assets available-for-sale, category [member] | Various [Member] | Favourable changes [Member] | ||||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | ||||
Other | [1] | |||
Financial assets available-for-sale, category [member] | Various [Member] | Unfavourable changes [Member] | ||||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | ||||
Other | [1] | |||
Derivative assets [Member] | Favourable changes [Member] | ||||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | ||||
Derivative financial instruments | 1,056 | 1,399 | ||
Derivative assets [Member] | Option pricing model [member] | Interest rate volatility [Member] | ||||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | ||||
Interest rate derivatives | (19) | |||
Derivative assets [Member] | Option pricing model [member] | Interest rate volatility [Member] | Favourable changes [Member] | ||||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | ||||
Interest rate derivatives | [1] | 1,056 | 1,399 | |
Derivative assets [Member] | Option pricing model [member] | Interest rate volatility [Member] | Unfavourable changes [Member] | ||||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | ||||
Interest rate derivatives | [1] | 11 | (3) | |
Derivative assets [Member] | Option pricing model [member] | Gross carrying amount [member] | Interest rate volatility [Member] | ||||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | ||||
Interest rate derivatives | (3) | |||
Discounted cash flow [member] | Financial assets at fair value through profit or loss, category [member] | Underlying asset/net asset value (incl. property prices) [Member] | Broker quotes [Member] | ||||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | ||||
Unlisted equities and debt securities, property partnerships in the life funds | (32) | |||
Discounted cash flow [member] | Financial assets at fair value through profit or loss, category [member] | Underlying asset/net asset value (incl. property prices) [Member] | Favourable changes [Member] | Broker quotes [Member] | ||||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | ||||
Unlisted equities and debt securities, property partnerships in the life funds | [1] | 1,746 | 1,501 | |
Discounted cash flow [member] | Financial assets at fair value through profit or loss, category [member] | Underlying asset/net asset value (incl. property prices) [Member] | Unfavourable changes [Member] | Broker quotes [Member] | ||||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | ||||
Unlisted equities and debt securities, property partnerships in the life funds | [1] | 26 | ||
Discounted cash flow [member] | Financial assets at fair value through profit or loss, category [member] | Underlying asset/net asset value (incl. property prices) [Member] | Gross carrying amount [member] | Broker quotes [Member] | ||||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | ||||
Unlisted equities and debt securities, property partnerships in the life funds | (76) | |||
Consensus pricing [member] | Financial assets available-for-sale, category [member] | Lead manager [Member] | Favourable changes [Member] | Broker quotes [Member] | ||||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | ||||
Asset-backed securities | [1] | 92 | 133 | |
Consensus pricing [member] | Financial assets available-for-sale, category [member] | Lead manager [Member] | Unfavourable changes [Member] | Broker quotes [Member] | ||||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | ||||
Asset-backed securities | [1] | |||
Consensus pricing [member] | Financial assets available-for-sale, category [member] | Lead manager [Member] | Gross carrying amount [member] | Broker quotes [Member] | ||||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | ||||
Asset-backed securities | £ (4) | |||
[1] | Where the exposure to an unobservable input is managed on a net basis, only the net impact is shown in the table. | |||
[2] | Underlying asset/net asset values represent fair value. |
FINANCIAL INSTRUMENTS (Detai240
FINANCIAL INSTRUMENTS (Details) - Schedule of Valuation Hierarchy for Financial Assets - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
FINANCIAL INSTRUMENTS (Details) - Schedule of Valuation Hierarchy for Financial Assets [Line Items] | |||
Loans and advances to customers | £ 472,498 | £ 457,958 | |
Loans and advances to banks | 6,611 | 26,902 | £ 25,117 |
Debt securities | 3,643 | 3,397 | |
Loans and receivables, category [member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Valuation Hierarchy for Financial Assets [Line Items] | |||
Loans and advances to customers | 472,498 | 457,958 | |
Loans and advances to banks | 6,611 | 26,902 | |
Debt securities | 3,643 | 3,397 | |
Loans and receivables, category [member] | Level 2 of fair value hierarchy [member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Valuation Hierarchy for Financial Assets [Line Items] | |||
Loans and advances to customers | 16,832 | ||
Loans and advances to banks | 771 | ||
Debt securities | 3,571 | 3,288 | |
Loans and receivables, category [member] | Level 3 of fair value hierarchy [member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Valuation Hierarchy for Financial Assets [Line Items] | |||
Loans and advances to customers | 455,253 | 457,461 | |
Loans and advances to banks | 5,793 | 26,812 | |
Debt securities | 15 | 15 | |
Reverse Repurchase Agreement [Member] | Level 2 of fair value hierarchy [member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Valuation Hierarchy for Financial Assets [Line Items] | |||
Loans and advances to customers | 16,832 | ||
Loans and advances to banks | 771 | ||
Reverse Repurchase Agreement [Member] | Level 3 of fair value hierarchy [member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Valuation Hierarchy for Financial Assets [Line Items] | |||
Loans and advances to customers | 8,304 | ||
Loans and advances to banks | 902 | ||
Gross carrying amount [member] | Loans and receivables, category [member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Valuation Hierarchy for Financial Assets [Line Items] | |||
Loans and advances to customers | 472,498 | 457,958 | |
Loans and advances to banks | 6,611 | 26,902 | |
Debt securities | 3,643 | 3,397 | |
Gross carrying amount [member] | Reverse Repurchase Agreement [Member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Valuation Hierarchy for Financial Assets [Line Items] | |||
Loans and advances to customers | 16,832 | 8,304 | |
Loans and advances to banks | 771 | 902 | |
At fair value [member] | Loans and receivables, category [member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Valuation Hierarchy for Financial Assets [Line Items] | |||
Loans and advances to customers | 472,085 | 457,461 | |
Loans and advances to banks | 6,564 | 26,812 | |
Debt securities | 3,586 | 3,303 | |
At fair value [member] | Reverse Repurchase Agreement [Member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Valuation Hierarchy for Financial Assets [Line Items] | |||
Loans and advances to customers | 16,832 | 8,304 | |
Loans and advances to banks | 771 | 902 | |
Unimpaired [Member] | Loans and receivables, category [member] | Level 2 of fair value hierarchy [member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Valuation Hierarchy for Financial Assets [Line Items] | |||
Loans and advances to customers | 16,832 | ||
Unimpaired [Member] | Loans and receivables, category [member] | Level 3 of fair value hierarchy [member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Valuation Hierarchy for Financial Assets [Line Items] | |||
Loans and advances to customers | 450,444 | 450,986 | |
Unimpaired [Member] | Gross carrying amount [member] | Loans and receivables, category [member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Valuation Hierarchy for Financial Assets [Line Items] | |||
Loans and advances to customers | 467,670 | 451,339 | |
Unimpaired [Member] | At fair value [member] | Loans and receivables, category [member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Valuation Hierarchy for Financial Assets [Line Items] | |||
Loans and advances to customers | 467,276 | 450,986 | |
Financial assets impaired [member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Valuation Hierarchy for Financial Assets [Line Items] | |||
Loans and advances to customers | 4,169 | 4,320 | |
Financial assets impaired [member] | Loans and receivables, category [member] | Level 3 of fair value hierarchy [member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Valuation Hierarchy for Financial Assets [Line Items] | |||
Loans and advances to customers | 4,809 | 6,475 | |
Financial assets impaired [member] | Gross carrying amount [member] | Loans and receivables, category [member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Valuation Hierarchy for Financial Assets [Line Items] | |||
Loans and advances to customers | 4,828 | 6,619 | |
Financial assets impaired [member] | At fair value [member] | Loans and receivables, category [member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Valuation Hierarchy for Financial Assets [Line Items] | |||
Loans and advances to customers | £ 4,809 | £ 6,475 |
FINANCIAL INSTRUMENTS (Detai241
FINANCIAL INSTRUMENTS (Details) - Schedule of Valuation Hierarchy for Financial Liabilities - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
FINANCIAL INSTRUMENTS (Details) - Schedule of Valuation Hierarchy for Financial Liabilities [Line Items] | |||
Deposits from banks | £ 29,804 | £ 16,384 | |
Customer deposits | 418,124 | 415,460 | |
Debt securities in issue | 72,450 | 76,314 | |
Subordinated liabilities | 17,922 | 19,831 | £ 23,312 |
Level 2 of fair value hierarchy [member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Valuation Hierarchy for Financial Liabilities [Line Items] | |||
Deposits from banks | 29,798 | 16,395 | |
Customer deposits | 411,591 | 408,571 | |
Debt securities in issue | 75,756 | 79,434 | |
Subordinated liabilities | 21,398 | 22,395 | |
Level 2 of fair value hierarchy [member] | Repurchase Agreement [Member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Valuation Hierarchy for Financial Liabilities [Line Items] | |||
Deposits from banks | 23,175 | 7,279 | |
Customer deposits | 2,638 | 2,462 | |
Level 3 of fair value hierarchy [member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Valuation Hierarchy for Financial Liabilities [Line Items] | |||
Customer deposits | 6,850 | 7,919 | |
Debt securities in issue | 216 | ||
Gross carrying amount [member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Valuation Hierarchy for Financial Liabilities [Line Items] | |||
Deposits from banks | 29,804 | 16,384 | |
Customer deposits | 418,124 | 415,460 | |
Debt securities in issue | 72,450 | 76,314 | |
Subordinated liabilities | 17,922 | 19,831 | |
Gross carrying amount [member] | Repurchase Agreement [Member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Valuation Hierarchy for Financial Liabilities [Line Items] | |||
Deposits from banks | 23,175 | 7,279 | |
Customer deposits | 2,638 | 2,462 | |
At fair value [member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Valuation Hierarchy for Financial Liabilities [Line Items] | |||
Deposits from banks | 29,798 | 16,395 | |
Customer deposits | 418,441 | 416,490 | |
Debt securities in issue | 75,756 | 79,650 | |
Subordinated liabilities | 21,398 | 22,395 | |
At fair value [member] | Repurchase Agreement [Member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Valuation Hierarchy for Financial Liabilities [Line Items] | |||
Deposits from banks | 23,175 | 7,279 | |
Customer deposits | £ 2,638 | £ 2,462 |
TRANSFERS OF FINANCIAL ASSET242
TRANSFERS OF FINANCIAL ASSETS (Details) - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of transferred financial assets that are not derecognised in their entirety [text block] [Abstract] | ||
Fair value of associated financial liabilities | £ 21,582 | £ 26,435 |
TRANSFERS OF FINANCIAL ASSET243
TRANSFERS OF FINANCIAL ASSETS (Details) - Schedule of Transfered Assets and Liabilities - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | |
TRANSFERS OF FINANCIAL ASSETS (Details) - Schedule of Transfered Assets and Liabilities [Line Items] | |||
Trading and other financial assets at fair value through profit or loss | £ 162,878 | £ 151,174 | |
Available-for-sale financial assets | 42,098 | 56,524 | |
Loans and receivables: | |||
Loans and advances to customers | 472,498 | 457,958 | |
Repurchase agreement & stock lending [Member] | Carrying value of transferred assets [Member] | |||
TRANSFERS OF FINANCIAL ASSETS (Details) - Schedule of Transfered Assets and Liabilities [Line Items] | |||
Trading and other financial assets at fair value through profit or loss | 9,946 | 10,256 | |
Available-for-sale financial assets | 19,359 | 24,681 | |
Loans and receivables: | |||
Loans and advances to customers | 583 | ||
Repurchase agreement & stock lending [Member] | Carrying value of associated liabilities [Member] | |||
TRANSFERS OF FINANCIAL ASSETS (Details) - Schedule of Transfered Assets and Liabilities [Line Items] | |||
Trading and other financial assets at fair value through profit or loss | 3,257 | 3,380 | |
Available-for-sale financial assets | 16,753 | 21,809 | |
Securitisation programme [Member] | Carrying value of transferred assets [Member] | |||
Loans and receivables: | |||
Loans and advances to customers | [1] | 35,475 | 52,184 |
Securitisation programme [Member] | Carrying value of associated liabilities [Member] | |||
Loans and receivables: | |||
Loans and advances to customers | [1] | £ 3,660 | £ 7,253 |
[1] | The carrying value of associated liabilities excludes securitisation notes held by the Group of 21,582 million (31 December 2016: 26,435 million). |
OFFSETTING OF FINANCIAL ASSE244
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES (Details) - Schedule of Offsetting of Financial Assets and Liabilities - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Financial assets | ||||||
Trading and other financial assets at fair value through profit or loss | £ 162,878 | £ 151,174 | ||||
Derivative financial instruments | 25,834 | 36,138 | ||||
Loans and advances to customers | 472,498 | 457,958 | ||||
Debt securities | 3,643 | 3,397 | ||||
Available-for-sale financial assets | 42,098 | 56,524 | ||||
Loans and advances to banks | 6,611 | 26,902 | £ 25,117 | |||
Financial liabilities | ||||||
Deposits from banks: | 29,804 | 16,384 | ||||
Customer deposits: | 418,124 | 415,460 | ||||
Trading and other financial liabilities at fair value through profit or loss: | 50,877 | 54,504 | ||||
Derivative financial instruments | 26,124 | 34,924 | ||||
Financial liabilities at fair value through profit or loss, category [member] | ||||||
Financial liabilities | ||||||
Trading and other financial liabilities at fair value through profit or loss: | [1] | |||||
Financial assets available-for-sale, category [member] | ||||||
Financial assets | ||||||
Available-for-sale financial assets | 42,098 | 56,524 | ||||
Gross assets and liabilities [Member] | ||||||
Financial assets | ||||||
Loans and advances to customers | [2] | 474,214 | ||||
Gross assets and liabilities [Member] | Deposits From Banks [Member] | ||||||
Financial liabilities | ||||||
Deposits from banks: | [2] | 29,804 | 16,384 | |||
Gross assets and liabilities [Member] | Deposits from Customers [Member] | ||||||
Financial liabilities | ||||||
Customer deposits: | [2] | 419,647 | 417,615 | |||
Gross assets and liabilities [Member] | Financial liabilities at fair value through profit or loss, category [member] | ||||||
Financial liabilities | ||||||
Trading and other financial liabilities at fair value through profit or loss: | [2] | 58,169 | 56,723 | |||
Gross assets and liabilities [Member] | Derivative liabilities [Member] | ||||||
Financial liabilities | ||||||
Derivative financial instruments | [2] | 73,352 | 90,657 | |||
Gross assets and liabilities [Member] | Financial assets at fair value through profit or loss, category [member] | ||||||
Financial assets | ||||||
Trading and other financial assets at fair value through profit or loss | [2] | 170,170 | 153,393 | |||
Gross assets and liabilities [Member] | Derivative assets [Member] | ||||||
Financial assets | ||||||
Derivative financial instruments | [2] | 72,869 | 92,390 | |||
Gross assets and liabilities [Member] | Loans and Advances to Banks [Member] | ||||||
Financial assets | ||||||
Loans and advances to banks | [2] | 6,611 | 26,902 | |||
Gross assets and liabilities [Member] | Loans and advances to customers [Member] | ||||||
Financial assets | ||||||
Loans and advances to customers | [2] | 459,594 | ||||
Gross assets and liabilities [Member] | Debt securities [member] | ||||||
Financial assets | ||||||
Debt securities | [2] | 3,643 | 3,397 | |||
Gross assets and liabilities [Member] | Financial assets available-for-sale, category [member] | ||||||
Financial assets | ||||||
Available-for-sale financial assets | [2] | 42,098 | 56,524 | |||
Gross assets and liabilities [Member] | Excluding Reverse Repurchase Agreement [Member] | ||||||
Financial assets | ||||||
Loans and advances to customers | [2] | 457,382 | ||||
Gross assets and liabilities [Member] | Excluding Reverse Repurchase Agreement [Member] | Financial assets at fair value through profit or loss, category [member] | ||||||
Financial assets | ||||||
Trading and other financial assets at fair value through profit or loss | [2] | 131,288 | 118,095 | |||
Gross assets and liabilities [Member] | Excluding Reverse Repurchase Agreement [Member] | Loans and Advances to Banks [Member] | ||||||
Financial assets | ||||||
Loans and advances to banks | [2] | 5,840 | 26,000 | |||
Gross assets and liabilities [Member] | Excluding Reverse Repurchase Agreement [Member] | Loans and advances to customers [Member] | ||||||
Financial assets | ||||||
Loans and advances to customers | [2] | 451,290 | ||||
Gross assets and liabilities [Member] | Reverse Repurchase Agreement [Member] | ||||||
Financial assets | ||||||
Loans and advances to customers | [2] | 16,832 | ||||
Gross assets and liabilities [Member] | Reverse Repurchase Agreement [Member] | Financial assets at fair value through profit or loss, category [member] | ||||||
Financial assets | ||||||
Trading and other financial assets at fair value through profit or loss | [2] | 38,882 | 35,298 | |||
Gross assets and liabilities [Member] | Reverse Repurchase Agreement [Member] | Loans and Advances to Banks [Member] | ||||||
Financial assets | ||||||
Loans and advances to banks | [2] | 771 | 902 | |||
Gross assets and liabilities [Member] | Reverse Repurchase Agreement [Member] | Loans and advances to customers [Member] | ||||||
Financial assets | ||||||
Loans and advances to customers | [2] | 8,304 | ||||
Gross assets and liabilities [Member] | Excluding Repurchase Agreement [Member] | Deposits From Banks [Member] | ||||||
Financial liabilities | ||||||
Deposits from banks: | [2] | 6,629 | 9,105 | |||
Gross assets and liabilities [Member] | Excluding Repurchase Agreement [Member] | Deposits from Customers [Member] | ||||||
Financial liabilities | ||||||
Customer deposits: | [2] | 417,009 | 415,153 | |||
Gross assets and liabilities [Member] | Excluding Repurchase Agreement [Member] | Financial liabilities at fair value through profit or loss, category [member] | ||||||
Financial liabilities | ||||||
Trading and other financial liabilities at fair value through profit or loss: | [2] | 9,499 | 12,437 | |||
Gross assets and liabilities [Member] | Repurchase Agreement [Member] | Deposits From Banks [Member] | ||||||
Financial liabilities | ||||||
Deposits from banks: | [2] | 23,175 | 7,279 | |||
Gross assets and liabilities [Member] | Repurchase Agreement [Member] | Deposits from Customers [Member] | ||||||
Financial liabilities | ||||||
Customer deposits: | [2] | 2,638 | 2,462 | |||
Gross assets and liabilities [Member] | Repurchase Agreement [Member] | Financial liabilities at fair value through profit or loss, category [member] | ||||||
Financial liabilities | ||||||
Trading and other financial liabilities at fair value through profit or loss: | [2] | 48,670 | 44,286 | |||
Offset [Member] | ||||||
Financial assets | ||||||
Loans and advances to customers | [3] | (1,716) | ||||
Offset [Member] | Deposits from Customers [Member] | ||||||
Financial liabilities | ||||||
Customer deposits: | [3] | (1,523) | (2,155) | |||
Offset [Member] | Financial liabilities at fair value through profit or loss, category [member] | ||||||
Financial liabilities | ||||||
Trading and other financial liabilities at fair value through profit or loss: | [3] | (7,292) | (2,219) | [2] | ||
Offset [Member] | Derivative liabilities [Member] | ||||||
Financial liabilities | ||||||
Derivative financial instruments | [3] | (47,228) | (55,733) | [2] | ||
Offset [Member] | Financial assets at fair value through profit or loss, category [member] | ||||||
Financial assets | ||||||
Trading and other financial assets at fair value through profit or loss | [3] | (7,292) | (2,219) | |||
Offset [Member] | Derivative assets [Member] | ||||||
Financial assets | ||||||
Derivative financial instruments | [3] | (47,035) | (56,252) | |||
Offset [Member] | Loans and advances to customers [Member] | ||||||
Financial assets | ||||||
Loans and advances to customers | [3] | (1,636) | ||||
Offset [Member] | Excluding Reverse Repurchase Agreement [Member] | ||||||
Financial assets | ||||||
Loans and advances to customers | [3] | (1,716) | ||||
Offset [Member] | Excluding Reverse Repurchase Agreement [Member] | Loans and advances to customers [Member] | ||||||
Financial assets | ||||||
Loans and advances to customers | [3] | (1,636) | ||||
Offset [Member] | Reverse Repurchase Agreement [Member] | Financial assets at fair value through profit or loss, category [member] | ||||||
Financial assets | ||||||
Trading and other financial assets at fair value through profit or loss | [3] | (7,292) | (2,219) | |||
Offset [Member] | Excluding Repurchase Agreement [Member] | Deposits from Customers [Member] | ||||||
Financial liabilities | ||||||
Customer deposits: | [3] | (1,523) | (2,155) | |||
Offset [Member] | Repurchase Agreement [Member] | Financial liabilities at fair value through profit or loss, category [member] | ||||||
Financial liabilities | ||||||
Trading and other financial liabilities at fair value through profit or loss: | [3] | (7,292) | (2,219) | |||
Net amounts presented in the balance sheet [Member] | ||||||
Financial assets | ||||||
Loans and advances to customers | 472,498 | |||||
Net amounts presented in the balance sheet [Member] | Deposits From Banks [Member] | ||||||
Financial liabilities | ||||||
Deposits from banks: | 29,804 | 16,384 | ||||
Net amounts presented in the balance sheet [Member] | Deposits from Customers [Member] | ||||||
Financial liabilities | ||||||
Customer deposits: | 418,124 | 415,460 | ||||
Net amounts presented in the balance sheet [Member] | Financial liabilities at fair value through profit or loss, category [member] | ||||||
Financial liabilities | ||||||
Trading and other financial liabilities at fair value through profit or loss: | 50,877 | 54,504 | ||||
Net amounts presented in the balance sheet [Member] | Derivative liabilities [Member] | ||||||
Financial liabilities | ||||||
Derivative financial instruments | 26,124 | 34,924 | ||||
Net amounts presented in the balance sheet [Member] | Financial assets at fair value through profit or loss, category [member] | ||||||
Financial assets | ||||||
Trading and other financial assets at fair value through profit or loss | 162,878 | 151,174 | ||||
Net amounts presented in the balance sheet [Member] | Derivative assets [Member] | ||||||
Financial assets | ||||||
Derivative financial instruments | 25,834 | 36,138 | ||||
Net amounts presented in the balance sheet [Member] | Loans and Advances to Banks [Member] | ||||||
Financial assets | ||||||
Loans and advances to banks | 6,611 | 26,902 | ||||
Net amounts presented in the balance sheet [Member] | Loans and advances to customers [Member] | ||||||
Financial assets | ||||||
Loans and advances to customers | 457,958 | |||||
Net amounts presented in the balance sheet [Member] | Debt securities [member] | ||||||
Financial assets | ||||||
Debt securities | 3,643 | 3,397 | ||||
Net amounts presented in the balance sheet [Member] | Financial assets available-for-sale, category [member] | ||||||
Financial assets | ||||||
Available-for-sale financial assets | 42,098 | 56,524 | ||||
Net amounts presented in the balance sheet [Member] | Excluding Reverse Repurchase Agreement [Member] | ||||||
Financial assets | ||||||
Loans and advances to customers | 455,666 | |||||
Net amounts presented in the balance sheet [Member] | Excluding Reverse Repurchase Agreement [Member] | Financial assets at fair value through profit or loss, category [member] | ||||||
Financial assets | ||||||
Trading and other financial assets at fair value through profit or loss | 131,288 | 118,095 | ||||
Net amounts presented in the balance sheet [Member] | Excluding Reverse Repurchase Agreement [Member] | Loans and Advances to Banks [Member] | ||||||
Financial assets | ||||||
Loans and advances to banks | 5,840 | 26,000 | ||||
Net amounts presented in the balance sheet [Member] | Excluding Reverse Repurchase Agreement [Member] | Loans and advances to customers [Member] | ||||||
Financial assets | ||||||
Loans and advances to customers | 449,654 | |||||
Net amounts presented in the balance sheet [Member] | Reverse Repurchase Agreement [Member] | ||||||
Financial assets | ||||||
Loans and advances to customers | 16,832 | |||||
Net amounts presented in the balance sheet [Member] | Reverse Repurchase Agreement [Member] | Financial assets at fair value through profit or loss, category [member] | ||||||
Financial assets | ||||||
Trading and other financial assets at fair value through profit or loss | 31,590 | 33,079 | ||||
Net amounts presented in the balance sheet [Member] | Reverse Repurchase Agreement [Member] | Loans and Advances to Banks [Member] | ||||||
Financial assets | ||||||
Loans and advances to banks | 771 | 902 | ||||
Net amounts presented in the balance sheet [Member] | Reverse Repurchase Agreement [Member] | Loans and advances to customers [Member] | ||||||
Financial assets | ||||||
Loans and advances to customers | 8,304 | |||||
Net amounts presented in the balance sheet [Member] | Excluding Repurchase Agreement [Member] | Deposits From Banks [Member] | ||||||
Financial liabilities | ||||||
Deposits from banks: | 6,629 | 9,105 | ||||
Net amounts presented in the balance sheet [Member] | Excluding Repurchase Agreement [Member] | Deposits from Customers [Member] | ||||||
Financial liabilities | ||||||
Customer deposits: | 415,486 | 412,998 | ||||
Net amounts presented in the balance sheet [Member] | Excluding Repurchase Agreement [Member] | Financial liabilities at fair value through profit or loss, category [member] | ||||||
Financial liabilities | ||||||
Trading and other financial liabilities at fair value through profit or loss: | 9,499 | 12,437 | ||||
Net amounts presented in the balance sheet [Member] | Repurchase Agreement [Member] | Deposits From Banks [Member] | ||||||
Financial liabilities | ||||||
Deposits from banks: | 23,175 | 7,279 | ||||
Net amounts presented in the balance sheet [Member] | Repurchase Agreement [Member] | Deposits from Customers [Member] | ||||||
Financial liabilities | ||||||
Customer deposits: | 2,638 | 2,462 | ||||
Net amounts presented in the balance sheet [Member] | Repurchase Agreement [Member] | Financial liabilities at fair value through profit or loss, category [member] | ||||||
Financial liabilities | ||||||
Trading and other financial liabilities at fair value through profit or loss: | 41,378 | 42,067 | ||||
Cash collateral received/pledged [Member] | ||||||
Financial assets | ||||||
Loans and advances to customers | [4] | (1,656) | ||||
Cash collateral received/pledged [Member] | Deposits From Banks [Member] | ||||||
Financial liabilities | ||||||
Deposits from banks: | [4] | (4,860) | (5,080) | |||
Cash collateral received/pledged [Member] | Deposits from Customers [Member] | ||||||
Financial liabilities | ||||||
Customer deposits: | [4] | (1,205) | (1,391) | |||
Cash collateral received/pledged [Member] | Derivative liabilities [Member] | ||||||
Financial liabilities | ||||||
Derivative financial instruments | [4] | (3,949) | (4,620) | |||
Cash collateral received/pledged [Member] | Derivative assets [Member] | ||||||
Financial assets | ||||||
Derivative financial instruments | [4] | (5,419) | (6,472) | |||
Cash collateral received/pledged [Member] | Loans and Advances to Banks [Member] | ||||||
Financial assets | ||||||
Loans and advances to banks | [4] | (2,939) | (2,826) | |||
Cash collateral received/pledged [Member] | Loans and advances to customers [Member] | ||||||
Financial assets | ||||||
Loans and advances to customers | [4] | (1,793) | ||||
Cash collateral received/pledged [Member] | Excluding Reverse Repurchase Agreement [Member] | ||||||
Financial assets | ||||||
Loans and advances to customers | [4] | (1,656) | ||||
Cash collateral received/pledged [Member] | Excluding Reverse Repurchase Agreement [Member] | Loans and Advances to Banks [Member] | ||||||
Financial assets | ||||||
Loans and advances to banks | [4] | (2,293) | (2,826) | |||
Cash collateral received/pledged [Member] | Excluding Reverse Repurchase Agreement [Member] | Loans and advances to customers [Member] | ||||||
Financial assets | ||||||
Loans and advances to customers | [4] | (1,793) | ||||
Cash collateral received/pledged [Member] | Reverse Repurchase Agreement [Member] | Loans and Advances to Banks [Member] | ||||||
Financial assets | ||||||
Loans and advances to banks | (646) | |||||
Cash collateral received/pledged [Member] | Excluding Repurchase Agreement [Member] | Deposits From Banks [Member] | ||||||
Financial liabilities | ||||||
Deposits from banks: | [4] | (4,860) | (5,080) | |||
Cash collateral received/pledged [Member] | Excluding Repurchase Agreement [Member] | Deposits from Customers [Member] | ||||||
Financial liabilities | ||||||
Customer deposits: | [4] | (1,205) | (1,391) | |||
Non-cash collateral received/pledged [Member] | ||||||
Financial assets | ||||||
Loans and advances to customers | [4] | (23,862) | ||||
Non-cash collateral received/pledged [Member] | Deposits From Banks [Member] | ||||||
Financial liabilities | ||||||
Deposits from banks: | [4] | (23,175) | (7,974) | |||
Non-cash collateral received/pledged [Member] | Deposits from Customers [Member] | ||||||
Financial liabilities | ||||||
Customer deposits: | [4] | (9,668) | (8,793) | |||
Non-cash collateral received/pledged [Member] | Financial liabilities at fair value through profit or loss, category [member] | ||||||
Financial liabilities | ||||||
Trading and other financial liabilities at fair value through profit or loss: | [4] | (41,378) | (42,067) | |||
Non-cash collateral received/pledged [Member] | Derivative liabilities [Member] | ||||||
Financial liabilities | ||||||
Derivative financial instruments | [4] | (17,459) | (24,820) | |||
Non-cash collateral received/pledged [Member] | Financial assets at fair value through profit or loss, category [member] | ||||||
Financial assets | ||||||
Trading and other financial assets at fair value through profit or loss | [4] | (34,912) | (36,344) | |||
Non-cash collateral received/pledged [Member] | Derivative assets [Member] | ||||||
Financial assets | ||||||
Derivative financial instruments | [4] | (13,807) | (19,906) | |||
Non-cash collateral received/pledged [Member] | Loans and Advances to Banks [Member] | ||||||
Financial assets | ||||||
Loans and advances to banks | [4] | (125) | (902) | |||
Non-cash collateral received/pledged [Member] | Loans and advances to customers [Member] | ||||||
Financial assets | ||||||
Loans and advances to customers | [4] | (14,635) | ||||
Non-cash collateral received/pledged [Member] | Financial assets available-for-sale, category [member] | ||||||
Financial assets | ||||||
Available-for-sale financial assets | [4] | (16,751) | (21,475) | |||
Non-cash collateral received/pledged [Member] | Excluding Reverse Repurchase Agreement [Member] | ||||||
Financial assets | ||||||
Loans and advances to customers | [4] | (7,030) | ||||
Non-cash collateral received/pledged [Member] | Excluding Reverse Repurchase Agreement [Member] | Financial assets at fair value through profit or loss, category [member] | ||||||
Financial assets | ||||||
Trading and other financial assets at fair value through profit or loss | [4] | (3,322) | (3,265) | |||
Non-cash collateral received/pledged [Member] | Excluding Reverse Repurchase Agreement [Member] | Loans and advances to customers [Member] | ||||||
Financial assets | ||||||
Loans and advances to customers | [4] | (6,331) | ||||
Non-cash collateral received/pledged [Member] | Reverse Repurchase Agreement [Member] | ||||||
Financial assets | ||||||
Loans and advances to customers | [4] | (16,832) | ||||
Non-cash collateral received/pledged [Member] | Reverse Repurchase Agreement [Member] | Financial assets at fair value through profit or loss, category [member] | ||||||
Financial assets | ||||||
Trading and other financial assets at fair value through profit or loss | [4] | (31,590) | (33,079) | |||
Non-cash collateral received/pledged [Member] | Reverse Repurchase Agreement [Member] | Loans and Advances to Banks [Member] | ||||||
Financial assets | ||||||
Loans and advances to banks | [4] | (125) | (902) | |||
Non-cash collateral received/pledged [Member] | Reverse Repurchase Agreement [Member] | Loans and advances to customers [Member] | ||||||
Financial assets | ||||||
Loans and advances to customers | (8,304) | |||||
Non-cash collateral received/pledged [Member] | Excluding Repurchase Agreement [Member] | Deposits From Banks [Member] | ||||||
Financial liabilities | ||||||
Deposits from banks: | [4] | (695) | ||||
Non-cash collateral received/pledged [Member] | Excluding Repurchase Agreement [Member] | Deposits from Customers [Member] | ||||||
Financial liabilities | ||||||
Customer deposits: | [4] | (7,030) | (6,331) | |||
Non-cash collateral received/pledged [Member] | Repurchase Agreement [Member] | Deposits From Banks [Member] | ||||||
Financial liabilities | ||||||
Deposits from banks: | [4] | (23,175) | (7,279) | |||
Non-cash collateral received/pledged [Member] | Repurchase Agreement [Member] | Deposits from Customers [Member] | ||||||
Financial liabilities | ||||||
Customer deposits: | (2,638) | [4] | (2,462) | |||
Non-cash collateral received/pledged [Member] | Repurchase Agreement [Member] | Financial liabilities at fair value through profit or loss, category [member] | ||||||
Financial liabilities | ||||||
Trading and other financial liabilities at fair value through profit or loss: | [4] | (41,378) | (42,067) | |||
Potential net amounts if offset of related amounts permitted [Member] | ||||||
Financial assets | ||||||
Loans and advances to customers | 446,980 | |||||
Potential net amounts if offset of related amounts permitted [Member] | Deposits From Banks [Member] | ||||||
Financial liabilities | ||||||
Deposits from banks: | 1,769 | 3,330 | ||||
Potential net amounts if offset of related amounts permitted [Member] | Deposits from Customers [Member] | ||||||
Financial liabilities | ||||||
Customer deposits: | 407,251 | 405,276 | ||||
Potential net amounts if offset of related amounts permitted [Member] | Financial liabilities at fair value through profit or loss, category [member] | ||||||
Financial liabilities | ||||||
Trading and other financial liabilities at fair value through profit or loss: | 9,499 | 12,437 | ||||
Potential net amounts if offset of related amounts permitted [Member] | Derivative liabilities [Member] | ||||||
Financial liabilities | ||||||
Derivative financial instruments | 4,716 | 5,484 | ||||
Potential net amounts if offset of related amounts permitted [Member] | Financial assets at fair value through profit or loss, category [member] | ||||||
Financial assets | ||||||
Trading and other financial assets at fair value through profit or loss | 127,966 | 114,830 | ||||
Potential net amounts if offset of related amounts permitted [Member] | Derivative assets [Member] | ||||||
Financial assets | ||||||
Derivative financial instruments | 6,608 | 9,760 | ||||
Potential net amounts if offset of related amounts permitted [Member] | Loans and Advances to Banks [Member] | ||||||
Financial assets | ||||||
Loans and advances to banks | 3,547 | 23,174 | ||||
Potential net amounts if offset of related amounts permitted [Member] | Loans and advances to customers [Member] | ||||||
Financial assets | ||||||
Loans and advances to customers | 441,530 | |||||
Potential net amounts if offset of related amounts permitted [Member] | Debt securities [member] | ||||||
Financial assets | ||||||
Debt securities | 3,643 | 3,397 | ||||
Potential net amounts if offset of related amounts permitted [Member] | Financial assets available-for-sale, category [member] | ||||||
Financial assets | ||||||
Available-for-sale financial assets | 25,347 | 35,049 | ||||
Potential net amounts if offset of related amounts permitted [Member] | Excluding Reverse Repurchase Agreement [Member] | ||||||
Financial assets | ||||||
Loans and advances to customers | 446,980 | |||||
Potential net amounts if offset of related amounts permitted [Member] | Excluding Reverse Repurchase Agreement [Member] | Financial assets at fair value through profit or loss, category [member] | ||||||
Financial assets | ||||||
Trading and other financial assets at fair value through profit or loss | 127,966 | 114,830 | ||||
Potential net amounts if offset of related amounts permitted [Member] | Excluding Reverse Repurchase Agreement [Member] | Loans and Advances to Banks [Member] | ||||||
Financial assets | ||||||
Loans and advances to banks | 3,547 | 23,174 | ||||
Potential net amounts if offset of related amounts permitted [Member] | Excluding Reverse Repurchase Agreement [Member] | Loans and advances to customers [Member] | ||||||
Financial assets | ||||||
Loans and advances to customers | 441,530 | |||||
Potential net amounts if offset of related amounts permitted [Member] | Excluding Repurchase Agreement [Member] | Deposits From Banks [Member] | ||||||
Financial liabilities | ||||||
Deposits from banks: | 1,769 | 3,330 | ||||
Potential net amounts if offset of related amounts permitted [Member] | Excluding Repurchase Agreement [Member] | Deposits from Customers [Member] | ||||||
Financial liabilities | ||||||
Customer deposits: | 407,251 | 405,276 | ||||
Potential net amounts if offset of related amounts permitted [Member] | Excluding Repurchase Agreement [Member] | Financial liabilities at fair value through profit or loss, category [member] | ||||||
Financial liabilities | ||||||
Trading and other financial liabilities at fair value through profit or loss: | £ 9,499 | £ 12,437 | ||||
[1] | Where the exposure to an unobservable input is managed on a net basis, only the net impact is shown in the table. | |||||
[2] | After impairment allowance. | |||||
[3] | The amounts set off in the balance sheet as shown above represent derivatives and repurchase agreements with central clearing houses which meet the criteria for offsetting under IAS 32. | |||||
[4] | The Group enters into derivatives and repurchase and reverse repurchase agreements with various counterparties which are governed by industry standard master netting agreements. The Group holds and provides cash and securities collateral in respective of derivative transactions covered by these agreements. The right to set off balances under these master netting agreements or to set off cash and securities collateral only arises in the event of non-payment or default and, as a result, these arrangements do not qualify for offsetting under IAS 32. |
FINANCIAL RISK MANAGEMENT (Deta
FINANCIAL RISK MANAGEMENT (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
FINANCIAL RISK MANAGEMENT (Details) [Line Items] | |||
Other comprehensive income, net of tax, hedges of net investments in foreign operations | £ 41 | £ 695 | |
Gains (losses) on hedges of net investments in foreign operations, before tax | (11) | (2) | |
Gains (losses) on hedges of net investments in foreign operations, net of tax | (8) | (1) | |
Advances received | 2,465 | 2,870 | |
Allowance account for credit losses of financial assets | 2,201 | 2,412 | |
Asset-backed debt instruments held | 40,901 | 55,311 | |
Debt instruments issued | 72,450 | 76,314 | |
Derivative financial assets | 25,834 | 36,138 | |
Loans and advances to banks | 6,611 | 26,902 | £ 25,117 |
Loans and advances to customers | 472,498 | 457,958 | |
Net financial assets subject to offsetting, enforceable master netting arrangements or similar agreements in statement of financial position | 12,785 | 17,599 | |
Cash collateral received subject to enforceable master netting arrangement or similar agreement not set off against financial assets | 5,419 | 6,472 | |
Gross loan commitments | 129,809 | 114,168 | |
Assets obtained by taking possession of collateral or calling on other credit enhancements | 297 | 241 | |
Exposure to credit risk on loan commitments and financial guarantee contracts | 5,820 | 6,883 | |
Undated subordinated liabilities | 24 | 23 | |
Group [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) [Line Items] | |||
Debt instruments issued | (72,450) | (76,314) | |
Financial assets at fair value through profit or loss, classified as held for trading | 162,878 | 151,174 | |
Derivative financial assets | 25,834 | 36,138 | |
Loans and advances to banks | 6,611 | 26,902 | |
Loans and advances to customers | 472,498 | 457,958 | |
Not later than 1 year [member] | |||
FINANCIAL RISK MANAGEMENT (Details) [Line Items] | |||
Exposure to credit risk on loan commitments and financial guarantee contracts | 3,132 | 3,815 | |
Later than one year and not later than three years [member] | |||
FINANCIAL RISK MANAGEMENT (Details) [Line Items] | |||
Exposure to credit risk on loan commitments and financial guarantee contracts | 627 | 667 | |
Later than three years and not later than five years [member] | |||
FINANCIAL RISK MANAGEMENT (Details) [Line Items] | |||
Exposure to credit risk on loan commitments and financial guarantee contracts | 1,471 | 1,334 | |
Later than five years [member] | |||
FINANCIAL RISK MANAGEMENT (Details) [Line Items] | |||
Exposure to credit risk on loan commitments and financial guarantee contracts | 590 | 1,067 | |
Sub-Investment Grade [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) [Line Items] | |||
Asset-backed debt instruments held | 89 | 91 | |
Debt instruments issued | 9 | 5 | |
Financial assets at fair value through profit or loss, classified as held for trading | 331 | 485 | |
Derivative financial assets | 1,878 | 1,830 | |
Not Rated [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) [Line Items] | |||
Asset-backed debt instruments held | 23 | 72 | |
Debt instruments issued | 376 | ||
Financial assets at fair value through profit or loss, classified as held for trading | 1,972 | 2,006 | |
Derivative financial assets | 340 | 271 | |
Trading & other financial assets at fair value through profit or loss [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) [Line Items] | |||
Reverse repurchase agreements and cash collateral on securities borrowed | 31,590 | 33,079 | |
Financial assets pledged as collateral for liabilities or contingent liabilities | 48,765 | 45,702 | |
Retail Non-Mortgage,Impaired [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) [Line Items] | |||
Allowance account for credit losses of financial assets | 542 | 458 | |
Loans and advances to customers | 817 | 972 | |
Commercial loans [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) [Line Items] | |||
Reverse repurchase agreements and cash collateral on securities borrowed | 16,832 | 8,304 | |
Underlying Basis [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) [Line Items] | |||
Allowance account for credit losses of financial assets | 3,442 | 3,532 | |
Deposits From Banks [Member] | Gross carrying amount [member] | |||
FINANCIAL RISK MANAGEMENT (Details) [Line Items] | |||
Collateral For Facilities Granted | 23,175 | 7,279 | |
Deposits From Banks [Member] | At fair value [member] | |||
FINANCIAL RISK MANAGEMENT (Details) [Line Items] | |||
Collateral For Facilities Granted | 23,082 | 8,395 | |
Deposits from Customers [Member] | Gross carrying amount [member] | |||
FINANCIAL RISK MANAGEMENT (Details) [Line Items] | |||
Collateral For Facilities Granted | 2,638 | 2,462 | |
Deposits from Customers [Member] | At fair value [member] | |||
FINANCIAL RISK MANAGEMENT (Details) [Line Items] | |||
Collateral For Facilities Granted | 2,640 | 2,277 | |
Loans and Advances to Banks [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) [Line Items] | |||
Loans and advances to banks | 771 | 902 | |
Loans and Advances to Banks [Member] | Fair Value Of Collateral Held Against Reverse Repurchase Agreements [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) [Line Items] | |||
Loans and advances to banks | 796 | 785 | |
Reverse Repurchase Agreement [Member] | Trading & other financial assets at fair value through profit or loss [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) [Line Items] | |||
Collateral held permitted to be sold or repledged in absence of default by owner of collateral, at fair value | 39,099 | 30,850 | |
Collateral sold or repledged in absence of default by owner of collateral, at fair value | 31,281 | 27,303 | |
Reverse Repurchase Agreement [Member] | Collateralised Loan [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) [Line Items] | |||
Collateral held permitted to be sold or repledged in absence of default by owner of collateral, at fair value | 17,122 | 7,490 | |
Stock Borrowing [Member] | Trading & other financial assets at fair value through profit or loss [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) [Line Items] | |||
Collateral held permitted to be sold or repledged in absence of default by owner of collateral, at fair value | 61,469 | 47,816 | |
Collateral sold or repledged in absence of default by owner of collateral, at fair value | £ 44,432 | 16,204 | |
Mortgage Exposure [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) [Line Items] | |||
Percentage of Exposure | 64.00% | ||
Financial, Business and other Services Exposure [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) [Line Items] | |||
Percentage of Exposure | 12.00% | ||
Net Credit Risk [Member] | Group [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) [Line Items] | |||
Derivative financial assets | £ 12,785 | 17,599 | |
Cash collateral received/pledged [Member] | Group [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) [Line Items] | |||
Derivative financial assets | 5,419 | 6,472 | |
OECD Banks [Member] | Group [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) [Line Items] | |||
Derivative financial assets | 275 | 613 | |
Irrevocable Loan Commitments And Contingencies [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) [Line Items] | |||
Gross loan commitments | 63,237 | 66,240 | |
Irrevocable Loan Commitments [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) [Line Items] | |||
Fair Value Of Collateral Held | 10,956 | 10,053 | |
Fair value hedges [member] | |||
FINANCIAL RISK MANAGEMENT (Details) [Line Items] | |||
Notional principal of interest rate swaps designated as fair value hedges | 109,670 | 194,416 | |
Hedging instrument, assets | 738 | 725 | |
Gains (losses) on hedging instrument, fair value hedges | 420 | (1,946) | |
Gains (losses) on hedged item attributable to hedged risk, fair value hedges | 484 | 2,017 | |
Cash flow hedges [member] | |||
FINANCIAL RISK MANAGEMENT (Details) [Line Items] | |||
Notional principal of interest rate swaps designated as hedged cash flows | 549,099 | 384,182 | |
Hedging instrument, liabilities | 456 | 352 | |
Gain (loss) on hedge ineffectiveness recognised in profit or loss | 21 | 24 | |
Cash collateral [Member] | Reverse Repurchase Agreement [Member] | Collateralised Loan [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) [Line Items] | |||
Collateral held permitted to be sold or repledged in absence of default by owner of collateral, at fair value | 8 | ||
HBOS [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) [Line Items] | |||
Allowance account for credit losses of financial assets | 11,147 | ||
MBNA Limited [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) [Line Items] | |||
Allowance account for credit losses of financial assets | 162 | ||
Accumulated impairment [member] | |||
FINANCIAL RISK MANAGEMENT (Details) [Line Items] | |||
Fair Value Of Collateral Held | 797 | 1,160 | |
Accumulated impairment [member] | Non-Mortgage [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) [Line Items] | |||
Fair Value Of Collateral Held | 154 | 139 | |
Unimpaired [Member] | Retail Non-Mortgage [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) [Line Items] | |||
Loans and advances to customers | 49,482 | 39,864 | |
Unimpaired [Member] | Commercial loans [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) [Line Items] | |||
Loans and advances to customers | 48,120 | 36,275 | |
Financial assets impaired [member] | |||
FINANCIAL RISK MANAGEMENT (Details) [Line Items] | |||
Allowance account for credit losses of financial assets | 1,772 | 1,876 | |
Loans and advances to customers | 4,169 | 4,320 | |
Financial assets impaired [member] | Commercial loans [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) [Line Items] | |||
Allowance account for credit losses of financial assets | 242 | 401 | |
Loans and advances to customers | £ 698 | £ 204 |
FINANCIAL RISK MANAGEMENT (D246
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Functional Currency of Group Operations - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Euro Member Countries, Euro | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Functional Currency of Group Operations [Line Items] | ||
Gross exposure | £ 73 | £ 247 |
Net investment hedges | (41) | (216) |
Total structural foreign currency exposures, after net investment hedges | 32 | 31 |
United States of America, Dollars | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Functional Currency of Group Operations [Line Items] | ||
Gross exposure | 374 | 479 |
Net investment hedges | (479) | |
Total structural foreign currency exposures, after net investment hedges | 374 | |
Other Non-Sterling [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Functional Currency of Group Operations [Line Items] | ||
Gross exposure | 32 | 36 |
Total structural foreign currency exposures, after net investment hedges | £ 32 | £ 36 |
FINANCIAL RISK MANAGEMENT (D247
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Maximum Credit Exposure - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Loans and receivables: | ||||
Loans and advances to banks, net | £ 6,611 | £ 26,902 | £ 25,117 | |
Loans and advances to customers, net | 472,498 | 457,958 | ||
Debt securities, net | 3,643 | 3,397 | ||
482,752 | 488,257 | |||
Trading and other financial assets at fair value through profit or loss:3,4 | ||||
Derivative assets | 25,834 | 36,138 | ||
Assets arising from reinsurance contracts held | 602 | 714 | ||
Off-balance sheet items: | ||||
Acceptances and endorsements | 71 | 21 | ||
Other items serving as direct credit substitutes | 740 | 779 | ||
Performance bonds and other transaction-related contingencies | 2,300 | 2,237 | ||
Maximum Exposure [Member] | ||||
Loans and receivables: | ||||
Loans and advances to banks, net | [1] | 6,611 | 26,902 | |
Loans and advances to customers, net | [1] | 472,498 | 457,958 | |
Debt securities, net | [1] | 3,643 | 3,397 | |
482,752 | 488,257 | |||
Available-for-sale financial assets | [2] | 40,901 | 55,311 | |
Trading and other financial assets at fair value through profit or loss:3,4 | ||||
Loans and advances | [2],[3] | 31,590 | 33,079 | |
Debt securities, treasury and other bills | [2],[3] | 45,198 | 50,398 | |
76,788 | 83,477 | |||
Derivative assets | 25,834 | 36,138 | ||
Assets arising from reinsurance contracts held | 602 | 714 | ||
Financial guarantees | 5,820 | 6,883 | ||
Off-balance sheet items: | ||||
Acceptances and endorsements | 71 | 21 | ||
Other items serving as direct credit substitutes | 740 | 779 | ||
Performance bonds and other transaction-related contingencies | 2,300 | 2,237 | ||
Irrevocable commitments | 60,126 | 63,203 | ||
63,237 | 66,240 | |||
695,934 | 737,020 | |||
Offset [Member] | ||||
Loans and receivables: | ||||
Loans and advances to banks, net | [1],[4] | |||
Loans and advances to customers, net | [1],[4] | (7,030) | (6,331) | |
Debt securities, net | [1],[4] | |||
[4] | (7,030) | (6,331) | ||
Available-for-sale financial assets | [2],[4] | |||
Trading and other financial assets at fair value through profit or loss:3,4 | ||||
Loans and advances | [2],[3],[4] | |||
Debt securities, treasury and other bills | [2],[3],[4] | |||
[4] | ||||
Derivative assets | [4] | (13,049) | (18,539) | |
Assets arising from reinsurance contracts held | [4] | |||
Financial guarantees | [4] | |||
Off-balance sheet items: | ||||
Acceptances and endorsements | [4] | |||
Other items serving as direct credit substitutes | [4] | |||
Performance bonds and other transaction-related contingencies | [4] | |||
Irrevocable commitments | [4] | |||
[4] | ||||
[4] | (20,079) | (24,870) | ||
Net Exposure [Member] | ||||
Loans and receivables: | ||||
Loans and advances to banks, net | [1] | 6,611 | 26,902 | |
Loans and advances to customers, net | [1] | 465,468 | 451,627 | |
Debt securities, net | [1] | 3,643 | 3,397 | |
475,722 | 481,926 | |||
Available-for-sale financial assets | [2] | 40,901 | 55,311 | |
Trading and other financial assets at fair value through profit or loss:3,4 | ||||
Loans and advances | [2],[3] | 31,590 | 33,079 | |
Debt securities, treasury and other bills | [2],[3] | 45,198 | 50,398 | |
76,788 | 83,477 | |||
Derivative assets | 12,785 | 17,599 | ||
Assets arising from reinsurance contracts held | 602 | 714 | ||
Financial guarantees | 5,820 | 6,883 | ||
Off-balance sheet items: | ||||
Acceptances and endorsements | 71 | 21 | ||
Other items serving as direct credit substitutes | 740 | 779 | ||
Performance bonds and other transaction-related contingencies | 2,300 | 2,237 | ||
Irrevocable commitments | 60,126 | 63,203 | ||
63,237 | 66,240 | |||
£ 675,855 | £ 712,150 | |||
[1] | Amounts shown net of related impairment allowances. | |||
[2] | Excluding equity shares. | |||
[3] | Includes assets within the Group's unit-linked funds for which credit risk is borne by the policyholders and assets within the Group's With-Profits funds for which credit risk is largely borne by the policyholders. Consequently, the Group has no significant exposure to credit risk for such assets which back related contract liabilities. | |||
[4] | Offset items comprise deposit amounts available for offset, and amounts available for offset under master netting arrangements, that do not meet the criteria under IAS 32 to enable loans and advances and derivative assets respectively to be presented net of these balances in the financial statements. |
FINANCIAL RISK MANAGEMENT (D248
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances [Line Items] | |||
Loans and advances to banks | £ 6,611 | £ 26,902 | £ 25,117 |
Loans and advances to customers | 472,498 | 457,958 | |
Loans and advances designated at fair value through profit or loss | 162,878 | 151,174 | |
Allowance for credit losses [member] | Underlying Basis [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances [Line Items] | |||
Loans and advances to customers | (3,442) | (3,532) | |
Allowance for credit losses [member] | Underlying Basis [Member] | Retail - Mortgages [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances [Line Items] | |||
Loans and advances to customers | (1,604) | (1,696) | |
Allowance for credit losses [member] | Underlying Basis [Member] | Retail - Other [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances [Line Items] | |||
Loans and advances to customers | (655) | (458) | |
Allowance for credit losses [member] | Underlying Basis [Member] | 522110 Commercial Banking [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances [Line Items] | |||
Loans and advances to customers | (1,183) | (1,378) | |
Gross carrying amount [member] | Underlying Basis [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances [Line Items] | |||
Loans and advances to banks | 6,611 | 26,902 | |
Loans and advances to customers | 475,754 | 461,671 | |
Loans and advances designated at fair value through profit or loss | 31,590 | 33,079 | |
Gross carrying amount [member] | Underlying Basis [Member] | Retail - Mortgages [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances [Line Items] | |||
Loans and advances to customers | 305,868 | 307,963 | |
Gross carrying amount [member] | Underlying Basis [Member] | Retail - Other [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances [Line Items] | |||
Loans and advances to customers | 50,841 | 41,294 | |
Gross carrying amount [member] | Underlying Basis [Member] | 522110 Commercial Banking [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances [Line Items] | |||
Loans and advances to customers | 119,045 | 112,414 | |
Net carrying value [Member] | Underlying Basis [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances [Line Items] | |||
Loans and advances to banks | 6,611 | 26,902 | |
Loans and advances to customers | 472,498 | 457,958 | |
Loans and advances designated at fair value through profit or loss | 31,590 | 33,079 | |
Financial assets neither past due nor impaired [member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances [Line Items] | |||
Loans and advances to customers | 295,765 | 296,303 | |
Financial assets neither past due nor impaired [member] | Underlying Basis [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances [Line Items] | |||
Loans and advances to banks | 6,577 | 26,888 | |
Loans and advances to customers | 461,058 | 445,145 | |
Loans and advances designated at fair value through profit or loss | 31,590 | 33,079 | |
Financial assets neither past due nor impaired [member] | Underlying Basis [Member] | Retail - Mortgages [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances [Line Items] | |||
Loans and advances to customers | 295,765 | 296,303 | |
Financial assets neither past due nor impaired [member] | Underlying Basis [Member] | Retail - Other [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances [Line Items] | |||
Loans and advances to customers | 48,897 | 39,478 | |
Financial assets neither past due nor impaired [member] | Underlying Basis [Member] | 522110 Commercial Banking [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances [Line Items] | |||
Loans and advances to customers | 116,396 | 109,364 | |
Financial assets past due but not impaired [member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances [Line Items] | |||
Loans and advances to customers | 5,934 | 7,340 | |
Financial assets past due but not impaired [member] | Underlying Basis [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances [Line Items] | |||
Loans and advances to banks | 6 | 14 | |
Loans and advances to customers | 6,855 | 8,031 | |
Financial assets past due but not impaired [member] | Underlying Basis [Member] | Retail - Mortgages [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances [Line Items] | |||
Loans and advances to customers | 5,934 | 7,340 | |
Financial assets past due but not impaired [member] | Underlying Basis [Member] | Retail - Other [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances [Line Items] | |||
Loans and advances to customers | 585 | 386 | |
Financial assets past due but not impaired [member] | Underlying Basis [Member] | 522110 Commercial Banking [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances [Line Items] | |||
Loans and advances to customers | 336 | 305 | |
Financial assets impaired [member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances [Line Items] | |||
Loans and advances to customers | 4,169 | 4,320 | |
Financial assets impaired [member] | Underlying Basis [Member] | No Provision Required [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances [Line Items] | |||
Loans and advances to banks | 28 | ||
Loans and advances to customers | 1,646 | 1,865 | |
Financial assets impaired [member] | Underlying Basis [Member] | Provision Held [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances [Line Items] | |||
Loans and advances to customers | 6,195 | 6,630 | |
Financial assets impaired [member] | Underlying Basis [Member] | Retail - Mortgages [Member] | No Provision Required [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances [Line Items] | |||
Loans and advances to customers | 640 | 784 | |
Financial assets impaired [member] | Underlying Basis [Member] | Retail - Mortgages [Member] | Provision Held [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances [Line Items] | |||
Loans and advances to customers | 3,529 | 3,536 | |
Financial assets impaired [member] | Underlying Basis [Member] | Retail - Other [Member] | No Provision Required [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances [Line Items] | |||
Loans and advances to customers | 306 | 392 | |
Financial assets impaired [member] | Underlying Basis [Member] | Retail - Other [Member] | Provision Held [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances [Line Items] | |||
Loans and advances to customers | 1,053 | 1,038 | |
Financial assets impaired [member] | Underlying Basis [Member] | 522110 Commercial Banking [Member] | No Provision Required [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances [Line Items] | |||
Loans and advances to customers | 700 | 689 | |
Financial assets impaired [member] | Underlying Basis [Member] | 522110 Commercial Banking [Member] | Provision Held [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances [Line Items] | |||
Loans and advances to customers | 1,613 | 2,056 | |
Financial assets at fair value, class [member] | Underlying Basis [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances [Line Items] | |||
Loans and advances to customers | £ 186 | £ (181) |
FINANCIAL RISK MANAGEMENT (D249
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Allowance for Impairment Losses on Loans and Advances to Customers on an Underlying Basis - Material reconciling items [member] - Underlying Basis [Member] - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Allowance for Impairment Losses on Loans and Advances to Customers on an Underlying Basis [Line Items] | |||
Allowance for impairment losses on loans and advances to customers | £ 2,201 | £ 2,412 | |
Amounts subsequently written off, net of foreign exchange and other movements | (22,389) | (22,263) | |
Allowance for impairment losses on loans and advances to customers on an underlying basis | 3,442 | 3,532 | |
Allowance at 16 January 2009 [Member] | HBOS [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Allowance for Impairment Losses on Loans and Advances to Customers on an Underlying Basis [Line Items] | |||
Other movement to the L&A | [1] | 11,309 | 11,147 |
Charge covered by fair value adjustments [Member] | HBOS [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Allowance for Impairment Losses on Loans and Advances to Customers on an Underlying Basis [Line Items] | |||
Other movement to the L&A | £ 12,321 | £ 12,236 | |
[1] | Comprises an allowance in respect of HBOS (11,147 million) and, in 2017, MBNA (162 million). These amounts impact the impairment allowance on an underlying basis but not on a statutory basis. |
FINANCIAL RISK MANAGEMENT (D250
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | |||
Loans and advances to banks | £ 6,611 | £ 26,902 | £ 25,117 |
Loans and advances to customers | 472,498 | 457,958 | |
Loans and advances designated at fair value through profit or loss | 162,878 | 151,174 | |
Loans and Advances to Banks [Member] | Good Quality [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | |||
Loans and advances to banks | 6,351 | 26,745 | |
Loans and Advances to Banks [Member] | Satisfactory Quality [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | |||
Loans and advances to banks | 198 | 87 | |
Loans and Advances to Banks [Member] | Lower Quality [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | |||
Loans and advances to banks | 28 | 3 | |
Loans and Advances to Banks [Member] | Below Standard, But Not Impaired [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | |||
Loans and advances to banks | 53 | ||
Loans and Advances to Banks [Member] | Financial assets neither past due nor impaired [member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | |||
Loans and advances to banks | 6,577 | 26,888 | |
Loans and advances designated at fair value through profit or loss [Member] | Good Quality [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | |||
Loans and advances designated at fair value through profit or loss | 31,548 | 33,049 | |
Loans and advances designated at fair value through profit or loss [Member] | Satisfactory Quality [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | |||
Loans and advances designated at fair value through profit or loss | 42 | 30 | |
Loans and advances designated at fair value through profit or loss [Member] | Financial assets neither past due nor impaired [member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | |||
Loans and advances designated at fair value through profit or loss | 31,590 | 33,079 | |
Retail - Mortgages [Member] | Loans and advances to customers [Member] | Good Quality [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | |||
Loans and advances to customers | 294,748 | 295,286 | |
Retail - Mortgages [Member] | Loans and advances to customers [Member] | Satisfactory Quality [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | |||
Loans and advances to customers | 790 | 814 | |
Retail - Mortgages [Member] | Loans and advances to customers [Member] | Lower Quality [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | |||
Loans and advances to customers | 32 | 39 | |
Retail - Mortgages [Member] | Loans and advances to customers [Member] | Below Standard, But Not Impaired [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | |||
Loans and advances to customers | 195 | 164 | |
Retail - Mortgages [Member] | Loans and advances to customers [Member] | Financial assets neither past due nor impaired [member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | |||
Loans and advances to customers | 295,765 | 296,303 | |
Retail - Other [Member] | Loans and advances to customers [Member] | Good Quality [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | |||
Loans and advances to customers | 43,145 | 34,195 | |
Retail - Other [Member] | Loans and advances to customers [Member] | Satisfactory Quality [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | |||
Loans and advances to customers | 4,770 | 4,479 | |
Retail - Other [Member] | Loans and advances to customers [Member] | Lower Quality [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | |||
Loans and advances to customers | 286 | 387 | |
Retail - Other [Member] | Loans and advances to customers [Member] | Below Standard, But Not Impaired [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | |||
Loans and advances to customers | 696 | 417 | |
Retail - Other [Member] | Loans and advances to customers [Member] | Financial assets neither past due nor impaired [member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | |||
Loans and advances to customers | 48,897 | 39,478 | |
Commercial [Member] | Loans and advances to customers [Member] | Good Quality [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | |||
Loans and advances to customers | 81,121 | 72,083 | |
Commercial [Member] | Loans and advances to customers [Member] | Satisfactory Quality [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | |||
Loans and advances to customers | 30,154 | 30,433 | |
Commercial [Member] | Loans and advances to customers [Member] | Lower Quality [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | |||
Loans and advances to customers | 4,807 | 6,433 | |
Commercial [Member] | Loans and advances to customers [Member] | Below Standard, But Not Impaired [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | |||
Loans and advances to customers | 314 | 415 | |
Commercial [Member] | Loans and advances to customers [Member] | Financial assets neither past due nor impaired [member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | |||
Loans and advances to customers | 116,396 | 109,364 | |
Total [Member] | Loans and advances to customers [Member] | Financial assets neither past due nor impaired [member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | |||
Loans and advances to customers | £ 461,058 | £ 445,145 |
FINANCIAL RISK MANAGEMENT (D251
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Past Due But Not Impaired - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Zero to Thirty Days [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Past Due But Not Impaired [Line Items] | ||
Loans And advances to banks | £ 6 | £ 14 |
Loans and advances to customers | 3,761 | 3,989 |
Thirty to Sixty Days [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Past Due But Not Impaired [Line Items] | ||
Loans and advances to customers | 1,236 | 1,685 |
Sixty to Ninety Days [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Past Due But Not Impaired [Line Items] | ||
Loans and advances to customers | 801 | 1,061 |
Ninety to One Hundred Eighty Days [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Past Due But Not Impaired [Line Items] | ||
Loans and advances to customers | 988 | 1,255 |
Over One Hundred Eighty Days [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Past Due But Not Impaired [Line Items] | ||
Loans and advances to customers | 69 | 41 |
Financial assets past due but not impaired [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Past Due But Not Impaired [Line Items] | ||
Loans And advances to banks | 6 | 14 |
Loans and advances to customers | 6,855 | 8,031 |
Retail - Mortgages [Member] | Zero to Thirty Days [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Past Due But Not Impaired [Line Items] | ||
Loans and advances to customers | 3,057 | 3,547 |
Retail - Mortgages [Member] | Thirty to Sixty Days [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Past Due But Not Impaired [Line Items] | ||
Loans and advances to customers | 1,115 | 1,573 |
Retail - Mortgages [Member] | Sixty to Ninety Days [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Past Due But Not Impaired [Line Items] | ||
Loans and advances to customers | 785 | 985 |
Retail - Mortgages [Member] | Ninety to One Hundred Eighty Days [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Past Due But Not Impaired [Line Items] | ||
Loans and advances to customers | 977 | 1,235 |
Retail - Mortgages [Member] | Financial assets past due but not impaired [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Past Due But Not Impaired [Line Items] | ||
Loans and advances to customers | 5,934 | 7,340 |
Retail - Other [Member] | Zero to Thirty Days [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Past Due But Not Impaired [Line Items] | ||
Loans and advances to customers | 458 | 285 |
Retail - Other [Member] | Thirty to Sixty Days [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Past Due But Not Impaired [Line Items] | ||
Loans and advances to customers | 111 | 75 |
Retail - Other [Member] | Sixty to Ninety Days [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Past Due But Not Impaired [Line Items] | ||
Loans and advances to customers | 3 | 2 |
Retail - Other [Member] | Ninety to One Hundred Eighty Days [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Past Due But Not Impaired [Line Items] | ||
Loans and advances to customers | 3 | 6 |
Retail - Other [Member] | Over One Hundred Eighty Days [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Past Due But Not Impaired [Line Items] | ||
Loans and advances to customers | 10 | 18 |
Retail - Other [Member] | Financial assets past due but not impaired [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Past Due But Not Impaired [Line Items] | ||
Loans and advances to customers | 585 | 386 |
Commercial [Member] | Zero to Thirty Days [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Past Due But Not Impaired [Line Items] | ||
Loans and advances to customers | 246 | 157 |
Commercial [Member] | Thirty to Sixty Days [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Past Due But Not Impaired [Line Items] | ||
Loans and advances to customers | 10 | 37 |
Commercial [Member] | Sixty to Ninety Days [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Past Due But Not Impaired [Line Items] | ||
Loans and advances to customers | 13 | 74 |
Commercial [Member] | Ninety to One Hundred Eighty Days [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Past Due But Not Impaired [Line Items] | ||
Loans and advances to customers | 8 | 14 |
Commercial [Member] | Over One Hundred Eighty Days [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Past Due But Not Impaired [Line Items] | ||
Loans and advances to customers | 59 | 23 |
Commercial [Member] | Financial assets past due but not impaired [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Past Due But Not Impaired [Line Items] | ||
Loans and advances to customers | £ 336 | £ 305 |
FINANCIAL RISK MANAGEMENT (D252
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Debt Securities Classified as Loans and Receivables - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | |
Asset-backed securities: | |||
Asset-backed securities | £ 40,901 | £ 55,311 | |
Corporate and other debt securities | 4,615 | 6,030 | |
Total debt securities classified as loans and receivables | 3,643 | 3,397 | |
Loans and receivables, category [member] | |||
Asset-backed securities: | |||
Asset-backed securities | 3,626 | 3,379 | |
Corporate and other debt securities | 43 | 94 | |
Total debt securities classified as loans and receivables | 3,643 | 3,397 | |
Investment Grade [Member] | |||
Asset-backed securities: | |||
Total debt securities classified as loans and receivables | 27,732 | 25,219 | |
Investment Grade [Member] | Loans and receivables, category [member] | |||
Asset-backed securities: | |||
Asset-backed securities | [1] | 3,530 | 3,281 |
Corporate and other debt securities | [1] | 27 | 29 |
Other [Member] | Loans and receivables, category [member] | |||
Asset-backed securities: | |||
Asset-backed securities | [2] | 96 | 98 |
Corporate and other debt securities | [2] | 16 | 65 |
Mortgages [member] | Loans and receivables, category [member] | |||
Asset-backed securities: | |||
Asset-backed securities | 2,366 | 2,089 | |
Mortgages [member] | Investment Grade [Member] | Loans and receivables, category [member] | |||
Asset-backed securities: | |||
Asset-backed securities | [1] | 2,366 | 2,089 |
Mortgages [member] | Other [Member] | Loans and receivables, category [member] | |||
Asset-backed securities: | |||
Asset-backed securities | [2] | ||
Other asset-backed [Member] | Loans and receivables, category [member] | |||
Asset-backed securities: | |||
Asset-backed securities | 1,260 | 1,290 | |
Other asset-backed [Member] | Investment Grade [Member] | Loans and receivables, category [member] | |||
Asset-backed securities: | |||
Asset-backed securities | [1] | 1,164 | 1,192 |
Other asset-backed [Member] | Other [Member] | Loans and receivables, category [member] | |||
Asset-backed securities: | |||
Asset-backed securities | [2] | 96 | 98 |
Debt securities held within loans and receivables [Member] | Loans and receivables, category [member] | |||
Asset-backed securities: | |||
Gross exposure | 3,669 | 3,473 | |
Allowance for impairment losses | (26) | (76) | |
Debt securities held within loans and receivables [Member] | Investment Grade [Member] | Loans and receivables, category [member] | |||
Asset-backed securities: | |||
Gross exposure | [1] | 3,557 | 3,310 |
Debt securities held within loans and receivables [Member] | Other [Member] | Loans and receivables, category [member] | |||
Asset-backed securities: | |||
Gross exposure | [2] | £ 112 | £ 163 |
[1] | Credit ratings equal to or better than 'BBB'. | ||
[2] | Other comprises sub-investment grade (2017: 89 million; 2016: 91 million) and not rated (2017: 23 million; 2016: 72 million). |
FINANCIAL RISK MANAGEMENT (D253
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Available-for-Sale Financial Assets (Excluding Equity Shares) - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | |
Debt securities: | |||
Government securities | £ 34,708 | £ 48,714 | |
Bank and building society certificates of deposit | 167 | 142 | |
Asset-backed securities: | |||
Mortgage-backed securities | 1,156 | 108 | |
Other asset-backed securities | 255 | 317 | |
40,901 | 55,311 | ||
Corporate and other debt securities | 4,615 | 6,030 | |
Total held as available-for-sale financial assets | 42,098 | 56,524 | |
Financial assets available-for-sale, category [member] | |||
Asset-backed securities: | |||
Total held as available-for-sale financial assets | 42,098 | 56,524 | |
Excluding equity share [Member] | Financial assets available-for-sale, category [member] | |||
Debt securities: | |||
Government securities | 34,708 | 48,714 | |
Bank and building society certificates of deposit | 167 | 142 | |
Asset-backed securities: | |||
Mortgage-backed securities | 1,156 | 108 | |
Other asset-backed securities | 255 | 317 | |
1,411 | 425 | ||
Corporate and other debt securities | 4,615 | 6,030 | |
Total held as available-for-sale financial assets | 40,901 | 55,311 | |
Excluding equity share [Member] | Investment Grade [Member] | Financial assets available-for-sale, category [member] | |||
Debt securities: | |||
Government securities | [1] | 34,708 | 48,714 |
Bank and building society certificates of deposit | [1] | 167 | 142 |
Asset-backed securities: | |||
Mortgage-backed securities | [1] | 1,156 | 108 |
Other asset-backed securities | [1] | 235 | 312 |
[1] | 1,391 | 420 | |
Corporate and other debt securities | [1] | 4,250 | 6,030 |
Total held as available-for-sale financial assets | [1] | 40,516 | 55,306 |
Excluding equity share [Member] | Other [Member] | Financial assets available-for-sale, category [member] | |||
Debt securities: | |||
Government securities | [2] | ||
Bank and building society certificates of deposit | [2] | ||
Asset-backed securities: | |||
Mortgage-backed securities | [2] | ||
Other asset-backed securities | [2] | 20 | 5 |
[2] | 20 | 5 | |
Corporate and other debt securities | [2] | 365 | |
Total held as available-for-sale financial assets | [2] | £ 385 | £ 5 |
[1] | Credit ratings equal to or better than 'BBB'. | ||
[2] | Other comprises sub-investment grade (2017: 9 million; 2016: 5 million) and not rated (2017: 376 million; 2016: nil). |
FINANCIAL RISK MANAGEMENT (D254
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Debt Securities, Treasury and Other Bills Held at Fair Value Through Profit or Loss - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | |
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Debt Securities, Treasury and Other Bills Held at Fair Value Through Profit or Loss [Line Items] | |||
Government securities | £ 34,708 | £ 48,714 | |
Bank and building society certificates of deposit | 167 | 142 | |
Asset-backed securities: | |||
Mortgage-backed securities | 1,156 | 108 | |
Other asset-backed securities | 255 | 317 | |
40,901 | 55,311 | ||
Corporate and other debt securities | 4,615 | 6,030 | |
Total debt securities held at fair value through profit or loss | 3,643 | 3,397 | |
Total other assets held at fair value through profit or loss | 13,537 | 12,755 | |
Trading and other financial assets at fair value through profit or loss | 162,878 | 151,174 | |
Financial assets at fair value through profit or loss, classified as held for trading, category [member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Debt Securities, Treasury and Other Bills Held at Fair Value Through Profit or Loss [Line Items] | |||
Government securities | 9,833 | 11,828 | |
Asset-backed securities: | |||
Mortgage-backed securities | 189 | 47 | |
Other asset-backed securities | 95 | 69 | |
10,640 | 12,168 | ||
Corporate and other debt securities | 523 | 224 | |
Trading and other financial assets at fair value through profit or loss | 42,236 | 45,253 | |
Financial assets at fair value through profit or loss, category [member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Debt Securities, Treasury and Other Bills Held at Fair Value Through Profit or Loss [Line Items] | |||
Government securities | 12,187 | 14,904 | |
Other public sector securities | 1,527 | 1,325 | |
Bank and building society certificates of deposit | 222 | 244 | |
Asset-backed securities: | |||
Mortgage-backed securities | 211 | 660 | |
Other asset-backed securities | 926 | 1,469 | |
34,540 | 38,210 | ||
Corporate and other debt securities | 19,467 | 19,608 | |
Investment Grade [Member] | |||
Asset-backed securities: | |||
Total debt securities held at fair value through profit or loss | 27,732 | 25,219 | |
Treasury shares [member] | |||
Asset-backed securities: | |||
Total held as trading assets | 10,640 | 12,168 | |
Total debt securities held at fair value through profit or loss | 34,540 | 38,210 | |
Treasury bills and other bills | 18 | 20 | |
Total other assets held at fair value through profit or loss | 34,558 | 38,230 | |
Trading and other financial assets at fair value through profit or loss | 45,198 | 50,398 | |
Treasury shares [member] | Financial assets at fair value through profit or loss, classified as held for trading, category [member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Debt Securities, Treasury and Other Bills Held at Fair Value Through Profit or Loss [Line Items] | |||
Government securities | 9,833 | 11,828 | |
Asset-backed securities: | |||
Mortgage-backed securities | 189 | 47 | |
Other asset-backed securities | 95 | 69 | |
284 | 116 | ||
Corporate and other debt securities | 523 | 224 | |
Treasury shares [member] | Financial assets at fair value through profit or loss, category [member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Debt Securities, Treasury and Other Bills Held at Fair Value Through Profit or Loss [Line Items] | |||
Government securities | 12,187 | 14,904 | |
Other public sector securities | 1,527 | 1,325 | |
Bank and building society certificates of deposit | 222 | 244 | |
Asset-backed securities: | |||
Mortgage-backed securities | 211 | 660 | |
Other asset-backed securities | 926 | 1,469 | |
1,137 | 2,129 | ||
Corporate and other debt securities | 19,467 | 19,608 | |
Treasury shares [member] | Investment Grade [Member] | |||
Asset-backed securities: | |||
Total held as trading assets | [1] | 10,481 | 12,165 |
Total debt securities held at fair value through profit or loss | [1] | 32,396 | 35,722 |
Treasury bills and other bills | [1] | 18 | 20 |
Total other assets held at fair value through profit or loss | [1] | 32,414 | 35,742 |
Trading and other financial assets at fair value through profit or loss | [1] | 42,895 | 47,907 |
Treasury shares [member] | Investment Grade [Member] | Financial assets at fair value through profit or loss, classified as held for trading, category [member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Debt Securities, Treasury and Other Bills Held at Fair Value Through Profit or Loss [Line Items] | |||
Government securities | [1] | 9,833 | 11,828 |
Asset-backed securities: | |||
Mortgage-backed securities | [1] | 84 | 47 |
Other asset-backed securities | [1] | 95 | 69 |
[1] | 179 | 116 | |
Corporate and other debt securities | [1] | 469 | 221 |
Treasury shares [member] | Investment Grade [Member] | Financial assets at fair value through profit or loss, category [member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Debt Securities, Treasury and Other Bills Held at Fair Value Through Profit or Loss [Line Items] | |||
Government securities | [1] | 12,180 | 14,904 |
Other public sector securities | [1] | 1,519 | 1,318 |
Bank and building society certificates of deposit | [1] | 222 | 244 |
Asset-backed securities: | |||
Mortgage-backed securities | [1] | 208 | 633 |
Other asset-backed securities | [1] | 924 | 1,178 |
[1] | 1,132 | 1,811 | |
Corporate and other debt securities | [1] | 17,343 | 17,445 |
Treasury shares [member] | Other [Member] | |||
Asset-backed securities: | |||
Total held as trading assets | [2] | 159 | 3 |
Total debt securities held at fair value through profit or loss | [2] | 2,144 | 2,488 |
Treasury bills and other bills | [2] | ||
Total other assets held at fair value through profit or loss | [2] | 2,144 | 2,488 |
Trading and other financial assets at fair value through profit or loss | [2] | 2,303 | 2,491 |
Treasury shares [member] | Other [Member] | Financial assets at fair value through profit or loss, classified as held for trading, category [member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Debt Securities, Treasury and Other Bills Held at Fair Value Through Profit or Loss [Line Items] | |||
Government securities | [2] | ||
Asset-backed securities: | |||
Mortgage-backed securities | [2] | 105 | |
Other asset-backed securities | [2] | ||
[2] | 105 | ||
Corporate and other debt securities | [2] | 54 | 3 |
Treasury shares [member] | Other [Member] | Financial assets at fair value through profit or loss, category [member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Debt Securities, Treasury and Other Bills Held at Fair Value Through Profit or Loss [Line Items] | |||
Government securities | [2] | 7 | |
Other public sector securities | [2] | 8 | 7 |
Bank and building society certificates of deposit | [2] | ||
Asset-backed securities: | |||
Mortgage-backed securities | [2] | 3 | 27 |
Other asset-backed securities | [2] | 2 | 291 |
[2] | 5 | 318 | |
Corporate and other debt securities | [2] | £ 2,124 | £ 2,163 |
[1] | Credit ratings equal to or better than 'BBB'. | ||
[2] | Other comprises sub-investment grade (2017: 331 million; 2016: 485 million) and not rated (2017: 1,972 million; 2016: 2,006 million). |
FINANCIAL RISK MANAGEMENT (D255
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Derivative Assets - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | |
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Derivative Assets [Line Items] | |||
Derivative financial instruments | £ 25,834 | £ 36,138 | |
Trading and Other [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Derivative Assets [Line Items] | |||
Derivative financial instruments | 23,953 | 33,426 | |
Hedging [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Derivative Assets [Line Items] | |||
Derivative financial instruments | 1,881 | 2,712 | |
Investment Grade [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Derivative Assets [Line Items] | |||
Derivative financial instruments | [1] | 23,616 | 34,037 |
Investment Grade [Member] | Trading and Other [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Derivative Assets [Line Items] | |||
Derivative financial instruments | [1] | 21,742 | 31,373 |
Investment Grade [Member] | Hedging [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Derivative Assets [Line Items] | |||
Derivative financial instruments | [1] | 1,874 | 2,664 |
Other [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Derivative Assets [Line Items] | |||
Derivative financial instruments | [2] | 2,218 | 2,101 |
Other [Member] | Trading and Other [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Derivative Assets [Line Items] | |||
Derivative financial instruments | [2] | 2,211 | 2,053 |
Other [Member] | Hedging [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Derivative Assets [Line Items] | |||
Derivative financial instruments | [2] | £ 7 | £ 48 |
[1] | Credit ratings equal to or better than 'BBB'. | ||
[2] | Other comprises sub-investment grade (2017: 1,878 million; 2016: 1,830 million) and not rated (2017: 340 million; 2016: 271 million). |
FINANCIAL RISK MANAGEMENT (D256
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Mortgage Lending - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Mortgage Lending [Line Items] | ||
Loan-to-value ratio | £ 472,498 | £ 457,958 |
Financial assets neither past due nor impaired [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Mortgage Lending [Line Items] | ||
Loan-to-value ratio | 295,765 | 296,303 |
Financial assets neither past due nor impaired [member] | Less than seventy percent [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Mortgage Lending [Line Items] | ||
Loan-to-value ratio | 217,070 | 220,497 |
Financial assets neither past due nor impaired [member] | Seventy percent to eighty percent [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Mortgage Lending [Line Items] | ||
Loan-to-value ratio | 43,045 | 39,789 |
Financial assets neither past due nor impaired [member] | Eighty percent to ninety percent [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Mortgage Lending [Line Items] | ||
Loan-to-value ratio | 25,497 | 23,589 |
Financial assets neither past due nor impaired [member] | Ninety percent to one hundred percent [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Mortgage Lending [Line Items] | ||
Loan-to-value ratio | 7,085 | 7,983 |
Financial assets neither past due nor impaired [member] | Greater than one hundred percent [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Mortgage Lending [Line Items] | ||
Loan-to-value ratio | 3,068 | 4,445 |
Financial assets past due but not impaired [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Mortgage Lending [Line Items] | ||
Loan-to-value ratio | 5,934 | 7,340 |
Financial assets past due but not impaired [member] | Less than seventy percent [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Mortgage Lending [Line Items] | ||
Loan-to-value ratio | 4,309 | 5,288 |
Financial assets past due but not impaired [member] | Seventy percent to eighty percent [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Mortgage Lending [Line Items] | ||
Loan-to-value ratio | 787 | 1,004 |
Financial assets past due but not impaired [member] | Eighty percent to ninety percent [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Mortgage Lending [Line Items] | ||
Loan-to-value ratio | 500 | 621 |
Financial assets past due but not impaired [member] | Ninety percent to one hundred percent [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Mortgage Lending [Line Items] | ||
Loan-to-value ratio | 177 | 223 |
Financial assets past due but not impaired [member] | Greater than one hundred percent [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Mortgage Lending [Line Items] | ||
Loan-to-value ratio | 161 | 204 |
Financial assets impaired [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Mortgage Lending [Line Items] | ||
Loan-to-value ratio | 4,169 | 4,320 |
Financial assets impaired [member] | Less than seventy percent [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Mortgage Lending [Line Items] | ||
Loan-to-value ratio | 2,443 | 2,334 |
Financial assets impaired [member] | Seventy percent to eighty percent [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Mortgage Lending [Line Items] | ||
Loan-to-value ratio | 595 | 648 |
Financial assets impaired [member] | Eighty percent to ninety percent [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Mortgage Lending [Line Items] | ||
Loan-to-value ratio | 436 | 495 |
Financial assets impaired [member] | Ninety percent to one hundred percent [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Mortgage Lending [Line Items] | ||
Loan-to-value ratio | 245 | 355 |
Financial assets impaired [member] | Greater than one hundred percent [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Mortgage Lending [Line Items] | ||
Loan-to-value ratio | 450 | 488 |
Financial Assets Gross [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Mortgage Lending [Line Items] | ||
Loan-to-value ratio | 305,868 | 307,963 |
Financial Assets Gross [Member] | Less than seventy percent [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Mortgage Lending [Line Items] | ||
Loan-to-value ratio | 223,822 | 228,119 |
Financial Assets Gross [Member] | Seventy percent to eighty percent [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Mortgage Lending [Line Items] | ||
Loan-to-value ratio | 44,427 | 41,441 |
Financial Assets Gross [Member] | Eighty percent to ninety percent [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Mortgage Lending [Line Items] | ||
Loan-to-value ratio | 26,433 | 24,705 |
Financial Assets Gross [Member] | Ninety percent to one hundred percent [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Mortgage Lending [Line Items] | ||
Loan-to-value ratio | 7,507 | 8,561 |
Financial Assets Gross [Member] | Greater than one hundred percent [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Mortgage Lending [Line Items] | ||
Loan-to-value ratio | £ 3,679 | £ 5,137 |
FINANCIAL RISK MANAGEMENT (D257
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Securities Lending Transactions - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Securities Lending Transactions [Line Items] | ||
Trading and other financial assets at fair value through profit or loss | £ (50,877) | £ (54,504) |
Loans and advances to customers | 472,498 | 457,958 |
Available-for-sale financial assets | 42,098 | 56,524 |
772,838 | 780,251 | |
Securities lending [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Securities Lending Transactions [Line Items] | ||
Trading and other financial assets at fair value through profit or loss | 6,622 | 6,991 |
Loans and advances to customers | 197 | 583 |
Available-for-sale financial assets | 2,608 | 3,206 |
£ 9,427 | £ 10,780 |
FINANCIAL RISK MANAGEMENT (D258
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Maturities of Assets and Liabilities - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | |||
Cash and balances at central banks | £ 58,521 | £ 47,452 | £ 58,417 |
Trading and other financial assets at fair value through profit or loss | 162,878 | 151,174 | |
Derivative financial instruments | 25,834 | 36,138 | |
Loans and advances to banks | 6,611 | 26,902 | 25,117 |
Loans and advances to customers | 472,498 | 457,958 | |
Debt securities | 3,643 | 3,397 | |
Available-for-sale financial assets | 42,098 | 56,524 | |
Other assets | 13,537 | 12,755 | |
Total assets | 812,109 | 817,793 | |
Liabilities | |||
Deposits from banks | 29,804 | 16,384 | |
Customer deposits | 418,124 | 415,460 | |
Derivative financial instruments, trading and other financial liabilities at fair value through profit or loss | 50,877 | 54,504 | |
Debt securities in issue | 72,450 | 76,314 | |
Liabilities arising from insurance and investment contracts | 103,413 | 94,390 | |
Other liabilities | 20,730 | 29,193 | |
Subordinated liabilities | 17,922 | 19,831 | £ 23,312 |
Total liabilities | 762,966 | 769,328 | |
Balance Sheet maturity - legal basis [Member] | Not later than one month [member] | |||
Assets | |||
Cash and balances at central banks | 58,519 | 47,446 | |
Trading and other financial assets at fair value through profit or loss | 11,473 | 20,168 | |
Derivative financial instruments | 449 | 956 | |
Loans and advances to banks | 3,104 | 9,801 | |
Loans and advances to customers | 28,297 | 20,179 | |
Debt securities | 10 | 8 | |
Available-for-sale financial assets | 59 | 127 | |
Other assets | 3,807 | 5,025 | |
Total assets | 105,718 | 103,710 | |
Liabilities | |||
Deposits from banks | 2,810 | 3,772 | |
Customer deposits | 366,778 | 347,753 | |
Derivative financial instruments, trading and other financial liabilities at fair value through profit or loss | 19,215 | 18,381 | |
Debt securities in issue | 3,248 | 4,065 | |
Liabilities arising from insurance and investment contracts | 1,898 | 1,583 | |
Other liabilities | 4,229 | 3,282 | |
Total liabilities | 398,178 | 378,836 | |
Balance Sheet maturity - legal basis [Member] | Later than one month and not later than three months [member] | |||
Assets | |||
Cash and balances at central banks | 2 | 2 | |
Trading and other financial assets at fair value through profit or loss | 13,345 | 14,903 | |
Derivative financial instruments | 601 | 1,700 | |
Loans and advances to banks | 314 | 6,049 | |
Loans and advances to customers | 15,953 | 10,651 | |
Debt securities | 29 | ||
Available-for-sale financial assets | 365 | 259 | |
Other assets | 897 | 583 | |
Total assets | 31,506 | 34,147 | |
Liabilities | |||
Deposits from banks | 2,318 | 2,779 | |
Customer deposits | 18,821 | 18,936 | |
Derivative financial instruments, trading and other financial liabilities at fair value through profit or loss | 16,932 | 19,640 | |
Debt securities in issue | 6,014 | 8,328 | |
Liabilities arising from insurance and investment contracts | 2,003 | 2,190 | |
Other liabilities | 2,805 | 2,266 | |
Subordinated liabilities | 202 | 390 | |
Total liabilities | 49,095 | 54,529 | |
Balance Sheet maturity - legal basis [Member] | Later than three months and not later than six months [member] | |||
Assets | |||
Cash and balances at central banks | 4 | ||
Trading and other financial assets at fair value through profit or loss | 4,858 | 7,387 | |
Derivative financial instruments | 763 | 1,393 | |
Loans and advances to banks | 190 | 3,894 | |
Loans and advances to customers | 13,585 | 14,235 | |
Available-for-sale financial assets | 286 | 73 | |
Other assets | 414 | 584 | |
Total assets | 20,096 | 27,570 | |
Liabilities | |||
Deposits from banks | 1,885 | 1,062 | |
Customer deposits | 10,615 | 8,961 | |
Derivative financial instruments, trading and other financial liabilities at fair value through profit or loss | 4,933 | 8,779 | |
Debt securities in issue | 4,431 | 6,433 | |
Liabilities arising from insurance and investment contracts | 2,484 | 2,737 | |
Other liabilities | 239 | 1,213 | |
Subordinated liabilities | 1,588 | 161 | |
Total liabilities | 26,175 | 29,346 | |
Balance Sheet maturity - legal basis [Member] | Later than six months and not later than nine months [Member] | |||
Assets | |||
Trading and other financial assets at fair value through profit or loss | 2,781 | 2,914 | |
Derivative financial instruments | 451 | 786 | |
Loans and advances to banks | 190 | 1,201 | |
Loans and advances to customers | 11,881 | 12,400 | |
Debt securities | 242 | ||
Available-for-sale financial assets | 1,025 | 637 | |
Other assets | 1,170 | 1,560 | |
Total assets | 17,498 | 19,740 | |
Liabilities | |||
Deposits from banks | 87 | 503 | |
Customer deposits | 5,524 | 10,482 | |
Derivative financial instruments, trading and other financial liabilities at fair value through profit or loss | 3,419 | 1,696 | |
Debt securities in issue | 3,506 | 4,158 | |
Liabilities arising from insurance and investment contracts | 2,466 | 2,463 | |
Other liabilities | 2,216 | 2,164 | |
Subordinated liabilities | 393 | ||
Total liabilities | 17,218 | 21,859 | |
Balance Sheet maturity - legal basis [Member] | Later than nine months and not later than twelve months [Member] | |||
Assets | |||
Trading and other financial assets at fair value through profit or loss | 1,056 | 817 | |
Derivative financial instruments | 503 | 651 | |
Loans and advances to banks | 192 | 867 | |
Loans and advances to customers | 10,482 | 10,773 | |
Debt securities | 7 | ||
Available-for-sale financial assets | 265 | 222 | |
Other assets | 854 | 1,059 | |
Total assets | 13,359 | 14,389 | |
Liabilities | |||
Deposits from banks | 28 | 13 | |
Customer deposits | 5,074 | 8,477 | |
Derivative financial instruments, trading and other financial liabilities at fair value through profit or loss | 948 | 1,179 | |
Debt securities in issue | 2,902 | 1,224 | |
Liabilities arising from insurance and investment contracts | 2,425 | 2,377 | |
Other liabilities | 1,894 | 1,440 | |
Subordinated liabilities | 570 | ||
Total liabilities | 13,841 | 14,710 | |
Balance Sheet maturity - legal basis [Member] | Later than one year and not later than two years [member] | |||
Assets | |||
Trading and other financial assets at fair value through profit or loss | 2,655 | 1,680 | |
Derivative financial instruments | 965 | 2,230 | |
Loans and advances to banks | 131 | 1,281 | |
Loans and advances to customers | 29,340 | 26,007 | |
Debt securities | 350 | ||
Available-for-sale financial assets | 3,040 | 1,887 | |
Other assets | 725 | 1,846 | |
Total assets | 37,206 | 34,931 | |
Liabilities | |||
Deposits from banks | 43 | ||
Customer deposits | 7,823 | 13,859 | |
Derivative financial instruments, trading and other financial liabilities at fair value through profit or loss | 1,961 | 3,843 | |
Debt securities in issue | 6,333 | 6,939 | |
Liabilities arising from insurance and investment contracts | 8,532 | 8,588 | |
Other liabilities | 1,498 | 413 | |
Subordinated liabilities | 574 | 1,750 | |
Total liabilities | 26,721 | 35,435 | |
Balance Sheet maturity - legal basis [Member] | Later than two years and not later than five years [member] | |||
Assets | |||
Trading and other financial assets at fair value through profit or loss | 5,341 | 6,011 | |
Derivative financial instruments | 2,763 | 4,165 | |
Loans and advances to banks | 2,405 | 3,692 | |
Loans and advances to customers | 70,967 | 69,300 | |
Debt securities | 2,775 | 34 | |
Available-for-sale financial assets | 15,366 | 16,080 | |
Other assets | 5,618 | 4,808 | |
Total assets | 105,235 | 104,090 | |
Liabilities | |||
Deposits from banks | 22,378 | 7,859 | |
Customer deposits | 2,986 | 6,430 | |
Derivative financial instruments, trading and other financial liabilities at fair value through profit or loss | 4,298 | 5,575 | |
Debt securities in issue | 25,669 | 25,020 | |
Liabilities arising from insurance and investment contracts | 21,842 | 19,971 | |
Other liabilities | 1,933 | 3,087 | |
Subordinated liabilities | 3,983 | 4,527 | |
Total liabilities | 83,089 | 72,469 | |
Balance Sheet maturity - legal basis [Member] | Later than five years [member] | |||
Assets | |||
Trading and other financial assets at fair value through profit or loss | 121,369 | 97,294 | |
Derivative financial instruments | 19,339 | 24,257 | |
Loans and advances to banks | 85 | 117 | |
Loans and advances to customers | 291,993 | 294,413 | |
Debt securities | 472 | 3,113 | |
Available-for-sale financial assets | 21,692 | 37,239 | |
Other assets | 26,541 | 22,783 | |
Total assets | 481,491 | 479,216 | |
Liabilities | |||
Deposits from banks | 298 | 353 | |
Customer deposits | 503 | 562 | |
Derivative financial instruments, trading and other financial liabilities at fair value through profit or loss | 25,295 | 30,335 | |
Debt securities in issue | 20,347 | 20,147 | |
Liabilities arising from insurance and investment contracts | 77,210 | 74,593 | |
Other liabilities | 13,991 | 23,544 | |
Subordinated liabilities | 11,005 | 12,610 | |
Total liabilities | 148,649 | 162,144 | |
Balance Sheet maturity - legal basis [Member] | Total [Member] | |||
Assets | |||
Cash and balances at central banks | 58,521 | 47,452 | |
Trading and other financial assets at fair value through profit or loss | 162,878 | 151,174 | |
Derivative financial instruments | 25,834 | 36,138 | |
Loans and advances to banks | 6,611 | 26,902 | |
Loans and advances to customers | 472,498 | 457,958 | |
Debt securities | 3,643 | 3,397 | |
Available-for-sale financial assets | 42,098 | 56,524 | |
Other assets | 40,026 | 38,248 | |
Total assets | 812,109 | 817,793 | |
Liabilities | |||
Deposits from banks | 29,804 | 16,384 | |
Customer deposits | 418,124 | 415,460 | |
Derivative financial instruments, trading and other financial liabilities at fair value through profit or loss | 77,001 | 89,428 | |
Debt securities in issue | 72,450 | 76,314 | |
Liabilities arising from insurance and investment contracts | 118,860 | 114,502 | |
Other liabilities | 28,805 | 37,409 | |
Subordinated liabilities | 17,922 | 19,831 | |
Total liabilities | £ 762,966 | £ 769,328 |
FINANCIAL RISK MANAGEMENT (D259
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Maturities of Liabilities - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Maturities of Liabilities [Line Items] | |||
Deposits from banks | £ 29,804 | £ 16,384 | |
Customer deposits | 418,124 | 415,460 | |
Trading and other financial liabilities at fair value through profit or loss | 50,877 | 54,504 | |
Debt securities in issue | 72,450 | 76,314 | |
Liabilities arising from non-participating investment contracts | 15,447 | 20,112 | |
Subordinated liabilities | 17,922 | 19,831 | £ 23,312 |
Derivative financial liabilities: | |||
Derivative financial liabilities | 26,124 | 34,924 | |
Undiscounted future cash flow basis [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Maturities of Liabilities [Line Items] | |||
Deposits from banks | 30,315 | 16,467 | |
Customer deposits | 420,838 | 417,055 | |
Trading and other financial liabilities at fair value through profit or loss | 59,504 | 61,404 | |
Debt securities in issue | 83,259 | 82,865 | |
Liabilities arising from non-participating investment contracts | 15,447 | 20,112 | |
Subordinated liabilities | 29,926 | 29,825 | |
Total non-derivative financial liabilities | 639,289 | 627,728 | |
Derivative financial liabilities: | |||
Derivative financial liabilities | 23,420 | 39,671 | |
Net settled derivatives liabilities | 22,098 | 26,593 | |
Undiscounted future cash flow basis [Member] | Not later than one month [member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Maturities of Liabilities [Line Items] | |||
Deposits from banks | 2,516 | 3,686 | |
Customer deposits | 367,103 | 347,573 | |
Trading and other financial liabilities at fair value through profit or loss | 21,286 | 14,390 | |
Debt securities in issue | 3,444 | 7,590 | |
Liabilities arising from non-participating investment contracts | 15,447 | 20,112 | |
Subordinated liabilities | 231 | 41 | |
Total non-derivative financial liabilities | 410,027 | 393,392 | |
Derivative financial liabilities: | |||
Derivative financial liabilities | 18,247 | 23,438 | |
Net settled derivatives liabilities | 17,425 | 21,669 | |
Undiscounted future cash flow basis [Member] | Later than one month and not later than three months [member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Maturities of Liabilities [Line Items] | |||
Deposits from banks | 3,545 | 4,154 | |
Customer deposits | 18,854 | 19,151 | |
Trading and other financial liabilities at fair value through profit or loss | 14,424 | 19,718 | |
Debt securities in issue | 6,331 | 8,721 | |
Subordinated liabilities | 454 | 674 | |
Total non-derivative financial liabilities | 43,608 | 52,418 | |
Derivative financial liabilities: | |||
Derivative financial liabilities | 1,130 | 1,804 | |
Net settled derivatives liabilities | 128 | 117 | |
Undiscounted future cash flow basis [Member] | Later than three months and not later than twelve months [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Maturities of Liabilities [Line Items] | |||
Deposits from banks | 2,096 | 1,541 | |
Customer deposits | 21,308 | 28,248 | |
Trading and other financial liabilities at fair value through profit or loss | 6,499 | 11,845 | |
Debt securities in issue | 12,562 | 12,533 | |
Subordinated liabilities | 2,907 | 1,289 | |
Total non-derivative financial liabilities | 45,372 | 55,456 | |
Derivative financial liabilities: | |||
Derivative financial liabilities | 1,813 | 2,476 | |
Net settled derivatives liabilities | 776 | 620 | |
Undiscounted future cash flow basis [Member] | Later than one year and not later than five years [member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Maturities of Liabilities [Line Items] | |||
Deposits from banks | 21,498 | 5,883 | |
Customer deposits | 11,198 | 20,789 | |
Trading and other financial liabilities at fair value through profit or loss | 4,251 | 1,938 | |
Debt securities in issue | 36,999 | 36,386 | |
Subordinated liabilities | 7,170 | 9,279 | |
Total non-derivative financial liabilities | 81,116 | 74,275 | |
Derivative financial liabilities: | |||
Derivative financial liabilities | 895 | 4,853 | |
Net settled derivatives liabilities | 974 | 1,167 | |
Undiscounted future cash flow basis [Member] | Later than five years [member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Maturities of Liabilities [Line Items] | |||
Deposits from banks | 660 | 1,203 | |
Customer deposits | 2,375 | 1,294 | |
Trading and other financial liabilities at fair value through profit or loss | 13,044 | 13,513 | |
Debt securities in issue | 23,923 | 17,635 | |
Subordinated liabilities | 19,164 | 18,542 | |
Total non-derivative financial liabilities | 59,166 | 52,187 | |
Derivative financial liabilities: | |||
Derivative financial liabilities | 1,335 | 7,100 | |
Net settled derivatives liabilities | 2,795 | 3,020 | |
Outflows [Member] | Undiscounted future cash flow basis [Member] | |||
Derivative financial liabilities: | |||
Derivative financial liabilities | 154,796 | 171,969 | |
Outflows [Member] | Undiscounted future cash flow basis [Member] | Not later than one month [member] | |||
Derivative financial liabilities: | |||
Derivative financial liabilities | 23,850 | 33,128 | |
Outflows [Member] | Undiscounted future cash flow basis [Member] | Later than one month and not later than three months [member] | |||
Derivative financial liabilities: | |||
Derivative financial liabilities | 31,974 | 24,088 | |
Outflows [Member] | Undiscounted future cash flow basis [Member] | Later than three months and not later than twelve months [Member] | |||
Derivative financial liabilities: | |||
Derivative financial liabilities | 24,923 | 25,366 | |
Outflows [Member] | Undiscounted future cash flow basis [Member] | Later than one year and not later than five years [member] | |||
Derivative financial liabilities: | |||
Derivative financial liabilities | 43,444 | 52,925 | |
Outflows [Member] | Undiscounted future cash flow basis [Member] | Later than five years [member] | |||
Derivative financial liabilities: | |||
Derivative financial liabilities | 30,605 | 36,462 | |
Inflows [Member] | Undiscounted future cash flow basis [Member] | |||
Derivative financial liabilities: | |||
Derivative financial liabilities | (153,474) | (158,891) | |
Inflows [Member] | Undiscounted future cash flow basis [Member] | Not later than one month [member] | |||
Derivative financial liabilities: | |||
Derivative financial liabilities | (23,028) | (31,359) | |
Inflows [Member] | Undiscounted future cash flow basis [Member] | Later than one month and not later than three months [member] | |||
Derivative financial liabilities: | |||
Derivative financial liabilities | (30,972) | (22,401) | |
Inflows [Member] | Undiscounted future cash flow basis [Member] | Later than three months and not later than twelve months [Member] | |||
Derivative financial liabilities: | |||
Derivative financial liabilities | (23,886) | (23,510) | |
Inflows [Member] | Undiscounted future cash flow basis [Member] | Later than one year and not later than five years [member] | |||
Derivative financial liabilities: | |||
Derivative financial liabilities | (43,523) | (49,239) | |
Inflows [Member] | Undiscounted future cash flow basis [Member] | Later than five years [member] | |||
Derivative financial liabilities: | |||
Derivative financial liabilities | (32,065) | (32,382) | |
Net Flows [Member] | Undiscounted future cash flow basis [Member] | |||
Derivative financial liabilities: | |||
Derivative financial liabilities | 1,322 | 13,078 | |
Net Flows [Member] | Undiscounted future cash flow basis [Member] | Not later than one month [member] | |||
Derivative financial liabilities: | |||
Derivative financial liabilities | 822 | 1,769 | |
Net Flows [Member] | Undiscounted future cash flow basis [Member] | Later than one month and not later than three months [member] | |||
Derivative financial liabilities: | |||
Derivative financial liabilities | 1,002 | 1,687 | |
Net Flows [Member] | Undiscounted future cash flow basis [Member] | Later than three months and not later than twelve months [Member] | |||
Derivative financial liabilities: | |||
Derivative financial liabilities | 1,037 | 1,856 | |
Net Flows [Member] | Undiscounted future cash flow basis [Member] | Later than one year and not later than five years [member] | |||
Derivative financial liabilities: | |||
Derivative financial liabilities | (79) | 3,686 | |
Net Flows [Member] | Undiscounted future cash flow basis [Member] | Later than five years [member] | |||
Derivative financial liabilities: | |||
Derivative financial liabilities | £ (1,460) | £ 4,080 |
FINANCIAL RISK MANAGEMENT (D260
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Liabilities Arising from Insurance and Participating Investment Contracts - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Liabilities Arising from Insurance and Participating Investment Contracts [Line Items] | ||
Balance | £ 103,413 | £ 94,390 |
Analysed on a behavioural basis [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Liabilities Arising from Insurance and Participating Investment Contracts [Line Items] | ||
Balance | 103,413 | 94,390 |
Analysed on a behavioural basis [Member] | Not later than one month [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Liabilities Arising from Insurance and Participating Investment Contracts [Line Items] | ||
Balance | 1,708 | 1,283 |
Analysed on a behavioural basis [Member] | Later than one month and not later than three months [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Liabilities Arising from Insurance and Participating Investment Contracts [Line Items] | ||
Balance | 1,747 | 1,836 |
Analysed on a behavioural basis [Member] | Later than three months and not later than twelve months [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Liabilities Arising from Insurance and Participating Investment Contracts [Line Items] | ||
Balance | 6,467 | 6,266 |
Analysed on a behavioural basis [Member] | Later than one year and not later than five years [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Liabilities Arising from Insurance and Participating Investment Contracts [Line Items] | ||
Balance | 26,479 | 23,425 |
Analysed on a behavioural basis [Member] | Later than five years [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Liabilities Arising from Insurance and Participating Investment Contracts [Line Items] | ||
Balance | £ 67,012 | £ 61,580 |
FINANCIAL RISK MANAGEMENT (D261
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Contingent Liabilities | £ 3,111 | £ 3,037 |
Commitments | 129,809 | 114,168 |
Total contingents and commitments | 132,920 | 117,205 |
Not later than one month [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Contingent Liabilities | 404 | 440 |
Commitments | 66,983 | 48,210 |
Total contingents and commitments | 67,387 | 48,650 |
Later than one month and not later than three months [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Contingent Liabilities | 720 | 788 |
Commitments | 3,137 | 3,549 |
Total contingents and commitments | 3,857 | 4,337 |
Later than three months and not later than six months [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Contingent Liabilities | 214 | 163 |
Commitments | 5,966 | 5,276 |
Total contingents and commitments | 6,180 | 5,439 |
Later than six months and not later than nine months [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Contingent Liabilities | 131 | 153 |
Commitments | 5,563 | 4,824 |
Total contingents and commitments | 5,694 | 4,977 |
Later than nine months and not later than twelve months [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Contingent Liabilities | 205 | 123 |
Commitments | 11,440 | 11,629 |
Total contingents and commitments | 11,645 | 11,752 |
Later than one year and not later than three years [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Contingent Liabilities | 510 | 467 |
Commitments | 17,420 | 17,291 |
Total contingents and commitments | 17,930 | 17,758 |
Later than three years and not later than five years [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Contingent Liabilities | 271 | 280 |
Commitments | 15,177 | 18,897 |
Total contingents and commitments | 15,448 | 19,177 |
Later than five years [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Contingent Liabilities | 656 | 623 |
Commitments | 4,123 | 4,492 |
Total contingents and commitments | 4,779 | 5,115 |
Acceptances and endorsements [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Contingent Liabilities | 71 | 21 |
Acceptances and endorsements [Member] | Not later than one month [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Contingent Liabilities | 12 | 13 |
Acceptances and endorsements [Member] | Later than one month and not later than three months [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Contingent Liabilities | 51 | 6 |
Acceptances and endorsements [Member] | Later than three months and not later than six months [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Contingent Liabilities | 4 | |
Acceptances and endorsements [Member] | Later than nine months and not later than twelve months [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Contingent Liabilities | 1 | |
Acceptances and endorsements [Member] | Later than one year and not later than three years [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Contingent Liabilities | 4 | 1 |
Other contingent liabilities [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Contingent Liabilities | 3,040 | 3,016 |
Other contingent liabilities [member] | Not later than one month [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Contingent Liabilities | 392 | 427 |
Other contingent liabilities [member] | Later than one month and not later than three months [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Contingent Liabilities | 669 | 782 |
Other contingent liabilities [member] | Later than three months and not later than six months [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Contingent Liabilities | 210 | 163 |
Other contingent liabilities [member] | Later than six months and not later than nine months [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Contingent Liabilities | 131 | 153 |
Other contingent liabilities [member] | Later than nine months and not later than twelve months [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Contingent Liabilities | 205 | 122 |
Other contingent liabilities [member] | Later than one year and not later than three years [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Contingent Liabilities | 506 | 466 |
Other contingent liabilities [member] | Later than three years and not later than five years [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Contingent Liabilities | 271 | 280 |
Other contingent liabilities [member] | Later than five years [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Contingent Liabilities | 656 | 623 |
Lending commitments [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Commitments | 129,425 | 113,520 |
Lending commitments [Member] | Not later than one month [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Commitments | 66,964 | 48,210 |
Lending commitments [Member] | Later than one month and not later than three months [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Commitments | 3,137 | 3,546 |
Lending commitments [Member] | Later than three months and not later than six months [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Commitments | 5,966 | 5,276 |
Lending commitments [Member] | Later than six months and not later than nine months [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Commitments | 5,525 | 4,783 |
Lending commitments [Member] | Later than nine months and not later than twelve months [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Commitments | 11,440 | 11,628 |
Lending commitments [Member] | Later than one year and not later than three years [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Commitments | 17,374 | 17,212 |
Lending commitments [Member] | Later than three years and not later than five years [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Commitments | 15,106 | 18,775 |
Lending commitments [Member] | Later than five years [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Commitments | 3,913 | 4,090 |
Other commitments [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Commitments | 384 | 648 |
Other commitments [Member] | Not later than one month [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Commitments | 19 | |
Other commitments [Member] | Later than one month and not later than three months [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Commitments | 3 | |
Other commitments [Member] | Later than six months and not later than nine months [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Commitments | 38 | 41 |
Other commitments [Member] | Later than nine months and not later than twelve months [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Commitments | 1 | |
Other commitments [Member] | Later than one year and not later than three years [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Commitments | 46 | 79 |
Other commitments [Member] | Later than three years and not later than five years [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Commitments | 71 | 122 |
Other commitments [Member] | Later than five years [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Commitments | £ 210 | £ 402 |
CONSOLIDATED CASH FLOW STATE262
CONSOLIDATED CASH FLOW STATEMENT (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Group [Member] | |||
CONSOLIDATED CASH FLOW STATEMENT (Details) [Line Items] | |||
Cash Within Group Long-Term Insurance And Investment Business | £ 2,322 | £ 14,475 | £ 13,545 |
CONSOLIDATED CASH FLOW STATE263
CONSOLIDATED CASH FLOW STATEMENT (Details) - Schedule of Change in Operating Assets - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Change in Operating Assets [Abstract] | |||
Change in loans and receivables | £ (24,747) | £ 710 | £ 6,081 |
Change in derivative financial instruments, trading and other financial assets at fair value through profit or loss | 9,916 | (13,889) | 20,689 |
Change in other operating assets | (661) | 961 | 7,930 |
Change in operating assets | £ (15,492) | £ (12,218) | £ 34,700 |
CONSOLIDATED CASH FLOW STATE264
CONSOLIDATED CASH FLOW STATEMENT (Details) - Schedule of Change in Operating Liabilities - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Change in Operating Liabilities [Abstract] | |||
Change in deposits from banks | £ 13,415 | £ (654) | £ 6,107 |
Change in customer deposits | 2,913 | (3,690) | (4,252) |
Change in debt securities in issue | (3,600) | (6,552) | 5,657 |
Change in derivative financial instruments, trading and other liabilities at fair value through profit or loss | (12,481) | 11,265 | (16,924) |
Change in investment contract liabilities | (4,665) | (2,665) | (3,922) |
Change in other operating liabilities | 136 | (363) | 1,349 |
Change in operating liabilities | £ (4,282) | £ (2,659) | £ (11,985) |
CONSOLIDATED CASH FLOW STATE265
CONSOLIDATED CASH FLOW STATEMENT (Details) - Schedule of Non-Cash and Other Items - GBP (£) £ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
CONSOLIDATED CASH FLOW STATEMENT (Details) - Schedule of Non-Cash and Other Items [Line Items] | ||||
Depreciation and amortisation | £ 2,370 | £ 2,380 | £ 2,112 | |
Revaluation of investment properties | (230) | 83 | (416) | |
Write-off of allowance for loan losses, net of recoveries | (1,061) | (1,272) | (3,467) | |
Impairment of available-for-sale financial assets | (688) | (752) | (390) | |
Change in insurance contract liabilities | 9,168 | 14,084 | (2,856) | |
Other provision movements | (17) | (40) | 337 | |
Net charge (credit) in respect of defined benefit schemes | 369 | 287 | 315 | |
Impact of consolidation and deconsolidation of OEICs | [1] | (3,157) | (5,978) | |
Unwind of discount on impairment allowances | (23) | (32) | (56) | |
Foreign exchange impact on balance sheet | [2] | 125 | (155) | 507 |
Loss on ECN transactions | 721 | |||
Interest expense on subordinated liabilities | 1,436 | 1,864 | 1,970 | |
Loss (profit) on disposal of businesses | 46 | |||
Net gain on sale of available-for-sale financial assets | (446) | (575) | (51) | |
Hedging valuation adjustments on subordinated debt | (327) | 153 | (162) | |
Value of employee services | 414 | 309 | 279 | |
Transactions in own shares | (411) | (175) | (816) | |
Accretion of discounts and amortisation of premiums and issue costs | 1,701 | 465 | 339 | |
Share of post-tax results of associates and joint ventures | (6) | 1 | 3 | |
Transfers to income statement from reserves | (650) | (557) | (956) | |
Other non-cash items | (17) | (11) | ||
Total non-cash items | 15,154 | 17,474 | (3,630) | |
Contributions to defined benefit schemes | (587) | (630) | (433) | |
Payments in respect of payment protection insurance provision | (1,657) | (2,200) | (3,091) | |
Payments in respect of other regulatory provisions | (928) | (761) | (661) | |
Other | 2 | 7 | ||
Total other items | (3,172) | (3,589) | (4,178) | |
Non-cash and other items | 11,982 | 13,885 | (7,808) | |
Payment Protection Insurance [Member] | ||||
CONSOLIDATED CASH FLOW STATEMENT (Details) - Schedule of Non-Cash and Other Items [Line Items] | ||||
Charge for the year | 1,300 | 1,350 | 4,000 | |
Other regulatory provisions [Member] | ||||
CONSOLIDATED CASH FLOW STATEMENT (Details) - Schedule of Non-Cash and Other Items [Line Items] | ||||
Charge for the year | 865 | 1,085 | 837 | |
Loans and Receivables [Member] | ||||
CONSOLIDATED CASH FLOW STATEMENT (Details) - Schedule of Non-Cash and Other Items [Line Items] | ||||
Allowance for loan losses | 691 | 592 | 441 | |
Financial assets available-for-sale, category [member] | ||||
CONSOLIDATED CASH FLOW STATEMENT (Details) - Schedule of Non-Cash and Other Items [Line Items] | ||||
Impairment of available-for-sale financial assets | 6 | 173 | 4 | |
Disposal Of Tangible Fixed Assets [Member] | ||||
CONSOLIDATED CASH FLOW STATEMENT (Details) - Schedule of Non-Cash and Other Items [Line Items] | ||||
Profit on disposal of tangible fixed assets | £ (120) | £ (93) | £ (51) | |
[1] | These OEICs (Open-ended investment companies) are mutual funds which are consolidated if the Group manages the funds and also has a sufficient beneficial interest. The population of OEICs to be consolidated varies at each reporting date as external investors acquire and divest holdings in the various funds. The consolidation of these funds is effected by the inclusion of the fund investments and a matching liability to the unitholders; and changes in funds consolidated represent a non-cash movement on the balance sheet. | |||
[2] | When considering the movement on each line of the balance sheet, the impact of foreign exchange rate movements is removed in order to show the underlying cash impact. |
CONSOLIDATED CASH FLOW STATE266
CONSOLIDATED CASH FLOW STATEMENT (Details) - Schedule of Analysis of Cash and Cash Equivalents as Shown in the Balance Sheet - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Analysis of Cash and Cash Equivalents as Shown in the Balance Sheet [Abstract] | |||||
Cash and balances at central banks | £ 58,521 | £ 47,452 | £ 58,417 | ||
Less: mandatory reserve deposits | [1] | (957) | (914) | (941) | |
57,564 | 46,538 | 57,476 | |||
Loans and advances to banks | 6,611 | 26,902 | 25,117 | ||
Less: amounts with a maturity of three months or more | (3,193) | (11,052) | (10,640) | ||
3,418 | 15,850 | 14,477 | |||
Total cash and cash equivalents | £ 60,982 | £ 62,388 | £ 71,953 | £ 65,147 | |
[1] | Mandatory reserve deposits are held with local central banks in accordance with statutory requirements; these deposits are not available to finance the Group's day-to-day operations. |
CONSOLIDATED CASH FLOW STATE267
CONSOLIDATED CASH FLOW STATEMENT (Details) - Schedule of Acquisition of Group Undertakings and Businesses - GBP (£) £ in Millions | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
CONSOLIDATED CASH FLOW STATEMENT (Details) - Schedule of Acquisition of Group Undertakings and Businesses [Line Items] | |||||
Cash and cash equivalents | £ 60,982 | £ 62,388 | £ 71,953 | £ 65,147 | |
Loans and receivables: Loans and advances to customers | 482,752 | 488,257 | |||
Available-for-sale financial assets | 42,098 | 56,524 | |||
Property, plant and equipment | 12,727 | 12,972 | |||
Other assets | 13,537 | 12,755 | |||
Deposits from banks | 29,804 | 16,384 | |||
Other liabilities | 20,730 | 29,193 | |||
Goodwill arising on acquisition | 302 | ||||
Net cash outflow from acquisitions | 1,923 | 20 | 5 | ||
Business combinations [member] | |||||
CONSOLIDATED CASH FLOW STATEMENT (Details) - Schedule of Acquisition of Group Undertakings and Businesses [Line Items] | |||||
Cash and cash equivalents | 123 | ||||
Loans and receivables: Loans and advances to customers | 7,811 | ||||
Available-for-sale financial assets | 16 | ||||
Intangible assets | 702 | ||||
Property, plant and equipment | 6 | ||||
Other assets | 414 | ||||
Deposits from banks | [1] | (6,431) | |||
Other liabilities | (927) | ||||
Goodwill arising on acquisition | 302 | ||||
Cash consideration | 2,016 | ||||
Less: Cash and cash equivalents acquired | (123) | ||||
Net cash outflow from acquisitions | 1,923 | 20 | 5 | ||
Business combinations [member] | MBNA Limited [Member] | |||||
CONSOLIDATED CASH FLOW STATEMENT (Details) - Schedule of Acquisition of Group Undertakings and Businesses [Line Items] | |||||
Net cash outflow from acquisitions | 1,893 | ||||
Business combinations [member] | Other Joint Ventures [Member] | |||||
CONSOLIDATED CASH FLOW STATEMENT (Details) - Schedule of Acquisition of Group Undertakings and Businesses [Line Items] | |||||
Net cash outflow from acquisitions | £ 30 | £ 20 | £ 5 | ||
[1] | Upon acquisition, the funding of MBNA was assumed by Lloyds Bank plc. |
CONSOLIDATED CASH FLOW STATE268
CONSOLIDATED CASH FLOW STATEMENT (Details) - Schedule of Disposal and Closure of Group Undertakings and Businesses - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
CONSOLIDATED CASH FLOW STATEMENT (Details) - Schedule of Disposal and Closure of Group Undertakings and Businesses [Line Items] | |||
Trading and other assets at fair value through profit or loss | £ 162,878 | £ 151,174 | |
Loans and advances to customers | 472,498 | 457,958 | |
Loans and advances to banks | 6,611 | 26,902 | £ 25,117 |
Available-for-sale financial assets | 42,098 | 56,524 | |
Property, plant and equipment | 12,727 | 12,972 | |
Customer deposits | 418,124 | 415,460 | |
Debt securities in issue | 72,450 | 76,314 | |
Liabilities arising from insurance contracts and participating investment contracts | 103,413 | 94,390 | |
Liabilities arising from non-participating investment contracts | 15,447 | 20,112 | |
Non-controlling interests | 237 | 440 | |
Other net assets (liabilities) | 20,730 | 29,193 | |
762,966 | 769,328 | ||
(Loss) profit on sale | 46 | ||
Net cash inflow (outflow) | 129 | 5 | (4,071) |
Other disposals of assets [member] | |||
CONSOLIDATED CASH FLOW STATEMENT (Details) - Schedule of Disposal and Closure of Group Undertakings and Businesses [Line Items] | |||
Trading and other assets at fair value through profit or loss | 3,420 | ||
Loans and advances to customers | 342 | 21,333 | |
Loans and advances to banks | 5,539 | ||
Available-for-sale financial assets | 654 | ||
Value of in-force business | 60 | ||
Property, plant and equipment | 150 | ||
342 | 31,156 | ||
Customer deposits | (24,613) | ||
Debt securities in issue | (9) | ||
Liabilities arising from insurance contracts and participating investment contracts | (3,828) | ||
Liabilities arising from non-participating investment contracts | (549) | ||
Non-controlling interests | (242) | (825) | |
Other net assets (liabilities) | 29 | 5 | (314) |
(213) | 5 | (30,138) | |
Net assets | 129 | 5 | 1,018 |
(Loss) profit on sale | (46) | ||
Cash consideration received on losing control of group undertakings and businesses | 129 | 5 | 972 |
Cash and cash equivalents disposed | (5,043) | ||
Net cash inflow (outflow) | £ 129 | £ 5 | £ (4,071) |
EVENTS SINCE THE BALANCE SHE269
EVENTS SINCE THE BALANCE SHEET DATE (Details) £ in Billions | 12 Months Ended |
Dec. 31, 2017GBP (£) | |
Top of range [member] | Major ordinary share transactions [member] | |
EVENTS SINCE THE BALANCE SHEET DATE (Details) [Line Items] | |
Payments to acquire or redeem entity's shares | £ 1 |
FUTURE ACCOUNTING DEVELOPMENTS
FUTURE ACCOUNTING DEVELOPMENTS (Details) £ in Millions | 12 Months Ended |
Dec. 31, 2017GBP (£) | |
IFRS 9 [Member] | |
FUTURE ACCOUNTING DEVELOPMENTS (Details) [Line Items] | |
Impairment loss (impairment gain and reversal of impairment loss) determined in accordance with IFRS 9 | £ 1,300 |
Increase (decrease) in financial assets arising from change in measurement attribute, initial application of IFRS 9 | (200) |
IFRS9 Impact On Equity | 1,200 |
IFRS 15 [Member] | |
FUTURE ACCOUNTING DEVELOPMENTS (Details) [Line Items] | |
IFRS15 Impact On Deferred Income | 14 |
Increase (decrease) in equity | £ 11 |
PARENT COMPANY DISCLOSURES (Det
PARENT COMPANY DISCLOSURES (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
PARENT COMPANY DISCLOSURES (Details) [Line Items] | |||
Tax Credit Attributable To Ordinary Shareholders | £ 102 | £ 91 | £ 80 |
Company [Member] | |||
PARENT COMPANY DISCLOSURES (Details) [Line Items] | |||
Profit Attributable To Other Equity Holders | 415 | 412 | 394 |
Tax Credit Attributable To Ordinary Shareholders Arising On Profit Attributable To Other Equity Holders | £ 79 | ||
Tax Credit Attributable To Ordinary Shareholders | £ 82 | £ 80 |
PARENT COMPANY DISCLOSURES (272
PARENT COMPANY DISCLOSURES (Details) - Company Income Statement - GBP (£) £ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
PARENT COMPANY DISCLOSURES (Details) - Company Income Statement [Line Items] | ||||
Net interest (expense) income | £ 16,006 | £ 16,620 | £ 17,615 | |
Operating expenses | (12,346) | (12,627) | (15,387) | |
Tax expense | 1,728 | 1,724 | 688 | |
Profit for the year | 5,625 | 3,888 | 1,644 | |
Profit attributable to ordinary shareholders | 3,392 | 1,651 | 466 | |
Parent [member] | ||||
PARENT COMPANY DISCLOSURES (Details) - Company Income Statement [Line Items] | ||||
Net interest (expense) income | (121) | 66 | 276 | |
Other income | 2,792 | 3,618 | 983 | |
Total income | 2,671 | 3,684 | 1,259 | |
Operating expenses | (255) | (221) | (290) | |
Profit on ordinary activities before tax | 2,416 | 3,463 | 969 | |
Tax expense | (17) | (328) | (72) | |
Profit for the year | 2,399 | 3,135 | 897 | |
Profit attributable to ordinary shareholders | 1,984 | 2,723 | 503 | |
Profit attributable to other equity holders | [1] | £ 415 | £ 412 | £ 394 |
[1] | The profit after tax attributable to other equity holders of 415 million (2016: 412 million; 2015: 394 million) is offset in reserves by a tax credit attributable to ordinary shareholders of 79 million (2016: 82 million; 2015: 80 million). |
PARENT COMPANY DISCLOSURES (273
PARENT COMPANY DISCLOSURES (Details) - Company Balance Sheet - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Assets | ||||
Deferred tax assets | £ 2,284 | £ 2,706 | ||
Derivative financial instruments | 25,834 | 36,138 | ||
Other assets | 13,537 | 12,755 | ||
Cash and cash equivalents | 60,982 | 62,388 | £ 71,953 | £ 65,147 |
Current tax recoverable | 16 | 28 | ||
Total assets | 812,109 | 817,793 | ||
Equity and liabilities | ||||
Share capital | 7,197 | 7,146 | 7,146 | |
Share premium account | 17,634 | 17,622 | 17,412 | 17,281 |
Merger reserve | 7,766 | 7,766 | 7,976 | |
Capital redemption reserve | 4,115 | 4,115 | 4,115 | |
Retained profits | 4,905 | 3,250 | ||
Shareholders’ equity | 48,906 | 48,025 | ||
Other equity instruments | 5,355 | 5,355 | 5,355 | £ 5,355 |
Total equity | 49,143 | 48,465 | ||
Debt securities in issue | 72,450 | 76,314 | ||
Subordinated liabilities | 17,922 | 19,831 | £ 23,312 | |
Derivative financial instruments | 26,124 | 34,924 | ||
Other liabilities | 20,730 | 29,193 | ||
Total liabilities | 762,966 | 769,328 | ||
Total equity and liabilities | 812,109 | 817,793 | ||
B Company [Member] | ||||
Assets | ||||
Investment in subsidiaries | 44,863 | 44,188 | ||
Loans to subsidiaries | 14,379 | 6,912 | ||
Deferred tax assets | 22 | 38 | ||
59,264 | 51,138 | |||
Derivative financial instruments | 265 | 461 | ||
Other assets | 961 | 959 | ||
Amounts due from subsidiaries | 47 | 67 | ||
Cash and cash equivalents | 272 | 42 | ||
Current tax recoverable | 724 | 465 | ||
2,269 | 1,994 | |||
Total assets | 61,533 | 53,132 | ||
Equity and liabilities | ||||
Share capital | 7,197 | 7,146 | ||
Share premium account | 17,634 | 17,622 | ||
Merger reserve | 7,423 | 7,423 | ||
Capital redemption reserve | 4,115 | 4,115 | ||
Retained profits | 1,500 | 1,584 | ||
Shareholders’ equity | 37,869 | 37,890 | ||
Other equity instruments | 5,355 | 5,355 | ||
Total equity | 43,224 | 43,245 | ||
Debt securities in issue | 10,886 | 2,455 | ||
Subordinated liabilities | 3,993 | 4,329 | ||
14,879 | 6,784 | |||
Derivative financial instruments | 327 | |||
Other liabilities | 3,103 | 3,103 | ||
3,430 | 3,103 | |||
Total liabilities | 18,309 | 9,887 | ||
Total equity and liabilities | £ 61,533 | £ 53,132 |
PARENT COMPANY DISCLOSURES (274
PARENT COMPANY DISCLOSURES (Details) - Company Statement of Changes in Equity - GBP (£) £ in Millions | 12 Months Ended | |||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||||
PARENT COMPANY DISCLOSURES (Details) - Company Statement of Changes in Equity [Line Items] | ||||||
Balance at 1 January | £ 48,465 | |||||
Total comprehensive income | 3,502 | £ 3,738 | £ (84) | |||
Redemption of preference shares | [1] | 210 | 131 | |||
Movement in treasury shares | (411) | (175) | (816) | |||
Value of employee services: | ||||||
Balance At 31 December | 49,143 | 48,465 | ||||
Share Capital and Premium [Member] | C Company [member] | ||||||
PARENT COMPANY DISCLOSURES (Details) - Company Statement of Changes in Equity [Line Items] | ||||||
Balance at 1 January | 24,768 | 24,558 | 24,427 | |||
Total comprehensive income | [2] | |||||
Issue of ordinary shares | 63 | |||||
Redemption of preference shares | 210 | 131 | ||||
Value of employee services: | ||||||
Balance At 31 December | 24,831 | 24,768 | 24,558 | |||
Merger reserve [member] | C Company [member] | ||||||
PARENT COMPANY DISCLOSURES (Details) - Company Statement of Changes in Equity [Line Items] | ||||||
Balance at 1 January | 7,423 | 7,633 | 7,764 | |||
Total comprehensive income | [2] | |||||
Redemption of preference shares | (210) | (131) | ||||
Value of employee services: | ||||||
Balance At 31 December | 7,423 | 7,423 | 7,633 | |||
Capital redemption reserve [member] | C Company [member] | ||||||
PARENT COMPANY DISCLOSURES (Details) - Company Statement of Changes in Equity [Line Items] | ||||||
Balance at 1 January | 4,115 | 4,115 | 4,115 | |||
Total comprehensive income | [2] | |||||
Value of employee services: | ||||||
Balance At 31 December | 4,115 | 4,115 | 4,115 | |||
Retained earnings [member] | C Company [member] | ||||||
PARENT COMPANY DISCLOSURES (Details) - Company Statement of Changes in Equity [Line Items] | ||||||
Balance at 1 January | [2] | 1,584 | 785 | 1,720 | ||
Total comprehensive income | [2] | 2,399 | 3,135 | 897 | ||
Dividends paid | (2,284) | [2] | (2,014) | [2] | (1,070) | |
Distributions on other equity instruments, net of tax | [2] | (336) | (330) | (314) | ||
Redemption of preference shares | [2] | |||||
Movement in treasury shares | [2] | (277) | (301) | (753) | ||
Value of employee services: | ||||||
Share option schemes | [2] | 82 | 141 | 133 | ||
Other employee award schemes | [2] | 332 | 168 | 172 | ||
Balance At 31 December | [2] | 1,500 | 1,584 | 785 | ||
Equity attributable to owners of parent [member] | C Company [member] | ||||||
PARENT COMPANY DISCLOSURES (Details) - Company Statement of Changes in Equity [Line Items] | ||||||
Balance at 1 January | 37,890 | 37,091 | 38,026 | |||
Total comprehensive income | [2] | 2,399 | 3,135 | 897 | ||
Dividends paid | (2,284) | (2,014) | (1,070) | |||
Distributions on other equity instruments, net of tax | (336) | (330) | (314) | |||
Issue of ordinary shares | 63 | |||||
Movement in treasury shares | (277) | (301) | (753) | |||
Value of employee services: | ||||||
Share option schemes | 82 | 141 | 133 | |||
Other employee award schemes | 332 | 168 | 172 | |||
Balance At 31 December | 37,869 | 37,890 | 37,091 | |||
Other Equity Instruments [Member] | C Company [member] | ||||||
PARENT COMPANY DISCLOSURES (Details) - Company Statement of Changes in Equity [Line Items] | ||||||
Balance at 1 January | 5,355 | 5,355 | 5,355 | |||
Total comprehensive income | [2] | |||||
Value of employee services: | ||||||
Balance At 31 December | 5,355 | 5,355 | 5,355 | |||
Equity [member] | C Company [member] | ||||||
PARENT COMPANY DISCLOSURES (Details) - Company Statement of Changes in Equity [Line Items] | ||||||
Balance at 1 January | 43,245 | 42,446 | 43,381 | |||
Total comprehensive income | [2] | 2,399 | 3,135 | 897 | ||
Dividends paid | (2,284) | (2,014) | (1,070) | |||
Distributions on other equity instruments, net of tax | (336) | (330) | (314) | |||
Issue of ordinary shares | 63 | |||||
Movement in treasury shares | (277) | (301) | (753) | |||
Value of employee services: | ||||||
Share option schemes | 82 | 141 | 133 | |||
Other employee award schemes | 332 | 168 | 172 | |||
Balance At 31 December | £ 43,224 | £ 43,245 | £ 42,446 | |||
[1] | During the year ended 31 December 2016, the Company redeemed all of its outstanding 6.267% Non-cumulative Fixed to Floating Rate Callable US Dollar Preference Shares at their combined sterling equivalent par value of £210 million. These preference shares had been accounted for as subordinated liabilities. On redemption an amount of £210 million was transferred from the distributable merger reserve to the share premium account (2015: £131 million in respect of the redemption of the outstanding 6.0884% Non-cumulative Fixed to Floating Rate Preference Shares and 5.92% Non-cumulative Fixed to Floating Rate Preference Shares). | |||||
[2] | Total comprehensive income comprises only the profit (loss) for the year. |
PARENT COMPANY DISCLOSURES (275
PARENT COMPANY DISCLOSURES (Details) - Company Cash Flow Statement - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
PARENT COMPANY DISCLOSURES (Details) - Company Cash Flow Statement [Line Items] | |||
Profit before tax | £ 5,625 | £ 3,888 | £ 1,644 |
Change in other assets | (661) | 961 | 7,930 |
Change in other liabilities and other items | 136 | (363) | 1,349 |
Net cash provided by (used in) operating activities | (3,195) | 2,074 | 16,372 |
Cash flows from investing activities | |||
Acquisition of subsidiaries | 1,923 | 20 | 5 |
Net cash (used in) provided by investing activities | 6,808 | (686) | (3,310) |
Cash flows from financing activities | |||
Dividends paid to ordinary shareholders | 2,284 | 2,014 | 1,070 |
Distributions on other equity instruments | 415 | 412 | 394 |
Issue of subordinated liabilities | 1,061 | 338 | |
Interest paid on subordinated liabilities | 1,275 | 1,687 | 1,840 |
Repayment of subordinated liabilities | 1,008 | 7,885 | 3,199 |
Proceeds from issue of ordinary shares | 14 | ||
Net cash provided by financing activities | (5,019) | (10,974) | (6,258) |
Change in cash and cash equivalents | (1,406) | (9,565) | 6,806 |
Cash and cash equivalents at beginning of year | 62,388 | 71,953 | 65,147 |
Cash and cash equivalents at end of year | 60,982 | 62,388 | 71,953 |
D Company [member] | |||
PARENT COMPANY DISCLOSURES (Details) - Company Cash Flow Statement [Line Items] | |||
Profit before tax | 2,416 | 3,463 | 969 |
Fair value and exchange adjustments and other non-cash items | 495 | 1,986 | (1,357) |
Change in other assets | 18 | (50) | (566) |
Change in other liabilities and other items | 8,431 | (8,392) | 458 |
Dividends received | (2,650) | (3,759) | (1,080) |
Distributions on other equity instruments received | (292) | (119) | |
Tax (paid) received | (197) | (679) | (142) |
Net cash provided by (used in) operating activities | 8,221 | (7,550) | (1,718) |
Cash flows from investing activities | |||
Return of capital contribution | 77 | 441 | 600 |
Dividends received | 2,650 | 3,759 | 1,080 |
Distributions on other equity instruments received | 292 | 119 | |
Capital injection to Lloyds Bank plc | (3,522) | ||
Acquisition of subsidiaries | (320) | ||
Amounts advanced to subsidiaries | (8,476) | (4,978) | (1,157) |
Redemption of loans to subsidiaries | 475 | 13,166 | 570 |
Interest received on loans to subsidiaries | 244 | 496 | 763 |
Net cash (used in) provided by investing activities | (5,058) | 9,481 | 1,856 |
Cash flows from financing activities | |||
Dividends paid to ordinary shareholders | (2,284) | (2,014) | (1,070) |
Distributions on other equity instruments | (415) | (412) | (394) |
Issue of subordinated liabilities | 1,061 | 1,436 | |
Interest paid on subordinated liabilities | (248) | (229) | (129) |
Repayment of subordinated liabilities | (319) | (152) | |
Proceeds from issue of ordinary shares | 14 | ||
Net cash provided by financing activities | (2,933) | (1,913) | (309) |
Change in cash and cash equivalents | 230 | 18 | (171) |
Cash and cash equivalents at beginning of year | 42 | 24 | 195 |
Cash and cash equivalents at end of year | £ 272 | £ 42 | £ 24 |
PARENT COMPANY DISCLOSURES (276
PARENT COMPANY DISCLOSURES (Details) - Company Interests in Subsidiaries - UK [Member] | 12 Months Ended | |
Dec. 31, 2017 | ||
Lloyds Bank plc [Member] | England [Member] | Banking and financial services [Member] | ||
PARENT COMPANY DISCLOSURES (Details) - Company Interests in Subsidiaries [Line Items] | ||
Principal subsidiary | 100.00% | |
Scottish Widows Limited [Member] | Scotland [Member] | Life assurance [Member] | ||
PARENT COMPANY DISCLOSURES (Details) - Company Interests in Subsidiaries [Line Items] | ||
Principal subsidiary | [1] | |
HBOS plc [Member] | Scotland [Member] | Holding company [Member] | ||
PARENT COMPANY DISCLOSURES (Details) - Company Interests in Subsidiaries [Line Items] | ||
Principal subsidiary | [1] | |
Bank of Scotland plc [Member] | Scotland [Member] | Banking and financial services [Member] | ||
PARENT COMPANY DISCLOSURES (Details) - Company Interests in Subsidiaries [Line Items] | ||
Principal subsidiary | [1] | |
[1] | Indirect interest. |
CONDENSED CONSOLIDATING FINA277
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Details) [Line Items] | |||
Proportion of ownership interest in subsidiary | 100.00% | ||
Increase (decrease) through change in equity of subsidiaries, equity | £ 1,408 | £ (1,072) | £ (37) |
Company [Member] | |||
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Details) [Line Items] | |||
Increase (decrease) through changes in ownership interests in subsidiaries that do not result in loss of control, equity | 5,682 | 4,780 | |
Lloyds Bank [Member] | |||
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Details) [Line Items] | |||
Increase (decrease) through changes in ownership interests in subsidiaries that do not result in loss of control, equity attributable to owners of parent | (9,962) | (8,268) | |
Equity attributable to owners of parent [member] | |||
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Details) [Line Items] | |||
Increase (decrease) through change in equity of subsidiaries, equity | £ (1,140) | £ (851) | £ (10,248) |
CONDENSED CONSOLIDATING FINA278
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Details) - Schedule of Consolidated Income Statements - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Details) - Schedule of Consolidated Income Statements [Line Items] | |||
Net interest income | £ 10,912 | £ 9,274 | £ 11,318 |
Other income | 1,995 | 2,035 | 1,516 |
Total income | 34,237 | 39,611 | 23,150 |
Operating expenses | (12,346) | (12,627) | (15,387) |
Trading surplus | 6,313 | 4,640 | 2,034 |
Profit before tax | 5,625 | 3,888 | 1,644 |
Taxation | 1,728 | 1,724 | 688 |
Profit for the year | 3,897 | 2,164 | 956 |
Company [Member] | |||
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Details) - Schedule of Consolidated Income Statements [Line Items] | |||
Net interest income | (121) | 66 | 276 |
Other income | 2,792 | 3,618 | 983 |
Total income | 2,671 | 3,684 | 1,259 |
Total income, net of insurance claims | 2,671 | 3,684 | 1,259 |
Operating expenses | (255) | (221) | (290) |
Trading surplus | 2,416 | 3,463 | 969 |
Profit before tax | 2,416 | 3,463 | 969 |
Taxation | (17) | (328) | (72) |
Profit for the year | 2,399 | 3,135 | 897 |
Lloyds Bank [Member] | |||
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Details) - Schedule of Consolidated Income Statements [Line Items] | |||
Net interest income | 5,829 | 4,883 | 4,170 |
Other income | 7,642 | 5,489 | 16,057 |
Total income | 13,471 | 10,372 | 20,227 |
Total income, net of insurance claims | 13,471 | 10,372 | 20,227 |
Operating expenses | (7,201) | (7,722) | (8,994) |
Trading surplus | 6,270 | 2,650 | 11,233 |
Impairment | (462) | (620) | (265) |
Profit before tax | 5,808 | 2,030 | 10,968 |
Taxation | (529) | (77) | (57) |
Profit for the year | 5,279 | 1,953 | 10,911 |
Subsidiaries [member] | |||
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Details) - Schedule of Consolidated Income Statements [Line Items] | |||
Net interest income | 5,360 | 4,661 | 7,129 |
Other income | 22,553 | 30,349 | 10,035 |
Total income | 27,913 | 35,010 | 17,164 |
Insurance claims | (15,578) | (22,344) | (5,729) |
Total income, net of insurance claims | 12,335 | 12,666 | 11,435 |
Operating expenses | (6,939) | (6,380) | (6,948) |
Trading surplus | 5,396 | 6,286 | 4,487 |
Impairment | (281) | (239) | (222) |
Profit before tax | 5,115 | 6,047 | 4,265 |
Taxation | (1,153) | (1,815) | (803) |
Profit for the year | 3,962 | 4,232 | 3,462 |
Consolidation adjustments [Member] | |||
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Details) - Schedule of Consolidated Income Statements [Line Items] | |||
Net interest income | (156) | (336) | (257) |
Other income | (9,662) | (9,119) | (15,243) |
Total income | (9,818) | (9,455) | (15,500) |
Total income, net of insurance claims | (9,818) | (9,455) | (15,500) |
Operating expenses | 2,049 | 1,696 | 845 |
Trading surplus | (7,769) | (7,759) | (14,655) |
Impairment | 55 | 107 | 97 |
Profit before tax | (7,714) | (7,652) | (14,558) |
Taxation | (29) | 496 | 244 |
Profit for the year | (7,743) | (7,156) | (14,314) |
Group [Member] | |||
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Details) - Schedule of Consolidated Income Statements [Line Items] | |||
Net interest income | 10,912 | 9,274 | 11,318 |
Other income | 23,325 | 30,337 | 11,832 |
Total income | 34,237 | 39,611 | 23,150 |
Insurance claims | (15,578) | (22,344) | (5,729) |
Total income, net of insurance claims | 18,659 | 17,267 | 17,421 |
Operating expenses | (12,346) | (12,627) | (15,387) |
Trading surplus | 6,313 | 4,640 | 2,034 |
Impairment | (688) | (752) | (390) |
Profit before tax | 5,625 | 3,888 | 1,644 |
Taxation | (1,728) | (1,724) | (688) |
Profit for the year | £ 3,897 | £ 2,164 | £ 956 |
CONDENSED CONSOLIDATING FINA279
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Details) - Schedule of Consolidated Statements of Comprehensive Income - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Details) - Schedule of Consolidated Statements of Comprehensive Income [Line Items] | |||
Profit (loss) for the year | £ 3,897 | £ 2,164 | £ 956 |
Post–retirement defined benefit scheme remeasurements: | |||
Remeasurements before taxation | (628) | 1,348 | 274 |
Taxation | (146) | 320 | 59 |
(482) | 1,028 | 215 | |
Gains and losses attributable to own credit risk: | |||
Gains (losses) before taxation | (55) | ||
Taxation | 15 | ||
(40) | |||
Movements in revaluation reserve in respect of available-for-sale financial assets: | |||
Taxation | 63 | (301) | (6) |
Movements in cash flow hedging reserve: | |||
Taxation | 283 | (466) | 7 |
(731) | 1,409 | (412) | |
Other comprehensive income for the year, net of tax | (395) | 1,574 | (1,040) |
Total comprehensive income for the year | 3,502 | 3,738 | (84) |
Total comprehensive income attributable to ordinary shareholders | 2,997 | 3,225 | (574) |
Total comprehensive income attributable to other equity holders | 415 | 412 | 394 |
Total comprehensive income attributable to equity holders | 3,412 | 3,637 | (180) |
Total comprehensive income attributable to non-controlling interests | 90 | 101 | 96 |
Company [Member] | |||
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Details) - Schedule of Consolidated Statements of Comprehensive Income [Line Items] | |||
Profit (loss) for the year | 2,399 | 3,135 | 897 |
Movements in cash flow hedging reserve: | |||
Total comprehensive income for the year | 2,399 | 3,135 | 897 |
Total comprehensive income attributable to ordinary shareholders | 1,984 | 2,723 | 503 |
Total comprehensive income attributable to other equity holders | 415 | 412 | 394 |
Total comprehensive income attributable to equity holders | 2,399 | 3,135 | 897 |
Lloyds Bank [Member] | |||
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Details) - Schedule of Consolidated Statements of Comprehensive Income [Line Items] | |||
Profit (loss) for the year | 5,279 | 1,953 | 10,911 |
Post–retirement defined benefit scheme remeasurements: | |||
Remeasurements before taxation | 442 | (682) | 31 |
Taxation | (110) | 184 | (1) |
332 | (498) | 30 | |
Gains and losses attributable to own credit risk: | |||
Gains (losses) before taxation | (55) | ||
Taxation | 15 | ||
(40) | |||
Movements in revaluation reserve in respect of available-for-sale financial assets: | |||
Adjustment on transfer from held-to-maturity portfolio | 1,544 | ||
Change in fair value | 231 | 268 | (300) |
Income statement transfers in respect of disposals | (333) | (507) | (14) |
Income statement transfers in respect of impairment | 172 | 1 | |
Taxation | 46 | (269) | (17) |
(56) | 1,208 | (330) | |
Movements in cash flow hedging reserve: | |||
Effective portion of changes in fair value | 15 | 1,290 | 294 |
Net income statement transfers | (436) | (241) | (421) |
Taxation | 130 | (258) | (76) |
(291) | 791 | (203) | |
Currency translation differences (tax: nil) | (5) | 19 | (13) |
Other comprehensive income for the year, net of tax | (60) | 1,520 | (516) |
Total comprehensive income for the year | 5,219 | 3,473 | 10,395 |
Total comprehensive income attributable to ordinary shareholders | 4,946 | 3,354 | 10,395 |
Total comprehensive income attributable to other equity holders | 273 | 119 | |
Total comprehensive income attributable to equity holders | 5,219 | 3,473 | 10,395 |
Subsidiaries [member] | |||
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Details) - Schedule of Consolidated Statements of Comprehensive Income [Line Items] | |||
Profit (loss) for the year | 3,962 | 4,232 | 3,462 |
Post–retirement defined benefit scheme remeasurements: | |||
Remeasurements before taxation | 186 | (666) | (305) |
Taxation | (36) | 136 | 60 |
150 | (530) | (245) | |
Movements in revaluation reserve in respect of available-for-sale financial assets: | |||
Change in fair value | 38 | 84 | (27) |
Income statement transfers in respect of disposals | (131) | (68) | (37) |
Income statement transfers in respect of impairment | 9 | 1 | 38 |
Taxation | 17 | (32) | 2 |
(67) | (15) | (24) | |
Movements in cash flow hedging reserve: | |||
Effective portion of changes in fair value | (136) | 125 | 183 |
Net income statement transfers | 46 | (233) | (557) |
Taxation | 23 | 29 | 59 |
(67) | (79) | (315) | |
Currency translation differences (tax: nil) | (27) | 44 | 52 |
Other comprehensive income for the year, net of tax | (11) | (580) | (532) |
Total comprehensive income for the year | 3,951 | 3,652 | 2,930 |
Total comprehensive income attributable to ordinary shareholders | 3,740 | 3,450 | 2,834 |
Total comprehensive income attributable to other equity holders | 121 | 101 | |
Total comprehensive income attributable to equity holders | 3,861 | 3,551 | 2,834 |
Total comprehensive income attributable to non-controlling interests | 90 | 101 | 96 |
Consolidation adjustments [Member] | |||
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Details) - Schedule of Consolidated Statements of Comprehensive Income [Line Items] | |||
Profit (loss) for the year | (7,743) | (7,156) | (14,314) |
Movements in revaluation reserve in respect of available-for-sale financial assets: | |||
Change in fair value | 34 | 4 | 9 |
Income statement transfers in respect of disposals | 18 | ||
Income statement transfers in respect of impairment | (3) | (35) | |
Taxation | 9 | ||
49 | 4 | (17) | |
Movements in cash flow hedging reserve: | |||
Effective portion of changes in fair value | (242) | 1,017 | 60 |
Net income statement transfers | (261) | (83) | 22 |
Taxation | 130 | (237) | 24 |
(373) | 697 | 106 | |
Currency translation differences (tax: nil) | (67) | (81) | |
Other comprehensive income for the year, net of tax | (324) | 634 | 8 |
Total comprehensive income for the year | (8,067) | (6,522) | (14,306) |
Total comprehensive income attributable to ordinary shareholders | (7,673) | (6,302) | (14,306) |
Total comprehensive income attributable to other equity holders | (394) | (220) | |
Total comprehensive income attributable to equity holders | (8,067) | (6,522) | (14,306) |
Group [Member] | |||
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Details) - Schedule of Consolidated Statements of Comprehensive Income [Line Items] | |||
Profit (loss) for the year | 3,897 | 2,164 | 956 |
Post–retirement defined benefit scheme remeasurements: | |||
Remeasurements before taxation | 628 | (1,348) | (274) |
Taxation | (146) | 320 | 59 |
482 | (1,028) | (215) | |
Gains and losses attributable to own credit risk: | |||
Gains (losses) before taxation | (55) | ||
Taxation | 15 | ||
(40) | |||
Movements in revaluation reserve in respect of available-for-sale financial assets: | |||
Adjustment on transfer from held-to-maturity portfolio | 1,544 | ||
Change in fair value | 303 | 356 | (318) |
Income statement transfers in respect of disposals | (446) | (575) | (51) |
Income statement transfers in respect of impairment | 6 | 173 | 4 |
Taxation | 63 | (301) | (6) |
(74) | 1,197 | (371) | |
Movements in cash flow hedging reserve: | |||
Effective portion of changes in fair value | (363) | 2,432 | 537 |
Net income statement transfers | (651) | (557) | (956) |
Taxation | 283 | (466) | 7 |
(731) | 1,409 | (412) | |
Currency translation differences (tax: nil) | (32) | (4) | (42) |
Other comprehensive income for the year, net of tax | (395) | 1,574 | (1,040) |
Total comprehensive income for the year | 3,502 | 3,738 | (84) |
Total comprehensive income attributable to ordinary shareholders | 2,997 | 3,225 | (574) |
Total comprehensive income attributable to other equity holders | 415 | 412 | 394 |
Total comprehensive income attributable to equity holders | 3,412 | 3,637 | (180) |
Total comprehensive income attributable to non-controlling interests | £ 90 | £ 101 | £ 96 |
CONDENSED CONSOLIDATING FINA280
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Details) - Schedule of Consolidated Balance Sheets - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | |||
Cash and balances at central banks | £ 58,521 | £ 47,452 | £ 58,417 |
Items in course of collection from banks | 755 | 706 | |
Derivative financial assets | 25,834 | 36,138 | |
Loans and receivables: | |||
Loans and advances to banks | 6,611 | 26,902 | 25,117 |
Loans and advances to customers | 472,498 | 457,958 | |
Debt securities | 3,643 | 3,397 | |
Available-for-sale financial assets | 42,098 | 56,524 | |
Goodwill | 2,310 | 2,016 | 2,016 |
Property, plant and equipment | 12,727 | 12,972 | |
Current tax recoverable | 274 | 226 | |
Deferred tax assets | 2,284 | 2,706 | |
Total assets | 772,838 | 780,251 | |
Liabilities | |||
Deposits from banks | 29,804 | 16,384 | |
Customer deposits | 418,124 | 415,460 | |
Items in course of transmission to banks | 584 | 548 | |
Trading and other financial liabilities at fair value through profit or loss | 43,062 | 45,079 | |
Derivative financial liabilities | 26,124 | 34,924 | |
Notes in circulation | 29,418 | 27,182 | |
Debt securities in issue | (72,450) | (76,314) | |
Liabilities arising from insurance contracts and participating investment contracts | 103,413 | 94,390 | |
Other liabilities | 20,730 | 29,193 | |
Retirement benefit obligations | 358 | 822 | |
Other provisions | 5,546 | 5,218 | |
Subordinated liabilities | (17,922) | (19,831) | £ (23,312) |
Total liabilities | 762,966 | 769,328 | |
Equity | |||
Shareholders’ equity | 48,906 | 48,025 | |
Other equity instruments | 1,197 | 1,213 | |
Non-controlling interests | 237 | 440 | |
Total equity | 49,143 | 48,465 | |
Total equity and liabilities | 812,109 | 817,793 | |
Company [Member] | |||
Assets | |||
Derivative financial assets | 265 | 461 | |
Loans and receivables: | |||
Due from fellow Lloyds Banking Group undertakings | 14,698 | 7,021 | |
Current tax recoverable | 724 | 465 | |
Deferred tax assets | 22 | 38 | |
Investment in subsidiary undertakings, including assets held for sale | 44,863 | 44,188 | |
Other assets | 961 | 959 | |
Total assets | 61,533 | 53,132 | |
Liabilities | |||
Due to fellow Lloyds Banking Group undertakings | 2,168 | 2,690 | |
Derivative financial liabilities | 327 | ||
Debt securities in issue | 10,886 | 2,455 | |
Other liabilities | 935 | 413 | |
Subordinated liabilities | 3,993 | 4,329 | |
Total liabilities | 18,309 | 9,887 | |
Equity | |||
Shareholders’ equity | 37,869 | 37,890 | |
Other equity instruments | 5,355 | 5,355 | |
Total equity excluding non-controlling interests | 43,224 | 43,245 | |
Total equity | 43,224 | 43,245 | |
Total equity and liabilities | 61,533 | 53,132 | |
Lloyds Bank [Member] | |||
Assets | |||
Cash and balances at central banks | 55,835 | 44,595 | |
Items in course of collection from banks | 490 | 512 | |
Trading and other financial assets at fair value through profit or loss | 43,977 | 48,309 | |
Derivative financial assets | 26,764 | 36,714 | |
Loans and receivables: | |||
Loans and advances to banks | 3,611 | 4,379 | |
Loans and advances to customers | 170,804 | 161,161 | |
Debt securities | 3,182 | 2,818 | |
Due from fellow Lloyds Banking Group undertakings | 180,772 | 152,260 | |
Available-for-sale financial assets | 42,566 | 55,122 | |
Other intangible assets | 1,415 | 893 | |
Property, plant and equipment | 3,252 | 3,644 | |
Current tax recoverable | 420 | ||
Deferred tax assets | 1,995 | 2,286 | |
Retirement benefit assets | 673 | 254 | |
Investment in subsidiary undertakings, including assets held for sale | 40,500 | 38,757 | |
Other assets | 1,117 | 1,168 | |
Total assets | 576,953 | 553,292 | |
Liabilities | |||
Deposits from banks | 7,538 | 9,450 | |
Customer deposits | 234,397 | 213,135 | |
Due to fellow Lloyds Banking Group undertakings | 112,769 | 86,803 | |
Items in course of transmission to banks | 304 | 292 | |
Trading and other financial liabilities at fair value through profit or loss | 51,045 | 55,776 | |
Derivative financial liabilities | 28,267 | 38,591 | |
Debt securities in issue | 66,249 | 74,366 | |
Other liabilities | 3,425 | 3,295 | |
Retirement benefit obligations | 143 | 399 | |
Current tax liabilities | 105 | 3 | |
Other provisions | 2,593 | 2,833 | |
Subordinated liabilities | 9,341 | 10,575 | |
Total liabilities | 516,176 | 495,518 | |
Equity | |||
Shareholders’ equity | 57,560 | 54,557 | |
Other equity instruments | 3,217 | 3,217 | |
Total equity excluding non-controlling interests | 60,777 | 57,774 | |
Total equity | 60,777 | 57,774 | |
Total equity and liabilities | 576,953 | 553,292 | |
Subsidiaries [member] | |||
Assets | |||
Cash and balances at central banks | 2,686 | 2,857 | |
Items in course of collection from banks | 265 | 194 | |
Trading and other financial assets at fair value through profit or loss | 126,864 | 112,154 | |
Derivative financial assets | 14,785 | 18,737 | |
Loans and receivables: | |||
Loans and advances to banks | 2,975 | 22,498 | |
Loans and advances to customers | 294,463 | 290,036 | |
Debt securities | 420 | 528 | |
Due from fellow Lloyds Banking Group undertakings | 119,914 | 104,314 | |
Available-for-sale financial assets | 1,582 | 3,274 | |
Goodwill | 2,332 | 2,343 | |
Value of in-force business | 4,590 | 4,761 | |
Other intangible assets | 345 | 314 | |
Property, plant and equipment | 9,526 | 9,263 | |
Current tax recoverable | 26 | 26 | |
Deferred tax assets | 2,285 | 1,503 | |
Retirement benefit assets | 69 | 86 | |
Other assets | 12,107 | 11,613 | |
Total assets | 595,234 | 584,501 | |
Liabilities | |||
Deposits from banks | 22,268 | 6,936 | |
Customer deposits | 183,830 | 202,433 | |
Due to fellow Lloyds Banking Group undertakings | 179,952 | 149,152 | |
Items in course of transmission to banks | 280 | 256 | |
Trading and other financial liabilities at fair value through profit or loss | 53 | 945 | |
Derivative financial liabilities | 13,510 | 16,107 | |
Notes in circulation | 1,313 | 1,402 | |
Debt securities in issue | 15,847 | 22,336 | |
Liabilities arising from insurance contracts and participating investment contracts | 103,434 | 94,409 | |
Liabilities arising from non-participating investment contracts | 15,447 | 20,112 | |
Other liabilities | 18,480 | 27,668 | |
Retirement benefit obligations | 134 | 420 | |
Current tax liabilities | 1,242 | 1,390 | |
Deferred tax liabilities | 779 | ||
Other provisions | 2,865 | 2,355 | |
Subordinated liabilities | 8,288 | 10,648 | |
Total liabilities | 567,722 | 556,569 | |
Equity | |||
Shareholders’ equity | 25,470 | 25,687 | |
Other equity instruments | 1,805 | 305 | |
Total equity excluding non-controlling interests | 27,275 | 25,992 | |
Non-controlling interests | 237 | 1,940 | |
Total equity | 27,512 | 27,932 | |
Total equity and liabilities | 595,234 | 584,501 | |
Consolidation adjustments [Member] | |||
Assets | |||
Trading and other financial assets at fair value through profit or loss | (7,963) | (9,289) | |
Derivative financial assets | (15,980) | (19,774) | |
Loans and receivables: | |||
Loans and advances to banks | 25 | 25 | |
Loans and advances to customers | 7,231 | 6,761 | |
Debt securities | 41 | 51 | |
Due from fellow Lloyds Banking Group undertakings | (315,384) | (263,595) | |
Available-for-sale financial assets | (2,050) | (1,872) | |
Goodwill | (22) | (327) | |
Value of in-force business | 249 | 281 | |
Other intangible assets | 1,075 | 474 | |
Property, plant and equipment | (51) | 65 | |
Current tax recoverable | (734) | (883) | |
Deferred tax assets | (2,018) | (1,121) | |
Retirement benefit assets | (19) | 2 | |
Investment in subsidiary undertakings, including assets held for sale | (85,363) | (82,945) | |
Other assets | (648) | (985) | |
Total assets | (421,611) | (373,132) | |
Liabilities | |||
Deposits from banks | (2) | (2) | |
Customer deposits | (103) | (108) | |
Due to fellow Lloyds Banking Group undertakings | (294,889) | (238,645) | |
Trading and other financial liabilities at fair value through profit or loss | (221) | (2,217) | |
Derivative financial liabilities | (15,980) | (19,774) | |
Debt securities in issue | (20,532) | (22,843) | |
Liabilities arising from insurance contracts and participating investment contracts | (21) | (19) | |
Other liabilities | (2,110) | (2,183) | |
Retirement benefit obligations | 81 | 3 | |
Current tax liabilities | (1,073) | (1,167) | |
Deferred tax liabilities | (779) | ||
Other provisions | 88 | 30 | |
Subordinated liabilities | (3,700) | (5,721) | |
Total liabilities | (339,241) | (292,646) | |
Equity | |||
Shareholders’ equity | (77,348) | (75,464) | |
Other equity instruments | (5,022) | (3,522) | |
Total equity excluding non-controlling interests | (82,370) | (78,986) | |
Non-controlling interests | (1,500) | ||
Total equity | (82,370) | (80,486) | |
Total equity and liabilities | (421,611) | (373,132) | |
Group [Member] | |||
Assets | |||
Cash and balances at central banks | 58,521 | 47,452 | |
Items in course of collection from banks | 755 | 706 | |
Trading and other financial assets at fair value through profit or loss | 162,878 | 151,174 | |
Derivative financial assets | 25,834 | 36,138 | |
Loans and receivables: | |||
Loans and advances to banks | 6,611 | 26,902 | |
Loans and advances to customers | 472,498 | 457,958 | |
Debt securities | 3,643 | 3,397 | |
Available-for-sale financial assets | 42,098 | 56,524 | |
Goodwill | 2,310 | 2,016 | |
Value of in-force business | 4,839 | 5,042 | |
Other intangible assets | 2,835 | 1,681 | |
Property, plant and equipment | 12,727 | 12,972 | |
Current tax recoverable | 16 | 28 | |
Deferred tax assets | 2,284 | 2,706 | |
Retirement benefit assets | 723 | 342 | |
Other assets | 13,537 | 12,755 | |
Total assets | 812,109 | 817,793 | |
Liabilities | |||
Deposits from banks | 29,804 | 16,384 | |
Customer deposits | 418,124 | 415,460 | |
Items in course of transmission to banks | 584 | 548 | |
Trading and other financial liabilities at fair value through profit or loss | 50,877 | 54,504 | |
Derivative financial liabilities | 26,124 | 34,924 | |
Notes in circulation | 1,313 | 1,402 | |
Debt securities in issue | 72,450 | 76,314 | |
Liabilities arising from insurance contracts and participating investment contracts | 103,413 | 94,390 | |
Liabilities arising from non-participating investment contracts | 15,447 | 20,112 | |
Other liabilities | 20,730 | 29,193 | |
Retirement benefit obligations | 358 | 822 | |
Current tax liabilities | 274 | 226 | |
Other provisions | 5,546 | 5,218 | |
Subordinated liabilities | 17,922 | 19,831 | |
Total liabilities | 762,966 | 769,328 | |
Equity | |||
Shareholders’ equity | 43,551 | 42,670 | |
Other equity instruments | 5,355 | 5,355 | |
Total equity excluding non-controlling interests | 48,906 | 48,025 | |
Non-controlling interests | 237 | 440 | |
Total equity | 49,143 | 48,465 | |
Total equity and liabilities | £ 812,109 | £ 817,793 |
CONDENSED CONSOLIDATING FINA281
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Details) - Schedule of Consolidated Statements of Cash Flows - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Details) - Schedule of Consolidated Statements of Cash Flows [Line Items] | |||
Net cash provided by (used in) operating activities | £ (3,195) | £ 2,074 | £ 16,372 |
Proceeds from sale and maturity | 18,675 | 6,335 | 22,000 |
Available-for-sale financial assets: | |||
Purchase of fixed assets | 3,655 | 3,760 | 3,417 |
Disposal of businesses, net of cash disposed | 129 | 5 | (4,071) |
Net cash flows from investing activities | 6,808 | (686) | (3,310) |
Dividends paid to shareholders | 2,284 | 2,014 | 1,070 |
Dividends paid to non-controlling interests | 51 | 29 | 52 |
Interest paid | (1,275) | (1,687) | (1,840) |
Net cash used in financing activities | (5,019) | (10,974) | (6,258) |
Effects of exchange rate changes on cash and cash equivalents | 21 | 2 | |
Change in cash and cash equivalents | (1,406) | (9,565) | 6,806 |
Cash and cash equivalents at beginning of year | 62,388 | 71,953 | 65,147 |
Cash and cash equivalents at end of year | 60,982 | 62,388 | 71,953 |
Proceeds from issue of subordinated liabilities | (1,061) | (338) | |
Repayment of subordinated liabilities | (1,008) | (7,885) | (3,199) |
Change in stake of non-controlling interests | 90 | 101 | 96 |
Company [Member] | |||
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Details) - Schedule of Consolidated Statements of Cash Flows [Line Items] | |||
Net cash provided by (used in) operating activities | 8,221 | (7,550) | (1,718) |
Dividends received from subsidiary undertakings | 2,650 | 3,759 | 1,080 |
Distributions on other equity instruments received | 292 | 119 | |
Return of capital contributions | 77 | 441 | 600 |
Available-for-sale financial assets: | |||
Capital lending to Lloyds Bank | (1,157) | ||
Additional capital lending to subsidiaries | (8,476) | (4,978) | |
Interest received on lending to Lloyds Bank | 244 | 496 | 763 |
Additional capital injections to subsidiaries | (3,522) | ||
Acquisition of businesses, net of cash acquired | (320) | ||
Net cash flows from investing activities | (5,058) | 9,481 | 1,856 |
Dividends paid to shareholders | (2,284) | (2,014) | (1,070) |
Distributions on other equity instruments | (415) | (412) | (394) |
Net cash used in financing activities | (2,933) | (1,913) | (309) |
Change in cash and cash equivalents | 230 | 18 | (171) |
Cash and cash equivalents at beginning of year | 42 | 24 | 195 |
Cash and cash equivalents at end of year | 272 | 42 | 24 |
Proceeds from issue of subordinated liabilities | 1,061 | 1,436 | |
Proceeds from issue of other equity instruments | 14 | ||
Repayment of subordinated liabilities | (319) | (152) | |
Lloyds Bank [Member] | |||
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Details) - Schedule of Consolidated Statements of Cash Flows [Line Items] | |||
Net cash provided by (used in) operating activities | (3,430) | 1,073 | 8,302 |
Purchases | (7,550) | (4,664) | (7,903) |
Proceeds from sale and maturity | 16,480 | 6,429 | 7,055 |
Dividends received from subsidiary undertakings | 4,378 | 3,984 | 12,820 |
Distributions on other equity instruments received | 101 | ||
Available-for-sale financial assets: | |||
Purchase of fixed assets | (1,155) | (1,122) | (1,279) |
Proceeds from sale of fixed assets | 85 | 19 | 61 |
Purchase of other equity instruments issued by subsidiaries | (1,500) | ||
Additional capital lending to subsidiaries | (34) | ||
Additional capital injections to subsidiaries | (309) | (64) | |
Acquisition of businesses, net of cash acquired | (2,026) | ||
Disposal of businesses, net of cash disposed | 592 | 231 | 850 |
Net cash flows from investing activities | 10,871 | 4,568 | 10,040 |
Dividends paid to shareholders | (2,650) | (3,040) | (1,080) |
Distributions on other equity instruments | (273) | (119) | |
Net cash used in financing activities | 3,414 | (16,229) | (5,462) |
Effects of exchange rate changes on cash and cash equivalents | (1) | 2 | |
Change in cash and cash equivalents | 10,854 | (10,586) | 12,880 |
Cash and cash equivalents at beginning of year | 45,266 | 55,852 | 42,972 |
Cash and cash equivalents at end of year | 56,120 | 45,266 | 55,852 |
Proceeds from issue of subordinated liabilities | 2,753 | ||
Proceeds from issue of other equity instruments | 3,217 | ||
Repayment of subordinated liabilities | (675) | (13,200) | (1,266) |
Return of capital contributions | (77) | (441) | (600) |
Capital borrowing from the Company | 8,476 | 1,157 | |
Subsidiaries [member] | |||
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Details) - Schedule of Consolidated Statements of Cash Flows [Line Items] | |||
Net cash provided by (used in) operating activities | (5,959) | 11,131 | 7,472 |
Purchases | (482) | (322) | (13,593) |
Proceeds from sale and maturity | 2,195 | 2,350 | 14,945 |
Available-for-sale financial assets: | |||
Purchase of fixed assets | (2,500) | (2,638) | (2,138) |
Proceeds from sale of fixed assets | 1,359 | 1,665 | 1,476 |
Acquisition of businesses, net of cash acquired | (622) | (20) | (5) |
Disposal of businesses, net of cash disposed | 129 | 5 | 122 |
Net cash flows from investing activities | 79 | 1,040 | 807 |
Dividends paid to shareholders | (4,378) | (4,602) | (12,820) |
Distributions on other equity instruments | (120) | (101) | |
Dividends paid to non-controlling interests | (51) | (29) | (52) |
Net cash used in financing activities | (6,381) | (11,169) | (14,355) |
Effects of exchange rate changes on cash and cash equivalents | 1 | 19 | 2 |
Change in cash and cash equivalents | (12,260) | 1,021 | (6,074) |
Cash and cash equivalents at beginning of year | 17,122 | 16,101 | 22,175 |
Cash and cash equivalents at end of year | 4,862 | 17,122 | 16,101 |
Proceeds from issue of other equity instruments | 305 | ||
Repayment of subordinated liabilities | (1,132) | (4,952) | (2,151) |
Capital contributions received | 309 | 165 | |
Change in stake of non-controlling interests | (8) | 1,459 | |
Consolidation adjustments [Member] | |||
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Details) - Schedule of Consolidated Statements of Cash Flows [Line Items] | |||
Net cash provided by (used in) operating activities | (2,027) | (2,580) | 2,316 |
Purchases | 170 | 56 | 2,142 |
Proceeds from sale and maturity | (2,444) | ||
Dividends received from subsidiary undertakings | (7,028) | (7,743) | (13,900) |
Distributions on other equity instruments received | (393) | (119) | |
Return of capital contributions | (77) | (441) | (600) |
Available-for-sale financial assets: | |||
Purchase of other equity instruments issued by subsidiaries | 1,500 | ||
Capital lending to Lloyds Bank | 1,157 | ||
Additional capital lending to subsidiaries | 8,510 | 4,978 | |
Interest received on lending to Lloyds Bank | (244) | (496) | (763) |
Additional capital injections to subsidiaries | 3,831 | 64 | |
Acquisition of businesses, net of cash acquired | 1,045 | ||
Disposal of businesses, net of cash disposed | (592) | (231) | (5,043) |
Net cash flows from investing activities | 916 | (15,775) | (16,013) |
Dividends paid to shareholders | 7,028 | 7,642 | 13,900 |
Distributions on other equity instruments | 393 | 220 | |
Net cash used in financing activities | 881 | 18,337 | 13,868 |
Change in cash and cash equivalents | (230) | (18) | 171 |
Cash and cash equivalents at beginning of year | (42) | (24) | (195) |
Cash and cash equivalents at end of year | (272) | (42) | (24) |
Proceeds from issue of subordinated liabilities | (2,753) | (1,098) | |
Proceeds from issue of other equity instruments | (3,522) | ||
Repayment of subordinated liabilities | 799 | 10,586 | 370 |
Capital contributions received | (309) | (165) | |
Change in stake of non-controlling interests | (1,500) | ||
Return of capital contributions | 77 | 441 | 600 |
Capital borrowing from the Company | (8,476) | (1,157) | |
Group [Member] | |||
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Details) - Schedule of Consolidated Statements of Cash Flows [Line Items] | |||
Net cash provided by (used in) operating activities | (3,195) | 2,074 | 16,372 |
Purchases | (7,862) | (4,930) | (19,354) |
Proceeds from sale and maturity | 18,675 | 6,335 | 22,000 |
Available-for-sale financial assets: | |||
Purchase of fixed assets | (3,655) | (3,760) | (3,417) |
Proceeds from sale of fixed assets | 1,444 | 1,684 | 1,537 |
Acquisition of businesses, net of cash acquired | (1,923) | (20) | (5) |
Disposal of businesses, net of cash disposed | 129 | 5 | (4,071) |
Net cash flows from investing activities | 6,808 | (686) | (3,310) |
Dividends paid to shareholders | (2,284) | (2,014) | (1,070) |
Distributions on other equity instruments | (415) | (412) | (394) |
Dividends paid to non-controlling interests | (51) | (29) | (52) |
Net cash used in financing activities | (5,019) | (10,974) | (6,258) |
Effects of exchange rate changes on cash and cash equivalents | 21 | 2 | |
Change in cash and cash equivalents | (1,406) | (9,565) | 6,806 |
Cash and cash equivalents at beginning of year | 62,388 | 71,953 | 65,147 |
Cash and cash equivalents at end of year | 60,982 | 62,388 | 71,953 |
Proceeds from issue of subordinated liabilities | 1,061 | 338 | |
Proceeds from issue of other equity instruments | 14 | ||
Repayment of subordinated liabilities | (1,008) | (7,885) | (3,199) |
Change in stake of non-controlling interests | (8) | (41) | |
Subordinated Liabilities [Member] | Company [Member] | |||
Available-for-sale financial assets: | |||
Interest paid | (248) | ||
Subordinated Liabilities [Member] | Lloyds Bank [Member] | |||
Available-for-sale financial assets: | |||
Interest paid | (668) | ||
Subordinated Liabilities [Member] | Subsidiaries [member] | |||
Available-for-sale financial assets: | |||
Interest paid | (700) | ||
Subordinated Liabilities [Member] | Consolidation adjustments [Member] | |||
Available-for-sale financial assets: | |||
Interest paid | 341 | ||
Subordinated Liabilities [Member] | Group [Member] | |||
Available-for-sale financial assets: | |||
Interest paid | (1,275) | ||
Repayments to parent company [Member] | Lloyds Bank [Member] | |||
Available-for-sale financial assets: | |||
Interest paid | (244) | ||
Repayments to parent company [Member] | Consolidation adjustments [Member] | |||
Available-for-sale financial assets: | |||
Interest paid | 244 | ||
Repayments by subsidiaries [Member] | Company [Member] | |||
Available-for-sale financial assets: | |||
Capital repayments | 475 | 13,166 | |
Repayments by subsidiaries [Member] | Consolidation adjustments [Member] | |||
Available-for-sale financial assets: | |||
Capital repayments | (475) | (13,166) | |
Repayments to parent company [Member] | Lloyds Bank [Member] | |||
Available-for-sale financial assets: | |||
Capital repayments | (475) | ||
Interest paid | (496) | ||
Repayments to parent company [Member] | Consolidation adjustments [Member] | |||
Available-for-sale financial assets: | |||
Capital repayments | £ 475 | ||
Interest paid | 496 | ||
Subordinated Liabilities [Member] | Company [Member] | |||
Available-for-sale financial assets: | |||
Interest paid | (229) | (129) | |
Subordinated Liabilities [Member] | Lloyds Bank [Member] | |||
Available-for-sale financial assets: | |||
Interest paid | (1,516) | (1,755) | |
Subordinated Liabilities [Member] | Subsidiaries [member] | |||
Available-for-sale financial assets: | |||
Interest paid | (893) | (956) | |
Subordinated Liabilities [Member] | Consolidation adjustments [Member] | |||
Available-for-sale financial assets: | |||
Interest paid | 951 | 1,000 | |
Subordinated Liabilities [Member] | Group [Member] | |||
Available-for-sale financial assets: | |||
Interest paid | (1,687) | (1,840) | |
Repayments by Lloyds Bank [Member] | Company [Member] | |||
Available-for-sale financial assets: | |||
Capital repayments | 570 | ||
Repayments by Lloyds Bank [Member] | Lloyds Bank [Member] | |||
Available-for-sale financial assets: | |||
Capital repayments | (3,387) | ||
Repayments by Lloyds Bank [Member] | Subsidiaries [member] | |||
Available-for-sale financial assets: | |||
Capital repayments | (1,198) | ||
Repayments by Lloyds Bank [Member] | Consolidation adjustments [Member] | |||
Available-for-sale financial assets: | |||
Capital repayments | £ 4,585 | (570) | |
Repayments to the company [Member] | Lloyds Bank [Member] | |||
Available-for-sale financial assets: | |||
Capital repayments | (1,155) | ||
Interest paid | (763) | ||
Repayments to the company [Member] | Consolidation adjustments [Member] | |||
Available-for-sale financial assets: | |||
Capital repayments | 1,155 | ||
Interest paid | £ 763 |