07/29/2021 | Press release | Distributed by Public on 07/29/2021 08:03
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 2021.
Underlying basis: In addition to the statutory basis of presentation, the results are also presented on an underlying basis. The Group Executive Committee, which is the chief operating decision maker for the Group, reviews the Group's results on an underlying basis in order to assess performance and allocate resources. Management uses underlying profit before tax, an alternative performance measure, as a measure of performance and believes that it provides important information for investors because it allows for a comparable representation of the Group's performance by removing the impact of certain items including volatility caused by market movements outside the control of management.
In arriving at underlying profit, statutory profit before tax is adjusted for the items below, to allow a comparison of the Group's underlying performance:
● Restructuring, including severance-related costs, property transformation, technology research and development, regulatory programmes and merger, acquisition and integration costs
● 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 business, the unwind of acquisition-related fair value adjustments and the amortisation of purchased intangible assets
● Payment protection insurance provisions
The analysis of lending and expected credit loss (ECL) allowances is presented on an underlying basis and reconciled to figures prepared on a statutory basis. On a statutory basis, purchased or originated credit-impaired (POCI) assets include a fixed pool of mortgages that were purchased as part of the HBOS acquisition at a deep discount to face value reflecting credit losses incurred from the point of origination to the date of acquisition. Over time, these POCI assets will run off as the loans redeem, pay down or losses crystallise. The underlying basis assumes that the lending assets acquired as part of a business combination were originated by the Group and are classified as either Stage 1, 2 or 3 according to the change in credit risk over the period since origination. Underlying ECL allowances have been calculated accordingly. The Group uses the underlying basis to monitor the creditworthiness of the lending portfolio and related ECL allowances.
Commentary within the results for the full year on page 1 and within the Interim Group Chief Executive's statement on pages 7 to 9 is given on an underlying basis.
Unless otherwise stated, income statement commentaries throughout this document compare the six months ended 30 June 2021 to the six months ended 30 June 2020, and the balance sheet analysis compares the Group balance sheet as at 30 June 2021 to the Group balance sheet as at 31 December 2020.
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. These measures are labelled with a '†' throughout this document. Further information on these measures is set out on page 149.
|
||
Page
|
|
Results for the half-year
|
1
|
Income statement - underlying basis
|
3
|
Key balance sheet metrics
|
3
|
Quarterly information
|
5
|
Balance sheet analysis
|
6
|
Group results - statutory basis
|
7
|
Interim Group Chief Executive's statement
|
9
|
Summary of Group results
|
13
|
Segmental analysis - underlying basis
|
23
|
Divisional results
|
|
Retail
|
26
|
Commercial Banking
|
28
|
Insurance and Wealth
|
30
|
Central items
|
34
|
Other financial information
|
|
Reconciliation between statutory and underlying basis financial information
|
35
|
Banking net interest margin and average interest-earning assets
|
37
|
Volatility arising in the insurance business
|
38
|
Changes in Insurance assumptions
|
38
|
Tangible net assets per share
|
40
|
Return on tangible equity
|
40
|
Support measures
|
41
|
Risk management
|
|
Principal risks and uncertainties
|
42
|
Credit risk portfolio
|
44
|
Funding and liquidity management
|
68
|
Capital management
|
73
|
Statutory information
|
|
Condensed consolidated half-year financial statements (unaudited)
|
85
|
Consolidated income statement
|
86
|
Consolidated statement of comprehensive income
|
87
|
Consolidated balance sheet
|
88
|
Consolidated statement of changes in equity
|
90
|
Consolidated cash flow statement
|
93
|
Notes to the condensed consolidated half-year financial statements
|
94
|
Statement of directors' responsibilities
|
144
|
Independent review report to Lloyds Banking Group plc
|
145
|
Forward looking statements
|
147
|
Summary of alternative performance measures
|
149
|
Contacts
|
150
|
Half-year to 30 June 2021
|
Half-year
to 30 June 2020
|
Change
|
Half-year
to 31 Dec
2020
|
Change
|
||||||||
£m
|
£m
|
%
|
£m
|
%
|
||||||||
Net interest income
|
5,418
|
5,478
|
(1)
|
5,295
|
2
|
|||||||
Other income
|
2,417
|
2,461
|
(2)
|
2,054
|
18
|
|||||||
Operating lease depreciation
|
(271)
|
(526)
|
48
|
(358)
|
24
|
|||||||
Net income
|
7,564
|
7,413
|
2
|
6,991
|
8
|
|||||||
Operating costs
|
(3,730)
|
(3,699)
|
(1)
|
(3,886)
|
4
|
|||||||
Remediation
|
(425)
|
(177)
|
(202)
|
|||||||||
Total costs
|
(4,155)
|
(3,876)
|
(7)
|
(4,088)
|
(2)
|
|||||||
Underlying profit before impairment
|
3,409
|
3,537
|
(4)
|
2,903
|
17
|
|||||||
Impairment
|
656
|
(3,818)
|
(429)
|
|||||||||
Underlying profit (loss)
|
4,065
|
(281)
|
2,474
|
64
|
||||||||
Restructuring
|
(255)
|
(133)
|
(92)
|
(388)
|
34
|
|||||||
Volatility and other items
|
95
|
(188)
|
(173)
|
|||||||||
Payment protection insurance provision
|
-
|
-
|
(85)
|
|||||||||
Statutory profit (loss) before tax
|
3,905
|
(602)
|
1,828
|
|||||||||
Tax (expense) credit
|
(40)
|
621
|
(460)
|
91
|
||||||||
Statutory profit after tax
|
3,865
|
19
|
1,368
|
|||||||||
Earnings (loss) per share
|
5.1p
|
(0.3)p
|
1.5p
|
|||||||||
Dividends per share - ordinary
|
0.67p
|
-
|
0.57p
|
18
|
||||||||
Banking net interest margin†
|
2.50%
|
2.59%
|
(9)bp
|
2.44%
|
6bp
|
|||||||
Average interest-earning banking assets†
|
£441bn
|
£433bn
|
2
|
£437bn
|
1
|
|||||||
Cost:income ratio†
|
54.9%
|
52.3%
|
2.6pp
|
58.5%
|
(3.6)pp
|
|||||||
Asset quality ratio†
|
(0.30)%
|
1.73%
|
(203)bp
|
0.19%
|
(49)bp
|
|||||||
Return on tangible equity1,†
|
19.2%
|
(1.3)%
|
20.5pp
|
5.9%
|
13.3pp
|
At 30 June 2021
|
At 30 June 2020
|
Change
%
|
At 31 Dec 2020
|
Change
%
|
||||||||
Loans and advances to customers2
|
£448bn
|
£440bn
|
2
|
£440bn
|
2
|
|||||||
Customer deposits3
|
£474bn
|
£441bn
|
8
|
£451bn
|
5
|
|||||||
Loan to deposit ratio†
|
94%
|
100%
|
(6)pp
|
98%
|
(4)pp
|
|||||||
CET1 ratio
|
16.7%
|
14.6%
|
2.1pp
|
16.2%
|
0.5pp
|
|||||||
CET1 ratio pre IFRS 9 transitional relief and software4
|
15.5%
|
13.4%
|
2.1pp
|
14.5%
|
1.0pp
|
|||||||
Transitional MREL ratio
|
36.3%
|
36.8%
|
(0.5)pp
|
36.4%
|
(0.1)pp
|
|||||||
UK leverage ratio
|
5.8%
|
5.4%
|
0.4pp
|
5.8%
|
-
|
|||||||
Risk-weighted assets
|
£201bn
|
£207bn
|
(3)
|
£203bn
|
(1)
|
|||||||
Tangible net assets per share†
|
55.6p
|
51.6p
|
4.0p
|
52.3p
|
3.3p
|
Quarterended 30 June 2021
|
Quarterended31 Mar 2021
|
Quarterended31 Dec 2020
|
Quarterended30 Sept 2020
|
Quarterended30 June 2020
|
Quarterended31 Mar 2020
|
||||||||||||
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
||||||||||||
Net interest income
|
2,741
|
2,677
|
2,677
|
2,618
|
2,528
|
2,950
|
|||||||||||
Other income
|
1,282
|
1,135
|
1,066
|
988
|
1,235
|
1,226
|
|||||||||||
Operating lease depreciation
|
(123)
|
(148)
|
(150)
|
(208)
|
(302)
|
(224)
|
|||||||||||
Net income
|
3,900
|
3,664
|
3,593
|
3,398
|
3,461
|
3,952
|
|||||||||||
Operating costs
|
(1,879)
|
(1,851)
|
(2,028)
|
(1,858)
|
(1,822)
|
(1,877)
|
|||||||||||
Remediation
|
(360)
|
(65)
|
(125)
|
(77)
|
(90)
|
(87)
|
|||||||||||
Total costs
|
(2,239)
|
(1,916)
|
(2,153)
|
(1,935)
|
(1,912)
|
(1,964)
|
|||||||||||
Underlying profit before impairment
|
1,661
|
1,748
|
1,440
|
1,463
|
1,549
|
1,988
|
|||||||||||
Impairment
|
333
|
323
|
(128)
|
(301)
|
(2,388)
|
(1,430)
|
|||||||||||
Underlying profit (loss)
|
1,994
|
2,071
|
1,312
|
1,162
|
(839)
|
558
|
|||||||||||
Restructuring
|
(82)
|
(173)
|
(233)
|
(155)
|
(70)
|
(63)
|
|||||||||||
Volatility and other items
|
95
|
-
|
(202)
|
29
|
233
|
(421)
|
|||||||||||
Payment protection insurance provision
|
-
|
-
|
(85)
|
-
|
-
|
-
|
|||||||||||
Statutory profit (loss) before tax
|
2,007
|
1,898
|
792
|
1,036
|
(676)
|
74
|
|||||||||||
Tax credit (expense)
|
461
|
(501)
|
(112)
|
(348)
|
215
|
406
|
|||||||||||
Statutory profit (loss) after tax
|
2,468
|
1,397
|
680
|
688
|
(461)
|
480
|
|||||||||||
Banking net interest margin†
|
2.51%
|
2.49%
|
2.46%
|
2.42%
|
2.40%
|
2.79%
|
|||||||||||
Average interest-earning banking assets†
|
£442bn
|
£439bn
|
£437bn
|
£436bn
|
£435bn
|
£432bn
|
|||||||||||
Cost:income ratio†
|
57.4%
|
52.3%
|
59.9%
|
56.9%
|
55.2%
|
49.7%
|
|||||||||||
Asset quality ratio†
|
(0.30)%
|
(0.29)%
|
0.11%
|
0.27%
|
2.16%
|
1.30%
|
|||||||||||
Return on tangible equity1,†
|
24.4%
|
13.9%
|
5.9%
|
6.0%
|
(6.1%)
|
3.7%
|
|||||||||||
Loans and advances to customers2
|
£448bn
|
£444bn
|
£440bn
|
£439bn
|
£440bn
|
£443bn
|
|||||||||||
Customer deposits3
|
£474bn
|
£462bn
|
£451bn
|
£447bn
|
£441bn
|
£428bn
|
|||||||||||
Loan to deposit ratio†
|
94%
|
96%
|
98%
|
98%
|
100%
|
103%
|
|||||||||||
Risk-weighted assets
|
£201bn
|
£199bn
|
£203bn
|
£205bn
|
£207bn
|
£209bn
|
|||||||||||
Tangible net assets per share†
|
55.6p
|
52.4p
|
52.3p
|
52.2p
|
51.6p
|
57.4p
|
At 30 June 2021
|
At 31 Mar 2021
|
Change
|
At 30 June 2020
|
Change
|
At 31 Dec 2020
|
Change
|
|||||||
£bn
|
£bn
|
%
|
£bn
|
%
|
£bn
|
%
|
|||||||
Loans and advances to customers
|
|||||||||||||
Open mortgage book
|
289.9
|
283.3
|
2
|
267.1
|
9
|
277.3
|
5
|
||||||
Closed mortgage book
|
15.3
|
15.9
|
(4)
|
17.5
|
(13)
|
16.5
|
(7)
|
||||||
Credit cards
|
13.6
|
13.5
|
1
|
15.2
|
(11)
|
14.3
|
(5)
|
||||||
UK Retail unsecured loans
|
8.0
|
7.8
|
3
|
8.2
|
(2)
|
8.0
|
-
|
||||||
UK Motor Finance
|
14.4
|
14.9
|
(3)
|
15.3
|
(6)
|
14.7
|
(2)
|
||||||
Overdrafts
|
1.0
|
0.9
|
11
|
1.0
|
-
|
0.9
|
11
|
||||||
Retail other1
|
10.5
|
10.3
|
2
|
9.7
|
8
|
10.4
|
1
|
||||||
SME2
|
40.4
|
41.1
|
(2)
|
38.4
|
5
|
40.6
|
-
|
||||||
Mid Corporates
|
3.8
|
4.0
|
(5)
|
4.6
|
(17)
|
4.1
|
(7)
|
||||||
Corporate and Institutional
|
44.9
|
45.6
|
(2)
|
55.0
|
(18)
|
46.0
|
(2)
|
||||||
Commercial Banking other
|
3.9
|
4.1
|
(5)
|
5.0
|
(22)
|
4.3
|
(9)
|
||||||
Wealth
|
1.0
|
1.0
|
-
|
0.9
|
11
|
0.9
|
11
|
||||||
Central items
|
1.0
|
1.1
|
(9)
|
2.5
|
(60)
|
2.2
|
(55)
|
||||||
Loans and advances to customers3
|
447.7
|
443.5
|
1
|
440.4
|
2
|
440.2
|
2
|
||||||
Customer deposits
|
|||||||||||||
Retail current accounts
|
107.3
|
103.0
|
4
|
87.5
|
23
|
97.4
|
10
|
||||||
Commercial current accounts2,4
|
49.5
|
47.2
|
5
|
44.2
|
12
|
47.6
|
4
|
||||||
Retail relationship savings accounts
|
161.3
|
158.2
|
2
|
148.5
|
9
|
154.1
|
5
|
||||||
Retail tactical savings accounts
|
16.4
|
13.8
|
19
|
12.7
|
29
|
14.0
|
17
|
||||||
Commercial deposits2,5
|
124.5
|
125.5
|
(1)
|
133.8
|
(7)
|
122.7
|
1
|
||||||
Wealth
|
14.8
|
14.1
|
5
|
13.5
|
10
|
14.1
|
5
|
||||||
Central items
|
0.6
|
0.6
|
-
|
0.9
|
(33)
|
0.8
|
(25)
|
||||||
Total customer deposits6
|
474.4
|
462.4
|
3
|
441.1
|
8
|
450.7
|
5
|
||||||
Total assets
|
879.7
|
869.5
|
1
|
873.0
|
1
|
871.3
|
1
|
||||||
Total liabilities
|
827.8
|
820.0
|
1
|
824.1
|
-
|
821.9
|
1
|
||||||
Ordinary shareholders' equity
|
45.8
|
43.4
|
6
|
42.8
|
7
|
43.3
|
6
|
||||||
Other equity instruments
|
5.9
|
5.9
|
-
|
5.9
|
-
|
5.9
|
-
|
||||||
Non-controlling interests
|
0.2
|
0.2
|
-
|
0.2
|
-
|
0.2
|
-
|
||||||
Total equity
|
51.9
|
49.5
|
5
|
48.9
|
6
|
49.4
|
5
|
||||||
Ordinary shares in issue, excluding own shares
|
70,956m
|
70,936m
|
-
|
70,735m
|
-
|
70,812m
|
-
|
Half-year
to 30 June
2021
|
Half-year
to 30 June
2020
|
Change
|
Half-year
to 31 Dec
2020
|
Change
|
||||||||
£m
|
£m
|
%
|
£m
|
%
|
||||||||
Net interest income
|
4,373
|
6,556
|
(33)
|
4,193
|
4
|
|||||||
Other income
|
15,195
|
316
|
18,102
|
(16)
|
||||||||
Total income
|
19,568
|
6,872
|
22,295
|
(12)
|
||||||||
Insurance claims
|
(11,489)
|
1,023
|
(15,064)
|
(24)
|
||||||||
Total income, net of insurance claims
|
8,079
|
7,895
|
2
|
7,231
|
12
|
|||||||
Operating expenses
|
(4,897)
|
(4,668)
|
(5)
|
(5,077)
|
4
|
|||||||
Impairment
|
723
|
(3,829)
|
(326)
|
|||||||||
Profit (loss) before tax
|
3,905
|
(602)
|
1,828
|
|||||||||
Tax (expense) credit
|
(40)
|
621
|
(460)
|
91
|
||||||||
Profit for the period
|
3,865
|
19
|
1,368
|
At 30 June
2021
|
At 30 June
2020
|
Change
|
At 31 Dec
2020
|
Change
|
||||||||
£m
|
£m
|
%
|
£m
|
%
|
||||||||
Assets
|
||||||||||||
Cash and balances at central banks
|
78,966
|
78,139
|
1
|
73,257
|
8
|
|||||||
Financial assets at fair value through profit or loss
|
177,589
|
157,113
|
13
|
171,626
|
3
|
|||||||
Derivative financial instruments
|
22,193
|
32,978
|
(33)
|
29,613
|
(25)
|
|||||||
Financial assets at amortised cost
|
516,175
|
518,314
|
-
|
514,994
|
-
|
|||||||
Financial assets at fair value through other comprehensive income
|
26,213
|
27,211
|
(4)
|
27,603
|
(5)
|
|||||||
Other assets
|
58,551
|
59,239
|
(1)
|
54,176
|
8
|
|||||||
Total assets
|
879,687
|
872,994
|
1
|
871,269
|
1
|
|||||||
Liabilities
|
||||||||||||
Deposits from banks
|
20,655
|
34,124
|
(39)
|
31,465
|
(34)
|
|||||||
Customer deposits
|
482,349
|
453,446
|
6
|
460,068
|
5
|
|||||||
Financial liabilities at fair value through profit or loss
|
21,054
|
21,474
|
(2)
|
22,646
|
(7)
|
|||||||
Derivative financial instruments
|
17,951
|
28,631
|
(37)
|
27,313
|
(34)
|
|||||||
Debt securities in issue
|
81,268
|
99,931
|
(19)
|
87,397
|
(7)
|
|||||||
Liabilities arising from insurance and investment contracts
|
162,399
|
143,052
|
14
|
154,512
|
5
|
|||||||
Subordinated liabilities
|
13,527
|
17,717
|
(24)
|
14,261
|
(5)
|
|||||||
Other liabilities
|
28,598
|
25,757
|
11
|
24,194
|
18
|
|||||||
Total liabilities
|
827,801
|
824,132
|
-
|
821,856
|
1
|
|||||||
Total equity
|
51,886
|
48,862
|
6
|
49,413
|
5
|
|||||||
Total equity and liabilities
|
879,687
|
872,994
|
1
|
871,269
|
1
|
Half-year to 30 June 2021
|
Half-year
to 30 June 2020
|
Change
|
Half-year
to 31 Dec
2020
|
Change
|
||||||||
£m
|
£m
|
%
|
£m
|
%
|
||||||||
Net interest income
|
5,418
|
5,478
|
(1)
|
5,295
|
2
|
|||||||
Other income
|
2,417
|
2,461
|
(2)
|
2,054
|
18
|
|||||||
Operating lease depreciation
|
(271)
|
(526)
|
48
|
(358)
|
24
|
|||||||
Net income
|
7,564
|
7,413
|
2
|
6,991
|
8
|
|||||||
Banking net interest margin†
|
2.50%
|
2.59%
|
(9)bp
|
2.44%
|
6bp
|
|||||||
Average interest-earning banking assets†
|
£440.8bn
|
£433.2bn
|
2
|
£436.6bn
|
1
|
Half-year to 30 June 2021
|
Half-yearto 30 June 2020
|
Change
|
Half-yearto 31 Dec2020
|
Change
|
||||||||
£m
|
£m
|
%
|
£m
|
%
|
||||||||
Operating costs
|
3,730
|
3,699
|
(1)
|
3,886
|
4
|
|||||||
Remediation
|
425
|
177
|
202
|
|||||||||
Total costs
|
4,155
|
3,876
|
(7)
|
4,088
|
(2)
|
|||||||
Cost:income ratio†
|
54.9%
|
52.3%
|
2.6pp
|
58.5%
|
(3.6)pp
|
Half-year to 30 June 2021
|
Half-yearto 30 June 2020
|
Change
|
Half-year to 31 Dec 2020
|
Change
|
||||||||
£m
|
£m
|
%
|
£m
|
%
|
||||||||
Charges pre-updated multiple economic scenarios1
|
||||||||||||
Retail
|
527
|
578
|
9
|
781
|
33
|
|||||||
Commercial Banking
|
(272)
|
206
|
46
|
|||||||||
Other
|
(3)
|
4
|
(5)
|
40
|
||||||||
252
|
788
|
68
|
822
|
69
|
||||||||
Coronavirus impacted restructuring cases2
|
(71)
|
432
|
(29)
|
|||||||||
Updated economic outlook:
|
||||||||||||
Retail
|
(544)
|
1,517
|
(492)
|
(11)
|
||||||||
Commercial Banking
|
(293)
|
881
|
(72)
|
|||||||||
Other
|
-
|
200
|
200
|
|||||||||
(837)
|
2,598
|
(364)
|
||||||||||
Impairment (credit) charge
|
(656)
|
3,818
|
429
|
|||||||||
Asset quality ratio†
|
(0.30)%
|
1.73%
|
(203)bp
|
0.19%
|
(49bp)
|
At 30 June 20211
|
At 31 Dec 20201
|
Change
%
|
|||
£m
|
£m
|
||||
Stage 2 gross loans and advances to customers
|
54,129
|
60,514
|
(11)
|
||
Stage 2 loans and advances to customers as % of total
|
10.7%
|
12.0%
|
(1.3)pp
|
||
Stage 2 ECL allowances2
|
2,081
|
2,727
|
(24)
|
||
Stage 2 ECL allowances2 as % of Stage 2 drawn balances
|
3.8%
|
4.5%
|
(0.7)pp
|
||
Stage 3 gross loans and advances to customers
|
8,616
|
9,089
|
(5)
|
||
Stage 3 loans and advances to customers as a % of total
|
1.7%
|
1.8%
|
(0.1)pp
|
||
Stage 3 ECL allowances2
|
2,108
|
2,508
|
(16)
|
||
Stage 3 ECL allowances2 as % of Stage 3 drawn balances3
|
25.6%
|
28.6%
|
(3.0)pp
|
||
Total loans and advances to customers4
|
505,496
|
505,129
|
-
|
||
Total ECL allowance on loans and advances to customers2
|
5,555
|
6,832
|
(19)
|
||
Total ECL allowances on loans and advances to customers2 as % of drawn balances3
|
1.1%
|
1.4%
|
(0.3)pp
|
Half-year to 30 June 2021
|
Half-year
to 30 June 2020
|
Change
|
Half-year
to 31 Dec
2020
|
Change
|
||||||||
£m
|
£m
|
%
|
£m
|
%
|
||||||||
Statutory profit (loss) before tax
|
3,905
|
(602)
|
1,828
|
|||||||||
Adjustments:
|
||||||||||||
Restructuring
|
||||||||||||
Severance costs
|
(69)
|
(28)
|
(128)
|
46
|
||||||||
Property transformation
|
(42)
|
(37)
|
(14)
|
(109)
|
61
|
|||||||
Technology research and development
|
(81)
|
(19)
|
(42)
|
(93)
|
||||||||
Regulatory programmes
|
(32)
|
(19)
|
(68)
|
(23)
|
(39)
|
|||||||
Mergers and acquisitions, integration and other restructuring costs
|
(31)
|
(30)
|
(3)
|
(86)
|
64
|
|||||||
(255)
|
(133)
|
(92)
|
(388)
|
34
|
||||||||
Volatility and other items
|
||||||||||||
Market volatility and asset sales
|
239
|
(43)
|
(16)
|
|||||||||
Amortisation of purchased intangibles
|
(35)
|
(34)
|
(3)
|
(35)
|
||||||||
Fair value unwind
|
(109)
|
(111)
|
2
|
(122)
|
11
|
|||||||
95
|
(188)
|
(173)
|
||||||||||
Payment protection insurance provision
|
-
|
-
|
(85)
|
|||||||||
Total adjustments
|
(160)
|
(321)
|
50
|
(646)
|
75
|
|||||||
Underlying profit (loss)†
|
4,065
|
(281)
|
2,474
|
64
|
||||||||
Earnings (loss) per share
|
5.1p
|
(0.3)p
|
1.5p
|
|||||||||
Return on tangible equity1,†
|
19.2%
|
(1.3)%
|
20.5pp
|
5.9%
|
13.3pp
|
At 30 June 2021
|
At 30 June 2020
|
Change%
|
At 31 Dec2020
|
Change%
|
|||||
Loans and advances to customers1
|
£448bn
|
£440bn
|
2
|
£440bn
|
2
|
||||
Customer deposits2
|
£474bn
|
£441bn
|
8
|
£451bn
|
5
|
||||
Loan to deposit ratio†
|
94%
|
100%
|
(6)pp
|
98%
|
(4)pp
|
||||
Wholesale funding
|
£103bn
|
£125bn
|
(17)
|
£109bn
|
(6)
|
||||
Wholesale funding <1 year maturity
|
£34bn
|
£40bn
|
(16)
|
£34bn
|
(2)
|
||||
Of which money-market funding <1 year maturity3
|
£21bn
|
£26bn
|
(17)
|
£22bn
|
-
|
||||
Liquidity coverage ratio - eligible assets4
|
£139bn
|
£138bn
|
1
|
£142bn
|
(2)
|
||||
Liquidity coverage ratio5
|
131%
|
140%
|
(9)pp
|
136%
|
(5)pp
|
At 30 June 2021
|
At 30 June 2020
|
Change
%
|
At 31 Dec2020
|
Change
%
|
|||||
CET1 ratio
|
16.7%
|
14.6%
|
2.1pp
|
16.2%
|
0.5pp
|
||||
CET1 ratio pre IFRS 9 transitional relief and software1
|
15.5%
|
13.4%
|
2.1pp
|
14.5%
|
1.0pp
|
||||
Transitional total capital ratio
|
23.1%
|
22.3%
|
0.8pp
|
23.3%
|
(0.2)pp
|
||||
Transitional MREL ratio
|
36.3%
|
36.8%
|
(0.5)pp
|
36.4%
|
(0.1)pp
|
||||
UK leverage ratio
|
5.8%
|
5.4%
|
0.4pp
|
5.8%
|
-
|
||||
Risk-weighted assets
|
£201bn
|
£207bn
|
(3)
|
£203bn
|
(1)
|
||||
Ordinary shareholders' equity
|
£46bn
|
£43bn
|
7
|
£43bn
|
6
|
||||
Tangible net assets per share†
|
55.6p
|
51.6p
|
4.0p
|
52.3p
|
3.3p
|
||||
Capital movements
|
bps
|
|
Banking build (pre impairment credit)
|
115
|
|
Impairment credit net of IFRS 9 transitional relief release
|
(6)
|
|
Underlying risk-weighted assets
|
16
|
|
Pension contributions and other movements
|
(32)
|
|
Capital build
|
93
|
|
Revised software rules1
|
(6)
|
|
Ordinary dividend accrual
|
(37)
|
|
Net movement in CET1 ratio
|
50
|
Half-year to 30 June 2021
|
Retail
|
Commercial
Banking
|
Insurance
and Wealth
|
Central
items
|
Group
|
|||||||||
£m
|
£m
|
£m
|
£m
|
£m
|
||||||||||
Net interest income
|
4,218
|
1,153
|
36
|
11
|
5,418
|
|||||||||
Other income
|
812
|
677
|
660
|
268
|
2,417
|
|||||||||
Operating lease depreciation
|
(263)
|
(8)
|
-
|
-
|
(271)
|
|||||||||
Net income
|
4,767
|
1,822
|
696
|
279
|
7,564
|
|||||||||
Operating costs
|
(2,296)
|
(901)
|
(493)
|
(40)
|
(3,730)
|
|||||||||
Remediation
|
(153)
|
(169)
|
(116)
|
13
|
(425)
|
|||||||||
Total costs
|
(2,449)
|
(1,070)
|
(609)
|
(27)
|
(4,155)
|
|||||||||
Underlying profit before impairment
|
2,318
|
752
|
87
|
252
|
3,409
|
|||||||||
Impairment
|
17
|
636
|
2
|
1
|
656
|
|||||||||
Underlying profit
|
2,335
|
1,388
|
89
|
253
|
4,065
|
|||||||||
Banking net interest margin†
|
2.45%
|
2.96%
|
2.50%
|
|||||||||||
Average interest-earning banking assets†
|
£358.3bn
|
£81.6bn
|
£0.9bn
|
-
|
£440.8bn
|
|||||||||
Asset quality ratio†
|
(0.01)%
|
(1.48)%
|
(0.30)%
|
|||||||||||
Return on risk-weighted assets†
|
4.75%
|
3.82%
|
4.08%
|
|||||||||||
Loans and advances to customers1
|
£361.5bn
|
£84.2bn
|
£1.0bn
|
£1.0bn
|
£447.7bn
|
|||||||||
Customer deposits2
|
£309.8bn
|
£149.2bn
|
£14.8bn
|
£0.6bn
|
£474.4bn
|
|||||||||
Risk-weighted assets
|
£100.0bn
|
£72.7bn
|
£1.4bn
|
£26.8bn
|
£200.9bn
|
Half-year to 30 June 2020
|
Retail
|
Commercial
Banking
|
Insurance
and Wealth
|
Central
items
|
Group
|
|||||||||
£m
|
£m
|
£m
|
£m
|
£m
|
||||||||||
Net interest income
|
4,233
|
1,222
|
14
|
9
|
5,478
|
|||||||||
Other income
|
919
|
658
|
853
|
31
|
2,461
|
|||||||||
Operating lease depreciation
|
(518)
|
(8)
|
-
|
-
|
(526)
|
|||||||||
Net income
|
4,634
|
1,872
|
867
|
40
|
7,413
|
|||||||||
Operating costs
|
(2,277)
|
(906)
|
(459)
|
(57)
|
(3,699)
|
|||||||||
Remediation
|
(50)
|
(115)
|
(19)
|
7
|
(177)
|
|||||||||
Total costs
|
(2,327)
|
(1,021)
|
(478)
|
(50)
|
(3,876)
|
|||||||||
Underlying profit before impairment
|
2,307
|
851
|
389
|
(10)
|
3,537
|
|||||||||
Impairment
|
(2,095)
|
(1,519)
|
(10)
|
(194)
|
(3,818)
|
|||||||||
Underlying profit (loss)
|
212
|
(668)
|
379
|
(204)
|
(281)
|
|||||||||
Banking net interest margin†
|
2.59%
|
2.92%
|
2.59%
|
|||||||||||
Average interest-earning banking assets†
|
£342.3bn
|
£90.0bn
|
£0.9bn
|
-
|
£433.2bn
|
|||||||||
Asset quality ratio†
|
1.23%
|
3.12%
|
1.73%
|
|||||||||||
Return on risk-weighted assets
|
0.43%
|
(1.70)%
|
(0.27)%
|
|||||||||||
Loans and advances to customers1
|
£341.0bn
|
£96.0bn
|
£0.9bn
|
£2.5bn
|
£440.4bn
|
|||||||||
Customer deposits2
|
£272.2bn
|
£154.5bn
|
£13.5bn
|
£0.9bn
|
£441.1bn
|
|||||||||
Risk-weighted assets
|
£99.4bn
|
£78.4bn
|
£1.3bn
|
£28.0bn
|
£207.1bn
|
Half-year to 31 December 2020
|
Retail
|
Commercial
Banking
|
Insurance
and Wealth
|
Central
items
|
Group
|
|||||||||
£m
|
£m
|
£m
|
£m
|
£m
|
||||||||||
Net interest income
|
4,151
|
1,135
|
35
|
(26)
|
5,295
|
|||||||||
Other income
|
814
|
634
|
397
|
209
|
2,054
|
|||||||||
Operating lease depreciation
|
(338)
|
(20)
|
-
|
-
|
(358)
|
|||||||||
Net income
|
4,627
|
1,749
|
432
|
183
|
6,991
|
|||||||||
Operating costs
|
(2,484)
|
(945)
|
(443)
|
(14)
|
(3,886)
|
|||||||||
Remediation
|
(75)
|
(95)
|
(31)
|
(1)
|
(202)
|
|||||||||
Total costs
|
(2,559)
|
(1,040)
|
(474)
|
(15)
|
(4,088)
|
|||||||||
Underlying profit before impairment†
|
2,068
|
709
|
(42)
|
168
|
2,903
|
|||||||||
Impairment
|
(289)
|
55
|
1
|
(196)
|
(429)
|
|||||||||
Underlying profit (loss)†
|
1,779
|
764
|
(41)
|
(28)
|
2,474
|
|||||||||
Banking net interest margin†
|
2.45%
|
2.74%
|
2.44%
|
|||||||||||
Average interest-earning banking assets†
|
£348.5bn
|
£87.2bn
|
£0.9bn
|
-
|
£436.6bn
|
|||||||||
Asset quality ratio†
|
0.17%
|
(0.12)%
|
0.19%
|
|||||||||||
Return on risk-weighted assets†
|
3.56%
|
1.98%
|
2.40%
|
|||||||||||
Loans and advances to customers1
|
£350.9bn
|
£86.2bn
|
£0.9bn
|
£2.2bn
|
£440.2bn
|
|||||||||
Customer deposits2
|
£290.2bn
|
£145.6bn
|
£14.1bn
|
£0.8bn
|
£450.7bn
|
|||||||||
Risk-weighted assets
|
£99.0bn
|
£75.0bn
|
£1.3bn
|
£27.4bn
|
£202.7bn
|
Half-year to 30 June 2021
|
Half-year
to 30 June 2020
|
Change
|
Half-year
to 31 Dec
2020
|
Change
|
||||||||
£m
|
£m
|
%
|
£m
|
%
|
||||||||
Net interest income
|
4,218
|
4,233
|
-
|
4,151
|
2
|
|||||||
Other income
|
812
|
919
|
(12)
|
814
|
-
|
|||||||
Operating lease depreciation
|
(263)
|
(518)
|
49
|
(338)
|
22
|
|||||||
Net income
|
4,767
|
4,634
|
3
|
4,627
|
3
|
|||||||
Operating costs
|
(2,296)
|
(2,277)
|
(1)
|
(2,484)
|
8
|
|||||||
Remediation
|
(153)
|
(50)
|
(75)
|
|||||||||
Total costs
|
(2,449)
|
(2,327)
|
(5)
|
(2,559)
|
4
|
|||||||
Underlying profit before impairment
|
2,318
|
2,307
|
-
|
2,068
|
12
|
|||||||
Impairment
|
17
|
(2,095)
|
(289)
|
|||||||||
Underlying profit
|
2,335
|
212
|
1,779
|
31
|
||||||||
Banking net interest margin†
|
2.45%
|
2.59%
|
(14)bp
|
2.45%
|
-
|
|||||||
Average interest-earning banking assets†
|
£358.3bn
|
£342.3bn
|
5
|
£348.5bn
|
3
|
|||||||
Asset quality ratio†
|
(0.01)%
|
1.23%
|
(124)bp
|
0.17%
|
(18)bp
|
|||||||
Return on risk-weighted assets†
|
4.75%
|
0.43%
|
432bp
|
3.56%
|
119bp
|
At 30 June 2021
|
At 30 June 2020
|
Change
|
At 31 Dec 2020
|
Change
|
||||||||
£bn
|
£bn
|
%
|
£bn
|
%
|
||||||||
Open mortgage book
|
289.9
|
267.1
|
9
|
277.3
|
5
|
|||||||
Closed mortgage book
|
15.3
|
17.5
|
(13)
|
16.5
|
(7)
|
|||||||
Credit cards
|
13.6
|
15.2
|
(11)
|
14.3
|
(5)
|
|||||||
UK unsecured loans
|
8.0
|
8.2
|
(2)
|
8.0
|
-
|
|||||||
UK Motor Finance
|
14.4
|
15.3
|
(6)
|
14.7
|
(2)
|
|||||||
Business Banking
|
8.8
|
7.0
|
26
|
8.8
|
-
|
|||||||
Overdrafts
|
1.0
|
1.0
|
-
|
0.9
|
11
|
|||||||
Other1
|
10.5
|
9.7
|
8
|
10.4
|
1
|
|||||||
Loans and advances to customers
|
361.5
|
341.0
|
6
|
350.9
|
3
|
|||||||
Operating lease assets
|
4.0
|
4.1
|
(2)
|
3.9
|
3
|
|||||||
Total customer assets
|
365.5
|
345.1
|
6
|
354.8
|
3
|
|||||||
Current accounts
|
107.3
|
87.5
|
23
|
97.4
|
10
|
|||||||
Relationship savings2
|
186.1
|
172.0
|
8
|
178.8
|
4
|
|||||||
Tactical savings
|
16.4
|
12.7
|
29
|
14.0
|
17
|
|||||||
Customer deposits
|
309.8
|
272.2
|
14
|
290.2
|
7
|
|||||||
Risk-weighted assets
|
100.0
|
99.4
|
1
|
99.0
|
1
|
Half-year to 30 June 2021
|
Half-year
to 30 June 2020
|
Change
|
Half-year
to 31 Dec
2020
|
Change
|
||||||||
£m
|
£m
|
%
|
£m
|
%
|
||||||||
Net interest income
|
1,153
|
1,222
|
(6)
|
1,135
|
2
|
|||||||
Other income
|
677
|
658
|
3
|
634
|
7
|
|||||||
Operating lease depreciation
|
(8)
|
(8)
|
-
|
(20)
|
60
|
|||||||
Net income
|
1,822
|
1,872
|
(3)
|
1,749
|
4
|
|||||||
Operating costs
|
(901)
|
(906)
|
1
|
(945)
|
5
|
|||||||
Remediation
|
(169)
|
(115)
|
(47)
|
(95)
|
(78)
|
|||||||
Total costs
|
(1,070)
|
(1,021)
|
(5)
|
(1,040)
|
(3)
|
|||||||
Underlying profit before impairment
|
752
|
851
|
(12)
|
709
|
6
|
|||||||
Impairment
|
636
|
(1,519)
|
55
|
|||||||||
Underlying profit (loss)
|
1,388
|
(668)
|
764
|
82
|
||||||||
Banking net interest margin†
|
2.96%
|
2.92%
|
4bp
|
2.74%
|
22bp
|
|||||||
Average interest-earning banking assets†
|
£81.6bn
|
£90.0bn
|
(9)
|
£87.2bn
|
(6)
|
|||||||
Asset quality ratio†
|
(1.48)%
|
3.12%
|
(460)bp
|
(0.12)%
|
(136)bp
|
|||||||
Return on risk-weighted assets†
|
3.82%
|
(1.70)%
|
552bp
|
1.98%
|
184bp
|
At 30 June 2021
|
At 30 June 2020
|
Change
|
At 31 Dec 2020
|
Change
|
||||||||
£bn
|
£bn
|
%
|
£bn
|
%
|
||||||||
SME
|
31.6
|
31.4
|
1
|
31.8
|
(1)
|
|||||||
Mid Corporates
|
3.8
|
4.6
|
(17)
|
4.1
|
(7)
|
|||||||
Corporate and Institutional
|
44.9
|
55.0
|
(18)
|
46.0
|
(2)
|
|||||||
Other
|
3.9
|
5.0
|
(22)
|
4.3
|
(9)
|
|||||||
Loans and advances to customers
|
84.2
|
96.0
|
(12)
|
86.2
|
(2)
|
|||||||
SME loans and advances including Retail Business Banking
|
40.4
|
38.4
|
5
|
40.6
|
-
|
|||||||
Customer deposits
|
149.2
|
154.5
|
(3)
|
145.6
|
2
|
|||||||
Current accounts including Retail Business Banking
|
49.5
|
44.2
|
12
|
47.6
|
4
|
|||||||
Other customer deposits including Retail Business Banking
|
124.5
|
133.8
|
(7)
|
122.7
|
1
|
|||||||
Customer deposits including Retail Business Banking
|
174.0
|
178.0
|
(2)
|
170.3
|
2
|
|||||||
Risk-weighted assets
|
72.7
|
78.4
|
(7)
|
75.0
|
(3)
|
Half-year to 30 June 2021
|
Half-year
to 30 June 2020
|
Change
|
Half-year
to 31 Dec
2020
|
Change
|
||||||||
£m
|
£m
|
%
|
£m
|
%
|
||||||||
Net interest income
|
36
|
14
|
35
|
3
|
||||||||
Other income
|
660
|
853
|
(23)
|
397
|
66
|
|||||||
Net income
|
696
|
867
|
(20)
|
432
|
61
|
|||||||
Operating costs
|
(493)
|
(459)
|
(7)
|
(443)
|
(11)
|
|||||||
Remediation
|
(116)
|
(19)
|
(31)
|
|||||||||
Total costs
|
(609)
|
(478)
|
(27)
|
(474)
|
(28)
|
|||||||
Underlying profit before impairment
|
87
|
389
|
(78)
|
(42)
|
||||||||
Impairment
|
2
|
(10)
|
1
|
|||||||||
Underlying profit (loss)
|
89
|
379
|
(77)
|
(41)
|
||||||||
Life and pensions sales (PVNBP)1,†
|
9,006
|
7,880
|
14
|
6,649
|
35
|
|||||||
General insurance underwritten new gross written premiums
|
47
|
56
|
(16)
|
55
|
(15)
|
|||||||
General insurance underwritten total gross written premiums
|
315
|
327
|
(4)
|
335
|
(6)
|
|||||||
General insurance combined ratio2
|
114%
|
89%
|
25pp
|
82%
|
32pp
|
At 30 June 2021
|
At 30 June 2020
|
Change
|
At 31 Dec 2020
|
Change
|
||||||||
£bn
|
£bn
|
%
|
£bn
|
%
|
||||||||
Insurance Solvency II ratio3
|
162%
|
140%
|
22pp
|
151%
|
11pp
|
|||||||
UK Wealth Loans and advances to customers
|
1.0
|
0.9
|
11
|
0.9
|
11
|
|||||||
UK Wealth Customer deposits
|
14.8
|
13.5
|
10
|
14.1
|
5
|
|||||||
UK Wealth Risk-weighted assets
|
1.4
|
1.3
|
8
|
1.3
|
8
|
|||||||
Total customer assets under administration
|
184.6
|
159.6
|
16
|
171.9
|
7
|
Half-year to 30 June 2021
|
Half-year to 30 June 2020
|
Half-year to 31 Dec 2020
|
||||||||||||||||||
New
business
|
Existing
business
|
Total
|
New
business
|
Existing
business
|
Total
|
|||||||||||||||
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
||||||||||||||
Workplace, planning and retirement
|
98
|
55
|
153
|
121
|
62
|
183
|
144
|
|||||||||||||
Individual and bulk annuities
|
43
|
38
|
81
|
108
|
41
|
149
|
101
|
|||||||||||||
Protection
|
14
|
10
|
24
|
11
|
10
|
21
|
16
|
|||||||||||||
Longstanding LP&I
|
7
|
150
|
157
|
4
|
175
|
179
|
176
|
|||||||||||||
162
|
253
|
415
|
244
|
288
|
532
|
437
|
||||||||||||||
Life and pensions experience and other items
|
8
|
72
|
(267)
|
|||||||||||||||||
General insurance
|
158
|
155
|
154
|
|||||||||||||||||
581
|
759
|
324
|
||||||||||||||||||
Wealth
|
115
|
108
|
108
|
|||||||||||||||||
Net income
|
696
|
867
|
432
|
Half-year to 30 June 2021
|
Half-year
to 30 June 2020
|
Change
|
Half-year
to 31 Dec
2020
|
Change
|
||||||||
£m
|
£m
|
%
|
£m
|
%
|
||||||||
Net income
|
279
|
40
|
183
|
52
|
||||||||
Operating costs
|
(40)
|
(57)
|
30
|
(14)
|
||||||||
Remediation
|
13
|
7
|
86
|
(1)
|
||||||||
Total costs
|
(27)
|
(50)
|
46
|
(15)
|
(80)
|
|||||||
Underlying profit (loss) before impairment
|
252
|
(10)
|
168
|
50
|
||||||||
Impairment
|
1
|
(194)
|
(196)
|
|||||||||
Underlying profit (loss)
|
253
|
(204)
|
(28)
|
Removal of:
|
||||||||||||||
Statutory
basis
|
Volatility
and other
items1,2,3
|
Insurance
gross up4
|
PPI
|
Underlying
basis†
|
||||||||||
Half-year to 30 June 2021
|
£m
|
£m
|
£m
|
£m
|
£m
|
|||||||||
Net interest income
|
4,373
|
107
|
938
|
-
|
5,418
|
|||||||||
Other income, net of insurance claims
|
3,706
|
(263)
|
(1,026)
|
-
|
2,417
|
|||||||||
Operating lease depreciation
|
(271)
|
-
|
-
|
(271)
|
||||||||||
Net income
|
8,079
|
(427)
|
(88)
|
-
|
7,564
|
|||||||||
Operating expenses5
|
(4,897)
|
654
|
88
|
-
|
(4,155)
|
|||||||||
Impairment6
|
723
|
(67)
|
-
|
-
|
656
|
|||||||||
Profit (loss) before tax
|
3,905
|
160
|
-
|
-
|
4,065
|
|||||||||
Half-year to 30 June 2020
|
||||||||||||||
Net interest income
|
6,556
|
54
|
(1,132)
|
-
|
5,478
|
|||||||||
Other income, net of insurance claims
|
1,339
|
104
|
1,018
|
-
|
2,461
|
|||||||||
Operating lease depreciation
|
(526)
|
-
|
-
|
(526)
|
||||||||||
Net income
|
7,895
|
(368)
|
(114)
|
-
|
7,413
|
|||||||||
Operating expenses5
|
(4,668)
|
689
|
103
|
-
|
(3,876)
|
|||||||||
Impairment6
|
(3,829)
|
-
|
11
|
-
|
(3,818)
|
|||||||||
Profit (loss) before tax
|
(602)
|
321
|
-
|
-
|
(281)
|
|||||||||
Half-year to 31 December 2020
|
||||||||||||||
Net interest income
|
4,193
|
120
|
982
|
-
|
5,295
|
|||||||||
Other income, net of insurance claims
|
3,038
|
61
|
(1,045)
|
-
|
2,054
|
|||||||||
Operating lease depreciation
|
(358)
|
-
|
-
|
(358)
|
||||||||||
Net income
|
7,231
|
(177)
|
(63)
|
-
|
6,991
|
|||||||||
Operating expenses5
|
(5,077)
|
833
|
71
|
85
|
(4,088)
|
|||||||||
Impairment6
|
(326)
|
(95)
|
(8)
|
-
|
(429)
|
|||||||||
Profit (loss) before tax
|
1,828
|
561
|
-
|
85
|
2,474
|
Half-year to 30 June 2021
|
Half-year
to 30 June 2020
|
Half-year
to 31 Dec
2020
|
|||||
£m
|
£m
|
£m
|
|||||
Statutory profit before tax
|
3,905
|
(602)
|
1,828
|
||||
Impairment
|
(723)
|
3,829
|
326
|
||||
Volatility and other items1
|
227
|
321
|
656
|
||||
Insurance gross up
|
-
|
(11)
|
8
|
||||
Payment protection insurance
|
-
|
-
|
85
|
||||
Underlying profit before impairment†
|
3,409
|
3,537
|
2,903
|
Half-year to 30 June 2021
|
Half-year
to 30 June 2020
|
Half-year
to 31 Dec
2020
|
||||||
Group net interest income - statutory basis (£m)
|
4,373
|
6,556
|
4,193
|
|||||
Insurance gross up (£m)
|
938
|
(1,132)
|
982
|
|||||
Volatility and other items (£m)
|
107
|
54
|
120
|
|||||
Group net interest income - underlying basis (£m)
|
5,418
|
5,478
|
5,295
|
|||||
Non-banking net interest expense (£m)
|
58
|
110
|
67
|
|||||
Banking net interest income - underlying basis (£m)
|
5,476
|
5,588
|
5,362
|
|||||
Net loans and advances to customers (£bn)1
|
447.7
|
440.4
|
440.2
|
|||||
Impairment provision and fair value adjustments (£bn)
|
5.1
|
6.6
|
6.3
|
|||||
Non-banking items:
|
||||||||
Fee-based loans and advances (£bn)
|
(4.6)
|
(6.5)
|
(5.1)
|
|||||
Other non-banking (£bn)
|
(0.4)
|
(2.4)
|
(2.6)
|
|||||
Gross banking loans and advances (£bn)
|
447.8
|
438.1
|
438.8
|
|||||
Averaging (£bn)
|
(7.0)
|
(4.9)
|
(2.2)
|
|||||
Average interest-earning banking assets (£bn)
|
440.8
|
433.2
|
436.6
|
|||||
Banking net interest margin (%)
|
2.50
|
2.59
|
2.44
|
Half-year to 30 June 2021
|
Half-year
to 30 June 2020
|
Half-year
to 31 Dec
2020
|
||||||
£m
|
£m
|
£m
|
||||||
Insurance volatility
|
275
|
(393)
|
173
|
|||||
Policyholder interests volatility
|
214
|
(205)
|
131
|
|||||
Total volatility
|
489
|
(598)
|
304
|
|||||
Insurance hedging arrangements
|
(340)
|
228
|
(156)
|
|||||
Total
|
149
|
(370)
|
148
|
Half-year to 30 June 2021
|
Half-year
to 30 June 2020
|
Half-year
to 31 Dec
2020
|
|||
£m
|
£m
|
£m
|
|||
Persistency
|
-
|
-
|
(74)
|
||
Mortality, longevity and morbidity
|
34
|
-
|
52
|
||
Expense assumptions
|
(29)
|
-
|
(124)
|
||
Other
|
22
|
-
|
(5)
|
||
Total assumption changes
|
27
|
-
|
(151)
|
||
Methodology changes
|
-
|
91
|
-
|
||
Total assumption and methodology changes
|
27
|
91
|
(151)
|
At 30 June 2021
|
At 30 June 2020
|
At 31 Dec 2020
|
||||
£m
|
£m
|
£m
|
||||
Ordinary shareholders' equity
|
45,761
|
42,734
|
43,278
|
|||
Goodwill
|
(2,320)
|
(2,324)
|
(2,320)
|
|||
Intangible assets
|
(4,299)
|
(3,985)
|
(4,140)
|
|||
Purchased value of in-force business
|
(209)
|
(234)
|
(221)
|
|||
Other, including deferred tax effects
|
552
|
309
|
459
|
|||
Tangible net assets
|
39,485
|
36,500
|
37,056
|
|||
Ordinary shares in issue, excluding own shares
|
70,956m
|
70,735m
|
70,812m
|
|||
Tangible net assets per share
|
55.6p
|
51.6p
|
52.3p
|
Half-year to 30 June 2021
|
Half-year
to 30 June 2020
|
Half-year
to 31 Dec
2020
|
||||||
Average shareholders' equity (£bn)
|
44.2
|
43.7
|
43.1
|
|||||
Average intangible assets (£bn)
|
(6.3)
|
(6.2)
|
(6.3)
|
|||||
Average tangible equity (£bn)
|
37.9
|
37.5
|
36.8
|
|||||
Profit (loss) attributable to ordinary shareholders (£m)1
|
3,611
|
(234)
|
1,099
|
|||||
Return on tangible equity (%)1,†
|
19.2
|
(1.3)
|
5.9
|
Mortgages
|
Cards
|
Loans
|
Motor
|
Total
|
||||||||||
000s
|
£bn
|
000s
|
£bn
|
000s
|
£bn
|
000s
|
£bn
|
000s
|
£bn
|
|||||
Total payment holidays granted
|
491
|
59.1
|
341
|
1.7
|
304
|
2.4
|
161
|
2.0
|
1,297
|
65.1
|
||||
First payment holiday still in force
|
0
|
0.1
|
1
|
0.0
|
0
|
0.0
|
0
|
0.0
|
2
|
0.1
|
||||
Matured payment holidays - repaying
|
460
|
55.2
|
290
|
1.4
|
274
|
2.2
|
149
|
1.8
|
1,173
|
60.6
|
||||
Matured payment holidays - extended
|
2
|
0.2
|
1
|
0.0
|
1
|
0.0
|
1
|
0.0
|
5
|
0.3
|
||||
Matured payment holidays - missed payment
|
29
|
3.6
|
48
|
0.2
|
29
|
0.2
|
11
|
0.2
|
116
|
4.2
|
||||
As a percentage of total matured
|
||||||||||||||
Matured payment holidays - repaying
|
94%
|
94%
|
85%
|
86%
|
90%
|
91%
|
92%
|
90%
|
91%
|
93%
|
||||
Matured payment holidays - extended
|
0.3%
|
0.4%
|
0.3%
|
0.4%
|
0.2%
|
0.3
|
0.7%
|
1.1%
|
0.4%
|
0.4%
|
||||
Matured payment holidays - missed payment
|
6%
|
6%
|
14%
|
14%
|
9%
|
9%
|
7%
|
9%
|
9%
|
6%
|
Half-year to 30 June 2021
|
Half-year
to 30 June 2020
|
Change
|
Half-year
to 31 Dec
2020
|
Change
|
||||||||
£m
|
£m
|
%
|
£m
|
%
|
||||||||
UK Mortgages
|
(175)
|
603
|
(125)
|
(40)
|
||||||||
Credit cards
|
67
|
656
|
90
|
144
|
53
|
|||||||
Loans and overdrafts
|
130
|
462
|
72
|
277
|
53
|
|||||||
UK Motor Finance
|
(40)
|
241
|
(15)
|
|||||||||
Other
|
1
|
133
|
8
|
88
|
||||||||
Retail
|
(17)
|
2,095
|
289
|
|||||||||
SME
|
(146)
|
257
|
7
|
|||||||||
Other
|
(490)
|
1,262
|
(62)
|
|||||||||
Commercial Banking
|
(636)
|
1,519
|
(55)
|
|||||||||
Insurance and Wealth
|
(2)
|
10
|
(1)
|
|||||||||
Central items
|
(1)
|
194
|
196
|
|||||||||
Total impairment (credit) charge†
|
(656)
|
3,818
|
429
|
|||||||||
Asset quality ratio†
|
(0.30)%
|
1.73%
|
(203)bp
|
0.19%
|
(49)bp
|
Statutory basis
|
Underlying basis
|
||||||||||
At 30 June 2021
|
At 31 Dec 2020
|
At 30 June 2021
|
At 31 Dec 2020
|
||||||||
£m
|
£m
|
£m
|
£m
|
||||||||
Customer related balances
|
|||||||||||
Drawn
|
4,672
|
5,760
|
5,197
|
6,373
|
|||||||
Undrawn
|
359
|
459
|
358
|
459
|
|||||||
5,031
|
6,219
|
5,555
|
6,832
|
||||||||
Other assets
|
27
|
28
|
27
|
28
|
|||||||
Total ECL allowance
|
5,058
|
6,247
|
5,582
|
6,860
|
Gross loans and advances to customers
|
Expected credit loss allowances on drawn balances
|
||||||||||||||||||||||||||||
Stage 1
|
Stage 2
|
Stage 3
|
POCI
|
Total
|
Stage 1
|
Stage 2
|
Stage 3
|
POCI
|
Total
|
||||||||||||||||||||
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
||||||||||||||||||||
At 30 June 2021
|
Underlying basis
|
442,751
|
54,129
|
8,616
|
-
|
505,496
|
1,196
|
1,902
|
2,099
|
-
|
5,197
|
|||||||||||||||||||
POCI assets
|
(1,854)
|
(8,100)
|
(2,433)
|
12,387
|
-
|
(2)
|
(269)
|
(420)
|
691
|
-
|
|||||||||||||||||||
Acquisition fair value adjustment
|
27
|
5
|
1
|
(501)
|
(468)
|
(8)
|
(12)
|
(4)
|
(501)
|
(525)
|
|||||||||||||||||||
(1,827)
|
(8,095)
|
(2,432)
|
11,886
|
(468)
|
(10)
|
(281)
|
(424)
|
190
|
(525)
|
||||||||||||||||||||
Statutory basis
|
440,924
|
46,034
|
6,184
|
11,886
|
505,028
|
1,186
|
1,621
|
1,675
|
190
|
4,672
|
|||||||||||||||||||
At 31 December 2020
|
|||||||||||||||||||||||||||||
Underlying basis
|
435,526
|
60,514
|
9,089
|
-
|
505,129
|
1,385
|
2,493
|
2,495
|
-
|
6,373
|
|||||||||||||||||||
POCI assets
|
(1,625)
|
(8,864)
|
(2,600)
|
13,089
|
-
|
(3)
|
(330)
|
(506)
|
839
|
-
|
|||||||||||||||||||
Acquisition fair value adjustment
|
42
|
9
|
1
|
(578)
|
(526)
|
(10)
|
(18)
|
(7)
|
(578)
|
(613)
|
|||||||||||||||||||
(1,583)
|
(8,855)
|
(2,599)
|
12,511
|
(526)
|
(13)
|
(348)
|
(513)
|
261
|
(613)
|
||||||||||||||||||||
Statutory basis
|
433,943
|
51,659
|
6,490
|
12,511
|
504,603
|
1,372
|
2,145
|
1,982
|
261
|
5,760
|
ECL at 30 June 2021
|
Net ECL
decrease
|
Write-offs
and other
|
Income
statement
charge (credit)
|
ECL at 31 Dec 2020
|
||||||||||
£m
|
£m
|
£m
|
£m
|
£m
|
||||||||||
UK Mortgages
|
905
|
(122)
|
53
|
(175)
|
1,027
|
|||||||||
Credit cards
|
802
|
(121)
|
(188)
|
67
|
923
|
|||||||||
Loans and overdrafts
|
606
|
(109)
|
(167)
|
58
|
715
|
|||||||||
UK Motor Finance
|
434
|
(67)
|
(27)
|
(40)
|
501
|
|||||||||
Other
|
211
|
(18)
|
(19)
|
1
|
229
|
|||||||||
Retail
|
2,958
|
(437)
|
(348)
|
(89)
|
3,395
|
|||||||||
SME
|
347
|
(155)
|
(9)
|
(146)
|
502
|
|||||||||
Other
|
1,303
|
(597)
|
(109)
|
(488)
|
1,900
|
|||||||||
Commercial Banking
|
1,650
|
(752)
|
(118)
|
(634)
|
2,402
|
|||||||||
Other
|
450
|
-
|
-
|
-
|
450
|
|||||||||
Total1
|
5,058
|
(1,189)
|
(466)
|
(723)
|
6,247
|
ECL at 30 June 2021
|
Net ECL
decrease
|
Write-offs
and other
|
Income
statement
charge (credit)
|
ECL at 31 Dec 2020
|
||||||||||
£m
|
£m
|
£m
|
£m
|
£m
|
||||||||||
UK Mortgages
|
1,406
|
(199)
|
(24)
|
(175)
|
1,605
|
|||||||||
Credit cards
|
825
|
(133)
|
(200)
|
67
|
958
|
|||||||||
Loans and overdrafts
|
606
|
(109)
|
(239)
|
130
|
715
|
|||||||||
UK Motor Finance
|
434
|
(67)
|
(27)
|
(40)
|
501
|
|||||||||
Other
|
211
|
(18)
|
(19)
|
1
|
229
|
|||||||||
Retail
|
3,482
|
(526)
|
(509)
|
(17)
|
4,008
|
|||||||||
SME
|
347
|
(155)
|
(9)
|
(146)
|
502
|
|||||||||
Other
|
1,303
|
(597)
|
(107)
|
(490)
|
1,900
|
|||||||||
Commercial Banking
|
1,650
|
(752)
|
(116)
|
(636)
|
2,402
|
|||||||||
Other
|
450
|
-
|
3
|
(3)
|
450
|
|||||||||
Total1
|
5,582
|
(1,278)
|
(622)
|
(656)
|
6,860
|
Stage 1
|
Stage 2
|
Stage 3
|
POCI
|
Total
|
Stage 2
as % of
total
|
Stage 3
as % of
total
|
|||||||
At 30 June 2021
|
£m
|
£m
|
£m
|
£m
|
£m
|
||||||||
Loans and advances to customers
|
|||||||||||||
UK Mortgages
|
262,541
|
29,770
|
1,924
|
11,886
|
306,121
|
9.7
|
0.6
|
||||||
Credit cards
|
10,956
|
2,936
|
323
|
-
|
14,215
|
20.7
|
2.3
|
||||||
Loans and overdrafts
|
7,782
|
1,413
|
312
|
-
|
9,507
|
14.9
|
3.3
|
||||||
UK Motor Finance
|
12,347
|
2,272
|
233
|
-
|
14,852
|
15.3
|
1.6
|
||||||
Other
|
18,074
|
1,203
|
244
|
-
|
19,521
|
6.2
|
1.2
|
||||||
Retail
|
311,700
|
37,594
|
3,036
|
11,886
|
364,216
|
10.3
|
0.8
|
||||||
SME
|
27,952
|
3,139
|
863
|
-
|
31,954
|
9.8
|
2.7
|
||||||
Other
|
46,292
|
5,265
|
2,215
|
-
|
53,772
|
9.8
|
4.1
|
||||||
Commercial Banking
|
74,244
|
8,404
|
3,078
|
-
|
85,726
|
9.8
|
3.6
|
||||||
Insurance and Wealth
|
877
|
36
|
63
|
-
|
976
|
3.7
|
6.5
|
||||||
Central items1
|
54,103
|
-
|
7
|
-
|
54,110
|
-
|
-
|
||||||
Total gross lending
|
440,924
|
46,034
|
6,184
|
11,886
|
505,028
|
9.1
|
1.2
|
||||||
ECL allowance on drawn balances
|
(1,186)
|
(1,621)
|
(1,675)
|
(190)
|
(4,672)
|
||||||||
Net balance sheet carrying value
|
439,738
|
44,413
|
4,509
|
11,696
|
500,356
|
||||||||
Group ECL allowance (drawn and undrawn)
|
|||||||||||||
UK Mortgages
|
129
|
411
|
175
|
190
|
905
|
45.4
|
19.3
|
||||||
Credit cards
|
200
|
462
|
140
|
-
|
802
|
57.6
|
17.5
|
||||||
Loans and overdrafts
|
178
|
277
|
151
|
-
|
606
|
45.7
|
24.9
|
||||||
UK Motor Finance2
|
154
|
129
|
151
|
-
|
434
|
29.7
|
34.8
|
||||||
Other
|
51
|
105
|
55
|
-
|
211
|
49.8
|
26.1
|
||||||
Retail
|
712
|
1,384
|
672
|
190
|
2,958
|
46.8
|
22.7
|
||||||
SME
|
106
|
129
|
112
|
-
|
347
|
37.2
|
32.3
|
||||||
Other
|
131
|
286
|
883
|
-
|
1,300
|
22.0
|
67.9
|
||||||
Commercial Banking
|
237
|
415
|
995
|
-
|
1,647
|
25.2
|
60.4
|
||||||
Insurance and Wealth
|
9
|
1
|
11
|
-
|
21
|
4.8
|
52.4
|
||||||
Central items
|
400
|
-
|
5
|
-
|
405
|
-
|
1.2
|
||||||
Total ECL allowance (drawn and undrawn)
|
1,358
|
1,800
|
1,683
|
190
|
5,031
|
35.8
|
33.5
|
||||||
Group ECL allowances (drawn and undrawn)
as a % of loans and advances to customers3
|
|||||||||||||
UK Mortgages
|
-
|
1.4
|
9.1
|
1.6
|
0.3
|
||||||||
Credit cards
|
1.8
|
15.7
|
55.3
|
-
|
5.7
|
||||||||
Loans and overdrafts
|
2.3
|
19.6
|
62.4
|
-
|
6.4
|
||||||||
UK Motor Finance
|
1.2
|
5.7
|
64.8
|
-
|
2.9
|
||||||||
Other
|
0.3
|
8.7
|
41.4
|
-
|
1.1
|
||||||||
Retail
|
0.2
|
3.7
|
24.1
|
1.6
|
0.8
|
||||||||
SME
|
0.4
|
4.1
|
15.2
|
-
|
1.1
|
||||||||
Other
|
0.3
|
5.4
|
40.0
|
-
|
2.4
|
||||||||
Commercial Banking
|
0.3
|
4.9
|
33.7
|
-
|
1.9
|
||||||||
Insurance and Wealth
|
1.0
|
2.8
|
17.5
|
-
|
2.2
|
||||||||
Central items
|
0.7
|
-
|
71.4
|
-
|
0.7
|
||||||||
Total ECL allowances (drawn and
undrawn) as a % of loans and advances to customers
|
0.3
|
3.9
|
29.0
|
1.6
|
1.0
|
Stage 1
|
Stage 2
|
Stage 3
|
POCI
|
Total
|
Stage 2
as % of
total
|
Stage 3
as % of
total
|
|||||||
At 31 December 2020
|
£m
|
£m
|
£m
|
£m
|
£m
|
||||||||
Loans and advances to customers
|
|||||||||||||
UK Mortgages
|
251,418
|
29,018
|
1,859
|
12,511
|
294,806
|
9.8
|
0.6
|
||||||
Credit cards
|
11,496
|
3,273
|
340
|
-
|
15,109
|
21.7
|
2.3
|
||||||
Loans and overdrafts
|
7,710
|
1,519
|
307
|
-
|
9,536
|
15.9
|
3.2
|
||||||
UK Motor Finance
|
12,786
|
2,216
|
199
|
-
|
15,201
|
14.6
|
1.3
|
||||||
Other
|
17,879
|
1,304
|
184
|
-
|
19,367
|
6.7
|
1.0
|
||||||
Retail
|
301,289
|
37,330
|
2,889
|
12,511
|
354,019
|
10.5
|
0.8
|
||||||
SME
|
27,015
|
4,500
|
791
|
-
|
32,306
|
13.9
|
2.4
|
||||||
Other
|
43,543
|
9,816
|
2,733
|
-
|
56,092
|
17.5
|
4.9
|
||||||
Commercial Banking
|
70,558
|
14,316
|
3,524
|
-
|
88,398
|
16.2
|
4.0
|
||||||
Insurance and Wealth
|
832
|
13
|
70
|
-
|
915
|
1.4
|
7.7
|
||||||
Central items1
|
61,264
|
-
|
7
|
-
|
61,271
|
-
|
-
|
||||||
Total gross lending
|
433,943
|
51,659
|
6,490
|
12,511
|
504,603
|
10.2
|
1.3
|
||||||
ECL allowance on drawn balances
|
(1,372)
|
(2,145)
|
(1,982)
|
(261)
|
(5,760)
|
||||||||
Net balance sheet carrying value
|
432,571
|
49,514
|
4,508
|
12,250
|
498,843
|
||||||||
Group ECL allowance (drawn and undrawn)
|
|||||||||||||
UK Mortgages
|
107
|
468
|
191
|
261
|
1,027
|
45.6
|
18.6
|
||||||
Credit cards
|
240
|
530
|
153
|
-
|
923
|
57.4
|
16.6
|
||||||
Loans and overdrafts
|
224
|
344
|
147
|
-
|
715
|
48.1
|
20.6
|
||||||
UK Motor Finance2
|
197
|
171
|
133
|
-
|
501
|
34.1
|
26.5
|
||||||
Other
|
46
|
124
|
59
|
-
|
229
|
54.1
|
25.8
|
||||||
Retail
|
814
|
1,637
|
683
|
261
|
3,395
|
48.2
|
20.1
|
||||||
SME
|
142
|
234
|
126
|
-
|
502
|
46.6
|
25.1
|
||||||
Other
|
217
|
507
|
1,169
|
-
|
1,893
|
26.8
|
61.8
|
||||||
Commercial Banking
|
359
|
741
|
1,295
|
-
|
2,395
|
30.9
|
54.1
|
||||||
Insurance and Wealth
|
11
|
1
|
11
|
-
|
23
|
4.3
|
47.8
|
||||||
Central items
|
400
|
-
|
6
|
-
|
406
|
-
|
1.5
|
||||||
Total ECL allowance (drawn and undrawn)
|
1,584
|
2,379
|
1,995
|
261
|
6,219
|
38.3
|
32.1
|
||||||
Group ECL allowances (drawn and undrawn)
as a % of loans and advances to customers3
|
|||||||||||||
UK Mortgages
|
-
|
1.6
|
10.3
|
2.1
|
0.3
|
||||||||
Credit cards
|
2.1
|
16.2
|
56.0
|
-
|
6.1
|
||||||||
Loans and overdrafts
|
2.9
|
22.6
|
64.2
|
-
|
7.6
|
||||||||
UK Motor Finance
|
1.5
|
7.7
|
66.8
|
-
|
3.3
|
||||||||
Other
|
0.3
|
9.5
|
39.3
|
-
|
1.2
|
||||||||
Retail
|
0.3
|
4.4
|
25.2
|
2.1
|
1.0
|
||||||||
SME
|
0.5
|
5.2
|
19.1
|
-
|
1.6
|
||||||||
Other
|
0.5
|
5.2
|
42.9
|
-
|
3.4
|
||||||||
Commercial Banking
|
0.5
|
5.2
|
38.2
|
-
|
2.7
|
||||||||
Insurance and Wealth
|
1.3
|
7.7
|
15.7
|
-
|
2.5
|
||||||||
Central items
|
0.7
|
-
|
85.7
|
-
|
0.7
|
||||||||
Total ECL allowances (drawn and
undrawn) as a % of loans and advances
to customers
|
0.4
|
4.6
|
32.3
|
2.1
|
1.2
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
Stage 2
as % of
total
|
Stage 3
as % of
total
|
||||||
At 30 June 2021
|
£m
|
£m
|
£m
|
£m
|
|||||||
Loans and advances to customers
|
|||||||||||
UK Mortgages
|
264,395
|
37,870
|
4,357
|
306,622
|
12.4
|
1.4
|
|||||
Credit cards
|
10,929
|
2,931
|
322
|
14,182
|
20.7
|
2.3
|
|||||
Loans and overdrafts
|
7,782
|
1,413
|
312
|
9,507
|
14.9
|
3.3
|
|||||
UK Motor Finance
|
12,347
|
2,272
|
233
|
14,852
|
15.3
|
1.6
|
|||||
Other
|
18,074
|
1,203
|
244
|
19,521
|
6.2
|
1.2
|
|||||
Retail1
|
313,527
|
45,689
|
5,468
|
364,684
|
12.5
|
1.5
|
|||||
SME
|
27,952
|
3,139
|
863
|
31,954
|
9.8
|
2.7
|
|||||
Other
|
46,292
|
5,265
|
2,215
|
53,772
|
9.8
|
4.1
|
|||||
Commercial Banking
|
74,244
|
8,404
|
3,078
|
85,726
|
9.8
|
3.6
|
|||||
Insurance and Wealth
|
877
|
36
|
63
|
976
|
3.7
|
6.5
|
|||||
Central items2
|
54,103
|
-
|
7
|
54,110
|
-
|
-
|
|||||
Total gross lending
|
442,751
|
54,129
|
8,616
|
505,496
|
10.7
|
1.7
|
|||||
ECL allowance on drawn balances
|
(1,196)
|
(1,902)
|
(2,099)
|
(5,197)
|
|||||||
Net balance sheet carrying value
|
441,555
|
52,227
|
6,517
|
500,299
|
|||||||
Group ECL allowance (drawn and undrawn)
|
|||||||||||
UK Mortgages
|
131
|
680
|
595
|
1,406
|
48.4
|
42.3
|
|||||
Credit cards
|
206
|
474
|
145
|
825
|
57.5
|
17.6
|
|||||
Loans and overdrafts
|
178
|
277
|
151
|
606
|
45.7
|
24.9
|
|||||
UK Motor Finance3
|
154
|
129
|
151
|
434
|
29.7
|
34.8
|
|||||
Other
|
51
|
105
|
55
|
211
|
49.8
|
26.1
|
|||||
Retail1
|
720
|
1,665
|
1,097
|
3,482
|
47.8
|
31.5
|
|||||
SME
|
106
|
129
|
112
|
347
|
37.2
|
32.3
|
|||||
Other
|
131
|
286
|
883
|
1,300
|
22.0
|
67.9
|
|||||
Commercial Banking
|
237
|
415
|
995
|
1,647
|
25.2
|
60.4
|
|||||
Insurance and Wealth
|
9
|
1
|
11
|
21
|
4.8
|
52.4
|
|||||
Central items
|
400
|
-
|
5
|
405
|
-
|
1.2
|
|||||
Total ECL allowance (drawn and undrawn)
|
1,366
|
2,081
|
2,108
|
5,555
|
37.5
|
37.9
|
|||||
Group ECL allowances (drawn and undrawn) as a
% of loans and advances to customers4
|
|||||||||||
UK Mortgages
|
-
|
1.8
|
13.7
|
0.5
|
|||||||
Credit cards
|
1.9
|
16.2
|
57.5
|
5.8
|
|||||||
Loans and overdrafts
|
2.3
|
19.6
|
62.4
|
6.4
|
|||||||
UK Motor Finance
|
1.2
|
5.7
|
64.8
|
2.9
|
|||||||
Other
|
0.3
|
8.7
|
41.4
|
1.1
|
|||||||
Retail1
|
0.2
|
3.6
|
21.0
|
1.0
|
|||||||
SME
|
0.4
|
4.1
|
15.2
|
1.1
|
|||||||
Other
|
0.3
|
5.4
|
40.0
|
2.4
|
|||||||
Commercial Banking
|
0.3
|
4.9
|
33.7
|
1.9
|
|||||||
Insurance and Wealth
|
1.0
|
2.8
|
17.5
|
2.2
|
|||||||
Central items
|
0.7
|
-
|
71.4
|
0.7
|
|||||||
Total ECL allowances (drawn and undrawn) as a
% of loans and advances to customers
|
0.3
|
3.8
|
25.6
|
1.1
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
Stage 2
as % of
total
|
Stage 3
as % of
total
|
||||||
At 31 December 2020
|
£m
|
£m
|
£m
|
£m
|
|||||||
Loans and advances to customers
|
|||||||||||
UK Mortgages
|
253,043
|
37,882
|
4,459
|
295,384
|
12.8
|
1.5
|
|||||
Credit cards
|
11,454
|
3,264
|
339
|
15,057
|
21.7
|
2.3
|
|||||
Loans and overdrafts
|
7,710
|
1,519
|
307
|
9,536
|
15.9
|
3.2
|
|||||
UK Motor Finance
|
12,786
|
2,216
|
199
|
15,201
|
14.6
|
1.3
|
|||||
Other
|
17,879
|
1,304
|
184
|
19,367
|
6.7
|
1.0
|
|||||
Retail1
|
302,872
|
46,185
|
5,488
|
354,545
|
13.0
|
1.5
|
|||||
SME
|
27,015
|
4,500
|
791
|
32,306
|
13.9
|
2.4
|
|||||
Other
|
43,543
|
9,816
|
2,733
|
56,092
|
17.5
|
4.9
|
|||||
Commercial Banking
|
70,558
|
14,316
|
3,524
|
88,398
|
16.2
|
4.0
|
|||||
Insurance and Wealth
|
832
|
13
|
70
|
915
|
1.4
|
7.7
|
|||||
Central items2
|
61,264
|
-
|
7
|
61,271
|
-
|
-
|
|||||
Total gross lending
|
435,526
|
60,514
|
9,089
|
505,129
|
12.0
|
1.8
|
|||||
ECL allowance on drawn balances
|
(1,385)
|
(2,493)
|
(2,495)
|
(6,373)
|
|||||||
Net balance sheet carrying value
|
434,141
|
58,021
|
6,594
|
498,756
|
|||||||
Group ECL allowance (drawn and undrawn)
|
|||||||||||
UK Mortgages
|
110
|
798
|
697
|
1,605
|
49.7
|
43.4
|
|||||
Credit cards
|
250
|
548
|
160
|
958
|
57.2
|
16.7
|
|||||
Loans and overdrafts
|
224
|
344
|
147
|
715
|
48.1
|
20.6
|
|||||
UK Motor Finance3
|
197
|
171
|
133
|
501
|
34.1
|
26.5
|
|||||
Other
|
46
|
124
|
59
|
229
|
54.1
|
25.8
|
|||||
Retail1
|
827
|
1,985
|
1,196
|
4,008
|
49.5
|
29.8
|
|||||
SME
|
142
|
234
|
126
|
502
|
46.6
|
25.1
|
|||||
Other
|
217
|
507
|
1,169
|
1,893
|
26.8
|
61.8
|
|||||
Commercial Banking
|
359
|
741
|
1,295
|
2,395
|
30.9
|
54.1
|
|||||
Insurance and Wealth
|
11
|
1
|
11
|
23
|
4.3
|
47.8
|
|||||
Central items
|
400
|
-
|
6
|
406
|
-
|
1.5
|
|||||
Total ECL allowance (drawn and undrawn)
|
1,597
|
2,727
|
2,508
|
6,832
|
39.9
|
36.7
|
|||||
Group ECL allowances (drawn and undrawn) as a
% of loans and advances to customers4
|
|||||||||||
UK Mortgages
|
-
|
2.1
|
15.6
|
0.5
|
|||||||
Credit cards
|
2.2
|
16.8
|
58.8
|
6.4
|
|||||||
Loans and overdrafts
|
2.9
|
22.6
|
64.2
|
7.6
|
|||||||
UK Motor Finance
|
1.5
|
7.7
|
66.8
|
3.3
|
|||||||
Other
|
0.3
|
9.5
|
39.3
|
1.2
|
|||||||
Retail1
|
0.3
|
4.3
|
22.5
|
1.1
|
|||||||
SME
|
0.5
|
5.2
|
19.1
|
1.6
|
|||||||
Other
|
0.5
|
5.2
|
42.9
|
3.4
|
|||||||
Commercial Banking
|
0.5
|
5.2
|
38.2
|
2.7
|
|||||||
Insurance and Wealth
|
1.3
|
7.7
|
15.7
|
2.5
|
|||||||
Central items
|
0.7
|
-
|
85.7
|
0.7
|
|||||||
Total ECL allowances (drawn and undrawn) as a
% of loans and advances to customers
|
0.4
|
4.5
|
28.6
|
1.4
|
Up to date
|
1-30 days
past due2
|
Over 30 days
past due
|
Total
|
||||||||||||||||
PD movements
|
Other1
|
||||||||||||||||||
Gross
lending
|
ECL3
|
Gross
lending
|
ECL3
|
Gross
lending
|
ECL3
|
Gross
lending
|
ECL3
|
Gross
lending
|
ECL3
|
||||||||||
At 30 June 2021
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|||||||||
UK Mortgages
|
23,034
|
191
|
3,630
|
122
|
1,491
|
32
|
1,615
|
66
|
29,770
|
411
|
|||||||||
Credit cards
|
2,640
|
356
|
189
|
68
|
77
|
22
|
30
|
16
|
2,936
|
462
|
|||||||||
Loans and overdrafts
|
854
|
162
|
396
|
54
|
127
|
43
|
36
|
18
|
1,413
|
277
|
|||||||||
UK Motor Finance
|
966
|
47
|
1,148
|
39
|
122
|
29
|
36
|
14
|
2,272
|
129
|
|||||||||
Other
|
494
|
58
|
586
|
33
|
64
|
9
|
59
|
5
|
1,203
|
105
|
|||||||||
Retail
|
27,988
|
814
|
5,949
|
316
|
1,881
|
135
|
1,776
|
119
|
37,594
|
1,384
|
|||||||||
SME
|
2,866
|
118
|
178
|
6
|
24
|
2
|
71
|
3
|
3,139
|
129
|
|||||||||
Other
|
5,028
|
281
|
89
|
1
|
56
|
3
|
92
|
1
|
5,265
|
286
|
|||||||||
Commercial Banking
|
7,894
|
399
|
267
|
7
|
80
|
5
|
163
|
4
|
8,404
|
415
|
|||||||||
Insurance and Wealth
|
17
|
-
|
18
|
1
|
-
|
-
|
1
|
-
|
36
|
1
|
|||||||||
Central items
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||
Total
|
35,899
|
1,213
|
6,234
|
324
|
1,961
|
140
|
1,940
|
123
|
46,034
|
1,800
|
|||||||||
At 31 December 2020
|
|||||||||||||||||||
UK Mortgages
|
22,569
|
215
|
3,078
|
131
|
1,648
|
43
|
1,723
|
79
|
29,018
|
468
|
|||||||||
Credit cards
|
2,924
|
408
|
220
|
76
|
93
|
27
|
36
|
19
|
3,273
|
530
|
|||||||||
Loans and overdrafts
|
959
|
209
|
388
|
68
|
126
|
45
|
46
|
22
|
1,519
|
344
|
|||||||||
UK Motor Finance
|
724
|
62
|
1,321
|
55
|
132
|
37
|
39
|
17
|
2,216
|
171
|
|||||||||
Other
|
512
|
56
|
651
|
44
|
69
|
14
|
72
|
10
|
1,304
|
124
|
|||||||||
Retail
|
27,688
|
950
|
5,658
|
374
|
2,068
|
166
|
1,916
|
147
|
37,330
|
1,637
|
|||||||||
SME
|
4,229
|
219
|
150
|
6
|
40
|
5
|
81
|
4
|
4,500
|
234
|
|||||||||
Other
|
9,505
|
501
|
97
|
3
|
37
|
2
|
177
|
1
|
9,816
|
507
|
|||||||||
Commercial Banking
|
13,734
|
720
|
247
|
9
|
77
|
7
|
258
|
5
|
14,316
|
741
|
|||||||||
Insurance and Wealth
|
1
|
-
|
12
|
1
|
-
|
-
|
-
|
-
|
13
|
1
|
|||||||||
Central items
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||
Total
|
41,423
|
1,670
|
5,917
|
384
|
2,145
|
173
|
2,174
|
152
|
51,659
|
2,379
|
Up to date
|
1-30 days
past due2
|
Over 30 days past due
|
Total
|
||||||||||||||||
PD movements
|
Other1
|
||||||||||||||||||
Gross
lending
|
ECL3
|
Gross
lending
|
ECL3
|
Gross
lending
|
ECL3
|
Gross
lending
|
ECL3
|
Gross
lending
|
ECL3
|
||||||||||
At 30 June 2021
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|||||||||
UK Mortgages
|
27,971
|
305
|
4,606
|
172
|
2,540
|
69
|
2,753
|
134
|
37,870
|
680
|
|||||||||
Credit cards
|
2,636
|
366
|
188
|
69
|
77
|
23
|
30
|
16
|
2,931
|
474
|
|||||||||
Loans and overdrafts
|
854
|
162
|
396
|
54
|
127
|
43
|
36
|
18
|
1,413
|
277
|
|||||||||
UK Motor Finance
|
966
|
47
|
1,148
|
39
|
122
|
29
|
36
|
14
|
2,272
|
129
|
|||||||||
Other
|
494
|
58
|
586
|
33
|
64
|
9
|
59
|
5
|
1,203
|
105
|
|||||||||
Retail
|
32,921
|
938
|
6,924
|
367
|
2,930
|
173
|
2,914
|
187
|
45,689
|
1,665
|
|||||||||
SME
|
2,866
|
118
|
178
|
6
|
24
|
2
|
71
|
3
|
3,139
|
129
|
|||||||||
Other
|
5,028
|
281
|
89
|
1
|
56
|
3
|
92
|
1
|
5,265
|
286
|
|||||||||
Commercial Banking
|
7,894
|
399
|
267
|
7
|
80
|
5
|
163
|
4
|
8,404
|
415
|
|||||||||
Insurance and Wealth
|
17
|
-
|
18
|
1
|
-
|
-
|
1
|
-
|
36
|
1
|
|||||||||
Central items
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||
Total
|
40,832
|
1,337
|
7,209
|
375
|
3,010
|
178
|
3,078
|
191
|
54,129
|
2,081
|
|||||||||
At 31 December 2020
|
|||||||||||||||||||
UK Mortgages
|
28,049
|
354
|
4,067
|
189
|
2,663
|
82
|
3,103
|
173
|
37,882
|
798
|
|||||||||
Credit cards
|
2,916
|
422
|
220
|
78
|
92
|
28
|
36
|
20
|
3,264
|
548
|
|||||||||
Loans and overdrafts
|
959
|
209
|
388
|
68
|
126
|
45
|
46
|
22
|
1,519
|
344
|
|||||||||
UK Motor Finance
|
724
|
62
|
1,321
|
55
|
132
|
37
|
39
|
17
|
2,216
|
171
|
|||||||||
Other
|
512
|
56
|
651
|
44
|
69
|
14
|
72
|
10
|
1,304
|
124
|
|||||||||
Retail
|
33,160
|
1,103
|
6,647
|
434
|
3,082
|
206
|
3,296
|
242
|
46,185
|
1,985
|
|||||||||
SME
|
4,229
|
219
|
150
|
6
|
40
|
5
|
81
|
4
|
4,500
|
234
|
|||||||||
Other
|
9,505
|
501
|
97
|
3
|
37
|
2
|
177
|
1
|
9,816
|
507
|
|||||||||
Commercial Banking
|
13,734
|
720
|
247
|
9
|
77
|
7
|
258
|
5
|
14,316
|
741
|
|||||||||
Insurance and Wealth
|
1
|
-
|
12
|
1
|
-
|
-
|
-
|
-
|
13
|
1
|
|||||||||
Central items
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||
Total
|
46,895
|
1,823
|
6,906
|
444
|
3,159
|
213
|
3,554
|
247
|
60,514
|
2,727
|
Probability-
weighted
|
Upside
|
Base case
|
Downside
|
Severe
downside
|
||||||||||
Statutory basis
|
£m
|
£m
|
£m
|
£m
|
£m
|
|||||||||
UK Mortgages
|
905
|
544
|
684
|
1,100
|
2,064
|
|||||||||
Other Retail
|
2,053
|
1,896
|
2,009
|
2,152
|
2,355
|
|||||||||
Commercial Banking
|
1,650
|
1,395
|
1,527
|
1,799
|
2,340
|
|||||||||
Other
|
450
|
448
|
450
|
450
|
454
|
|||||||||
At 30 June 2021
|
5,058
|
4,283
|
4,670
|
5,501
|
7,213
|
|||||||||
UK Mortgages
|
1,027
|
614
|
804
|
1,237
|
2,306
|
|||||||||
Other Retail
|
2,368
|
2,181
|
2,310
|
2,487
|
2,745
|
|||||||||
Commercial Banking
|
2,402
|
1,910
|
2,177
|
2,681
|
3,718
|
|||||||||
Other
|
450
|
448
|
450
|
450
|
456
|
|||||||||
At 31 December 2020
|
6,247
|
5,153
|
5,741
|
6,855
|
9,225
|
Probability-
weighted
|
Upside
|
Base case
|
Downside
|
Severe
downside
|
||||||||||
Underlying basis
|
£m
|
£m
|
£m
|
£m
|
£m
|
|||||||||
UK Mortgages
|
1,406
|
1,045
|
1,185
|
1,601
|
2,565
|
|||||||||
Other Retail
|
2,076
|
1,919
|
2,032
|
2,175
|
2,378
|
|||||||||
Commercial Banking
|
1,650
|
1,395
|
1,527
|
1,799
|
2,340
|
|||||||||
Other
|
450
|
448
|
450
|
450
|
454
|
|||||||||
At 30 June 2021
|
5,582
|
4,807
|
5,194
|
6,025
|
7,737
|
|||||||||
UK Mortgages
|
1,605
|
1,192
|
1,382
|
1,815
|
2,884
|
|||||||||
Other Retail
|
2,403
|
2,216
|
2,345
|
2,522
|
2,780
|
|||||||||
Commercial Banking
|
2,402
|
1,910
|
2,177
|
2,681
|
3,718
|
|||||||||
Other
|
450
|
448
|
450
|
450
|
456
|
|||||||||
At 31 December 2020
|
6,860
|
5,766
|
6,354
|
7,468
|
9,838
|
At 30 June 20211
|
At 31 Dec 20201
|
||
£m
|
£m
|
||
Mainstream
|
245,147
|
234,273
|
|
Buy-to-let
|
50,907
|
49,634
|
|
Specialist
|
10,067
|
10,899
|
|
Total
|
306,121
|
294,806
|
Number of cases
|
Total mortgage accounts
|
Value of loans1
|
Total mortgage balances
|
||||||||||||
At 30 June 2021
|
At 31 Dec 2020
|
At 30 June 2021
|
At 31 Dec 2020
|
At 30 June 2021
|
At 31 Dec 2020
|
At 30 June 2021
|
At 31 Dec 2020
|
||||||||
Cases
|
Cases
|
%
|
%
|
£m
|
£m
|
%
|
%
|
||||||||
Mainstream
|
23,967
|
25,014
|
1.3
|
1.4
|
2,728
|
2,777
|
1.1
|
1.2
|
|||||||
Buy-to-let
|
4,377
|
4,598
|
1.0
|
1.1
|
568
|
602
|
1.1
|
1.2
|
|||||||
Specialist
|
5,983
|
6,294
|
7.6
|
7.6
|
1,002
|
1,056
|
9.8
|
9.6
|
|||||||
Total
|
34,327
|
35,906
|
1.5
|
1.5
|
4,298
|
4,435
|
1.4
|
1.5
|
Mainstream
|
Buy-to-let
|
Specialist
|
Total
|
||||
At 30 June 2021
|
%
|
%
|
%
|
%
|
|||
Less than 60%
|
55.4
|
65.6
|
75.5
|
57.8
|
|||
60% to 70%
|
18.9
|
25.0
|
14.9
|
19.8
|
|||
70% to 80%
|
18.5
|
8.7
|
5.0
|
16.4
|
|||
80% to 90%
|
6.8
|
0.4
|
1.5
|
5.6
|
|||
90% to 100%
|
0.2
|
0.1
|
1.0
|
0.2
|
|||
Greater than 100%
|
0.2
|
0.2
|
2.1
|
0.2
|
|||
Total
|
100.0
|
100.0
|
100.0
|
100.0
|
|||
Average loan to value1:
|
|||||||
Stock of residential mortgages
|
42.2
|
48.8
|
39.2
|
43.1
|
|||
New residential lending
|
63.6
|
60.2
|
n/a
|
63.1
|
At 31 December 2020
|
|||||||
Less than 60%
|
53.8
|
61.5
|
70.1
|
55.8
|
|||
60% to 70%
|
18.3
|
25.0
|
16.1
|
19.3
|
|||
70% to 80%
|
17.8
|
12.1
|
8.0
|
16.5
|
|||
80% to 90%
|
9.6
|
0.9
|
2.3
|
7.8
|
|||
90% to 100%
|
0.3
|
0.2
|
1.0
|
0.3
|
|||
Greater than 100%
|
0.2
|
0.3
|
2.5
|
0.3
|
|||
Total
|
100.0
|
100.0
|
100.0
|
100.0
|
|||
Average loan to value1:
|
|||||||
Stock of residential mortgages
|
42.5
|
49.7
|
40.9
|
43.5
|
|||
New residential lending
|
65.1
|
58.2
|
n/a
|
63.9
|
At 30 June 2021
|
At 31 December 2020
|
|||||||||||||||
Drawn
|
Undrawn
|
Drawn and undrawn
|
Drawn as a % of loans and advances
|
Drawn
|
Undrawn
|
Drawn and undrawn
|
Drawn as a % of loans and advances
|
|||||||||
£bn
|
£bn
|
£bn
|
%
|
£bn
|
£bn
|
£bn
|
%
|
|||||||||
Retail non-food
|
2.1
|
1.4
|
3.5
|
0.4
|
2.1
|
1.7
|
3.8
|
0.4
|
||||||||
Automotive dealerships2
|
1.3
|
2.1
|
3.4
|
0.2
|
1.8
|
2.0
|
3.8
|
0.4
|
||||||||
Construction
|
0.8
|
1.5
|
2.3
|
0.2
|
0.8
|
1.7
|
2.5
|
0.2
|
||||||||
Passenger transport
|
1.4
|
0.7
|
2.1
|
0.3
|
1.1
|
1.1
|
2.2
|
0.2
|
||||||||
Hotels
|
1.5
|
0.3
|
1.8
|
0.3
|
1.8
|
0.3
|
2.1
|
0.4
|
||||||||
Leisure
|
0.6
|
0.6
|
1.2
|
0.1
|
0.6
|
0.7
|
1.3
|
0.1
|
||||||||
Restaurants and bars
|
0.5
|
0.4
|
0.9
|
0.1
|
0.6
|
0.5
|
1.1
|
0.1
|
||||||||
Total
|
8.2
|
7.0
|
15.2
|
1.6
|
8.8
|
8.0
|
16.8
|
1.7
|
At 30 June 2021
|
At 31 Dec 2020
|
Change
|
|||||
£bn
|
£bn
|
%
|
|||||
Group funding position
|
|||||||
Loans and advances to customers1
|
447.7
|
440.2
|
2
|
||||
Loans and advances to banks2
|
7.1
|
7.8
|
(9)
|
||||
Debt securities at amortised cost
|
5.0
|
5.4
|
(7)
|
||||
Reverse repurchase agreements - non-trading
|
56.3
|
61.3
|
(8)
|
||||
Financial assets at fair value through other comprehensive income
|
26.2
|
27.6
|
(5)
|
||||
Cash and balances at central banks
|
79.0
|
73.3
|
8
|
||||
Other assets3
|
258.4
|
255.7
|
1
|
||||
Total Group assets
|
879.7
|
871.3
|
1
|
||||
Less other liabilities3
|
(232.1)
|
(233.6)
|
(1)
|
||||
Funding requirements
|
647.6
|
637.7
|
2
|
||||
Customer deposits4
|
474.4
|
450.7
|
5
|
||||
Wholesale funding5
|
103.3
|
109.4
|
(6)
|
||||
Repurchase agreements - non-trading
|
9.3
|
14.5
|
(36)
|
||||
Term funding scheme6
|
8.7
|
13.7
|
(36)
|
||||
Total equity
|
51.9
|
49.4
|
5
|
||||
Funding sources
|
647.6
|
637.7
|
2
|
Included
in funding
analysis
|
Repos
and cash
collateral
received by
Insurance
|
Fair value
and other
accounting
methods
|
Balance
sheet
|
||||
At 30 June 2021
|
£bn
|
£bn
|
£bn
|
£bn
|
|||
Deposits from banks
|
5.9
|
14.6
|
0.2
|
20.7
|
|||
Debt securities in issue
|
84.0
|
-
|
(2.7)
|
81.3
|
|||
Subordinated liabilities
|
13.4
|
-
|
0.1
|
13.5
|
|||
Total wholesale funding
|
103.3
|
14.6
|
|||||
Customer deposits
|
474.4
|
7.9
|
-
|
482.3
|
|||
Total
|
577.7
|
22.5
|
|||||
At 31 December 2020
|
|||||||
Deposits from banks
|
6.1
|
24.3
|
1.1
|
31.5
|
|||
Debt securities in issue
|
89.7
|
-
|
(2.3)
|
87.4
|
|||
Subordinated liabilities
|
13.6
|
-
|
0.7
|
14.3
|
|||
Total wholesale funding
|
109.4
|
24.3
|
|||||
Customer deposits
|
450.7
|
9.4
|
-
|
460.1
|
|||
Total
|
560.1
|
33.7
|
Less
than one
month
|
One to
three
months
|
Three
to six
months
|
Six
to nine
months
|
Nine
months
to one
year
|
One to
two years
|
Two to
five years
|
More than
five years
|
Total at30 June 2021
|
Total at 31 Dec 2020
|
|||||||||||
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
|||||||||||
Deposits from banks
|
3.3
|
1.4
|
0.6
|
-
|
0.1
|
0.2
|
0.3
|
-
|
5.9
|
6.1
|
||||||||||
Debt securities in issue:
|
||||||||||||||||||||
Certificates of deposit
|
0.4
|
0.8
|
1.1
|
1.1
|
0.4
|
0.4
|
-
|
-
|
4.2
|
8.0
|
||||||||||
Commercial paper
|
4.2
|
5.8
|
1.8
|
0.5
|
-
|
-
|
-
|
-
|
12.3
|
8.1
|
||||||||||
Medium-term notes
|
1.0
|
0.3
|
1.6
|
2.3
|
1.0
|
8.1
|
19.0
|
12.1
|
45.4
|
47.5
|
||||||||||
Covered bonds
|
1.3
|
0.7
|
0.4
|
1.0
|
1.1
|
5.5
|
5.7
|
3.9
|
19.6
|
23.2
|
||||||||||
Securitisation
|
0.4
|
0.2
|
0.5
|
-
|
0.2
|
1.2
|
-
|
-
|
2.5
|
2.9
|
||||||||||
7.3
|
7.8
|
5.4
|
4.9
|
2.7
|
15.2
|
24.7
|
16.0
|
84.0
|
89.7
|
|||||||||||
Subordinated liabilities
|
-
|
-
|
-
|
-
|
-
|
1.1
|
6.3
|
6.0
|
13.4
|
13.6
|
||||||||||
Total wholesale funding1
|
10.6
|
9.2
|
6.0
|
4.9
|
2.8
|
16.5
|
31.3
|
22.0
|
103.3
|
109.4
|
Sterling
|
US Dollar
|
Euro
|
Other
currencies
|
Total
|
|||||
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
|||||
Medium-term notes
|
-
|
1.5
|
-
|
-
|
1.5
|
||||
Covered bonds
|
-
|
-
|
-
|
-
|
-
|
||||
Private placements
|
0.1
|
-
|
-
|
-
|
0.1
|
||||
Subordinated liabilities
|
0.5
|
-
|
-
|
-
|
0.5
|
||||
Total issuance
|
0.6
|
1.5
|
-
|
-
|
2.1
|
Average
20211
|
Average
20202
|
Change
|
|||
£bn
|
£bn
|
%
|
|||
Level 1
|
|||||
Cash and central bank reserves
|
71.7
|
69.3
|
3
|
||
High quality government/MDB/agency bonds3
|
63.3
|
68.1
|
(7)
|
||
High quality covered bonds
|
2.8
|
2.9
|
(3)
|
||
Total
|
137.8
|
140.3
|
(2)
|
||
Level 24
|
1.3
|
1.4
|
(7)
|
||
Total LCR eligible assets
|
139.1
|
141.7
|
(2)
|
Transitional
|
Fully loaded
|
||||||
At 30 June 2021
|
At 31 Dec 2020
|
At 30 June 2021
|
At 31 Dec 2020
|
||||
£m
|
£m
|
£m
|
£m
|
||||
Common equity tier 1
|
|||||||
Shareholders' equity per balance sheet
|
45,761
|
43,278
|
45,761
|
43,278
|
|||
Adjustment to retained earnings for foreseeable dividends
|
(710)
|
(404)
|
(710)
|
(404)
|
|||
Adjustment to retained earnings for IFRS 9 transitional arrangements
|
1,311
|
1,958
|
1,311
|
1,958
|
|||
Deconsolidation adjustments1
|
2,583
|
2,333
|
2,583
|
2,333
|
|||
Cash flow hedging reserve and other adjustments
|
(695)
|
(1,785)
|
(695)
|
(1,785)
|
|||
48,250
|
45,380
|
48,250
|
45,380
|
||||
less: deductions from common equity tier 1
|
|||||||
Goodwill and other intangible assets
|
(3,332)
|
(3,120)
|
(3,332)
|
(3,120)
|
|||
Prudent valuation adjustment
|
(502)
|
(445)
|
(502)
|
(445)
|
|||
Removal of defined benefit pension surplus
|
(2,209)
|
(1,322)
|
(2,209)
|
(1,322)
|
|||
Significant investments1
|
(4,073)
|
(4,109)
|
(4,073)
|
(4,109)
|
|||
Deferred tax assets
|
(4,609)
|
(3,562)
|
(4,609)
|
(3,562)
|
|||
Common equity tier 1 capital2
|
33,525
|
32,822
|
33,525
|
32,822
|
|||
Additional tier 1
|
|||||||
Other equity instruments
|
5,879
|
5,881
|
5,879
|
5,881
|
|||
Preference shares and preferred securities3
|
2,472
|
2,705
|
-
|
-
|
|||
Transitional limit and other adjustments
|
(1,921)
|
(1,604)
|
-
|
-
|
|||
6,430
|
6,982
|
5,879
|
5,881
|
||||
less: deductions from tier 1
|
|||||||
Significant investments1
|
(1,100)
|
(1,138)
|
(1,100)
|
-
|
|||
Total tier 1 capital2
|
38,855
|
38,666
|
38,304
|
38,703
|
|||
Tier 2
|
|||||||
Other subordinated liabilities3
|
11,055
|
11,556
|
11,055
|
11,556
|
|||
Deconsolidation of instruments issued by insurance entities1
|
(1,737)
|
(1,892)
|
(1,737)
|
(1,892)
|
|||
Adjustments for transitional limit and non-eligible instruments
|
914
|
1,474
|
(1,243)
|
(1,346)
|
|||
Amortisation and other adjustments
|
(1,640)
|
(1,694)
|
(1,640)
|
(1,694)
|
|||
8,592
|
9,444
|
6,435
|
6,624
|
||||
less: deductions from tier 2
|
|||||||
Significant investments1
|
(966)
|
(942)
|
(966)
|
(2,080)
|
|||
Total capital resources2
|
46,481
|
47,168
|
43,773
|
43,247
|
|||
Risk-weighted assets (unaudited)
|
200,858
|
202,747
|
200,858
|
202,747
|
|||
Common equity tier 1 capital ratio
|
16.7%
|
16.2%
|
16.7%
|
16.2%
|
|||
Tier 1 capital ratio
|
19.3%
|
19.1%
|
19.1%
|
19.1%
|
|||
Total capital ratio
|
23.1%
|
23.3%
|
21.8%
|
21.3%
|
Common
equity tier 1
|
Additional
tier 1
|
Tier 2
|
Total
capital
|
||||
£m
|
£m
|
£m
|
£m
|
||||
At 31 December 2020
|
32,822
|
5,844
|
8,502
|
47,168
|
|||
Banking business profits1
|
4,025
|
-
|
-
|
4,025
|
|||
Foreseeable dividend accrual for the period2
|
(710)
|
-
|
-
|
(710)
|
|||
IFRS 9 transitional adjustment to retained earnings
|
(647)
|
-
|
-
|
(647)
|
|||
Pension contributions
|
(668)
|
-
|
-
|
(668)
|
|||
Prudent valuation adjustment
|
(57)
|
-
|
-
|
(57)
|
|||
Deferred tax asset
|
(1,047)
|
-
|
-
|
(1,047)
|
|||
Goodwill and other intangible assets
|
(212)
|
-
|
-
|
(212)
|
|||
Significant investments
|
36
|
38
|
(24)
|
50
|
|||
Movements in other equity, subordinated liabilities, other tier 2 items and related adjustments
|
-
|
(552)
|
(852)
|
(1,404)
|
|||
Distributions on other equity instruments
|
(213)
|
-
|
-
|
(213)
|
|||
Other movements3
|
196
|
-
|
-
|
196
|
|||
At 30 June 2021
|
33,525
|
5,330
|
7,626
|
46,481
|
Transitional1
|
|||||
At 30 June 2021
|
At 31 Dec 2020
|
||||
£m
|
£m
|
||||
Total capital resources (transitional basis)
|
46,481
|
47,168
|
|||
Ineligible AT1 and tier 2 instruments2
|
(235)
|
(582)
|
|||
Amortised portion of eligible tier 2 instruments issued by Lloyds Banking Group plc
|
420
|
194
|
|||
Other eligible liabilities issued by Lloyds Banking Group plc3
|
26,180
|
26,946
|
|||
Total MREL resources1
|
72,846
|
73,726
|
|||
Risk-weighted assets
|
200,858
|
202,747
|
|||
MREL ratio
|
36.3%
|
36.4%
|
|||
Leverage exposure measure
|
658,689
|
666,070
|
|||
MREL leverage ratio
|
11.1%
|
11.1%
|
At 30 June 2021
|
At 31 Dec 2020
|
|||||
£m
|
£m
|
|||||
Foundation Internal Ratings Based (IRB) Approach
|
48,137
|
50,435
|
||||
Retail IRB Approach
|
66,602
|
65,225
|
||||
Other IRB Approach
|
16,986
|
17,747
|
||||
IRB Approach
|
131,725
|
133,407
|
||||
Standardised (STA) Approach
|
21,787
|
23,596
|
||||
Credit risk
|
153,512
|
157,003
|
||||
Counterparty credit risk
|
4,999
|
5,630
|
||||
Contributions to the default funds of central counterparties
|
423
|
436
|
||||
Credit valuation adjustment risk
|
526
|
679
|
||||
Operational risk
|
24,573
|
24,865
|
||||
Market risk
|
4,516
|
2,207
|
||||
Risk-weighted assets
|
188,549
|
190,820
|
||||
Threshold risk-weighted assets1
|
12,309
|
11,927
|
||||
Total risk-weighted assets
|
200,858
|
202,747
|
Credit risk
IRB
|
Credit risk
STA
|
Credit risk
total1
|
Counterparty
credit risk2
|
Market
risk
|
Operational
risk
|
Total
|
||||||||
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
||||||||
Total risk-weighted assets at 31 December 2020
|
202,747
|
|||||||||||||
Less threshold risk-weighted assets3
|
(11,927)
|
|||||||||||||
Risk-weighted assets at 31 December 2020
|
133,407
|
23,596
|
157,003
|
6,745
|
2,207
|
24,865
|
190,820
|
|||||||
Asset size
|
(3,178)
|
(375)
|
(3,553)
|
(569)
|
-
|
-
|
(4,122)
|
|||||||
Asset quality
|
1,816
|
(110)
|
1,706
|
(193)
|
-
|
-
|
1,513
|
|||||||
Model updates
|
-
|
-
|
-
|
-
|
533
|
-
|
533
|
|||||||
Methodology and policy
|
(42)
|
(1,243)
|
(1,285)
|
-
|
-
|
-
|
(1,285)
|
|||||||
Acquisitions and disposals
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||
Movements in risk levels (market risk only)
|
-
|
-
|
-
|
-
|
51
|
-
|
51
|
|||||||
Foreign exchange movements
|
(278)
|
(81)
|
(359)
|
(35)
|
-
|
-
|
(394)
|
|||||||
Other
|
-
|
-
|
-
|
-
|
1,725
|
(292)
|
1,433
|
|||||||
Risk-weighted assets at 30 June 2021
|
131,725
|
21,787
|
153,512
|
5,948
|
4,516
|
24,573
|
188,549
|
|||||||
Threshold risk-weighted assets3
|
12,309
|
|||||||||||||
Total risk-weighted assets at 30 June 2021
|
200,858
|
Fully loaded
|
|||||
At 30 June 2021
|
At 31 Dec 2020
|
||||
£m
|
£m
|
||||
Total tier 1 capital for leverage ratio
|
|||||
Common equity tier 1 capital
|
33,525
|
32,822
|
|||
Additional tier 1 capital
|
4,779
|
5,881
|
|||
Total tier 1 capital
|
38,304
|
38,703
|
|||
Exposure measure
|
|||||
Statutory balance sheet assets
|
|||||
Derivative financial instruments
|
22,193
|
29,613
|
|||
Securities financing transactions
|
68,674
|
74,322
|
|||
Loans and advances and other assets
|
788,820
|
767,334
|
|||
Total assets
|
879,687
|
871,269
|
|||
Qualifying central bank claims
|
(73,140)
|
(67,093)
|
|||
Deconsolidation adjustments1
|
|||||
Derivative financial instruments
|
(622)
|
(1,549)
|
|||
Securities financing transactions
|
-
|
-
|
|||
Loans and advances and other assets
|
(180,198)
|
(171,183)
|
|||
Total deconsolidation adjustments
|
(180,820)
|
(172,732)
|
|||
Derivatives adjustments
|
|||||
Adjustments for regulatory netting
|
(8,851)
|
(12,444)
|
|||
Adjustments for cash collateral
|
(8,694)
|
(12,679)
|
|||
Net written credit protection
|
282
|
455
|
|||
Regulatory potential future exposure
|
13,216
|
12,535
|
|||
Total derivatives adjustments
|
(4,047)
|
(12,133)
|
|||
Securities financing transactions adjustments
|
1,319
|
1,713
|
|||
Off-balance sheet items
|
55,535
|
60,882
|
|||
Regulatory deductions and other adjustments2
|
(19,845)
|
(15,836)
|
|||
Total exposure measure
|
658,689
|
666,070
|
|||
Average exposure measure3
|
656,938
|
||||
UK leverage ratio
|
5.8%
|
5.8%
|
|||
Average UK leverage ratio3
|
5.9%
|
IFRS 9 full impact
|
|||
At 30 June 2021
|
At 31 Dec 2020
|
||
Common equity tier 1 (£m)
|
31,855
|
30,341
|
|
Transitional tier 1 (£m)
|
37,185
|
36,185
|
|
Transitional total capital (£m)
|
46,153
|
46,052
|
|
Total risk-weighted assets (£m)
|
200,234
|
201,800
|
|
Common equity tier 1 ratio (%)
|
15.9%
|
15.0%
|
|
Transitional tier 1 ratio (%)
|
18.6%
|
17.9%
|
|
Transitional total capital ratio (%)
|
23.0%
|
22.8%
|
|
UK leverage ratio exposure measure (£m)
|
657,019
|
663,590
|
|
UK leverage ratio (%)
|
5.6%
|
5.5%
|