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As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 7/31/19 Lloyds Banking Group plc 6-K 7/31/19 1:3.0M Blueprint/FA |
Document/Exhibit Description Pages Size 1: 6-K 2019 Half-Year Results - News Release Part 1 of 2 HTML 1.12M
Blueprint |
|
BASIS OF PRESENTATION
|
This
release covers the results of Lloyds Banking Group plc together
with its subsidiaries (the Group) for the six months ended
30 June 2019.
IFRS 16 and IAS 12 (further information
in note 1 on page 67): The Group adopted IFRS 16 Leases from
1 January 2019 and as permitted elected to apply the standard
retrospectively with the cumulative effect of initial application
being recognised at that date; comparative information has not been
restated. The Group has implemented the amendments to IAS 12 Income
Taxes with effect from 1 January 2019 and as a result tax relief on
distributions on other equity instruments, previously recognised in
equity, is now reported within tax expense. Comparatives have been
restated.
|
Statutory basis: Statutory information
is set out on pages 58 to 108. However, a number of factors have
had a significant effect on the comparability of the Group’s
financial position and results. Accordingly, the results are also
presented on an underlying basis.
|
Underlying basis: The statutory results
are adjusted for certain items which are listed below, to allow a
comparison of the Group’s underlying
performance.
- restructuring,
including severance related costs, the rationalisation of the
non-branch property portfolio, the establishment of the Schroders
strategic partnership, the integration of MBNA and Zurich’s
UK workplace pensions and savings business;
- volatility and
other items, which includes the effects of certain asset sales, the
volatility relating to the Group’s hedging arrangements and
that arising in the insurance businesses, insurance gross up, the
unwind of acquisition-related fair value adjustments and the
amortisation of purchased intangible assets;
|
Segment information: The segment results
have been restated to reflect the transfer of the Cardnet business
from Retail into Commercial Banking and certain equities business
from Commercial Banking into Central items. The underlying profit
and statutory results at Group level are unchanged as a result of
these restatements.
Unless
otherwise stated, income statement commentaries throughout this
document compare the six months ended 30 June 2019 to the six
months ended 30 June 2018, and the balance sheet analysis
compares the Group balance sheet as at 30 June 2019 to the
Group balance sheet as at 31 December 2018.
Alternative performance measures: The
Group uses a number of alternative performance measures, including
underlying profit, in the discussion of its business performance
and financial position. Further information on these measures is
set out on page 112.
|
|
|
|
Page
|
Results for the half-year
|
1
|
Income statement –
underlying basis
|
2
|
Key
balance sheet metrics
|
2
|
Quarterly information
|
3
|
Balance
sheet analysis
|
4
|
Group
Chief Executive’s statement
|
5
|
Summary of Group results
|
8
|
Underlying basis segmental analysis
|
15
|
|
|
Divisional results
|
|
Retail
|
17
|
Commercial
Banking
|
19
|
Insurance
and Wealth
|
21
|
Central
items
|
23
|
|
|
Other financial information
|
|
Reconciliation
between statutory and underlying basis results
|
24
|
Banking
net interest margin and average interest-earning
assets
|
25
|
Volatility arising
in insurance businesses
|
25
|
Tangible
net assets per share
|
26
|
Return
on tangible equity
|
26
|
|
|
Risk management
|
|
Principal risks and
uncertainties
|
27
|
Credit
risk portfolio
|
29
|
Funding
and liquidity management
|
44
|
Capital
management
|
49
|
|
|
Statutory information
|
|
Condensed consolidated
half-year financial statements
|
|
Consolidated
income statement
|
59
|
Consolidated
statement of comprehensive income
|
60
|
Consolidated
balance sheet
|
61
|
Consolidated
statement of changes in equity
|
63
|
Consolidated cash
flow statement
|
66
|
Notes to the consolidated financial statements
|
67
|
Statement
of directors’ responsibilities
|
109
|
Independent
review report to Lloyds Banking Group plc
|
110
|
|
|
Summary of alternative performance measures
|
112
|
Key
dates for the payment of the
dividends
|
112
|
Contacts
|
113
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Half-year
|
|
Half-year
|
|
|
|
Half-year
|
|
|
|
|
to 30 June
|
|
to 30 June
|
|
|
|
to 31 Dec
|
|
|
|
|
2019
|
|
2018
|
|
Change
|
|
2018
|
|
Change
|
|
|
£m
|
|
£m
|
|
%
|
|
£m
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
6,145
|
|
6,344
|
|
(3)
|
|
6,370
|
|
(4)
|
Other income
|
|
3,100
|
|
3,124
|
|
(1)
|
|
2,886
|
|
7
|
Operating lease depreciation
|
|
(473)
|
|
(497)
|
|
5
|
|
(459)
|
|
(3)
|
Vocalink gain on sale
|
|
50
|
|
–
|
|
|
|
–
|
|
|
Net income
|
|
8,822
|
|
8,971
|
|
(2)
|
|
8,797
|
|
–
|
Operating costs
|
|
(3,906)
|
|
(4,024)
|
|
3
|
|
(4,141)
|
|
6
|
Remediation
|
|
(143)
|
|
(257)
|
|
44
|
|
(343)
|
|
58
|
Total costs
|
|
(4,049)
|
|
(4,281)
|
|
5
|
|
(4,484)
|
|
10
|
Impairment
|
|
(579)
|
|
(456)
|
|
(27)
|
|
(481)
|
|
(20)
|
Underlying profit
|
|
4,194
|
|
4,234
|
|
(1)
|
|
3,832
|
|
9
|
Restructuring
|
|
(182)
|
|
(377)
|
|
52
|
|
(502)
|
|
64
|
Volatility and other items
|
|
(465)
|
|
(190)
|
|
|
|
(287)
|
|
(62)
|
Payment protection insurance provision
|
|
(650)
|
|
(550)
|
|
(18)
|
|
(200)
|
|
|
Statutory profit before tax
|
|
2,897
|
|
3,117
|
|
(7)
|
|
2,843
|
|
2
|
Tax expense1
|
|
(672)
|
|
(800)
|
|
16
|
|
(654)
|
|
(3)
|
Statutory profit after
tax1
|
|
2,225
|
|
2,317
|
|
(4)
|
|
2,189
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
|
|
2.7p
|
|
2.9p
|
|
(7)
|
|
2.6p
|
|
4
|
Interim dividend per share – ordinary
|
|
1.12p
|
|
1.07p
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Banking net interest margin
|
|
2.90%
|
|
2.93%
|
|
(3)bp
|
|
2.93%
|
|
(3)bp
|
Average interest-earning banking assets
|
|
£433bn
|
|
£436bn
|
|
(1)
|
|
£436bn
|
|
(1)
|
Cost:income ratio
|
|
45.9%
|
|
47.7%
|
|
(1.8)pp
|
|
51.0%
|
|
(5.1)pp
|
Asset quality ratio
|
|
0.26%
|
|
0.20%
|
|
6bp
|
|
0.22%
|
|
4bp
|
Underlying return on tangible equity
|
|
16.3%
|
|
16.3%
|
|
–
|
|
14.7%
|
|
1.6pp
|
Return on tangible equity
|
|
11.5%
|
|
12.1%
|
|
(0.6)pp
|
|
11.3%
|
|
0.2pp
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 30 June
|
|
At 30 June
|
|
Change
|
|
At 31 Dec
|
|
Change
|
|
|
2019
|
|
2018
|
|
%
|
|
2018
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Loans and advances to customers2
|
|
£441bn
|
|
£442bn
|
|
–
|
|
£444bn
|
|
(1)
|
Customer deposits3
|
|
£418bn
|
|
£418bn
|
|
–
|
|
£416bn
|
|
–
|
Loan to deposit ratio
|
|
106%
|
|
106%
|
|
–
|
|
107%
|
|
(1)pp
|
Capital build4
|
|
70bp
|
|
121bp
|
|
|
|
210bp
|
|
|
Pro forma CET1 ratio pre dividend accrual5
|
|
14.6%
|
|
15.1%
|
|
(0.5)pp
|
|
13.9%
|
|
0.7pp
|
Pro forma CET1 ratio5
|
|
14.0%
|
|
14.5%
|
|
(0.5)pp
|
|
13.9%
|
|
0.1pp
|
Pro forma transitional MREL ratio5
|
|
32.2%
|
|
29.7%
|
|
2.5pp
|
|
32.6%
|
|
(0.4)pp
|
Pro forma UK leverage ratio5
|
|
5.1%
|
|
5.3%
|
|
(0.2)pp
|
|
5.6%
|
|
(0.5)pp
|
Pro forma risk-weighted assets5
|
|
£207bn
|
|
£207bn
|
|
–
|
|
£206bn
|
|
–
|
Tangible net assets per share
|
|
53.0p
|
|
52.1p
|
|
0.9p
|
|
53.0p
|
|
–
|
|
|
1
|
Comparatives
restated to reflect amendments to IAS 12, see basis of
presentation.
|
2
|
Excludes
reverse repos of £54.1 billion (30 June 2018: £26.7
billion; 31 December 2018: £40.5 billion).
|
3
|
Excludes
repos of £4.1 billion (30 June 2018: £4.0 billion; 31
December 2018: £1.8 billion).
|
4
|
Capital
build is reported on a pro forma basis before ordinary dividends
and share buyback.
|
5
|
The
CET1, MREL and leverage ratios at 30 June 2019, 30 June 2018 and 31
December 2018 are reported on a pro forma basis, reflecting the
dividend paid up by the Insurance business in the subsequent
reporting period. The CET1 ratios at 31 December 2018 are reported
post share buyback and post dividend accrual. In addition the pro
forma ratios and pro forma risk-weighted assets at 30 June
2018 reflected the sale of the Irish mortgage
portfolio.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
|
ended
|
|
ended
|
|
ended
|
|
ended
|
|
ended
|
|
ended
|
|
|
30 June
|
|
31 Mar
|
|
31 Dec
|
|
30 Sept
|
|
30 June
|
|
31 Mar
|
|
|
2019
|
|
2019
|
|
2018
|
|
2018
|
|
2018
|
|
2018
|
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
3,062
|
|
3,083
|
|
3,170
|
|
3,200
|
|
3,173
|
|
3,171
|
Other income
|
|
1,594
|
|
1,506
|
|
1,400
|
|
1,486
|
|
1,713
|
|
1,411
|
Operating lease depreciation
|
|
(254)
|
|
(219)
|
|
(225)
|
|
(234)
|
|
(245)
|
|
(252)
|
Vocalink gain on sale
|
|
–
|
|
50
|
|
–
|
|
–
|
|
–
|
|
–
|
Net income
|
|
4,402
|
|
4,420
|
|
4,345
|
|
4,452
|
|
4,641
|
|
4,330
|
Operating costs
|
|
(1,949)
|
|
(1,957)
|
|
(2,151)
|
|
(1,990)
|
|
(2,016)
|
|
(2,008)
|
Remediation
|
|
(123)
|
|
(20)
|
|
(234)
|
|
(109)
|
|
(197)
|
|
(60)
|
Total costs
|
|
(2,072)
|
|
(1,977)
|
|
(2,385)
|
|
(2,099)
|
|
(2,213)
|
|
(2,068)
|
Impairment
|
|
(304)
|
|
(275)
|
|
(197)
|
|
(284)
|
|
(198)
|
|
(258)
|
Underlying profit
|
|
2,026
|
|
2,168
|
|
1,763
|
|
2,069
|
|
2,230
|
|
2,004
|
Restructuring
|
|
(56)
|
|
(126)
|
|
(267)
|
|
(235)
|
|
(239)
|
|
(138)
|
Volatility and other items
|
|
(126)
|
|
(339)
|
|
(270)
|
|
(17)
|
|
(16)
|
|
(174)
|
Payment protection insurance provision
|
|
(550)
|
|
(100)
|
|
(200)
|
|
–
|
|
(460)
|
|
(90)
|
Statutory profit before tax
|
|
1,294
|
|
1,603
|
|
1,026
|
|
1,817
|
|
1,515
|
|
1,602
|
Tax expense1
|
|
(269)
|
|
(403)
|
|
(260)
|
|
(394)
|
|
(369)
|
|
(431)
|
Statutory profit after
tax1
|
|
1,025
|
|
1,200
|
|
766
|
|
1,423
|
|
1,146
|
|
1,171
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Banking net interest margin
|
|
2.89%
|
|
2.91%
|
|
2.92%
|
|
2.93%
|
|
2.93%
|
|
2.93%
|
Average interest-earning banking assets
|
|
£433bn
|
|
£433bn
|
|
£436bn
|
|
£435bn
|
|
£436bn
|
|
£437bn
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost:income ratio
|
|
47.1%
|
|
44.7%
|
|
54.9%
|
|
47.1%
|
|
47.7%
|
|
47.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset quality ratio
|
|
0.27%
|
|
0.25%
|
|
0.18%
|
|
0.25%
|
|
0.18%
|
|
0.23%
|
Gross asset quality ratio
|
|
0.38%
|
|
0.30%
|
|
0.30%
|
|
0.30%
|
|
0.26%
|
|
0.27%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underlying return on tangible equity
|
|
15.6%
|
|
17.0%
|
|
13.6%
|
|
15.9%
|
|
17.3%
|
|
15.4%
|
Return on tangible equity
|
|
10.5%
|
|
12.5%
|
|
7.8%
|
|
14.8%
|
|
11.9%
|
|
12.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and advances to customers2
|
|
£441bn
|
|
£441bn
|
|
£444bn
|
|
£445bn
|
|
£442bn
|
|
£445bn
|
Customer deposits3
|
|
£418bn
|
|
£417bn
|
|
£416bn
|
|
£422bn
|
|
£418bn
|
|
£413bn
|
Loan to deposit ratio
|
|
106%
|
|
106%
|
|
107%
|
|
105%
|
|
106%
|
|
108%
|
Risk-weighted assets4
|
|
£207bn
|
|
£208bn
|
|
£206bn
|
|
£207bn
|
|
£207bn
|
|
£211bn
|
Tangible net assets per share
|
|
53.0p
|
|
53.4p
|
|
53.0p
|
|
51.3p
|
|
52.1p
|
|
52.3p
|
|
|
1
|
Comparatives
restated to reflect amendments to IAS 12, see basis of
presentation.
|
2
|
Excludes
reverse repos.
|
3
|
Excludes
repos.
|
4
|
Risk-weighted
assets at June 2018 are reported on a pro forma basis reflecting
the sale of the Irish mortgage portfolio.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 30 June
|
At 31 Mar
|
|
At 30 June
|
|
|
|
At 31 Dec
|
|
|
||||
|
|
2019
|
|
2019
|
|
Change
|
|
2018
|
|
Change
|
|
2018
|
|
Change
|
|
|
£bn
|
|
£bn
|
|
%
|
|
£bn
|
|
%
|
|
£bn
|
|
%
|
Loans and advances to customers
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Open mortgage book
|
|
264.9
|
|
264.1
|
|
–
|
|
267.1
|
|
(1)
|
|
266.6
|
|
(1)
|
Closed mortgage book
|
|
19.8
|
|
20.5
|
|
(3)
|
|
22.2
|
|
(11)
|
|
21.2
|
|
(7)
|
Credit cards
|
|
17.7
|
|
17.7
|
|
–
|
|
18.5
|
|
(4)
|
|
18.1
|
|
(2)
|
UK Retail unsecured loans
|
|
8.2
|
|
8.1
|
|
1
|
|
7.8
|
|
5
|
|
7.9
|
|
4
|
UK Motor Finance
|
|
15.5
|
|
15.3
|
|
1
|
|
13.9
|
|
12
|
|
14.6
|
|
6
|
Overdrafts
|
|
1.2
|
|
1.2
|
|
–
|
|
1.2
|
|
–
|
|
1.3
|
|
(8)
|
Retail other1
|
|
9.0
|
|
8.5
|
|
6
|
|
8.2
|
|
10
|
|
8.6
|
|
5
|
SME2
|
|
32.3
|
|
32.1
|
|
1
|
|
31.5
|
|
3
|
|
31.8
|
|
2
|
Mid Markets
|
|
30.6
|
|
30.6
|
|
–
|
|
30.1
|
|
2
|
|
31.7
|
|
(3)
|
Global Corporates and Financial Institutions
|
|
34.7
|
|
34.3
|
|
1
|
|
32.7
|
|
6
|
|
34.4
|
|
1
|
Commercial Banking other
|
|
4.3
|
|
4.6
|
|
(7)
|
|
4.9
|
|
(12)
|
|
4.3
|
|
–
|
Wealth
|
|
0.9
|
|
0.9
|
|
–
|
|
0.8
|
|
13
|
|
0.9
|
|
–
|
Central items
|
|
1.9
|
|
2.6
|
|
(27)
|
|
3.4
|
|
(44)
|
|
3.0
|
|
(37)
|
Loans and advances to
customers3
|
|
441.0
|
|
440.5
|
|
–
|
|
442.3
|
|
–
|
|
444.4
|
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Customer deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail current accounts
|
|
76.0
|
|
75.2
|
|
1
|
|
73.1
|
|
4
|
|
73.7
|
|
3
|
Commercial current accounts2,4
|
|
34.0
|
|
33.9
|
|
–
|
|
33.7
|
|
1
|
|
34.9
|
|
(3)
|
Retail relationship savings accounts
|
|
144.4
|
|
144.7
|
|
–
|
|
147.4
|
|
(2)
|
|
145.9
|
|
(1)
|
Retail tactical savings accounts
|
|
15.3
|
|
15.6
|
|
(2)
|
|
18.4
|
|
(17)
|
|
16.8
|
|
(9)
|
Commercial deposits2,
5
|
|
133.2
|
|
133.0
|
|
–
|
|
130.4
|
|
2
|
|
130.1
|
|
2
|
Wealth
|
|
13.8
|
|
13.9
|
|
(1)
|
|
13.6
|
|
1
|
|
14.1
|
|
(2)
|
Central items
|
|
0.9
|
|
0.7
|
|
29
|
|
1.0
|
|
(10)
|
|
0.8
|
|
13
|
Total customer
deposits6
|
|
417.6
|
|
417.0
|
|
–
|
|
417.6
|
|
–
|
|
416.3
|
|
–
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets7
|
|
822.2
|
|
818.3
|
|
–
|
|
829.8
|
|
(1)
|
|
797.6
|
|
3
|
Total liabilities7
|
|
773.2
|
|
767.8
|
|
1
|
|
781.2
|
|
(1)
|
|
747.4
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders’ equity
|
|
43.4
|
|
43.8
|
|
(1)
|
|
42.9
|
|
1
|
|
43.4
|
|
–
|
Other equity instruments
|
|
5.4
|
|
6.5
|
|
(17)
|
|
5.4
|
|
–
|
|
6.5
|
|
(17)
|
Non-controlling interests
|
|
0.2
|
|
0.2
|
|
–
|
|
0.3
|
|
(33)
|
|
0.3
|
|
(33)
|
Total equity
|
|
49.0
|
|
50.5
|
|
(3)
|
|
48.6
|
|
1
|
|
50.2
|
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ordinary shares in issue,
excluding own shares
|
|
70,740m
|
|
71,165m
|
|
(1)
|
|
71,944m
|
|
(2)
|
|
71,149m
|
|
(1)
|
|
|
1
|
Primarily
includes Europe.
|
2
|
Includes
Retail Business Banking.
|
3
|
Excludes
reverse repos.
|
4
|
Primarily
non interest-bearing Commercial Banking current
accounts.
|
5
|
Primarily
Commercial Banking interest-bearing accounts.
|
6
|
Excludes
repos.
|
7
|
The
adoption of IFRS 16 on 1 January 2019 resulted in the recognition
of a right-of-use asset of £1.7 billion and lease liabilities
of £1.8 billion.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Half-year
|
|
Half-year
|
|
|
|
Half-year
|
|
|
|
|
to 30 June
|
|
to 30 June
|
|
|
|
to 31
Dec
|
|
|
|
|
2019
|
|
2018
|
|
Change
|
|
2018
|
|
Change
|
|
|
£m
|
|
£m
|
|
%
|
|
£m
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
6,145
|
|
6,344
|
|
(3)
|
|
6,370
|
|
(4)
|
Other income
|
|
3,100
|
|
3,124
|
|
(1)
|
|
2,886
|
|
7
|
Operating lease depreciation1
|
|
(473)
|
|
(497)
|
|
5
|
|
(459)
|
|
(3)
|
Vocalink gain on sale
|
|
50
|
|
–
|
|
|
|
–
|
|
|
Net income
|
|
8,822
|
|
8,971
|
|
(2)
|
|
8,797
|
|
–
|
|
|
|
|
|
|
|
|
|
|
|
Banking net interest margin
|
|
2.90%
|
|
2.93%
|
|
(3)bp
|
|
2.93%
|
|
(3)bp
|
Average interest-earning banking assets
|
|
£433.3bn
|
|
£436.4bn
|
|
(1)
|
|
£435.5bn
|
|
(1)
|
1
|
Net of
profits on disposal of operating lease assets of £14 million
(half-year to 30 June 2018: £29 million; half-year to 31
December 2018: £31 million).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Half-year
|
|
Half-year
|
|
|
|
Half-year
|
|
|
|
|
to 30 June
|
|
to 30 June
|
|
|
|
to 31 Dec
|
|
|
|
|
2019
|
|
2018
|
|
Change
|
|
2018
|
|
Change
|
|
|
£m
|
|
£m
|
|
%
|
|
£m
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs
|
|
3,906
|
|
4,024
|
|
3
|
|
4,141
|
|
6
|
Remediation
|
|
143
|
|
257
|
|
44
|
|
343
|
|
58
|
Total costs
|
|
4,049
|
|
4,281
|
|
5
|
|
4,484
|
|
10
|
|
|
|
|
|
|
|
|
|
|
|
Business as usual costs1
|
|
2,677
|
|
2,832
|
|
5
|
|
3,004
|
|
11
|
|
|
|
|
|
|
|
|
|
|
|
Cost:income ratio
|
|
45.9%
|
|
47.7%
|
|
(1.8)pp
|
|
51.0%
|
|
(5.1)pp
|
|
|
1
|
Business
as usual costs in the half-year to 30 June 2018 and half-year to 31
December 2018 are adjusted to reflect the impact of applying IFRS
16. Excluding the impact of IFRS 16 business as usual costs in the
half-year to 2018 were £2,942 million and
£3,106 million in the half-year to 31 December
2018.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Half-year
|
|
Half-year
|
|
|
|
Half-year
|
|
|
|
|
to 30 June
|
|
to 30 June
|
|
|
|
to 31 Dec
|
|
|
|
|
2019
|
|
2018
|
|
Change
|
|
2018
|
|
Change
|
|
|
£m
|
|
£m
|
|
%
|
|
£m
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Impairment charge
|
|
579
|
|
456
|
|
(27)
|
|
481
|
|
(20)
|
Asset quality ratio
|
|
0.26%
|
|
0.20%
|
|
6bp
|
|
0.22%
|
|
4bp
|
Gross asset quality ratio
|
|
0.34%
|
|
0.27%
|
|
7bp
|
|
0.30%
|
|
4bp
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 30 June
|
|
At 30 June
|
|
|
|
At 31 Dec
|
|
|
|
|
20191
|
|
20181
|
|
|
|
20181
|
|
|
|
|
%
|
|
%
|
|
Change
|
|
%
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
Stage 2 loans and advances to customers as % of total
|
|
8.1
|
|
9.8
|
|
(1.7)pp
|
|
7.8
|
|
0.3pp
|
Stage 2 ECL2
allowances as % of Stage 2 drawn
balances
|
|
3.6
|
|
3.6
|
|
–
|
|
4.1
|
|
(0.5)pp
|
|
|
|
|
|
|
|
|
|
|
|
Stage 3 loans and advances to customers as % of total
|
|
1.9
|
|
1.8
|
|
0.1pp
|
|
1.9
|
|
–
|
Stage 3 ECL2
allowances as % of Stage 3 drawn
balances
|
|
23.0
|
|
25.2
|
|
(2.2)pp
|
|
24.3
|
|
(1.3)pp
|
|
|
|
|
|
|
|
|
|
|
|
Total ECL2
allowances as % of drawn
balances
|
|
0.9
|
|
0.9
|
|
–
|
|
0.9
|
|
–
|
|
|
1
|
Underlying
basis.
|
2
|
Expected
credit losses.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Half-year
|
|
Half-year
|
|
|
|
Half-year
|
|
|
|
|
to 30 June
|
|
to 30 June
|
|
|
|
to
31 Dec
|
|
|
|
|
2019
|
|
2018
|
|
Change
|
|
2018
|
|
Change
|
|
|
£m
|
|
£m
|
|
%
|
|
£m
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Underlying profit
|
|
4,194
|
|
4,234
|
|
(1)
|
|
3,832
|
|
9
|
Restructuring
|
|
(182)
|
|
(377)
|
|
52
|
|
(502)
|
|
64
|
Volatility and other items
|
|
|
|
|
|
|
|
|
|
|
Market
volatility and asset sales
|
|
(296)
|
|
34
|
|
|
|
(84)
|
|
|
Amortisation
of purchased intangibles
|
|
(34)
|
|
(53)
|
|
36
|
|
(55)
|
|
38
|
Fair
value unwind and other
|
|
(135)
|
|
(171)
|
|
21
|
|
(148)
|
|
9
|
|
|
(465)
|
|
(190)
|
|
|
|
(287)
|
|
(62)
|
Payment protection insurance provision
|
|
(650)
|
|
(550)
|
|
(18)
|
|
(200)
|
|
|
Statutory profit before tax
|
|
2,897
|
|
3,117
|
|
(7)
|
|
2,843
|
|
2
|
Tax expense1
|
|
(672)
|
|
(800)
|
|
16
|
|
(654)
|
|
(3)
|
Statutory profit after
tax1
|
|
2,225
|
|
2,317
|
|
(4)
|
|
2,189
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
|
|
2.7p
|
|
2.9p
|
|
(7)
|
|
2.6p
|
|
4
|
Return on tangible equity
|
|
11.5%
|
|
12.1%
|
|
(0.6)pp
|
|
11.3%
|
|
0.2pp
|
|
|
1
|
Comparatives
restated to reflect amendments to IAS 12, see basis of
presentation.
|
Further
information on the reconciliation of underlying to statutory
results is included on page 24.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 30 June
|
|
At 31 Mar
|
|
Change
|
|
At 30 June
|
|
Change
|
|
At 31 Dec
|
|
Change
|
|
|
2019
|
|
2019
|
|
%
|
|
2018
|
|
%
|
|
2018
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and advances to customers1
|
|
£441bn
|
|
£441bn
|
|
–
|
|
£442bn
|
|
–
|
|
£444bn
|
|
(1)
|
Customer deposits2
|
|
£418bn
|
|
£417bn
|
|
–
|
|
£418bn
|
|
–
|
|
£416bn
|
|
–
|
Loan to deposit ratio
|
|
106%
|
|
106%
|
|
–
|
|
106%
|
|
–
|
|
107%
|
|
(1)pp
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale funding
|
|
£131bn
|
|
£125bn
|
|
5
|
|
£122bn
|
|
7
|
|
£123bn
|
|
6
|
Wholesale funding <1 year maturity
|
|
£44bn
|
|
£40bn
|
|
11
|
|
£38bn
|
|
17
|
|
£33bn
|
|
33
|
Of which money-market funding <1 year
maturity3
|
|
£25bn
|
|
£24bn
|
|
1
|
|
£25bn
|
|
–
|
|
£21bn
|
|
18
|
Liquidity coverage ratio - eligible assets
|
|
£132bn
|
|
£135bn
|
|
(2)
|
|
£129bn
|
|
2
|
|
£129bn
|
|
2
|
Liquidity coverage ratio4
|
|
130%
|
|
129%
|
|
1pp
|
|
125%
|
|
5pp
|
|
128%
|
|
2pp
|
|
|
1
|
Excludes
reverse repos of £54.1 billion (30 June 2018: £26.7
billion; 31 December 2018: £40.5 billion).
|
2
|
Excludes
repos of £4.1 billion (30 June 2018: £4.0 billion; 31
December 2018: £1.8 billion).
|
3
|
Excludes
balances relating to margins of £5.1 billion (30 June
2018: 4.0 billion; 31 December 2018: £3.8 billion)
and settlement accounts of £2.0 billion (30 June 2018:
£1.7 billion; 31 December 2018:
£1.2 billion).
|
4
|
The
Liquidity coverage ratio is calculated as a simple average of month
end observations over the 12 months preceding the end of each
quarter.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 30 June
|
|
At 30 June
|
|
Change
|
|
At 31 Dec
|
|
Change
|
|
|
2019
|
|
2018
|
|
%
|
|
2018
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Pro forma CET1 ratio pre dividend accrual1
|
|
14.6%
|
|
15.1%
|
|
(0.5)pp
|
|
13.9%
|
|
0.7pp
|
Pro forma CET1 ratio1
|
|
14.0%
|
|
14.5%
|
|
(0.5)pp
|
|
13.9%
|
|
0.1pp
|
Pro forma transitional total capital ratio1
|
|
21.7%
|
|
22.1%
|
|
(0.4)pp
|
|
23.1%
|
|
(1.4)pp
|
Pro forma transitional MREL ratio1
|
|
32.2%
|
|
29.7%
|
|
2.5pp
|
|
32.6%
|
|
(0.4)pp
|
Pro forma UK leverage ratio1
|
|
5.1%
|
|
5.3%
|
|
(0.2)pp
|
|
5.6%
|
|
(0.5)pp
|
Pro forma risk-weighted assets1
|
|
£207bn
|
|
£207bn
|
|
–
|
|
£206bn
|
|
–
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity
|
|
£43bn
|
|
£43bn
|
|
1
|
|
£43bn
|
|
–
|
Tangible net assets per share
|
|
53.0p
|
|
52.1p
|
|
0.9p
|
|
53.0p
|
|
–
|
|
|
1
|
The
CET1, total, MREL and leverage ratios at 30 June 2019, 30 June 2018
and 31 December 2018 are reported on a pro forma basis, reflecting
the dividend paid up by the Insurance business in subsequent
reporting period. The CET1 ratios at 31 December 2018 are reported
post share buyback and post dividend accrual. In addition the pro
forma ratios and pro forma risk-weighted assets at 30 June 2018
reflected the sale of the Irish mortgage portfolio.
|
|
|
|
|
|
|
|
|
|
|
|
Half-year to 30 June 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
|
Insurance
|
|
Central
|
|
|
|
|
Retail
|
|
Banking
|
|
and Wealth
|
|
items
|
|
Group
|
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
4,366
|
|
1,460
|
|
58
|
|
261
|
|
6,145
|
Other income
|
|
1,007
|
|
733
|
|
1,183
|
|
177
|
|
3,100
|
Operating lease depreciation
|
|
(461)
|
|
(12)
|
|
–
|
|
–
|
|
(473)
|
Vocalink gain on sale
|
|
–
|
|
–
|
|
–
|
|
50
|
|
50
|
Net income
|
|
4,912
|
|
2,181
|
|
1,241
|
|
488
|
|
8,822
|
Operating costs
|
|
(2,325)
|
|
(1,034)
|
|
(539)
|
|
(8)
|
|
(3,906)
|
Remediation
|
|
(48)
|
|
(90)
|
|
(25)
|
|
20
|
|
(143)
|
Total costs
|
|
(2,373)
|
|
(1,124)
|
|
(564)
|
|
12
|
|
(4,049)
|
Impairment
|
|
(556)
|
|
(65)
|
|
–
|
|
42
|
|
(579)
|
Underlying profit
|
|
1,983
|
|
992
|
|
677
|
|
542
|
|
4,194
|
|
|
|
|
|
|
|
|
|
|
|
Banking net interest margin
|
|
2.64%
|
|
3.15%
|
|
|
|
|
|
2.90%
|
Average interest-earning banking assets
|
|
£339.8bn
|
|
£92.6bn
|
|
£0.9bn
|
|
–
|
|
£433.3bn
|
Asset quality ratio
|
|
0.33%
|
|
0.13%
|
|
|
|
|
|
0.26%
|
Return on risk-weighted assets
|
|
4.23%
|
|
2.35%
|
|
|
|
|
|
4.09%
|
Loans and advances to customers1
|
|
£338.1bn
|
|
£100.1bn
|
|
£0.9bn
|
|
£1.9bn
|
|
£441.0bn
|
Customer deposits2
|
|
£252.4bn
|
|
£150.6bn
|
|
£13.8bn
|
|
£0.8bn
|
|
£417.6bn
|
Risk-weighted assets
|
|
£95.8bn
|
|
£83.0bn
|
|
£1.3bn
|
|
£26.4bn
|
|
£206.5bn
|
|
|
|
|
|
|
|
|
|
|
|
Half-year to 30 June 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
|
Insurance
|
|
Central
|
|
|
|
|
Retail3
|
|
Banking3
|
|
and Wealth
|
|
items3
|
|
Group
|
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
4,511
|
|
1,501
|
|
60
|
|
272
|
|
6,344
|
Other income
|
|
1,052
|
|
842
|
|
979
|
|
251
|
|
3,124
|
Operating lease depreciation
|
|
(477)
|
|
(20)
|
|
–
|
|
–
|
|
(497)
|
Net income
|
|
5,086
|
|
2,323
|
|
1,039
|
|
523
|
|
8,971
|
Operating costs
|
|
(2,401)
|
|
(1,073)
|
|
(534)
|
|
(16)
|
|
(4,024)
|
Remediation
|
|
(91)
|
|
(75)
|
|
(25)
|
|
(66)
|
|
(257)
|
Total costs
|
|
(2,492)
|
|
(1,148)
|
|
(559)
|
|
(82)
|
|
(4,281)
|
Impairment
|
|
(460)
|
|
6
|
|
–
|
|
(2)
|
|
(456)
|
Underlying profit
|
|
2,134
|
|
1,181
|
|
480
|
|
439
|
|
4,234
|
|
|
|
|
|
|
|
|
|
|
|
Banking net interest margin
|
|
2.69%
|
|
3.32%
|
|
|
|
|
|
2.93%
|
Average interest-earning banking assets
|
|
£342.0bn
|
|
£90.3bn
|
|
£0.8bn
|
|
£3.3bn
|
|
£436.4bn
|
Asset quality ratio
|
|
0.27%
|
|
(0.03)%
|
|
|
|
|
|
0.20%
|
Return on risk-weighted assets
|
|
4.71%
|
|
2.74%
|
|
|
|
|
|
4.05%
|
Loans and advances to customers1
|
|
£340.8bn
|
|
£97.3bn
|
|
£0.8bn
|
|
£3.4bn
|
|
£442.3bn
|
Customer deposits2
|
|
£254.6bn
|
|
£148.5bn
|
|
£13.6bn
|
|
£0.9bn
|
|
£417.6bn
|
Risk-weighted assets
|
|
£92.4bn
|
|
£86.7bn
|
|
£1.3bn
|
|
£26.5bn
|
|
£206.9bn
|
|
|
||
1
|
Excludes
reverse repos.
|
|
|
2
|
Excludes
repos.
|
|
|
3
|
Prior
period segmental comparatives restated. See basis of
presentation.
|
|
|
|
|
|
|
|
|
|
|
|
|
Half-year to 31 December 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
|
Insurance
|
|
Central
|
|
|
|
|
Retail1
|
|
Banking1
|
|
and Wealth
|
|
items1
|
|
Group
|
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
4,549
|
|
1,512
|
|
63
|
|
246
|
|
6,370
|
Other income
|
|
1,045
|
|
828
|
|
886
|
|
127
|
|
2,886
|
Operating lease depreciation
|
|
(444)
|
|
(15)
|
|
–
|
|
–
|
|
(459)
|
Net income
|
|
5,150
|
|
2,325
|
|
949
|
|
373
|
|
8,797
|
Operating costs
|
|
(2,496)
|
|
(1,118)
|
|
(487)
|
|
(40)
|
|
(4,141)
|
Remediation
|
|
(176)
|
|
(128)
|
|
(14)
|
|
(25)
|
|
(343)
|
Total costs
|
|
(2,672)
|
|
(1,246)
|
|
(501)
|
|
(65)
|
|
(4,484)
|
Impairment
|
|
(401)
|
|
(77)
|
|
(1)
|
|
(2)
|
|
(481)
|
Underlying profit
|
|
2,077
|
|
1,002
|
|
447
|
|
306
|
|
3,832
|
|
|
|
|
|
|
|
|
|
|
|
Banking net interest margin
|
|
2.66%
|
|
3.22%
|
|
|
|
|
|
2.93%
|
Average interest-earning banking assets
|
|
£342.6bn
|
|
£92.1bn
|
|
£0.8bn
|
|
–
|
|
£435.5bn
|
Asset quality ratio
|
|
0.23%
|
|
0.16%
|
|
|
|
|
|
0.22%
|
Return on risk-weighted assets
|
|
4.43%
|
|
2.30%
|
|
|
|
|
|
3.65%
|
Loans and advances to customers2
|
|
£340.1bn
|
|
£100.4bn
|
|
£0.9bn
|
|
£3.0bn
|
|
£444.4bn
|
Customer deposits3
|
|
£252.8bn
|
|
£148.6bn
|
|
£14.1bn
|
|
£0.8bn
|
|
£416.3bn
|
Risk-weighted assets
|
|
£93.5bn
|
|
£86.5bn
|
|
£1.2bn
|
|
£25.2bn
|
|
£206.4bn
|
|
|
|
1
|
Prior
period segmental comparatives restated. See basis of
presentation.
|
|
2
|
Excludes
reverse repos.
|
|
3
|
Excludes
repos.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Half-year
|
|
Half-year
|
|
|
|
Half-year
|
|
|
|
|
to 30 June
|
|
to 30 June
|
|
|
|
to 31 Dec
|
|
|
|
|
2019
|
|
20181
|
|
Change
|
|
20181
|
|
Change
|
|
|
£m
|
|
£m
|
|
%
|
|
£m
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
4,366
|
|
4,511
|
|
(3)
|
|
4,549
|
|
(4)
|
Other income
|
|
1,007
|
|
1,052
|
|
(4)
|
|
1,045
|
|
(4)
|
Operating lease depreciation
|
|
(461)
|
|
(477)
|
|
3
|
|
(444)
|
|
(4)
|
Net income
|
|
4,912
|
|
5,086
|
|
(3)
|
|
5,150
|
|
(5)
|
Operating costs
|
|
(2,325)
|
|
(2,401)
|
|
3
|
|
(2,496)
|
|
7
|
Remediation
|
|
(48)
|
|
(91)
|
|
47
|
|
(176)
|
|
73
|
Total costs
|
|
(2,373)
|
|
(2,492)
|
|
5
|
|
(2,672)
|
|
11
|
Impairment
|
|
(556)
|
|
(460)
|
|
(21)
|
|
(401)
|
|
(39)
|
Underlying profit
|
|
1,983
|
|
2,134
|
|
(7)
|
|
2,077
|
|
(5)
|
|
|
|
|
|
|
|
|
|
|
|
Banking net interest margin
|
|
2.64%
|
|
2.69%
|
|
(5)bp
|
|
2.66%
|
|
(2)bp
|
Average interest-earning banking assets
|
|
£339.8bn
|
|
£342.0bn
|
|
(1)
|
|
£342.6bn
|
|
(1)
|
Asset quality ratio
|
|
0.33%
|
|
0.27%
|
|
6bp
|
|
0.23%
|
|
10bp
|
Return on risk-weighted assets
|
|
4.23%
|
|
4.71%
|
|
(48)bp
|
|
4.43%
|
|
(20)bp
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 30 June
|
|
At 30 June
|
|
|
|
At 31 Dec
|
|
|
|
|
2019
|
|
2018
|
|
Change
|
|
2018
|
|
Change
|
|
|
£bn
|
|
£bn
|
|
%
|
|
£bn
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Open mortgage book
|
|
264.9
|
|
267.1
|
|
(1)
|
|
266.6
|
|
(1)
|
Closed mortgage book
|
|
19.8
|
|
22.2
|
|
(11)
|
|
21.2
|
|
(7)
|
Credit cards
|
|
17.7
|
|
18.5
|
|
(4)
|
|
18.1
|
|
(2)
|
UK unsecured loans
|
|
8.2
|
|
7.8
|
|
5
|
|
7.9
|
|
4
|
UK Motor Finance
|
|
15.5
|
|
13.9
|
|
12
|
|
14.6
|
|
6
|
Business Banking
|
|
1.8
|
|
1.9
|
|
(5)
|
|
1.8
|
|
–
|
Overdrafts
|
|
1.2
|
|
1.2
|
|
–
|
|
1.3
|
|
(8)
|
Other2
|
|
9.0
|
|
8.2
|
|
10
|
|
8.6
|
|
5
|
Loans and advances to customers
|
|
338.1
|
|
340.8
|
|
(1)
|
|
340.1
|
|
(1)
|
Operating lease assets
|
|
4.5
|
|
4.7
|
|
(4)
|
|
4.7
|
|
(4)
|
Total customer assets
|
|
342.6
|
|
345.5
|
|
(1)
|
|
344.8
|
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
Relationship balances3
|
|
236.3
|
|
235.3
|
|
–
|
|
235.3
|
|
–
|
Tactical balance3
|
|
16.1
|
|
19.3
|
|
(17)
|
|
17.5
|
|
(8)
|
Customer deposits
|
|
252.4
|
|
254.6
|
|
(1)
|
|
252.8
|
|
–
|
|
|
|
|
|
|
|
|
|
|
|
Risk-weighted assets
|
|
95.8
|
|
92.4
|
|
4
|
|
93.5
|
|
2
|
1
|
Prior
periods restated. See basis of presentation.
|
2
|
Includes
Europe and run-off.
|
3
|
Prior
period restated to show European deposits as tactical
balances.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Half-year
|
|
Half-year
|
|
|
|
Half-year
|
|
|
|
|
to 30 June
|
|
to 30 June
|
|
|
|
to 31 Dec
|
|
|
|
|
2019
|
|
20181
|
|
Change
|
|
20181
|
|
Change
|
|
|
£m
|
|
£m
|
|
%
|
|
£m
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
1,460
|
|
1,501
|
|
(3)
|
|
1,512
|
|
(3)
|
Other income
|
|
733
|
|
842
|
|
(13)
|
|
828
|
|
(11)
|
Operating lease depreciation
|
|
(12)
|
|
(20)
|
|
40
|
|
(15)
|
|
20
|
Net income
|
|
2,181
|
|
2,323
|
|
(6)
|
|
2,325
|
|
(6)
|
Operating costs
|
|
(1,034)
|
|
(1,073)
|
|
4
|
|
(1,118)
|
|
8
|
Remediation
|
|
(90)
|
|
(75)
|
|
(20)
|
|
(128)
|
|
30
|
Total costs
|
|
(1,124)
|
|
(1,148)
|
|
2
|
|
(1,246)
|
|
10
|
Impairment
|
|
(65)
|
|
6
|
|
|
|
(77)
|
|
16
|
Underlying profit
|
|
992
|
|
1,181
|
|
(16)
|
|
1,002
|
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
Banking net interest margin
|
|
3.15%
|
|
3.32%
|
|
(17)bp
|
|
3.22%
|
|
(7)bp
|
Average interest-earning banking assets
|
|
£92.6bn
|
|
£90.3bn
|
|
3
|
|
£92.1bn
|
|
1
|
Asset quality ratio
|
|
0.13%
|
|
(0.03)%
|
|
16bp
|
|
0.16%
|
|
(3)bp
|
Return on risk-weighted assets
|
|
2.35%
|
|
2.74%
|
|
(39)bp
|
|
2.30%
|
|
5bp
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 30 June
|
|
At 30 June
|
|
|
|
At 31 Dec
|
|
|
|
|
2019
|
|
2018
|
|
Change
|
|
2018
|
|
Change
|
|
|
£bn
|
|
£bn
|
|
%
|
|
£bn
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
SME
|
|
30.5
|
|
29.6
|
|
3
|
|
30.0
|
|
2
|
Mid Markets
|
|
30.6
|
|
30.1
|
|
2
|
|
31.7
|
|
(3)
|
Global Corporates and Financial Institutions
|
|
34.7
|
|
32.7
|
|
6
|
|
34.4
|
|
1
|
Other
|
|
4.3
|
|
4.9
|
|
(12)
|
|
4.3
|
|
–
|
Loans and advances to customers
|
|
100.1
|
|
97.3
|
|
3
|
|
100.4
|
|
–
|
|
|
|
|
|
|
|
|
|
|
|
SME including Retail Business Banking
|
|
32.3
|
|
31.5
|
|
3
|
|
31.8
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
Customer deposits
|
|
150.6
|
|
148.5
|
|
1
|
|
148.6
|
|
1
|
Risk-weighted assets
|
|
83.0
|
|
86.7
|
|
(4)
|
|
86.5
|
|
(4)
|
1
|
Prior
periods restated. See basis of presentation.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Half-year
|
|
Half-year
|
|
|
|
Half-year
|
|
|
|
|
to 30 June
|
|
to 30 June
|
|
|
|
to 31 Dec
|
|
|
|
|
2019
|
|
2018
|
|
Change
|
|
2018
|
|
Change
|
|
|
£m
|
|
£m
|
|
%
|
|
£m
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
58
|
|
60
|
|
(3)
|
|
63
|
|
(8)
|
Other income
|
|
1,183
|
|
979
|
|
21
|
|
886
|
|
34
|
Net income
|
|
1,241
|
|
1,039
|
|
19
|
|
949
|
|
31
|
Operating costs
|
|
(539)
|
|
(534)
|
|
(1)
|
|
(487)
|
|
(11)
|
Remediation
|
|
(25)
|
|
(25)
|
|
–
|
|
(14)
|
|
(79)
|
Total costs
|
|
(564)
|
|
(559)
|
|
(1)
|
|
(501)
|
|
(13)
|
Impairment
|
|
–
|
|
–
|
|
|
|
(1)
|
|
|
Underlying profit
|
|
677
|
|
480
|
|
41
|
|
447
|
|
51
|
|
|
|
|
|
|
|
|
|
|
|
Life and pensions sales (PVNBP)1
|
|
8,568
|
|
7,483
|
|
14
|
|
6,901
|
|
24
|
General insurance underwritten new GWP2
|
|
64
|
|
48
|
|
33
|
|
59
|
|
8
|
General insurance underwritten total GWP2
|
|
335
|
|
342
|
|
(2)
|
|
348
|
|
(4)
|
General insurance combined ratio
|
|
80%
|
|
103%
|
|
(23)pp
|
|
89%
|
|
(9)pp
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 30 June
|
|
At 30 June
|
|
|
|
At 31 Dec
|
|
|
|
|
2019
|
|
2018
|
|
Change
|
|
2018
|
|
Change
|
|
|
£bn
|
|
£bn
|
|
%
|
|
£bn
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Insurance Solvency II ratio3
|
|
149%
|
|
153%
|
|
(4)pp
|
|
165%
|
|
(16)pp
|
UK Wealth Loans and advances to customers
|
|
0.9
|
|
0.8
|
|
13
|
|
0.9
|
|
–
|
UK Wealth Customer deposits
|
|
13.8
|
|
13.6
|
|
1
|
|
14.1
|
|
(2)
|
UK Wealth Risk-weighted assets
|
|
1.3
|
|
1.3
|
|
–
|
|
1.2
|
|
8
|
Total customer assets under administration
|
|
155.0
|
|
151.0
|
|
3
|
|
141.3
|
|
10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Half-year to 30 June 2019
|
|
Half-year to 30 June 2018
|
|
Half-year
|
||||||||
|
|
New
|
|
Existing
|
|
|
|
New
|
|
Existing
|
|
|
|
to 31 Dec
|
|
|
business
|
|
business
|
|
Total
|
|
business
|
|
business
|
|
Total
|
|
2018
|
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Workplace, planning and retirement
|
|
245
|
|
56
|
|
301
|
|
165
|
|
75
|
|
240
|
|
246
|
Individual and bulk annuities
|
|
78
|
|
34
|
|
112
|
|
88
|
|
45
|
|
133
|
|
111
|
Protection
|
|
11
|
|
12
|
|
23
|
|
8
|
|
11
|
|
19
|
|
23
|
Longstanding LP&I
|
|
6
|
|
191
|
|
197
|
|
7
|
|
208
|
|
215
|
|
212
|
|
|
340
|
|
293
|
|
633
|
|
268
|
|
339
|
|
607
|
|
592
|
Life and pensions experience
and other items
|
|
|
|
|
|
248
|
|
|
|
|
|
140
|
|
3
|
General insurance
|
|
|
|
|
|
179
|
|
|
|
|
|
103
|
|
169
|
|
|
|
|
|
|
1,060
|
|
|
|
|
|
850
|
|
764
|
Wealth
|
|
|
|
|
|
181
|
|
|
|
|
|
189
|
|
185
|
Net income
|
|
|
|
|
|
1,241
|
|
|
|
|
|
1,039
|
|
949
|
|
|
1
|
Present
value of new business premiums. Further information on page
112.
|
2
|
Gross
written premiums.
|
3
|
Equivalent
regulatory view of ratio (including With Profits funds) at 30 June
2019 was 141 per cent (30 June 2018: 148 per cent;
31 December 2018: 156 per cent).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Half-year
|
|
Half-year
|
|
|
|
Half-year
|
|
|
|
|
to 30 June
|
|
to 30 June
|
|
|
|
to 31 Dec
|
|
|
|
|
2019
|
|
20181
|
|
Change
|
|
20181
|
|
Change
|
|
|
£m
|
|
£m
|
|
%
|
|
£m
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
488
|
|
523
|
|
(7)
|
|
373
|
|
31
|
Operating costs
|
|
(8)
|
|
(16)
|
|
50
|
|
(40)
|
|
80
|
Remediation
|
|
20
|
|
(66)
|
|
|
|
(25)
|
|
|
Total costs
|
|
12
|
|
(82)
|
|
|
|
(65)
|
|
|
Impairment
|
|
42
|
|
(2)
|
|
|
|
(2)
|
|
|
Underlying profit
|
|
542
|
|
439
|
|
23
|
|
306
|
|
77
|
|
|
1
|
Prior
periods restated. See basis of presentation.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Removal of:
|
|
|||||
|
|
|
|
Volatility
|
|
|
|
|
|
|
|
|
Statutory
|
|
and other
|
|
Insurance
|
|
|
|
Underlying
|
|
|
basis
|
|
items1,2,3
|
|
gross up4
|
|
PPI
|
|
basis
|
Half-year to 30 June 2019
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
4,639
|
|
203
|
|
1,303
|
|
–
|
|
6,145
|
Other income, net of insurance claims
|
|
4,492
|
|
76
|
|
(1,418)
|
|
–
|
|
3,150
|
Operating lease depreciation
|
|
|
|
(473)
|
|
–
|
|
–
|
|
(473)
|
Net income
|
|
9,131
|
|
(194)
|
|
(115)
|
|
–
|
|
8,822
|
Operating expenses5
|
|
(5,655)
|
|
841
|
|
115
|
|
650
|
|
(4,049)
|
Impairment
|
|
(579)
|
|
–
|
|
–
|
|
–
|
|
(579)
|
Profit before tax
|
|
2,897
|
|
647
|
|
–
|
|
650
|
|
4,194
|
|
|
|
|
|
|
|
|
|
|
|
Half-year to 30 June 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
6,007
|
|
93
|
|
244
|
|
–
|
|
6,344
|
Other income, net of insurance claims
|
|
3,564
|
|
(119)
|
|
(321)
|
|
–
|
|
3,124
|
Operating lease depreciation
|
|
|
|
(497)
|
|
–
|
|
–
|
|
(497)
|
Net income
|
|
9,571
|
|
(523)
|
|
(77)
|
|
–
|
|
8,971
|
Operating expenses5
|
|
(5,998)
|
|
1,090
|
|
77
|
|
550
|
|
(4,281)
|
Impairment
|
|
(456)
|
|
–
|
|
–
|
|
–
|
|
(456)
|
Profit before tax
|
|
3,117
|
|
567
|
|
–
|
|
550
|
|
4,234
|
|
|
|
|
|
|
|
|
|
|
|
Half-year to 31 December 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
7,389
|
|
59
|
|
(1,078)
|
|
–
|
|
6,370
|
Other income, net of insurance claims
|
|
1,666
|
|
226
|
|
994
|
|
–
|
|
2,886
|
Operating lease depreciation
|
|
|
|
(459)
|
|
–
|
|
–
|
|
(459)
|
Net income
|
|
9,055
|
|
(174)
|
|
(84)
|
|
–
|
|
8,797
|
Operating expenses5
|
|
(5,731)
|
|
963
|
|
84
|
|
200
|
|
(4,484)
|
Impairment
|
|
(481)
|
|
–
|
|
–
|
|
–
|
|
(481)
|
Profit before tax
|
|
2,843
|
|
789
|
|
–
|
|
200
|
|
3,832
|
|
|
|
1
|
Half-year
to 30 June 2019 comprises the effects of asset sales (gains of
£5 million); volatility and other items (losses of
£301 million); the amortisation of purchased intangibles
(£34 million); restructuring (£182 million, comprising
severance related costs, the rationalisation of the non-branch
property portfolio, the integration of MBNA and Zurich’s UK
workplace pensions and savings business); and the fair value unwind
and other items (losses of £135 million).
|
|
2
|
Half-year
to 30 June 2018 comprises the effects of asset sales (losses of
£120 million); volatility and other items (gains of
£154 million); the amortisation of purchased intangibles
(£53 million); restructuring (£377 million, comprising
severance related costs, the rationalisation of the non-branch
property portfolio, the work on implementing the ring-fencing
requirements and the integration of MBNA and Zurich’s UK
workplace pensions and savings business); and the fair value unwind
and other items (losses of £171 million).
|
|
3
|
Half-year
to 31 December 2018 comprises the effects of asset sales (losses of
£25 million); volatility and other items (losses of
£59 million); the amortisation of purchased intangibles
(£55 million); restructuring (£502 million, comprising
severance related costs, the rationalisation of the non-branch
property portfolio, the work on implementing the ring-fencing
requirements and the integration of MBNA and Zurich’s UK
workplace pensions and savings business); and the fair value unwind
and other items (losses of £148 million).
|
|
4
|
The
Group’s insurance businesses’ income statements include
income and expenditure which are attributable to the policyholders
of the Group’s long term assurance funds. These items have no
impact in total upon the profit attributable to equity shareholders
and, in order to provide a clearer representation of the underlying
trends within the business, these items are shown net within the
underlying results.
|
|
5
|
The
statutory basis figure is the aggregate of operating costs and
operating lease depreciation.
|
|
|
|
|
|
|
|
|
|
|
Half-year
|
|
Half-year
|
|
Half-year
|
|
|
to 30 June
|
|
to 30 June
|
|
to 31 Dec
|
|
|
2019
|
|
2018
|
|
2018
|
|
|
|
|
|
|
|
Group net interest income – statutory basis
(£m)
|
|
4,639
|
|
6,007
|
|
7,389
|
Insurance gross up (£m)
|
|
1,303
|
|
244
|
|
(1,078)
|
Volatility and other items (£m)
|
|
203
|
|
93
|
|
59
|
Group net interest income – underlying basis
(£m)
|
|
6,145
|
|
6,344
|
|
6,370
|
Non-banking net interest expense (£m)1
|
|
79
|
|
3
|
|
51
|
Banking net interest income – underlying basis
(£m)
|
|
6,224
|
|
6,347
|
|
6,421
|
|
|
|
|
|
|
|
Net loans and advances to customers
(£bn)2
|
|
441.0
|
|
442.3
|
|
444.4
|
Impairment provision and fair value adjustments
(£bn)
|
|
4.0
|
|
4.0
|
|
4.0
|
Non-banking items:
|
|
|
|
|
|
|
Fee
based loans and advances (£bn)
|
|
(7.5)
|
|
(5.3)
|
|
(7.2)
|
Other
non-banking (£bn)
|
|
(2.5)
|
|
(2.2)
|
|
(4.7)
|
Gross banking loans and advances (£bn)
|
|
435.0
|
|
438.8
|
|
436.5
|
Averaging (£bn)
|
|
(1.7)
|
|
(2.4)
|
|
(1.0)
|
Average interest-earning banking assets (£bn)
|
|
433.3
|
|
436.4
|
|
435.5
|
|
|
|
|
|
|
|
Banking net interest margin (%)
|
|
2.90
|
|
2.93
|
|
2.93
|
|
|
|
1
|
Half-year
to 2019 includes impact from the implementation of IFRS
16.
|
|
2
|
Excludes
reverse repos.
|
|
|
|
|
|
|
|
|
|
|
Half-year
|
|
Half-year
|
|
Half-year
|
|
|
to 30 June
|
|
to 30 June
|
|
to 31 Dec
|
|
|
2019
|
|
2018
|
|
2018
|
|
|
£m
|
|
£m
|
|
£m
|
|
|
|
|
|
|
|
Insurance volatility
|
|
221
|
|
(194)
|
|
(312)
|
Policyholder interests volatility
|
|
105
|
|
122
|
|
(76)
|
Total volatility
|
|
326
|
|
(72)
|
|
(388)
|
Insurance hedging arrangements
|
|
(299)
|
|
111
|
|
246
|
Total
|
|
27
|
|
39
|
|
(142)
|
|
|
|
|
|
|
|
|
|
At 30 June
|
|
At 30 June
|
|
At 31 Dec
|
|
|
2019
|
|
2018
|
|
2018
|
|
|
£m
|
|
£m
|
|
£m
|
|
|
|
|
|
|
|
Shareholders’ equity
|
|
43,448
|
|
42,940
|
|
43,434
|
Goodwill
|
|
(2,314)
|
|
(2,310)
|
|
(2,310)
|
Intangible assets
|
|
(3,615)
|
|
(3,061)
|
|
(3,347)
|
Purchased value of in-force business
|
|
(255)
|
|
(291)
|
|
(271)
|
Other, including deferred tax effects
|
|
203
|
|
240
|
|
228
|
Tangible net assets
|
|
37,467
|
|
37,518
|
|
37,734
|
|
|
|
|
|
|
|
Ordinary shares in issue, excluding own shares
|
|
70,740m
|
|
71,944m
|
|
71,149m
|
Tangible net assets per share
|
|
53.0p
|
|
52.1p
|
|
53.0p
|
|
|
|
|
|
|
|
|
|
Half-year
|
|
Half-year
|
|
Half-year
|
|
|
to 30 June
|
|
to 30 June
|
|
to 31 Dec
|
|
|
2019
|
|
2018
|
|
2018
|
|
|
|
|
|
|
|
Average shareholders' equity (£bn)
|
|
43.6
|
|
43.2
|
|
42.8
|
Average intangible assets (£bn)
|
|
(5.8)
|
|
(5.3)
|
|
(5.6)
|
Average tangible equity (£bn)
|
|
37.8
|
|
37.9
|
|
37.2
|
|
|
|
|
|
|
|
Underlying profit after tax (£m)1
|
|
3,160
|
|
3,174
|
|
2,883
|
Add back amortisation of intangible assets (post tax)
(£m)
|
|
178
|
|
138
|
|
158
|
Less profit attributable to non-controlling interests and other
equity
holders (£m)1
|
|
(283)
|
|
(242)
|
|
(289)
|
Adjusted underlying profit after tax (£m)
|
|
3,055
|
|
3,070
|
|
2,752
|
|
|
|
|
|
|
|
Underlying return on tangible equity (%)
|
|
16.3
|
|
16.3
|
|
14.7
|
|
|
|
|
|
|
|
Group statutory profit after tax (£m)1
|
|
2,225
|
|
2,317
|
|
2,189
|
Add back amortisation of intangible assets (post tax)
(£m)
|
|
178
|
|
138
|
|
158
|
Add back amortisation of purchased intangible assets (post tax)
(£m)
|
|
38
|
|
59
|
|
52
|
Less profit attributable to non-controlling interests and other
equity
holders (£m)1
|
|
(283)
|
|
(242)
|
|
(289)
|
Adjusted statutory profit after tax (£m)
|
|
2,158
|
|
2,272
|
|
2,110
|
|
|
|
|
|
|
|
Statutory return on tangible equity (%)
|
|
11.5
|
|
12.1
|
|
11.3
|
1
|
Prior
period restated to reflect amendments to IAS 12, see basis of
presentation.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Half-year
|
|
Half-year
|
|
|
|
Half-year
|
|
|
|
|
to 30 June
|
|
to 30 June
|
|
|
|
to 31 Dec
|
|
|
|
|
2019
|
|
20181
|
|
Change
|
|
20181
|
|
Change
|
|
|
£m
|
|
£m
|
|
%
|
|
£m
|
|
%
|
Retail:
|
|
|
|
|
|
|
|
|
|
|
Secured
|
|
(38)
|
|
20
|
|
|
|
18
|
|
|
Unsecured
|
|
461
|
|
386
|
|
(19)
|
|
297
|
|
(55)
|
UK
Motor Finance
|
|
104
|
|
49
|
|
|
|
64
|
|
(63)
|
Other
|
|
29
|
|
5
|
|
|
|
22
|
|
(32)
|
|
|
556
|
|
460
|
|
(21)
|
|
401
|
|
(39)
|
Commercial Banking:
|
|
|
|
|
|
|
|
|
|
|
SME
|
|
(48)
|
|
14
|
|
|
|
49
|
|
|
Other
|
|
113
|
|
(20)
|
|
|
|
28
|
|
|
|
|
65
|
|
(6)
|
|
|
|
77
|
|
16
|
Insurance and Wealth
|
|
–
|
|
–
|
|
|
|
1
|
|
|
Central items
|
|
(42)
|
|
2
|
|
|
|
2
|
|
|
Total impairment charge
|
|
579
|
|
456
|
|
(27)
|
|
481
|
|
(20)
|
|
|
|
|
|
|
|
|
|
|
|
Asset quality ratio
|
|
0.26%
|
|
0.20%
|
|
6bp
|
|
0.22%
|
|
4bp
|
Gross asset quality ratio
|
|
0.34%
|
|
0.27%
|
|
7bp
|
|
0.30%
|
|
4bp
|
|
|
1
|
Prior
period segmental comparatives restated. See basis of
presentation.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchased
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
or
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
originated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
credit-
|
|
Stage 2
|
|
Stage 3
|
|
|
Total
|
|
Stage 1
|
|
Stage 2
|
|
Stage 3
|
|
impaired
|
|
as %
|
|
as %
|
At 30 June 2019
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
of total
|
|
of total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Secured
|
|
285,293
|
|
252,260
|
|
16,876
|
|
1,543
|
|
14,614
|
|
5.9
|
|
0.5
|
Unsecured
|
|
27,895
|
|
24,578
|
|
2,639
|
|
678
|
|
–
|
|
9.5
|
|
2.4
|
UK
Motor Finance
|
|
15,882
|
|
14,343
|
|
1,402
|
|
137
|
|
–
|
|
8.8
|
|
0.9
|
Other
|
|
10,908
|
|
9,957
|
|
790
|
|
161
|
|
–
|
|
7.2
|
|
1.5
|
|
|
339,978
|
|
301,138
|
|
21,707
|
|
2,519
|
|
14,614
|
|
6.4
|
|
0.7
|
Commercial Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SME
|
|
30,835
|
|
26,069
|
|
4,074
|
|
692
|
|
–
|
|
13.2
|
|
2.2
|
Other
|
|
70,688
|
|
64,264
|
|
3,339
|
|
3,085
|
|
–
|
|
4.7
|
|
4.4
|
|
|
101,523
|
|
90,333
|
|
7,413
|
|
3,777
|
|
–
|
|
7.3
|
|
3.7
|
Insurance and Wealth
|
|
895
|
|
789
|
|
50
|
|
56
|
|
–
|
|
5.6
|
|
6.3
|
Central items
|
|
56,055
|
|
55,986
|
|
1
|
|
68
|
|
–
|
|
–
|
|
0.1
|
Total gross lending
|
|
498,451
|
|
448,246
|
|
29,171
|
|
6,420
|
|
14,614
|
|
5.9
|
|
1.3
|
ECL allowance on
drawn balances
|
|
(3,313)
|
|
(621)
|
|
(953)
|
|
(1,558)
|
|
(181)
|
|
|
|
|
Net balance sheet
carrying value
|
|
495,138
|
|
447,625
|
|
28,218
|
|
4,862
|
|
14,433
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ECL allowance (drawn and undrawn) as a
percentage of gross lending (%)1
|
|
0.7
|
|
0.2
|
|
3.5
|
|
25.4
|
|
|
|
|
|
|
|
|
1
|
Stage 3
ECL allowances as a percentage of drawn balances are calculated
excluding loans in recoveries for unsecured of
£242 million and £18 million for Business Banking
within Retail other.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchased
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
or
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
originated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
credit-
|
|
Stage 2
|
|
Stage 3
|
|
|
Total
|
|
Stage 1
|
|
Stage 2
|
|
Stage 3
|
|
impaired
|
|
as %
|
|
as %
|
At 31 December 20181
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
of total
|
|
of total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Secured
|
|
288,235
|
|
257,797
|
|
13,654
|
|
1,393
|
|
15,391
|
|
4.7
|
|
0.5
|
Unsecured
|
|
28,115
|
|
24,705
|
|
2,707
|
|
703
|
|
–
|
|
9.6
|
|
2.5
|
UK
Motor Finance
|
|
14,933
|
|
13,224
|
|
1,580
|
|
129
|
|
–
|
|
10.6
|
|
0.9
|
Other
|
|
10,399
|
|
9,434
|
|
800
|
|
165
|
|
–
|
|
7.7
|
|
1.6
|
|
|
341,682
|
|
305,160
|
|
18,741
|
|
2,390
|
|
15,391
|
|
5.5
|
|
0.7
|
Commercial Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SME
|
|
30,296
|
|
26,099
|
|
3,484
|
|
713
|
|
–
|
|
11.5
|
|
2.4
|
Other
|
|
71,528
|
|
65,903
|
|
3,108
|
|
2,517
|
|
–
|
|
4.3
|
|
3.5
|
|
|
101,824
|
|
92,002
|
|
6,592
|
|
3,230
|
|
–
|
|
6.5
|
|
3.2
|
Insurance and Wealth
|
|
865
|
|
804
|
|
6
|
|
55
|
|
–
|
|
0.7
|
|
6.4
|
Central items
|
|
43,637
|
|
43,565
|
|
6
|
|
66
|
|
–
|
|
–
|
|
0.2
|
Total gross lending
|
|
488,008
|
|
441,531
|
|
25,345
|
|
5,741
|
|
15,391
|
|
5.2
|
|
1.2
|
ECL allowance on
drawn balances
|
|
(3,150)
|
|
(525)
|
|
(994)
|
|
(1,553)
|
|
(78)
|
|
|
|
|
Net balance sheet carrying value
|
|
484,858
|
|
441,006
|
|
24,351
|
|
4,188
|
|
15,313
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ECL allowance (drawn and undrawn) as a percentage of gross lending
(%)2
|
|
0.7
|
|
0.1
|
|
4.2
|
|
28.4
|
|
|
|
|
|
|
|
|
1
|
Segmental
comparatives restated. See basis of presentation.
|
2
|
Stage 3
ECL allowances as a percentage of drawn balances are calculated
excluding loans in recoveries for unsecured of
£233 million and £17 million for Business Banking
within Retail other.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stage 2
|
|
Stage 3
|
|
|
Total
|
|
Stage 1
|
|
Stage 2
|
|
Stage 3
|
|
as %
|
|
as %
|
At 30 June
20191
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
of total
|
|
of total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
|
Secured
|
|
286,073
|
|
253,348
|
|
27,985
|
|
4,740
|
|
9.8
|
|
1.7
|
Unsecured
|
|
27,788
|
|
24,480
|
|
2,631
|
|
677
|
|
9.5
|
|
2.4
|
UK
Motor Finance
|
|
15,882
|
|
14,343
|
|
1,402
|
|
137
|
|
8.8
|
|
0.9
|
Other
|
|
10,908
|
|
9,957
|
|
790
|
|
161
|
|
7.2
|
|
1.5
|
|
|
340,651
|
|
302,128
|
|
32,808
|
|
5,715
|
|
9.6
|
|
1.7
|
Commercial Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
SME
|
|
30,835
|
|
26,069
|
|
4,074
|
|
692
|
|
13.2
|
|
2.2
|
Other
|
|
70,688
|
|
64,264
|
|
3,339
|
|
3,085
|
|
4.7
|
|
4.4
|
|
|
101,523
|
|
90,333
|
|
7,413
|
|
3,777
|
|
7.3
|
|
3.7
|
Insurance and Wealth
|
|
895
|
|
789
|
|
50
|
|
56
|
|
5.6
|
|
6.3
|
Central items
|
|
56,055
|
|
55,986
|
|
1
|
|
68
|
|
–
|
|
0.1
|
Total gross lending
|
|
499,124
|
|
449,236
|
|
40,272
|
|
9,616
|
|
8.1
|
|
1.9
|
ECL allowance on drawn balances
|
|
(4,164)
|
|
(650)
|
|
(1,370)
|
|
(2,144)
|
|
|
|
|
Net balance sheet carrying value
|
|
494,960
|
|
448,586
|
|
38,902
|
|
7,472
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ECL allowance (drawn and undrawn) as a
percentage of gross lending (%)2
|
|
0.9
|
|
0.2
|
|
3.6
|
|
23.0
|
|
|
|
|
|
|
1
|
These
balances exclude the impact of the HBOS and MBNA acquisition
related adjustments.
|
2
|
Stage 3
ECL allowances as a percentage of drawn balances are calculated
excluding loans in recoveries for unsecured of
£242 million and £18 million for Business Banking
within Retail other.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stage 2
|
|
Stage 3
|
|
|
Total
|
|
Stage 1
|
|
Stage 2
|
|
Stage 3
|
|
as %
|
|
as %
|
At 31 December 20181,2
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
of total
|
|
of total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
|
Secured
|
|
289,237
|
|
257,797
|
|
26,571
|
|
4,869
|
|
9.2
|
|
1.7
|
Unsecured
|
|
27,990
|
|
24,593
|
|
2,696
|
|
701
|
|
9.6
|
|
2.5
|
UK
Motor Finance
|
|
14,933
|
|
13,224
|
|
1,580
|
|
129
|
|
10.6
|
|
0.9
|
Other
|
|
10,399
|
|
9,434
|
|
800
|
|
165
|
|
7.7
|
|
1.6
|
|
|
342,559
|
|
305,048
|
|
31,647
|
|
5,864
|
|
9.2
|
|
1.7
|
Commercial Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
SME
|
|
30,296
|
|
26,099
|
|
3,484
|
|
713
|
|
11.5
|
|
2.4
|
Other
|
|
71,528
|
|
65,903
|
|
3,108
|
|
2,517
|
|
4.3
|
|
3.5
|
|
|
101,824
|
|
92,002
|
|
6,592
|
|
3,230
|
|
6.5
|
|
3.2
|
Insurance and Wealth
|
|
865
|
|
804
|
|
6
|
|
55
|
|
0.7
|
|
6.4
|
Central items
|
|
43,637
|
|
43,565
|
|
6
|
|
66
|
|
–
|
|
0.2
|
Total gross lending
|
|
488,885
|
|
441,419
|
|
38,251
|
|
9,215
|
|
7.8
|
|
1.9
|
ECL allowance on drawn balances
|
|
(4,236)
|
|
(556)
|
|
(1,506)
|
|
(2,174)
|
|
|
|
|
Net balance sheet carrying value
|
|
484,649
|
|
440,863
|
|
36,745
|
|
7,041
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ECL allowance (drawn and undrawn) as a percentage of gross lending
(%)3
|
|
0.9
|
|
0.2
|
|
4.1
|
|
24.3
|
|
|
|
|
|
|
1
|
These
balances exclude the impact of the HBOS and MBNA acquisition
related adjustments.
|
2
|
Segmental
comparatives restated. See basis of presentation.
|
3
|
Stage 3
ECL allowances as a percentage of drawn balances are calculated
excluding loans in recoveries for unsecured of
£233 million and £17 million for Business Banking
within Retail other.
|
|
|
|
|
|
|
|
At 30 June
|
|
At 31 Dec
|
|
|
2019
|
|
2018
|
|
|
£m
|
|
£m
|
Customer related balances
|
|
|
|
|
Drawn
|
|
3,313
|
|
3,150
|
Undrawn
|
|
173
|
|
193
|
|
|
3,486
|
|
3,343
|
Other assets
|
|
25
|
|
19
|
Total expected credit loss allowance
|
|
3,511
|
|
3,362
|
|
|
|
|
|
|
|
At 30 June
|
|
At 31 Dec
|
|
|
2019
|
|
2018
|
|
|
£m
|
|
£m
|
Customer related balances
|
|
|
|
|
Drawn
|
|
4,164
|
|
4,236
|
Undrawn
|
|
173
|
|
193
|
|
|
4,337
|
|
4,429
|
Other assets
|
|
25
|
|
19
|
Total expected credit loss allowance
|
|
4,362
|
|
4,448
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchased or
|
|
|
|
|
|
|
|
|
|
originated
|
|
Total
|
|
Stage 1
|
|
Stage 2
|
|
Stage 3
|
|
credit-impaired
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
At 30 June 2019
|
|
|
|
|
|
|
|
|
|
Underlying basis
|
499,124
|
|
449,236
|
|
40,272
|
|
9,616
|
|
–
|
Purchased or originated credit-impaired
assets
|
–
|
|
(1,087)
|
|
(11,109)
|
|
(3,197)
|
|
15,393
|
Acquisition fair value adjustment
|
(673)
|
|
97
|
|
8
|
|
1
|
|
(779)
|
|
(673)
|
|
(990)
|
|
(11,101)
|
|
(3,196)
|
|
14,614
|
Statutory basis
|
498,451
|
|
448,246
|
|
29,171
|
|
6,420
|
|
14,614
|
|
|
|
|
|
|
|
|
|
|
At 31 December 2018
|
|
|
|
|
|
|
|
|
|
Underlying basis
|
488,885
|
|
441,419
|
|
38,251
|
|
9,215
|
|
–
|
Purchased or originated credit-impaired
assets
|
–
|
|
–
|
|
(12,917)
|
|
(3,476)
|
|
16,393
|
Acquisition fair value adjustment
|
(877)
|
|
112
|
|
11
|
|
2
|
|
(1,002)
|
|
(877)
|
|
112
|
|
(12,906)
|
|
(3,474)
|
|
15,391
|
Statutory basis
|
488,008
|
|
441,531
|
|
25,345
|
|
5,741
|
|
15,391
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchased or
|
|
|
|
|
|
|
|
|
|
originated
|
|
Total
|
|
Stage 1
|
|
Stage 2
|
|
Stage 3
|
|
credit-impaired
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
At 30 June 2019
|
|
|
|
|
|
|
|
|
|
Underlying basis
|
4,164
|
|
650
|
|
1,370
|
|
2,144
|
|
–
|
Purchased or originated credit-impaired assets
|
–
|
|
(2)
|
|
(393)
|
|
(565)
|
|
960
|
Acquisition fair value adjustment
|
(851)
|
|
(27)
|
|
(24)
|
|
(21)
|
|
(779)
|
|
(851)
|
|
(29)
|
|
(417)
|
|
(586)
|
|
181
|
Statutory basis
|
3,313
|
|
621
|
|
953
|
|
1,558
|
|
181
|
|
|
|
|
|
|
|
|
|
|
At 31 December 2018
|
|
|
|
|
|
|
|
|
|
Expected credit losses on drawn balances
|
|
|
|
|
|
|
|
|
|
Underlying basis
|
4,236
|
|
556
|
|
1,506
|
|
2,174
|
|
–
|
Purchased or originated credit-impaired assets
|
–
|
|
–
|
|
(481)
|
|
(599)
|
|
1,080
|
Acquisition fair value adjustment
|
(1,086)
|
|
(31)
|
|
(31)
|
|
(22)
|
|
(1,002)
|
|
(1,086)
|
|
(31)
|
|
(512)
|
|
(621)
|
|
78
|
Statutory basis
|
3,150
|
|
525
|
|
994
|
|
1,553
|
|
78
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchased or
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
originated
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
credit-
|
||
|
|
Total
|
|
Stage 1
|
|
Stage 2
|
|
Stage 3
|
|
impaired
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 30 June
20191
|
|
£m
|
|
%3
|
|
£m
|
|
%3
|
|
£m
|
|
%3
|
|
£m
|
|
%2,3
|
|
£m
|
|
%3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Secured
|
|
619
|
|
0.2
|
|
38
|
|
–
|
|
266
|
|
1.6
|
|
134
|
|
8.7
|
|
181
|
|
1.2
|
Unsecured
|
|
911
|
|
3.3
|
|
319
|
|
1.3
|
|
377
|
|
14.3
|
|
215
|
|
49.3
|
|
–
|
|
–
|
UK
Motor Finance
|
|
349
|
|
2.2
|
|
202
|
|
1.4
|
|
70
|
|
5.0
|
|
77
|
|
56.2
|
|
–
|
|
–
|
Other
|
|
126
|
|
1.2
|
|
40
|
|
0.4
|
|
34
|
|
4.3
|
|
52
|
|
36.4
|
|
–
|
|
–
|
|
|
2,005
|
|
0.6
|
|
599
|
|
0.2
|
|
747
|
|
3.4
|
|
478
|
|
21.2
|
|
181
|
|
1.2
|
Commercial Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SME
|
|
311
|
|
1.0
|
|
37
|
|
0.1
|
|
165
|
|
4.1
|
|
109
|
|
15.8
|
|
–
|
|
–
|
Other
|
|
1,122
|
|
1.6
|
|
62
|
|
0.1
|
|
118
|
|
3.5
|
|
942
|
|
30.5
|
|
–
|
|
–
|
|
|
1,433
|
|
1.4
|
|
99
|
|
0.1
|
|
283
|
|
3.8
|
|
1,051
|
|
27.8
|
|
–
|
|
–
|
Insurance and Wealth
|
|
17
|
|
1.9
|
|
5
|
|
0.6
|
|
1
|
|
2.0
|
|
11
|
|
19.6
|
|
–
|
|
–
|
Central items
|
|
31
|
|
0.1
|
|
7
|
|
–
|
|
1
|
|
100.0
|
|
23
|
|
33.8
|
|
–
|
|
–
|
Total
|
|
3,486
|
|
0.7
|
|
710
|
|
0.2
|
|
1,032
|
|
3.5
|
|
1,563
|
|
25.4
|
|
181
|
|
1.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 31 December 20181,4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Secured
|
|
460
|
|
0.2
|
|
38
|
|
–
|
|
226
|
|
1.7
|
|
118
|
|
8.5
|
|
78
|
|
0.5
|
Unsecured
|
|
896
|
|
3.2
|
|
287
|
|
1.2
|
|
379
|
|
14.0
|
|
230
|
|
48.9
|
|
–
|
|
–
|
UK
Motor Finance
|
|
290
|
|
1.9
|
|
127
|
|
1.0
|
|
78
|
|
4.9
|
|
85
|
|
65.9
|
|
–
|
|
–
|
Other
|
|
122
|
|
1.2
|
|
41
|
|
0.4
|
|
30
|
|
3.8
|
|
51
|
|
34.5
|
|
–
|
|
–
|
|
|
1,768
|
|
0.5
|
|
493
|
|
0.2
|
|
713
|
|
3.8
|
|
484
|
|
22.6
|
|
78
|
|
0.5
|
Commercial Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SME
|
|
384
|
|
1.3
|
|
40
|
|
0.2
|
|
231
|
|
6.6
|
|
113
|
|
15.8
|
|
–
|
|
–
|
Other
|
|
1,102
|
|
1.5
|
|
71
|
|
0.1
|
|
107
|
|
3.4
|
|
924
|
|
36.7
|
|
–
|
|
–
|
|
|
1,486
|
|
1.5
|
|
111
|
|
0.1
|
|
338
|
|
5.1
|
|
1,037
|
|
32.1
|
|
–
|
|
–
|
Insurance and Wealth
|
|
18
|
|
2.1
|
|
6
|
|
0.7
|
|
1
|
|
16.7
|
|
11
|
|
20.0
|
|
–
|
|
–
|
Central items
|
|
71
|
|
0.2
|
|
38
|
|
0.1
|
|
6
|
|
100.0
|
|
27
|
|
40.9
|
|
–
|
|
–
|
Total
|
|
3,343
|
|
0.7
|
|
648
|
|
0.1
|
|
1,058
|
|
4.2
|
|
1,559
|
|
28.4
|
|
78
|
|
0.5
|
|
|
1
|
UK
Motor Finance expected credit loss allowances for Stages 1 and 2
include £179 million (31 December 2018: £99 million)
relating to provisions held against the residual value of vehicles
that are returned to the Group at the end of contract, in addition
to covering losses for exposures to customers that choose to
voluntarily terminate their agreements early. The provisions are
included within the calculation of coverage ratios.
|
2
|
Stage 3
ECL allowances as a percentage of drawn balances are calculated
excluding loans in recoveries for unsecured (30 June 2019:
£242 million; 31 December 2018:
£233 million) and Business Banking within Retail other
(30 June 2019: £18 million; 31 December 2018: £17
million).
|
3
|
As a
percentage of drawn balances.
|
4
|
Segmental
comparatives restated. See basis of presentation.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Total
|
|
Stage 1
|
|
Stage 2
|
|
Stage 3
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 30 June
20191,2
|
|
£m
|
|
%4
|
|
£m
|
|
%4
|
|
£m
|
|
%4
|
|
£m
|
|
%3,4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Secured
|
|
1,398
|
|
0.5
|
|
40
|
|
–
|
|
659
|
|
2.4
|
|
699
|
|
14.7
|
Unsecured
|
|
983
|
|
3.5
|
|
346
|
|
1.4
|
|
401
|
|
15.2
|
|
236
|
|
54.3
|
UK
Motor Finance
|
|
349
|
|
2.2
|
|
202
|
|
1.4
|
|
70
|
|
5.0
|
|
77
|
|
56.2
|
Other
|
|
126
|
|
1.2
|
|
40
|
|
0.4
|
|
34
|
|
4.3
|
|
52
|
|
36.4
|
|
|
2,856
|
|
0.8
|
|
628
|
|
0.2
|
|
1,164
|
|
3.5
|
|
1,064
|
|
19.5
|
Commercial Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SME
|
|
311
|
|
1.0
|
|
37
|
|
0.1
|
|
165
|
|
4.1
|
|
109
|
|
15.8
|
Other
|
|
1,122
|
|
1.6
|
|
62
|
|
0.1
|
|
118
|
|
3.5
|
|
942
|
|
30.5
|
|
|
1,433
|
|
1.4
|
|
99
|
|
0.1
|
|
283
|
|
3.8
|
|
1,051
|
|
27.8
|
Insurance and Wealth
|
|
17
|
|
1.9
|
|
5
|
|
0.6
|
|
1
|
|
2.0
|
|
11
|
|
19.6
|
Central items
|
|
31
|
|
0.1
|
|
7
|
|
–
|
|
1
|
|
100.0
|
|
23
|
|
33.8
|
Total
|
|
4,337
|
|
0.9
|
|
739
|
|
0.2
|
|
1,449
|
|
3.6
|
|
2,149
|
|
23.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 31 December 20181,2,5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Secured
|
|
1,462
|
|
0.5
|
|
38
|
|
–
|
|
707
|
|
2.7
|
|
717
|
|
14.7
|
Unsecured
|
|
980
|
|
3.5
|
|
318
|
|
1.3
|
|
410
|
|
15.2
|
|
252
|
|
53.8
|
UK
Motor Finance
|
|
290
|
|
1.9
|
|
127
|
|
1.0
|
|
78
|
|
4.9
|
|
85
|
|
65.9
|
Other
|
|
122
|
|
1.2
|
|
41
|
|
0.4
|
|
30
|
|
3.8
|
|
51
|
|
34.5
|
|
|
2,854
|
|
0.8
|
|
524
|
|
0.2
|
|
1,225
|
|
3.9
|
|
1,105
|
|
19.7
|
Commercial Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SME
|
|
384
|
|
1.3
|
|
40
|
|
0.2
|
|
231
|
|
6.6
|
|
113
|
|
15.8
|
Other
|
|
1,102
|
|
1.5
|
|
71
|
|
0.1
|
|
107
|
|
3.4
|
|
924
|
|
36.7
|
|
|
1,486
|
|
1.5
|
|
111
|
|
0.1
|
|
338
|
|
5.1
|
|
1,037
|
|
32.1
|
Insurance and Wealth
|
|
18
|
|
2.1
|
|
6
|
|
0.7
|
|
1
|
|
16.7
|
|
11
|
|
20.0
|
Central items
|
|
71
|
|
0.2
|
|
38
|
|
0.1
|
|
6
|
|
100.0
|
|
27
|
|
40.9
|
Total
|
|
4,429
|
|
0.9
|
|
679
|
|
0.2
|
|
1,570
|
|
4.1
|
|
2,180
|
|
24.3
|
|
|
1
|
These
balances exclude the impact of the HBOS and MBNA acquisition
related adjustments.
|
2
|
UK
Motor Finance expected credit loss allowances for Stages 1 and 2
include £179 million (31 December 2018: £99 million)
relating to provisions held against the residual value of vehicles
that are returned to the Group at the end of contract, in addition
to covering losses for exposures to customers that choose to
voluntarily terminate their agreements early. The provisions are
included within the calculation of coverage ratios.
|
3
|
Stage 3
ECL allowances as a percentage of drawn balances are calculated
excluding loans in recoveries for unsecured (30 June 2019:
£242 million; 31 December 2018:
£233 million) and Business Banking within Retail other
(30 June 2019: £18 million; 31 December 2018: £17
million).
|
4
|
As a
percentage of drawn balances.
|
5
|
Prior
period segmental comparatives restated. See basis of
presentation.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Up to date
|
|
1-30 days past due
|
|
Over 30 days past due
|
||||||||||||
|
|
|
|
Expected
|
|
as % of
|
|
|
|
Expected
|
|
as % of
|
|
|
|
Expected
|
|
as % of
|
|
|
Gross
|
|
credit
|
|
gross
|
|
Gross
|
|
credit
|
|
gross
|
|
Gross
|
|
credit
|
|
gross
|
|
|
lending
|
|
loss
|
|
lending
|
|
lending
|
|
loss
|
|
lending
|
|
lending
|
|
loss
|
|
lending
|
|
|
£m
|
|
£m
|
|
%
|
|
£m
|
|
£m
|
|
%
|
|
£m
|
|
£m
|
|
%
|
At 30 June 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Secured
|
|
13,320
|
|
173
|
|
1.3
|
|
1,917
|
|
34
|
|
1.8
|
|
1,639
|
|
59
|
|
3.6
|
Unsecured
|
|
2,277
|
|
278
|
|
12.2
|
|
260
|
|
59
|
|
22.7
|
|
102
|
|
40
|
|
39.2
|
UK
Motor Finance
|
|
1,215
|
|
40
|
|
3.3
|
|
155
|
|
22
|
|
14.2
|
|
32
|
|
8
|
|
25.0
|
Other
|
|
644
|
|
20
|
|
3.1
|
|
76
|
|
9
|
|
11.8
|
|
70
|
|
5
|
|
7.1
|
|
|
17,456
|
|
511
|
|
2.9
|
|
2,408
|
|
124
|
|
5.1
|
|
1,843
|
|
112
|
|
6.1
|
Commercial Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SME
|
|
3,994
|
|
158
|
|
4.0
|
|
57
|
|
6
|
|
10.5
|
|
23
|
|
1
|
|
4.3
|
Other
|
|
3,053
|
|
116
|
|
3.8
|
|
55
|
|
1
|
|
1.8
|
|
231
|
|
1
|
|
0.4
|
|
|
7,047
|
|
274
|
|
3.9
|
|
112
|
|
7
|
|
6.3
|
|
254
|
|
2
|
|
0.8
|
Insurance and Wealth
|
|
24
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
26
|
|
1
|
|
3.8
|
Central items
|
|
1
|
|
1
|
|
100.0
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
Total
|
|
24,528
|
|
786
|
|
3.2
|
|
2,520
|
|
131
|
|
5.2
|
|
2,123
|
|
115
|
|
5.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 31 December 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Secured
|
|
10,118
|
|
139
|
|
1.4
|
|
1,955
|
|
30
|
|
1.5
|
|
1,581
|
|
57
|
|
3.6
|
Unsecured
|
|
2,355
|
|
293
|
|
12.4
|
|
258
|
|
53
|
|
20.5
|
|
94
|
|
33
|
|
35.1
|
UK
Motor Finance
|
|
1,403
|
|
47
|
|
3.3
|
|
146
|
|
23
|
|
15.8
|
|
31
|
|
8
|
|
25.8
|
Other
|
|
629
|
|
19
|
|
3.0
|
|
82
|
|
7
|
|
8.5
|
|
89
|
|
4
|
|
4.5
|
|
|
14,505
|
|
498
|
|
3.4
|
|
2,441
|
|
113
|
|
4.6
|
|
1,795
|
|
102
|
|
5.7
|
Commercial Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SME
|
|
3,037
|
|
181
|
|
6.0
|
|
383
|
|
41
|
|
10.7
|
|
64
|
|
9
|
|
14.1
|
Other
|
|
2,983
|
|
106
|
|
3.6
|
|
72
|
|
1
|
|
1.4
|
|
53
|
|
–
|
|
–
|
|
|
6,020
|
|
287
|
|
4.8
|
|
455
|
|
42
|
|
9.2
|
|
117
|
|
9
|
|
7.7
|
Insurance and Wealth
|
|
4
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
2
|
|
1
|
|
50.0
|
Central items
|
|
6
|
|
6
|
|
100.0
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
Total
|
|
20,535
|
|
791
|
|
3.9
|
|
2,896
|
|
155
|
|
5.4
|
|
1,914
|
|
112
|
|
5.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Up to date
|
|
1-30 days past due
|
|
Over 30 days past due
|
||||||||||||
|
|
|
|
Expected
|
|
as % of
|
|
|
|
Expected
|
|
as % of
|
|
|
|
Expected
|
|
as % of
|
|
|
Gross
|
|
credit
|
|
gross
|
|
Gross
|
|
credit
|
|
gross
|
|
Gross
|
|
credit
|
|
gross
|
|
|
lending
|
|
loss
|
|
lending
|
|
lending
|
|
loss
|
|
lending
|
|
lending
|
|
loss
|
|
lending
|
|
|
£m
|
|
£m
|
|
%
|
|
£m
|
|
£m
|
|
%
|
|
£m
|
|
£m
|
|
%
|
At 30 June
20191
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Secured
|
|
20,702
|
|
374
|
|
1.8
|
|
3,592
|
|
90
|
|
2.5
|
|
3,691
|
|
195
|
|
5.3
|
Unsecured
|
|
2,269
|
|
294
|
|
13.0
|
|
260
|
|
64
|
|
24.6
|
|
102
|
|
43
|
|
42.2
|
UK
Motor Finance
|
|
1,215
|
|
40
|
|
3.3
|
|
155
|
|
22
|
|
14.2
|
|
32
|
|
8
|
|
25.0
|
Other
|
|
644
|
|
20
|
|
3.1
|
|
76
|
|
9
|
|
11.8
|
|
70
|
|
5
|
|
7.1
|
|
|
24,830
|
|
728
|
|
2.9
|
|
4,083
|
|
185
|
|
4.5
|
|
3,895
|
|
251
|
|
6.4
|
Commercial Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SME
|
|
3,994
|
|
158
|
|
4.0
|
|
57
|
|
6
|
|
10.5
|
|
23
|
|
1
|
|
4.3
|
Other
|
|
3,053
|
|
116
|
|
3.8
|
|
55
|
|
1
|
|
1.8
|
|
231
|
|
1
|
|
0.4
|
|
|
7,047
|
|
274
|
|
3.9
|
|
112
|
|
7
|
|
6.3
|
|
254
|
|
2
|
|
0.8
|
Insurance and Wealth
|
|
24
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
26
|
|
1
|
|
3.8
|
Central items
|
|
1
|
|
1
|
|
100.0
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
Total
|
|
31,902
|
|
1,003
|
|
3.1
|
|
4,195
|
|
192
|
|
4.6
|
|
4,175
|
|
254
|
|
6.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 31 December 20181
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Secured
|
|
18,647
|
|
383
|
|
2.1
|
|
3,987
|
|
97
|
|
2.4
|
|
3,937
|
|
227
|
|
5.8
|
Unsecured
|
|
2,346
|
|
320
|
|
13.6
|
|
257
|
|
55
|
|
21.4
|
|
93
|
|
35
|
|
37.6
|
UK
Motor Finance
|
|
1,403
|
|
47
|
|
3.3
|
|
146
|
|
23
|
|
15.8
|
|
31
|
|
8
|
|
25.8
|
Other
|
|
629
|
|
19
|
|
3.0
|
|
82
|
|
7
|
|
8.5
|
|
89
|
|
4
|
|
4.5
|
|
|
23,025
|
|
769
|
|
3.3
|
|
4,472
|
|
182
|
|
4.1
|
|
4,150
|
|
274
|
|
6.6
|
Commercial Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SME
|
|
3,037
|
|
181
|
|
6.0
|
|
383
|
|
41
|
|
10.7
|
|
64
|
|
9
|
|
14.1
|
Other
|
|
2,983
|
|
106
|
|
3.6
|
|
72
|
|
1
|
|
1.4
|
|
53
|
|
–
|
|
–
|
|
|
6,020
|
|
287
|
|
4.8
|
|
455
|
|
42
|
|
9.2
|
|
117
|
|
9
|
|
7.7
|
Insurance and Wealth
|
|
4
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
2
|
|
1
|
|
50.0
|
Central items
|
|
6
|
|
6
|
|
100
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
Total
|
|
29,055
|
|
1,062
|
|
3.7
|
|
4,927
|
|
224
|
|
4.5
|
|
4,269
|
|
284
|
|
6.7
|
|
|
1
|
These
balances exclude the impact of the HBOS and MBNA acquisition
related adjustments.
|
|
|
|
|
|
|
|
At 30 June
|
|
At 31 Dec
|
|
|
2019
|
|
2018
|
|
|
£m
|
|
£m
|
|
|
|
|
|
Mainstream
|
|
222,196
|
|
223,230
|
Buy-to-let
|
|
50,184
|
|
51,322
|
Specialist
|
|
12,913
|
|
13,683
|
Total
|
|
285,293
|
|
288,235
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
Total
|
||||
|
|
Number of cases
|
|
mortgage accounts
|
|
Value of loans1
|
|
mortgage balances
|
||||||||
|
|
At 30 June
|
|
At 31
Dec
|
|
At 30 June
|
|
At 31
Dec
|
|
At 30 June
|
|
At 31 Dec
|
|
At 30 June
|
|
At 31
Dec
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
Cases
|
|
Cases
|
|
%
|
|
%
|
|
£m
|
|
£m
|
|
%
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mainstream
|
|
27,853
|
|
30,106
|
|
1.5
|
|
1.5
|
|
3,004
|
|
3,262
|
|
1.3
|
|
1.5
|
Buy-to-let
|
|
4,321
|
|
4,544
|
|
1.0
|
|
1.0
|
|
577
|
|
576
|
|
1.1
|
|
1.1
|
Specialist
|
|
6,961
|
|
7,966
|
|
7.2
|
|
7.8
|
|
1,137
|
|
1,282
|
|
8.7
|
|
9.3
|
Total
|
|
39,135
|
|
42,616
|
|
1.6
|
|
1.7
|
|
4,718
|
|
5,120
|
|
1.6
|
|
1.8
|
|
|
1
|
Value
of loans represents total gross book value of mortgages more than
three months in arrears; the balances exclude the impact of HBOS
related acquisition adjustments.
|
|
|
|
|
|
|
|
|
|
|
|
Mainstream
|
|
Buy-to-let
|
|
Specialist
|
|
Total
|
|
|
%
|
|
%
|
|
%
|
|
%
|
At 30 June 2019
|
|
|
|
|
|
|
|
|
Less than 60%
|
|
57.2
|
|
61.1
|
|
64.3
|
|
58.2
|
60% to 70%
|
|
17.0
|
|
23.0
|
|
16.2
|
|
18.0
|
70% to 80%
|
|
15.7
|
|
13.0
|
|
11.2
|
|
15.0
|
80% to 90%
|
|
8.5
|
|
1.7
|
|
3.7
|
|
7.1
|
90% to 100%
|
|
1.3
|
|
0.7
|
|
1.4
|
|
1.2
|
Greater than 100%
|
|
0.3
|
|
0.5
|
|
3.2
|
|
0.5
|
Total
|
|
100.0
|
|
100.0
|
|
100.0
|
|
100.0
|
Average loan to value2:
|
|
|
|
|
|
|
|
|
Stock
of residential mortgages
|
|
41.2
|
|
50.0
|
|
43.5
|
|
42.6
|
New
residential lending
|
|
63.7
|
|
58.4
|
|
n/a
|
|
63.1
|
|
|
|
|
|
|
|
|
|
|
|
Mainstream
|
|
Buy-to-let
|
|
Specialist
|
|
Total
|
|
|
%
|
|
%
|
|
%
|
|
%
|
At 31 December 2018
|
|
|
|
|
|
|
|
|
Less than 60%
|
|
54.2
|
|
55.7
|
|
59.7
|
|
54.7
|
60% to 70%
|
|
16.0
|
|
22.8
|
|
16.5
|
|
17.3
|
70% to 80%
|
|
15.9
|
|
15.7
|
|
12.0
|
|
15.7
|
80% to 90%
|
|
10.7
|
|
4.6
|
|
6.6
|
|
9.4
|
90% to 100%
|
|
2.8
|
|
0.7
|
|
2.0
|
|
2.4
|
Greater than 100%
|
|
0.4
|
|
0.5
|
|
3.2
|
|
0.5
|
Total
|
|
100.0
|
|
100.0
|
|
100.0
|
|
100.0
|
Average loan to value2:
|
|
|
|
|
|
|
|
|
Stock
of residential mortgages
|
|
42.5
|
|
52.1
|
|
45.8
|
|
44.1
|
New
residential lending
|
|
63.1
|
|
58.6
|
|
n/a
|
|
62.5
|
1
|
Loan to
value figures are based on the Halifax House Price Index,
calculated by IHS Markit Ltd.
|
2
|
Average
loan to value is calculated as total gross loans and advances as a
percentage of the indexed total collateral of these loans and
advances; the balances exclude the impact of HBOS related
acquisition adjustments.
|
|
|
|
|
|
|
|
|
|
At 30 June
|
|
At 31 Dec
|
|
|
|
|
2019
|
|
2018
|
|
Change
|
|
|
£bn
|
|
£bn
|
|
%
|
Funding requirement
|
|
|
|
|
|
|
Loans and advances to customers1
|
|
441.0
|
|
444.4
|
|
(1)
|
Loans and advances to banks2
|
|
6.7
|
|
5.9
|
|
14
|
Debt securities at amortised cost
|
|
3.8
|
|
4.0
|
|
(5)
|
Financial assets at fair value through other comprehensive income
– non-LCR eligible3
|
|
0.7
|
|
0.8
|
|
(13)
|
Cash and balances at central bank – non-LCR
eligible4
|
|
4.7
|
|
5.8
|
|
(19)
|
Funded assets
|
|
456.9
|
|
460.9
|
|
(1)
|
Other assets5
|
|
226.5
|
|
212.9
|
|
6
|
|
|
683.4
|
|
673.8
|
|
1
|
On balance sheet LCR eligible liquid assets
|
|
|
|
|
|
|
Reverse repurchase agreements
|
|
55.8
|
|
40.9
|
|
36
|
Cash and balances at central banks4
|
|
52.6
|
|
48.9
|
|
8
|
Debt securities at amortised cost
|
|
1.6
|
|
1.2
|
|
33
|
Financial assets at fair value through other comprehensive
income
|
|
26.4
|
|
24.0
|
|
10
|
Trading and fair value through profit and loss
|
|
7.1
|
|
11.9
|
|
(40)
|
Repurchase agreements
|
|
(4.7)
|
|
(3.1)
|
|
52
|
|
|
138.8
|
|
123.8
|
|
12
|
Total Group assets
|
|
822.2
|
|
797.6
|
|
3
|
Less: other liabilities5
|
|
(204.8)
|
|
(187.9)
|
|
9
|
Funding requirement
|
|
617.4
|
|
609.7
|
|
1
|
Funded by
|
|
|
|
|
|
|
Customer deposits6
|
|
417.6
|
|
416.3
|
|
–
|
Wholesale funding7
|
|
130.9
|
|
123.3
|
|
6
|
|
|
548.5
|
|
539.6
|
|
2
|
Term funding scheme
|
|
19.9
|
|
19.9
|
|
–
|
Total equity
|
|
49.0
|
|
50.2
|
|
(2)
|
Total funding
|
|
617.4
|
|
609.7
|
|
1
|
|
|
1
|
Excludes
reverse repos of £54.1 billion (31 December 2018: £40.5
billion).
|
2
|
Excludes
reverse repos of £1.7 billion (31 December 2018: £0.4
billion).
|
3
|
Non-LCR
eligible liquid assets comprise a diversified pool of highly rated
unencumbered collateral (including retained issuance).
|
4
|
Cash
and balances at central banks are combined in the Group’s
balance sheet.
|
5
|
Other
assets and other liabilities primarily include balances in the
Group’s Insurance business and the fair value of derivative
assets and liabilities.
|
6
|
Excludes
repos of £4.1 billion (31 December 2018: £1.8
billion).
|
7
|
The
Group’s definition of wholesale funding aligns with that used
by other international market participants; including interbank
deposits, debt securities in issue and subordinated
liabilities.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Repos
|
|
|
|
|
|
|
|
|
and cash
|
|
Fair value
|
|
|
|
|
Included in
|
|
collateral
|
|
and other
|
|
|
|
|
funding
|
|
received by
|
|
accounting
|
|
Balance
|
|
|
analysis
|
|
Insurance
|
|
methods
|
|
sheet
|
At 30 June 2019
|
|
£bn
|
|
£bn
|
|
£bn
|
|
£bn
|
|
|
|
|
|
|
|
|
|
Deposits from banks
|
|
10.8
|
|
23.7
|
|
0.3
|
|
34.8
|
Debt securities in issue
|
|
102.7
|
|
–
|
|
(4.9)
|
|
97.8
|
Subordinated liabilities
|
|
17.4
|
|
–
|
|
0.4
|
|
17.8
|
Total wholesale funding
|
|
130.9
|
|
23.7
|
|
|
|
|
Customer deposits
|
|
417.6
|
|
4.1
|
|
–
|
|
421.7
|
Total
|
|
548.5
|
|
27.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 31 December 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits from banks
|
|
8.3
|
|
22.1
|
|
(0.1)
|
|
30.3
|
Debt securities in issue
|
|
97.1
|
|
–
|
|
(5.9)
|
|
91.2
|
Subordinated liabilities
|
|
17.9
|
|
–
|
|
(0.2)
|
|
17.7
|
Total wholesale funding
|
|
123.3
|
|
22.1
|
|
|
|
|
Customer deposits
|
|
416.3
|
|
1.8
|
|
–
|
|
418.1
|
Total
|
|
539.6
|
|
23.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less
|
|
|
|
|
|
|
|
Nine
|
|
|
|
|
|
More
|
|
Total
|
|
Total
|
|
|
than
|
|
One to
|
|
Three
|
|
Six to
|
|
months
|
|
One to
|
|
Two to
|
|
than
|
|
at
|
|
at
|
|
|
one
|
|
three
|
|
to six
|
|
nine
|
|
to one
|
|
two
|
|
five
|
|
five
|
|
30 June
|
|
31 Dec
|
|
|
month
|
|
months
|
|
months
|
|
months
|
|
year
|
|
years
|
|
years
|
|
years
|
|
2019
|
|
2018
|
|
|
£bn
|
|
£bn
|
|
£bn
|
|
£bn
|
|
£bn
|
|
£bn
|
|
£bn
|
|
£bn
|
|
£bn
|
|
£bn
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposit from banks
|
|
8.2
|
|
1.4
|
|
0.4
|
|
0.2
|
|
–
|
|
0.2
|
|
0.4
|
|
–
|
|
10.8
|
|
8.3
|
Debt securities in issue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Certificates
of deposit
|
|
1.6
|
|
2.5
|
|
4.0
|
|
2.1
|
|
0.8
|
|
1.1
|
|
–
|
|
–
|
|
12.1
|
|
12.0
|
Commercial
paper
|
|
2.5
|
|
3.5
|
|
3.5
|
|
0.6
|
|
0.4
|
|
–
|
|
–
|
|
–
|
|
10.5
|
|
8.0
|
Medium-term
notes
|
|
–
|
|
2.0
|
|
0.5
|
|
1.6
|
|
1.7
|
|
4.6
|
|
15.9
|
|
20.3
|
|
46.6
|
|
45.4
|
Covered
bonds
|
|
0.7
|
|
0.3
|
|
–
|
|
2.3
|
|
–
|
|
6.8
|
|
12.3
|
|
7.0
|
|
29.4
|
|
27.1
|
Securitisation
|
|
0.1
|
|
–
|
|
–
|
|
1.1
|
|
0.4
|
|
1.3
|
|
–
|
|
1.2
|
|
4.1
|
|
4.6
|
|
|
4.9
|
|
8.3
|
|
8.0
|
|
7.7
|
|
3.3
|
|
13.8
|
|
28.2
|
|
28.5
|
|
102.7
|
|
97.1
|
Subordinated liabilities
|
|
–
|
|
0.3
|
|
–
|
|
1.3
|
|
–
|
|
1.4
|
|
2.2
|
|
12.2
|
|
17.4
|
|
17.9
|
Total wholesale
funding1
|
|
13.1
|
|
10.0
|
|
8.4
|
|
9.2
|
|
3.3
|
|
15.4
|
|
30.8
|
|
40.7
|
|
130.9
|
|
123.3
|
Of which issued by Lloyds Banking Group plc
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
0.4
|
|
11.9
|
|
9.6
|
|
21.9
|
|
20.3
|
|
|
1
|
The
Group’s definition of wholesale funding aligns with that used
by other international market participants; including interbank
deposits, debt securities and subordinated
liabilities.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
|
Sterling
|
|
US Dollar
|
|
Euro
|
|
currencies
|
|
Total
|
|
|
£bn
|
|
£bn
|
|
£bn
|
|
£bn
|
|
£bn
|
|
|
|
|
|
|
|
|
|
|
|
Securitisation
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
Medium-term notes
|
|
–
|
|
0.8
|
|
–
|
|
0.7
|
|
1.5
|
Covered bonds
|
|
2.0
|
|
–
|
|
2.2
|
|
–
|
|
4.2
|
Private placements1
|
|
–
|
|
–
|
|
0.1
|
|
–
|
|
0.1
|
Subordinated liabilities2
|
|
–
|
|
0.4
|
|
–
|
|
–
|
|
0.4
|
Total issuance
|
|
2.0
|
|
1.2
|
|
2.3
|
|
0.7
|
|
6.2
|
Of which issued by Lloyds Banking Group plc3
|
|
–
|
|
1.2
|
|
–
|
|
0.7
|
|
1.9
|
|
|
1
|
Private
placements include structured bonds and term repurchase agreements
(repos).
|
2
|
Consists
of Additional Tier 1 issuance.
|
3
|
Consists
of £1.5bn medium-term notes and £0.4bn Additional Tier
1.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 30 June
|
|
At 31 Dec
|
|
|
|
Average
|
|
Average
|
|
|
2019
|
|
2018
|
|
Change
|
|
2019
|
|
2018
|
|
|
£bn
|
|
£bn
|
|
%
|
|
£bn
|
|
£bn
|
Level 1
|
|
|
|
|
|
|
|
|
|
|
Cash and central bank reserves
|
|
52.6
|
|
48.9
|
|
8
|
|
50.0
|
|
58.1
|
High quality government/MDB/agency bonds1
|
|
76.6
|
|
78.7
|
|
(3)
|
|
77.2
|
|
66.2
|
High quality covered bonds
|
|
1.8
|
|
1.0
|
|
80
|
|
1.4
|
|
0.8
|
Total
|
|
131.0
|
|
128.6
|
|
2
|
|
128.6
|
|
125.1
|
Level 22
|
|
1.3
|
|
0.8
|
|
63
|
|
0.9
|
|
0.8
|
Total LCR eligible assets
|
|
132.3
|
|
129.4
|
|
2
|
|
129.5
|
|
125.9
|
|
|
1
|
Designated
multilateral development bank (MDB).
|
2
|
Includes
Level 2A and Level 2B.
|
|
|
|
|
|
|
|
|
|
|
|
Transitional
|
|
Fully loaded
|
||||
|
|
At 30 June
|
|
At 31 Dec
|
|
At 30 June
|
|
At 31 Dec
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
Common equity tier 1
|
|
|
|
|
|
|
|
|
Shareholders’ equity per balance sheet
|
|
43,448
|
|
43,434
|
|
43,448
|
|
43,434
|
Adjustment
to retained earnings for foreseeable dividends and share
buyback
|
|
(2,059)
|
|
(1,523)
|
|
(2,059)
|
|
(1,523)
|
Deconsolidation adjustments1
|
|
2,307
|
|
2,273
|
|
2,307
|
|
2,273
|
Adjustment
for own credit
|
|
(59)
|
|
(280)
|
|
(59)
|
|
(280)
|
Cash
flow hedging reserve
|
|
(1,738)
|
|
(1,051)
|
|
(1,738)
|
|
(1,051)
|
Other
adjustments
|
|
300
|
|
(19)
|
|
300
|
|
(19)
|
|
|
42,199
|
|
42,834
|
|
42,199
|
|
42,834
|
less: deductions from common equity tier 1
|
|
|
|
|
|
|
|
|
Goodwill and other intangible assets
|
|
(3,901)
|
|
(3,667)
|
|
(3,901)
|
|
(3,667)
|
Prudent valuation adjustment
|
|
(530)
|
|
(529)
|
|
(530)
|
|
(529)
|
Excess of expected losses over impairment provisions and value
adjustments
|
|
(30)
|
|
(27)
|
|
(30)
|
|
(27)
|
Removal of defined benefit pension surplus
|
|
(1,184)
|
|
(994)
|
|
(1,184)
|
|
(994)
|
Securitisation deductions
|
|
(190)
|
|
(191)
|
|
(190)
|
|
(191)
|
Significant investments1
|
|
(4,350)
|
|
(4,222)
|
|
(4,350)
|
|
(4,222)
|
Deferred tax assets
|
|
(3,247)
|
|
(3,037)
|
|
(3,247)
|
|
(3,037)
|
Common equity tier 1 capital
|
|
28,767
|
|
30,167
|
|
28,767
|
|
30,167
|
Additional tier 1
|
|
|
|
|
|
|
|
|
Other equity instruments
|
|
5,381
|
|
6,466
|
|
5,381
|
|
6,466
|
Preference shares and preferred securities2
|
|
4,233
|
|
4,008
|
|
–
|
|
–
|
Transitional
limit and other adjustments
|
|
(2,580)
|
|
(1,804)
|
|
–
|
|
–
|
|
|
7,034
|
|
8,670
|
|
5,381
|
|
6,466
|
less: deductions from tier 1
|
|
|
|
|
|
|
|
|
Significant investments1
|
|
(1,295)
|
|
(1,298)
|
|
–
|
|
–
|
Total tier 1 capital
|
|
34,506
|
|
37,539
|
|
34,148
|
|
36,633
|
Tier 2
|
|
|
|
|
|
|
|
|
Other subordinated liabilities2
|
|
13,576
|
|
13,648
|
|
13,576
|
|
13,648
|
Deconsolidation of instruments issued by insurance
entities1
|
|
(1,787)
|
|
(1,767)
|
|
(1,787)
|
|
(1,767)
|
Adjustments
for transitional limit and non-eligible instruments
|
|
2,374
|
|
1,504
|
|
(1,142)
|
|
(1,266)
|
Amortisation
and other adjustments
|
|
(2,996)
|
|
(2,717)
|
|
(2,996)
|
|
(2,717)
|
Eligible provisions
|
|
–
|
|
–
|
|
–
|
|
–
|
|
|
11,167
|
|
10,668
|
|
7,651
|
|
7,898
|
less: deductions from tier 2
|
|
|
|
|
|
|
|
|
Significant investments1
|
|
(965)
|
|
(973)
|
|
(2,260)
|
|
(2,271)
|
Total capital resources
|
|
44,708
|
|
47,234
|
|
39,539
|
|
42,260
|
|
|
|
|
|
|
|
|
|
Risk-weighted assets (unaudited)
|
|
206,520
|
|
206,366
|
|
206,520
|
|
206,366
|
|
|
|
|
|
|
|
|
|
Common equity tier 1 capital ratio3
|
|
13.9%
|
|
14.6%
|
|
13.9%
|
|
14.6%
|
Tier 1 capital ratio
|
|
16.7%
|
|
18.2%
|
|
16.5%
|
|
17.8%
|
Total capital ratio
|
|
21.6%
|
|
22.9%
|
|
19.1%
|
|
20.5%
|
|
|
1
|
For
regulatory capital purposes, the Group’s Insurance business
is deconsolidated and replaced by the amount of the Group’s
investment in the business. A part of this amount is deducted from
capital (shown as ‘significant investments’ in the
table above) and the remaining amount is risk-weighted, forming
part of threshold risk-weighted assets.
|
2
|
Preference
shares, preferred securities and other subordinated liabilities are
categorised as subordinated liabilities in the
balance sheet.
|
3
|
The
common equity tier 1 ratio is 14.0 per cent on a pro forma basis
reflecting the dividend paid up by the Insurance business in July
2019 in relation to its 2019 interim earnings (31 December 2018:
13.9 per cent pro forma, including the share buyback).
|
|
|
|
|
|
|
|
|
|
|
|
Common
|
|
Additional
|
|
|
|
Total
|
|
|
Equity tier 1
|
|
Tier 1
|
|
Tier 2
|
|
capital
|
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
|
|
|
|
|
|
|
|
At 31 December 2018
|
|
30,167
|
|
7,372
|
|
9,695
|
|
47,234
|
Profit attributable to ordinary shareholders1
|
|
1,843
|
|
–
|
|
–
|
|
1,843
|
Movement in foreseeable dividends2
|
|
336
|
|
–
|
|
–
|
|
336
|
Dividends paid out on ordinary shares during the year
|
|
(1,523)
|
|
–
|
|
–
|
|
(1,523)
|
Dividends received from the Insurance business1
|
|
350
|
|
–
|
|
–
|
|
350
|
Share buyback completed
|
|
(879)
|
|
–
|
|
–
|
|
(879)
|
Share buyback accrual
|
|
(871)
|
|
–
|
|
–
|
|
(871)
|
IFRS 9 transitional adjustment to retained earnings
|
|
(49)
|
|
–
|
|
–
|
|
(49)
|
Movement in treasury shares and employee share schemes
|
|
193
|
|
–
|
|
–
|
|
193
|
Pension movements:
|
|
|
|
|
|
|
|
|
Removal
of defined benefit pension surplus
|
|
(190)
|
|
–
|
|
–
|
|
(190)
|
Movement
through other comprehensive income
|
|
(129)
|
|
–
|
|
–
|
|
(129)
|
Fair value through other comprehensive income reserve
|
|
(144)
|
|
–
|
|
–
|
|
(144)
|
Prudent valuation adjustment
|
|
(1)
|
|
–
|
|
–
|
|
(1)
|
Deferred tax asset
|
|
(210)
|
|
–
|
|
–
|
|
(210)
|
Goodwill and other intangible assets
|
|
(234)
|
|
–
|
|
–
|
|
(234)
|
Excess of expected losses over impairment provisions and value
adjustments
|
|
(3)
|
|
–
|
|
–
|
|
(3)
|
Significant investments
|
|
(128)
|
|
3
|
|
8
|
|
(117)
|
Movements in subordinated debt:
|
|
|
|
|
|
|
|
|
Repurchases,
redemptions and other
|
|
–
|
|
(2,032)
|
|
499
|
|
(1,533)
|
Issuances
|
|
–
|
|
396
|
|
–
|
|
396
|
Other movements
|
|
239
|
|
–
|
|
–
|
|
239
|
At 30 June 2019
|
|
28,767
|
|
5,739
|
|
10,202
|
|
44,708
|
|
|
1
|
Under
the regulatory framework, profits made by Insurance are removed
from CET1 capital. However, when dividends are paid to the Group by
Insurance these are recognised through CET1 capital. The £350
million of dividends received from Insurance during the period
reflects their 2018 full year ordinary dividend.
|
2
|
Reflects
the accrual for foreseeable 2019 ordinary dividends (including the
interim dividend) and the reversal of the accrual for the 2018 full
year ordinary dividend which has now been paid.
|
|
|
|
|
|
|||||
|
|
Transitional
|
|||||||
|
|
At 30 June
|
|
At 31 Dec
|
|
||||
|
|
2019
|
|
2018
|
|
||||
|
|
£m
|
|
£m
|
|
||||
|
|
|
|
|
|
||||
Total capital resources (transitional basis)
|
|
44,708
|
|
47,234
|
|
||||
Ineligible AT1 and tier 2 instruments1
|
|
(768)
|
|
(613)
|
|
||||
Senior unsecured securities issued by Lloyds Banking Group
plc
|
|
22,475
|
|
20,213
|
|
||||
Total MREL2
|
|
66,415
|
|
66,834
|
|
||||
|
|
|
|
|
|
||||
Risk-weighted assets
|
|
206,520
|
|
206,366
|
|
||||
|
|
|
|
|
|
||||
MREL ratio3
|
|
32.2%
|
|
32.4%
|
|
|
|
1
|
Instruments
with less than one year to maturity or governed under non-EEA law
without a contractual bail-in clause.
|
2
|
Until
2022, externally issued regulatory capital in operating entities
can count towards the Group’s MREL to the extent that such
capital would count towards the Group's consolidated capital
resources.
|
3
|
The
MREL ratio is 32.2 per cent on a pro forma basis upon recognition
of the dividend paid up by the Insurance business in July 2019 in
relation to its 2019 interim earnings (31 December 2018: 32.6 per
cent pro forma).
|
|
|
|
|
|
|
|
At 30 June
|
|
At 31 Dec
|
|
|
2019
|
|
2018
|
|
|
£m
|
|
£m
|
|
|
|
|
|
Foundation Internal Ratings Based (IRB) Approach
|
|
56,352
|
|
60,555
|
Retail IRB Approach
|
|
62,219
|
|
59,522
|
Other IRB Approach
|
|
18,223
|
|
15,666
|
IRB Approach
|
|
136,794
|
|
135,743
|
Standardised (STA) Approach
|
|
25,582
|
|
25,757
|
Credit risk
|
|
162,376
|
|
161,500
|
Counterparty credit risk
|
|
5,688
|
|
5,718
|
Contributions to the default funds of central
counterparties
|
|
278
|
|
830
|
Credit valuation adjustment risk
|
|
673
|
|
702
|
Operational risk
|
|
25,161
|
|
25,505
|
Market risk
|
|
2,228
|
|
2,085
|
Underlying risk-weighted assets
|
|
196,404
|
|
196,340
|
Threshold risk-weighted assets1
|
|
10,116
|
|
10,026
|
Total risk-weighted assets
|
|
206,520
|
|
206,366
|
|
|
1
|
Threshold
risk-weighted assets reflect the element of significant investments
and deferred tax assets that are permitted to be risk-weighted
instead of being deducted from CET1 capital. Significant
investments primarily arise from investment in the Group’s
Insurance business.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit risk
|
|
Credit risk
|
|
Credit risk
|
|
Counterparty
|
|
Market
|
|
Operational
|
|
|
|
|
IRB
|
|
STA
|
|
total2
|
|
credit risk3
|
|
risk
|
|
risk
|
|
Total
|
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
Total risk-weighted assets as at 31 December 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
206,366
|
Less threshold risk-weighted assets1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10,026
|
Risk-weighted assets as at 31 December 2018
|
|
135,743
|
|
25,757
|
|
161,500
|
|
7,250
|
|
2,085
|
|
25,505
|
|
196,340
|
Asset size
|
|
(919)
|
|
513
|
|
(406)
|
|
(133)
|
|
(110)
|
|
–
|
|
(649)
|
Asset quality
|
|
613
|
|
(153)
|
|
460
|
|
(93)
|
|
–
|
|
–
|
|
367
|
Model updates
|
|
1,747
|
|
–
|
|
1,747
|
|
–
|
|
(117)
|
|
–
|
|
1,630
|
Methodology and policy
|
|
(412)
|
|
(525)
|
|
(937)
|
|
(276)
|
|
4
|
|
–
|
|
(1,209)
|
Acquisitions and disposals
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
Movements in risk levels (market risk only)
|
|
–
|
|
–
|
|
–
|
|
–
|
|
366
|
|
–
|
|
366
|
Foreign exchange movements
|
|
22
|
|
(10)
|
|
12
|
|
(109)
|
|
–
|
|
–
|
|
(97)
|
Other
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
(344)
|
|
(344)
|
Risk-weighted assets as at 30 June 2019
|
|
136,794
|
|
25,582
|
|
162,376
|
|
6,639
|
|
2,228
|
|
25,161
|
|
196,404
|
Threshold risk-weighted assets1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10,116
|
Total risk-weighted assets as at 30 June 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
206,520
|
|
|
1
|
Threshold
risk-weighted assets reflect the element of significant investments
and deferred tax assets that are permitted to be risk- weighted
instead of being deducted from CET1 capital. Significant
investments primarily arise from investments in the Group’s
Insurance business.
|
2
|
Credit
risk includes securitisation risk-weighted assets.
|
3
|
Counterparty
credit risk includes movements in contributions to the default fund
of central counterparties and movements in credit valuation
adjustment risk.
|
|
|
|
|
|
|
|
Fully loaded
|
||
|
|
At 30 June
|
|
At 31 Dec
|
|
|
2019
|
|
2018
|
|
|
£m
|
|
£m
|
Total tier 1 capital for leverage ratio
|
|
|
|
|
Common equity tier 1 capital
|
|
28,767
|
|
30,167
|
Additional tier 1 capital
|
|
5,381
|
|
6,466
|
Total tier 1 capital
|
|
34,148
|
|
36,633
|
|
|
|
|
|
Exposure measure
|
|
|
|
|
Statutory balance sheet assets
|
|
|
|
|
Derivative financial instruments
|
|
26,148
|
|
23,595
|
Securities financing transactions
|
|
72,508
|
|
69,301
|
Loans and advances and other assets
|
|
723,592
|
|
704,702
|
Total assets
|
|
822,248
|
|
797,598
|
|
|
|
|
|
Qualifying central bank claims
|
|
(53,288)
|
|
(50,105)
|
|
|
|
|
|
Deconsolidation
adjustments1
|
|
|
|
|
Derivative financial instruments
|
|
(1,475)
|
|
(1,376)
|
Securities financing transactions
|
|
(452)
|
|
(487)
|
Loans and advances and other assets
|
|
(141,893)
|
|
(130,048)
|
Total deconsolidation adjustments
|
|
(143,820)
|
|
(131,911)
|
|
|
|
|
|
Derivatives adjustments
|
|
|
|
|
Adjustments for regulatory netting
|
|
(9,152)
|
|
(8,828)
|
Adjustments for cash collateral
|
|
(13,020)
|
|
(10,536)
|
Net written credit protection
|
|
485
|
|
539
|
Regulatory potential future exposure
|
|
18,544
|
|
18,250
|
Total derivatives adjustments
|
|
(3,143)
|
|
(575)
|
|
|
|
|
|
Securities financing transactions adjustments
|
|
(2,045)
|
|
40
|
Off-balance sheet items
|
|
56,622
|
|
56,393
|
Regulatory deductions and other adjustments
|
|
(8,367)
|
|
(8,163)
|
|
|
|
|
|
Total exposure
measure2
|
|
668,207
|
|
663,277
|
Average exposure
measure3
|
|
671,502
|
|
669,896
|
|
|
|
|
|
UK Leverage ratio2,5
|
|
5.1%
|
|
5.5%
|
Average UK leverage
ratio3
|
|
5.1%
|
|
5.5%
|
|
|
|
|
|
CRD IV exposure
measure4
|
|
721,495
|
|
713,382
|
CRD IV leverage ratio4
|
|
4.7%
|
|
5.1%
|
1
|
Deconsolidation
adjustments relate to the deconsolidation of certain Group entities
that fall outside the scope of the Group’s regulatory capital
consolidation, being primarily the Group’s Insurance
business.
|
2
|
Calculated
in accordance with the UK Leverage Ratio Framework which requires
qualifying central bank claims to be excluded from the leverage
exposure measure.
|
3
|
The
average UK leverage ratio is based on the average of the month end
tier 1 capital position and average exposure measure over the
quarter (1 April 2019 to 30 June 2019). The average of 5.1 per
cent compares to 5.3 per cent at the start and 5.1 per cent at the
end of the quarter.
|
4
|
Calculated
in accordance with CRD IV rules which include central bank claims
within the leverage exposure measure.
|
5
|
The UK
leverage ratio is 5.1 per cent on a pro forma basis upon
recognition of the dividend paid up by the Insurance business in
July 2019 in relation to its 2019 interim earnings (31 December
2018: 5.6 per cent pro forma).
|
|
|
|
|
|
|
||||
|
|
IFRS 9 full impact
|
|
||||||
|
|
At 30 June
|
|
At 1 Jan
|
|||||
|
|
2019
|
|
2018
|
|||||
|
|
|
|
|
|||||
Common equity tier 1 (£m)
|
|
28,272
|
|
29,592
|
|||||
Transitional tier 1 (£m)
|
|
34,011
|
|
36,964
|
|||||
Transitional total capital (£m)
|
|
44,688
|
|
47,195
|
|||||
Total risk-weighted assets (£m)
|
|
206,789
|
|
206,614
|
|||||
Common equity tier 1 ratio (%)
|
|
13.7%
|
|
14.3%
|
|||||
Transitional tier 1 ratio (%)
|
|
16.4%
|
|
17.9%
|
|||||
Transitional total capital ratio (%)
|
|
21.6%
|
|
22.8%
|
|||||
UK leverage ratio exposure measure (£m)
|
|
667,712
|
|
663,182
|
|||||
UK leverage ratio (%)
|
|
5.0%
|
|
5.4%
|