Emerging risk theme | Concerns for the Group and key considerations |
Climate related responsibilities | The risks and resulting public perception of the Group’s ability and choices to support the UK’s transition to a low carbon economy. |
Customer propositions and societal expectations | Failure to manage and evolve the customer proposition appropriately, amidst a constantly changing demographic of consumers. |
Data ethics/ethical AI | The consequences of handling customer data unethically in relation to emerging technology, growing regulation, and how this may manifest across the Group’s different entities. |
Digital currencies | Failure to accurately understand and manage the usage of digital currencies by the public or the government, and how this may affect the Group’s operations and future strategy. |
Employee proposition | Inability of the Group to anticipate and hire for future skills aligned to evolving industry needs, or provide an attractive colleague proposition against the changing competition landscape. |
Future proof technology strategy | The rate at which the Group is able to adapt, invest and protect itself in relation to fast paced technology growth, alongside rising external expectations. |
Global economic and political environment | Increasing strain on the UK economy resulting from continued geopolitical and economic tensions, impacting the Group’s customers, partners and suppliers. |
Operational and infrastructure blackouts | Service impacts to the Group’s customers and colleagues due to economic, financial, biological, climate, technological or social challenges. |
Potential breakup of the UK | Failure to adequately prepare and assess the policy, operational and financial impacts to the Group as a result of countries in the UK becoming independent. |
UK economic environment | Inability to balance the long term social, regulatory and financial impacts of sustained poor economic activity within the UK, and consequent unattractiveness of the UK from external investors. |
Board Member | Board | Nomination and Governance Committee | Audit Committee | Board Risk Committee | Remuneration Committee | Responsible Business Committee |
Robin Budenberg | 9/9 (C) | 6/6 (C) | 7/7 | 4/4 | ||
Charlie Nunn | 9/9 | |||||
William Chalmers | 9/9 | |||||
Alan Dickinson | 9/9 | 6/6 | 6/6 | 10/10 | 7/7 (C) | 4/4 |
Sarah Bentley | 8/96 | 6/76 | ||||
Brendan Gilligan | 9/9 | 6/6 | 10/10 | |||
Nigel Hinshelwood | 9/9 | 6/6 | 6/6 | 10/10 | 7/7 | |
Sarah Legg | 9/9 | 6/6 (C) | 10/10 | 4/4 | ||
Lord Lupton | 8/95 | 4/4 | ||||
Amanda Mackenzie | 9/9 | 6/6 | 6/75 | 4/4 (C) | ||
Harmeen Mehta | 9/9 | |||||
Stuart Sinclair2 | 4/4 | 2/2 | 2/35 | 2/2 | ||
Cathy Turner3 | 2/2 | 2/2 | ||||
Scott Wheway4 | 3/3 | 2/2 | 3/45 | |||
Catherine Woods | 9/9 | 6/6 | 10/10 (C) | 7/7 |
Joined the Board | Left the Board | |
Scott Wheway | 1 August 2022 | |
Cathy Turner | 1 November 2022 | |
Stuart Sinclair | 12 May 2022 |
Content | Pages | |
Disclosures required under the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 | Statement of employee engagement | 2 to 4 |
Statement of other stakeholder engagement | 2 to 4 |
Committees | Risk focus |
Lloyds Banking Group and Ring-Fenced Banks Executive Committee (GEC) | Assists the Group Chief Executive in exercising their authority in relation to material matters having strategic, cross-business area or Group-wide implications. |
Lloyds Banking Group and Ring-Fenced Banks Risk Committees (GRC) | Responsible for the development, implementation and effectiveness of Lloyds Banking Group’s enterprise risk management framework, the clear articulation of the Group’s risk appetite and monitoring and reviewing of the Group’s aggregate risk exposures, control environment and concentrations of risk. |
Lloyds Banking Group and Ring-Fenced Banks Asset and Liability Committees (GALCO) | Responsible for the strategic direction of the Group’s assets and liabilities and the profit and loss implications of balance sheet management actions. The committee reviews and determines the appropriate allocation of capital, funding and liquidity, and market risk resources and makes appropriate trade-offs between risk and reward. |
Lloyds Banking Group and Ring-Fenced Banks Cost Management Committees | Leads and shapes the Group’s approach to cost management, ensuring appropriate governance and process over Group-wide cost management activities and effective control of the Group’s cost base. |
Lloyds Banking Group and Ring-Fenced Banks Contentious Regulatory Committees | Responsible for providing senior management oversight, challenge and accountability in connection with the Group’s engagement with contentious regulatory matters as agreed by the Group Chief Executive. |
Lloyds Banking Group and Ring-Fenced Banks Strategic Delivery Committees | Responsible for driving execution of the Group’s investment portfolio and strategic transformation agenda as agreed by the Group Chief Executive, including monitoring execution performance and progress against strategic objectives. To act as a clearing house to resolve issues on individual project areas and prioritisation across divisional and legal entity issues. Engaging in resolution of challenges that require cross-Group support to resolve, ensuring funding and project performance provides value for money for the Group, and autonomy is maintained alongside accountability for projects and platforms. |
Lloyds Banking Group and Ring-Fenced Banks Net Zero Committees | Responsible for providing direction and oversight of the Group’s environmental sustainability strategy, including particular focus on the net-zero transition and natural capital (biodiversity) strategy. Oversight of the Group’s approach to meeting external environmental commitments and targets, including but not limited to, progress in relation to the requirements of the Net- Zero Banking Alliance (NZBA). Recommending all external material commitments and targets in relation to environmental sustainability. |
Lloyds Banking Group and Ring-Fenced Banks Conduct Investigations Committee | Responsible for protecting and promoting the Group’s conduct, values and behaviours by taking action to rectify the most serious cases of misconduct within the Group, identifying themes and ensuring lessons are shared with the business. The Committee shall do this by making outcome decisions and recommendations (including sanctions) on investigations which have been referred to the Committee from the triage process, including the Independent Triage Panel and overseeing regular reviews of thematic outcomes and lessons learned. |
The Lloyds Banking Group and Ring-Fenced Banks Risk Committee is supported through escalation and ongoing reporting by divisional risk committees, cross-divisional committees addressing specific matters of Group-wide significance and the following second line of defence Risk committees which ensure effective oversight of risk management: | |
Lloyds Banking Group and Ring-Fenced Banks Market Risk Committee | Responsible for monitoring, oversight and challenge of market risk exposures across the Group. Reviews and proposes changes to the market risk management framework, and reviews the adequacy of data quality needed for managing market risks. It is also responsible for escalating issues of Group level significance to GEC level (usually via GALCO) relating to the management of the Group's market risks. |
Lloyds Banking Group and Ring-Fenced Banks Economic Crime Prevention Committee | Brings together accountable stakeholders and subject matter experts to ensure that the development and application of economic crime risk management complies with the Group's strategic aims, Group corporate responsibility, Group risk appetite and Group economic crime prevention (fraud, anti-money laundering, anti-bribery and sanctions) policy. It provides direction and appropriate focus on priorities to enhance the Group's economic crime risk management capabilities in line with business and customer objectives while aligning to the Group's target operating model. |
Lloyds Banking Group and Ring-Fenced Banks Financial Risk Committee | Responsible for overseeing, reviewing, challenging and recommending to GEC/Board Risk Committee/Board for Lloyds Banking Group and Ring-Fenced Bank (i) annual internal stress tests, (ii) all Prudential Regulation Authority (PRA) and any other regulatory stress tests, (iii) annual liquidity stress tests, (iv) reverse stress tests, (v) Individual Liquidity Adequacy Assessment (ILAA), (vi) Internal Capital Adequacy Assessment Process (ICAAP), (vii) Pillar 3, (viii) recovery/resolution plans, and (ix) relevant ad hoc stress tests or other analysis as and when required by the Committee. |
Committees | Risk focus |
Lloyds Banking Group and Ring-Fenced Banks Capital Risk Committee | Responsible for providing oversight of relevant capital matters within the Lloyds Banking Group, Ring-Fenced Bank and material subsidiaries, including latest capital position and plans, capital risk appetite proposals, Pillar 2 developments (including stress testing), recovery and resolution matters and the impact of regulatory reforms and developments specific to capital. |
Lloyds Banking Group and Ring-Fenced Banks Model Governance Committee | Responsible for supporting the Model Risk and Validation Director in fulfilling their responsibilities, from a Group-wide perspective, under the Lloyds Banking Group model governance policy through provision of debate, challenge and support of decisions. The committee will be held as required to facilitate approval of models, model changes and model related items as required by model policy, including items related to the governance framework as a whole and its application. |
Principal risk categories | Secondary risk categories | ||
Capital risk | – Capital | ||
Page 24 | |||
Change/execution risk | – Change/execution | ||
Page 29 | |||
Climate risk | – Climate | ||
Conduct risk | – Conduct | ||
Page 31 | |||
Credit risk | – Retail credit | – Commercial credit | |
Page 33 | |||
Data risk | – Data | ||
Page 47 | |||
Funding and liquidity risk | – Funding and liquidity | ||
Page 48 | |||
Market risk | – Trading book | – Pensions | |
Page 52 | – Banking book | ||
Model risk | – Model | ||
Page 56 | |||
Operational risk | – Business process | – Financial reporting | – Security |
Page 57 | – Economic crime financial | – Governance | – Sourcing and supply chain management |
– Economic crime fraud | – Internal service provision | ||
– External service provision | – IT systems | ||
Operational resilience risk | – Operational resilience | ||
Page 59 | |||
People risk | – People | – Health and safety | |
Page 60 | |||
Regulatory and legal risk | – Regulatory compliance | – Legal | |
Page 61 | |||
Strategic risk | – Strategic | ||
Page 62 |
At 31 Dec 2022 £m | At 31 Dec 2021 £m | |
Common equity tier 1 | ||
Shareholders’ equity per balance sheet | 34,709 | 36,410 |
Adjustment to retained earnings for foreseeable dividends | (1,900) | – |
Cash flow hedging reserve | 5,168 | 451 |
Other adjustments1 | 131 | 770 |
38,108 | 37,631 | |
less: deductions from common equity tier 1 | ||
Goodwill and other intangible assets | (4,783) | (2,870) |
Prudent valuation adjustment | (132) | (159) |
Removal of defined benefit pension surplus | (2,804) | (3,200) |
Deferred tax assets | (4,463) | (4,498) |
Common equity tier 1 capital | 25,926 | 26,904 |
Additional tier 1 | ||
Additional tier 1 instruments | 4,268 | 4,949 |
Total tier 1 capital | 30,194 | 31,853 |
Tier 2 | ||
Tier 2 instruments | 5,318 | 6,322 |
Other adjustments | 303 | (266) |
Total tier 2 capital | 5,621 | 6,056 |
Total capital resources2 | 35,815 | 37,909 |
Risk-weighted assets (unaudited) | 174,902 | 161,576 |
Common equity tier 1 capital ratio (unaudited) | 14.8% | 16.7% |
Tier 1 capital ratio (unaudited) | 17.3% | 19.7% |
Total capital ratio2 (unaudited) | 20.5% | 23.5% |
Common equity tier 1 £m | Additional tier 1 £m | Tier 2 £m | Total capital £m | ||||
At 31 December 2021 | 26,904 | 4,949 | 6,056 | 37,909 | |||
Profit for the year | 4,794 | – | – | 4,794 | |||
Foreseeable dividend accrual | (1,900) | – | – | (1,900) | |||
IFRS 9 transitional adjustment to retained earnings | (227) | – | – | (227) | |||
Pension deficit contributions | (1,611) | – | – | (1,611) | |||
Fair value through other comprehensive income reserve | (31) | – | – | (31) | |||
Prudent valuation adjustment | 27 | – | – | 27 | |||
Deferred tax asset | 35 | – | – | 35 | |||
Goodwill and other intangible assets | (1,913) | – | – | (1,913) | |||
Movements in other equity, subordinated liabilities, other tier 2 items and related adjustments | – | (681) | (435) | (1,116) | |||
Distributions on other equity instruments | (241) | – | – | (241) | |||
Other movements | 89 | – | – | 89 | |||
At 31 December 2022 | 25,926 | 4,268 | 5,621 | 35,815 |
At 31 Dec 2022 £m | At 31 Dec 2021 £m | ||
Foundation Internal Ratings Based (IRB) Approach | 37,907 | 39,548 | |
Retail IRB Approach | 81,066 | 65,435 | |
Other IRB Approach | 5,834 | 7,117 | |
IRB Approach | 124,807 | 112,100 | |
Standardised (STA) Approach1 | 19,795 | 19,861 | |
Credit risk | 144,602 | 131,961 | |
Securitisation1 | 5,899 | 5,373 | |
Counterparty credit risk | 773 | 1,257 | |
Credit valuation adjustment risk | 342 | 207 | |
Operational risk | 23,204 | 22,575 | |
Market risk | 82 | 203 | |
Risk-weighted assets | 174,902 | 161,576 | |
Of which threshold risk-weighted assets2 | 1,864 | 2,318 |
At 31 Dec 2022 £m | At 31 Dec 2021 £m | ||
Total tier 1 capital (fully loaded) | 30,194 | 31,172 | |
Exposure measure | |||
Statutory balance sheet assets | |||
Derivative financial instruments | 3,857 | 5,511 | |
Securities financing transactions | 39,261 | 49,708 | |
Loans and advances and other assets | 573,810 | 547,630 | |
Total assets | 616,928 | 602,849 | |
Qualifying central bank claims | (71,747) | (50,824) | |
Derivatives adjustments | (2,960) | 185 | |
Securities financing transactions adjustments | 1,939 | 1,321 | |
Off-balance sheet items | 33,863 | 49,349 | |
Amounts already deducted from Tier 1 capital | (11,724) | (9,994) | |
Other regulatory adjustments1 | (6,714) | (8,236) | |
Total exposure measure | 559,585 | 584,650 | |
Average exposure measure2 | 572,388 | ||
UK leverage ratio | 5.4% | 5.3% | |
Average UK leverage ratio2 | 5.4% | ||
Leverage exposure measure (including central bank claims) | 631,332 | 635,474 | |
Leverage ratio (including central bank claims) | 4.8% | 4.9% |
IFRS 9 full impact | |||
At 31 Dec 2022 | At 31 Dec 2021 | ||
Common equity tier 1 (£m) | 25,515 | 26,253 | |
Transitional tier 1 (£m) | 29,783 | 31,202 | |
Transitional total capital (£m) | 35,855 | 38,039 | |
Total risk-weighted assets (£m) | 174,977 | 161,805 | |
Common equity tier 1 ratio (%) | 14.6% | 16.2% | |
Transitional tier 1 ratio (%) | 17.0% | 19.3% | |
Transitional total capital ratio (%) | 20.5% | 23.5% | |
UK leverage ratio exposure measure (£m) | 559,175 | 584,000 | |
UK leverage ratio (%) | 5.3% | 5.2% | |
Loans and advances to customers £m | Loans and advances to banks £m | Debt securities £m | Financial assets at fair value through other comprehensive income £m | Undrawn balances £m | 2022 £m | 20211 £m | |||||||
UK mortgages | 295 | – | – | – | – | 295 | (273) | ||||||
Credit cards | 556 | – | – | – | 15 | 571 | (52) | ||||||
Loans and overdrafts | 452 | – | – | – | 47 | 499 | 39 | ||||||
UK Motor Finance | (2) | – | – | – | – | (2) | (151) | ||||||
Other | 10 | – | – | – | – | 10 | (10) | ||||||
Retail | 1,311 | – | – | – | 62 | 1,373 | (447) | ||||||
Small and Medium Businesses | 190 | – | – | – | (2) | 188 | (340) | ||||||
Corporate and Institutional Banking | 217 | 9 | 6 | – | 51 | 283 | (529) | ||||||
Commercial Banking | 407 | 9 | 6 | – | 49 | 471 | (869) | ||||||
Other | (398) | – | – | 6 | – | (392) | (2) | ||||||
Total impairment charge (credit) | 1,320 | 9 | 6 | 6 | 111 | 1,452 | (1,318) |
At 31 Dec 2022 £m | At 31 Dec 2021 £m | ||
Customer related balances | |||
Drawn | 4,475 | 3,804 | |
Undrawn | 304 | 194 | |
4,779 | 3,998 | ||
Loans and advances to banks | 9 | – | |
Debt securities | 8 | 2 | |
Total expected credit loss allowance | 4,796 | 4,000 |
Opening ECL at 31 Dec 20211 £m | Write-offs and other2 £m | Income statement charge (credit) £m | Net ECL increase (decrease) £m | Closing ECL at 31 Dec 2022 £m | |||||||
UK mortgages | 837 | 77 | 295 | 372 | 1,209 | ||||||
Credit cards | 521 | (329) | 571 | 242 | 763 | ||||||
Loans and overdrafts | 445 | (266) | 499 | 233 | 678 | ||||||
UK Motor Finance | 298 | (44) | (2) | (46) | 252 | ||||||
Other | 82 | (6) | 10 | 4 | 86 | ||||||
Retail | 2,183 | (568) | 1,373 | 805 | 2,988 | ||||||
Small and Medium Businesses | 459 | (98) | 188 | 90 | 549 | ||||||
Corporate and Institutional Banking | 957 | 18 | 283 | 301 | 1,258 | ||||||
Commercial Banking | 1,416 | (80) | 471 | 391 | 1,807 | ||||||
Other | 401 | (8) | (392) | (400) | 1 | ||||||
Total3 | 4,000 | (656) | 1,452 | 796 | 4,796 | ||||||
Stage 1 £m | Stage 2 £m | Stage 3 £m | POCI £m | Total £m | Stage 2 as % of total % | Stage 3 as % of total % | |||||||
At 31 December 2022 | |||||||||||||
Loans and advances to customers | |||||||||||||
UK mortgages | 257,517 | 41,783 | 3,416 | 9,622 | 312,338 | 13.4 | 1.1 | ||||||
Credit cards | 11,416 | 3,287 | 289 | – | 14,992 | 21.9 | 1.9 | ||||||
Loans and overdrafts | 8,357 | 1,713 | 247 | – | 10,317 | 16.6 | 2.4 | ||||||
UK Motor Finance | 12,174 | 2,245 | 154 | – | 14,573 | 15.4 | 1.1 | ||||||
Other | 13,990 | 643 | 157 | – | 14,790 | 4.3 | 1.1 | ||||||
Retail | 303,454 | 49,671 | 4,263 | 9,622 | 367,010 | 13.5 | 1.2 | ||||||
Small and Medium Businesses | 30,781 | 5,654 | 1,760 | – | 38,195 | 14.8 | 4.6 | ||||||
Corporate and Institutional Banking | 31,729 | 4,778 | 1,588 | – | 38,095 | 12.5 | 4.2 | ||||||
Commercial Banking | 62,510 | 10,432 | 3,348 | – | 76,290 | 13.7 | 4.4 | ||||||
Other1 | (3,198) | – | – | – | (3,198) | ||||||||
Total gross lending | 362,766 | 60,103 | 7,611 | 9,622 | 440,102 | 13.7 | 1.7 | ||||||
ECL allowance on drawn balances | (678) | (1,792) | (1,752) | (253) | (4,475) | ||||||||
Net balance sheet carrying value | 362,088 | 58,311 | 5,859 | 9,369 | 435,627 | ||||||||
Customer related ECL allowance (drawn and undrawn) | |||||||||||||
UK mortgages | 92 | 553 | 311 | 253 | 1,209 | ||||||||
Credit cards | 173 | 477 | 113 | – | 763 | ||||||||
Loans and overdrafts | 185 | 367 | 126 | – | 678 | ||||||||
UK Motor Finance2 | 95 | 76 | 81 | – | 252 | ||||||||
Other | 16 | 18 | 52 | – | 86 | ||||||||
Retail | 561 | 1,491 | 683 | 253 | 2,988 | ||||||||
Small and Medium Businesses | 129 | 271 | 149 | – | 549 | ||||||||
Corporate and Institutional Banking | 110 | 208 | 924 | – | 1,242 | ||||||||
Commercial Banking | 239 | 479 | 1,073 | – | 1,791 | ||||||||
Other | – | – | – | – | – | ||||||||
Total | 800 | 1,970 | 1,756 | 253 | 4,779 | ||||||||
Customer related ECL allowance (drawn and undrawn) as a percentage of loans and advances to customers3 | |||||||||||||
UK mortgages | – | 1.3 | 9.1 | 2.6 | 0.4 | ||||||||
Credit cards | 1.5 | 14.5 | 50.9 | – | 5.1 | ||||||||
Loans and overdrafts | 2.2 | 21.4 | 64.6 | – | 6.6 | ||||||||
UK Motor Finance | 0.8 | 3.4 | 52.6 | – | 1.7 | ||||||||
Other | 0.1 | 2.8 | 33.1 | – | 0.6 | ||||||||
Retail | 0.2 | 3.0 | 16.5 | 2.6 | 0.8 | ||||||||
Small and Medium Businesses | 0.4 | 4.8 | 12.9 | – | 1.5 | ||||||||
Corporate and Institutional Banking | 0.3 | 4.4 | 58.2 | – | 3.3 | ||||||||
Commercial Banking | 0.4 | 4.6 | 39.2 | – | 2.4 | ||||||||
Other | – | – | – | ||||||||||
Total | 0.2 | 3.3 | 25.5 | 2.6 | 1.1 | ||||||||
Stage 1 £m | Stage 2 £m | Stage 3 £m | POCI £m | Total £m | Stage 2 as % of total % | Stage 3 as % of total % | |||||||
At 31 December 2021 | |||||||||||||
Loans and advances to customers | |||||||||||||
UK mortgages | 273,629 | 21,798 | 1,940 | 10,977 | 308,344 | 7.1 | 0.6 | ||||||
Credit cards1 | 11,918 | 2,077 | 292 | – | 14,287 | 14.5 | 2.0 | ||||||
Loans and overdrafts | 8,181 | 1,105 | 271 | – | 9,557 | 11.6 | 2.8 | ||||||
UK Motor Finance | 12,247 | 1,828 | 201 | – | 14,276 | 12.8 | 1.4 | ||||||
Other1 | 11,198 | 593 | 169 | – | 11,960 | 5.0 | 1.4 | ||||||
Retail | 317,173 | 27,401 | 2,873 | 10,977 | 358,424 | 7.6 | 0.8 | ||||||
Small and Medium Businesses1 | 36,134 | 4,992 | 1,747 | – | 42,873 | 11.6 | 4.1 | ||||||
Corporate and Institutional Banking1 | 29,526 | 2,491 | 1,786 | – | 33,803 | 7.4 | 5.3 | ||||||
Commercial Banking | 65,660 | 7,483 | 3,533 | – | 76,676 | 9.8 | 4.6 | ||||||
Other1,2 | (467) | – | – | – | (467) | ||||||||
Total gross lending | 382,366 | 34,884 | 6,406 | 10,977 | 434,633 | 8.0 | 1.5 | ||||||
ECL allowance on drawn balances | (909) | (1,112) | (1,573) | (210) | (3,804) | ||||||||
Net balance sheet carrying value | 381,457 | 33,772 | 4,833 | 10,767 | 430,829 | ||||||||
Customer related ECL allowance (drawn and undrawn) | |||||||||||||
UK mortgages | 49 | 394 | 184 | 210 | 837 | ||||||||
Credit cards1 | 144 | 249 | 128 | – | 521 | ||||||||
Loans and overdrafts | 136 | 170 | 139 | – | 445 | ||||||||
UK Motor Finance3 | 108 | 74 | 116 | – | 298 | ||||||||
Other1 | 15 | 15 | 52 | – | 82 | ||||||||
Retail | 452 | 902 | 619 | 210 | 2,183 | ||||||||
Small and Medium Businesses1 | 104 | 176 | 179 | – | 459 | ||||||||
Corporate and Institutional Banking1 | 56 | 120 | 780 | – | 956 | ||||||||
Commercial Banking | 160 | 296 | 959 | – | 1,415 | ||||||||
Other1 | 400 | – | – | – | 400 | ||||||||
Total | 1,012 | 1,198 | 1,578 | 210 | 3,998 | ||||||||
Customer related ECL allowance (drawn and undrawn) as a percentage of loans and advances to customers4 | |||||||||||||
UK mortgages | – | 1.8 | 9.5 | 1.9 | 0.3 | ||||||||
Credit cards1 | 1.2 | 12.0 | 56.9 | – | 3.7 | ||||||||
Loans and overdrafts | 1.7 | 15.4 | 67.5 | – | 4.7 | ||||||||
UK Motor Finance | 0.9 | 4.0 | 57.7 | – | 2.1 | ||||||||
Other1 | 0.1 | 2.5 | 30.8 | – | 0.7 | ||||||||
Retail | 0.1 | 3.3 | 22.6 | 1.9 | 0.6 | ||||||||
Small and Medium Businesses1 | 0.3 | 3.5 | 14.5 | – | 1.1 | ||||||||
Corporate and Institutional Banking1 | 0.2 | 4.8 | 43.7 | – | 2.8 | ||||||||
Commercial Banking | 0.2 | 4.0 | 31.8 | – | 1.9 | ||||||||
Other1 | – | – | – | ||||||||||
Total | 0.3 | 3.4 | 27.4 | 1.9 | 0.9 | ||||||||
Up to date | 1-30 days past due2 | Over 30 days past due | |||||||||||||||||||||
PD movements | Other1 | ||||||||||||||||||||||
Gross lending £m | ECL3 £m | As % of gross lending % | Gross lending £m | ECL3 £m | As % of gross lending % | Gross lending £m | ECL3 £m | As % of gross lending % | Gross lending £m | ECL3 £m | As % of gross lending % | ||||||||||||
At 31 December 2022 | |||||||||||||||||||||||
UK mortgages | 29,718 | 263 | 0.9 | 9,613 | 160 | 1.7 | 1,633 | 67 | 4.1 | 819 | 63 | 7.7 | |||||||||||
Credit cards | 3,023 | 386 | 12.8 | 136 | 46 | 33.8 | 98 | 30 | 30.6 | 30 | 15 | 50.0 | |||||||||||
Loans and overdrafts | 1,311 | 249 | 19.0 | 234 | 53 | 22.6 | 125 | 45 | 36.0 | 43 | 20 | 46.5 | |||||||||||
UK Motor Finance | 1,047 | 28 | 2.7 | 1,045 | 23 | 2.2 | 122 | 18 | 14.8 | 31 | 7 | 22.6 | |||||||||||
Other | 160 | 5 | 3.1 | 384 | 7 | 1.8 | 54 | 4 | 7.4 | 45 | 2 | 4.4 | |||||||||||
Retail | 35,259 | 931 | 2.6 | 11,412 | 289 | 2.5 | 2,032 | 164 | 8.1 | 968 | 107 | 11.1 | |||||||||||
Small and Medium Businesses | 4,081 | 223 | 5.5 | 1,060 | 27 | 2.5 | 339 | 13 | 3.8 | 174 | 8 | 4.6 | |||||||||||
Corporate and Institutional Banking | 4,706 | 207 | 4.4 | 24 | 1 | 4.2 | 5 | – | – | 43 | – | – | |||||||||||
Commercial Banking | 8,787 | 430 | 4.9 | 1,084 | 28 | 2.6 | 344 | 13 | 3.8 | 217 | 8 | 3.7 | |||||||||||
Total | 44,046 | 1,361 | 3.1 | 12,496 | 317 | 2.5 | 2,376 | 177 | 7.4 | 1,185 | 115 | 9.7 | |||||||||||
At 31 December 2021 | |||||||||||||||||||||||
UK mortgages | 14,845 | 132 | 0.9 | 4,133 | 155 | 3.8 | 1,433 | 38 | 2.7 | 1,387 | 69 | 5.0 | |||||||||||
Credit cards4 | 1,755 | 176 | 10.0 | 210 | 42 | 20.0 | 86 | 20 | 23.3 | 26 | 11 | 42.3 | |||||||||||
Loans and overdrafts | 505 | 82 | 16.2 | 448 | 43 | 9.6 | 113 | 30 | 26.5 | 39 | 15 | 38.5 | |||||||||||
UK Motor Finance | 581 | 20 | 3.4 | 1,089 | 26 | 2.4 | 124 | 19 | 15.3 | 34 | 9 | 26.5 | |||||||||||
Other4 | 194 | 4 | 2.1 | 306 | 7 | 2.3 | 44 | 2 | 4.5 | 49 | 2 | 4.1 | |||||||||||
Retail | 17,880 | 414 | 2.3 | 6,186 | 273 | 4.4 | 1,800 | 109 | 6.1 | 1,535 | 106 | 6.9 | |||||||||||
Small and Medium Businesses4 | 3,570 | 153 | 4.3 | 936 | 14 | 1.5 | 297 | 6 | 2.0 | 189 | 3 | 1.6 | |||||||||||
Corporate and Institutional Banking4 | 2,447 | 118 | 4.8 | 15 | 2 | 13.3 | 4 | – | – | 25 | – | – | |||||||||||
Commercial Banking | 6,017 | 271 | 4.5 | 951 | 16 | 1.7 | 301 | 6 | 2.0 | 214 | 3 | 1.4 | |||||||||||
Total | 23,897 | 685 | 2.9 | 7,137 | 289 | 4.0 | 2,101 | 115 | 5.5 | 1,749 | 109 | 6.2 | |||||||||||
At 31 Dec 2022 £m | At 31 Dec 2021 £m | |
Mainstream | 253,283 | 248,013 |
Buy-to-let | 51,529 | 51,111 |
Specialist | 7,526 | 9,220 |
Total | 312,338 | 308,344 |
At 31 Dec 2022 | At 31 Dec 2021 | ||
Interest-only balances (£m) | 42,697 | 48,128 | |
Stage 1 (%) | 58.5 | 70.7 | |
Stage 2 (%) | 25.3 | 17.1 | |
Stage 3 (%) | 3.7 | 2.8 | |
Purchased or originated credit-impaired (%) | 12.5 | 9.4 | |
Average loan to value (%) | 35.5 | 36.8 | |
Maturity profile (£m) | |||
Due | 1,931 | 1,803 | |
Within 1 year | 1,453 | 1,834 | |
2 to 5 years | 8,832 | 8,889 | |
6 to 10 years | 16,726 | 17,882 | |
Greater than 10 years | 13,755 | 17,720 | |
Past term interest-only balances (£m)1 | 1,906 | 1,790 | |
Stage 1 (%) | 0.2 | 0.7 | |
Stage 2 (%) | 11.9 | 33.0 | |
Stage 3 (%) | 45.6 | 29.6 | |
Purchased or originated credit-impaired (%) | 42.3 | 36.7 | |
Average loan to value (%) | 33.2 | 33.0 | |
Negative equity (%) | 2.0 | 1.8 |
Total £m | Of which Stage 2 £m | Of which Stage 3 £m | Of which POCI £m | Expected credit losses as a % of total loans and advances which are foreborne1 % | |||||
At 31 December 2022 | |||||||||
UK mortgages | 3,655 | 684 | 951 | 1,995 | 4.4 | ||||
Credit cards | 260 | 90 | 125 | – | 31.6 | ||||
Loans and overdrafts | 308 | 125 | 117 | – | 36.3 | ||||
UK Motor Finance | 77 | 32 | 42 | – | 32.4 | ||||
Total | 4,300 | 931 | 1,235 | 1,995 | 8.8 | ||||
At 31 December 2021 | |||||||||
UK mortgages | 4,725 | 1,216 | 901 | 2,600 | 3.2 | ||||
Credit cards | 288 | 90 | 141 | – | 32.9 | ||||
Loans and overdrafts | 312 | 99 | 131 | – | 33.8 | ||||
UK Motor Finance | 102 | 38 | 62 | – | 37.0 | ||||
Total | 5,427 | 1,443 | 1,235 | 2,600 | 7.2 |
At 31 December 20221,2,3 | At 31 December 20211,2,3 | ||||||||
Stage 1 and 2 £m | Stage 3 £m | Total £m | Total % | Stage 1 and 2 £m | Stage 3 £m | Total £m | Total % | ||
Investment exposures | |||||||||
Less than 60 per cent | 7,721 | 47 | 7,768 | 91.0 | 6,461 | 52 | 6,513 | 83.2 | |
60 per cent to 70 per cent | 452 | 9 | 461 | 5.4 | 617 | 5 | 622 | 8.0 | |
70 per cent to 80 per cent | 58 | – | 58 | 0.7 | 129 | 13 | 142 | 1.8 | |
80 per cent to 100 per cent | 17 | 13 | 30 | 0.4 | 84 | 2 | 86 | 1.1 | |
100 per cent to 120 per cent | 8 | 23 | 31 | 0.4 | 6 | 102 | 108 | 1.4 | |
120 per cent to 140 per cent | 1 | – | 1 | – | 4 | – | 4 | 0.1 | |
Greater than 140 per cent | 13 | 54 | 67 | 0.8 | 12 | 46 | 58 | 0.7 | |
Unsecured4 | 115 | – | 115 | 1.3 | 288 | – | 288 | 3.7 | |
Subtotal | 8,385 | 146 | 8,531 | 100.0 | 7,601 | 220 | 7,821 | 100.0 | |
Other5 | 346 | 13 | 359 | 1,460 | 27 | 1,487 | |||
Total investment | 8,731 | 159 | 8,890 | 9,061 | 247 | 9,308 | |||
Development | 900 | 7 | 907 | 1,233 | 17 | 1,250 | |||
UK Government Supported Lending6 | 278 | 5 | 283 | 362 | 5 | 367 | |||
Total | 9,909 | 171 | 10,080 | 10,656 | 269 | 10,925 | |||
At 31 December 20221 | At 31 December 2021 | ||||
Type of forbearance | Total £m | Of which Stage 3 £m | Total £m | Of which Stage 3 £m | |
Refinancing | 13 | 11 | 14 | 11 | |
Modification | 3,460 | 2,884 | 3,624 | 2,851 | |
Total | 3,473 | 2,895 | 3,638 | 2,862 | |
At 31 Dec 2022 £bn | At 31 Dec 2021 £bn | ||
Lloyds Bank Group funding position | |||
Cash and balances at central banks | 72.0 | 54.3 | |
Loans and advances to banks | 8.4 | 4.5 | |
Loans and advances to customers | 435.6 | 430.8 | |
Reverse repurchase agreements – non-trading | 39.3 | 49.7 | |
Debt securities at amortised cost | 7.3 | 4.6 | |
Financial assets at fair value through other comprehensive income | 22.8 | 27.8 | |
Other assets1 | 31.5 | 31.1 | |
Total Lloyds Bank Group assets | 616.9 | 602.8 | |
Less other liabilities1,2 | (11.7) | (16.5) | |
Funding requirements | 605.2 | 586.3 | |
Wholesale funding2,3 | 69.0 | 64.9 | |
Customer deposits | 446.2 | 449.4 | |
Repurchase agreements – non-trading | 18.6 | 0.1 | |
Term Funding Scheme with additional incentives for SMEs (TFSME) | 30.0 | 30.0 | |
Deposits from fellow Lloyds Banking Group undertakings | 2.3 | 1.1 | |
Total equity | 39.1 | 40.8 | |
Funding sources | 605.2 | 586.3 |
Included in funding analysis £bn | Cash collateral received1 £bn | Fair value and other accounting methods2 £bn | Balance sheet £bn | ||||
At 31 December 2022 | |||||||
Deposits from banks | 4.0 | 0.7 | – | 4.7 | |||
Debt securities in issue3 | 56.8 | – | (7.7) | 49.1 | |||
Subordinated liabilities | 8.2 | – | (1.6) | 6.6 | |||
Total wholesale funding | 69.0 | 0.7 | |||||
Customer deposits | 446.2 | – | – | 446.2 | |||
Total | 515.2 | 0.7 | |||||
At 31 December 2021 | |||||||
Deposits from banks | 1.9 | 1.4 | 0.1 | 3.4 | |||
Debt securities in issue3 | 54.1 | – | (5.4) | 48.7 | |||
Subordinated liabilities | 8.9 | – | (0.2) | 8.7 | |||
Total wholesale funding | 64.9 | 1.4 | |||||
Customer deposits | 449.4 | – | – | 449.4 | |||
Total | 514.3 | 1.4 |
Up to 1 month £bn | 1–3 months £bn | 3–6 months £bn | 6–9 months £bn | 9–12 months £bn | 1–2 years £bn | 2–5 years £bn | Over five years £bn | Total at 31 Dec 2022 £bn | Total at 31 Dec 2021 £bn | ||||||||||
Deposits from banks | 3.8 | – | 0.1 | 0.1 | – | – | – | – | 4.0 | 1.9 | |||||||||
Debt securities in issue: | |||||||||||||||||||
Certificates of deposit | 0.4 | 1.1 | 0.1 | – | – | – | – | – | 1.6 | 0.3 | |||||||||
Commercial paper | 2.6 | 4.9 | 1.5 | – | – | – | – | – | 9.0 | 3.6 | |||||||||
Medium-term notes | 0.3 | 0.5 | 1.0 | 2.2 | 0.3 | 7.6 | 7.8 | 9.4 | 29.1 | 29.4 | |||||||||
Covered bonds | 0.9 | 1.7 | 0.9 | – | – | 2.8 | 5.7 | 2.2 | 14.2 | 17.0 | |||||||||
Securitisation1 | – | 0.2 | 0.3 | – | – | 0.1 | 1.3 | 1.0 | 2.9 | 3.8 | |||||||||
4.2 | 8.4 | 3.8 | 2.2 | 0.3 | 10.5 | 14.8 | 12.6 | 56.8 | 54.1 | ||||||||||
Subordinated liabilities | – | – | 0.2 | – | – | – | 3.0 | 5.0 | 8.2 | 8.9 | |||||||||
Total wholesale funding2 | 8.0 | 8.4 | 4.1 | 2.3 | 0.3 | 10.5 | 17.8 | 17.6 | 69.0 | 64.9 | |||||||||
Sterling £bn1 | US Dollar £bn | Euro £bn | Other currencies £bn | Total £bn | |
At 31 December 2022 | 17.0 | 28.0 | 18.1 | 5.9 | 69.0 |
At 31 December 2021 | 18.4 | 23.6 | 17.0 | 5.9 | 64.9 |
Sterling £bn | US Dollar £bn | Euro £bn | Other currencies £bn | Total £bn | |
Securitisation1 | 0.2 | – | – | – | 0.2 |
Covered bonds | 1.0 | – | – | – | 1.0 |
Senior unsecured notes | – | 1.8 | 0.9 | 1.1 | 3.8 |
Subordinated liabilities | – | 0.8 | – | – | 0.8 |
Total issuance | 1.2 | 2.6 | 0.9 | 1.1 | 5.8 |
Average | ||
20221 £bn | 20211 £bn | |
Cash and central bank reserves | 66.0 | 50.3 |
High quality government/MDB/agency bonds2 | 48.9 | 60.6 |
High quality covered bonds | 2.1 | 2.3 |
Level 1 | 117.0 | 113.2 |
Level 23 | 3.8 | 1.5 |
Total LCR eligible assets | 120.8 | 114.7 |
Sterling £bn | US Dollar £bn | Euro £bn | Other currencies £bn | Total £bn | |
At 31 December 2022 | |||||
Level 1 | 91.4 | 8.4 | 17.1 | 0.1 | 117.0 |
Level 2 | 0.9 | 1.4 | 0.4 | 1.1 | 3.8 |
Total1 | 92.3 | 9.8 | 17.5 | 1.2 | 120.8 |
At 31 December 2021 | |||||
Level 1 | 92.4 | 7.9 | 12.9 | – | 113.2 |
Level 2 | 0.7 | 0.4 | – | 0.4 | 1.5 |
Total1 | 93.1 | 8.3 | 12.9 | 0.4 | 114.7 |
2022 | 2021 | ||||||||
Up 25bps £m | Down 25bps £m | Up 100bps £m | Down 100bps £m | Up 25bps £m | Down 25bps £m | Up 100bps £m | Down 100bps £m | ||
Sterling | 0.4 | (1.1) | (2.2) | (9.1) | 26.1 | (27.6) | 98.4 | (129.8) | |
US Dollar | (0.1) | 0.2 | (0.3) | 0.9 | (0.3) | 0.9 | (1.1) | 4.0 | |
Euro | (2.0) | – | (7.6) | 0.1 | (5.1) | (2.9) | (19.3) | (11.5) | |
Other | – | – | (0.1) | 0.1 | (0.2) | 0.3 | (1.0) | 0.8 | |
Total | (1.7) | (0.9) | (10.2) | (8.0) | 20.5 | (29.3) | 77.0 | (136.5) | |
2022 | 2021 | ||||
Steepener £m | Flattener £m | Steepener £m | Flattener £m | ||
Sterling | 67.8 | (78.2) | 85.8 | (114.4) | |
US Dollar | (7.6) | 7.8 | (7.0) | 8.2 | |
Euro | (7.7) | 2.9 | (13.8) | (6.9) | |
Other | 0.1 | (0.1) | 0.2 | (0.2) | |
Total | 52.6 | (67.6) | 65.2 | (113.3) | |
Down 25bps | Up 25bps | Up 50bps | |||||||||
Client-facing activity and associated hedges | Year 1 £m | Year 2 £m | Year 3 £m | Year 1 £m | Year 2 £m | Year 3 £m | Year 1 £m | Year 2 £m | Year 3 £m | ||
2022 | (173.8) | (252.7) | (360.5) | 142.9 | 252.1 | 361.3 | 286.5 | 505.0 | 723.7 | ||
2021 | (406.7) | (512.0) | (639.0) | 174.9 | 269.8 | 397.3 | 348.7 | 526.9 | 782.1 | ||
% of total volume | % of total losses | ||||
2022 | 2021 | 2022 | 2021 | ||
Business disruption and system failures | 0.23 | 0.58 | 0.77 | (1.62) | |
Clients, products and business practices | 5.11 | 7.67 | 22.10 | 31.76 | |
Damage to physical assets | – | 0.08 | – | 0.01 | |
Employee practices and workplace safety | 0.12 | 0.04 | 0.09 | 0.02 | |
Execution, delivery and process management | 5.30 | 7.14 | 38.60 | 47.25 | |
External fraud | 89.09 | 84.07 | 38.44 | 21.99 | |
Internal fraud | 0.15 | 0.42 | – | 0.59 | |
Total | 100.00 | 100.00 | 100.00 | 100.00 | |
Group | Bank | |
•Consolidated balance sheet as at 31 December 2022; •Consolidated income statement for the year then ended; •Consolidated statement of comprehensive income for the year then ended; •Consolidated statement of changes in equity for the year then ended; •Consolidated cash flow statement for the year then ended; and •Notes 1 to 47 to the financial statements, which include the accounting principles and policies. | •Balance sheet as at 31 December 2022; •Statement of changes in equity for the year then ended; •Cash flow statement for the year then ended; and •Notes 1 to 27 to the financial statements, which include the accounting principles and policies. |
Key audit matters | The key audit matters that we identified in the current year were: •Expected credit losses (Group and Bank) •Regulatory and litigation matters (Group and Bank) •Defined benefit obligations (Group and Bank) •IT systems that impact financial reporting (Group and Bank) Our assessment of the level of risk for each of these areas have remained consistent with the prior year. | |
Materiality | Overall materiality used for the Group consolidated financial statements was £290 million, which was determined on the basis of profit before tax and net assets. Overall materiality used for the Bank financial statements was £290 million, which was determined on the basis of net assets and capped at Group materiality. | |
Scoping | Our audit scope covers 82% of the Group’s revenue, 90% of the Group’s profit before tax, 96% of the Group’s total assets and 94% of the Group’s total liabilities. |
Expected credit losses (Group and Bank) | ||
Key audit matter description | How the scope of our audit responded to the key audit matter | |
Refer to notes 2, 3, 11, 16 and 44 in the financial statements | ||
The Group has recognised £4.8 billion of expected credit losses (“ECL”) as at 31 December 2022. The determination of ECL consists of a number of assumptions that require a high degree of complex and subjective auditor judgement, specialised skills and knowledge, complex impairment modelling and a high degree of estimation uncertainty. Specifically, the impact of the war in Ukraine, residual economic impact of the COVID-19 pandemic, as well as the economic impact of the rising cost of living on the ECL have been particularly judgemental given the inherent uncertainty in the current economic environment. The key areas we identified as having the most significant level of management judgement were in respect of: •Multiple Economic Scenarios ("MES"); •Retail ECL; and •Commercial Banking ECL. | ||
Multiple economic scenarios The measurement of expected credit losses is required to reflect an unbiased probability-weighted range of possible future outcomes. The Group’s economics team develops the future economic scenarios. Firstly, a base case forecast is produced based on a set of conditioning assumptions, which are designed to reflect the Group’s best view of future events. A full distribution of economic scenarios around this base case is produced using a Monte Carlo simulation and scenarios within that distribution are ranked using estimated relationships with industry wide historical loss data. Three scenarios are derived from the distribution as averages of constituent modelled scenarios around the 15th, 75th and 95th percentiles of the distribution corresponding to an upside, a downside and a severe downside, respectively. The severe downside is then adjusted to incorporate non-modelled paths for inflation and interest rate assumptions. The upside, the base case and the downside scenarios are weighted at 30% and the severe downside at 10%. These four scenarios are then used as key assumptions in the determination of the ECL allowance. The development of these multiple economic scenarios is inherently uncertain, highly complex, and requires significant judgement. The principal consideration for our determination that the multiple economic scenarios is a critical audit matter was the high degree of management judgement which required specialised auditor knowledge and a high degree of audit effort in areas such as evaluating the forward-looking information used by management, and the weighting applied. | We performed the following procedures: •Tested the controls over the generation of the multiple economic scenarios including those over the Group’s governance processes to determine the base case, different scenarios and the weightings applied to each scenario; •Working with our internal economic specialists: –challenged and evaluated economic forecasts in the base scenario such as the unemployment rate, House Price Index, inflation and forecasted interest rates, and Gross Domestic Product through comparison to independent economic outlooks, external analysts and market data; –challenged the appropriateness of management's change in methodology in determining the severe downside scenario; –challenged and evaluated the appropriateness of the methodology applied to generate alternative macroeconomic scenarios, and including associated weightings and assumptions within; –independently replicated the multiple economic scenario model and compared the outputs of our independent model to the Group’s output to test scenario generation; •Tested the completeness and accuracy of the data used by the model; •Performed a stand back assessment of the appropriateness of the weightings applied to each of the scenarios based on publicly available data; and •Evaluated the adequacy of disclosures in respect of significant judgements and sources of estimation uncertainty including macroeconomic scenarios. | |
Key audit matter description | How the scope of our audit responded to the key audit matter | |
Retail ECL The ECL for Retail is determined on a collective basis using impairment models to calculate a probability weighted estimate by applying a probability of default, exposure at default and a loss given default, taking account of collateral held or other loss mitigants, discounted using the effective interest rate. The key judgements and estimates in determining the ECL for Retail include: •Modelling approach, modelling simplifications and judgements, and selection of modelling data; •Behavioural lives; and •The appropriate allocation of assets into the correct IFRS 9 stage through the assessment of significant deterioration in credit risk since origination. Model adjustments Adjustments are made to models to address known model and data limitations, and emerging or non-modelled risks. The current economic environment continues to be uncertain and differs from recent experience being characterised by elevated inflation, the “cost of living” crisis for personal borrowers, and higher finance costs, all of which affect the debt servicing capacity of borrowers. As a result, the judgements around if and when the Group have recognised adjustments in the model to account for the impacts of the current economic environment and potential model weaknesses in coping with the current economic outlook are highly judgmental and inherently uncertain. These adjustments require specialist auditor judgement when evaluating the completeness of adjustments, and the methodology, models and inputs to the adjustments. | We tested controls across the process to determine the ECL provisions including: •Model governance, including model validation and monitoring; •Model assumptions; •The allocation of assets into stages; and •Data accuracy and completeness. Working with our internal modelling specialists our audit procedures over the key areas of estimation covered the following: •Model estimations, where we: –evaluated the appropriateness of the modelling approach and assumptions used; –independently replicated the models for the most material portfolios and compared the outputs of our independent models to the Group’s outputs; –assessed model performance by evaluating variations between observed data and model predictions; –developed an understanding and assessed model limitations and remedial actions; and –tested the completeness and accuracy of the data used in model execution and calibration. •Allocation of assets into stages, where we: –evaluated the appropriateness of quantitative and qualitative criteria used for allocation into IFRS 9 stages; –tested the appropriateness of the stage allocation for a sample of exposures; and –tested the data used by models in assigning IFRS 9 stages and evaluated the appropriateness of the model logic used. Model adjustments In respect of the adjustment to models, we performed the following procedures in conjunction with our specialists: •Tested the controls over the adjustments to the models; •Evaluated the methodology, approach and assumptions in developing the adjustments, and evaluated the Group’s selection of approach; •Tested the completeness and accuracy of the data used; •Performed a recalculation of the adjustments; •Evaluated the completeness of adjustments based on our understanding of model and data limitations, including those related to cost of living pressures; and •Evaluated whether duplication exists between different model adjustments and between model adjustments and core models. We have assessed the adequacy of the disclosures and whether the disclosures appropriately address the uncertainty which exists in determining the ECL. |
Key audit matter description | How the scope of our audit responded to the key audit matter | |
Commercial Banking ECL The ECL in Commercial Banking is calculated on a collective basis for performing loans, being those in stage 1 and 2, and on an individual basis for larger impaired loans in stage 3. The collective provision is determined using impairment models. The models use a number of significant judgments to calculate a probability weighted ECL estimate applying an appropriate probability of default, estimated exposure at default and taking account of collateral held or other loss mitigants, discounted using the effective interest rate. The key driver of the probability of default and, therefore, the staging of Commercial Banking exposures is the credit risk rating. The determination of these credit risk ratings is performed on a counterparty basis for larger exposures by a credit officer and involves a high degree of judgement and consideration of multiple sources of information. Complex models and significant judgements are used to develop the probability of default, loss given default and exposure at default as well as applying the staging criteria under IFRS 9. For individual provision assessments of larger exposures in stage 3, the significant judgements in determining provisions are the: •completeness and appropriateness of the potential workout scenarios identified; •probability assigned to each identified potential workout scenarios; and •valuation assumptions used in determining the expected recovery strategies. Complex and subjective auditor judgement including specialised knowledge is required in evaluating the methodology, models and inputs that are inherently uncertain. | We tested the controls across the process to determine the ECL provisions including: •Model governance and arithmetical accuracy of provision calculations; •Data accuracy and completeness; and •Recognition and calculation of post-model adjustments. We performed the following audit procedures over: •Expected credit losses determined through impairment models: –independently assessed the credit rating and tested whether the exposure was in the correct stage and whether a significant increase in credit risk had occurred to result in a stage 2 classification against IFRS 9 criteria; –assessed and challenged the model methodologies, approach and assumptions, including those used in developing the IMAs and PMAs; –tested the completeness and accuracy of data used; and –performed a recalculation of the IFRS 9 collective provision. •Expected credit losses assessed individually: –assessed the exposures to determine if they met the definition of credit impaired with a stage 3 classification; –performed independent assessments to determine the appropriateness of recovery scenarios and associated cash flows, including considerations of climate risks on recoveries; –evaluated valuations, including the use of internal specialists for business valuations; and –independently assessed and challenged the completeness of workout scenarios identified and weightings applied. We have assessed the adequacy of the disclosures and whether the disclosures appropriately address the uncertainty which exists in determining the ECL. | |
Key observations communicated to the Audit Committee We are satisfied that the ECL provisions are reasonable and recognised in accordance with the requirements of IFRS 9. The calculations are based on appropriate methodologies using reasonable modelled assumptions, including IMAs and PMAs addressing model shortcomings. Where control deficiencies were identified, particularly in data linkage to models, compensating controls were identified and operated effectively. Overall, we are comfortable with the Group’s conclusions in respect of ECL. | ||
Regulatory and litigation matters (Group and Bank) | ||
Key audit matter description | How the scope of our audit responded to the key audit matter | |
Refer to notes 2, 3 and 29 in the financial statements. | ||
The Group operates in an environment where it is subject to regulatory investigations, litigation and customer remediation, including allegations of fraud and misconduct. The Group is currently exposed to a number of regulatory and litigation matters. The Group’s provision for these matters is £0.7 billion as at 31 December 2022, the most significant of which is the HBOS Reading matter. Significant judgement is required by the Group in determining whether, under IAS 37 Provisions, Contingent Liabilities and Contingent Assets: •Based on the information available to the Group, the amount recorded is representative of the Group's best estimate to settle the obligation; and •Any contingent liabilities and underlying significant estimation uncertainties are adequately disclosed. | We performed the following audit procedures: •Tested the Group’s controls over the completeness of provisions, the review of the assessment of the provision against the requirements of IAS 37, the review of the appropriateness of judgements used to determined a ‘best estimate’ and the completeness and accuracy of data used in the process; •Evaluated the assessment of the provisions, associated probabilities, and potential outcomes in accordance with IAS 37; •Verified and challenged whether the methodology, data and significant judgements and assumptions used in the valuation of the provisions are appropriate in the context of the applicable financial reporting framework; •In respect of HBOS Reading, we inspected information available including outcomes for the awards made by the Foskett panel and tested the methodology applied to determine the provision; •Inspected correspondence and, where appropriate, made direct inquiry with the Group’s regulators and internal and external legal counsel; •Where no provision was made, we critically assessed and challenged the conclusion in the context of the requirements of IAS 37 Provisions, Contingent Liabilities and Contingent Assets; and •Evaluated whether the disclosures made in the financial statements appropriately reflect the facts and key sources of estimation uncertainty. | |
Key observations communicated to the Audit Committee While there is significant judgement required in estimating the timing and value of future settlements, particularly in relation to the HBOS Reading matter, we are satisfied that the approach to the estimation of these provisions is consistent with the requirements of IAS 37. | ||
Defined benefit obligations (Group and Bank) | ||
Key audit matter description | How the scope of our audit responded to the key audit matter | |
Refer to notes 2, 3 and 27 in the financial statements | ||
The Group operates a number of defined benefit retirement schemes, the obligations for which totalled £29.0 billion as at 31 December 2022. Their valuation is determined with reference to key actuarial assumptions including mortality assumptions, discount rates and inflation rates. Due to the size of these schemes, small changes in these assumptions can have a material impact on the value of the defined benefit obligation and therefore, the assessment of these assumptions are a key judgement. | We performed the following audit procedures: •Tested the Group’s controls over the valuation of the defined benefit obligations, including controls over the assumptions setting process; and •Challenged the key actuarial assumptions used by comparing these against ranges and expectations determined by our internal actuarial experts, which are calculated with reference to the central assumptions adopted by the actuarial firms for whom we have reviewed and accepted their methodologies. | |
Key observations communicated to the Audit Committee We are satisfied that the Group's judgements in relation to the actuarial assumptions are reasonable. | ||
IT systems that impact financial reporting (Group and Bank) | ||
Key audit matter description | How the scope of our audit responded to the key audit matter | |
The Group’s IT environment is inherently complex due to the number of systems it operates and its reliance on automated and IT dependent manual controls. Together, these support a broad range of banking and insurance products as well as the processing of the Group’s significant volume of transactions, which impact all account balances. As such, IT systems within the Group form a critical component of the Group’s financial reporting activities. Due to the significant reliance on IT systems, effective General IT Controls (GITCs) are critical to allow reliance to be placed on the completeness and accuracy of financial data and the integrity of automated system functionality, such as system calculations. We identified the IT systems that impact financial reporting as a key audit matter because of the: •Pervasive reliance on complex technology that is integral to the operation of key business processes and financial reporting; •Reliance on technology which continues to develop in line with the business strategy, such as the increase in the use of automation across the Group and increasing reliance on third parties; and •Importance of the IT controls in maintaining an effective control environment. A key interdependency exists between the ability to rely on IT controls and the ability to rely on financial data, system configured automated controls and system reports. IT controls, in the context of our audit scope, primarily relate to privileged access at the infrastructure level, user access security at the application level and change control. | Our IT audit scope tested the Group’s IT controls over information systems deemed relevant to the audit based on the financial data, system configured automated controls and/or key financial reports that reside within it. We used IT specialists to support our evaluation of the risks associated with IT in the following areas: •General IT Controls, including user access and change management controls; •Key financial reports and system configured automated controls; and •Cyber security risk assessment. Where deficiencies in the IT control environment were identified, our risk assessment procedures included an assessment of those deficiencies to determine the impact on our audit plan. Where relevant, the audit plan was adjusted to mitigate the unaddressed IT risk. Where we were able to identify and test appropriate mitigating controls over affected financial statement line items, our testing approach remained unchanged. In a limited number of areas, we adopted a non-controls reliance approach and we therefore performed additional substantive procedures. | |
Key observations communicated to the Audit Committee IT control deficiencies were identified in respect of privileged user access to IT infrastructure and in application user access management. The existence of these deficiencies in the year resulted in an increased risk in relation to data, reports and automated system functionality from the affected systems. However, overall, in combination with business mitigating controls, we are satisfied that the Group’s overall IT control environment appropriately supports the financial reporting process. | ||
Group financial statements | Bank financial statements | |||
Materiality | £290 million (2021: £290 million) | £290 million (2021: £290 million) | ||
Basis for determining materiality | In determining our benchmark for materiality, we have considered the metrics used by investors and other users of the financial statements. We have determined the following benchmarks to be the most relevant to users of the financial statements: •Pre-tax profit; and •Net assets. The determined materiality represents 5% of pre-tax profit and 0.7% of net assets. | The Bank materiality represents 0.6% of net assets, and is capped at Group materiality. | ||
Rationale for the benchmark applied | Given the importance of these measures to investors and users of the financial statements, we have used forecasted pre-tax profit as the primary benchmark for our determination of materiality, and net assets as a supporting benchmark. | As the Bank does not disclose a standalone income statement we do not consider an income based metric to be an appropriate benchmark for the purposes of setting materiality when considering the expectations of the user of the Bank financial statements. As such we have determined that a net assets benchmark is appropriate. However, given the size of the entity’s balance sheet, we have capped materiality at Group’s materiality. |
Group financial statements | Bank financial statements | |||
Performance materiality | 70% of Group materiality – £185 million (2021: 60% at £175 million) | 70% of Bank materiality – £185 million (2021: 60% at £175 million) | ||
Basis and rationale for determining performance materiality | In determining performance materiality, we considered the following factors: a.The quality of the control environment and whether we were able to rely on controls; b.Degree of centralisation and commonality of controls and processes; c.The uncertain economic environment; d.The nature, volume and size of uncorrected misstatements arising in the previous audit; and e.The nature, volume and size of uncorrected misstatements that remain uncorrected in the current period. In the prior year, performance materiality was set at 60% reflecting amongst other factors that it was Deloitte LLP’s first year auditing the Group and Parent financial statements. | |||
The other information comprises the information included in the Annual Report, other than the financial statements and our auditors’ report thereon. The Directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. | We have nothing to report in this regard. |
Our responsibility | Our report | |||
Matters we are specifically required to report | ||||
Strategic report and directors’ report | Report whether they are consistent with the audited financial statements and are prepared in accordance with applicable legal requirements. Report if we have identified any material misstatements in either report in the light of the knowledge and understanding of the Group and of the Bank and their environment obtained in the course of the audit. | As set out in the section “Opinions on other matters prescribed by the Companies Act 2006”, in our opinion, based on the work undertaken in the course of the audit, the information in these reports is consistent with the audited financial statements and has been prepared in accordance with applicable legal requirements. | ||
Principal risks (within the strategic report) | Review the confirmation and description in the light of the knowledge gathered during the audit, such as through considering the directors’ processes to support the statements made, challenging the Group’s key judgements and estimates, consideration of historical forecasting accuracy and evaluating macro-economic assumptions. | We have nothing material to report, add or draw attention to in respect of these matters. | ||
Adequacy of explanations received and accounting records Under the Companies Act 2006 we are required to report to you if, in our opinion: •We have not received all the information and explanations we require for our audit; or •Adequate accounting records have not been kept by the Bank, or returns adequate for our audit have not been received from branches not visited by us; or •The Bank’s financial statements are not in agreement with the accounting records and returns. | We have nothing to report in respect of these matters. | |
Directors’ remuneration Under the Companies Act 2006 we are also required to report if in our opinion certain disclosures of directors’ remuneration have not been made. | We have nothing to report in respect of this matter. |
Note | 2022 £ million | 2021 £ million | 2020 £ million | ||||
Interest income | |||||||
Interest expense | ( | ( | ( | ||||
Net interest income | 5 | ||||||
Fee and commission income | |||||||
Fee and commission expense | ( | ( | ( | ||||
Net fee and commission income | 6 | ||||||
Net trading income | 7 | ||||||
Other operating income | 8 | ||||||
Other income | |||||||
Total income | |||||||
Operating expenses | 9 | ( | ( | ( | |||
Impairment (charge) credit | 11 | ( | ( | ||||
Profit before tax | |||||||
Tax (expense) credit | 12 | ( | ( | ||||
Profit for the year | |||||||
Profit attributable to ordinary shareholders | |||||||
Profit attributable to other equity holders | |||||||
Profit attributable to equity holders | |||||||
Profit attributable to non-controlling interests | |||||||
Profit for the year |
2022 £ million | 2021 £ million | 2020 £ million | |||
Profit for the year | |||||
Other comprehensive income | |||||
Items that will not subsequently be reclassified to profit or loss: | |||||
Post-retirement defined benefit scheme remeasurements: | |||||
Remeasurements before tax | ( | ||||
Tax | ( | ( | |||
( | |||||
Movements in revaluation reserve in respect of equity shares held at fair value through other comprehensive income: | |||||
Change in fair value | |||||
Tax | ( | ( | |||
( | ( | ||||
Gains and losses attributable to own credit risk: | |||||
Gains (losses) before tax | ( | ( | |||
Tax | ( | ||||
( | ( | ||||
Items that may subsequently be reclassified to profit or loss: | |||||
Movements in revaluation reserve in respect of debt securities held at fair value through other comprehensive income: | |||||
Change in fair value | ( | ||||
Income statement transfers in respect of disposals | ( | ||||
Income statement transfers in respect of impairment | ( | ||||
Tax | ( | ||||
( | ( | ||||
Movements in cash flow hedging reserve: | |||||
Effective portion of changes in fair value taken to other comprehensive income | ( | ( | |||
Net income statement transfers | ( | ( | ( | ||
Tax | ( | ||||
( | ( | ( | |||
Movements in foreign currency translation reserve: | |||||
Currency translation differences (tax: £nil) | ( | ||||
Transfers to income statement (tax: £nil) | |||||
( | |||||
Total other comprehensive loss for the year, net of tax | ( | ( | ( | ||
Total comprehensive (loss) income for the year | ( | ||||
Total comprehensive (loss) income attributable to ordinary shareholders | ( | ||||
Total comprehensive income attributable to other equity holders | |||||
Total comprehensive (loss) income attributable to equity holders | ( | ||||
Total comprehensive income attributable to non-controlling interests | |||||
Total comprehensive (loss) income for the year | ( |
Note | 2022 £ million | 2021 £ million | |||
Assets | |||||
Cash and balances at central banks | |||||
Items in the course of collection from banks | |||||
Financial assets at fair value through profit or loss | 13 | ||||
Derivative financial instruments | 14 | ||||
Loans and advances to banks | |||||
Loans and advances to customers | |||||
Reverse repurchase agreements | |||||
Debt securities | |||||
Due from fellow Lloyds Banking Group undertakings | |||||
Financial assets at amortised cost | 15 | ||||
Financial assets at fair value through other comprehensive income | 18 | ||||
Goodwill | 19 | ||||
Other intangible assets | 20 | ||||
Current tax recoverable | |||||
Deferred tax assets | 28 | ||||
Retirement benefit assets | 27 | ||||
Other assets | 21 | ||||
Total assets |
Note | 2022 £ million | 2021 £ million | |||
Liabilities | |||||
Deposits from banks | |||||
Customer deposits | |||||
Repurchase agreements at amortised cost | |||||
Due to fellow Lloyds Banking Group undertakings | |||||
Items in the course of transmission to banks | |||||
Financial liabilities at fair value through profit or loss | 23 | ||||
Derivative financial instruments | 14 | ||||
Notes in circulation | |||||
Debt securities in issue | 24 | ||||
Other liabilities | 26 | ||||
Retirement benefit obligations | 27 | ||||
Current tax liabilities | |||||
Deferred tax liabilities | |||||
Other provisions | 29 | ||||
Subordinated liabilities | 30 | ||||
Total liabilities | |||||
Equity | |||||
Share capital | 31 | ||||
Share premium account | 32 | ||||
Other reserves | 33 | ||||
Retained profits | 34 | ||||
Ordinary shareholders’ equity | |||||
Other equity instruments | 35 | ||||
Total equity excluding non-controlling interests | |||||
Non-controlling interests | |||||
Total equity | |||||
Total equity and liabilities |
Robin Budenberg | Charlie Nunn | William Chalmers |
Chair | Chief Executive | Chief Financial Officer |
Attributable to ordinary shareholders | |||||||||||||
Share capital and premium £ million | Other reserves £ million | Retained profits £ million | Total £ million | Other equity instruments £ million | Non- controlling interests £ million | Total £ million | |||||||
At 1 January 2022 | |||||||||||||
Comprehensive income | |||||||||||||
Profit for the year | – | – | |||||||||||
Other comprehensive income | |||||||||||||
Post-retirement defined benefit scheme remeasurements, net of tax | – | – | ( | ( | – | – | ( | ||||||
Movements in revaluation reserve in respect of financial assets held at fair value through other comprehensive income, net of tax: | |||||||||||||
Debt securities | – | ( | – | ( | – | – | ( | ||||||
Equity shares | – | ( | – | ( | – | – | ( | ||||||
Gains and losses attributable to own credit risk, net of tax | – | – | – | – | |||||||||
Movements in cash flow hedging reserve, net of tax | – | ( | – | ( | – | – | ( | ||||||
Movements in foreign currency translation reserve, net of tax | – | – | – | – | |||||||||
Total other comprehensive (loss) income | – | ( | ( | ( | – | – | ( | ||||||
Total comprehensive (loss) income1 | – | ( | ( | ( | |||||||||
Transactions with owners | |||||||||||||
Dividends (note 36) | – | – | – | – | – | ( | ( | ||||||
Distributions on other equity instruments | – | – | – | – | ( | – | ( | ||||||
Capital contributions received | – | – | – | – | |||||||||
Return of capital contributions | – | – | ( | ( | – | – | ( | ||||||
Total transactions with owners | – | – | ( | ( | ( | ||||||||
Realised gains and losses on equity shares held at fair value through other comprehensive income | – | ( | – | – | – | – | |||||||
At 31 December 2022 | |||||||||||||
Attributable to ordinary shareholders | |||||||||||||
Share capital and premium £ million | Other reserves £ million | Retained profits £ million | Total £ million | Other equity instruments £ million | Non- controlling interests £ million | Total £ million | |||||||
At 1 January 2021 | |||||||||||||
Comprehensive income | |||||||||||||
Profit for the year | – | – | |||||||||||
Other comprehensive income | |||||||||||||
Post-retirement defined benefit scheme remeasurements, net of tax | – | – | – | – | |||||||||
Movements in revaluation reserve in respect of financial assets held at fair value through other comprehensive income, net of tax: | |||||||||||||
Debt securities | – | – | – | – | |||||||||
Equity shares | – | – | – | – | |||||||||
Gains and losses attributable to own credit risk, net of tax | – | – | ( | ( | – | – | ( | ||||||
Movements in cash flow hedging reserve, net of tax | – | ( | – | ( | – | – | ( | ||||||
Movements in foreign currency translation reserve, net of tax | – | ( | – | ( | – | – | ( | ||||||
Total other comprehensive (loss) income | – | ( | ( | – | – | ( | |||||||
Total comprehensive (loss) income | – | ( | |||||||||||
Transactions with owners | |||||||||||||
Dividends (note 36) | – | – | ( | ( | – | ( | ( | ||||||
Distributions on other equity instruments | – | – | – | – | ( | – | ( | ||||||
Issue of other equity instruments (note 35) | – | – | ( | ( | – | ||||||||
Repurchases and redemptions of other equity instruments (note 35) | – | – | ( | ( | ( | – | ( | ||||||
Capital contributions received | – | – | – | – | |||||||||
Return of capital contributions | – | – | ( | ( | – | – | ( | ||||||
Changes in non-controlling interests | – | – | ( | ( | – | ( | ( | ||||||
Total transactions with owners | – | – | ( | ( | ( | ( | ( | ||||||
Realised gains and losses on equity shares held at fair value through other comprehensive income | – | ( | – | – | – | – | |||||||
At 31 December 2021 | |||||||||||||
Attributable to ordinary shareholders | |||||||||||||
Share capital and premium £ million | Other reserves £ million | Retained profits £ million | Total £ million | Other equity instruments £ million | Non- controlling interests £ million | Total £ million | |||||||
At 1 January 2020 | |||||||||||||
Comprehensive income | |||||||||||||
Profit for the year | – | – | |||||||||||
Other comprehensive income | |||||||||||||
Post-retirement defined benefit scheme remeasurements, net of tax | – | – | – | – | |||||||||
Movements in revaluation reserve in respect of financial assets held at fair value through other comprehensive income, net of tax: | |||||||||||||
Debt securities | – | ( | – | ( | – | – | ( | ||||||
Equity shares | – | ( | – | ( | – | – | ( | ||||||
Gains and losses attributable to own credit risk, net of tax | – | – | ( | ( | – | – | ( | ||||||
Movements in cash flow hedging reserve, net of tax | – | ( | – | ( | – | – | ( | ||||||
Total other comprehensive (loss) income | – | ( | ( | – | – | ( | |||||||
Total comprehensive (loss) income | – | ( | |||||||||||
Transactions with owners | |||||||||||||
Dividends (note 36) | – | – | – | – | – | ( | ( | ||||||
Distributions on other equity instruments | – | – | – | – | ( | – | ( | ||||||
Issue of other equity instruments (note 35) | – | – | – | – | – | ||||||||
Capital contributions received | – | – | – | – | |||||||||
Return of capital contributions | – | – | ( | ( | – | – | ( | ||||||
Changes in non-controlling interests | – | – | – | – | – | ( | ( | ||||||
Total transactions with owners | – | – | ( | ||||||||||
Realised gains and losses on equity shares held at fair value through other comprehensive income | – | ( | – | – | – | – | |||||||
At 31 December 2020 | |||||||||||||
Note | 2022 £ million | 20211 £ million | 20201 £ million | ||||
Cash flows from operating activities | |||||||
Profit before tax | |||||||
Adjustments for: | |||||||
Change in operating assets | 45(A) | ( | ( | ||||
Change in operating liabilities | 45(B) | ||||||
Non-cash and other items | 45(C) | ( | ( | ||||
Tax paid (net) | ( | ( | ( | ||||
Net cash provided by operating activities | |||||||
Cash flows from investing activities | |||||||
Purchase of financial assets | ( | ( | ( | ||||
Proceeds from sale and maturity of financial assets | |||||||
Purchase of fixed assets | ( | ( | ( | ||||
Proceeds from sale of fixed assets | |||||||
Acquisition of businesses, net of cash acquired | ( | ||||||
Net cash provided by (used in) investing activities | ( | ( | |||||
Cash flows from financing activities | |||||||
Dividends paid to ordinary shareholders | 36 | ( | |||||
Distributions on other equity instruments | ( | ( | ( | ||||
Dividends paid to non-controlling interests | ( | ( | ( | ||||
Return of capital contributions | ( | ( | ( | ||||
Interest paid on subordinated liabilities | ( | ( | ( | ||||
Proceeds from issue of subordinated liabilities | |||||||
Proceeds from issue of other equity instruments | |||||||
Repayment of subordinated liabilities | ( | ( | ( | ||||
Repurchases and redemptions of other equity instruments | ( | ||||||
Borrowings from parent company | |||||||
Repayments of borrowings to parent company | ( | ( | |||||
Interest paid on borrowings from parent company | ( | ( | ( | ||||
Net cash used in financing activities | ( | ( | ( | ||||
Effects of exchange rate changes on cash and cash equivalents | ( | ||||||
Change in cash and cash equivalents | |||||||
Cash and cash equivalents at beginning of year | |||||||
Cash and cash equivalents at end of year | 45(D) | ||||||
Critical judgements: | Determining an appropriate definition of default against which a probability of default, exposure at default and loss given default parameter can be evaluated |
Establishing the criteria for a significant increase in credit risk (SICR) | |
The use of management judgement alongside impairment modelling processes to adjust inputs, parameters and outputs to reflect risks not captured by models | |
Key source of estimation uncertainty: | Base case and multiple economic scenarios (MES) assumptions, including the rate of unemployment and the rate of change of house prices, required for creation of MES scenarios and forward-looking credit parameters |
Critical judgement: | Determination of an appropriate yield curve |
Key sources of estimation uncertainty: | Discount rate applied to future cash flows |
Expected lifetime of the schemes’ members | |
Expected rate of future inflationary increases |
Critical judgement: | Interpreting tax rules on the Group’s open tax matters |
Critical judgements: | Determining the scope of reviews required by regulators |
The impact of legal decisions that may be relevant to claims received | |
Determining whether a reliable estimate is available for obligations arising from past events | |
Key sources of estimation uncertainty: | The number of future complaints |
The proportion of complaints that will be upheld | |
The average cost of redress |
Key source of estimation uncertainty: | Interest rate spreads, earnings multiples and interest rate volatility |
Critical judgement: | Assessing future trading conditions that could affect the Group’s business operations |
Key source of estimation uncertainty: | Estimated useful life of internally generated capitalised software |
Retail £m | Commercial Banking £m | Other £m | Group £m | |
Year ended 31 December 2022 | ||||
Net interest income | 9,746 | 3,227 | 132 | 13,105 |
Other income | 1,684 | 947 | 1,009 | 3,640 |
Total income | 11,430 | 4,174 | 1,141 | 16,745 |
Operating expenses | (5,696) | (2,207) | (1,296) | (9,199) |
Impairment (charge) credit | (1,373) | (471) | 392 | (1,452) |
Profit before tax | 4,361 | 1,496 | 237 | 6,094 |
External income | 11,996 | 3,375 | 1,374 | 16,745 |
Inter-segment (expense) income | (566) | 799 | (233) | – |
Segment income | 11,430 | 4,174 | 1,141 | 16,745 |
Segment external assets | 372,585 | 89,536 | 154,807 | 616,928 |
Segment external liabilities | 314,051 | 140,923 | 122,895 | 577,869 |
Analysis of segment other income: | ||||
Fee and commission income: | ||||
Current accounts | 420 | 222 | – | 642 |
Credit and debit card fees | 734 | 456 | – | 1,190 |
Commercial banking fees | – | 196 | – | 196 |
Factoring | – | 79 | – | 79 |
Other fees and commissions | 66 | 149 | 30 | 245 |
Fee and commission income | 1,220 | 1,102 | 30 | 2,352 |
Fee and commission expense | (665) | (280) | (156) | (1,101) |
Net fee and commission income | 555 | 822 | (126) | 1,251 |
Operating lease rental income | 1,065 | 12 | – | 1,077 |
Gains less losses on disposal of financial assets at fair value through other comprehensive income | – | – | (76) | (76) |
Other income | 64 | 113 | 1,211 | 1,388 |
Segment other income | 1,684 | 947 | 1,009 | 3,640 |
Other segment items reflected in income statement above: | ||||
Depreciation and amortisation | 1,216 | 195 | 937 | 2,348 |
Defined benefit scheme charges | 72 | 28 | 25 | 125 |
Non-income statement segment items: | ||||
Additions to fixed assets | 2,146 | 94 | 1,464 | 3,704 |
Retail £m | Commercial Banking £m | Other £m | Group £m | |
Year ended 31 December 20211 | ||||
Net interest income | 8,515 | 2,479 | 42 | 11,036 |
Other income | 1,596 | 918 | 1,123 | 3,637 |
Total income | 10,111 | 3,397 | 1,165 | 14,673 |
Operating expenses | (5,878) | (2,732) | (1,596) | (10,206) |
Impairment credit (charge) | 447 | 869 | 2 | 1,318 |
Profit (loss) before tax | 4,680 | 1,534 | (429) | 5,785 |
External income | 11,200 | 3,172 | 301 | 14,673 |
Inter-segment (expense) income | (1,089) | 225 | 864 | – |
Segment income | 10,111 | 3,397 | 1,165 | 14,673 |
Segment external assets | 364,375 | 85,806 | 152,668 | 602,849 |
Segment external liabilities | 312,578 | 145,273 | 104,226 | 562,077 |
Analysis of segment other income: | ||||
Fee and commission income: | ||||
Current accounts | 425 | 209 | – | 634 |
Credit and debit card fees | 533 | 345 | – | 878 |
Commercial banking fees | – | 247 | 37 | 284 |
Factoring | – | 76 | – | 76 |
Other fees and commissions | 65 | 171 | 87 | 323 |
Fee and commission income | 1,023 | 1,048 | 124 | 2,195 |
Fee and commission expense | (571) | (247) | (124) | (942) |
Net fee and commission income | 452 | 801 | – | 1,253 |
Operating lease rental income | 1,046 | 13 | – | 1,059 |
Gains less losses on disposal of financial assets at fair value through other comprehensive income | – | – | (116) | (116) |
Other income | 98 | 104 | 1,239 | 1,441 |
Segment other income | 1,596 | 918 | 1,123 | 3,637 |
Other segment items reflected in income statement above: | ||||
Depreciation and amortisation | 1,525 | 273 | 979 | 2,777 |
Defined benefit scheme charges | 89 | 29 | 118 | 236 |
Non-income statement segment items: | ||||
Additions to fixed assets | 1,922 | 168 | 1,012 | 3,102 |
Retail £m | Commercial Banking £m | Other £m | Group £m | |
Year ended 31 December 20201 | ||||
Net interest income | 8,317 | 2,471 | (18) | 10,770 |
Other income | 1,608 | 809 | 1,398 | 3,815 |
Total income | 9,925 | 3,280 | 1,380 | 14,585 |
Operating expenses | (5,875) | (2,078) | (1,243) | (9,196) |
Impairment charge | (2,274) | (1,397) | (389) | (4,060) |
Profit (loss) before tax | 1,776 | (195) | (252) | 1,329 |
External income | 11,490 | 2,850 | 245 | 14,585 |
Inter-segment (expense) income | (1,565) | 430 | 1,135 | – |
Segment income | 9,925 | 3,280 | 1,380 | 14,585 |
Segment external assets | 351,184 | 92,206 | 156,549 | 599,939 |
Segment external liabilities | 284,622 | 150,728 | 123,471 | 558,821 |
Analysis of segment other income: | ||||
Fee and commission income: | ||||
Current accounts | 428 | 182 | – | 610 |
Credit and debit card fees | 447 | 301 | – | 748 |
Commercial banking fees | – | 169 | – | 169 |
Factoring | – | 76 | – | 76 |
Other fees and commissions | 72 | 159 | 90 | 321 |
Fee and commission income | 947 | 887 | 90 | 1,924 |
Fee and commission expense | (585) | (207) | (117) | (909) |
Net fee and commission income | 362 | 680 | (27) | 1,015 |
Operating lease rental income | 1,104 | 16 | – | 1,120 |
Gains less losses on disposal of financial assets at fair value through other comprehensive income | – | – | 145 | 145 |
Other income | 142 | 113 | 1,280 | 1,535 |
Segment other income | 1,608 | 809 | 1,398 | 3,815 |
Other segment items reflected in income statement above: | ||||
Depreciation and amortisation | 1,760 | 242 | 668 | 2,670 |
Defined benefit scheme charges | 100 | 30 | 117 | 247 |
Non-income statement segment items: | ||||
Additions to fixed assets | 1,684 | 89 | 1,042 | 2,815 |
Weighted average effective interest rate | |||||||
2022 % | 2021 % | 2020 % | 2022 £m | 2021 £m | 2020 £m | ||
Interest income: | |||||||
Loans and advances to banks and reverse repurchase agreements | 1.16 | 0.11 | 0.20 | 947 | 70 | 114 | |
Loans and advances to customers and reverse repurchase agreements | 3.01 | 2.55 | 2.76 | 14,523 | 12,334 | 13,358 | |
Debt securities | 2.22 | 1.57 | 1.82 | 145 | 74 | 92 | |
Financial assets held at amortised cost | 2.73 | 2.27 | 2.48 | 15,615 | 12,478 | 13,564 | |
Financial assets at fair value through other comprehensive income | 4.02 | 1.69 | 1.12 | 947 | 442 | 302 | |
Total interest income1 | 2.79 | 2.24 | 2.42 | 16,562 | 12,920 | 13,866 | |
Interest expense: | |||||||
Deposits from banks | 1.90 | 1.34 | 1.19 | (78) | (66) | (82) | |
Customer deposits | 0.34 | 0.12 | 0.40 | (1,083) | (386) | (1,270) | |
Repurchase agreements at amortised cost | 1.79 | 0.10 | 0.36 | (827) | (22) | (117) | |
Debt securities in issue2 | 2.08 | 1.37 | 1.13 | (1,075) | (746) | (761) | |
Lease liabilities | 2.07 | 2.01 | 2.36 | (27) | (30) | (39) | |
Subordinated liabilities | 5.55 | 7.01 | 7.19 | (367) | (634) | (827) | |
Total interest expense3 | 0.81 | 0.45 | 0.71 | (3,457) | (1,884) | (3,096) | |
Net interest income | 13,105 | 11,036 | 10,770 | ||||
2022 £m | 2021 £m | 2020 £m | |
Fee and commission income: | |||
Current accounts | 642 | 634 | 610 |
Credit and debit card fees | 1,190 | 878 | 748 |
Commercial banking fees | 196 | 284 | 169 |
Factoring | 79 | 76 | 76 |
Other fees and commissions | 245 | 323 | 321 |
Total fee and commission income | 2,352 | 2,195 | 1,924 |
Fee and commission expense | (1,101) | (942) | (909) |
Net fee and commission income | 1,251 | 1,253 | 1,015 |
2022 £m | 2021 £m | 2020 £m | |
Foreign exchange translation gains | 6 | 10 | 74 |
Gains on foreign exchange trading transactions | 341 | 329 | 326 |
Total foreign exchange | 347 | 339 | 400 |
Investment property losses | – | – | (20) |
Securities and other (losses) gains (see below) | (167) | 46 | 370 |
Net trading income | 180 | 385 | 750 |
2022 £m | 2021 £m | 2020 £m | |||
Net income arising on assets and liabilities mandatorily held at fair value through profit or loss: | |||||
Financial instruments held for trading1 | (24) | 94 | 440 | ||
Other financial instruments mandatorily held at fair value through profit or loss: | |||||
Debt securities, loans and advances | 7 | 6 | 37 | ||
Equity shares | 3 | 11 | 9 | ||
(14) | 111 | 486 | |||
Net expense arising on assets and liabilities designated at fair value through profit or loss | (153) | (65) | (116) | ||
Securities and other (losses) gains | (167) | 46 | 370 |
2022 £m | 2021 £m | 2020 £m | |
Operating lease rental income | 1,077 | 1,059 | 1,120 |
Gains less losses on disposal of financial assets at fair value through other comprehensive income (note 33) | (76) | (116) | 145 |
Liability management | (21) | (39) | (216) |
Intercompany recharges and other | 1,229 | 1,095 | 1,001 |
Total other operating income | 2,209 | 1,999 | 2,050 |
2022 £m | 2021 £m | 2020 £m | |||
Staff costs: | |||||
Salaries | 2,350 | 2,260 | 2,382 | ||
Performance-based compensation | 409 | 282 | 106 | ||
Social security costs | 322 | 290 | 271 | ||
Pensions and other post-retirement benefit schemes (note 27) | 439 | 523 | 552 | ||
Restructuring costs | 36 | 88 | 161 | ||
Other staff costs | 297 | 249 | 143 | ||
3,853 | 3,692 | 3,615 | |||
Premises and equipment costs: | |||||
Rent and rates | 102 | 116 | 115 | ||
Repairs and maintenance | 136 | 161 | 172 | ||
Other1 | 54 | (62) | 138 | ||
292 | 215 | 425 | |||
Other expenses: | |||||
Communications and data processing | 1,412 | 1,154 | 996 | ||
Advertising and promotion | 170 | 161 | 184 | ||
Professional fees | 210 | 150 | 128 | ||
Regulatory and legal provisions (note 29) | 225 | 1,177 | 414 | ||
Other | 689 | 880 | 760 | ||
2,706 | 3,522 | 2,482 | |||
Depreciation and amortisation: | |||||
Depreciation of property, plant and equipment2 | 1,453 | 1,823 | 2,017 | ||
Amortisation of other intangible assets (note 20) | 895 | 954 | 653 | ||
2,348 | 2,777 | 2,670 | |||
Goodwill impairment (note 19) | – | – | 4 | ||
Total operating expenses | 9,199 | 10,206 | 9,196 |
2022 | 2021 | 2020 | |||
UK | 62,062 | 63,649 | 67,115 | ||
Overseas | 487 | 512 | 515 | ||
Total | 62,549 | 64,161 | 67,630 |
2022 £m | 2021 £m | 2020 £m | |||
Fees payable for the: | |||||
– audit of the Bank's current year Annual report | 4.9 | 4.7 | 4.5 | ||
– audits of the Bank's subsidiaries | 10.8 | 9.5 | 8.9 | ||
– total audit fees in respect of the statutory audit of Group entities2 | 15.7 | 14.2 | 13.4 | ||
– services normally provided in connection with statutory and regulatory filings or engagements | 0.8 | 0.7 | 1.6 | ||
Total audit fees3 | 16.5 | 14.9 | 15.0 | ||
Other audit-related fees3 | 0.4 | 0.4 | 0.3 | ||
All other fees3 | 0.2 | 0.5 | 0.9 | ||
Total non-audit services4 | 0.6 | 0.9 | 1.2 | ||
Total fees payable to the Bank’s auditors by the Group | 17.1 | 15.8 | 16.2 |
2022 £m | 2021 £m | 2020 £m | |
Audits of Group pension schemes | 0.3 | 0.3 | 0.1 |
Reviews of the financial position of corporate and other borrowers | – | – | 1.3 |
Stage 1 £m | Stage 2 £m | Stage 3 £m | POCI £m | Total £m | |||||
Year ended 31 December 2022 | |||||||||
Impact of transfers between stages | (23) | 573 | 357 | – | 907 | ||||
Other changes in credit quality | (284) | 90 | 663 | 78 | 547 | ||||
Additions and repayments | 114 | 97 | (91) | (58) | 62 | ||||
Methodology and model changes | 2 | 11 | (47) | (29) | (63) | ||||
Other items | – | – | (1) | – | (1) | ||||
(168) | 198 | 524 | (9) | 545 | |||||
Total impairment charge (credit) | (191) | 771 | 881 | (9) | 1,452 | ||||
In respect of: | |||||||||
Loans and advances to banks | 9 | – | – | – | 9 | ||||
Loans and advances to customers | (232) | 679 | 882 | (9) | 1,320 | ||||
Debt securities | 6 | – | – | – | 6 | ||||
Financial assets at amortised cost | (217) | 679 | 882 | (9) | 1,335 | ||||
Impairment charge (credit) on drawn balances | (217) | 679 | 882 | (9) | 1,335 | ||||
Loan commitments and financial guarantees | 20 | 92 | (1) | – | 111 | ||||
Financial assets at fair value through other comprehensive income | 6 | – | – | – | 6 | ||||
Total impairment charge (credit) | (191) | 771 | 881 | (9) | 1,452 |
Stage 1 £m | Stage 2 £m | Stage 3 £m | POCI £m | Total £m | |||||
Year ended 31 December 2021 | |||||||||
Impact of transfers between stages | 74 | (474) | 339 | – | (61) | ||||
Other changes in credit quality | (313) | (307) | 252 | (48) | (416) | ||||
Additions and repayments | (231) | (379) | (97) | (87) | (794) | ||||
Methodology and model changes | (63) | 15 | 6 | – | (42) | ||||
Other items | 2 | 4 | (11) | – | (5) | ||||
(605) | (667) | 150 | (135) | (1,257) | |||||
Total impairment (credit) charge | (531) | (1,141) | 489 | (135) | (1,318) | ||||
In respect of: | |||||||||
Loans and advances to banks | (4) | – | – | – | (4) | ||||
Loans and advances to customers | (436) | (1,008) | 498 | (135) | (1,081) | ||||
Financial assets at amortised cost | (440) | (1,008) | 498 | (135) | (1,085) | ||||
Impairment (credit) charge on drawn balances | (440) | (1,008) | 498 | (135) | (1,085) | ||||
Loan commitments and financial guarantees | (89) | (133) | (9) | – | (231) | ||||
Financial assets at fair value through other comprehensive income | (2) | – | – | – | (2) | ||||
Total impairment (credit) charge | (531) | (1,141) | 489 | (135) | (1,318) |
Stage 1 £m | Stage 2 £m | Stage 3 £m | POCI £m | Total £m | |||||
Year ended 31 December 2020 | |||||||||
Impact of transfers between stages | (168) | 925 | 699 | – | 1,456 | ||||
Other changes in credit quality | 909 | 6 | 1,164 | 167 | 2,246 | ||||
Additions and repayments | 77 | 173 | (52) | (30) | 168 | ||||
Methodology and model changes | (31) | 170 | 26 | – | 165 | ||||
Other items | – | – | 25 | – | 25 | ||||
955 | 349 | 1,163 | 137 | 2,604 | |||||
Total impairment charge | 787 | 1,274 | 1,862 | 137 | 4,060 | ||||
In respect of: | |||||||||
Loans and advances to banks | 4 | – | – | – | 4 | ||||
Loans and advances to customers | 678 | 1,130 | 1,853 | 137 | 3,798 | ||||
Financial assets at amortised cost | 682 | 1,130 | 1,853 | 137 | 3,802 | ||||
Impairment charge on drawn balances | 682 | 1,130 | 1,853 | 137 | 3,802 | ||||
Loan commitments and financial guarantees | 100 | 144 | 9 | – | 253 | ||||
Financial assets at fair value through other comprehensive income | 5 | – | – | – | 5 | ||||
Total impairment charge | 787 | 1,274 | 1,862 | 137 | 4,060 |
2022 £m | 2021 £m | 2020 £m | |||
UK corporation tax: | |||||
Current tax on profit for the year | (1,050) | (1,349) | (423) | ||
Adjustments in respect of prior years | 110 | 83 | 336 | ||
(940) | (1,266) | (87) | |||
Foreign tax: | |||||
Current tax on profit for the year | (20) | (21) | (18) | ||
Adjustments in respect of prior years | (12) | 22 | 24 | ||
(32) | 1 | 6 | |||
Current tax expense | (972) | (1,265) | (81) | ||
Deferred tax: | |||||
Current year | (498) | 851 | 508 | ||
Adjustments in respect of prior years | 170 | (169) | (290) | ||
Deferred tax (expense) credit | (328) | 682 | 218 | ||
Tax (expense) credit | (1,300) | (583) | 137 |
2022 £m | 2021 £m | 2020 £m | |
Profit before tax | 6,094 | 5,785 | 1,329 |
UK corporation tax thereon | (1,158) | (1,099) | (253) |
Impact of surcharge on banking profits | (340) | (415) | (122) |
Non-deductible costs: conduct charges | (5) | (167) | (24) |
Non-deductible costs: bank levy | (25) | (19) | (30) |
Other non-deductible costs | (58) | (59) | (62) |
Non-taxable income | 48 | 22 | 37 |
Tax relief on coupons on other equity instruments | 46 | 65 | 79 |
Tax-exempt gains on disposals | – | 2 | – |
Tax losses where no deferred tax recognised | – | – | (3) |
Remeasurement of deferred tax due to rate changes | (21) | 1,168 | 435 |
Differences in overseas tax rates | (55) | (17) | 10 |
Adjustments in respect of prior years | 268 | (64) | 70 |
Tax (expense) credit | (1,300) | (583) | 137 |
2022 £m | 2021 £m | |
Loans and advances to customers | 1,132 | 1,559 |
Equity shares | 239 | 239 |
Total | 1,371 | 1,798 |
2022 | 2021 | ||||||||||
Contract/ notional amount £m | Fair value assets £m | Fair value liabilities £m | Contract/ notional amount £m | Fair value assets £m | Fair value liabilities £m | ||||||
Trading and other | |||||||||||
Exchange rate contracts: | |||||||||||
Spot, forwards and futures | 17,471 | 244 | 362 | 12,243 | 144 | 156 | |||||
Currency swaps | 96,614 | 1,255 | 1,613 | 155,190 | 693 | 595 | |||||
Options purchased | 30 | 1 | – | 5 | – | – | |||||
Options written | 30 | – | 1 | 5 | – | – | |||||
114,145 | 1,500 | 1,976 | 167,443 | 837 | 751 | ||||||
Interest rate contracts: | |||||||||||
Interest rate swaps | 1,120,668 | 2,164 | 3,112 | 931,834 | 4,525 | 3,300 | |||||
Forward rate agreements | – | – | – | 21 | – | – | |||||
Options purchased | 1,881 | 57 | – | 2,128 | 19 | – | |||||
Options written | 1,750 | – | 59 | 1,229 | – | 10 | |||||
1,124,299 | 2,221 | 3,171 | 935,212 | 4,544 | 3,310 | ||||||
Credit derivatives | 4,058 | 105 | 97 | 4,390 | 64 | 101 | |||||
Equity and other contracts | 63 | 12 | 141 | 44 | 11 | 166 | |||||
Total derivative assets/liabilities - trading and other | 1,242,565 | 3,838 | 5,385 | 1,107,089 | 5,456 | 4,328 | |||||
Hedging | |||||||||||
Derivatives designated as fair value hedges: | |||||||||||
Interest rate swaps | 128,153 | 8 | 496 | 147,724 | 41 | 307 | |||||
Currency swaps | 35 | 1 | – | 34 | 7 | – | |||||
128,188 | 9 | 496 | 147,758 | 48 | 307 | ||||||
Derivatives designated as cash flow hedges: | |||||||||||
Interest rate swaps | 235,916 | – | – | 97,942 | – | – | |||||
Exchange rate forward rate agreements | 310 | 10 | 10 | 571 | 7 | 8 | |||||
236,226 | 10 | 10 | 98,513 | 7 | 8 | ||||||
Total derivative assets/liabilities - hedging | 364,414 | 19 | 506 | 246,271 | 55 | 315 | |||||
Total recognised derivative assets/liabilities | 1,606,979 | 3,857 | 5,891 | 1,353,360 | 5,511 | 4,643 | |||||
Maturity | |||||||||||
At 31 December 2022 | Up to 1 month £m | 1–3 months £m | 3–12 months £m | 1–5 years £m | Over 5 years £m | Total £m | |||||
Fair value hedges | |||||||||||
Interest rate | |||||||||||
Cross currency swap | |||||||||||
Notional | – | – | – | – | 35 | 35 | |||||
Average fixed interest rate | – | – | – | – | 1.28% | ||||||
Average EUR/GBP exchange rate | – | – | – | – | 1.38 | ||||||
Interest rate swap | |||||||||||
Notional | 796 | 12,236 | 31,539 | 51,094 | 32,488 | 128,153 | |||||
Average fixed interest rate | 3.20% | 0.10% | 0.68% | 2.04% | 1.88% | ||||||
Cash flow hedges | |||||||||||
Foreign exchange | |||||||||||
Currency swap | |||||||||||
Notional | 16 | 35 | 207 | 48 | 4 | 310 | |||||
Average EUR/GBP exchange rate | – | – | – | – | – | ||||||
Average USD/GBP exchange rate | 1.23 | 1.26 | 1.19 | 1.23 | 1.18 | ||||||
Interest rate | |||||||||||
Interest rate swap | |||||||||||
Notional | 4,476 | 4,891 | 24,929 | 152,862 | 48,758 | 235,916 | |||||
Average fixed interest rate | 3.18% | 1.46% | 2.42% | 2.46% | 1.63% | ||||||
Maturity | |||||||||||
At 31 December 2021 | Up to 1 month £m | 1–3 months £m | 3–12 months £m | 1–5 years £m | Over 5 years £m | Total £m | |||||
Fair value hedges | |||||||||||
Interest rate | |||||||||||
Cross currency swap | |||||||||||
Notional | – | – | – | – | 34 | 34 | |||||
Average fixed interest rate | – | – | – | – | 1.28% | ||||||
Average EUR/GBP exchange rate | – | – | – | – | 1.38 | ||||||
Interest rate swap | |||||||||||
Notional | 283 | 1,684 | 15,631 | 105,666 | 24,460 | 147,724 | |||||
Average fixed interest rate | 2.21% | 2.13% | 0.94% | 0.62% | 1.87% | ||||||
Cash flow hedges | |||||||||||
Foreign exchange | |||||||||||
Currency swap | |||||||||||
Notional | 31 | 117 | 325 | 98 | – | 571 | |||||
Average EUR/GBP exchange rate | 1.14 | 1.16 | 1.15 | 1.13 | – | ||||||
Average USD/GBP exchange rate | 1.36 | 1.35 | 1.37 | 1.34 | 1.34 | ||||||
Interest rate | |||||||||||
Interest rate swap | |||||||||||
Notional | 1,000 | 500 | 9,542 | 51,186 | 35,714 | 97,942 | |||||
Average fixed interest rate | 0.00% | 0.17% | 0.56% | 0.88% | 0.67% | ||||||
Carrying amount of the hedging instrument | ||||
At 31 December 2022 | Contract/ notional amount £m | Assets £m | Liabilities £m | Changes in fair value used for calculating hedge ineffectiveness £m |
Fair value hedges | ||||
Interest rate | ||||
Currency swaps | 35 | 1 | – | (2) |
Interest rate swaps | 128,153 | 8 | 496 | 3,108 |
Cash flow hedges | ||||
Foreign exchange | ||||
Currency swaps | 310 | 10 | 10 | 25 |
Interest rate | ||||
Interest rate swaps | 235,916 | – | – | (6,417) |
Carrying amount of the hedging instrument | ||||
At 31 December 2021 | Contract/ notional amount £m | Assets £m | Liabilities £m | Changes in fair value used for calculating hedge ineffectiveness £m |
Fair value hedges | ||||
Interest rate | ||||
Currency swaps | 34 | 7 | – | (2) |
Interest rate swaps | 147,724 | 41 | 307 | 1,887 |
Cash flow hedges | ||||
Foreign exchange | ||||
Currency swaps | 571 | 7 | 8 | (26) |
Interest rate | ||||
Interest rate swaps | 97,942 | – | – | (2,444) |
Carrying amount of the hedged item | Accumulated amount of fair value adjustment on the hedged item | Change in fair value of hedged item for ineffectiveness assessment £m | Cash flow hedging reserve | ||||||||||
Continuing hedges £m | Discontinued hedges £m | ||||||||||||
At 31 December 2022 | Assets £m | Liabilities £m | Assets £m | Liabilities £m | |||||||||
Fair value hedges | |||||||||||||
Interest rate | |||||||||||||
Fixed rate mortgages1 | 73,282 | – | (2,602) | – | (3,199) | ||||||||
Fixed rate issuance2 | – | 28,391 | – | 2,069 | 2,422 | ||||||||
Fixed rate bonds3 | 19,259 | – | (1,549) | – | (2,350) | ||||||||
Cash flow hedges | |||||||||||||
Foreign exchange | |||||||||||||
Foreign currency issuance2 | (25) | 6 | 11 | ||||||||||
Customer deposits4 | – | – | 3 | ||||||||||
Interest rate | |||||||||||||
Customer loans1 | 5,931 | (6,051) | (921) | ||||||||||
Central bank balances5 | 2,194 | (1,597) | (916) | ||||||||||
Customer deposits4 | (1,661) | 2,332 | (46) | ||||||||||
Carrying amount of the hedged item | Accumulated amount of fair value adjustment on the hedged item | Change in fair value of hedged item for ineffectiveness assessment £m | Cash flow hedging reserve | ||||||||||
Continuing hedges £m | Discontinued hedges £m | ||||||||||||
At 31 December 2021 | Assets £m | Liabilities £m | Assets £m | Liabilities £m | |||||||||
Fair value hedges | |||||||||||||
Interest rate | |||||||||||||
Fixed rate mortgages1 | 88,791 | – | (872) | – | (2,081) | ||||||||
Fixed rate issuance2 | – | 33,128 | – | 411 | 1,149 | ||||||||
Fixed rate bonds3 | 25,019 | – | 342 | – | (758) | ||||||||
Cash flow hedges | |||||||||||||
Foreign exchange | |||||||||||||
Foreign currency issuance2 | 5 | (19) | 17 | ||||||||||
Customer deposits4 | 21 | – | – | ||||||||||
Interest rate | |||||||||||||
Customer loans1 | 1,842 | (711) | 453 | ||||||||||
Central bank balances5 | 588 | (235) | (109) | ||||||||||
Customer deposits4 | (89) | 32 | (85) | ||||||||||
Gain (loss) recognised in other comprehensive income £m | Hedge ineffectiveness recognised in the income statement1 £m | Amounts reclassified from reserves to income statement as: | ||||||
At 31 December 2022 | Hedged cash flows will no longer occur £m | Hedged item affected income statement £m | Income statement line item that includes reclassified amount | |||||
Fair value hedges | ||||||||
Interest rate | ||||||||
Fixed rate mortgages | 22 | |||||||
Fixed rate issuance | (29) | |||||||
Fixed rate bonds | (14) | |||||||
Cash flow hedges | ||||||||
Foreign exchange | ||||||||
Foreign currency issuance | 25 | – | – | (6) | Interest expense | |||
Customer deposits | 3 | – | – | – | Interest expense | |||
Interest rate | ||||||||
Customer loans | (6,718) | (29) | – | 5 | Interest income | |||
Central bank balances | (2,171) | 1 | – | 2 | Interest income | |||
Customer deposits | 2,341 | 22 | – | (2) | Interest expense | |||
Gain (loss) recognised in other comprehensive income £m | Hedge ineffectiveness recognised in the income statement1 £m | Amounts reclassified from reserves to income statement as: | ||||||
At 31 December 2021 | Hedged cash flows will no longer occur £m | Hedged item affected income statement £m | Income statement line item that includes reclassified amount | |||||
Fair value hedges | ||||||||
Interest rate | ||||||||
Fixed rate mortgages | 206 | |||||||
Fixed rate issuance | (4) | |||||||
Fixed rate bonds | (7) | |||||||
Cash flow hedges | ||||||||
Foreign exchange | ||||||||
Foreign currency issuance | (6) | – | (3) | (18) | Interest expense | |||
Customer deposits | 28 | – | – | – | Interest expense | |||
Interest rate | ||||||||
Customer loans | (1,719) | (42) | – | (454) | Interest income | |||
Central bank balances | (499) | (17) | – | (134) | Interest income | |||
Customer deposits | 58 | 1 | – | 25 | Interest expense | |||
Gross carrying amount | Allowance for expected credit losses | ||||||||||||||||||
Stage 1 £m | Stage 2 £m | Stage 3 £m | POCI £m | Total £m | Stage 1 £m | Stage 2 £m | Stage 3 £m | POCI £m | Total £m | ||||||||||
Loans and advances to banks | |||||||||||||||||||
At 1 January 2022 | 4,478 | – | – | – | 4,478 | – | – | – | – | – | |||||||||
Exchange and other adjustments | 421 | – | – | – | 421 | – | – | – | – | – | |||||||||
Transfers to Stage 2 | (2) | 2 | – | – | – | – | – | – | |||||||||||
Impact of transfers between stages | (2) | 2 | – | – | – | – | – | – | |||||||||||
– | – | – | – | ||||||||||||||||
Other changes in credit quality | 7 | – | – | – | 7 | ||||||||||||||
Additions and repayments | 3,472 | 1 | – | – | 3,473 | 2 | – | – | – | 2 | |||||||||
Charge to the income statement | 9 | – | – | – | 9 | ||||||||||||||
At 31 December 2022 | 8,369 | 3 | – | – | 8,372 | 9 | – | – | – | 9 | |||||||||
Allowance for impairment losses | (9) | – | – | – | (9) | ||||||||||||||
Net carrying amount | 8,360 | 3 | – | – | 8,363 | ||||||||||||||
Loans and advances to customers | |||||||||||||||||||
At 1 January 2022 | 382,366 | 34,884 | 6,406 | 10,977 | 434,633 | 909 | 1,112 | 1,573 | 210 | 3,804 | |||||||||
Exchange and other adjustments1 | (1,574) | 24 | (21) | 12 | (1,559) | 1 | 1 | 43 | 65 | 110 | |||||||||
Transfers to Stage 1 | 8,329 | (8,256) | (73) | – | 176 | (167) | (9) | – | |||||||||||
Transfers to Stage 2 | (34,889) | 35,291 | (402) | – | (66) | 135 | (69) | – | |||||||||||
Transfers to Stage 3 | (1,235) | (2,527) | 3,762 | – | (8) | (158) | 166 | – | |||||||||||
Impact of transfers between stages | (27,795) | 24,508 | 3,287 | – | (119) | 697 | 268 | 846 | |||||||||||
(17) | 507 | 356 | 846 | ||||||||||||||||
Other changes in credit quality | (314) | 73 | 664 | 78 | 501 | ||||||||||||||
Additions and repayments | 9,769 | 687 | (1,315) | (1,354) | 7,787 | 97 | 88 | (91) | (58) | 36 | |||||||||
Methodology and model changes | 2 | 11 | (47) | (29) | (63) | ||||||||||||||
(Credit) charge to the income statement | (232) | 679 | 882 | (9) | 1,320 | ||||||||||||||
Advances written off | (928) | (13) | (941) | (928) | (13) | (941) | |||||||||||||
Recoveries of advances written off in previous years | 182 | – | 182 | 182 | – | 182 | |||||||||||||
At 31 December 2022 | 362,766 | 60,103 | 7,611 | 9,622 | 440,102 | 678 | 1,792 | 1,752 | 253 | 4,475 | |||||||||
Allowance for impairment losses | (678) | (1,792) | (1,752) | (253) | (4,475) | ||||||||||||||
Net carrying amount | 362,088 | 58,311 | 5,859 | 9,369 | 435,627 | ||||||||||||||
Drawn ECL coverage2 (%) | 0.2 | 3.0 | 23.0 | 2.6 | 1.0 | ||||||||||||||
Reverse repurchase agreements | |||||||||||||||||||
At 31 December 2022 | 39,259 | – | – | – | 39,259 | ||||||||||||||
Allowance for impairment losses | – | – | – | – | – | ||||||||||||||
Net carrying amount | 39,259 | – | – | – | 39,259 | ||||||||||||||
Gross carrying amount | Allowance for expected credit losses | ||||||||||||||||||
Stage 1 £m | Stage 2 £m | Stage 3 £m | POCI £m | Total £m | Stage 1 £m | Stage 2 £m | Stage 3 £m | POCI £m | Total £m | ||||||||||
Debt securities | |||||||||||||||||||
At 1 January 2022 | 4,554 | 9 | 1 | – | 4,564 | 1 | – | 1 | – | 2 | |||||||||
Exchange and other adjustments | 205 | – | – | – | 205 | – | – | – | – | – | |||||||||
Transfers to Stage 1 | 9 | (9) | – | – | – | – | – | – | |||||||||||
Impact of transfers between stages | 9 | (9) | – | – | – | – | – | – | |||||||||||
– | – | – | – | ||||||||||||||||
Other changes in credit quality | 3 | – | – | – | 3 | ||||||||||||||
Additions and repayments | 2,570 | – | – | – | 2,570 | 3 | – | – | – | 3 | |||||||||
Charge to the income statement | 6 | – | – | – | 6 | ||||||||||||||
At 31 December 2022 | 7,338 | – | 1 | – | 7,339 | 7 | – | 1 | – | 8 | |||||||||
Allowance for impairment losses | (7) | – | (1) | – | (8) | ||||||||||||||
Net carrying amount | 7,331 | – | – | – | 7,331 | ||||||||||||||
Due from fellow Lloyds Banking Group undertakings | |||||||||||||||||||
At 31 December 2022 | 816 | – | – | – | 816 | ||||||||||||||
Allowance for impairment losses | – | – | – | – | – | ||||||||||||||
Net carrying amount | 816 | – | – | – | 816 | ||||||||||||||
Total financial assets at amortised cost | 417,854 | 58,314 | 5,859 | 9,369 | 491,396 | ||||||||||||||
Gross carrying amount | Allowance for expected credit losses | ||||||||||||||||||
Stage 1 £m | Stage 2 £m | Stage 3 £m | POCI £m | Total £m | Stage 1 £m | Stage 2 £m | Stage 3 £m | POCI £m | Total £m | ||||||||||
Retail – UK mortgages | |||||||||||||||||||
At 1 January 2022 | 273,629 | 21,798 | 1,940 | 10,977 | 308,344 | 48 | 394 | 184 | 210 | 836 | |||||||||
Exchange and other adjustments1 | – | – | – | 12 | 12 | – | – | 28 | 65 | 93 | |||||||||
Transfers to Stage 1 | 5,107 | (5,096) | (11) | – | 28 | (27) | (1) | – | |||||||||||
Transfers to Stage 2 | (26,043) | 26,204 | (161) | – | (14) | 25 | (11) | – | |||||||||||
Transfers to Stage 3 | (444) | (1,793) | 2,237 | – | – | (63) | 63 | – | |||||||||||
Impact of transfers between stages | (21,380) | 19,315 | 2,065 | – | (25) | 254 | 98 | 327 | |||||||||||
(11) | 189 | 149 | 327 | ||||||||||||||||
Other changes in credit quality | 36 | (9) | 54 | 78 | 159 | ||||||||||||||
Additions and repayments | 5,268 | 670 | (585) | (1,354) | 3,999 | 18 | (10) | (45) | (58) | (95) | |||||||||
Methodology and model changes | – | (12) | (55) | (29) | (96) | ||||||||||||||
Charge (credit) to the income statement | 43 | 158 | 103 | (9) | 295 | ||||||||||||||
Advances written off | (28) | (13) | (41) | (28) | (13) | (41) | |||||||||||||
Recoveries of advances written off in previous years | 24 | – | 24 | 24 | – | 24 | |||||||||||||
At 31 December 2022 | 257,517 | 41,783 | 3,416 | 9,622 | 312,338 | 91 | 552 | 311 | 253 | 1,207 | |||||||||
Allowance for impairment losses | (91) | (552) | (311) | (253) | (1,207) | ||||||||||||||
Net carrying amount | 257,426 | 41,231 | 3,105 | 9,369 | 311,131 | ||||||||||||||
Drawn ECL coverage (%) | – | 1.3 | 9.1 | 2.6 | 0.4 | ||||||||||||||
Allowance for expected credit losses | |||||||||||||||||||
Stage 1 £m | Stage 2 £m | Stage 3 £m | POCI £m | Total £m | |||||||||||||||
Undrawn balances | |||||||||||||||||||
At 1 January 2022 | 103 | 86 | 5 | – | 194 | ||||||||||||||
Exchange and other adjustments | (1) | – | – | – | (1) | ||||||||||||||
Transfers to Stage 1 | 19 | (19) | – | – | |||||||||||||||
Transfers to Stage 2 | (8) | 9 | (1) | – | |||||||||||||||
Transfers to Stage 3 | (1) | (2) | 3 | – | |||||||||||||||
Impact of transfers between stages | (16) | 78 | (1) | 61 | |||||||||||||||
(6) | 66 | 1 | 61 | ||||||||||||||||
Other items taken to the income statement | 26 | 26 | (2) | – | 50 | ||||||||||||||
Charge to the income statement | 20 | 92 | (1) | – | 111 | ||||||||||||||
At 31 December 2022 | 122 | 178 | 4 | – | 304 | ||||||||||||||
Allowance for expected credit losses | |||||||||||||||||||
Stage 1 £m | Stage 2 £m | Stage 3 £m | POCI £m | Total £m | |||||||||||||||
In respect of: | |||||||||||||||||||
Loans and advances to banks | 9 | – | – | – | 9 | ||||||||||||||
Loans and advances to customers | 678 | 1,792 | 1,752 | 253 | 4,475 | ||||||||||||||
Debt securities | 7 | – | 1 | – | 8 | ||||||||||||||
Due from fellow Lloyds Banking Group undertakings | – | – | – | – | – | ||||||||||||||
Financial assets at amortised cost | 694 | 1,792 | 1,753 | 253 | 4,492 | ||||||||||||||
Provisions in relation to loan commitments and financial guarantees | 122 | 178 | 4 | – | 304 | ||||||||||||||
Total | 816 | 1,970 | 1,757 | 253 | 4,796 | ||||||||||||||
Expected credit loss in respect of financial assets at fair value through other comprehensive income (memorandum item) | 9 | – | – | – | 9 | ||||||||||||||
Gross carrying amount | Allowance for expected credit losses | ||||||||||||||||||
Stage 1 £m | Stage 2 £m | Stage 3 £m | POCI £m | Total £m | Stage 1 £m | Stage 2 £m | Stage 3 £m | POCI £m | Total £m | ||||||||||
Loans and advances to banks | |||||||||||||||||||
At 1 January 2021 | 4,328 | – | – | – | 4,328 | 4 | – | – | – | 4 | |||||||||
Exchange and other adjustments | 15 | – | – | – | 15 | – | – | – | – | – | |||||||||
Other changes in credit quality | (3) | – | – | – | (3) | ||||||||||||||
Additions and repayments | 135 | – | – | – | 135 | (1) | – | – | – | (1) | |||||||||
Credit to the income statement | (4) | – | – | – | (4) | ||||||||||||||
At 31 December 2021 | 4,478 | – | – | – | 4,478 | – | – | – | – | – | |||||||||
Allowance for impairment losses | – | – | – | – | – | ||||||||||||||
Net carrying amount | 4,478 | – | – | – | 4,478 | ||||||||||||||
Loans and advances to customers | |||||||||||||||||||
At 1 January 2021 | 361,161 | 51,280 | 6,443 | 12,511 | 431,395 | 1,347 | 2,125 | 1,968 | 261 | 5,701 | |||||||||
Exchange and other adjustments1 | (2,518) | (31) | (82) | 68 | (2,563) | (2) | (5) | 5 | 121 | 119 | |||||||||
Transfers to Stage 1 | 18,662 | (18,623) | (39) | – | 562 | (551) | (11) | – | |||||||||||
Transfers to Stage 2 | (11,995) | 12,709 | (714) | – | (48) | 155 | (107) | – | |||||||||||
Transfers to Stage 3 | (872) | (1,818) | 2,690 | – | (13) | (220) | 233 | – | |||||||||||
Impact of transfers between stages | 5,795 | (7,732) | 1,937 | – | (426) | 193 | 221 | (12) | |||||||||||
75 | (423) | 336 | (12) | ||||||||||||||||
Other changes in credit quality | (239) | (256) | 254 | (48) | (289) | ||||||||||||||
Additions and repayments | 17,928 | (8,633) | (994) | (1,565) | 6,736 | (209) | (344) | (98) | (87) | (738) | |||||||||
Methodology and model changes | (63) | 15 | 6 | – | (42) | ||||||||||||||
(Credit) charge to the income statement | (436) | (1,008) | 498 | (135) | (1,081) | ||||||||||||||
Advances written off | (1,057) | (37) | (1,094) | (1,057) | (37) | (1,094) | |||||||||||||
Recoveries of advances written off in previous years | 159 | – | 159 | 159 | – | 159 | |||||||||||||
At 31 December 2021 | 382,366 | 34,884 | 6,406 | 10,977 | 434,633 | 909 | 1,112 | 1,573 | 210 | 3,804 | |||||||||
Allowance for impairment losses | (909) | (1,112) | (1,573) | (210) | (3,804) | ||||||||||||||
Net carrying amount | 381,457 | 33,772 | 4,833 | 10,767 | 430,829 | ||||||||||||||
Drawn ECL coverage (%) | 0.2 | 3.2 | 24.6 | 1.9 | 0.9 | ||||||||||||||
Reverse repurchase agreements | |||||||||||||||||||
At 31 December 2021 | 49,708 | – | – | – | 49,708 | ||||||||||||||
Allowance for impairment losses | – | – | – | – | – | ||||||||||||||
Net carrying amount | 49,708 | – | – | – | 49,708 | ||||||||||||||
Gross carrying amount | Allowance for expected credit losses | ||||||||||||||||||
Stage 1 £m | Stage 2 £m | Stage 3 £m | POCI £m | Total £m | Stage 1 £m | Stage 2 £m | Stage 3 £m | POCI £m | Total £m | ||||||||||
Debt securities | |||||||||||||||||||
At 1 January 2021 | 5,137 | – | 1 | – | 5,138 | – | – | 1 | – | 1 | |||||||||
Exchange and other adjustments | (20) | – | – | – | (20) | 1 | – | – | – | 1 | |||||||||
Transfers to Stage 2 | (6) | 6 | – | – | – | – | – | – | – | ||||||||||
Impact of transfers between stages | (6) | 6 | – | – | – | – | – | – | – | ||||||||||
– | – | – | – | ||||||||||||||||
Additions and repayments | (557) | 3 | – | – | (554) | – | – | – | – | – | |||||||||
Charge to the income statement | – | – | – | – | – | ||||||||||||||
At 31 December 2021 | 4,554 | 9 | 1 | – | 4,564 | 1 | – | 1 | – | 2 | |||||||||
Allowance for impairment losses | (1) | – | (1) | – | (2) | ||||||||||||||
Net carrying amount | 4,553 | 9 | – | – | 4,562 | ||||||||||||||
Due from fellow Lloyds Banking Group undertakings | |||||||||||||||||||
At 31 December 2021 | 739 | – | – | – | 739 | ||||||||||||||
Allowance for impairment losses | – | – | – | – | – | ||||||||||||||
Net carrying amount | 739 | – | – | – | 739 | ||||||||||||||
Total financial assets at amortised cost | 440,935 | 33,781 | 4,833 | 10,767 | 490,316 | ||||||||||||||
Gross carrying amount | Allowance for expected credit losses | ||||||||||||||||||
Stage 1 £m | Stage 2 £m | Stage 3 £m | POCI £m | Total £m | Stage 1 £m | Stage 2 £m | Stage 3 £m | POCI £m | Total £m | ||||||||||
Retail – UK mortgages | |||||||||||||||||||
At 1 January 2021 | 251,418 | 29,018 | 1,859 | 12,511 | 294,806 | 104 | 468 | 191 | 261 | 1,024 | |||||||||
Exchange and other adjustments1 | – | – | – | 68 | 68 | – | – | 18 | 121 | 139 | |||||||||
Transfers to Stage 1 | 10,109 | (10,105) | (4) | – | 66 | (66) | – | – | |||||||||||
Transfers to Stage 2 | (6,930) | 7,425 | (495) | – | (5) | 37 | (32) | – | |||||||||||
Transfers to Stage 3 | (147) | (942) | 1,089 | – | – | (35) | 35 | – | |||||||||||
Impact of transfers between stages | 3,032 | (3,622) | 590 | – | (58) | 84 | 48 | 74 | |||||||||||
3 | 20 | 51 | 74 | ||||||||||||||||
Other changes in credit quality | (14) | (32) | (30) | (48) | (124) | ||||||||||||||
Additions and repayments | 19,179 | (3,598) | (490) | (1,565) | 13,526 | 8 | (52) | (33) | (87) | (164) | |||||||||
Methodology and model changes | (53) | (10) | 6 | – | (57) | ||||||||||||||
Credit to the income statement | (56) | (74) | (6) | (135) | (271) | ||||||||||||||
Advances written off | (28) | (37) | (65) | (28) | (37) | (65) | |||||||||||||
Recoveries of advances written off in previous years | 9 | – | 9 | 9 | – | 9 | |||||||||||||
At 31 December 2021 | 273,629 | 21,798 | 1,940 | 10,977 | 308,344 | 48 | 394 | 184 | 210 | 836 | |||||||||
Allowance for impairment losses | (48) | (394) | (184) | (210) | (836) | ||||||||||||||
Net carrying amount | 273,581 | 21,404 | 1,756 | 10,767 | 307,508 | ||||||||||||||
Drawn ECL coverage (%) | – | 1.8 | 9.5 | 1.9 | 0.3 | ||||||||||||||
Allowance for expected credit losses | |||||||||||||||||||
Stage 1 £m | Stage 2 £m | Stage 3 £m | POCI £m | Total £m | |||||||||||||||
Undrawn balances | |||||||||||||||||||
At 1 January 2021 | 191 | 221 | 14 | – | 426 | ||||||||||||||
Exchange and other adjustments | 1 | (2) | – | – | (1) | ||||||||||||||
Transfers to Stage 1 | 73 | (73) | – | – | |||||||||||||||
Transfers to Stage 2 | (8) | 8 | – | – | |||||||||||||||
Transfers to Stage 3 | (1) | (6) | 7 | – | |||||||||||||||
Impact of transfers between stages | (65) | 20 | (4) | (49) | |||||||||||||||
(1) | (51) | 3 | (49) | ||||||||||||||||
Other items taken to the income statement | (88) | (82) | (12) | – | (182) | ||||||||||||||
Credit to the income statement | (89) | (133) | (9) | – | (231) | ||||||||||||||
At 31 December 2021 | 103 | 86 | 5 | – | 194 | ||||||||||||||
Allowance for expected credit losses | |||||||||||||||||||
Stage 1 £m | Stage 2 £m | Stage 3 £m | POCI £m | Total £m | |||||||||||||||
In respect of: | |||||||||||||||||||
Loans and advances to banks | – | – | – | – | – | ||||||||||||||
Loans and advances to customers | 909 | 1,112 | 1,573 | 210 | 3,804 | ||||||||||||||
Debt securities | 1 | – | 1 | – | 2 | ||||||||||||||
Due from fellow Lloyds Banking Group undertakings | – | – | – | – | – | ||||||||||||||
Financial assets at amortised cost | 910 | 1,112 | 1,574 | 210 | 3,806 | ||||||||||||||
Provisions in relation to loan commitments and financial guarantees | 103 | 86 | 5 | – | 194 | ||||||||||||||
Total | 1,013 | 1,198 | 1,579 | 210 | 4,000 | ||||||||||||||
Expected credit loss in respect of financial assets at fair value through other comprehensive income (memorandum item) | 3 | – | – | – | 3 | ||||||||||||||
Origination grade | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
Mortgages SICR grade | 5 | 5 | 6 | 7 | 8 | 9 | 10 |
Credit cards, loans and overdrafts SICR grade | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
RMS grade | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 |
PD boundary %1 | 0.10 | 0.40 | 0.80 | 1.20 | 2.50 | 4.50 | 7.50 | 10.00 | 14.00 | 20.00 | 30.00 | 45.00 | 99.99 | 100.00 |
At 31 December 2022 | 2022 % | 2023 % | 2024 % | 2025 % | 2026 % | 2022 to 2026 average % | Start to peak1 % | Start to trough1 % |
Upside | ||||||||
Gross domestic product | 4.1 | 0.1 | 1.1 | 1.7 | 2.1 | 1.8 | 6.5 | 0.4 |
Unemployment rate | 3.5 | 2.8 | 3.0 | 3.3 | 3.4 | 3.2 | 3.8 | 2.8 |
House price growth | 2.4 | (2.8) | 6.5 | 9.0 | 8.0 | 4.5 | 24.8 | (1.1) |
Commercial real estate price growth | (9.4) | 8.5 | 3.5 | 2.6 | 2.3 | 1.3 | 7.2 | (9.4) |
UK Bank Rate | 1.94 | 4.95 | 4.98 | 4.63 | 4.58 | 4.22 | 5.39 | 0.75 |
CPI inflation | 9.0 | 8.3 | 4.2 | 3.3 | 3.0 | 5.5 | 10.7 | 2.9 |
Base case | ||||||||
Gross domestic product | 4.0 | (1.2) | 0.5 | 1.6 | 2.1 | 1.4 | 4.3 | (1.1) |
Unemployment rate | 3.7 | 4.5 | 5.1 | 5.3 | 5.1 | 4.8 | 5.3 | 3.6 |
House price growth | 2.0 | (6.9) | (1.2) | 2.9 | 4.4 | 0.2 | 6.4 | (6.3) |
Commercial real estate price growth | (11.8) | (3.3) | 0.9 | 2.8 | 3.1 | (1.8) | 7.2 | (14.8) |
UK Bank Rate | 1.94 | 4.00 | 3.38 | 3.00 | 3.00 | 3.06 | 4.00 | 0.75 |
CPI inflation | 9.0 | 8.3 | 3.7 | 2.3 | 1.7 | 5.0 | 10.7 | 1.6 |
Downside | ||||||||
Gross domestic product | 3.9 | (3.0) | (0.5) | 1.4 | 2.1 | 0.8 | 1.2 | (3.6) |
Unemployment rate | 3.8 | 6.3 | 7.5 | 7.6 | 7.2 | 6.5 | 7.7 | 3.6 |
House price growth | 1.6 | (11.1) | (9.8) | (5.6) | (1.5) | (5.4) | 6.4 | (24.3) |
Commercial real estate price growth | (13.9) | (15.0) | (3.7) | 0.4 | 1.4 | (6.4) | 7.2 | (29.6) |
UK Bank Rate | 1.94 | 2.93 | 1.39 | 0.98 | 1.04 | 1.65 | 3.62 | 0.75 |
CPI inflation | 9.0 | 8.2 | 3.3 | 1.3 | 0.3 | 4.4 | 10.7 | 0.2 |
Severe downside | ||||||||
Gross domestic product | 3.7 | (5.2) | (1.0) | 1.3 | 2.1 | 0.1 | 0.7 | (6.4) |
Unemployment rate | 4.1 | 9.0 | 10.7 | 10.4 | 9.7 | 8.8 | 10.7 | 3.6 |
House price growth | 1.1 | (14.8) | (18.0) | (11.5) | (4.2) | (9.8) | 6.4 | (40.1) |
Commercial real estate price growth | (17.3) | (28.8) | (9.9) | (1.3) | 3.2 | (11.6) | 7.2 | (47.8) |
UK Bank Rate – modelled | 1.94 | 1.41 | 0.20 | 0.13 | 0.14 | 0.76 | 3.50 | 0.12 |
UK Bank Rate – adjusted2 | 2.44 | 7.00 | 4.88 | 3.31 | 3.25 | 4.18 | 7.00 | 0.75 |
CPI inflation – modelled | 9.0 | 8.2 | 2.6 | (0.1) | (1.6) | 3.6 | 10.7 | (1.7) |
CPI inflation – adjusted2 | 9.7 | 14.3 | 9.0 | 4.1 | 1.6 | 7.7 | 14.8 | 1.5 |
Probability-weighted | ||||||||
Gross domestic product | 4.0 | (1.8) | 0.2 | 1.5 | 2.1 | 1.2 | 3.4 | (1.8) |
Unemployment rate | 3.7 | 5.0 | 5.8 | 5.9 | 5.7 | 5.2 | 5.9 | 3.6 |
House price growth | 1.9 | (7.7) | (3.2) | 0.7 | 2.9 | (1.2) | 6.4 | (9.5) |
Commercial real estate price growth | (12.3) | (5.8) | (0.8) | 1.6 | 2.3 | (3.1) | 7.2 | (18.6) |
UK Bank Rate – modelled | 1.94 | 3.70 | 2.94 | 2.59 | 2.60 | 2.76 | 3.89 | 0.75 |
UK Bank Rate – adjusted2 | 1.99 | 4.26 | 3.41 | 2.91 | 2.91 | 3.10 | 4.31 | 0.75 |
CPI inflation – modelled | 9.0 | 8.3 | 3.6 | 2.1 | 1.4 | 4.9 | 10.7 | 1.3 |
CPI inflation – adjusted2 | 9.1 | 8.9 | 4.3 | 2.5 | 1.7 | 5.3 | 11.0 | 1.6 |
Base case scenario by quarter1 At 31 December 2022 | First quarter 2022 % | Second quarter 2022 % | Third quarter 2022 % | Fourth quarter 2022 % | First quarter 2023 % | Second quarter 2023 % | Third quarter 2023 % | Fourth quarter 2023 % |
Gross domestic product | 0.6 | 0.1 | (0.3) | (0.4) | (0.4) | (0.4) | (0.2) | (0.1) |
Unemployment rate | 3.7 | 3.8 | 3.6 | 3.7 | 4.0 | 4.4 | 4.7 | 4.9 |
House price growth | 11.1 | 12.5 | 9.8 | 2.0 | (3.0) | (8.4) | (9.8) | (6.9) |
Commercial real estate price growth | 18.0 | 18.0 | 8.4 | (11.8) | (16.9) | (19.8) | (15.9) | (3.3) |
UK Bank Rate | 0.75 | 1.25 | 2.25 | 3.50 | 4.00 | 4.00 | 4.00 | 4.00 |
CPI inflation | 6.2 | 9.2 | 10.0 | 10.7 | 10.0 | 8.9 | 8.0 | 6.1 |
At 31 December 2021 | 2021 % | 2022 % | 2023 % | 2024 % | 2025 % | 2021 to 2025 average % | Start to peak % | Start to trough % |
Upside | ||||||||
Gross domestic product | 7.1 | 4.0 | 1.4 | 1.3 | 1.4 | 3.0 | 12.6 | (1.3) |
Unemployment rate | 4.4 | 3.3 | 3.4 | 3.5 | 3.7 | 3.7 | 4.9 | 3.2 |
House price growth | 10.1 | 2.6 | 4.9 | 4.7 | 3.6 | 5.1 | 28.5 | 1.2 |
Commercial real estate price growth | 12.4 | 5.8 | 0.7 | 1.0 | (0.6) | 3.7 | 20.9 | 0.8 |
UK Bank Rate | 0.14 | 1.44 | 1.74 | 1.82 | 2.03 | 1.43 | 2.04 | 0.10 |
CPI inflation1 | 2.6 | 5.9 | 3.3 | 2.6 | 3.3 | 3.5 | 6.5 | 0.6 |
Base case | ||||||||
Gross domestic product | 7.1 | 3.7 | 1.5 | 1.3 | 1.3 | 2.9 | 12.3 | (1.3) |
Unemployment rate | 4.5 | 4.3 | 4.4 | 4.4 | 4.5 | 4.4 | 4.9 | 4.3 |
House price growth | 9.8 | 0.0 | 0.0 | 0.5 | 0.7 | 2.1 | 11.0 | 1.2 |
Commercial real estate price growth | 10.2 | (2.2) | (1.9) | 0.1 | 0.6 | 1.2 | 10.2 | 0.8 |
UK Bank Rate | 0.14 | 0.81 | 1.00 | 1.06 | 1.25 | 0.85 | 1.25 | 0.10 |
CPI inflation1 | 2.6 | 5.9 | 3.0 | 1.6 | 2.0 | 3.0 | 6.5 | 0.6 |
Downside | ||||||||
Gross domestic product | 7.1 | 3.4 | 1.3 | 1.1 | 1.2 | 2.8 | 11.4 | (1.3) |
Unemployment rate | 4.7 | 5.6 | 5.9 | 5.8 | 5.7 | 5.6 | 6.0 | 4.3 |
House price growth | 9.2 | (4.9) | (7.8) | (6.6) | (4.7) | (3.1) | 9.2 | (14.8) |
Commercial real estate price growth | 8.6 | (10.1) | (7.0) | (3.4) | (0.3) | (2.6) | 8.6 | (12.8) |
UK Bank Rate | 0.14 | 0.45 | 0.52 | 0.55 | 0.69 | 0.47 | 0.71 | 0.10 |
CPI inflation1 | 2.6 | 5.8 | 2.8 | 1.3 | 1.6 | 2.8 | 6.4 | 0.6 |
Severe downside | ||||||||
Gross domestic product | 6.8 | 0.9 | 0.4 | 1.0 | 1.4 | 2.1 | 7.6 | (1.3) |
Unemployment rate | 4.9 | 7.7 | 8.5 | 8.1 | 7.6 | 7.3 | 8.5 | 4.3 |
House price growth | 9.1 | (7.3) | (13.9) | (12.5) | (8.4) | (6.9) | 9.1 | (30.2) |
Commercial real estate price growth | 5.8 | (19.6) | (12.1) | (5.3) | (0.5) | (6.8) | 6.9 | (30.0) |
UK Bank Rate | 0.14 | 0.04 | 0.06 | 0.08 | 0.09 | 0.08 | 0.25 | 0.02 |
CPI inflation1 | 2.6 | 5.8 | 2.3 | 0.5 | 0.9 | 2.4 | 6.5 | 0.4 |
Probability-weighted | ||||||||
Gross domestic product | 7.0 | 3.4 | 1.3 | 1.2 | 1.3 | 2.8 | 11.6 | (1.3) |
Unemployment rate | 4.6 | 4.7 | 5.0 | 5.0 | 4.9 | 4.8 | 5.0 | 4.3 |
House price growth | 9.6 | (1.4) | (2.3) | (1.7) | (1.0) | 0.6 | 9.6 | 1.2 |
Commercial real estate price growth | 9.9 | (3.9) | (3.7) | (1.2) | (0.1) | 0.1 | 9.9 | (0.3) |
UK Bank Rate | 0.14 | 0.82 | 0.99 | 1.04 | 1.20 | 0.83 | 1.20 | 0.10 |
CPI inflation1 | 2.6 | 5.9 | 2.9 | 1.7 | 2.2 | 3.1 | 6.5 | 0.6 |
Base case scenario by quarter1 At 31 December 2021 | First quarter 2021 % | Second quarter 2021 % | Third quarter 2021 % | Fourth quarter 2021 % | First quarter 2022 % | Second quarter 2022 % | Third quarter 2022 % | Fourth quarter 2022 % |
Gross domestic product | (1.3) | 5.4 | 1.1 | 0.4 | 0.1 | 1.5 | 0.5 | 0.3 |
Unemployment rate | 4.9 | 4.7 | 4.3 | 4.3 | 4.4 | 4.3 | 4.3 | 4.3 |
House price growth | 6.5 | 8.7 | 7.4 | 9.8 | 8.4 | 6.1 | 3.2 | 0.0 |
Commercial real estate price growth | (2.9) | 3.4 | 7.5 | 10.2 | 8.4 | 5.2 | 0.9 | (2.2) |
UK Bank Rate | 0.10 | 0.10 | 0.10 | 0.25 | 0.50 | 0.75 | 1.00 | 1.00 |
CPI inflation | 0.6 | 2.1 | 2.8 | 4.9 | 5.3 | 6.5 | 6.3 | 5.3 |
At 31 December 2022 | At 31 December 20211 | ||||||||||
Probability- weighted £m | Upside £m | Base case £m | Downside £m | Severe downside £m | Probability- weighted £m | Upside £m | Base case £m | Downside £m | Severe downside £m | ||
UK mortgages | 1,209 | 514 | 790 | 1,434 | 3,874 | 837 | 637 | 723 | 967 | 1,386 | |
Credit cards | 763 | 596 | 727 | 828 | 1,180 | 521 | 442 | 500 | 569 | 672 | |
Other Retail | 1,016 | 907 | 992 | 1,056 | 1,290 | 825 | 760 | 811 | 863 | 950 | |
Commercial Banking | 1,807 | 1,434 | 1,618 | 1,953 | 3,059 | 1,416 | 1,281 | 1,343 | 1,486 | 1,833 | |
Other | 1 | 1 | 1 | 2 | 2 | 401 | 401 | 402 | 401 | 400 | |
ECL allowance | 4,796 | 3,452 | 4,128 | 5,273 | 9,405 | 4,000 | 3,521 | 3,779 | 4,286 | 5,241 | |
At 31 December 2022 | At 31 December 20211 | ||||||||
Upside £m | Base case £m | Downside £m | Severe downside £m | Upside £m | Base case £m | Downside £m | Severe downside £m | ||
UK mortgages | 469 | 734 | 1,344 | 7,848 | 636 | 722 | 973 | 1,448 | |
Credit cards | 563 | 719 | 842 | 1,320 | 434 | 500 | 583 | 707 | |
Other Retail | 886 | 984 | 1,059 | 1,450 | 754 | 808 | 868 | 973 | |
Commercial Banking | 1,403 | 1,567 | 2,046 | 4,672 | 1,278 | 1,342 | 1,500 | 2,085 | |
Other | 1 | 1 | 2 | 2 | 400 | 400 | 400 | 400 | |
ECL allowance | 3,322 | 4,005 | 5,293 | 15,292 | 3,502 | 3,772 | 4,324 | 5,613 | |
At 31 December 2022 | At 31 December 20211 | ||||
1pp increase in unemployment £m | 1pp decrease in unemployment £m | 1pp increase in unemployment £m | 1pp decrease in unemployment £m | ||
UK mortgages | 26 | (21) | 23 | (18) | |
Credit cards | 41 | (41) | 20 | (20) | |
Other Retail | 25 | (25) | 14 | (14) | |
Commercial Banking | 99 | (90) | 49 | (42) | |
Other | – | – | 1 | (1) | |
ECL impact | 191 | (177) | 107 | (95) | |
At 31 December 2022 | At 31 December 2021 | ||||
10pp increase in HPI | 10pp decrease in HPI | 10pp increase in HPI | 10pp decrease in HPI | ||
ECL impact, £m | (225) | 370 | (112) | 162 | |
Judgements due to: | ||||||
Modelled ECL £m | Individually assessed £m | COVID-191 £m | Inflationary risk £m | Other £m | Total ECL £m | |
At 31 December 2022 | ||||||
UK mortgages | 946 | – | – | 49 | 214 | 1,209 |
Credit cards | 698 | – | – | 93 | (28) | 763 |
Other Retail | 903 | – | 1 | 53 | 59 | 1,016 |
Commercial Banking | 910 | 1,008 | – | – | (111) | 1,807 |
Other | 1 | – | – | – | – | 1 |
Total | 3,458 | 1,008 | 1 | 195 | 134 | 4,796 |
At 31 December 2021 | ||||||
UK mortgages | 292 | – | 67 | 52 | 426 | 837 |
Credit cards | 436 | – | 94 | – | (9) | 521 |
Other Retail2 | 757 | – | 18 | – | 50 | 825 |
Commercial Banking2 | 331 | 905 | 194 | – | (14) | 1,416 |
Other2 | 1 | – | 400 | – | – | 401 |
Total | 1,817 | 905 | 773 | 52 | 453 | 4,000 |
Finance leases | Hire purchase | ||||
2022 £m | 2021 £m | 2022 £m | 2021 £m | ||
Not later than 1 year | 216 | 339 | 6,307 | 4,720 | |
Later than 1 year and not later than 2 years | 215 | 135 | 3,872 | 4,517 | |
Later than 2 years and not later than 3 years | 111 | 222 | 3,707 | 3,981 | |
Later than 3 years and not later than 4 years | 45 | 110 | 2,962 | 2,817 | |
Later than 4 years and not later than 5 years | 31 | 46 | 385 | 814 | |
Later than 5 years | 122 | 150 | 275 | 374 | |
Gross investment | 740 | 1,002 | 17,508 | 17,223 | |
Unearned future finance income | (106) | (147) | (1,447) | (1,349) | |
Rentals received in advance | (9) | (12) | (111) | (89) | |
Net investment | 625 | 843 | 15,950 | 15,785 | |
Finance leases | Hire purchase | ||||
2022 £m | 2021 £m | 2022 £m | 2021 £m | ||
Not later than 1 year | 175 | 280 | 5,618 | 4,004 | |
Later than 1 year and not later than 2 years | 190 | 108 | 3,447 | 4,151 | |
Later than 2 years and not later than 3 years | 94 | 198 | 3,440 | 3,766 | |
Later than 3 years and not later than 4 years | 35 | 94 | 2,844 | 2,744 | |
Later than 4 years and not later than 5 years | 24 | 35 | 356 | 765 | |
Later than 5 years | 107 | 128 | 245 | 355 | |
Net investment | 625 | 843 | 15,950 | 15,785 | |
Finance leases | Hire purchase | ||||
2022 £m | 2021 £m | 2022 £m | 2021 £m | ||
Electric vehicles | 8 | 3 | 576 | 429 | |
Internal combustion engine vehicles | 176 | 142 | 10,743 | 10,640 | |
Hybrid vehicles | 5 | 3 | 737 | 522 | |
Other | 436 | 695 | 3,894 | 4,194 | |
Net investment | 625 | 843 | 15,950 | 15,785 | |
2022 £m | 2021 £m | ||
Debt securities: | |||
Government securities | 11,196 | 14,599 | |
Asset-backed securities | 138 | 55 | |
Corporate and other debt securities | 11,511 | 13,131 | |
22,845 | 27,785 | ||
Equity shares | 1 | 1 | |
Total financial assets at fair value through other comprehensive income | 22,846 | 27,786 |
2022 £m | 2021 £m | |
At 1 January and 31 December | 470 | 470 |
Cost1 | 814 | 814 |
Accumulated impairment losses | (344) | (344) |
At 31 December | 470 | 470 |
Brands £m | Core deposit intangible £m | Purchased credit card relationships £m | Customer- related intangibles £m | Capitalised software enhancements £m | Total £m | |
Cost: | ||||||
At 1 January 2021 | 584 | 2,770 | 1,002 | 50 | 5,855 | 10,261 |
Additions | – | – | – | – | 986 | 986 |
Disposals and write-offs | – | – | – | – | (460) | (460) |
At 31 December 2021 | 584 | 2,770 | 1,002 | 50 | 6,381 | 10,787 |
Exchange and other adjustments | – | – | – | – | 1 | 1 |
Additions | – | – | – | – | 1,395 | 1,395 |
Disposals | – | – | – | – | (186) | (186) |
At 31 December 2022 | 584 | 2,770 | 1,002 | 50 | 7,591 | 11,997 |
Accumulated amortisation: | ||||||
At 1 January 2021 | 204 | 2,770 | 551 | 50 | 2,574 | 6,149 |
Charge for the year (note 9) | – | – | 70 | – | 884 | 954 |
Disposals and write-offs | – | – | – | – | (460) | (460) |
At 31 December 2021 | 204 | 2,770 | 621 | 50 | 2,998 | 6,643 |
Exchange and other adjustments | – | – | 1 | – | (10) | (9) |
Charge for the year (note 9) | – | – | 70 | – | 825 | 895 |
Disposals | – | – | – | – | (186) | (186) |
At 31 December 2022 | 204 | 2,770 | 692 | 50 | 3,627 | 7,343 |
Balance sheet amount at 31 December 2022 | 380 | – | 310 | – | 3,964 | 4,654 |
Balance sheet amount at 31 December 2021 | 380 | – | 381 | – | 3,383 | 4,144 |
2022 £m | 2021 £m | ||
Property, plant and equipment: | |||
Investment properties | 3 | 4 | |
Premises | 852 | 803 | |
Equipment | 1,278 | 1,627 | |
Operating lease assets (see below) | 4,816 | 4,196 | |
Right-of-use assets (note 22) | 1,119 | 1,268 | |
8,068 | 7,898 | ||
Settlement balances | 98 | 52 | |
Prepayments | 1,105 | 905 | |
Other assets | 622 | 744 | |
Total other assets | 9,893 | 9,599 |
2022 £m | 2021 £m | |
Within 1 year | 912 | 848 |
1 to 2 years | 620 | 561 |
2 to 3 years | 322 | 288 |
3 to 4 years | 102 | 86 |
4 to 5 years | 11 | 8 |
Over 5 years | – | – |
Total future minimum rentals receivable | 1,967 | 1,791 |
2022 £m | 2021 £m | |
Electric vehicles | 1,610 | 728 |
Internal combustion engine vehicles | 2,042 | 2,531 |
Hybrid vehicles | 1,159 | 928 |
Other | 5 | 9 |
Total operating lease assets | 4,816 | 4,196 |
2022 £m | 2021 £m | |
At 1 January | 1,268 | 1,434 |
Exchange and other adjustments | – | (9) |
Additions | 97 | 71 |
Disposals | (33) | (12) |
Depreciation charge for the year | (213) | (216) |
At 31 December | 1,119 | 1,268 |
2022 £m | 2021 £m | ||
Liabilities designated at fair value through profit or loss: debt securities in issue | 5,159 | 6,537 |
2022 £m | 2021 £m | |
Senior unsecured notes issued | 21,377 | 23,820 |
Covered bonds (note 25) | 14,240 | 17,407 |
Certificates of deposit issued | 1,607 | 290 |
Securitisation notes (note 25) | 2,780 | 3,672 |
Commercial paper | 9,052 | 3,535 |
Total debt securities in issue | 49,056 | 48,724 |
2022 | 2021 | ||||
Loans and advances securitised1 £m | Externally held £m | Loans and advances securitised1 £m | Externally held £m | ||
Securitisation programmes | |||||
UK residential mortgages and commercial loans | 15,402 | 2,035 | 18,688 | 2,544 | |
Credit card receivables | 12,776 | 223 | 11,615 | 594 | |
Motor vehicle finance | 401 | 149 | 235 | 141 | |
Dutch residential mortgages | 402 | 399 | 427 | 426 | |
Total securitisation programmes (notes 23 and 24)2 | 28,981 | 2,806 | 30,965 | 3,705 | |
Covered bond programmes | |||||
Residential mortgage-backed | 27,400 | 13,740 | 35,896 | 16,907 | |
Social housing loan-backed | 831 | 500 | 833 | 500 | |
Total covered bond programmes (note 24) | 28,231 | 14,240 | 36,729 | 17,407 | |
Total securitisation and covered bond programmes | 17,046 | 21,112 | |||
2022 £m | 2021 £m | |
Settlement balances | 109 | 110 |
Lease liabilities | 1,260 | 1,411 |
Other creditors and accruals | 4,277 | 3,870 |
Total other liabilities | 5,646 | 5,391 |
2022 £m | 2021 £m | 2020 £m | |
Charge to the income statement | |||
Defined benefit pension schemes | 123 | 234 | 244 |
Other post-retirement benefit schemes | 2 | 2 | 3 |
Total defined benefit schemes | 125 | 236 | 247 |
Defined contribution pension schemes | 314 | 287 | 305 |
Total charge to the income statement (note 9) | 439 | 523 | 552 |
2022 £m | 2021 £m | |
Amounts recognised in the balance sheet | ||
Retirement benefit assets | 3,823 | 4,531 |
Retirement benefit obligations | (126) | (230) |
Total amounts recognised in the balance sheet | 3,697 | 4,301 |
2022 £m | 2021 £m | |
Defined benefit pension schemes | 3,732 | 4,404 |
Other post-retirement benefit schemes | (35) | (103) |
Total amounts recognised in the balance sheet | 3,697 | 4,301 |
2022 £m | 2021 £m | |
Amount included in the balance sheet | ||
Present value of funded obligations | (28,965) | (47,130) |
Fair value of scheme assets | 32,697 | 51,534 |
Net amount recognised in the balance sheet | 3,732 | 4,404 |
2022 £m | 2021 £m | |
Net amount recognised in the balance sheet | ||
At 1 January | 4,404 | 1,578 |
Net defined benefit pension charge | (123) | (234) |
Actuarial gains on defined benefit obligation | 17,222 | 1,267 |
Return on plan assets | (20,302) | 449 |
Employer contributions | 2,530 | 1,344 |
Exchange and other adjustments | 1 | – |
At 31 December | 3,732 | 4,404 |
2022 £m | 2021 £m | |
Movements in the defined benefit obligation | ||
At 1 January | (47,130) | (49,549) |
Current service cost | (180) | (213) |
Interest expense | (902) | (704) |
Remeasurements: | ||
Actuarial losses – experience | (1,186) | (426) |
Actuarial gains (losses) – demographic assumptions | 288 | (146) |
Actuarial gains – financial assumptions | 18,120 | 1,839 |
Benefits paid | 2,048 | 2,034 |
Past service cost | (4) | (11) |
Settlements | 13 | 22 |
Exchange and other adjustments | (32) | 24 |
At 31 December | (28,965) | (47,130) |
2022 £m | 2021 £m | |
Analysis of the defined benefit obligation | ||
Active members | (3,088) | (5,837) |
Deferred members | (8,515) | (16,167) |
Pensioners | (16,013) | (23,171) |
Dependants | (1,349) | (1,955) |
At 31 December | (28,965) | (47,130) |
2022 £m | 2021 £m | |
Changes in the fair value of scheme assets | ||
At 1 January | 51,534 | 51,127 |
Return on plan assets excluding amounts included in interest income | (20,302) | 449 |
Interest income | 997 | 733 |
Employer contributions | 2,530 | 1,344 |
Benefits paid | (2,048) | (2,034) |
Settlements | (13) | (23) |
Administrative costs paid | (34) | (38) |
Exchange and other adjustments | 33 | (24) |
At 31 December | 32,697 | 51,534 |
2022 £m | 2021 £m | 2020 £m | |
Current service cost | 180 | 213 | 206 |
Net interest amount | (95) | (29) | (23) |
Settlements | – | 1 | 2 |
Past service cost – plan amendments | 4 | 11 | 5 |
Plan administration costs incurred during the year | 34 | 38 | 54 |
Total defined benefit pension expense | 123 | 234 | 244 |
2022 | 2021 | ||||||||||
Quoted £m | Unquoted £m | Total £m | Quoted £m | Unquoted £m | Total £m | ||||||
Equity instruments | 7 | 47 | 54 | 617 | 36 | 653 | |||||
Debt instruments1: | |||||||||||
Fixed interest government bonds | 3,007 | – | 3,007 | 10,512 | – | 10,512 | |||||
Index-linked government bonds | 15,497 | – | 15,497 | 23,969 | – | 23,969 | |||||
Corporate and other debt securities | 3,978 | – | 3,978 | 13,399 | – | 13,399 | |||||
22,482 | – | 22,482 | 47,880 | – | 47,880 | ||||||
Property | – | 116 | 116 | – | 139 | 139 | |||||
Pooled investment vehicles | 2,730 | 15,863 | 18,593 | 1,192 | 13,346 | 14,538 | |||||
Money market instruments, cash, derivatives and other assets and liabilities | 1,069 | (9,617) | (8,548) | 319 | (11,995) | (11,676) | |||||
At 31 December | 26,288 | 6,409 | 32,697 | 50,008 | 1,526 | 51,534 | |||||
2022 £m | 2021 £m | |
Equity funds | 1,421 | 3,696 |
Hedge and mutual funds | 240 | 1,407 |
Alternative credit funds | 2,222 | 3,884 |
Property funds | 1,604 | 1,541 |
Infrastructure funds | 1,193 | 1,389 |
Liquidity funds | 11,527 | 2,031 |
Bond and debt funds | 354 | 561 |
Other | 32 | 29 |
At 31 December | 18,593 | 14,538 |
2022 % | 2021 % | |
Discount rate | 4.93 | 1.94 |
Rate of inflation: | ||
Retail Price Index (RPI) | 3.13 | 3.21 |
Consumer Price Index (CPI) | 2.69 | 2.92 |
Rate of salary increases | 0.00 | 0.00 |
Weighted-average rate of increase for pensions in payment | 2.84 | 2.88 |
Men | Women | ||||
2022 Years | 2021 Years | 2022 Years | 2021 Years | ||
Life expectancy for member aged 60, on the valuation date | 26.7 | 27.1 | 28.8 | 29.1 | |
Life expectancy for member aged 60, 15 years after the valuation date | 27.8 | 28.1 | 30.0 | 30.3 | |
Effect of reasonably possible alternative assumptions | |||||
Increase (decrease) in the income statement charge | (Increase) decrease in the net defined benefit pension scheme surplus | ||||
2022 £m | 2021 £m | 2022 £m | 2021 £m | ||
Inflation (including pension increases)1: | |||||
Increase of 0.1 per cent | 13 | 12 | 251 | 481 | |
Decrease of 0.1 per cent | (13) | (12) | (245) | (475) | |
Discount rate2: | |||||
Increase of 0.1 per cent | (25) | (24) | (379) | (774) | |
Decrease of 0.1 per cent | 24 | 23 | 388 | 795 | |
Expected life expectancy of members: | |||||
Increase of one year | 38 | 44 | 745 | 1,934 | |
Decrease of one year | (39) | (42) | (762) | (1,852) | |
2022 Years | 2021 Years | |
Duration of the defined benefit obligation | 15 | 17 |
2022 £m | 2021 £m | |
Within 12 months | 1,409 | 1,352 |
Between 1 and 2 years | 1,464 | 1,450 |
Between 2 and 5 years | 4,678 | 4,651 |
Between 5 and 10 years | 8,930 | 8,993 |
Between 10 and 15 years | 9,296 | 9,668 |
Between 15 and 25 years | 17,479 | 18,671 |
Between 25 and 35 years | 12,720 | 13,846 |
Between 35 and 45 years | 6,138 | 6,987 |
In more than 45 years | 1,685 | 2,116 |
2022 £m | 2021 £m | |
At 1 January | (103) | (109) |
Actuarial gains | 68 | 4 |
Insurance premiums paid | 3 | 3 |
Charge for the year | (2) | (2) |
Exchange and other adjustments | (1) | 1 |
At 31 December | (35) | (103) |
Statutory position | 2022 £m | 2021 £m | Tax disclosure | 2022 £m | 2021 £m | |
Deferred tax assets | 5,857 | 4,048 | Deferred tax assets | 7,999 | 6,377 | |
Deferred tax liabilities | (208) | – | Deferred tax liabilities | (2,350) | (2,329) | |
Asset at 31 December | 5,649 | 4,048 | Asset at 31 December | 5,649 | 4,048 |
Deferred tax assets | Tax losses £m | Property, plant and equipment £m | Provisions £m | Share- based payments £m | Pension liabilities £m | Derivatives £m | Asset revaluations £m | Other temporary differences £m | Total £m |
At 1 January 2021 | 4,054 | 678 | 251 | 27 | 56 | 7 | 28 | 226 | 5,327 |
Credit (charge) to the income statement | 964 | 82 | 13 | (10) | 15 | 30 | (28) | (50) | 1,016 |
Credit (charge) to other comprehensive income | – | – | 36 | – | (2) | – | – | – | 34 |
At 31 December 2021 | 5,018 | 760 | 300 | 17 | 69 | 37 | – | 176 | 6,377 |
Credit (charge) to the income statement | (4) | (237) | 114 | (3) | (22) | 183 | 8 | (66) | (27) |
Credit (charge) to other comprehensive income | – | – | (155) | – | – | 1,804 | – | – | 1,649 |
At 31 December 2022 | 5,014 | 523 | 259 | 14 | 47 | 2,024 | 8 | 110 | 7,999 |
Deferred tax liabilities | Capitalised software enhancements £m | Acquisition fair value £m | Pension assets £m | Derivatives £m | Asset revaluations1 £m | Other temporary differences £m | Total £m | ||
At 1 January 2021 | (228) | (336) | (392) | (699) | – | (204) | (1,859) | ||
(Charge) credit to the income statement | (47) | (16) | (93) | (65) | 2 | (115) | (334) | ||
(Charge) credit to other comprehensive income | – | – | (846) | 764 | (54) | – | (136) | ||
Exchange and other adjustments | – | – | – | – | – | – | – | ||
At 31 December 2021 | (275) | (352) | (1,331) | – | (52) | (319) | (2,329) | ||
(Charge) credit to the income statement | 117 | 29 | 29 | (470) | 41 | (47) | (301) | ||
Credit to other comprehensive income | – | – | 283 | – | 11 | – | 294 | ||
Exchange and other adjustments | – | – | – | – | – | (14) | (14) | ||
At 31 December 2022 | (158) | (323) | (1,019) | (470) | – | (380) | (2,350) | ||
Provisions for financial commitments and guarantees £m | Regulatory and legal provisions £m | Other £m | Total £m | |
At 1 January 2022 | 194 | 1,054 | 685 | 1,933 |
Exchange and other adjustments | (1) | 16 | 28 | 43 |
Provisions applied | – | (587) | (419) | (1,006) |
Charge for the year | 111 | 225 | 285 | 621 |
At 31 December 2022 | 304 | 708 | 579 | 1,591 |
Preferred securities £m | Undated £m | Dated £m | Total £m | ||||
At 1 January 2021 | 1,772 | 505 | 6,965 | 9,242 | |||
Issued during the year1: | |||||||
3.916% Subordinated Fixed Rate Notes 2048 (US$1,500 million) | – | – | 1,074 | 1,074 | |||
3.724% Dated Subordinated Fixed Rate Reset Notes 2041 (£500 million) | – | – | 888 | 888 | |||
2.754% Dated Subordinated Fixed Rate Reset Notes 2032 (US$1,750 million) | – | – | 1,300 | 1,300 | |||
– | – | 3,262 | 3,262 | ||||
Repurchases and redemptions during the year1: | |||||||
7.754% Non-cumulative Perpetual Preferred Securities (Class B) (£150 million) | (156) | – | – | (156) | |||
Series 2 (US$500 million) | – | (94) | – | (94) | |||
Series 3 (US$600 million) | – | (120) | – | (120) | |||
Floating Rate Primary Capital Notes (US$250 million) | – | (24) | – | (24) | |||
Series 1 (US$750 million) | – | (97) | – | (97) | |||
9.375% Subordinated Bonds 2021 (£500 million) | – | – | (200) | (200) | |||
5.374% Subordinated Fixed Rate Notes 2021 (€160 million) | – | – | (145) | (145) | |||
4.553% Subordinated Fixed Rate Notes 2021 (US$1,500 million) | – | – | (1,122) | (1,122) | |||
6% Subordinated Notes 2033 (US$750 million) | – | – | (216) | (216) | |||
4.293% Subordinated Fixed Rate Notes 2021 (US$824 million) | – | – | (612) | (612) | |||
4.503% Subordinated Fixed Rate Notes 2021 (US$1,353 million) | – | – | (1,004) | (1,004) | |||
(156) | (335) | (3,299) | (3,790) | ||||
Foreign exchange movements | 17 | – | (80) | (63) | |||
Other movements (cash and non-cash)2 | 28 | – | (21) | 7 | |||
At 31 December 2021 | 1,661 | 170 | 6,827 | 8,658 | |||
Issued during the year1: | |||||||
8.133% Dated Subordinated Fixed Rate Reset notes 2033 (US$1,000 million) | – | – | 837 | 837 | |||
Repurchases and redemptions during the year1: | |||||||
12% Fixed to Floating Rate Perpetual Tier 1 Capital Securities callable 2024 (US$2,000 million) | (1,399) | – | – | (1,399) | |||
13% Sterling Step-up Perpetual Capital Securities callable 2029 (£700 million) | (221) | – | – | (221) | |||
7.281% Perpetual Regulatory Tier One Securities (Series B) (£150 million) | (22) | – | – | (22) | |||
7.881% Guaranteed Non-voting Non-cumulative Preferred Securities (£245 million) | (12) | – | – | (12) | |||
12% Perpetual Subordinated Bonds (£100 million) | – | (22) | – | (22) | |||
5.75% Undated Subordinated Step-up Notes (£600 million) | – | (4) | – | (4) | |||
7.625% Dated Subordinated Notes 2025 (£750 million) | – | – | (502) | (502) | |||
(1,654) | (26) | (502) | (2,182) | ||||
Foreign exchange movements | (6) | – | 521 | 515 | |||
Other movements (cash and non-cash)2 | (1) | 2 | (1,236) | (1,235) | |||
At 31 December 2022 | – | 146 | 6,447 | 6,593 |
2022 Number of shares | 2021 Number of shares | 2020 Number of shares | 2022 £m | 2021 £m | 2020 £m | ||
Ordinary shares of £1 each | |||||||
At 1 January | 1,574,285,752 | 1,574,285,752 | 1,574,285,751 | 1,574 | 1,574 | 1,574 | |
Issued in the year | – | – | 1 | – | – | – | |
At 31 December | 1,574,285,752 | 1,574,285,752 | 1,574,285,752 | 1,574 | 1,574 | 1,574 |
2022 £m | 2021 £m | 2020 £m | |
At 1 January and 31 December | 600 | 600 | 600 |
2022 £m | 2021 £m | 2020 £m | |
Merger reserve1 | 6,348 | 6,348 | 6,348 |
Revaluation reserve in respect of debt securities held at fair value through other comprehensive income | (393) | (362) | (558) |
Revaluation reserve in respect of equity shares held at fair value through other comprehensive income | – | – | – |
Cash flow hedging reserve | (5,168) | (451) | 1,507 |
Foreign currency translation reserve | (44) | (135) | (116) |
At 31 December | 743 | 5,400 | 7,181 |
Revaluation reserve in respect of debt securities held at fair value through other comprehensive income | 2022 £m | 2021 £m | 2020 £m | ||
At 1 January | (362) | (558) | (538) | ||
Change in fair value | (132) | 137 | 46 | ||
Deferred tax | 34 | (44) | 29 | ||
Current tax | 8 | – | (2) | ||
(90) | 93 | 73 | |||
Income statement transfers in respect of disposals (note 8) | 76 | 116 | (145) | ||
Deferred tax | (23) | (11) | 47 | ||
53 | 105 | (98) | |||
Impairment recognised in the income statement | 6 | (2) | 5 | ||
At 31 December | (393) | (362) | (558) |
Revaluation reserve in respect of equity shares held at fair value through other comprehensive income | 2022 £m | 2021 £m | 2020 £m | ||
At 1 January | – | – | – | ||
Change in fair value | – | – | – | ||
Deferred tax | (1) | 1 | (16) | ||
(1) | 1 | (16) | |||
Realised gains and losses transferred to retained profits | – | – | – | ||
Deferred tax | 1 | (1) | 16 | ||
1 | (1) | 16 | |||
At 31 December | – | – | – |
Cash flow hedging reserve | 2022 £m | 2021 £m | 2020 £m | ||
At 1 January | (451) | 1,507 | 1,556 | ||
Change in fair value of hedging derivatives | (6,520) | (2,138) | 709 | ||
Deferred tax | 1,803 | 606 | (229) | ||
(4,717) | (1,532) | 480 | |||
Net income statement transfers | (1) | (584) | (727) | ||
Deferred tax | 1 | 158 | 198 | ||
– | (426) | (529) | |||
At 31 December | (5,168) | (451) | 1,507 |
Foreign currency translation reserve | 2022 £m | 2021 £m | 2020 £m |
At 1 January | (135) | (116) | (116) |
Currency translation differences arising in the year | 91 | (19) | – |
At 31 December | (44) | (135) | (116) |
2022 £m | 2021 £m | 2020 £m | |||
At 1 January | 28,836 | 25,750 | 24,549 | ||
Profit attributable to ordinary shareholders | 4,528 | 4,826 | 1,023 | ||
Post-retirement defined benefit scheme remeasurements | (2,152) | 1,062 | 113 | ||
Gains and losses attributable to own credit risk (net of tax)1 | 364 | (52) | (55) | ||
Dividends paid (note 36) | – | (2,900) | – | ||
Issue of other equity instruments | – | (1) | – | ||
Repurchases and redemptions of other equity instruments | – | (9) | – | ||
Capital contributions received | 221 | 164 | 140 | ||
Return of capital contributions | (4) | (4) | (4) | ||
Change in non-controlling interests | – | (1) | – | ||
Realised gains and losses on equity shares held at fair value through other comprehensive income | (1) | 1 | (16) | ||
At 31 December | 31,792 | 28,836 | 25,750 |
2022 £m | 2021 £m | 2020 £m | |||
At 1 January | 4,268 | 5,935 | 4,865 | ||
Issued in the year: | |||||
£500 million Fixed Rate Reset Additional Tier 1 Perpetual Subordinated Permanent Write-Down Securities | – | 500 | – | ||
£750 million Floating Rate Additional Tier 1 Perpetual Subordinated Permanent Write-Down Securities | – | 750 | – | ||
£300 million Floating Rate Additional Tier 1 Perpetual Subordinated Permanent Write-Down Securities | – | 300 | – | ||
US$500 million Fixed Rate Reset Additional Tier 1 Perpetual Subordinated Permanent Write-Down Securities | – | – | 383 | ||
€750 million Fixed Rate Reset Additional Tier 1 Perpetual Subordinated Permanent Write-Down Securities | – | – | 687 | ||
– | 1,550 | 1,070 | |||
Repurchases and redemptions during the year | – | (3,217) | – | ||
Profit for the year attributable to other equity holders | 241 | 344 | 417 | ||
Distributions on other equity instruments | (241) | (344) | (417) | ||
At 31 December | 4,268 | 4,268 | 5,935 |
2022 £m | 2021 £m | 2020 £m | |
Interim dividends | – | 2,900 | – |
2022 | 2021 | ||||
Number of options | Weighted average exercise price (pence) | Number of options | Weighted average exercise price (pence) | ||
Outstanding at 1 January | 1,180,563,291 | 30.63 | 1,120,138,915 | 30.39 | |
Granted | 217,611,519 | 39.38 | 236,923,744 | 39.40 | |
Exercised | (23,359,526) | 37.75 | (6,924,434) | 30.57 | |
Forfeited | (20,961,259) | 29.20 | (22,815,078) | 28.78 | |
Cancelled | (47,687,607) | 33.88 | (51,479,310) | 32.57 | |
Expired | (49,248,343) | 46.29 | (95,280,546) | 49.03 | |
Outstanding at 31 December | 1,256,918,075 | 31.30 | 1,180,563,291 | 30.63 | |
Exercisable at 31 December | 263,302 | 47.92 | 336,561 | 51.03 | |
2022 | 2021 | ||||
Number of options | Weighted average exercise price (pence) | Number of options | Weighted average exercise price (pence) | ||
Outstanding at 1 January | 14,032,762 | Nil | 8,477,084 | Nil | |
Granted | 10,278,224 | Nil | 13,610,204 | Nil | |
Exercised | (3,333,322) | Nil | (7,110,663) | Nil | |
Vested | – | Nil | – | Nil | |
Forfeited | (33,409) | Nil | (385,184) | Nil | |
Lapsed | (477,784) | Nil | (558,679) | Nil | |
Outstanding at 31 December | 20,466,471 | Nil | 14,032,762 | Nil | |
Exercisable at 31 December | 1,638,202 | Nil | 708,939 | Nil | |
2022 Number of shares | 2021 Number of shares | |
Outstanding at 1 January | 686,085 | 1,810,712 |
Exercised | (686,085) | (1,124,627) |
Outstanding at 31 December | – | 686,085 |
2022 Number of shares | 2021 Number of shares | |
Outstanding at 1 January | 7,444,787 | – |
Granted | – | 8,301,708 |
Exercised | (859,340) | (856,921) |
Outstanding at 31 December | 6,585,447 | 7,444,787 |
2022 Number of shares | 2021 Number of shares | |
Outstanding at 1 January | 350,873,627 | 533,987,527 |
Granted | – | – |
Vested | (50,703,778) | (39,621,415) |
Forfeited | (98,741,356) | (144,437,243) |
Dividend award | 966,016 | 944,758 |
Outstanding at 31 December | 202,394,509 | 350,873,627 |
2022 Number of shares | 2021 Number of shares | |
Outstanding at 1 January | 77,883,068 | – |
Granted | 108,513,202 | 83,456,304 |
Vested | – | – |
Forfeited | (14,448,527) | (5,573,236) |
Dividend award | – | – |
Outstanding at 31 December | 171,947,743 | 77,883,068 |
SAYE | Executive Share Plans | Long Term Share Plan | |
Weighted average risk-free interest rate | 4.33% | 3.20% | 1.01% |
Weighted average expected life | 3.3 years | 1.2 years | 3.6 years |
Weighted average expected volatility | 28% | 27% | 33% |
Weighted average expected dividend yield | 5.3% | 5.3% | 5.3% |
Weighted average share price | £0.42 | £0.47 | £0.43 |
Weighted average exercise price | £0.39 | Nil | Nil |
2022 £m | 2021 £m | 2020 £m | |
Compensation | |||
Salaries and other short-term benefits | 11 | 10 | 12 |
Post-employment benefits | – | – | – |
Share-based payments | 14 | 14 | 12 |
Total compensation | 25 | 24 | 24 |
2022 million | 2021 million | 2020 million | |
Share options over Lloyds Banking Group plc shares | |||
At 1 January | – | – | – |
Granted, including certain adjustments (includes entitlements of appointed key management personnel) | – | – | – |
Exercised/lapsed (includes entitlements of former key management personnel) | – | – | – |
At 31 December | – | – | – |
2022 million | 2021 million | 2020 million | |
Share plans settled in Lloyds Banking Group plc shares | |||
At 1 January | 74 | 117 | 101 |
Granted, including certain adjustments (includes entitlements of appointed key management personnel) | 29 | 19 | 46 |
Exercised/lapsed (includes entitlements of former key management personnel) | (31) | (62) | (30) |
At 31 December | 72 | 74 | 117 |
2022 £m | 2021 £m | 2020 £m | |
Loans | |||
At 1 January | 3 | 2 | 2 |
Advanced (includes loans to appointed key management personnel) | 1 | 1 | – |
Repayments (includes loans to former key management personnel) | (2) | – | – |
At 31 December | 2 | 3 | 2 |
2022 £m | 2021 £m | 2020 £m | |
Deposits | |||
At 1 January | 11 | 11 | 23 |
Placed (includes deposits of appointed key management personnel) | 37 | 26 | 26 |
Withdrawn (includes deposits of former key management personnel) | (38) | (26) | (38) |
At 31 December | 10 | 11 | 11 |
2022 £m | 2021 £m | |
Assets, included within: | ||
Derivative financial instruments | 1,120 | 634 |
Financial assets at amortised cost: due from fellow Lloyds Banking Group undertakings | 816 | 739 |
1,936 | 1,373 | |
Liabilities, included within: | ||
Due to fellow Lloyds Banking Group undertakings | 2,539 | 1,490 |
Derivative financial instruments | 1,084 | 939 |
Debt securities in issue | 17,648 | 17,961 |
Subordinated liabilities | 6,490 | 5,176 |
27,761 | 25,566 |
2022 £m | 2021 £m | ||
Contingent liabilities | |||
Acceptances and endorsements | 58 | 21 | |
Other: | |||
Other items serving as direct credit substitutes | 781 | 433 | |
Performance bonds, including letters of credit, and other transaction-related contingencies | 2,061 | 1,886 | |
2,842 | 2,319 | ||
Total contingent liabilities | 2,900 | 2,340 |
2022 £m | 2021 £m | ||
Commitments and guarantees | |||
Forward asset purchases and forward deposits placed | 39 | 60 | |
Undrawn formal standby facilities, credit lines and other commitments to lend: | |||
Less than 1 year original maturity: | |||
Mortgage offers made | 17,068 | 17,757 | |
Other commitments and guarantees | 74,242 | 79,830 | |
91,310 | 97,587 | ||
1 year or over original maturity | 36,020 | 30,037 | |
Total commitments and guarantees | 127,369 | 127,684 |
Derivatives designated as hedging instruments £m | Mandatorily held at fair value through profit or loss | Designated at fair value through profit or loss £m | At fair value through other comprehensive income £m | Held at amortised cost £m | Total £m | ||||||||
Held for trading £m | Other £m | ||||||||||||
At 31 December 2022 | |||||||||||||
Financial assets | |||||||||||||
Cash and balances at central banks | – | – | – | – | – | 72,005 | 72,005 | ||||||
Items in the course of collection from banks | – | – | – | – | – | 229 | 229 | ||||||
Financial assets at fair value through profit or loss | – | – | 1,371 | – | – | – | 1,371 | ||||||
Derivative financial instruments | 19 | 3,838 | – | – | – | – | 3,857 | ||||||
Loans and advances to banks | – | – | – | – | – | 8,363 | 8,363 | ||||||
Loans and advances to customers | – | – | – | – | – | 435,627 | 435,627 | ||||||
Reverse repurchase agreements | – | – | – | – | – | 39,259 | 39,259 | ||||||
Debt securities | – | – | – | – | – | 7,331 | 7,331 | ||||||
Due from fellow Lloyds Banking Group undertakings | – | – | – | – | – | 816 | 816 | ||||||
Financial assets at amortised cost | – | – | – | – | – | 491,396 | 491,396 | ||||||
Financial assets at fair value through other comprehensive income | – | – | – | – | 22,846 | – | 22,846 | ||||||
Total financial assets | 19 | 3,838 | 1,371 | – | 22,846 | 563,630 | 591,704 | ||||||
Financial liabilities | |||||||||||||
Deposits from banks | – | – | – | – | – | 4,658 | 4,658 | ||||||
Customer deposits | – | – | – | – | – | 446,172 | 446,172 | ||||||
Repurchase agreements at amortised cost | – | – | – | – | – | 48,590 | 48,590 | ||||||
Due to fellow Lloyds Banking Group undertakings | – | – | – | – | – | 2,539 | 2,539 | ||||||
Items in course of transmission to banks | – | – | – | – | – | 357 | 357 | ||||||
Financial liabilities at fair value through profit or loss | – | – | – | 5,159 | – | – | 5,159 | ||||||
Derivative financial instruments | 506 | 5,385 | – | – | – | – | 5,891 | ||||||
Notes in circulation | – | – | – | – | – | 1,280 | 1,280 | ||||||
Debt securities in issue | – | – | – | – | – | 49,056 | 49,056 | ||||||
Other | – | – | – | – | – | 1,260 | 1,260 | ||||||
Subordinated liabilities | – | – | – | – | – | 6,593 | 6,593 | ||||||
Total financial liabilities | 506 | 5,385 | – | 5,159 | – | 560,505 | 571,555 | ||||||
Derivatives designated as hedging instruments £m | Mandatorily held at fair value through profit or loss | Designated at fair value through profit or loss £m | At fair value through other comprehensive income £m | Held at amortised cost £m | Total £m | ||||||||
Held for trading £m | Other £m | ||||||||||||
At 31 December 2021 | |||||||||||||
Financial assets | |||||||||||||
Cash and balances at central banks | – | – | – | – | – | 54,279 | 54,279 | ||||||
Items in the course of collection from banks | – | – | – | – | – | 147 | 147 | ||||||
Financial assets at fair value through profit or loss | – | – | 1,798 | – | – | – | 1,798 | ||||||
Derivative financial instruments | 55 | 5,456 | – | – | – | – | 5,511 | ||||||
Loans and advances to banks | – | – | – | – | – | 4,478 | 4,478 | ||||||
Loans and advances to customers | – | – | – | – | – | 430,829 | 430,829 | ||||||
Reverse repurchase agreements | – | – | – | – | – | 49,708 | 49,708 | ||||||
Debt securities | – | – | – | – | – | 4,562 | 4,562 | ||||||
Due from fellow Lloyds Banking Group undertakings | – | – | – | – | – | 739 | 739 | ||||||
Financial assets at amortised cost | – | – | – | – | – | 490,316 | 490,316 | ||||||
Financial assets at fair value through other comprehensive income | – | – | – | – | 27,786 | – | 27,786 | ||||||
Total financial assets | 55 | 5,456 | 1,798 | – | 27,786 | 544,742 | 579,837 | ||||||
Financial liabilities | |||||||||||||
Deposits from banks | – | – | – | – | – | 3,363 | 3,363 | ||||||
Customer deposits | – | – | – | – | – | 449,373 | 449,373 | ||||||
Repurchase agreements at amortised cost | – | – | – | – | – | 30,106 | 30,106 | ||||||
Due to fellow Lloyds Banking Group undertakings | – | – | – | – | – | 1,490 | 1,490 | ||||||
Items in course of transmission to banks | – | – | – | – | – | 308 | 308 | ||||||
Financial liabilities at fair value through profit or loss | – | – | – | 6,537 | – | – | 6,537 | ||||||
Derivative financial instruments | 315 | 4,328 | – | – | – | – | 4,643 | ||||||
Notes in circulation | – | – | – | – | – | 1,321 | 1,321 | ||||||
Debt securities in issue | – | – | – | – | – | 48,724 | 48,724 | ||||||
Other | – | – | – | – | – | 1,411 | 1,411 | ||||||
Subordinated liabilities | – | – | – | – | – | 8,658 | 8,658 | ||||||
Total financial liabilities | 315 | 4,328 | – | 6,537 | – | 544,754 | 555,934 | ||||||
Level 1 £m | Level 2 £m | Level 3 £m | Total £m | ||||
At 31 December 2022 | |||||||
Financial assets at fair value through profit or loss | |||||||
Loans and advances to customers | – | 841 | 291 | 1,132 | |||
Equity shares | 235 | – | 4 | 239 | |||
Total financial assets at fair value through profit or loss | 235 | 841 | 295 | 1,371 | |||
Financial assets at fair value through other comprehensive income | |||||||
Debt securities: | |||||||
Government securities | 10,839 | 357 | – | 11,196 | |||
Asset-backed securities | – | 87 | 51 | 138 | |||
Corporate and other debt securities | 531 | 10,980 | – | 11,511 | |||
11,370 | 11,424 | 51 | 22,845 | ||||
Equity shares | – | – | 1 | 1 | |||
Total financial assets at fair value through other comprehensive income | 11,370 | 11,424 | 52 | 22,846 | |||
Total financial assets carried at fair value, excluding derivatives | 11,605 | 12,265 | 347 | 24,217 | |||
At 31 December 2021 | |||||||
Financial assets at fair value through profit or loss | |||||||
Loans and advances to customers | – | 1,164 | 395 | 1,559 | |||
Equity shares | 235 | – | 4 | 239 | |||
Total financial assets at fair value through profit or loss | 235 | 1,164 | 399 | 1,798 | |||
Financial assets at fair value through other comprehensive income | |||||||
Debt securities: | |||||||
Government securities | 14,599 | – | – | 14,599 | |||
Asset-backed securities | – | – | 55 | 55 | |||
Corporate and other debt securities | 640 | 12,491 | – | 13,131 | |||
15,239 | 12,491 | 55 | 27,785 | ||||
Equity shares | – | – | 1 | 1 | |||
Total financial assets at fair value through other comprehensive income | 15,239 | 12,491 | 56 | 27,786 | |||
Total financial assets carried at fair value, excluding derivatives | 15,474 | 13,655 | 455 | 29,584 |
2022 | 2021 | ||||||
Financial assets at fair value through profit or loss £m | Financial assets at fair value through other comprehensive income £m | Total level 3 assets carried at fair value, excluding derivatives (recurring basis) £m | Financial assets at fair value through profit or loss £m | Financial assets at fair value through other comprehensive income £m | Total level 3 assets carried at fair value, excluding derivatives (recurring basis) £m | ||
At 1 January | 399 | 56 | 455 | 1,511 | 65 | 1,576 | |
Exchange and other adjustments | – | 3 | 3 | 2 | (2) | – | |
Losses recognised in the income statement within other income | (20) | (3) | (23) | (72) | – | (72) | |
Losses recognised in other comprehensive income within the revaluation reserve in respect of financial assets at fair value through other comprehensive income | – | – | – | – | (2) | (2) | |
Purchases/increases to customer loans | 3 | – | 3 | 397 | – | 397 | |
Sales/repayments of customer loans | (87) | (4) | (91) | (794) | (5) | (799) | |
Transfers into the level 3 portfolio | – | – | – | 4 | – | 4 | |
Transfers out of the level 3 portfolio | – | – | – | (649) | – | (649) | |
At 31 December | 295 | 52 | 347 | 399 | 56 | 455 | |
Losses recognised in the income statement, within other income, relating to the change in fair value of those assets held at 31 December | (19) | – | (19) | (60) | – | (60) | |
Level 1 £m | Level 2 £m | Level 3 £m | Total £m | ||||
At 31 December 2022 | |||||||
Financial liabilities at fair value through profit or loss | |||||||
Debt securities in issue designated at fair value through profit or loss | – | 5,133 | 26 | 5,159 | |||
Total financial liabilities carried at fair value, excluding derivatives | – | 5,133 | 26 | 5,159 | |||
At 31 December 2021 | |||||||
Financial liabilities at fair value through profit or loss | |||||||
Debt securities in issue designated at fair value through profit or loss | – | 6,504 | 33 | 6,537 | |||
Total financial liabilities carried at fair value, excluding derivatives | – | 6,504 | 33 | 6,537 |
2022 £m | 2021 £m | |
At 1 January | 33 | 45 |
Gains recognised in the income statement within other income | (3) | (5) |
Redemptions | (4) | (7) |
At 31 December | 26 | 33 |
Gains recognised in the income statement, within other income, relating to the change in fair value of those liabilities held at 31 December | (3) | (4) |
2022 | 2021 | ||||||||
Level 1 £m | Level 2 £m | Level 3 £m | Total £m | Level 1 £m | Level 2 £m | Level 3 £m | Total £m | ||
Derivative assets | – | 3,857 | – | 3,857 | – | 5,495 | 16 | 5,511 | |
Derivative liabilities | – | (5,728) | (163) | (5,891) | – | (4,436) | (207) | (4,643) | |
2022 | 2021 | ||||
Derivative assets £m | Derivative liabilities £m | Derivative assets £m | Derivative liabilities £m | ||
At 1 January | 16 | (207) | 14 | (319) | |
Gains recognised in the income statement within other income | 1 | 27 | 2 | 93 | |
Purchases (additions) | – | (9) | – | – | |
(Sales) redemptions | – | 25 | – | 19 | |
Transfers out of the level 3 portfolio | (17) | 1 | – | – | |
At 31 December | – | (163) | 16 | (207) | |
Gains recognised in the income statement, within other income, relating to the change in fair value of those assets or liabilities held at 31 December | – | 26 | 2 | 69 | |
2022 £m | 2021 £m | |
At 1 January | 154 | 242 |
Income statement credit | (104) | (88) |
At 31 December | 50 | 154 |
2022 £m | 2021 £m | |
Credit Valuation Adjustment | 48 | 112 |
Debit Valuation Adjustment | (8) | (4) |
Funding Valuation Adjustment | 10 | 46 |
50 | 154 |
2022 | 2021 | ||||||||||||
Effect of reasonably possible alternative assumptions1 | Effect of reasonably possible alternative assumptions1 | ||||||||||||
Valuation techniques | Significant unobservable inputs2 | Carrying value £m | Favourable changes £m | Unfavourable changes £m | Carrying value £m | Favourable changes £m | Unfavourable changes £m | ||||||
Financial assets at fair value through profit or loss | |||||||||||||
Loans and advances to customers | Discounted cash flows | Interest rate spreads (+/-50bps)3 | 291 | 25 | (23) | 395 | 32 | (30) | |||||
Equity investments | n/a | 4 | 2 | (2) | 4 | 2 | (2) | ||||||
295 | 399 | ||||||||||||
Financial assets at fair value through other comprehensive income | |||||||||||||
Asset-backed securities | Lead manager or broker quote/ consensus pricing | n/a | 51 | 4 | (4) | 55 | 4 | (4) | |||||
Equity investments | n/a | 1 | – | – | 1 | – | – | ||||||
52 | 56 | ||||||||||||
Derivative financial assets | |||||||||||||
Interest rate derivatives | Option pricing model | Interest rate volatility (n/a)4 | – | – | – | 16 | – | – | |||||
Level 3 financial assets carried at fair value | 347 | 471 | |||||||||||
Financial liabilities at fair value through profit or loss | |||||||||||||
Securitisation notes | Discounted cash flows | Interest rate spreads (+/-50bps)5 | 26 | 1 | (1) | 33 | 1 | (1) | |||||
Derivative financial liabilities | |||||||||||||
Interest rate derivatives | Option pricing model | Interest rate volatility (17%/105%)6 | 13 | – | – | 31 | – | – | |||||
Shared appreciation rights | Market values – property valuation | HPI (+/-1%)7 | 150 | 16 | (16) | 176 | 19 | (18) | |||||
163 | 207 | ||||||||||||
Level 3 financial liabilities carried at fair value | 189 | 240 | |||||||||||
Carrying value £m | Fair value £m | Valuation hierarchy | ||||
Level 1 £m | Level 2 £m | Level 3 £m | ||||
At 31 December 2022 | ||||||
Loans and advances to banks | 8,363 | 8,363 | – | – | 8,363 | |
Loans and advances to customers | 435,627 | 430,980 | – | – | 430,980 | |
Reverse repurchase agreements | 39,259 | 39,259 | – | 39,259 | – | |
Debt securities | 7,331 | 7,334 | 167 | 7,167 | – | |
Due from fellow Lloyds Banking Group undertakings | 816 | 816 | – | – | 816 | |
Financial assets at amortised cost | 491,396 | 486,752 | 167 | 46,426 | 440,159 | |
At 31 December 2021 | ||||||
Loans and advances to banks | 4,478 | 4,478 | – | – | 4,478 | |
Loans and advances to customers | 430,829 | 434,280 | – | – | 434,280 | |
Reverse repurchase agreements | 49,708 | 49,708 | – | 49,708 | – | |
Debt securities | 4,562 | 4,615 | – | 4,615 | – | |
Due from fellow Lloyds Banking Group undertakings | 739 | 739 | – | – | 739 | |
Financial assets at amortised cost | 490,316 | 493,820 | – | 54,323 | 439,497 | |
Carrying value £m | Fair value £m | Valuation hierarchy | ||||
Level 1 £m | Level 2 £m | Level 3 £m | ||||
At 31 December 2022 | ||||||
Deposits from banks | 4,658 | 4,660 | – | 4,660 | – | |
Customer deposits | 446,172 | 445,916 | – | 445,916 | – | |
Repurchase agreements at amortised cost | 48,590 | 48,590 | – | 48,590 | – | |
Due to fellow Lloyds Banking Group undertakings | 2,539 | 2,539 | – | 2,539 | – | |
Debt securities in issue | 49,056 | 48,818 | – | 48,818 | – | |
Subordinated liabilities | 6,593 | 6,760 | – | 6,760 | – | |
At 31 December 2021 | ||||||
Deposits from banks | 3,363 | 3,364 | – | 3,364 | – | |
Customer deposits | 449,373 | 449,455 | – | 449,455 | – | |
Repurchase agreements at amortised cost | 30,106 | 30,106 | – | 30,106 | – | |
Due to fellow Lloyds Banking Group undertakings | 1,490 | 1,490 | – | 1,490 | – | |
Debt securities in issue | 48,724 | 50,683 | – | 50,683 | – | |
Subordinated liabilities | 8,658 | 9,363 | – | 9,363 | – | |
2022 | 2021 | ||||
Carrying value of transferred assets £m | Carrying value of associated liabilities £m | Carrying value of transferred assets £m | Carrying value of associated liabilities £m | ||
Repurchase and securities lending transactions | |||||
Financial assets at fair value through other comprehensive income | 11,801 | 6,571 | 7,706 | 5,039 | |
Securitisation programmes | |||||
Financial assets at amortised cost: | |||||
Loans and advances to customers1 | 28,981 | 2,806 | 30,965 | 3,705 | |
Related amounts where set off in the balance sheet not permitted1 | Potential net amounts if offset of related amounts permitted £m | ||||||||||
Gross amounts of assets and liabilities2 £m | Amount offset in the balance sheet3 £m | Net amounts presented in the balance sheet £m | Cash collateral received/ pledged £m | Non-cash collateral received/ pledged £m | |||||||
At 31 December 2022 | |||||||||||
Financial assets | |||||||||||
Financial assets at fair value through profit or loss | 1,371 | – | 1,371 | – | – | 1,371 | |||||
Derivative financial instruments | 55,541 | (51,684) | 3,857 | (767) | (2,983) | 107 | |||||
Financial assets at amortised cost: | |||||||||||
Loans and advances to banks | 8,363 | – | 8,363 | (1,147) | – | 7,216 | |||||
Loans and advances to customers | 438,957 | (3,330) | 435,627 | (308) | (2,171) | 433,148 | |||||
Reverse repurchase agreements | 49,694 | (10,435) | 39,259 | – | (39,259) | – | |||||
Debt securities | 7,331 | – | 7,331 | – | – | 7,331 | |||||
504,345 | (13,765) | 490,580 | (1,455) | (41,430) | 447,695 | ||||||
Financial assets at fair value through other comprehensive income | 22,846 | – | 22,846 | – | (6,393) | 16,453 | |||||
Financial liabilities | |||||||||||
Deposits from banks | 4,658 | – | 4,658 | (626) | – | 4,032 | |||||
Customer deposits | 447,096 | (924) | 446,172 | (141) | (2,171) | 443,860 | |||||
Repurchase agreements at amortised cost | 59,025 | (10,435) | 48,590 | – | (48,590) | – | |||||
Financial liabilities at fair value through profit or loss | 5,159 | – | 5,159 | – | – | 5,159 | |||||
Derivative financial instruments | 59,981 | (54,090) | 5,891 | (1,455) | (3,988) | 448 | |||||
Related amounts where set off in the balance sheet not permitted1 | Potential net amounts if offset of related amounts permitted £m | ||||||||||
Gross amounts of assets and liabilities2 £m | Amount offset in the balance sheet3 £m | Net amounts presented in the balance sheet £m | Cash collateral received/ pledged £m | Non-cash collateral received/ pledged £m | |||||||
At 31 December 2021 | |||||||||||
Financial assets | |||||||||||
Financial assets at fair value through profit or loss | 1,798 | – | 1,798 | – | (35) | 1,763 | |||||
Derivative financial instruments | 33,665 | (28,154) | 5,511 | (1,621) | (2,733) | 1,157 | |||||
Financial assets at amortised cost: | |||||||||||
Loans and advances to banks | 4,478 | – | 4,478 | (350) | – | 4,128 | |||||
Loans and advances to customers | 431,994 | (1,165) | 430,829 | (102) | (1,506) | 429,221 | |||||
Reverse repurchase agreements | 59,645 | (9,937) | 49,708 | – | (49,708) | – | |||||
Debt securities | 4,562 | – | 4,562 | – | (267) | 4,295 | |||||
500,679 | (11,102) | 489,577 | (452) | (51,481) | 437,644 | ||||||
Financial assets at fair value through other comprehensive income | 27,786 | – | 27,786 | – | (4,981) | 22,805 | |||||
Financial liabilities | |||||||||||
Deposits from banks | 3,363 | – | 3,363 | (1,404) | – | 1,959 | |||||
Customer deposits | 450,538 | (1,165) | 449,373 | (217) | (1,506) | 447,650 | |||||
Repurchase agreements at amortised cost | 40,043 | (9,937) | 30,106 | – | (30,106) | – | |||||
Financial liabilities at fair value through profit or loss | 6,537 | – | 6,537 | – | – | 6,537 | |||||
Derivative financial instruments | 32,797 | (28,154) | 4,643 | (452) | (4,191) | – | |||||
At 31 December 2022 | At 31 December 2021 | ||||||||||||||
GBP LIBOR £m | USD LIBOR £m | Other1 £m | Total £m | GBP LIBOR £m | USD LIBOR £m | Other £m | Total £m | ||||||||
Non-derivative financial assets | |||||||||||||||
Financial assets at fair value through profit or loss | – | – | – | – | 131 | 172 | – | 303 | |||||||
Loans and advances to banks | – | 67 | – | 67 | – | 3,252 | – | 3,252 | |||||||
Loans and advances to customers | 760 | 670 | 2 | 1,432 | 3,419 | 2,549 | – | 5,968 | |||||||
Financial assets at amortised cost | 760 | 737 | 2 | 1,499 | 3,419 | 5,801 | – | 9,220 | |||||||
760 | 737 | 2 | 1,499 | 3,550 | 5,973 | – | 9,523 | ||||||||
Non-derivative financial liabilities | |||||||||||||||
Financial liabilities at fair value through profit or loss | – | 100 | – | 100 | – | 100 | 3 | 103 | |||||||
Debt securities in issue2 | – | 1,216 | 310 | 1,526 | – | 3,548 | 26 | 3,574 | |||||||
– | 1,316 | 310 | 1,626 | – | 3,648 | 29 | 3,677 | ||||||||
Derivative notional/contract amount | |||||||||||||||
Interest rate | 242 | 96,795 | 653 | 97,690 | 4,271 | 120,797 | – | 125,068 | |||||||
Cross currency | – | 14,414 | 921 | 15,335 | – | 22,663 | – | 22,663 | |||||||
242 | 111,209 | 1,574 | 113,025 | 4,271 | 143,460 | – | 147,731 | ||||||||
2022 | 2021 | ||||||||||
Maximum exposure £m | Offset1 £m | Net exposure £m | Maximum exposure £m | Offset1 £m | Net exposure £m | ||||||
Financial assets at fair value through profit or loss2 | 1,132 | – | 1,132 | 1,559 | – | 1,559 | |||||
Derivative financial instruments | 3,857 | (1,811) | 2,046 | 5,511 | (2,369) | 3,142 | |||||
Financial assets at amortised cost, net3: | |||||||||||
Loans and advances to banks, net3 | 8,363 | – | 8,363 | 4,478 | – | 4,478 | |||||
Loans and advances to customers, net3 | 435,627 | (2,171) | 433,456 | 430,829 | (1,506) | 429,323 | |||||
Reverse repurchase agreements, net3 | 39,259 | – | 39,259 | 49,708 | – | 49,708 | |||||
Debt securities, net3 | 7,331 | – | 7,331 | 4,562 | – | 4,562 | |||||
490,580 | (2,171) | 488,409 | 489,577 | (1,506) | 488,071 | ||||||
Financial assets at fair value through other comprehensive income2 | 22,845 | – | 22,845 | 27,785 | – | 27,785 | |||||
Off-balance sheet items: | |||||||||||
Acceptances and endorsements | 58 | – | 58 | 21 | – | 21 | |||||
Other items serving as direct credit substitutes | 781 | – | 781 | 433 | – | 433 | |||||
Performance bonds, including letters of credit, and other transaction-related contingencies | 2,061 | – | 2,061 | 1,886 | – | 1,886 | |||||
Irrevocable commitments and guarantees | 57,782 | – | 57,782 | 55,690 | – | 55,690 | |||||
60,682 | – | 60,682 | 58,030 | – | 58,030 | ||||||
579,096 | (3,982) | 575,114 | 582,462 | (3,875) | 578,587 | ||||||
2022 £m | 2021 £m | |
Agriculture, forestry and fishing | 7,447 | 7,728 |
Energy and water supply | 2,515 | 1,962 |
Manufacturing | 3,311 | 3,505 |
Construction | 4,057 | 4,325 |
Transport, distribution and hotels | 13,062 | 13,367 |
Postal and telecommunications | 2,409 | 1,857 |
Property companies | 20,866 | 23,156 |
Financial, business and other services | 21,281 | 19,137 |
Personal: | ||
Mortgages1 | 322,480 | 318,422 |
Other | 26,099 | 24,546 |
Lease financing | 625 | 843 |
Hire purchase | 15,950 | 15,785 |
Total loans and advances to customers before allowance for impairment losses | 440,102 | 434,633 |
Allowance for impairment losses (note 15) | (4,475) | (3,804) |
Total loans and advances to customers | 435,627 | 430,829 |
Retail | Commercial | |||
Quality classification | IFRS 9 PD range | Quality classification | IFRS 9 PD range | |
RMS 1–3 | 0.00–0.80% | CMS 1–5 | 0.000–0.100% | |
RMS 4–6 | 0.81–4.50% | CMS 6–10 | 0.101–0.500% | |
RMS 7–9 | 4.51–14.00% | CMS 11–14 | 0.501–3.000% | |
RMS 10 | 14.01–20.00% | CMS 15–18 | 3.001–20.000% | |
RMS 11–13 | 20.01–99.99% | CMS 19 | 20.001–99.999% | |
RMS 14 | 100.00% | CMS 20–23 | 100.000% | |
Drawn exposures | Expected credit loss allowance | ||||||||||||||||||
Gross drawn exposures and expected credit loss allowance | Stage 1 £m | Stage 2 £m | Stage 3 £m | POCI £m | Total £m | Stage 1 £m | Stage 2 £m | Stage 3 £m | POCI £m | Total £m | |||||||||
At 31 December 2022 | |||||||||||||||||||
Loans and advances to banks | |||||||||||||||||||
CMS 1–5 | 1,093 | – | – | – | 1,093 | – | – | – | – | – | |||||||||
CMS 6–10 | 7,263 | – | – | – | 7,263 | 9 | – | – | – | 9 | |||||||||
CMS 11–14 | 13 | 3 | – | – | 16 | – | – | – | – | – | |||||||||
CMS 15–18 | – | – | – | – | – | – | – | – | – | – | |||||||||
CMS 19 | – | – | – | – | – | – | – | – | – | – | |||||||||
CMS 20–23 | – | – | – | – | – | – | – | – | – | – | |||||||||
8,369 | 3 | – | – | 8,372 | 9 | – | – | – | 9 | ||||||||||
Loans and advances to customers | |||||||||||||||||||
Retail – UK mortgages | |||||||||||||||||||
RMS 1–3 | 250,937 | 24,844 | – | – | 275,781 | 81 | 180 | – | – | 261 | |||||||||
RMS 4–6 | 6,557 | 11,388 | – | – | 17,945 | 10 | 140 | – | – | 150 | |||||||||
RMS 7–9 | 23 | 2,443 | – | – | 2,466 | – | 72 | – | – | 72 | |||||||||
RMS 10 | – | 734 | – | – | 734 | – | 24 | – | – | 24 | |||||||||
RMS 11–13 | – | 2,374 | – | – | 2,374 | – | 136 | – | – | 136 | |||||||||
RMS 14 | – | – | 3,416 | 9,622 | 13,038 | – | – | 311 | 253 | 564 | |||||||||
257,517 | 41,783 | 3,416 | 9,622 | 312,338 | 91 | 552 | 311 | 253 | 1,207 | ||||||||||
Retail – credit cards | |||||||||||||||||||
RMS 1–3 | 3,587 | 5 | – | – | 3,592 | 7 | – | – | – | 7 | |||||||||
RMS 4–6 | 6,497 | 1,441 | – | – | 7,938 | 66 | 70 | – | – | 136 | |||||||||
RMS 7–9 | 1,332 | 1,246 | – | – | 2,578 | 47 | 167 | – | – | 214 | |||||||||
RMS 10 | – | 227 | – | – | 227 | – | 52 | – | – | 52 | |||||||||
RMS 11–13 | – | 368 | – | – | 368 | – | 144 | – | – | 144 | |||||||||
RMS 14 | – | – | 289 | – | 289 | – | – | 113 | – | 113 | |||||||||
11,416 | 3,287 | 289 | – | 14,992 | 120 | 433 | 113 | – | 666 | ||||||||||
Retail – loans and overdrafts | |||||||||||||||||||
RMS 1–3 | 659 | 1 | – | – | 660 | 2 | – | – | – | 2 | |||||||||
RMS 4–6 | 5,902 | 451 | – | – | 6,353 | 90 | 24 | – | – | 114 | |||||||||
RMS 7–9 | 1,724 | 657 | – | – | 2,381 | 69 | 83 | – | – | 152 | |||||||||
RMS 10 | 53 | 199 | – | – | 252 | 5 | 45 | – | – | 50 | |||||||||
RMS 11–13 | 19 | 405 | – | – | 424 | 3 | 163 | – | – | 166 | |||||||||
RMS 14 | – | – | 247 | – | 247 | – | – | 126 | – | 126 | |||||||||
8,357 | 1,713 | 247 | – | 10,317 | 169 | 315 | 126 | – | 610 | ||||||||||
Retail – UK Motor Finance | |||||||||||||||||||
RMS 1–3 | 8,969 | 743 | – | – | 9,712 | 66 | 9 | – | – | 75 | |||||||||
RMS 4–6 | 2,778 | 930 | – | – | 3,708 | 25 | 20 | – | – | 45 | |||||||||
RMS 7–9 | 425 | 325 | – | – | 750 | 2 | 13 | – | – | 15 | |||||||||
RMS 10 | – | 99 | – | – | 99 | – | 8 | – | – | 8 | |||||||||
RMS 11–13 | 2 | 148 | – | – | 150 | – | 26 | – | – | 26 | |||||||||
RMS 14 | – | – | 154 | – | 154 | – | – | 81 | – | 81 | |||||||||
12,174 | 2,245 | 154 | – | 14,573 | 93 | 76 | 81 | – | 250 | ||||||||||
Retail – other | |||||||||||||||||||
RMS 1–3 | 12,588 | 328 | – | – | 12,916 | 9 | 4 | – | – | 13 | |||||||||
RMS 4–6 | 1,311 | 213 | – | – | 1,524 | 4 | 11 | – | – | 15 | |||||||||
RMS 7–9 | – | 90 | – | – | 90 | – | 3 | – | – | 3 | |||||||||
RMS 10 | – | 5 | – | – | 5 | – | – | – | – | – | |||||||||
RMS 11–13 | 91 | 7 | – | – | 98 | – | – | – | – | – | |||||||||
RMS 14 | – | – | 157 | – | 157 | – | – | 52 | – | 52 | |||||||||
13,990 | 643 | 157 | – | 14,790 | 13 | 18 | 52 | – | 83 | ||||||||||
Total Retail | 303,454 | 49,671 | 4,263 | 9,622 | 367,010 | 486 | 1,394 | 683 | 253 | 2,816 | |||||||||
Drawn exposures | Expected credit loss allowance | ||||||||||||||||||
Gross drawn exposures and expected credit loss allowance (continued) | Stage 1 £m | Stage 2 £m | Stage 3 £m | POCI £m | Total £m | Stage 1 £m | Stage 2 £m | Stage 3 £m | POCI £m | Total £m | |||||||||
At 31 December 2022 | |||||||||||||||||||
Commercial Banking | |||||||||||||||||||
CMS 1–5 | 11,906 | 14 | – | – | 11,920 | 2 | – | – | – | 2 | |||||||||
CMS 6–10 | 16,689 | 293 | – | – | 16,982 | 21 | 2 | – | – | 23 | |||||||||
CMS 11–14 | 30,646 | 4,963 | – | – | 35,609 | 123 | 83 | – | – | 206 | |||||||||
CMS 15–18 | 3,257 | 4,352 | – | – | 7,609 | 46 | 239 | – | – | 285 | |||||||||
CMS 19 | 12 | 810 | – | – | 822 | – | 74 | – | – | 74 | |||||||||
CMS 20–23 | – | – | 3,348 | – | 3,348 | – | – | 1,069 | – | 1,069 | |||||||||
62,510 | 10,432 | 3,348 | – | 76,290 | 192 | 398 | 1,069 | – | 1,659 | ||||||||||
Other1 | (3,198) | – | – | – | (3,198) | – | – | – | – | – | |||||||||
Total loans and advances to customers | 362,766 | 60,103 | 7,611 | 9,622 | 440,102 | 678 | 1,792 | 1,752 | 253 | 4,475 | |||||||||
In respect of: | |||||||||||||||||||
Retail | 303,454 | 49,671 | 4,263 | 9,622 | 367,010 | 486 | 1,394 | 683 | 253 | 2,816 | |||||||||
Commercial Banking | 62,510 | 10,432 | 3,348 | – | 76,290 | 192 | 398 | 1,069 | – | 1,659 | |||||||||
Other1 | (3,198) | – | – | – | (3,198) | – | – | – | – | – | |||||||||
Total loans and advances to customers | 362,766 | 60,103 | 7,611 | 9,622 | 440,102 | 678 | 1,792 | 1,752 | 253 | 4,475 | |||||||||
Reverse repurchase agreements | |||||||||||||||||||
Banks | |||||||||||||||||||
CMS 1–5 | 3,292 | – | – | – | 3,292 | – | – | – | – | – | |||||||||
CMS 6–10 | 258 | – | – | – | 258 | – | – | – | – | – | |||||||||
CMS 11–14 | – | – | – | – | – | – | – | – | – | – | |||||||||
CMS 15–18 | – | – | – | – | – | – | – | – | – | – | |||||||||
CMS 19 | – | – | – | – | – | – | – | – | – | – | |||||||||
CMS 20–23 | – | – | – | – | – | – | – | – | – | – | |||||||||
3,550 | – | – | – | 3,550 | – | – | – | – | – | ||||||||||
Customers | |||||||||||||||||||
CMS 1–5 | 3,752 | – | – | – | 3,752 | – | – | – | – | – | |||||||||
CMS 6–10 | 31,957 | – | – | – | 31,957 | – | – | – | – | – | |||||||||
CMS 11–14 | – | – | – | – | – | – | – | – | – | – | |||||||||
CMS 15–18 | – | – | – | – | – | – | – | – | – | – | |||||||||
CMS 19 | – | – | – | – | – | – | – | – | – | – | |||||||||
CMS 20–23 | – | – | – | – | – | – | – | – | – | – | |||||||||
35,709 | – | – | – | 35,709 | – | – | – | – | – | ||||||||||
Total reverse repurchase agreements | 39,259 | – | – | – | 39,259 | – | – | – | – | – |
Undrawn exposures | Expected credit loss allowance | ||||||||||||||||||
Gross undrawn exposures and expected credit loss allowance | Stage 1 £m | Stage 2 £m | Stage 3 £m | POCI £m | Total £m | Stage 1 £m | Stage 2 £m | Stage 3 £m | POCI £m | Total £m | |||||||||
At 31 December 2022 | |||||||||||||||||||
Retail – UK mortgages | |||||||||||||||||||
RMS 1–3 | 16,003 | 159 | – | – | 16,162 | – | – | – | – | – | |||||||||
RMS 4–6 | 83 | 62 | – | – | 145 | 1 | – | – | – | 1 | |||||||||
RMS 7–9 | – | 25 | – | – | 25 | – | – | – | – | – | |||||||||
RMS 10 | – | 7 | – | – | 7 | – | – | – | – | – | |||||||||
RMS 11–13 | – | 21 | – | – | 21 | – | 1 | – | – | 1 | |||||||||
RMS 14 | – | – | 17 | 67 | 84 | – | – | – | – | – | |||||||||
16,086 | 274 | 17 | 67 | 16,444 | 1 | 1 | – | – | 2 | ||||||||||
Retail – credit cards | |||||||||||||||||||
RMS 1–3 | 39,384 | 30 | – | – | 39,414 | 16 | – | – | – | 16 | |||||||||
RMS 4–6 | 14,355 | 2,975 | – | – | 17,330 | 32 | 28 | – | – | 60 | |||||||||
RMS 7–9 | 580 | 422 | – | – | 1,002 | 5 | 8 | – | – | 13 | |||||||||
RMS 10 | – | 46 | – | – | 46 | – | 2 | – | – | 2 | |||||||||
RMS 11–13 | – | 76 | – | – | 76 | – | 6 | – | – | 6 | |||||||||
RMS 14 | – | – | 45 | – | 45 | – | – | – | – | – | |||||||||
54,319 | 3,549 | 45 | – | 57,913 | 53 | 44 | – | – | 97 | ||||||||||
Retail – loans and overdrafts | |||||||||||||||||||
RMS 1–3 | 4,174 | 2 | – | – | 4,176 | 4 | – | – | – | 4 | |||||||||
RMS 4–6 | 1,618 | 386 | – | – | 2,004 | 6 | 12 | – | – | 18 | |||||||||
RMS 7–9 | 253 | 159 | – | – | 412 | 6 | 18 | – | – | 24 | |||||||||
RMS 10 | 6 | 36 | – | – | 42 | – | 7 | – | – | 7 | |||||||||
RMS 11–13 | – | 61 | – | – | 61 | – | 15 | – | – | 15 | |||||||||
RMS 14 | – | – | 17 | – | 17 | – | – | – | – | – | |||||||||
6,051 | 644 | 17 | – | 6,712 | 16 | 52 | – | – | 68 | ||||||||||
Retail – UK Motor Finance | |||||||||||||||||||
RMS 1–3 | 318 | – | – | – | 318 | – | – | – | – | – | |||||||||
RMS 4–6 | 1,259 | – | – | – | 1,259 | 2 | – | – | – | 2 | |||||||||
RMS 7–9 | 347 | 1 | – | – | 348 | – | – | – | – | – | |||||||||
RMS 10 | – | – | – | – | – | – | – | – | – | – | |||||||||
RMS 11–13 | – | – | – | – | – | – | – | – | – | – | |||||||||
RMS 14 | – | – | – | – | – | – | – | – | – | – | |||||||||
1,924 | 1 | – | – | 1,925 | 2 | – | – | – | 2 | ||||||||||
Retail – other | |||||||||||||||||||
RMS 1–3 | 702 | – | – | – | 702 | – | – | – | – | – | |||||||||
RMS 4–6 | 198 | – | – | – | 198 | 3 | – | – | – | 3 | |||||||||
RMS 7–9 | – | – | – | – | – | – | – | – | – | – | |||||||||
RMS 10 | – | – | – | – | – | – | – | – | – | – | |||||||||
RMS 11–13 | – | – | – | – | – | – | – | – | – | – | |||||||||
RMS 14 | – | – | – | – | – | – | – | – | – | – | |||||||||
900 | – | – | – | 900 | 3 | – | – | – | 3 | ||||||||||
Total Retail | 79,280 | 4,468 | 79 | 67 | 83,894 | 75 | 97 | – | – | 172 | |||||||||
Gross undrawn exposures and expected credit loss allowance (continued) | Undrawn exposures | Expected credit loss allowance | |||||||||||||||||
Stage 1 £m | Stage 2 £m | Stage 3 £m | POCI £m | Total £m | Stage 1 £m | Stage 2 £m | Stage 3 £m | POCI £m | Total £m | ||||||||||
At 31 December 2022 | |||||||||||||||||||
Commercial Banking | |||||||||||||||||||
CMS 1–5 | 15,266 | – | – | – | 15,266 | 1 | – | – | – | 1 | |||||||||
CMS 6–10 | 16,508 | 34 | – | – | 16,542 | 11 | 2 | – | – | 13 | |||||||||
CMS 11–14 | 8,657 | 1,296 | – | – | 9,953 | 27 | 27 | – | – | 54 | |||||||||
CMS 15–18 | 779 | 800 | – | – | 1,579 | 8 | 42 | – | – | 50 | |||||||||
CMS 19 | – | 85 | – | – | 85 | – | 10 | – | – | 10 | |||||||||
CMS 20–23 | – | – | 48 | – | 48 | – | – | 4 | – | 4 | |||||||||
41,210 | 2,215 | 48 | – | 43,473 | 47 | 81 | 4 | – | 132 | ||||||||||
Other | |||||||||||||||||||
CMS 1–5 | 2 | – | – | – | 2 | – | – | – | – | – | |||||||||
CMS 6–10 | – | – | – | – | – | – | – | – | – | – | |||||||||
CMS 11–14 | – | – | – | – | – | – | – | – | – | – | |||||||||
CMS 15–18 | – | – | – | – | – | – | – | – | – | – | |||||||||
CMS 19 | – | – | – | – | – | – | – | – | – | – | |||||||||
CMS 20–23 | – | – | – | – | – | – | – | – | – | – | |||||||||
2 | – | – | – | 2 | – | – | – | – | – | ||||||||||
Total | 120,492 | 6,683 | 127 | 67 | 127,369 | 122 | 178 | 4 | – | 304 | |||||||||
In respect of: | |||||||||||||||||||
Retail | 79,280 | 4,468 | 79 | 67 | 83,894 | 75 | 97 | – | – | 172 | |||||||||
Commercial Banking | 41,210 | 2,215 | 48 | – | 43,473 | 47 | 81 | 4 | – | 132 | |||||||||
Other | 2 | – | – | – | 2 | – | – | – | – | – | |||||||||
Total | 120,492 | 6,683 | 127 | 67 | 127,369 | 122 | 178 | 4 | – | 304 | |||||||||
Drawn exposures | Expected credit loss allowance | ||||||||||||||||||
Gross drawn exposures and expected credit loss allowance | Stage 1 £m | Stage 2 £m | Stage 3 £m | POCI £m | Total £m | Stage 1 £m | Stage 2 £m | Stage 3 £m | POCI £m | Total £m | |||||||||
At 31 December 2021 | |||||||||||||||||||
Loans and advances to banks | |||||||||||||||||||
CMS 1–5 | 4,108 | – | – | – | 4,108 | – | – | – | – | – | |||||||||
CMS 6–10 | 368 | – | – | – | 368 | – | – | – | – | – | |||||||||
CMS 11–14 | 2 | – | – | – | 2 | – | – | – | – | – | |||||||||
CMS 15–18 | – | – | – | – | – | – | – | – | – | – | |||||||||
CMS 19 | – | – | – | – | – | – | – | – | – | – | |||||||||
CMS 20–23 | – | – | – | – | – | – | – | – | – | – | |||||||||
4,478 | – | – | – | 4,478 | – | – | – | – | – | ||||||||||
Loans and advances to customers | |||||||||||||||||||
Retail – UK mortgages | |||||||||||||||||||
RMS 1–3 | 270,649 | 9,785 | – | – | 280,434 | 48 | 146 | – | – | 194 | |||||||||
RMS 4–6 | 2,971 | 8,288 | – | – | 11,259 | – | 104 | – | – | 104 | |||||||||
RMS 7–9 | 9 | 2,258 | – | – | 2,267 | – | 64 | – | – | 64 | |||||||||
RMS 10 | – | 355 | – | – | 355 | – | 15 | – | – | 15 | |||||||||
RMS 11–13 | – | 1,112 | – | – | 1,112 | – | 65 | – | – | 65 | |||||||||
RMS 14 | – | – | 1,940 | 10,977 | 12,917 | – | – | 184 | 210 | 394 | |||||||||
273,629 | 21,798 | 1,940 | 10,977 | 308,344 | 48 | 394 | 184 | 210 | 836 | ||||||||||
Retail – credit cards1 | |||||||||||||||||||
RMS 1–3 | 5,076 | 15 | – | – | 5,091 | 9 | – | – | – | 9 | |||||||||
RMS 4–6 | 6,023 | 1,092 | – | – | 7,115 | 58 | 43 | – | – | 101 | |||||||||
RMS 7–9 | 819 | 623 | – | – | 1,442 | 29 | 71 | – | – | 100 | |||||||||
RMS 10 | – | 112 | – | – | 112 | – | 22 | – | – | 22 | |||||||||
RMS 11–13 | – | 235 | – | – | 235 | – | 82 | – | – | 82 | |||||||||
RMS 14 | – | – | 292 | – | 292 | – | – | 128 | – | 128 | |||||||||
11,918 | 2,077 | 292 | – | 14,287 | 96 | 218 | 128 | – | 442 | ||||||||||
Retail – loans and overdrafts | |||||||||||||||||||
RMS 1–3 | 1,426 | 2 | – | – | 1,428 | 5 | – | – | – | 5 | |||||||||
RMS 4–6 | 5,794 | 499 | – | – | 6,293 | 79 | 23 | – | – | 102 | |||||||||
RMS 7–9 | 938 | 286 | – | – | 1,224 | 39 | 33 | – | – | 72 | |||||||||
RMS 10 | 18 | 74 | – | – | 92 | 2 | 14 | – | – | 16 | |||||||||
RMS 11–13 | 5 | 244 | – | – | 249 | 1 | 83 | – | – | 84 | |||||||||
RMS 14 | – | – | 271 | – | 271 | – | – | 139 | – | 139 | |||||||||
8,181 | 1,105 | 271 | – | 9,557 | 126 | 153 | 139 | – | 418 | ||||||||||
Retail – UK Motor Finance | |||||||||||||||||||
RMS 1–3 | 8,758 | 465 | – | – | 9,223 | 79 | 6 | – | – | 85 | |||||||||
RMS 4–6 | 2,904 | 844 | – | – | 3,748 | 22 | 19 | – | – | 41 | |||||||||
RMS 7–9 | 583 | 298 | – | – | 881 | 5 | 15 | – | – | 20 | |||||||||
RMS 10 | – | 69 | – | – | 69 | – | 7 | – | – | 7 | |||||||||
RMS 11–13 | 2 | 152 | – | – | 154 | – | 27 | – | – | 27 | |||||||||
RMS 14 | – | – | 201 | – | 201 | – | – | 116 | – | 116 | |||||||||
12,247 | 1,828 | 201 | – | 14,276 | 106 | 74 | 116 | – | 296 | ||||||||||
Retail – other1 | |||||||||||||||||||
RMS 1–3 | 9,715 | 228 | – | – | 9,943 | 3 | 4 | – | – | 7 | |||||||||
RMS 4–6 | 1,386 | 265 | – | – | 1,651 | 11 | 8 | – | – | 19 | |||||||||
RMS 7–9 | – | 88 | – | – | 88 | – | 3 | – | – | 3 | |||||||||
RMS 10 | – | 2 | – | – | 2 | – | – | – | – | – | |||||||||
RMS 11–13 | 97 | 10 | – | – | 107 | – | – | – | – | – | |||||||||
RMS 14 | – | – | 169 | – | 169 | – | – | 52 | – | 52 | |||||||||
11,198 | 593 | 169 | – | 11,960 | 14 | 15 | 52 | – | 81 | ||||||||||
Total Retail | 317,173 | 27,401 | 2,873 | 10,977 | 358,424 | 390 | 854 | 619 | 210 | 2,073 | |||||||||
Gross drawn exposures and expected credit loss allowance (continued) | Drawn exposures | Expected credit loss allowance | |||||||||||||||||
Stage 1 £m | Stage 2 £m | Stage 3 £m | POCI £m | Total £m | Stage 1 £m | Stage 2 £m | Stage 3 £m | POCI £m | Total £m | ||||||||||
At 31 December 2021 | |||||||||||||||||||
Commercial Banking1 | |||||||||||||||||||
CMS 1–5 | 11,678 | 34 | – | – | 11,712 | 1 | – | – | – | 1 | |||||||||
CMS 6–10 | 19,822 | 309 | – | – | 20,131 | 21 | – | – | – | 21 | |||||||||
CMS 11–14 | 31,979 | 3,453 | – | – | 35,432 | 83 | 76 | – | – | 159 | |||||||||
CMS 15–18 | 2,181 | 2,832 | – | – | 5,013 | 14 | 143 | – | – | 157 | |||||||||
CMS 19 | – | 855 | – | – | 855 | – | 39 | – | – | 39 | |||||||||
CMS 20–23 | – | – | 3,533 | – | 3,533 | – | – | 954 | – | 954 | |||||||||
65,660 | 7,483 | 3,533 | – | 76,676 | 119 | 258 | 954 | – | 1,331 | ||||||||||
Other2 | (467) | – | – | – | (467) | 400 | – | – | – | 400 | |||||||||
Total loans and advances to customers | 382,366 | 34,884 | 6,406 | 10,977 | 434,633 | 909 | 1,112 | 1,573 | 210 | 3,804 | |||||||||
In respect of: | |||||||||||||||||||
Retail | 317,173 | 27,401 | 2,873 | 10,977 | 358,424 | 390 | 854 | 619 | 210 | 2,073 | |||||||||
Commercial Banking | 65,660 | 7,483 | 3,533 | – | 76,676 | 119 | 258 | 954 | – | 1,331 | |||||||||
Other2 | (467) | – | – | – | (467) | 400 | – | – | – | 400 | |||||||||
Total loans and advances to customers | 382,366 | 34,884 | 6,406 | 10,977 | 434,633 | 909 | 1,112 | 1,573 | 210 | 3,804 | |||||||||
Reverse repurchase agreements | |||||||||||||||||||
Banks | |||||||||||||||||||
CMS 1–5 | 2,901 | – | – | – | 2,901 | – | – | – | – | – | |||||||||
CMS 6–10 | 95 | – | – | – | 95 | – | – | – | – | – | |||||||||
CMS 11–14 | – | – | – | – | – | – | – | – | – | – | |||||||||
CMS 15–18 | – | – | – | – | – | – | – | – | – | – | |||||||||
CMS 19 | – | – | – | – | – | – | – | – | – | – | |||||||||
CMS 20–23 | – | – | – | – | – | – | – | – | – | – | |||||||||
2,996 | – | – | – | 2,996 | – | – | – | – | – | ||||||||||
Customers | |||||||||||||||||||
CMS 1–5 | 10,399 | – | – | – | 10,399 | – | – | – | – | – | |||||||||
CMS 6–10 | 36,313 | – | – | – | 36,313 | – | – | – | – | – | |||||||||
CMS 11–14 | – | – | – | – | – | – | – | – | – | – | |||||||||
CMS 15–18 | – | – | – | – | – | – | – | – | – | – | |||||||||
CMS 19 | – | – | – | – | – | – | – | – | – | – | |||||||||
CMS 20–23 | – | – | – | – | – | – | – | – | – | – | |||||||||
46,712 | – | – | – | 46,712 | – | – | – | – | – | ||||||||||
Total reverse repurchase agreements | 49,708 | – | – | – | 49,708 | – | – | – | – | – |
Gross undrawn exposures and expected credit loss allowance | Undrawn exposures | Expected credit loss allowance | |||||||||||||||||
Stage 1 £m | Stage 2 £m | Stage 3 £m | POCI £m | Total £m | Stage 1 £m | Stage 2 £m | Stage 3 £m | POCI £m | Total £m | ||||||||||
At 31 December 2021 | |||||||||||||||||||
Retail – UK mortgages | |||||||||||||||||||
RMS 1–3 | 16,947 | 67 | – | – | 17,014 | 1 | – | – | – | 1 | |||||||||
RMS 4–6 | 24 | 25 | – | – | 49 | – | – | – | – | – | |||||||||
RMS 7–9 | – | 3 | – | – | 3 | – | – | – | – | – | |||||||||
RMS 10 | – | – | – | – | – | – | – | – | – | – | |||||||||
RMS 11–13 | – | – | – | – | – | – | – | – | – | – | |||||||||
RMS 14 | – | – | 13 | 72 | 85 | – | – | – | – | – | |||||||||
16,971 | 95 | 13 | 72 | 17,151 | 1 | – | – | – | 1 | ||||||||||
Retail – credit cards1 | |||||||||||||||||||
RMS 1–3 | 47,427 | 81 | – | – | 47,508 | 23 | 2 | – | – | 25 | |||||||||
RMS 4–6 | 8,811 | 2,160 | – | – | 10,971 | 22 | 22 | – | – | 44 | |||||||||
RMS 7–9 | 242 | 172 | – | – | 414 | 3 | 3 | – | – | 6 | |||||||||
RMS 10 | – | 31 | – | – | 31 | – | 1 | – | – | 1 | |||||||||
RMS 11–13 | – | 58 | – | – | 58 | – | 3 | – | – | 3 | |||||||||
RMS 14 | – | – | 55 | – | 55 | – | – | – | – | – | |||||||||
56,480 | 2,502 | 55 | – | 59,037 | 48 | 31 | – | – | 79 | ||||||||||
Retail – loans and overdrafts | |||||||||||||||||||
RMS 1–3 | 5,123 | 3 | – | – | 5,126 | 4 | – | – | – | 4 | |||||||||
RMS 4–6 | 1,180 | 228 | – | – | 1,408 | 5 | 4 | – | – | 9 | |||||||||
RMS 7–9 | 97 | 48 | – | – | 145 | 1 | 5 | – | – | 6 | |||||||||
RMS 10 | 1 | 11 | – | – | 12 | – | 2 | – | – | 2 | |||||||||
RMS 11–13 | – | 29 | – | – | 29 | – | 6 | – | – | 6 | |||||||||
RMS 14 | – | – | 18 | – | 18 | – | – | – | – | – | |||||||||
6,401 | 319 | 18 | – | 6,738 | 10 | 17 | – | – | 27 | ||||||||||
Retail – UK Motor Finance | |||||||||||||||||||
RMS 1–3 | 277 | – | – | – | 277 | – | – | – | – | – | |||||||||
RMS 4–6 | 1,180 | – | – | – | 1,180 | 2 | – | – | – | 2 | |||||||||
RMS 7–9 | 527 | – | – | – | 527 | – | – | – | – | – | |||||||||
RMS 10 | – | – | – | – | – | – | – | – | – | – | |||||||||
RMS 11–13 | 1 | – | – | – | 1 | – | – | – | – | – | |||||||||
RMS 14 | – | – | – | – | – | – | – | – | – | – | |||||||||
1,985 | – | – | – | 1,985 | 2 | – | – | – | 2 | ||||||||||
Retail – other1 | |||||||||||||||||||
RMS 1–3 | 598 | – | – | – | 598 | – | – | – | – | – | |||||||||
RMS 4–6 | 298 | – | – | – | 298 | 1 | – | – | – | 1 | |||||||||
RMS 7–9 | – | – | – | – | – | – | – | – | – | – | |||||||||
RMS 10 | – | – | – | – | – | – | – | – | – | – | |||||||||
RMS 11–13 | – | – | – | – | – | – | – | – | – | – | |||||||||
RMS 14 | – | – | – | – | – | – | – | – | – | – | |||||||||
896 | – | – | – | 896 | 1 | – | – | – | 1 | ||||||||||
Total Retail | 82,733 | 2,916 | 86 | 72 | 85,807 | 62 | 48 | – | – | 110 | |||||||||
Gross undrawn exposures and expected credit loss allowance (continued) | Undrawn exposures | Expected credit loss allowance | |||||||||||||||||
Stage 1 £m | Stage 2 £m | Stage 3 £m | POCI £m | Total £m | Stage 1 £m | Stage 2 £m | Stage 3 £m | POCI £m | Total £m | ||||||||||
At 31 December 2021 | |||||||||||||||||||
Commercial Banking1 | |||||||||||||||||||
CMS 1–5 | 18,993 | 1 | – | – | 18,994 | 1 | – | – | – | 1 | |||||||||
CMS 6–10 | 12,986 | 47 | – | – | 13,033 | 13 | – | – | – | 13 | |||||||||
CMS 11–14 | 7,237 | 1,212 | – | – | 8,449 | 21 | 18 | – | – | 39 | |||||||||
CMS 15–18 | 453 | 347 | – | – | 800 | 6 | 17 | – | – | 23 | |||||||||
CMS 19 | – | 33 | – | – | 33 | – | 3 | – | – | 3 | |||||||||
CMS 20–23 | – | – | 67 | – | 67 | – | – | 5 | – | 5 | |||||||||
39,669 | 1,640 | 67 | – | 41,376 | 41 | 38 | 5 | – | 84 | ||||||||||
Other | |||||||||||||||||||
CMS 1–5 | – | – | – | – | – | – | – | – | – | – | |||||||||
CMS 6–10 | 501 | – | – | – | 501 | – | – | – | – | – | |||||||||
CMS 11–14 | – | – | – | – | – | – | – | – | – | – | |||||||||
CMS 15–18 | – | – | – | – | – | – | – | – | – | – | |||||||||
CMS 19 | – | – | – | – | – | – | – | – | – | – | |||||||||
CMS 20–23 | – | – | – | – | – | – | – | – | – | – | |||||||||
501 | – | – | – | 501 | – | – | – | – | – | ||||||||||
Total | 122,903 | 4,556 | 153 | 72 | 127,684 | 103 | 86 | 5 | – | 194 | |||||||||
In respect of: | |||||||||||||||||||
Retail | 82,733 | 2,916 | 86 | 72 | 85,807 | 62 | 48 | – | – | 110 | |||||||||
Commercial Banking | 39,669 | 1,640 | 67 | – | 41,376 | 41 | 38 | 5 | – | 84 | |||||||||
Other | 501 | – | – | – | 501 | – | – | – | – | – | |||||||||
Total | 122,903 | 4,556 | 153 | 72 | 127,684 | 103 | 86 | 5 | – | 194 | |||||||||
2022 | 2021 | ||||||||||
Investment grade1 £m | Other2 £m | Total £m | Investment grade1 £m | Other2 £m | Total £m | ||||||
Government securities | 247 | – | 247 | 202 | – | 202 | |||||
Asset-backed securities: | |||||||||||
Mortgage-backed securities | 3,712 | – | 3,712 | 1,457 | – | 1,457 | |||||
Other asset-backed securities | 1,946 | 2 | 1,948 | 1,590 | 18 | 1,608 | |||||
5,658 | 2 | 5,660 | 3,047 | 18 | 3,065 | ||||||
Corporate and other debt securities | 1,431 | 1 | 1,432 | 1,296 | 1 | 1,297 | |||||
Gross exposure | 7,336 | 3 | 7,339 | 4,545 | 19 | 4,564 | |||||
Allowance for impairment losses | (8) | (2) | |||||||||
Total debt securities held at amortised cost | 7,331 | 4,562 | |||||||||
2022 | 2021 | ||||||||||
Investment grade1 £m | Other2 £m | Total £m | Investment grade1 £m | Other2 £m | Total £m | ||||||
Debt securities: | |||||||||||
Government securities | 11,196 | – | 11,196 | 14,599 | – | 14,599 | |||||
Asset-backed securities | 87 | 51 | 138 | – | 55 | 55 | |||||
Corporate and other debt securities | 11,470 | 41 | 11,511 | 13,087 | 44 | 13,131 | |||||
22,753 | 92 | 22,845 | 27,686 | 99 | 27,785 | ||||||
Total financial assets at fair value through other comprehensive income | 22,753 | 92 | 22,845 | 27,686 | 99 | 27,785 | |||||
2022 | 2021 | ||||||||||
Investment grade1 £m | Other2 £m | Total £m | Investment grade1 £m | Other2 £m | Total £m | ||||||
Trading and other | 2,435 | 283 | 2,718 | 3,991 | 834 | 4,825 | |||||
Hedging | 14 | 5 | 19 | 52 | – | 52 | |||||
2,449 | 288 | 2,737 | 4,043 | 834 | 4,877 | ||||||
Due from fellow Lloyds Banking Group undertakings | 1,120 | 634 | |||||||||
Total derivative financial instruments | 3,857 | 5,511 | |||||||||
2022 | 2021 | ||||||||||
Stage 1 £m | Stage 2 £m | Stage 3 £m | POCI £m | Total gross £m | Stage 1 £m | Stage 2 £m | Stage 3 £m | POCI £m | Total gross £m | ||
Less than 70 per cent | 210,457 | 33,205 | 3,161 | 8,845 | 255,668 | 217,830 | 19,766 | 1,717 | 9,872 | 249,185 | |
70 per cent to 80 per cent | 31,788 | 5,264 | 170 | 359 | 37,581 | 42,808 | 1,632 | 134 | 572 | 45,146 | |
80 per cent to 90 per cent | 11,942 | 2,604 | 48 | 149 | 14,743 | 12,087 | 253 | 52 | 184 | 12,576 | |
90 per cent to 100 per cent | 3,319 | 606 | 13 | 113 | 4,051 | 779 | 46 | 14 | 135 | 974 | |
Greater than 100 per cent | 11 | 104 | 24 | 156 | 295 | 125 | 101 | 23 | 214 | 463 | |
Total | 257,517 | 41,783 | 3,416 | 9,622 | 312,338 | 273,629 | 21,798 | 1,940 | 10,977 | 308,344 | |
2022 | 2021 | ||||
EPC profile | £m | % | £m | % | |
A | 731 | 0.2 | 563 | 0.2 | |
B | 37,075 | 11.9 | 34,070 | 11.0 | |
C | 60,086 | 19.2 | 54,636 | 17.7 | |
D | 93,010 | 29.8 | 88,752 | 28.8 | |
E | 35,015 | 11.2 | 35,086 | 11.4 | |
F | 6,990 | 2.2 | 7,258 | 2.4 | |
G | 1,519 | 0.5 | 1,546 | 0.5 | |
Unrated properties | 77,912 | 25.0 | 86,433 | 28.0 | |
Total | 312,338 | 100.0 | 308,344 | 100.0 | |
2022 £m | 2021 £m | |
Financial assets at fair value through other comprehensive income | 5,408 | 2,724 |
Total | 5,408 | 2,724 |
Up to 1 month £m | 1–3 months £m | 3–12 months £m | 1–5 years £m | Over 5 years £m | Total £m | ||||||
At 31 December 2022 | |||||||||||
Deposits from banks | 3,728 | 28 | 179 | 673 | 83 | 4,691 | |||||
Customer deposits | 430,808 | 3,565 | 7,164 | 4,882 | 304 | 446,723 | |||||
Repurchase agreements at amortised cost | 12,494 | 6,188 | 904 | 33,054 | 38 | 52,678 | |||||
Financial liabilities at fair value through profit or loss | 84 | 60 | 100 | 1,565 | 3,736 | 5,545 | |||||
Debt securities in issue | 4,400 | 8,571 | 6,717 | 25,886 | 7,802 | 53,376 | |||||
Lease liabilities | 7 | 52 | 161 | 557 | 611 | 1,388 | |||||
Subordinated liabilities | 24 | 89 | 687 | 4,775 | 7,945 | 13,520 | |||||
Total non-derivative financial liabilities | 451,545 | 18,553 | 15,912 | 71,392 | 20,519 | 577,921 | |||||
Derivative financial liabilities: | |||||||||||
Gross settled derivatives – outflows | 2,815 | 3,241 | 3,501 | 7,920 | 4,700 | 22,177 | |||||
Gross settled derivatives – inflows | (1,927) | (2,996) | (3,372) | (7,862) | (4,731) | (20,888) | |||||
Gross settled derivatives – net flows | 888 | 245 | 129 | 58 | (31) | 1,289 | |||||
Net settled derivative liabilities | 2,652 | (19) | 54 | 271 | 250 | 3,208 | |||||
Total derivative financial liabilities | 3,540 | 226 | 183 | 329 | 219 | 4,497 | |||||
At 31 December 2021 | |||||||||||
Deposits from banks | 1,812 | 136 | 32 | 1,420 | 216 | 3,616 | |||||
Customer deposits | 439,193 | 1,540 | 3,616 | 5,046 | 569 | 449,964 | |||||
Repurchase agreements at amortised cost | 475 | 417 | 243 | 30,987 | 7 | 32,129 | |||||
Financial liabilities at fair value through profit or loss | 81 | 21 | 242 | 1,572 | 4,677 | 6,593 | |||||
Debt securities in issue | 4,367 | 5,307 | 8,603 | 27,715 | 4,708 | 50,700 | |||||
Lease liabilities | 2 | 61 | 158 | 578 | 832 | 1,631 | |||||
Subordinated liabilities | 30 | 39 | 370 | 5,418 | 5,679 | 11,536 | |||||
Total non-derivative financial liabilities | 445,960 | 7,521 | 13,264 | 72,736 | 16,688 | 556,169 | |||||
Derivative financial liabilities: | |||||||||||
Gross settled derivatives – outflows | 2,577 | 573 | 4,232 | 11,280 | 4,990 | 23,652 | |||||
Gross settled derivatives – inflows | (2,462) | (425) | (4,168) | (10,945) | (4,734) | (22,734) | |||||
Gross settled derivatives – net flows | 115 | 148 | 64 | 335 | 256 | 918 | |||||
Net settled derivative liabilities | 2,654 | (21) | (6) | 145 | 360 | 3,132 | |||||
Total derivative financial liabilities | 2,769 | 127 | 58 | 480 | 616 | 4,050 |
Within 1 year £m | 1–3 years £m | 3–5 years £m | Over 5 years £m | Total £m | |
At 31 December 2022 | |||||
Acceptances and endorsements | 58 | – | – | – | 58 |
Other contingent liabilities | 1,667 | 548 | 181 | 446 | 2,842 |
Total contingent liabilities | 1,725 | 548 | 181 | 446 | 2,900 |
Lending commitments and guarantees | 91,310 | 8,256 | 10,780 | 16,984 | 127,330 |
Other commitments | – | – | 10 | 29 | 39 |
Total commitments and guarantees | 91,310 | 8,256 | 10,790 | 17,013 | 127,369 |
Total contingents, commitments and guarantees | 93,035 | 8,804 | 10,971 | 17,459 | 130,269 |
At 31 December 2021 | |||||
Acceptances and endorsements | 21 | – | – | – | 21 |
Other contingent liabilities | 1,362 | 242 | 258 | 457 | 2,319 |
Total contingent liabilities | 1,383 | 242 | 258 | 457 | 2,340 |
Lending commitments and guarantees | 97,587 | 15,506 | 9,853 | 4,678 | 127,624 |
Other commitments | – | 18 | – | 42 | 60 |
Total commitments and guarantees | 97,587 | 15,524 | 9,853 | 4,720 | 127,684 |
Total contingents, commitments and guarantees | 98,970 | 15,766 | 10,111 | 5,177 | 130,024 |
2022 £m | 20211 £m | 20201 £m | |
Change in amounts due from fellow Lloyds Banking Group undertakings | (77) | (1) | 1,116 |
Change in other financial assets held at amortised cost | (167) | 3,406 | (8,714) |
Change in financial assets at fair value through profit or loss | 427 | (124) | 610 |
Change in derivative financial instruments | (2,877) | 1,548 | 479 |
Change in other operating assets | (206) | 345 | 627 |
Change in operating assets | (2,900) | 5,174 | (5,882) |
2022 £m | 2021 £m | 2020 £m | |
Change in deposits from banks and repurchase agreements | 4,213 | 8,451 | 1,404 |
Change in customer deposits and repurchase agreements | 12,365 | 14,825 | 37,728 |
Change in amounts due to fellow Lloyds Banking Group undertakings | (603) | (806) | (1,316) |
Change in financial liabilities at fair value through profit or loss | (859) | (380) | (946) |
Change in derivative financial instruments | 1,248 | (3,585) | (1,603) |
Change in debt securities in issue | 332 | (10,569) | (17,138) |
Change in other operating liabilities1 | 198 | 174 | (288) |
Change in operating liabilities | 16,894 | 8,110 | 17,841 |
2022 £m | 2021 £m | 2020 £m | |
Depreciation and amortisation | 2,348 | 2,777 | 2,670 |
Revaluation of investment properties | – | – | 20 |
Allowance for loan losses | 1,335 | (1,085) | 3,802 |
Write-off of allowance for loan losses, net of recoveries | (759) | (935) | (1,279) |
Impairment charge (credit) relating to undrawn balances | 111 | (231) | 253 |
Impairment of financial assets at fair value through other comprehensive income | 6 | (2) | 5 |
Regulatory and legal provisions | 225 | 1,177 | 414 |
Other provision movements | (134) | (82) | 80 |
Net charge in respect of defined benefit schemes | 125 | 236 | 247 |
Foreign exchange impact on balance sheet1 | 30 | 159 | 823 |
Interest expense on subordinated liabilities | 377 | 570 | 846 |
Other non-cash items | (673) | (1,173) | (1,216) |
Total non-cash items | 2,991 | 1,411 | 6,665 |
Contributions to defined benefit schemes | (2,533) | (1,347) | (1,153) |
Payments in respect of regulatory and legal provisions | (587) | (680) | (2,165) |
Other | – | (45) | 137 |
Total other items | (3,120) | (2,072) | (3,181) |
Non-cash and other items | (129) | (661) | 3,484 |
2022 £m | 20211 £m | 20201 £m | |||
Cash and balances at central banks | 72,005 | 54,279 | 49,888 | ||
Less mandatory reserve deposits2 | (1,935) | (2,007) | (1,736) | ||
70,070 | 52,272 | 48,152 | |||
Loans and advances to banks and reverse repurchase agreements | 11,913 | 7,474 | 5,950 | ||
Less amounts with a maturity of three months or more | (6,782) | (3,786) | (2,480) | ||
5,131 | 3,688 | 3,470 | |||
Total cash and cash equivalents | 75,201 | 55,960 | 51,622 |
Note | 2022 £ million | 2021 £ million | |||
Assets | |||||
Cash and balances at central banks | 66,783 | 49,618 | |||
Items in the course of collection from banks | 182 | 99 | |||
Financial assets at fair value through profit or loss | 3 | 4,994 | 4,529 | ||
Derivative financial instruments | 4 | 7,793 | 6,898 | ||
Loans and advances to banks | 7,984 | 4,291 | |||
Loans and advances to customers | 113,948 | 116,716 | |||
Reverse repurchase agreements | 39,259 | 49,708 | |||
Debt securities | 6,471 | 3,756 | |||
Due from fellow Lloyds Banking Group undertakings | 119,282 | 108,424 | |||
Financial assets at amortised cost | 5 | 286,944 | 282,895 | ||
Financial assets at fair value through other comprehensive income | 7 | 22,675 | 25,529 | ||
Other intangible assets | 8 | 3,698 | 3,096 | ||
Current tax recoverable | 312 | 245 | |||
Deferred tax assets | 14 | 3,556 | 2,434 | ||
Investment in subsidiary undertakings | 9 | 31,197 | 30,588 | ||
Retirement benefit assets | 16 | 2,075 | 2,420 | ||
Other assets | 10 | 3,086 | 3,473 | ||
Total assets | 433,295 | 411,824 | |||
Liabilities | |||||
Deposits from banks | 4,465 | 2,768 | |||
Customer deposits | 269,473 | 268,683 | |||
Repurchase agreements at amortised cost | 18,380 | 78 | |||
Due to fellow Lloyds Banking Group undertakings | 20,342 | 22,872 | |||
Items in the course of transmission to banks | 238 | 207 | |||
Financial liabilities at fair value through profit or loss | 12 | 9,244 | 9,821 | ||
Derivative financial instruments | 4 | 10,347 | 6,102 | ||
Debt securities in issue | 13 | 39,819 | 38,439 | ||
Other liabilities | 15 | 3,260 | 3,128 | ||
Retirement benefit obligations | 16 | 50 | 101 | ||
Other provisions | 744 | 771 | |||
Subordinated liabilities | 17 | 5,920 | 7,907 | ||
Total liabilities | 382,282 | 360,877 | |||
Equity | |||||
Share capital | 18 | 1,574 | 1,574 | ||
Share premium account | 18 | 600 | 600 | ||
Other reserves | 19 | (1,734) | 824 | ||
Retained profits1 | 20 | 46,305 | 43,681 | ||
Shareholders’ equity | 46,745 | 46,679 | |||
Other equity instruments | 18 | 4,268 | 4,268 | ||
Total equity | 51,013 | 50,947 | |||
Total equity and liabilities | 433,295 | 411,824 |
Robin Budenberg | Charlie Nunn | William Chalmers |
Chair | Chief Executive | Chief Financial Officer |
Attributable to ordinary shareholders | |||||||||||
Share capital and premium £ million | Other reserves £ million | Retained profits £ million | Total £ million | Other equity instruments £ million | Total £ million | ||||||
At 1 January 2022 | 2,174 | 824 | 43,681 | 46,679 | 4,268 | 50,947 | |||||
Comprehensive income | |||||||||||
Profit for the year | – | – | 3,276 | 3,276 | 241 | 3,517 | |||||
Other comprehensive income | |||||||||||
Post-retirement defined benefit scheme remeasurements, net of tax | – | – | (1,232) | (1,232) | – | (1,232) | |||||
Movements in revaluation reserve in respect of financial assets held at fair value through other comprehensive income, net of tax: | |||||||||||
Debt securities | – | (109) | – | (109) | – | (109) | |||||
Equity shares | – | (1) | – | (1) | – | (1) | |||||
Gains and losses attributable to own credit risk, net of tax | – | – | 364 | 364 | – | 364 | |||||
Movements in cash flow hedging reserve, net of tax | – | (2,452) | – | (2,452) | – | (2,452) | |||||
Movements in foreign currency translation reserve, net of tax | – | 3 | – | 3 | – | 3 | |||||
Total other comprehensive (loss) income | – | (2,559) | (868) | (3,427) | – | (3,427) | |||||
Total comprehensive (loss) income1,2 | – | (2,559) | 2,408 | (151) | 241 | 90 | |||||
Transactions with owners | |||||||||||
Distributions on other equity instruments | – | – | – | – | (241) | (241) | |||||
Capital contributions received | – | – | 221 | 221 | – | 221 | |||||
Return of capital contributions | – | – | (4) | (4) | – | (4) | |||||
Total transactions with owners | – | – | 217 | 217 | (241) | (24) | |||||
Realised gains and losses on equity shares held at fair value through other comprehensive income | – | 1 | (1) | – | – | – | |||||
At 31 December 2022 | 2,174 | (1,734) | 46,305 | 46,745 | 4,268 | 51,013 | |||||
Attributable to ordinary shareholders | |||||||||||
Share capital and premium £ million | Other reserves £ million | Retained profits £ million | Total £ million | Other equity instruments £ million | Total £ million | ||||||
At 1 January 2020 | 2,174 | 1,710 | 42,470 | 46,354 | 4,865 | 51,219 | |||||
Comprehensive income | |||||||||||
Profit for the year | – | – | 224 | 224 | 417 | 641 | |||||
Other comprehensive income | |||||||||||
Post-retirement defined benefit scheme remeasurements, net of tax | – | – | (102) | (102) | – | (102) | |||||
Movements in revaluation reserve in respect of financial assets held at fair value through other comprehensive income, net of tax: | |||||||||||
Debt securities | – | (89) | – | (89) | – | (89) | |||||
Equity shares | – | 4 | – | 4 | – | 4 | |||||
Gains and losses attributable to own credit risk, net of tax | – | – | (55) | (55) | – | (55) | |||||
Movements in cash flow hedging reserve, net of tax | – | (240) | – | (240) | – | (240) | |||||
Movements in foreign currency translation reserve, net of tax | – | 1 | – | 1 | – | 1 | |||||
Total other comprehensive (loss) income | – | (324) | (157) | (481) | – | (481) | |||||
Total comprehensive (loss) income1 | – | (324) | 67 | (257) | 417 | 160 | |||||
Transactions with owners | |||||||||||
Distributions on other equity instruments | – | – | – | – | (417) | (417) | |||||
Issue of other equity instruments | – | – | – | – | 1,070 | 1,070 | |||||
Capital contributions received | – | – | 140 | 140 | – | 140 | |||||
Return of capital contributions | – | – | (4) | (4) | – | (4) | |||||
Total transactions with owners | – | – | 136 | 136 | 653 | 789 | |||||
Realised gains and losses on equity shares held at fair value through other comprehensive income | – | (4) | 4 | – | – | – | |||||
At 31 December 2020 | 2,174 | 1,382 | 42,677 | 46,233 | 5,935 | 52,168 | |||||
Comprehensive income | |||||||||||
Profit for the year | – | – | 3,249 | 3,249 | 344 | 3,593 | |||||
Other comprehensive income | |||||||||||
Post-retirement defined benefit scheme remeasurements, net of tax | – | – | 556 | 556 | – | 556 | |||||
Movements in revaluation reserve in respect of financial assets held at fair value through other comprehensive income, net of tax: | |||||||||||
Debt securities | – | 91 | – | 91 | – | 91 | |||||
Equity shares | – | 1 | – | 1 | – | 1 | |||||
Gains and losses attributable to own credit risk, net of tax | – | – | (52) | (52) | – | (52) | |||||
Movements in cash flow hedging reserve, net of tax | – | (647) | – | (647) | – | (647) | |||||
Movements in foreign currency translation reserve, net of tax | – | (2) | – | (2) | – | (2) | |||||
Total other comprehensive (loss) income | – | (557) | 504 | (53) | – | (53) | |||||
Total comprehensive (loss) income1 | – | (557) | 3,753 | 3,196 | 344 | 3,540 | |||||
Transactions with owners | |||||||||||
Dividends | – | – | (2,900) | (2,900) | – | (2,900) | |||||
Distributions on other equity instruments | – | – | – | – | (344) | (344) | |||||
Issue of other equity instruments | – | – | (1) | (1) | 1,550 | 1,549 | |||||
Repurchases and redemptions of other equity instruments | – | – | (9) | (9) | (3,217) | (3,226) | |||||
Capital contributions received | – | – | 164 | 164 | – | 164 | |||||
Return of capital contributions | – | – | (4) | (4) | – | (4) | |||||
Total transactions with owners | – | – | (2,750) | (2,750) | (2,011) | (4,761) | |||||
Realised gains and losses on equity shares held at fair value through other comprehensive income | – | (1) | 1 | – | – | – | |||||
At 31 December 2021 | 2,174 | 824 | 43,681 | 46,679 | 4,268 | 50,947 | |||||
Note | 2022 £ million | 2021 £ million | 2020 £ million | ||||
Cash flows from operating activities | |||||||
Profit before tax | 4,107 | 3,301 | 444 | ||||
Adjustments for: | |||||||
Change in operating assets | 26 (A) | (5,368) | 38,804 | 71,662 | |||
Change in operating liabilities | 26 (B) | 22,262 | (28,015) | (61,993) | |||
Non-cash and other items | 26 (C) | (2,817) | (2,059) | 1,820 | |||
Tax paid (net) | (243) | (11) | (194) | ||||
Net cash provided by operating activities | 17,941 | 12,020 | 11,739 | ||||
Cash flows from investing activities | |||||||
Purchase of financial assets | (9,563) | (8,775) | (7,793) | ||||
Proceeds from sale and maturity of financial assets | 10,641 | 7,730 | 5,599 | ||||
Purchase of fixed assets | (1,674) | (1,255) | (1,186) | ||||
Proceeds from sale of fixed assets | 3 | 5 | 12 | ||||
Additional capital injections to subsidiaries | (600) | (11) | (1,055) | ||||
Dividends received from subsidiaries | 1,850 | 1,391 | 44 | ||||
Distributions on other equity instruments received | 125 | 112 | 167 | ||||
Capital repayments and redemptions | 32 | 2,576 | 1,801 | ||||
Disposal of businesses, net of cash disposed | 5 | – | – | ||||
Net cash provided by (used in) investing activities | 819 | 1,773 | (2,411) | ||||
Cash flows from financing activities | |||||||
Dividends paid to ordinary shareholders | – | (2,900) | – | ||||
Distributions on other equity instruments | (241) | (344) | (417) | ||||
Return of capital contributions | (4) | (4) | (4) | ||||
Interest paid on subordinated liabilities | (290) | (423) | (759) | ||||
Proceeds from issue of subordinated liabilities | 837 | 3,262 | 496 | ||||
Proceeds from issue of other equity instruments | – | 1,549 | 1,070 | ||||
Repayment of subordinated liabilities | (2,156) | (3,049) | (2,726) | ||||
Repurchases and redemptions of other equity instruments | – | (3,226) | – | ||||
Borrowings from parent company | 1,852 | 543 | 4,799 | ||||
Repayments of borrowings to parent company | – | (4,813) | (1,403) | ||||
Interest paid on borrowings from parent company | (200) | (226) | (98) | ||||
Net cash (used in) provided by financing activities | (202) | (9,631) | 958 | ||||
Effects of exchange rate changes on cash and cash equivalents | 1 | – | – | ||||
Change in cash and cash equivalents | 18,559 | 4,162 | 10,286 | ||||
Cash and cash equivalents at beginning of year | 52,230 | 48,068 | 37,782 | ||||
Cash and cash equivalents at end of year | 26 (D) | 70,789 | 52,230 | 48,068 | |||
Critical judgements: | Determining an appropriate definition of default against which a probability of default, exposure at default and loss given default parameter can be evaluated |
Establishing the criteria for a significant increase in credit risk (SICR) | |
The use of management judgement alongside impairment modelling processes to adjust inputs, parameters and outputs to reflect risks not captured by models | |
Key source of estimation uncertainty: | Base case and multiple economic scenarios (MES) assumptions, including the rate of unemployment and the rate of change of house prices, required for creation of MES scenarios and forward-looking credit parameters |
Critical judgement: | Determination of an appropriate yield curve |
Key sources of estimation uncertainty: | Discount rate applied to future cash flows |
Expected lifetime of the schemes’ members | |
Expected rate of future inflationary increases |
Critical judgements: | Determining the scope of reviews required by regulators |
The impact of legal decisions that may be relevant to claims received | |
Determining whether a reliable estimate is available for obligations arising from past events | |
Key sources of estimation uncertainty: | The number of future complaints |
The proportion of complaints that will be upheld | |
The average cost of redress |
Key source of estimation uncertainty: | Interest rate spreads, earnings multiples and interest rate volatility |
Critical judgement: | Assessing future trading conditions that could affect the Bank’s business operations |
Key source of estimation uncertainty: | Estimated useful life of internally generated capitalised software |
2022 £m | 2021 £m | |
Loans and advances to customers | 798 | 1,121 |
Corporate and other debt securities | 4,192 | 3,404 |
Equity shares | 4 | 4 |
Total | 4,994 | 4,529 |
2022 | 2021 | ||||||||||
Contract/ notional amount £m | Fair value assets £m | Fair value liabilities £m | Contract/ notional amount £m | Fair value assets £m | Fair value liabilities £m | ||||||
Trading and other | |||||||||||
Exchange rate contracts: | |||||||||||
Spot, forwards and futures | 17,524 | 243 | 369 | 12,235 | 143 | 158 | |||||
Currency swaps | 100,653 | 1,608 | 1,710 | 158,448 | 965 | 625 | |||||
Options purchased | 30 | 1 | – | 5 | – | – | |||||
Options written | 30 | – | 1 | 5 | – | – | |||||
118,237 | 1,852 | 2,080 | 170,693 | 1,108 | 783 | ||||||
Interest rate contracts: | |||||||||||
Interest rate swaps | 1,452,104 | 5,817 | 7,683 | 1,160,782 | 5,710 | 4,897 | |||||
Forward rate agreements | – | – | – | 21 | – | – | |||||
Options purchased | 1,892 | 59 | – | 2,138 | 20 | – | |||||
Options written | 1,756 | – | 59 | 1,220 | – | 10 | |||||
1,455,752 | 5,876 | 7,742 | 1,164,161 | 5,730 | 4,907 | ||||||
Credit derivatives | 3,323 | 58 | 27 | 4,439 | 23 | 102 | |||||
Equity and other contracts | 1 | 1 | – | – | – | – | |||||
Total derivative assets/liabilities - trading and other | 1,577,313 | 7,787 | 9,849 | 1,339,293 | 6,861 | 5,792 | |||||
Hedging | |||||||||||
Derivatives designated as fair value hedges: | |||||||||||
Interest rate swaps | 50,425 | – | 497 | 56,698 | 22 | 307 | |||||
Currency swaps | 35 | 1 | – | 34 | 7 | – | |||||
50,460 | 1 | 497 | 56,732 | 29 | 307 | ||||||
Derivatives designated as cash flow hedges: | |||||||||||
Interest rate swaps | 47,621 | – | – | 26,876 | – | – | |||||
Exchange rate forward rate agreements | 85 | 5 | 1 | 415 | 8 | 3 | |||||
47,706 | 5 | 1 | 27,291 | 8 | 3 | ||||||
Total derivative assets/liabilities - hedging | 98,166 | 6 | 498 | 84,023 | 37 | 310 | |||||
Total recognised derivative assets/liabilities | 1,675,479 | 7,793 | 10,347 | 1,423,316 | 6,898 | 6,102 | |||||
Maturity | |||||||||||
At 31 December 2022 | Up to 1 month £m | 1–3 months £m | 3–12 months £m | 1–5 years £m | Over 5 years £m | Total £m | |||||
Fair value hedges | |||||||||||
Interest rate | |||||||||||
Cross currency swap | |||||||||||
Notional | – | – | – | – | 35 | 35 | |||||
Average fixed interest rate | – | – | – | – | 1.28% | ||||||
Average EUR/GBP exchange rate | – | – | – | – | 1.38 | ||||||
Interest rate swap | |||||||||||
Notional | 796 | 486 | 4,314 | 23,553 | 21,276 | 50,425 | |||||
Average fixed interest rate | 3.20% | 2.15% | 0.66% | 1.90% | 1.43% | ||||||
Cash flow hedges | |||||||||||
Foreign exchange | |||||||||||
Currency swap | |||||||||||
Notional | – | 21 | 52 | 12 | – | 85 | |||||
Average EUR/GBP exchange rate | – | – | – | – | – | ||||||
Average USD/GBP exchange rate | 1.22 | 1.23 | 1.28 | 1.27 | – | ||||||
Interest rate | |||||||||||
Interest rate swap | |||||||||||
Notional | 15 | 9,549 | 91 | 17,008 | 20,958 | 47,621 | |||||
Average fixed interest rate | 3.29% | 1.62% | 3.74% | 1.39% | 1.09% | ||||||
Maturity | |||||||||||
At 31 December 2021 | Up to 1 month £m | 1–3 months £m | 3–12 months £m | 1–5 years £m | Over 5 years £m | Total £m | |||||
Fair value hedges | |||||||||||
Interest rate | |||||||||||
Cross currency swap | |||||||||||
Notional | – | – | – | – | 34 | 34 | |||||
Average fixed interest rate | – | – | – | – | 1.28% | ||||||
Average EUR/GBP exchange rate | – | – | – | – | 1.38 | ||||||
Interest rate swap | |||||||||||
Notional | 189 | 1,656 | 5,271 | 25,525 | 24,057 | 56,698 | |||||
Average fixed interest rate | 1.67% | 2.09% | 1.71% | 1.65% | 1.83% | ||||||
Cash flow hedges | |||||||||||
Foreign exchange | |||||||||||
Currency swap | |||||||||||
Notional | 24 | 33 | 301 | 57 | – | 415 | |||||
Average EUR/GBP exchange rate | – | – | 1.16 | 1.16 | – | ||||||
Average USD/GBP exchange rate | 1.36 | 1.35 | 1.37 | 1.33 | – | ||||||
Interest rate | |||||||||||
Interest rate swap | |||||||||||
Notional | – | – | 8,571 | 10,115 | 8,190 | 26,876 | |||||
Average fixed interest rate | – | – | 0.56% | 0.96% | 0.74% | ||||||
Carrying amount of the hedging instrument | ||||
At 31 December 2022 | Contract/ notional amount £m | Assets £m | Liabilities £m | Changes in fair value used for calculating hedge ineffectiveness £m |
Fair value hedges | ||||
Interest rate | ||||
Currency swaps | 35 | 1 | – | (2) |
Interest rate swaps | 50,425 | – | 497 | (76) |
Cash flow hedges | ||||
Foreign exchange | ||||
Currency swaps | 85 | 5 | 1 | 26 |
Interest rate | ||||
Interest rate swaps | 47,621 | – | – | (2,688) |
Carrying amount of the hedging instrument | ||||
At 31 December 2021 | Contract/ notional amount £m | Assets £m | Liabilities £m | Changes in fair value used for calculating hedge ineffectiveness £m |
Fair value hedges | ||||
Interest rate | ||||
Currency swaps | 34 | 7 | – | (2) |
Interest rate swaps | 56,698 | 22 | 307 | (294) |
Cash flow hedges | ||||
Foreign exchange | ||||
Currency swaps | 415 | 8 | 3 | (2) |
Interest rate | ||||
Interest rate swaps | 26,876 | – | – | (548) |
Carrying amount of the hedged item | Accumulated amount of fair value adjustment on the hedged item | Change in fair value of hedged item for ineffectiveness assessment £m | Cash flow hedging reserve | ||||||||||
Continuing hedges £m | Discontinued hedges £m | ||||||||||||
At 31 December 2022 | Assets £m | Liabilities £m | Assets £m | Liabilities £m | |||||||||
Fair value hedges | |||||||||||||
Interest rate | |||||||||||||
Fixed rate issuance1 | – | 22,971 | – | 2,353 | 2,359 | ||||||||
Fixed rate bonds2 | 19,259 | – | (1,549) | – | (2,326) | ||||||||
Cash flow hedges | |||||||||||||
Foreign exchange | |||||||||||||
Foreign currency issuance1 | (26) | (1) | 15 | ||||||||||
Interest rate | |||||||||||||
Customer loans3 | 1,490 | (868) | (246) | ||||||||||
Central bank balances4 | 1,347 | (436) | (904) | ||||||||||
Customer deposits5 | (54) | 59 | (24) | ||||||||||
Carrying amount of the hedged item | Accumulated amount of fair value adjustment on the hedged item | Change in fair value of hedged item for ineffectiveness assessment £m | Cash flow hedging reserve | ||||||||||
Continuing hedges £m | Discontinued hedges £m | ||||||||||||
At 31 December 2021 | Assets £m | Liabilities £m | Assets £m | Liabilities £m | |||||||||
Fair value hedges | |||||||||||||
Interest rate | |||||||||||||
Fixed rate issuance1 | – | 28,870 | – | 65 | 1,018 | ||||||||
Fixed rate bonds2 | 24,358 | – | 344 | – | (736) | ||||||||
Cash flow hedges | |||||||||||||
Foreign exchange | |||||||||||||
Foreign currency issuance1 | 2 | (12) | (2) | ||||||||||
Interest rate | |||||||||||||
Customer loans3 | 510 | (117) | 1,014 | ||||||||||
Central bank balances4 | – | – | 211 | ||||||||||
Customer deposits5 | (42) | 10 | (67) | ||||||||||
Gain (loss) recognised in other comprehensive income £m | Hedge ineffectiveness recognised in the income statement1 £m | Amounts reclassified from reserves to income statement as: | ||||||
At 31 December 2022 | Hedged cash flows will no longer occur £m | Hedged item affected income statement £m | Income statement line item that includes reclassified amount | |||||
Fair value hedges | ||||||||
Interest rate | ||||||||
Fixed rate issuance | (31) | |||||||
Fixed rate bonds | (14) | |||||||
Cash flow hedges | ||||||||
Foreign exchange | ||||||||
Foreign currency issuance | 26 | – | – | 1 | Interest expense | |||
Interest rate | ||||||||
Customer loans | (1,848) | (36) | – | (162) | Interest income | |||
Central bank balances | (1,354) | – | – | (196) | Interest income | |||
Customer deposits | 87 | 4 | – | 5 | Interest expense | |||
Gain (loss) recognised in other comprehensive income £m | Hedge ineffectiveness recognised in the income statement1 £m | Amounts reclassified from reserves to income statement as: | ||||||
At 31 December 2021 | Hedged cash flows will no longer occur £m | Hedged item affected income statement £m | Income statement line item that includes reclassified amount | |||||
Fair value hedges | ||||||||
Interest rate | ||||||||
Fixed rate issuance | (7) | |||||||
Fixed rate bonds | (7) | |||||||
Cash flow hedges | ||||||||
Foreign exchange | ||||||||
Foreign currency issuance | (3) | – | – | 21 | Interest expense | |||
Interest rate | ||||||||
Customer loans | (546) | (26) | – | (325) | Interest income | |||
Central bank balances | – | – | – | (113) | Interest income | |||
Customer deposits | 111 | 2 | – | 18 | Interest expense | |||
Gross carrying amount | Allowance for expected credit losses | ||||||||||||||
Stage 1 £m | Stage 2 £m | Stage 3 £m | Total £m | Stage 1 £m | Stage 2 £m | Stage 3 £m | Total £m | ||||||||
Loans and advances to banks | |||||||||||||||
At 1 January 2022 | 4,291 | – | – | 4,291 | – | – | – | – | |||||||
Exchange and other adjustments | 417 | – | – | 417 | – | – | – | – | |||||||
Transfers to Stage 2 | (2) | 2 | – | – | – | – | – | – | |||||||
Impact of transfers between stages | (2) | 2 | – | – | – | – | – | – | |||||||
– | – | – | – | ||||||||||||
Additions and repayments | 3,284 | 1 | – | 3,285 | 2 | – | – | 2 | |||||||
Other changes in credit quality | 7 | – | – | 7 | |||||||||||
Charge to the income statement | 9 | – | – | 9 | |||||||||||
At 31 December 2022 | 7,990 | 3 | – | 7,993 | 9 | – | – | 9 | |||||||
Allowance for impairment losses | (9) | – | – | (9) | |||||||||||
Net carrying amount | 7,981 | 3 | – | 7,984 | |||||||||||
Loans and advances to customers | |||||||||||||||
At 1 January 2022 | 103,110 | 12,084 | 2,698 | 117,892 | 358 | 404 | 414 | 1,176 | |||||||
Exchange and other adjustments1 | 476 | (4) | (23) | 449 | – | – | (11) | (11) | |||||||
Transfers to Stage 1 | 3,024 | (2,998) | (26) | – | 81 | (76) | (5) | – | |||||||
Transfers to Stage 2 | (9,988) | 10,187 | (199) | – | (24) | 47 | (23) | – | |||||||
Transfers to Stage 3 | (645) | (893) | 1,538 | – | (4) | (52) | 56 | – | |||||||
Impact of transfers between stages | (7,609) | 6,296 | 1,313 | – | (55) | 242 | 81 | 268 | |||||||
(2) | 161 | 109 | 268 | ||||||||||||
Other changes in credit quality | (123) | 44 | 281 | 202 | |||||||||||
Additions and repayments | (1,125) | (860) | (690) | (2,675) | 57 | 77 | (19) | 115 | |||||||
Methodology and model changes | 3 | 12 | (47) | (32) | |||||||||||
Charge (credit) to the income statement | (65) | 294 | 324 | 553 | |||||||||||
Advances written off | (390) | (390) | (390) | (390) | |||||||||||
Recoveries of advances written off in previous years | 44 | 44 | 44 | 44 | |||||||||||
At 31 December 2022 | 94,852 | 17,516 | 2,952 | 115,320 | 293 | 698 | 381 | 1,372 | |||||||
Allowance for impairment losses | (293) | (698) | (381) | (1,372) | |||||||||||
Net carrying amount | 94,559 | 16,818 | 2,571 | 113,948 | |||||||||||
Drawn ECL coverage2 (%) | 0.3 | 4.0 | 12.9 | 1.2 | |||||||||||
Reverse repurchase agreements | |||||||||||||||
At 31 December 2022 | 39,259 | – | – | 39,259 | |||||||||||
Allowance for impairment losses | – | – | – | – | |||||||||||
Net carrying amount | 39,259 | – | – | 39,259 | |||||||||||
Gross carrying amount | Allowance for expected credit losses | ||||||||||||||
Stage 1 £m | Stage 2 £m | Stage 3 £m | Total £m | Stage 1 £m | Stage 2 £m | Stage 3 £m | Total £m | ||||||||
Debt securities | |||||||||||||||
At 1 January 2022 | 3,756 | – | – | 3,756 | – | – | – | – | |||||||
Exchange and other adjustments | 179 | – | – | 179 | – | – | – | – | |||||||
– | – | – | – | ||||||||||||
Other changes in credit quality | 2 | – | – | 2 | |||||||||||
Additions and repayments | 2,541 | – | – | 2,541 | 3 | – | – | 3 | |||||||
Charge to the income statement | 5 | – | – | 5 | |||||||||||
At 31 December 2022 | 6,476 | – | – | 6,476 | 5 | – | – | 5 | |||||||
Allowance for impairment losses | (5) | – | – | (5) | |||||||||||
Net carrying amount | 6,471 | – | – | 6,471 | |||||||||||
Due from fellow Lloyds Banking Group undertakings | |||||||||||||||
At 31 December 2022 | 119,402 | – | – | 119,402 | |||||||||||
Allowance for impairment losses | (120) | – | – | (120) | |||||||||||
Net carrying amount | 119,282 | – | – | 119,282 | |||||||||||
Total financial assets at amortised cost | 267,552 | 16,821 | 2,571 | 286,944 | |||||||||||
Allowance for expected credit losses | |||||||||||||||
Stage 1 £m | Stage 2 £m | Stage 3 £m | Total £m | ||||||||||||
Undrawn balances | |||||||||||||||
At 1 January 2022 | 57 | 53 | 4 | 114 | |||||||||||
Exchange and other adjustments | – | – | (1) | (1) | |||||||||||
Transfers to Stage 1 | 10 | (10) | – | – | |||||||||||
Transfers to Stage 2 | (5) | 5 | – | – | |||||||||||
Transfers to Stage 3 | (1) | (1) | 2 | – | |||||||||||
Impact of transfers between stages | (8) | 51 | (1) | 42 | |||||||||||
(4) | 45 | 1 | 42 | ||||||||||||
Other items taken to the income statement | 15 | 18 | (2) | 31 | |||||||||||
Credit to the income statement | 11 | 63 | (1) | 73 | |||||||||||
At 31 December 2022 | 68 | 116 | 2 | 186 | |||||||||||
Allowance for expected credit losses | |||||||||||||||
Stage 1 £m | Stage 2 £m | Stage 3 £m | Total £m | ||||||||||||
In respect of: | |||||||||||||||
Loans and advances to banks | 9 | – | – | 9 | |||||||||||
Loans and advances to customers | 293 | 698 | 381 | 1,372 | |||||||||||
Debt securities | 5 | – | – | 5 | |||||||||||
Due from fellow Lloyds Banking Group undertakings | 120 | – | – | 120 | |||||||||||
Financial assets at amortised cost | 427 | 698 | 381 | 1,506 | |||||||||||
Provisions in relation to loan commitments and financial guarantees | 68 | 116 | 2 | 186 | |||||||||||
Total | 495 | 814 | 383 | 1,692 | |||||||||||
Expected credit loss in respect of financial assets at fair value through other comprehensive income (memorandum item) | 8 | – | – | 8 | |||||||||||
Gross carrying amount | Allowance for expected credit losses | ||||||||||||||
Stage 1 £m | Stage 2 £m | Stage 3 £m | Total £m | Stage 1 £m | Stage 2 £m | Stage 3 £m | Total £m | ||||||||
Loans and advances to banks | |||||||||||||||
At 1 January 2021 | 4,034 | – | – | 4,034 | 4 | – | – | 4 | |||||||
Exchange and other adjustments | 20 | – | – | 20 | – | – | – | – | |||||||
Other changes in credit quality | (3) | – | – | (3) | |||||||||||
Additions and repayments | 237 | – | – | 237 | (1) | – | – | (1) | |||||||
Credit to the income statement | (4) | – | – | (4) | |||||||||||
At 31 December 2021 | 4,291 | – | – | 4,291 | – | – | – | – | |||||||
Allowance for impairment losses | – | – | – | – | |||||||||||
Net carrying amount | 4,291 | – | – | 4,291 | |||||||||||
Loans and advances to customers | |||||||||||||||
At 1 January 2021 | 101,742 | 21,494 | 2,867 | 126,103 | 589 | 974 | 718 | 2,281 | |||||||
Exchange and other adjustments1 | (123) | (12) | (45) | (180) | (1) | – | (10) | (11) | |||||||
Transfers to Stage 1 | 8,555 | (8,529) | (26) | – | 273 | (267) | (6) | – | |||||||
Transfers to Stage 2 | (4,514) | 4,834 | (320) | – | (14) | 61 | (47) | – | |||||||
Transfers to Stage 3 | (416) | (651) | 1,067 | – | (7) | (89) | 96 | – | |||||||
Impact of transfers between stages | 3,625 | (4,346) | 721 | – | (224) | 43 | 62 | (119) | |||||||
28 | (252) | 105 | (119) | ||||||||||||
Other changes in credit quality | (107) | (125) | 59 | (173) | |||||||||||
Additions and repayments | (2,134) | (5,052) | (403) | (7,589) | (88) | (208) | (22) | (318) | |||||||
Methodology and model changes | (63) | 15 | 6 | (42) | |||||||||||
(Credit) charge to the income statement | (230) | (570) | 148 | (652) | |||||||||||
Advances written off | (490) | (490) | (490) | (490) | |||||||||||
Recoveries of advances written off in previous years | 48 | 48 | 48 | 48 | |||||||||||
At 31 December 2021 | 103,110 | 12,084 | 2,698 | 117,892 | 358 | 404 | 414 | 1,176 | |||||||
Allowance for impairment losses | (358) | (404) | (414) | (1,176) | |||||||||||
Net carrying amount | 102,752 | 11,680 | 2,284 | 116,716 | |||||||||||
Drawn ECL coverage (%) | 0.3 | 3.3 | 15.3 | 1.0 | |||||||||||
Reverse repurchase agreements | |||||||||||||||
At 31 December 2021 | 49,708 | – | – | 49,708 | |||||||||||
Allowance for impairment losses | – | – | – | – | |||||||||||
Net carrying amount | 49,708 | – | – | 49,708 | |||||||||||
Gross carrying amount | Allowance for expected credit losses | ||||||||||||||
Stage 1 £m | Stage 2 £m | Stage 3 £m | Total £m | Stage 1 £m | Stage 2 £m | Stage 3 £m | Total £m | ||||||||
Debt securities | |||||||||||||||
At 1 January 2021 | 4,316 | – | – | 4,316 | 1 | – | – | 1 | |||||||
Exchange and other adjustments | 12 | – | – | 12 | (1) | – | – | (1) | |||||||
Additions and repayments | (572) | – | – | (572) | – | – | – | – | |||||||
At 31 December 2021 | 3,756 | – | – | 3,756 | – | – | – | – | |||||||
Allowance for impairment losses | – | – | – | – | |||||||||||
Net carrying amount | 3,756 | – | – | 3,756 | |||||||||||
Due from fellow Lloyds Banking Group undertakings | |||||||||||||||
At 31 December 2021 | 108,445 | – | – | 108,445 | |||||||||||
Allowance for impairment losses | (21) | – | – | (21) | |||||||||||
Net carrying amount | 108,424 | – | – | 108,424 | |||||||||||
Total financial assets at amortised cost | 268,931 | 11,680 | 2,284 | 282,895 | |||||||||||
Allowance for expected credit losses | |||||||||||||||
Stage 1 £m | Stage 2 £m | Stage 3 £m | Total £m | ||||||||||||
Undrawn balances | |||||||||||||||
At 1 January 2021 | 102 | 135 | 8 | 245 | |||||||||||
Exchange and other adjustments | – | 3 | – | 3 | |||||||||||
Transfers to Stage 1 | 46 | (46) | – | – | |||||||||||
Transfers to Stage 2 | (4) | 4 | – | – | |||||||||||
Transfers to Stage 3 | (1) | (3) | 4 | – | |||||||||||
Impact of transfers between stages | (41) | 9 | (2) | (34) | |||||||||||
– | (36) | 2 | (34) | ||||||||||||
Other items taken to the income statement | (45) | (49) | (6) | (100) | |||||||||||
Charge to the income statement | (45) | (85) | (4) | (134) | |||||||||||
At 31 December 2021 | 57 | 53 | 4 | 114 | |||||||||||
Allowance for expected credit losses | |||||||||||||||
Stage 1 £m | Stage 2 £m | Stage 3 £m | Total £m | ||||||||||||
In respect of: | |||||||||||||||
Loans and advances to banks | – | – | – | – | |||||||||||
Loans and advances to customers | 358 | 404 | 414 | 1,176 | |||||||||||
Debt securities | – | – | – | – | |||||||||||
Due from fellow Lloyds Banking Group undertakings | 21 | – | – | 21 | |||||||||||
Financial assets at amortised cost | 379 | 404 | 414 | 1,197 | |||||||||||
Provisions in relation to loan commitments and financial guarantees | 57 | 53 | 4 | 114 | |||||||||||
Total | 436 | 457 | 418 | 1,311 | |||||||||||
Expected credit loss in respect of financial assets at fair value through other comprehensive income (memorandum item) | 2 | – | – | 2 | |||||||||||
Finance leases | Hire purchase | ||||
2022 £m | 2021 £m | 2022 £m | 2021 £m | ||
Not later than 1 year | 1 | 3 | 2,275 | 527 | |
Later than 1 year and not later than 2 years | 6 | 2 | 197 | 647 | |
Later than 2 years and not later than 3 years | – | 15 | 446 | 841 | |
Later than 3 years and not later than 4 years | – | – | 127 | 577 | |
Later than 4 years and not later than 5 years | – | – | 60 | 383 | |
Later than 5 years | – | – | 9 | 83 | |
Gross investment | 7 | 20 | 3,114 | 3,058 | |
Unearned future finance income | – | – | (52) | (46) | |
Rentals received in advance | – | – | (99) | (78) | |
Net investment | 7 | 20 | 2,963 | 2,934 | |
Finance leases | Hire purchase | ||||
2022 £m | 2021 £m | 2022 £m | 2021 £m | ||
Not later than 1 year | 1 | 3 | 2,161 | 435 | |
Later than 1 year and not later than 2 years | 6 | 2 | 182 | 634 | |
Later than 2 years and not later than 3 years | – | 15 | 435 | 832 | |
Later than 3 years and not later than 4 years | – | – | 121 | 572 | |
Later than 4 years and not later than 5 years | – | – | 55 | 379 | |
Later than 5 years | – | – | 9 | 82 | |
Net investment | 7 | 20 | 2,963 | 2,934 | |
2022 £m | 2021 £m | ||
Debt securities: | |||
Government securities | 11,077 | 14,445 | |
Asset-backed securities | 87 | – | |
Corporate and other debt securities | 11,511 | 11,084 | |
22,675 | 25,529 | ||
Total financial assets at fair value through other comprehensive income | 22,675 | 25,529 |
Capitalised software enhancements £m | |
Cost: | |
At 1 January 2021 | 5,131 |
Additions | 886 |
Disposals and write-offs | (321) |
At 31 December 2021 | 5,696 |
Additions | 1,335 |
Disposals | (152) |
At 31 December 2022 | 6,879 |
Accumulated amortisation: | |
At 1 January 2021 | 2,171 |
Exchange and other adjustments | – |
Charge for the year | 750 |
Disposals and write-offs | (321) |
At 31 December 2021 | 2,600 |
Exchange and other adjustments | (9) |
Charge for the year | 742 |
Disposals | (152) |
At 31 December 2022 | 3,181 |
Balance sheet amount at 31 December 2022 | 3,698 |
Balance sheet amount at 31 December 2021 | 3,096 |
2022 £m | 2021 £m | |
At 1 January | 30,588 | 33,353 |
Additions and capital injections | – | 11 |
Capital contributions | 1,875 | 36 |
Capital repayments | (32) | (2,576) |
Disposals | (1,234) | (236) |
At 31 December | 31,197 | 30,588 |
2022 £m | 2021 £m | ||
Property, plant and equipment: | |||
Premises | 466 | 509 | |
Equipment | 1,121 | 1,372 | |
Right-of-use assets (note 11) | 626 | 690 | |
2,213 | 2,571 | ||
Settlement balances | 52 | 51 | |
Prepayments | 575 | 488 | |
Other assets | 246 | 363 | |
Total other assets | 3,086 | 3,473 |
2022 £m | 2021 £m | |
At 1 January | 690 | 778 |
Exchange and other adjustments | – | (9) |
Additions | 80 | 54 |
Disposals | (12) | (4) |
Depreciation charge for the year | (132) | (129) |
At 31 December | 626 | 690 |
2022 £m | 2021 £m | ||
Liabilities designated at fair value through profit or loss: debt securities in issue | 9,244 | 9,821 |
2022 £m | 2021 £m | |
Senior unsecured notes issued | 16,683 | 19,916 |
Covered bonds | 13,485 | 15,809 |
Certificates of deposit issued | 1,607 | 290 |
Securitisation notes | 278 | 176 |
Commercial paper | 7,766 | 2,248 |
Total debt securities in issue | 39,819 | 38,439 |
Statutory position | 2022 £m | 2021 £m | Tax disclosure | 2022 £m | 2021 £m | |
Deferred tax assets | 3,556 | 2,434 | Deferred tax assets | 4,361 | 3,861 | |
Deferred tax liabilities | – | – | Deferred tax liabilities | (805) | (1,427) | |
Asset at 31 December | 3,556 | 2,434 | Asset at 31 December | 3,556 | 2,434 |
Deferred tax assets | Tax losses £m | Property, plant and equipment £m | Provisions £m | Share- based payments £m | Pension liabilities £m | Derivatives £m | Asset revaluations £m | Other temporary differences £m | Total £m |
At 1 January 2021 | 2,507 | 305 | 160 | 18 | 30 | – | – | 22 | 3,042 |
Credit (charge) to the income statement | 683 | 101 | 14 | (8) | 6 | – | – | (13) | 783 |
Credit to other comprehensive income | – | – | 36 | – | – | – | – | – | 36 |
At 31 December 2021 | 3,190 | 406 | 210 | 10 | 36 | – | – | 9 | 3,861 |
Credit (charge) to the income statement | (29) | (74) | 106 | (3) | (16) | (316) | 2 | 16 | (314) |
Credit (charge) to other comprehensive income | – | – | (155) | – | – | 989 | – | – | 834 |
At 31 December 2022 | 3,161 | 332 | 161 | 7 | 20 | 673 | 2 | 25 | 4,381 |
Deferred tax liabilities | Capitalised software enhancements £m | Pension assets £m | Derivatives £m | Asset revaluations1 £m | Other temporary differences £m | Total £m | |||
At 1 January 2021 | (212) | (207) | (505) | (5) | (4) | (933) | |||
Charge to the income statement | (44) | (8) | (1) | (1) | – | (54) | |||
(Charge) credit to other comprehensive income | – | (584) | 190 | (46) | – | (440) | |||
At 31 December 2021 | (256) | (799) | (316) | (52) | (4) | (1,427) | |||
(Charge) credit to the income statement | 110 | 19 | 316 | (1) | (94) | 350 | |||
Credit to other comprehensive income | – | 199 | – | 53 | – | 252 | |||
At 31 December 2022 | (146) | (581) | – | – | (98) | (825) | |||
2022 £m | 2021 £m | |
Settlement balances | 59 | 51 |
Lease liabilities | 706 | 777 |
Other creditors and accruals | 2,495 | 2,300 |
Total other liabilities | 3,260 | 3,128 |
2022 £m | 2021 £m | |
Amounts recognised in the balance sheet | ||
Retirement benefit assets | 2,075 | 2,420 |
Retirement benefit obligations | (50) | (101) |
Total amounts recognised in the balance sheet | 2,025 | 2,319 |
2022 £m | 2021 £m | |
Defined benefit pension schemes | 2,046 | 2,384 |
Other post-retirement benefit schemes | (21) | (65) |
Total amounts recognised in the balance sheet | 2,025 | 2,319 |
2022 £m | 2021 £m | |
Amount included in the balance sheet | ||
Present value of funded obligations | (18,485) | (29,222) |
Fair value of scheme assets | 20,531 | 31,606 |
Net amount recognised in the balance sheet | 2,046 | 2,384 |
2022 £m | 2021 £m | |
Net amount recognised in the balance sheet | ||
At 1 January | 2,384 | 727 |
Net defined benefit pension charge | (53) | (113) |
Actuarial gains on defined benefit obligation | 10,027 | 553 |
Return on plan assets | (11,919) | 397 |
Employer contributions | 1,605 | 821 |
Exchange and other adjustments | 2 | (1) |
At 31 December | 2,046 | 2,384 |
2022 £m | 2021 £m | |
Movements in the defined benefit obligation | ||
At 1 January | (29,222) | (30,597) |
Current service cost | (82) | (100) |
Interest expense | (560) | (435) |
Remeasurements: | ||
Actuarial losses – experience | (635) | (431) |
Actuarial gains (losses) – demographic assumptions | 178 | (82) |
Actuarial gains – financial assumptions | 10,484 | 1,066 |
Benefits paid | 1,369 | 1,361 |
Past service cost | (2) | (4) |
Settlements | – | 1 |
Exchange and other adjustments | (15) | (1) |
At 31 December | (18,485) | (29,222) |
2022 £m | 2021 £m | |
Analysis of the defined benefit obligation | ||
Active members | (1,730) | (3,085) |
Deferred members | (5,184) | (9,527) |
Pensioners | (10,618) | (15,238) |
Dependants | (953) | (1,372) |
At 31 December | (18,485) | (29,222) |
2022 £m | 2021 £m | |
Changes in the fair value of scheme assets | ||
At 1 January | 31,606 | 31,324 |
Return on plan assets excluding amounts included in interest income | (11,919) | 397 |
Interest income | 612 | 450 |
Employer contributions | 1,605 | 821 |
Benefits paid | (1,369) | (1,361) |
Settlements | – | (1) |
Administrative costs paid | (21) | (24) |
Exchange and other adjustments | 17 | – |
At 31 December | 20,531 | 31,606 |
2022 | 2021 | ||||||||||
Quoted £m | Unquoted £m | Total £m | Quoted £m | Unquoted £m | Total £m | ||||||
Equity instruments | 4 | 31 | 35 | 424 | 24 | 448 | |||||
Debt instruments1: | |||||||||||
Fixed interest government bonds | 1,527 | – | 1,527 | 4,346 | – | 4,346 | |||||
Index-linked government bonds | 8,527 | – | 8,527 | 14,407 | – | 14,407 | |||||
Corporate and other debt securities | 2,400 | – | 2,400 | 8,105 | – | 8,105 | |||||
12,454 | – | 12,454 | 26,858 | – | 26,858 | ||||||
Pooled investment vehicles | 267 | 12,888 | 13,155 | 800 | 8,942 | 9,742 | |||||
Money market instruments, cash, derivatives and other assets and liabilities | 325 | (5,438) | (5,113) | (154) | (5,288) | (5,442) | |||||
At 31 December | 13,050 | 7,481 | 20,531 | 27,928 | 3,678 | 31,606 | |||||
2022 £m | 2021 £m | |
Equity funds | 1,022 | 2,616 |
Hedge and mutual funds | 161 | 934 |
Alternative credit funds | 1,433 | 2,476 |
Property funds | 1,208 | 1,151 |
Infrastructure funds | 471 | 645 |
Liquidity funds | 8,564 | 1,488 |
Bond and debt funds | 296 | 432 |
At 31 December | 13,155 | 9,742 |
Effect of reasonably possible alternative assumptions | |||||
Increase (decrease) in the income statement charge | (Increase) decrease in the net defined benefit pension scheme surplus | ||||
2022 £m | 2021 £m | 2022 £m | 2021 £m | ||
Inflation (including pension increases)1: | |||||
Increase of 0.1 per cent | 9 | 7 | 167 | 309 | |
Decrease of 0.1 per cent | (8) | (7) | (159) | (306) | |
Discount rate2: | |||||
Increase of 0.1 per cent | (15) | (14) | (239) | (480) | |
Decrease of 0.1 per cent | 15 | 13 | 243 | 492 | |
Expected life expectancy of members: | |||||
Increase of one year | 26 | 27 | 505 | 1,253 | |
Decrease of one year | (26) | (26) | (517) | (1,200) | |
2022 Years | 2021 Years | |
Duration of the defined benefit obligation | 14 | 16 |
2022 £m | 2021 £m | |
Within 12 months | 994 | 940 |
Between 1 and 2 years | 1,021 | 1,013 |
Between 2 and 5 years | 3,217 | 3,188 |
Between 5 and 10 years | 5,985 | 6,029 |
Between 10 and 15 years | 5,923 | 6,170 |
Between 15 and 25 years | 10,706 | 11,499 |
Between 25 and 35 years | 7,273 | 7,925 |
Between 35 and 45 years | 3,053 | 3,485 |
In more than 45 years | 606 | 774 |
2022 £m | 2021 £m | |
At 1 January | (65) | (68) |
Actuarial gains | 44 | 1 |
Insurance premiums paid | 2 | 2 |
Charge for the year | (1) | (1) |
Exchange and other adjustments | (1) | 1 |
At 31 December | (21) | (65) |
Preferred securities £m | Undated £m | Dated £m | Total £m | ||||
At 1 January 2021 | 1,572 | 414 | 5,765 | 7,751 | |||
Issued in the year: | |||||||
3.916% Subordinated Fixed Rate Notes 2048 (US$1,500 million) | – | – | 1,074 | 1,074 | |||
3.724% Dated Subordinated Fixed Rate Reset notes 2041 (£500 million) | – | – | 888 | 888 | |||
2.754% Dated Subordinated Fixed Rate Reset notes 2032 (US$1,750 million) | – | – | 1,300 | 1,300 | |||
– | – | 3,262 | 3,262 | ||||
Repurchases and redemptions during the year1: | |||||||
Series 2 (US$500 million) | – | (94) | – | (94) | |||
Series 3 (US$600 million) | – | (120) | – | (120) | |||
Series 1 (US$750 million) | – | (96) | – | (96) | |||
4.553% Subordinated Fixed Rate Note 2021 (US$1,500 million) | – | – | (1,122) | (1,122) | |||
4.293% Subordinated Fixed Rate Note 2021 (US$824 million) | – | – | (612) | (612) | |||
4.503% Subordinated Fixed Rate Note 2021 (US$1,353 million) | – | – | (1,004) | (1,004) | |||
– | (310) | (2,738) | (3,048) | ||||
Foreign exchange movements | 17 | (1) | (40) | (24) | |||
Other movements (cash and non-cash) | 37 | (1) | (70) | (34) | |||
At 31 December 2021 | 1,626 | 102 | 6,179 | 7,907 | |||
Issued in the year: | |||||||
8.133% Dated Subordinated Fixed Rate Reset notes 2033 (US$1,000 million) | – | – | 837 | 837 | |||
Repurchases and redemptions during the year1: | |||||||
12% Fixed to Floating Rate Perpetual Tier 1 Capital Securities callable 2024 (US$2,000 million) | (1,399) | – | – | (1,399) | |||
13% Sterling Step-up Perpetual Capital Securities callable 2029 (£700 million) | (221) | – | – | (221) | |||
7.625% Dated Subordinated Notes 2025 (£750 million) | – | – | (502) | (502) | |||
(1,620) | – | (502) | (2,122) | ||||
Foreign exchange movements | (6) | – | 445 | 439 | |||
Other movements (cash and non-cash) | – | – | (1,141) | (1,141) | |||
At 31 December 2022 | – | 102 | 5,818 | 5,920 |
2022 £m | 2021 £m | 2020 £m | |
Revaluation reserve in respect of debt securities held at fair value through other comprehensive income | (4) | 105 | 14 |
Revaluation reserve in respect of equity shares held at fair value through other comprehensive income | – | – | – |
Cash flow hedging reserve | (1,732) | 720 | 1,367 |
Foreign currency translation reserve | 2 | (1) | 1 |
At 31 December | (1,734) | 824 | 1,382 |
Revaluation reserve in respect of debt securities held at fair value through other comprehensive income | 2022 £m | 2021 £m | 2020 £m | ||
At 1 January | 105 | 14 | 103 | ||
Change in fair value | (50) | 139 | 12 | ||
Deferred tax | 23 | (47) | (8) | ||
Current tax | – | – | – | ||
(27) | 92 | 4 | |||
Income statement transfers in respect of disposals | (118) | (2) | (138) | ||
Deferred tax | 30 | – | 44 | ||
(88) | (2) | (94) | |||
Impairment recognised in the income statement | 6 | 1 | 1 | ||
At 31 December | (4) | 105 | 14 |
Revaluation reserve in respect of equity shares held at fair value through other comprehensive income | 2022 £m | 2021 £m | 2020 £m | ||
At 1 January | – | – | – | ||
Change in fair value | – | – | – | ||
Deferred tax | (1) | 1 | 4 | ||
(1) | 1 | 4 | |||
Realised gains and losses transferred to retained profits | – | – | – | ||
Deferred tax | 1 | (1) | (4) | ||
1 | (1) | (4) | |||
At 31 December | – | – | – |
Cash flow hedging reserve | 2022 £m | 2021 £m | 2020 £m | ||
At 1 January | 720 | 1,367 | 1,607 | ||
Change in fair value of hedging derivatives | (3,089) | (438) | 85 | ||
Deferred tax | 894 | 82 | (66) | ||
(2,195) | (356) | 19 | |||
Net income statement transfers | (352) | (399) | (355) | ||
Deferred tax | 95 | 108 | 96 | ||
(257) | (291) | (259) | |||
At 31 December | (1,732) | 720 | 1,367 |
Foreign currency translation reserve | 2022 £m | 2021 £m | 2020 £m |
At 1 January | (1) | 1 | – |
Currency translation differences arising in the year | 3 | (2) | 1 |
At 31 December | 2 | (1) | 1 |
2022 £m | 2021 £m | 2020 £m | |||
At 1 January | 43,681 | 42,677 | 42,470 | ||
Profit attributable to ordinary shareholders (see below) | 3,276 | 3,249 | 224 | ||
Post-retirement defined benefit scheme remeasurements | (1,232) | 556 | (102) | ||
Gains and losses attributable to own credit risk (net of tax) | 364 | (52) | (55) | ||
Dividends paid1 | – | (2,900) | – | ||
Issue of other equity instruments | – | (1) | – | ||
Repurchases and redemptions of other equity instruments | – | (9) | – | ||
Capital contributions received | 221 | 164 | 140 | ||
Return of capital contributions | (4) | (4) | (4) | ||
Realised gains and losses on equity shares held at fair value through other comprehensive income | (1) | 1 | 4 | ||
At 31 December | 46,305 | 43,681 | 42,677 |
2022 £m | 2021 £m | 2020 £m | |||
Net interest income | 7,605 | 4,606 | 4,519 | ||
Net fee and commission income | 800 | 848 | 655 | ||
Dividends received | 1,850 | 1,391 | 44 | ||
Net trading and other operating income | 1,027 | 1,956 | 2,952 | ||
Other income | 3,677 | 4,195 | 3,651 | ||
Total income | 11,282 | 8,801 | 8,170 | ||
Operating expenses | (6,430) | (6,273) | (5,828) | ||
Impairment (charge) credit | (745) | 773 | (1,898) | ||
Profit before tax | 4,107 | 3,301 | 444 | ||
Tax (expense) credit | (590) | 292 | 197 | ||
Profit for the year | 3,517 | 3,593 | 641 | ||
Profit attributable to ordinary shareholders | 3,276 | 3,249 | 224 | ||
Profit attributable to other equity holders | 241 | 344 | 417 | ||
Profit for the year | 3,517 | 3,593 | 641 |
2022 £m | 2021 £m | |
Assets, included within: | ||
Financial assets at fair value through profit or loss | 4,192 | 3,404 |
Derivative financial instruments | 4,566 | 3,299 |
Financial assets at amortised cost: due from fellow Lloyds Banking Group undertakings | 118,689 | 107,907 |
127,447 | 114,610 | |
Liabilities, included within: | ||
Due to fellow Lloyds Banking Group undertakings | 17,891 | 21,540 |
Derivative financial instruments | 5,076 | 2,508 |
Debt securities in issue | 79 | 59 |
23,046 | 24,107 |
2022 £m | 2021 £m | |
Assets, included within: | ||
Derivative financial instruments | 1,120 | 634 |
Financial assets at amortised cost: due from fellow Lloyds Banking Group undertakings | 593 | 517 |
1,713 | 1,151 | |
Liabilities, included within: | ||
Due to fellow Lloyds Banking Group undertakings | 2,451 | 1,332 |
Financial liabilities at fair value through profit or loss | 4,112 | 3,318 |
Derivative financial instruments | 1,033 | 633 |
Debt securities in issue | 13,380 | 14,650 |
Subordinated liabilities | 6,618 | 5,311 |
27,594 | 25,244 |
2022 £m | 2021 £m | ||
Contingent liabilities | |||
Acceptances and endorsements | 58 | 21 | |
Other: | |||
Other items serving as direct credit substitutes | 779 | 375 | |
Performance bonds, including letters of credit, and other transaction-related contingencies | 1,966 | 1,681 | |
2,745 | 2,056 | ||
Total contingent liabilities | 2,803 | 2,077 |
2022 £m | 2021 £m | ||
Incurred on behalf of fellow Lloyds Banking Group undertakings | – | – |
2022 £m | 2021 £m | ||
Commitments and guarantees | |||
Forward asset purchases and forward deposits placed | 39 | 55 | |
Undrawn formal standby facilities, credit lines and other commitments to lend: | |||
Less than 1 year original maturity: | |||
Mortgage offers made | 1,135 | 1,001 | |
Other commitments and guarantees | 24,955 | 29,871 | |
26,090 | 30,872 | ||
1 year or over original maturity | 34,620 | 27,063 | |
Total commitments and guarantees | 60,749 | 57,990 |
2022 £m | 2021 £m | ||
Incurred on behalf of fellow Lloyds Banking Group undertakings | 3,141 | 3,055 |
Derivatives designated as hedging instruments £m | Mandatorily held at fair value through profit or loss | Designated at fair value through profit or loss £m | At fair value through other comprehensive income £m | Held at amortised cost £m | Total £m | ||||||||
Held for trading £m | Other £m | ||||||||||||
At 31 December 2022 | |||||||||||||
Financial assets | |||||||||||||
Cash and balances at central banks | – | – | – | – | – | 66,783 | 66,783 | ||||||
Items in the course of collection from banks | – | – | – | – | – | 182 | 182 | ||||||
Financial assets at fair value through profit or loss | – | – | 4,994 | – | – | – | 4,994 | ||||||
Derivative financial instruments | 6 | 7,787 | – | – | – | – | 7,793 | ||||||
Loans and advances to banks | – | – | – | – | – | 7,984 | 7,984 | ||||||
Loans and advances to customers | – | – | – | – | – | 113,948 | 113,948 | ||||||
Reverse repurchase agreements | – | – | – | – | – | 39,259 | 39,259 | ||||||
Debt securities | – | – | – | – | – | 6,471 | 6,471 | ||||||
Due from fellow Lloyds Banking Group undertakings | – | – | – | – | – | 119,282 | 119,282 | ||||||
Financial assets at amortised cost | – | – | – | – | – | 286,944 | 286,944 | ||||||
Financial assets at fair value through other comprehensive income | – | – | – | – | 22,675 | – | 22,675 | ||||||
Total financial assets | 6 | 7,787 | 4,994 | – | 22,675 | 353,909 | 389,371 | ||||||
Financial liabilities | |||||||||||||
Deposits from banks | – | – | – | – | – | 4,465 | 4,465 | ||||||
Customer deposits | – | – | – | – | – | 269,473 | 269,473 | ||||||
Repurchase agreements at amortised cost | – | – | – | – | – | 18,380 | 18,380 | ||||||
Due to fellow Lloyds Banking Group undertakings | – | – | – | – | – | 20,342 | 20,342 | ||||||
Items in course of transmission to banks | – | – | – | – | – | 238 | 238 | ||||||
Financial liabilities at fair value through profit or loss | – | – | – | 9,244 | – | – | 9,244 | ||||||
Derivative financial instruments | 498 | 9,849 | – | – | – | – | 10,347 | ||||||
Debt securities in issue | – | – | – | – | – | 39,819 | 39,819 | ||||||
Other | – | – | – | – | – | 706 | 706 | ||||||
Subordinated liabilities | – | – | – | – | – | 5,920 | 5,920 | ||||||
Total financial liabilities | 498 | 9,849 | – | 9,244 | – | 359,343 | 378,934 | ||||||
Derivatives designated as hedging instruments £m | Mandatorily held at fair value through profit or loss | Designated at fair value through profit or loss £m | At fair value through other comprehensive income £m | Held at amortised cost £m | Total £m | ||||||||
Held for trading £m | Other £m | ||||||||||||
At 31 December 2021 | |||||||||||||
Financial assets | |||||||||||||
Cash and balances at central banks | – | – | – | – | – | 49,618 | 49,618 | ||||||
Items in the course of collection from banks | – | – | – | – | – | 99 | 99 | ||||||
Financial assets at fair value through profit or loss | – | – | 4,529 | – | – | – | 4,529 | ||||||
Derivative financial instruments | 37 | 6,861 | – | – | – | – | 6,898 | ||||||
Loans and advances to banks | – | – | – | – | – | 4,291 | 4,291 | ||||||
Loans and advances to customers | – | – | – | – | – | 116,716 | 116,716 | ||||||
Reverse repurchase agreements | – | – | – | – | – | 49,708 | 49,708 | ||||||
Debt securities | – | – | – | – | – | 3,756 | 3,756 | ||||||
Due from fellow Lloyds Banking Group undertakings | – | – | – | – | – | 108,424 | 108,424 | ||||||
Financial assets at amortised cost | – | – | – | – | – | 282,895 | 282,895 | ||||||
Financial assets at fair value through other comprehensive income | – | – | – | – | 25,529 | – | 25,529 | ||||||
Total financial assets | 37 | 6,861 | 4,529 | – | 25,529 | 332,612 | 369,568 | ||||||
Financial liabilities | |||||||||||||
Deposits from banks | – | – | – | – | – | 2,768 | 2,768 | ||||||
Customer deposits | – | – | – | – | – | 268,683 | 268,683 | ||||||
Repurchase agreements at amortised cost | – | – | – | – | – | 78 | 78 | ||||||
Due to fellow Lloyds Banking Group undertakings | – | – | – | – | – | 22,872 | 22,872 | ||||||
Items in course of transmission to banks | – | – | – | – | – | 207 | 207 | ||||||
Financial liabilities at fair value through profit or loss | – | – | – | 9,821 | – | – | 9,821 | ||||||
Derivative financial instruments | 310 | 5,792 | – | – | – | – | 6,102 | ||||||
Debt securities in issue | – | – | – | – | – | 38,439 | 38,439 | ||||||
Other | – | – | – | – | – | 777 | 777 | ||||||
Subordinated liabilities | – | – | – | – | – | 7,907 | 7,907 | ||||||
Total financial liabilities | 310 | 5,792 | – | 9,821 | – | 341,731 | 357,654 | ||||||
Level 1 £m | Level 2 £m | Level 3 £m | Total £m | ||||
At 31 December 2022 | |||||||
Financial assets at fair value through profit or loss | |||||||
Loans and advances to customers | – | 798 | – | 798 | |||
Corporate and other debt securities | – | 4,192 | – | 4,192 | |||
Equity shares | – | – | 4 | 4 | |||
Total financial assets at fair value through profit or loss | – | 4,990 | 4 | 4,994 | |||
Financial assets at fair value through other comprehensive income | |||||||
Debt securities: | |||||||
Government securities | 10,720 | 357 | – | 11,077 | |||
Asset-backed securities | – | 87 | – | 87 | |||
Corporate and other debt securities | 531 | 10,980 | – | 11,511 | |||
11,251 | 11,424 | – | 22,675 | ||||
Total financial assets at fair value through other comprehensive income | 11,251 | 11,424 | – | 22,675 | |||
Total financial assets carried at fair value, excluding derivatives | 11,251 | 16,414 | 4 | 27,669 | |||
At 31 December 2021 | |||||||
Financial assets at fair value through profit or loss | |||||||
Loans and advances to customers | – | 1,088 | 33 | 1,121 | |||
Corporate and other debt securities | – | 3,404 | – | 3,404 | |||
Equity shares | – | – | 4 | 4 | |||
Total financial assets at fair value through profit or loss | – | 4,492 | 37 | 4,529 | |||
Financial assets at fair value through other comprehensive income | |||||||
Debt securities: | |||||||
Government securities | 14,445 | – | – | 14,445 | |||
Asset-backed securities | – | – | – | – | |||
Corporate and other debt securities | 640 | 10,444 | – | 11,084 | |||
15,085 | 10,444 | – | 25,529 | ||||
Total financial assets at fair value through other comprehensive income | 15,085 | 10,444 | – | 25,529 | |||
Total financial assets carried at fair value, excluding derivatives | 15,085 | 14,936 | 37 | 30,058 |
2022 | 2021 | ||||||
Financial assets at fair value through profit or loss £m | Financial assets at fair value through other comprehensive income £m | Total level 3 assets carried at fair value, excluding derivatives (recurring basis) £m | Financial assets at fair value through profit or loss £m | Financial assets at fair value through other comprehensive income £m | Total level 3 assets carried at fair value, excluding derivatives (recurring basis) £m | ||
At 1 January | 37 | – | 37 | 517 | – | 517 | |
Exchange and other adjustments | – | – | – | 5 | – | 5 | |
Gains recognised in the income statement within other income | – | – | – | 6 | – | 6 | |
Purchases/increases to customer loans | – | – | – | 393 | – | 393 | |
Sales/repayments of customer loans | (33) | – | (33) | (499) | – | (499) | |
Transfers into the level 3 portfolio | – | – | – | 4 | – | 4 | |
Transfers out of the level 3 portfolio | – | – | – | (389) | – | (389) | |
At 31 December | 4 | – | 4 | 37 | – | 37 | |
Gains recognised in the income statement, within other income, relating to the change in fair value of those assets held at 31 December | – | – | – | 11 | – | 11 | |
Level 1 £m | Level 2 £m | Level 3 £m | Total £m | ||||
At 31 December 2022 | |||||||
Financial liabilities at fair value through profit or loss | |||||||
Debt securities in issue designated at fair value through profit or loss | – | 9,244 | – | 9,244 | |||
Total financial liabilities carried at fair value, excluding derivatives | – | 9,244 | – | 9,244 | |||
At 31 December 2021 | |||||||
Financial liabilities at fair value through profit or loss | |||||||
Debt securities in issue designated at fair value through profit or loss | – | 9,821 | – | 9,821 | |||
Total financial liabilities carried at fair value, excluding derivatives | – | 9,821 | – | 9,821 |
2022 | 2021 | ||||||||
Level 1 £m | Level 2 £m | Level 3 £m | Total £m | Level 1 £m | Level 2 £m | Level 3 £m | Total £m | ||
Derivative assets | – | 7,793 | – | 7,793 | – | 6,882 | 16 | 6,898 | |
Derivative liabilities | – | (10,334) | (13) | (10,347) | – | (6,071) | (31) | (6,102) | |
2022 | 2021 | ||||
Derivative assets £m | Derivative liabilities £m | Derivative assets £m | Derivative liabilities £m | ||
At 1 January | 16 | (31) | 14 | (60) | |
Gains recognised in the income statement within other income | 1 | 26 | 2 | 29 | |
Purchases (additions) | – | (9) | – | – | |
Transfers out of the level 3 portfolio | (17) | 1 | – | – | |
At 31 December | – | (13) | 16 | (31) | |
Gains recognised in the income statement, within other income, relating to the change in fair value of those assets or liabilities held at 31 December | – | 25 | 2 | 29 | |
Carrying value £m | Fair value £m | Valuation hierarchy | ||||
Level 1 £m | Level 2 £m | Level 3 £m | ||||
At 31 December 2022 | ||||||
Loans and advances to banks | 7,984 | 7,984 | – | – | 7,984 | |
Loans and advances to customers | 113,948 | 112,542 | – | – | 112,542 | |
Reverse repurchase agreements | 39,259 | 39,259 | – | 39,259 | – | |
Debt securities | 6,471 | 6,479 | 167 | 6,312 | – | |
Due from fellow Lloyds Banking Group undertakings | 119,282 | 119,282 | – | – | 119,282 | |
Financial assets at amortised cost | 286,944 | 285,546 | 167 | 45,571 | 239,808 | |
At 31 December 2021 | ||||||
Loans and advances to banks | 4,291 | 4,291 | – | – | 4,291 | |
Loans and advances to customers | 116,716 | 116,117 | – | – | 116,117 | |
Reverse repurchase agreements | 49,708 | 49,708 | – | 49,708 | – | |
Debt securities | 3,756 | 3,817 | – | 3,817 | – | |
Due from fellow Lloyds Banking Group undertakings | 108,424 | 108,424 | – | – | 108,424 | |
Financial assets at amortised cost | 282,895 | 282,357 | – | 53,525 | 228,832 | |
Carrying value £m | Fair value £m | Valuation hierarchy | ||||
Level 1 £m | Level 2 £m | Level 3 £m | ||||
At 31 December 2022 | ||||||
Deposits from banks | 4,465 | 4,465 | – | 4,465 | – | |
Customer deposits | 269,473 | 269,316 | – | 269,316 | – | |
Repurchase agreements at amortised cost | 18,380 | 18,380 | – | 18,380 | – | |
Due to fellow Lloyds Banking Group undertakings | 20,342 | 20,342 | – | 20,342 | – | |
Debt securities in issue | 39,819 | 39,594 | – | 39,594 | – | |
Subordinated liabilities | 5,920 | 5,974 | – | 5,974 | – | |
At 31 December 2021 | ||||||
Deposits from banks | 2,768 | 2,768 | – | 2,768 | – | |
Customer deposits | 268,683 | 268,700 | – | 268,700 | – | |
Repurchase agreements at amortised cost | 78 | 78 | – | 78 | – | |
Due to fellow Lloyds Banking Group undertakings | 22,872 | 22,872 | – | 22,872 | – | |
Debt securities in issue | 38,439 | 40,222 | – | 40,222 | – | |
Subordinated liabilities | 7,907 | 8,333 | – | 8,333 | – | |
2022 | 2021 | ||||
Carrying value of transferred assets £m | Carrying value of associated liabilities £m | Carrying value of transferred assets £m | Carrying value of associated liabilities £m | ||
Repurchase and securities lending transactions | |||||
Financial assets at fair value through other comprehensive income | 11,552 | 6,052 | 8,626 | 5,745 | |
Securitisation programmes | |||||
Financial assets at amortised cost: | |||||
Loans and advances to customers1 | 3,366 | 278 | 2,847 | 176 | |
At 31 December 2022 | At 31 December 2021 | ||||||||||||||
GBP LIBOR £m | USD LIBOR £m | Other1 £m | Total £m | GBP LIBOR £m | USD LIBOR £m | Other £m | Total £m | ||||||||
Non-derivative financial assets | |||||||||||||||
Financial assets at fair value through profit or loss | – | – | – | – | 33 | 96 | – | 129 | |||||||
Loans and advances to banks | – | 67 | – | 67 | – | 3,252 | – | 3,252 | |||||||
Loans and advances to customers | 27 | 670 | 2 | 699 | 2,912 | 1,924 | – | 4,836 | |||||||
Due from fellow Lloyds Banking Group undertakings | – | – | – | – | 7 | 127 | – | 134 | |||||||
Financial assets at amortised cost | 27 | 737 | 2 | 766 | 2,919 | 5,303 | – | 8,222 | |||||||
27 | 737 | 2 | 766 | 2,952 | 5,399 | – | 8,351 | ||||||||
Non-derivative financial liabilities | |||||||||||||||
Financial liabilities at fair value through profit or loss | – | 100 | – | 100 | – | 100 | 3 | 103 | |||||||
Debt securities in issue2 | – | 1,216 | 310 | 1,526 | – | 3,548 | 6 | 3,554 | |||||||
– | 1,316 | 310 | 1,626 | – | 3,648 | 9 | 3,657 | ||||||||
Derivative notional/contract amount | |||||||||||||||
Interest rate | 1 | 96,420 | 653 | 97,074 | 1,411 | 120,502 | 10 | 121,923 | |||||||
Cross currency | – | 14,210 | 921 | 15,131 | – | 21,868 | – | 21,868 | |||||||
1 | 110,630 | 1,574 | 112,205 | 1,411 | 142,370 | 10 | 143,791 | ||||||||
2022 | 2021 | ||||||||||
Maximum exposure £m | Offset1 £m | Net exposure £m | Maximum exposure £m | Offset1 £m | Net exposure £m | ||||||
Financial assets at fair value through profit or loss2: | |||||||||||
Loans and advances | 798 | – | 798 | 1,121 | – | 1,121 | |||||
Debt securities, treasury and other bills | 4,192 | – | 4,192 | 3,404 | – | 3,404 | |||||
4,990 | – | 4,990 | 4,525 | – | 4,525 | ||||||
Derivative financial instruments | 7,793 | (1,657) | 6,136 | 6,898 | (2,019) | 4,879 | |||||
Financial assets at amortised cost, net3 | |||||||||||
Loans and advances to banks, net3 | 7,984 | – | 7,984 | 4,291 | – | 4,291 | |||||
Loans and advances to customers, net3 | 113,948 | (1,577) | 112,371 | 116,716 | (1,201) | 115,515 | |||||
Reverse repurchase agreements, net3 | 39,259 | – | 39,259 | 49,708 | – | 49,708 | |||||
Debt securities, net3 | 6,471 | – | 6,471 | 3,756 | – | 3,756 | |||||
167,662 | (1,577) | 166,085 | 174,471 | (1,201) | 173,270 | ||||||
Financial assets at fair value through other comprehensive income | 22,675 | – | 22,675 | 25,529 | – | 25,529 | |||||
Off-balance sheet items: | |||||||||||
Acceptances and endorsements | 58 | – | 58 | 21 | – | 21 | |||||
Other items serving as direct credit substitutes | 779 | – | 779 | 375 | – | 375 | |||||
Performance bonds, including letters of credit, and other transaction-related contingencies | 1,966 | – | 1,966 | 1,681 | – | 1,681 | |||||
Irrevocable commitments and guarantees | 34,788 | – | 34,788 | 30,653 | – | 30,653 | |||||
37,591 | – | 37,591 | 32,730 | – | 32,730 | ||||||
240,711 | (3,234) | 237,477 | 244,153 | (3,220) | 240,933 | ||||||
2022 £m | 2021 £m | |
Agriculture, forestry and fishing | 2,698 | 2,901 |
Energy and water supply | 2,447 | 1,890 |
Manufacturing | 2,996 | 3,113 |
Construction | 3,333 | 3,613 |
Transport, distribution and hotels | 9,451 | 10,001 |
Postal and telecommunications | 2,166 | 1,506 |
Property companies | 17,859 | 19,934 |
Financial, business and other services | 18,977 | 17,217 |
Personal: | ||
Mortgages1 | 42,771 | 46,089 |
Other | 9,652 | 8,674 |
Lease financing | 7 | 20 |
Hire purchase | 2,963 | 2,934 |
Total loans and advances to customers before allowance for impairment losses | 115,320 | 117,892 |
Allowance for impairment losses (note 5) | (1,372) | (1,176) |
Total loans and advances to customers | 113,948 | 116,716 |
Drawn exposures | Expected credit loss allowance | ||||||||||||||
Gross drawn exposures and expected credit loss allowance | Stage 1 £m | Stage 2 £m | Stage 3 £m | Total £m | Stage 1 £m | Stage 2 £m | Stage 3 £m | Total £m | |||||||
At 31 December 2022 | |||||||||||||||
Loans and advances to banks | |||||||||||||||
CMS 1–5 | 797 | – | – | 797 | – | – | – | – | |||||||
CMS 6–10 | 7,186 | – | – | 7,186 | 9 | – | – | 9 | |||||||
CMS 11–14 | 7 | 3 | – | 10 | – | – | – | – | |||||||
CMS 15–18 | – | – | – | – | – | – | – | – | |||||||
CMS 19 | – | – | – | – | – | – | – | – | |||||||
CMS 20–23 | – | – | – | – | – | – | – | – | |||||||
7,990 | 3 | – | 7,993 | 9 | – | – | 9 | ||||||||
Loans and advances to customers | |||||||||||||||
Retail – UK mortgages | |||||||||||||||
RMS 1–3 | 33,607 | 3,474 | – | 37,081 | 5 | 18 | – | 23 | |||||||
RMS 4–6 | 964 | 1,982 | – | 2,946 | 1 | 15 | – | 16 | |||||||
RMS 7–9 | 4 | 484 | – | 488 | – | 7 | – | 7 | |||||||
RMS 10 | – | 187 | – | 187 | – | 4 | – | 4 | |||||||
RMS 11–13 | – | 433 | – | 433 | – | 16 | – | 16 | |||||||
RMS 14 | – | – | 944 | 944 | – | – | 69 | 69 | |||||||
34,575 | 6,560 | 944 | 42,079 | 6 | 60 | 69 | 135 | ||||||||
Retail – credit cards | |||||||||||||||
RMS 1–3 | 1,110 | 2 | – | 1,112 | 2 | – | – | 2 | |||||||
RMS 4–6 | 1,500 | 375 | – | 1,875 | 13 | 19 | – | 32 | |||||||
RMS 7–9 | 300 | 377 | – | 677 | 10 | 53 | – | 63 | |||||||
RMS 10 | – | 63 | – | 63 | – | 15 | – | 15 | |||||||
RMS 11–13 | – | 93 | – | 93 | – | 38 | – | 38 | |||||||
RMS 14 | – | – | 73 | 73 | – | – | 27 | 27 | |||||||
2,910 | 910 | 73 | 3,893 | 25 | 125 | 27 | 177 | ||||||||
Retail – loans and overdrafts | |||||||||||||||
RMS 1–3 | 322 | – | – | 322 | 1 | – | – | 1 | |||||||
RMS 4–6 | 3,449 | 206 | – | 3,655 | 51 | 11 | – | 62 | |||||||
RMS 7–9 | 961 | 312 | – | 1,273 | 39 | 40 | – | 79 | |||||||
RMS 10 | 29 | 102 | – | 131 | 3 | 23 | – | 26 | |||||||
RMS 11–13 | 9 | 218 | – | 227 | 2 | 87 | – | 89 | |||||||
RMS 14 | – | – | 133 | 133 | – | – | 69 | 69 | |||||||
4,770 | 838 | 133 | 5,741 | 96 | 161 | 69 | 326 | ||||||||
Retail – UK Motor Finance | |||||||||||||||
RMS 1–3 | 348 | 4 | – | 352 | 2 | – | – | 2 | |||||||
RMS 4–6 | 6 | 3 | – | 9 | – | – | – | – | |||||||
RMS 7–9 | – | 2 | – | 2 | – | – | – | – | |||||||
RMS 10 | – | 1 | – | 1 | – | – | – | – | |||||||
RMS 11–13 | – | 3 | – | 3 | – | 1 | – | 1 | |||||||
RMS 14 | – | – | 13 | 13 | – | – | 7 | 7 | |||||||
354 | 13 | 13 | 380 | 2 | 1 | 7 | 10 | ||||||||
Retail – other | |||||||||||||||
RMS 1–3 | 229 | 1 | – | 230 | 1 | – | – | 1 | |||||||
RMS 4–6 | 328 | 102 | – | 430 | – | 5 | – | 5 | |||||||
RMS 7–9 | – | – | – | – | – | – | – | – | |||||||
RMS 10 | – | – | – | – | – | – | – | – | |||||||
RMS 11–13 | – | – | – | – | – | – | – | – | |||||||
RMS 14 | – | – | 63 | 63 | – | – | 26 | 26 | |||||||
557 | 103 | 63 | 723 | 1 | 5 | 26 | 32 | ||||||||
Total Retail | 43,166 | 8,424 | 1,226 | 52,816 | 130 | 352 | 198 | 680 | |||||||
Drawn exposures | Expected credit loss allowance | ||||||||||||||
Gross drawn exposures and expected credit loss allowance (continued) | Stage 1 £m | Stage 2 £m | Stage 3 £m | Total £m | Stage 1 £m | Stage 2 £m | Stage 3 £m | Total £m | |||||||
At 31 December 2022 | |||||||||||||||
Commercial Banking | |||||||||||||||
CMS 1–5 | 9,355 | 14 | – | 9,369 | 2 | – | – | 2 | |||||||
CMS 6–10 | 14,994 | 269 | – | 15,263 | 19 | 2 | – | 21 | |||||||
CMS 11–14 | 24,143 | 4,411 | – | 28,554 | 107 | 75 | – | 182 | |||||||
CMS 15–18 | 2,587 | 3,708 | – | 6,295 | 35 | 204 | – | 239 | |||||||
CMS 19 | 10 | 690 | – | 700 | – | 65 | – | 65 | |||||||
CMS 20–23 | – | – | 1,726 | 1,726 | – | – | 183 | 183 | |||||||
51,089 | 9,092 | 1,726 | 61,907 | 163 | 346 | 183 | 692 | ||||||||
Other1 | 597 | – | – | 597 | – | – | – | – | |||||||
Total loans and advances to customers | 94,852 | 17,516 | 2,952 | 115,320 | 293 | 698 | 381 | 1,372 | |||||||
In respect of: | |||||||||||||||
Retail | 43,166 | 8,424 | 1,226 | 52,816 | 130 | 352 | 198 | 680 | |||||||
Commercial Banking | 51,089 | 9,092 | 1,726 | 61,907 | 163 | 346 | 183 | 692 | |||||||
Other1 | 597 | – | – | 597 | – | – | – | – | |||||||
Total loans and advances to customers | 94,852 | 17,516 | 2,952 | 115,320 | 293 | 698 | 381 | 1,372 | |||||||
Reverse repurchase agreements | |||||||||||||||
Banks | |||||||||||||||
CMS 1–5 | 3,292 | – | – | 3,292 | – | – | – | – | |||||||
CMS 6–10 | 258 | – | – | 258 | – | – | – | – | |||||||
CMS 11–14 | – | – | – | – | – | – | – | – | |||||||
CMS 15–18 | – | – | – | – | – | – | – | – | |||||||
CMS 19 | – | – | – | – | – | – | – | – | |||||||
CMS 20–23 | – | – | – | – | – | – | – | – | |||||||
3,550 | – | – | 3,550 | – | – | – | – | ||||||||
Customers | |||||||||||||||
CMS 1–5 | 3,752 | – | – | 3,752 | – | – | – | – | |||||||
CMS 6–10 | 31,957 | – | – | 31,957 | – | – | – | – | |||||||
CMS 11–14 | – | – | – | – | – | – | – | – | |||||||
CMS 15–18 | – | – | – | – | – | – | – | – | |||||||
CMS 19 | – | – | – | – | – | – | – | – | |||||||
CMS 20–23 | – | – | – | – | – | – | – | – | |||||||
35,709 | – | – | 35,709 | – | – | – | – | ||||||||
Total reverse repurchase agreements | 39,259 | – | – | 39,259 | – | – | – | – |
Undrawn exposures | Expected credit loss allowance | ||||||||||||||
Gross undrawn exposures and expected credit loss allowance | Stage 1 £m | Stage 2 £m | Stage 3 £m | Total £m | Stage 1 £m | Stage 2 £m | Stage 3 £m | Total £m | |||||||
At 31 December 2022 | |||||||||||||||
Retail – UK mortgages | |||||||||||||||
RMS 1–3 | 1,134 | 1 | – | 1,135 | – | – | – | – | |||||||
RMS 4–6 | – | – | – | – | – | – | – | – | |||||||
RMS 7–9 | – | – | – | – | – | – | – | – | |||||||
RMS 10 | – | – | – | – | – | – | – | – | |||||||
RMS 11–13 | – | – | – | – | – | – | – | – | |||||||
RMS 14 | – | – | – | – | – | – | – | – | |||||||
1,134 | 1 | – | 1,135 | – | – | – | – | ||||||||
Retail – credit cards | |||||||||||||||
RMS 1–3 | 10,641 | 12 | – | 10,653 | 3 | – | – | 3 | |||||||
RMS 4–6 | 3,472 | 851 | – | 4,323 | 7 | 9 | – | 16 | |||||||
RMS 7–9 | 133 | 132 | – | 265 | 1 | 3 | – | 4 | |||||||
RMS 10 | – | 12 | – | 12 | – | 1 | – | 1 | |||||||
RMS 11–13 | – | 16 | – | 16 | – | 1 | – | 1 | |||||||
RMS 14 | – | – | 12 | 12 | – | – | – | – | |||||||
14,246 | 1,023 | 12 | 15,281 | 11 | 14 | – | 25 | ||||||||
Retail – loans and overdrafts | |||||||||||||||
RMS 1–3 | 2,379 | – | – | 2,379 | 2 | – | – | 2 | |||||||
RMS 4–6 | 925 | 125 | – | 1,050 | 5 | 6 | – | 11 | |||||||
RMS 7–9 | 145 | 77 | – | 222 | 4 | 9 | – | 13 | |||||||
RMS 10 | 3 | 19 | – | 22 | – | 4 | – | 4 | |||||||
RMS 11–13 | – | 33 | – | 33 | – | 9 | – | 9 | |||||||
RMS 14 | – | – | 9 | 9 | – | – | – | – | |||||||
3,452 | 254 | 9 | 3,715 | 11 | 28 | – | 39 | ||||||||
Retail – UK Motor Finance | |||||||||||||||
RMS 1–3 | – | – | – | – | – | – | – | – | |||||||
RMS 4–6 | – | – | – | – | – | – | – | – | |||||||
RMS 7–9 | – | – | – | – | – | – | – | – | |||||||
RMS 10 | – | – | – | – | – | – | – | – | |||||||
RMS 11–13 | – | – | – | – | – | – | – | – | |||||||
RMS 14 | – | – | – | – | – | – | – | – | |||||||
– | – | – | – | – | – | – | – | ||||||||
Retail – other | |||||||||||||||
RMS 1–3 | 45 | – | – | 45 | – | – | – | – | |||||||
RMS 4–6 | 180 | – | – | 180 | 1 | – | – | 1 | |||||||
RMS 7–9 | – | – | – | – | – | – | – | – | |||||||
RMS 10 | – | – | – | – | – | – | – | – | |||||||
RMS 11–13 | – | – | – | – | – | – | – | – | |||||||
RMS 14 | – | – | – | – | – | – | – | – | |||||||
225 | – | – | 225 | 1 | – | – | 1 | ||||||||
Total Retail | 19,057 | 1,278 | 21 | 20,356 | 23 | 42 | – | 65 | |||||||
Undrawn exposures | Expected credit loss allowance | ||||||||||||||
Gross undrawn exposures and expected credit loss allowance (continued) | Stage 1 £m | Stage 2 £m | Stage 3 £m | Total £m | Stage 1 £m | Stage 2 £m | Stage 3 £m | Total £m | |||||||
At 31 December 2022 | |||||||||||||||
Commercial Banking | |||||||||||||||
CMS 1–5 | 12,102 | – | – | 12,102 | 1 | – | – | 1 | |||||||
CMS 6–10 | 17,965 | 32 | – | 17,997 | 12 | 1 | – | 13 | |||||||
CMS 11–14 | 7,499 | 1,218 | – | 8,717 | 24 | 26 | – | 50 | |||||||
CMS 15–18 | 734 | 727 | – | 1,461 | 8 | 37 | – | 45 | |||||||
CMS 19 | – | 70 | – | 70 | – | 10 | – | 10 | |||||||
CMS 20–23 | – | – | 46 | 46 | – | – | 2 | 2 | |||||||
38,300 | 2,047 | 46 | 40,393 | 45 | 74 | 2 | 121 | ||||||||
Other | |||||||||||||||
CMS 1–5 | – | – | – | – | – | – | – | – | |||||||
CMS 6–10 | – | – | – | – | – | – | – | – | |||||||
CMS 11–14 | – | – | – | – | – | – | – | – | |||||||
CMS 15–18 | – | – | – | – | – | – | – | – | |||||||
CMS 19 | – | – | – | – | – | – | – | – | |||||||
CMS 20–23 | – | – | – | – | – | – | – | – | |||||||
– | – | – | – | – | – | – | – | ||||||||
Total | 57,357 | 3,325 | 67 | 60,749 | 68 | 116 | 2 | 186 | |||||||
In respect of: | |||||||||||||||
Retail | 19,057 | 1,278 | 21 | 20,356 | 23 | 42 | – | 65 | |||||||
Commercial Banking | 38,300 | 2,047 | 46 | 40,393 | 45 | 74 | 2 | 121 | |||||||
Other | – | – | – | – | – | – | – | – | |||||||
Total | 57,357 | 3,325 | 67 | 60,749 | 68 | 116 | 2 | 186 | |||||||
Drawn exposures | Expected credit loss allowance | ||||||||||||||
Gross drawn exposures and expected credit loss allowance | Stage 1 £m | Stage 2 £m | Stage 3 £m | Total £m | Stage 1 £m | Stage 2 £m | Stage 3 £m | Total £m | |||||||
At 31 December 2021 | |||||||||||||||
Loans and advances to banks | |||||||||||||||
CMS 1–5 | 3,934 | – | – | 3,934 | – | – | – | – | |||||||
CMS 6–10 | 355 | – | – | 355 | – | – | – | – | |||||||
CMS 11–14 | 2 | – | – | 2 | – | – | – | – | |||||||
CMS 15–18 | – | – | – | – | – | – | – | – | |||||||
CMS 19 | – | – | – | – | – | – | – | – | |||||||
CMS 20–23 | – | – | – | – | – | – | – | – | |||||||
4,291 | – | – | 4,291 | – | – | – | – | ||||||||
Loans and advances to customers | |||||||||||||||
Retail – UK mortgages | |||||||||||||||
RMS 1–3 | 39,431 | 1,653 | – | 41,084 | 3 | 14 | – | 17 | |||||||
RMS 4–6 | 984 | 2,094 | – | 3,078 | – | 13 | – | 13 | |||||||
RMS 7–9 | – | 384 | – | 384 | – | 7 | – | 7 | |||||||
RMS 10 | – | 65 | – | 65 | – | 1 | – | 1 | |||||||
RMS 11–13 | – | 201 | – | 201 | – | 6 | – | 6 | |||||||
RMS 14 | – | – | 486 | 486 | – | – | 26 | 26 | |||||||
40,415 | 4,397 | 486 | 45,298 | 3 | 41 | 26 | 70 | ||||||||
Retail – credit cards1 | |||||||||||||||
RMS 1–3 | 1,321 | 4 | – | 1,325 | 3 | – | – | 3 | |||||||
RMS 4–6 | 1,321 | 296 | – | 1,617 | 13 | 13 | – | 26 | |||||||
RMS 7–9 | 200 | 204 | – | 404 | 8 | 25 | – | 33 | |||||||
RMS 10 | – | 33 | – | 33 | – | 7 | – | 7 | |||||||
RMS 11–13 | – | 57 | – | 57 | – | 22 | – | 22 | |||||||
RMS 14 | – | – | 72 | 72 | – | – | 32 | 32 | |||||||
2,842 | 594 | 72 | 3,508 | 24 | 67 | 32 | 123 | ||||||||
Retail – loans and overdrafts | |||||||||||||||
RMS 1–3 | 669 | 1 | – | 670 | 2 | – | – | 2 | |||||||
RMS 4–6 | 3,147 | 305 | – | 3,452 | 43 | 14 | – | 57 | |||||||
RMS 7–9 | 528 | 158 | – | 686 | 22 | 18 | – | 40 | |||||||
RMS 10 | 10 | 41 | – | 51 | 1 | 8 | – | 9 | |||||||
RMS 11–13 | 2 | 132 | – | 134 | – | 46 | – | 46 | |||||||
RMS 14 | – | – | 152 | 152 | – | – | 77 | 77 | |||||||
4,356 | 637 | 152 | 5,145 | 68 | 86 | 77 | 231 | ||||||||
Retail – UK Motor Finance | |||||||||||||||
RMS 1–3 | 273 | 4 | – | 277 | 1 | – | – | 1 | |||||||
RMS 4–6 | 17 | 7 | – | 24 | – | – | – | – | |||||||
RMS 7–9 | 2 | 4 | – | 6 | – | – | – | – | |||||||
RMS 10 | – | 1 | – | 1 | – | – | – | – | |||||||
RMS 11–13 | – | 4 | – | 4 | – | – | – | – | |||||||
RMS 14 | – | – | 26 | 26 | – | – | 13 | 13 | |||||||
292 | 20 | 26 | 338 | 1 | – | 13 | 14 | ||||||||
Retail – other1 | |||||||||||||||
RMS 1–3 | 156 | 3 | – | 159 | – | 1 | – | 1 | |||||||
RMS 4–6 | 699 | 130 | – | 829 | 3 | 2 | – | 5 | |||||||
RMS 7–9 | 1 | 24 | – | 25 | – | 2 | – | 2 | |||||||
RMS 10 | – | – | – | – | – | – | – | – | |||||||
RMS 11–13 | – | 8 | – | 8 | – | 2 | – | 2 | |||||||
RMS 14 | – | – | 81 | 81 | – | – | 31 | 31 | |||||||
856 | 165 | 81 | 1,102 | 3 | 7 | 31 | 41 | ||||||||
Total Retail | 48,761 | 5,813 | 817 | 55,391 | 99 | 201 | 179 | 479 | |||||||
Drawn exposures | Expected credit loss allowance | ||||||||||||||
Gross drawn exposures and expected credit loss allowance (continued) | Stage 1 £m | Stage 2 £m | Stage 3 £m | Total £m | Stage 1 £m | Stage 2 £m | Stage 3 £m | Total £m | |||||||
At 31 December 2021 | |||||||||||||||
Commercial Banking1 | |||||||||||||||
CMS 1–5 | 9,520 | 34 | – | 9,554 | 1 | – | – | 1 | |||||||
CMS 6–10 | 17,726 | 283 | – | 18,009 | 18 | – | – | 18 | |||||||
CMS 11–14 | 24,600 | 3,009 | – | 27,609 | 69 | 68 | – | 137 | |||||||
CMS 15–18 | 1,741 | 2,231 | – | 3,972 | 11 | 105 | – | 116 | |||||||
CMS 19 | 117 | 714 | – | 831 | – | 30 | – | 30 | |||||||
CMS 20–23 | – | – | 1,881 | 1,881 | – | – | 235 | 235 | |||||||
53,704 | 6,271 | 1,881 | 61,856 | 99 | 203 | 235 | 537 | ||||||||
Other2 | 645 | – | – | 645 | 160 | – | – | 160 | |||||||
Total loans and advances to customers | 103,110 | 12,084 | 2,698 | 117,892 | 358 | 404 | 414 | 1,176 | |||||||
In respect of: | |||||||||||||||
Retail | 48,761 | 5,813 | 817 | 55,391 | 99 | 201 | 179 | 479 | |||||||
Commercial Banking | 53,704 | 6,271 | 1,881 | 61,856 | 99 | 203 | 235 | 537 | |||||||
Other2 | 645 | – | – | 645 | 160 | – | – | 160 | |||||||
Total loans and advances to customers | 103,110 | 12,084 | 2,698 | 117,892 | 358 | 404 | 414 | 1,176 | |||||||
Reverse repurchase agreements | |||||||||||||||
Banks | |||||||||||||||
CMS 1–5 | 2,901 | – | – | 2,901 | – | – | – | – | |||||||
CMS 6–10 | 95 | – | – | 95 | – | – | – | – | |||||||
CMS 11–14 | – | – | – | – | – | – | – | – | |||||||
CMS 15–18 | – | – | – | – | – | – | – | – | |||||||
CMS 19 | – | – | – | – | – | – | – | – | |||||||
CMS 20–23 | – | – | – | – | – | – | – | – | |||||||
2,996 | – | – | 2,996 | – | – | – | – | ||||||||
Customers | |||||||||||||||
CMS 1–5 | 10,399 | – | – | 10,399 | – | – | – | – | |||||||
CMS 6–10 | 36,313 | – | – | 36,313 | – | – | – | – | |||||||
CMS 11–14 | – | – | – | – | – | – | – | – | |||||||
CMS 15–18 | – | – | – | – | – | – | – | – | |||||||
CMS 19 | – | – | – | – | – | – | – | – | |||||||
CMS 20–23 | – | – | – | – | – | – | – | – | |||||||
46,712 | – | – | 46,712 | – | – | – | – | ||||||||
Total reverse repurchase agreements | 49,708 | – | – | 49,708 | – | – | – | – |
Undrawn exposures | Expected credit loss allowance | ||||||||||||||
Gross undrawn exposures and expected credit loss allowance | Stage 1 £m | Stage 2 £m | Stage 3 £m | Total £m | Stage 1 £m | Stage 2 £m | Stage 3 £m | Total £m | |||||||
At 31 December 2021 | |||||||||||||||
Retail – UK mortgages | |||||||||||||||
RMS 1–3 | 1,002 | – | – | 1,002 | – | – | – | – | |||||||
RMS 4–6 | – | – | – | – | – | – | – | – | |||||||
RMS 7–9 | – | – | – | – | – | – | – | – | |||||||
RMS 10 | – | – | – | – | – | – | – | – | |||||||
RMS 11–13 | – | – | – | – | – | – | – | – | |||||||
RMS 14 | – | – | – | – | – | – | – | – | |||||||
1,002 | – | – | 1,002 | – | – | – | – | ||||||||
Retail – credit cards1 | |||||||||||||||
RMS 1–3 | 12,590 | 27 | – | 12,617 | 9 | – | – | 9 | |||||||
RMS 4–6 | 2,262 | 569 | – | 2,831 | 6 | 11 | – | 17 | |||||||
RMS 7–9 | 71 | 61 | – | 132 | 1 | 1 | – | 2 | |||||||
RMS 10 | – | 9 | – | 9 | – | – | – | – | |||||||
RMS 11–13 | – | 12 | – | 12 | – | – | – | – | |||||||
RMS 14 | – | – | 15 | 15 | – | – | – | – | |||||||
14,923 | 678 | 15 | 15,616 | 16 | 12 | – | 28 | ||||||||
Retail – loans and overdrafts | |||||||||||||||
RMS 1–3 | 2,876 | – | – | 2,876 | 2 | – | – | 2 | |||||||
RMS 4–6 | 680 | 59 | – | 739 | 3 | 3 | – | 6 | |||||||
RMS 7–9 | 56 | 23 | – | 79 | 1 | 2 | – | 3 | |||||||
RMS 10 | 1 | 6 | – | 7 | – | 1 | – | 1 | |||||||
RMS 11–13 | – | 15 | – | 15 | – | 3 | – | 3 | |||||||
RMS 14 | – | – | 10 | 10 | – | – | – | – | |||||||
3,613 | 103 | 10 | 3,726 | 6 | 9 | – | 15 | ||||||||
Retail – UK Motor Finance | |||||||||||||||
RMS 1–3 | – | – | – | – | – | – | – | – | |||||||
RMS 4–6 | 2 | – | – | 2 | – | – | – | – | |||||||
RMS 7–9 | – | – | – | – | – | – | – | – | |||||||
RMS 10 | – | – | – | – | – | – | – | – | |||||||
RMS 11–13 | – | – | – | – | – | – | – | – | |||||||
RMS 14 | – | – | – | – | – | – | – | – | |||||||
2 | – | – | 2 | – | – | – | – | ||||||||
Retail – other1 | |||||||||||||||
RMS 1–3 | 42 | 1 | – | 43 | 1 | – | – | 1 | |||||||
RMS 4–6 | 186 | – | – | 186 | – | – | – | – | |||||||
RMS 7–9 | – | – | – | – | – | – | – | – | |||||||
RMS 10 | – | – | – | – | – | – | – | – | |||||||
RMS 11–13 | – | – | – | – | – | – | – | – | |||||||
RMS 14 | – | – | – | – | – | – | – | – | |||||||
228 | 1 | – | 229 | 1 | – | – | 1 | ||||||||
Total Retail | 19,768 | 782 | 25 | 20,575 | 23 | 21 | – | 44 | |||||||
Undrawn exposures | Expected credit loss allowance | ||||||||||||||
Gross undrawn exposures and expected credit loss allowance (continued) | Stage 1 £m | Stage 2 £m | Stage 3 £m | Total £m | Stage 1 £m | Stage 2 £m | Stage 3 £m | Total £m | |||||||
At 31 December 2021 | |||||||||||||||
Commercial Banking1 | |||||||||||||||
CMS 1–5 | 14,474 | 1 | – | 14,475 | 1 | – | – | 1 | |||||||
CMS 6–10 | 14,658 | 45 | – | 14,703 | 11 | 1 | – | 12 | |||||||
CMS 11–14 | 5,987 | 1,057 | – | 7,044 | 18 | 13 | – | 31 | |||||||
CMS 15–18 | 178 | 276 | – | 454 | 4 | 15 | – | 19 | |||||||
CMS 19 | 143 | 29 | – | 172 | – | 3 | – | 3 | |||||||
CMS 20–23 | – | – | 66 | 66 | – | – | 4 | 4 | |||||||
35,440 | 1,408 | 66 | 36,914 | 34 | 32 | 4 | 70 | ||||||||
Other | |||||||||||||||
CMS 1–5 | – | – | – | – | – | – | – | – | |||||||
CMS 6–10 | 501 | – | – | 501 | – | – | – | – | |||||||
CMS 11–14 | – | – | – | – | – | – | – | – | |||||||
CMS 15–18 | – | – | – | – | – | – | – | – | |||||||
CMS 19 | – | – | – | – | – | – | – | – | |||||||
CMS 20–23 | – | – | – | – | – | – | – | – | |||||||
501 | – | – | 501 | – | – | – | – | ||||||||
Total | 55,709 | 2,190 | 91 | 57,990 | 57 | 53 | 4 | 114 | |||||||
In respect of: | |||||||||||||||
Retail | 19,768 | 782 | 25 | 20,575 | 23 | 21 | – | 44 | |||||||
Commercial Banking | 35,440 | 1,408 | 66 | 36,914 | 34 | 32 | 4 | 70 | |||||||
Other | 501 | – | – | 501 | – | – | – | – | |||||||
Total | 55,709 | 2,190 | 91 | 57,990 | 57 | 53 | 4 | 114 | |||||||
2022 | 2021 | ||||||||||
Investment grade1 £m | Other2 £m | Total £m | Investment grade1 £m | Other2 £m | Total £m | ||||||
Government securities | 247 | – | 247 | 202 | – | 202 | |||||
Asset-backed securities: | |||||||||||
Mortgage-backed securities | 3,423 | – | 3,423 | 1,151 | – | 1,151 | |||||
Other asset-backed securities | 1,384 | – | 1,384 | 1,115 | – | 1,115 | |||||
4,807 | – | 4,807 | 2,266 | – | 2,266 | ||||||
Corporate and other debt securities | 1,422 | – | 1,422 | 1,288 | – | 1,288 | |||||
Gross exposure | 6,476 | – | 6,476 | 3,756 | – | 3,756 | |||||
Allowance for impairment losses | (5) | – | |||||||||
Total debt securities held at amortised cost | 6,471 | 3,756 | |||||||||
2022 | 2021 | ||||||||||
Investment grade1 £m | Other2 £m | Total £m | Investment grade1 £m | Other2 £m | Total £m | ||||||
Debt securities: | |||||||||||
Government securities | 11,077 | – | 11,077 | 14,445 | – | 14,445 | |||||
Asset-backed securities | 87 | – | 87 | – | – | – | |||||
Corporate and other debt securities | 11,470 | 41 | 11,511 | 11,084 | – | 11,084 | |||||
22,634 | 41 | 22,675 | 25,529 | – | 25,529 | ||||||
Total financial assets at fair value through other comprehensive income | 22,634 | 41 | 22,675 | 25,529 | – | 25,529 | |||||
2022 | 2021 | ||||||||||
Investment grade1 £m | Other2 £m | Total £m | Investment grade1 £m | Other2 £m | Total £m | ||||||
Trading and other | 2,000 | 101 | 2,101 | 2,847 | 86 | 2,933 | |||||
Hedging | 1 | 5 | 6 | 32 | – | 32 | |||||
2,001 | 106 | 2,107 | 2,879 | 86 | 2,965 | ||||||
Due from fellow Lloyds Banking Group undertakings | 5,686 | 3,933 | |||||||||
Total derivative financial instruments | 7,793 | 6,898 | |||||||||
2022 | 2021 | ||||||||
Stage 1 £m | Stage 2 £m | Stage 3 £m | Total gross £m | Stage 1 £m | Stage 2 £m | Stage 3 £m | Total gross £m | ||
Less than 70 per cent | 32,367 | 5,910 | 886 | 39,163 | 37,113 | 4,072 | 432 | 41,617 | |
70 per cent to 80 per cent | 1,656 | 411 | 36 | 2,103 | 2,588 | 246 | 29 | 2,863 | |
80 per cent to 90 per cent | 446 | 185 | 13 | 644 | 612 | 49 | 17 | 678 | |
90 per cent to 100 per cent | 105 | 36 | 3 | 144 | 90 | 10 | 3 | 103 | |
Greater than 100 per cent | 1 | 18 | 6 | 25 | 12 | 20 | 5 | 37 | |
Total | 34,575 | 6,560 | 944 | 42,079 | 40,415 | 4,397 | 486 | 45,298 | |
2022 £m | 2021 £m | |
Financial assets at fair value through other comprehensive income | 5,669 | 2,946 |
Total | 5,669 | 2,946 |
Up to 1 month £m | 1–3 months £m | 3–12 months £m | 1–5 years £m | Over 5 years £m | Total £m | ||||||
At 31 December 2022 | |||||||||||
Deposits from banks | 3,727 | 28 | 179 | 478 | 82 | 4,494 | |||||
Customer deposits | 264,274 | 1,538 | 2,085 | 1,468 | 110 | 269,475 | |||||
Repurchase agreements at amortised cost | 12,279 | 6,188 | – | – | – | 18,467 | |||||
Financial liabilities at fair value through profit or loss | 84 | 60 | 100 | 1,565 | 3,709 | 5,518 | |||||
Debt securities in issue | 3,854 | 7,715 | 6,186 | 20,961 | 4,839 | 43,555 | |||||
Lease liabilities | 6 | 29 | 95 | 297 | 351 | 778 | |||||
Subordinated liabilities | 24 | 26 | 488 | 4,264 | 7,455 | 12,257 | |||||
Total non-derivative financial liabilities | 284,248 | 15,584 | 9,133 | 29,033 | 16,546 | 354,544 | |||||
Derivative financial liabilities: | |||||||||||
Gross settled derivatives – outflows | 2,730 | 3,214 | 3,433 | 7,274 | 3,084 | 19,735 | |||||
Gross settled derivatives – inflows | (1,877) | (2,989) | (3,303) | (7,210) | (3,135) | (18,514) | |||||
Gross settled derivatives – net flows | 853 | 225 | 130 | 64 | (51) | 1,221 | |||||
Net settled derivative liabilities | 2,298 | (19) | 54 | 271 | 213 | 2,817 | |||||
Total derivative financial liabilities | 3,151 | 206 | 184 | 335 | 162 | 4,038 | |||||
At 31 December 2021 | |||||||||||
Deposits from banks | 1,812 | 136 | 31 | 813 | 224 | 3,016 | |||||
Customer deposits | 266,179 | 989 | 618 | 765 | 432 | 268,983 | |||||
Repurchase agreements at amortised cost | 466 | 407 | 73 | – | – | 946 | |||||
Financial liabilities at fair value through profit or loss | 81 | 21 | 242 | 1,572 | 4,645 | 6,561 | |||||
Debt securities in issue | 3,802 | 4,559 | 5,426 | 22,704 | 3,815 | 40,306 | |||||
Lease liabilities | 1 | 32 | 83 | 300 | 434 | 850 | |||||
Subordinated liabilities | 9 | 17 | 339 | 4,708 | 5,254 | 10,327 | |||||
Total non-derivative financial liabilities | 272,350 | 6,161 | 6,812 | 30,862 | 14,804 | 330,989 | |||||
Derivative financial liabilities: | |||||||||||
Gross settled derivatives – outflows | 2,545 | 544 | 3,827 | 10,416 | 4,343 | 21,675 | |||||
Gross settled derivatives – inflows | (2,452) | (407) | (3,769) | (10,108) | (4,095) | (20,831) | |||||
Gross settled derivatives – net flows | 93 | 137 | 58 | 308 | 248 | 844 | |||||
Net settled derivative liabilities | 2,125 | (21) | (6) | 145 | 320 | 2,563 | |||||
Total derivative financial liabilities | 2,218 | 116 | 52 | 453 | 568 | 3,407 |
Within 1 year £m | 1–3 years £m | 3–5 years £m | Over 5 years £m | Total £m | |
At 31 December 2022 | |||||
Acceptances and endorsements | 58 | – | – | – | 58 |
Other contingent liabilities | 1,650 | 540 | 180 | 375 | 2,745 |
Total contingent liabilities | 1,708 | 540 | 180 | 375 | 2,803 |
Lending commitments and guarantees | 26,090 | 6,984 | 10,187 | 17,449 | 60,710 |
Other commitments | – | – | 10 | 29 | 39 |
Total commitments and guarantees | 26,090 | 6,984 | 10,197 | 17,478 | 60,749 |
Total contingents, commitments and guarantees | 27,798 | 7,524 | 10,377 | 17,853 | 63,552 |
At 31 December 2021 | |||||
Acceptances and endorsements | 21 | – | – | – | 21 |
Other contingent liabilities | 1,227 | 216 | 227 | 386 | 2,056 |
Total contingent liabilities | 1,248 | 216 | 227 | 386 | 2,077 |
Lending commitments and guarantees | 30,872 | 14,213 | 9,180 | 3,670 | 57,935 |
Other commitments | – | 18 | – | 37 | 55 |
Total commitments and guarantees | 30,872 | 14,231 | 9,180 | 3,707 | 57,990 |
Total contingents, commitments and guarantees | 32,120 | 14,447 | 9,407 | 4,093 | 60,067 |
2022 £m | 2021 £m | 2020 £m | |
Change in amounts due from fellow Lloyds Banking Group undertakings | (10,858) | 20,347 | 73,506 |
Change in other financial assets held at amortised cost | 7,993 | 15,167 | (1,815) |
Change in financial assets at fair value through profit or loss | (465) | (2,805) | (1,021) |
Change in derivative financial instruments | (1,985) | 6,085 | 753 |
Change in other operating assets | (53) | 10 | 239 |
Change in operating assets | (5,368) | 38,804 | 71,662 |
2022 £m | 2021 £m | 2020 £m | |
Change in deposits from banks and repurchase agreements | 4,433 | (7,479) | 3,182 |
Change in customer deposits and repurchase agreements | 16,356 | 4,231 | 24,711 |
Change in amounts due to fellow Lloyds Banking Group undertakings | (4,182) | (12,468) | (73,233) |
Change in financial liabilities at fair value through profit or loss | (58) | 1,828 | 135 |
Change in derivative financial instruments | 4,245 | (4,970) | (3,139) |
Change in debt securities in issue | 1,380 | (9,670) | (13,400) |
Change in other operating liabilities1 | 88 | 513 | (249) |
Change in operating liabilities | 22,262 | (28,015) | (61,993) |
2022 £m | 2021 £m | 2020 £m | |
Depreciation and amortisation | 1,462 | 1,671 | 1,325 |
Dividends and distributions on other equity instruments received from subsidiary undertakings | (1,975) | (1,503) | (211) |
Allowance for loan losses | 567 | (648) | 1,742 |
Write-off of allowance for loan losses, net of recoveries | (346) | (442) | (622) |
Impairment charge (credit) relating to undrawn balances | 73 | (134) | 155 |
Impairment of financial assets at fair value through other comprehensive income | 6 | 1 | 1 |
Regulatory and legal provisions | 127 | 196 | 312 |
Other provision movements | (95) | (71) | 18 |
Additional capital injections to subsidiaries | (46) | (36) | (33) |
Net charge in respect of defined benefit schemes | 54 | 114 | 121 |
Foreign exchange impact on balance sheet1 | (246) | (48) | 491 |
Interest expense on subordinated liabilities | 300 | 484 | 534 |
Other non-cash items | (959) | (867) | (339) |
Total non-cash items | (1,078) | (1,283) | 3,494 |
Contributions to defined benefit schemes | (1,607) | (823) | (650) |
Payments in respect of regulatory and legal provisions | (132) | (190) | (959) |
Other | – | 237 | (65) |
Total other items | (1,739) | (776) | (1,674) |
Non-cash and other items | (2,817) | (2,059) | 1,820 |
2022 £m | 2021 £m | 2020 £m | |||
Cash and balances at central banks | 66,783 | 49,618 | 45,753 | ||
Less mandatory reserve deposits1 | (957) | (963) | (954) | ||
65,826 | 48,655 | 44,799 | |||
Loans and advances to banks and reverse repurchase agreements | 11,534 | 7,287 | 5,656 | ||
Less amounts with a maturity of three months or more | (6,571) | (3,712) | (2,387) | ||
4,963 | 3,575 | 3,269 | |||
Total cash and cash equivalents | 70,789 | 52,230 | 48,068 |
Name of undertaking | Notes |
A G Finance Ltd | 17 ii iii |
A.C.L. Ltd | 1 i |
ACL Autolease Holdings Ltd | 1 i |
Alex Lawrie Factors Ltd | 9 i |
Alex. Lawrie Receivables Financing Ltd | 9 i |
Amberdate Ltd | 1 i v |
Anglo Scottish Utilities Partnership 1 | + * |
Aquilus Ltd | 13 i ‡ |
Automobile Association Personal Finance Ltd | 4 i |
Bank of Scotland (B G S) Nominees Ltd | 5 * |
Bank of Scotland Branch Nominees Ltd | 5 i |
Bank of Scotland Central Nominees Ltd | 5 * |
Bank of Scotland Edinburgh Nominees Ltd | 5 * |
Bank of Scotland Equipment Finance Ltd | 13 i ‡ |
Bank of Scotland plc | 5 i v |
Bank of Scotland Structured Asset Finance Ltd | 1 i |
Bank of Scotland Transport Finance 1 Ltd | 13 i ‡ |
Bank of Wales Ltd | 20 i |
Barents Leasing Ltd | 1 i |
Birchcrown Finance Ltd | 1 v vii |
Birmingham Midshires Financial Services Ltd | 4 i ‡ |
Birmingham Midshires Mortgage Services Ltd | 13 i ‡ |
Black Horse (TRF) Ltd | 1 i |
Black Horse Finance Holdings Ltd | 1 ii ix |
Black Horse Finance Management Ltd | 1 i |
Black Horse Group Ltd | 1 i v |
Black Horse Ltd | 1 i |
Boltro Nominees Ltd | 1 i |
BOS (Ireland) Property Services 2 Ltd | 16 i |
BOS (Ireland) Property Services Ltd | 27 i ‡ |
BOS (Shared Appreciation Mortgages (Scotland)) Ltd | 4 i |
BOS (Shared Appreciation Mortgages (Scotland) No. 2) Ltd | 4 i |
BOS (Shared Appreciation Mortgages (Scotland) No. 3) Ltd | 4 i |
BOS (Shared Appreciation Mortgages) No. 1 plc | 4 # i |
BOS (Shared Appreciation Mortgages) No. 2 plc | 4 # i |
BOS (Shared Appreciation Mortgages) No. 3 plc | 4 # i |
BOS (Shared Appreciation Mortgages) No. 4 plc | 4 # i |
BOS (Shared Appreciation Mortgages) No. 5 plc | 4 i |
BOS (Shared Appreciation Mortgages) No. 6 plc | 4 i |
BOS Personal Lending Ltd | 4 ii iii |
BOSSAF Rail Ltd | 1 i |
British Linen Leasing (London) Ltd | 5 i |
British Linen Leasing Ltd | 5 i |
British Linen Shipping Ltd | 5 i |
Capital 1945 Ltd | 20 i |
Name of undertaking | Notes |
Capital Bank Leasing 3 Ltd | 13 i ‡ |
Capital Bank Leasing 5 Ltd | 20 i |
Capital Bank Leasing 12 Ltd | 5 i |
Capital Bank Property Investments (3) Ltd | 20 i |
Capital Personal Finance Ltd | 4 i |
Cardnet Merchant Services Ltd | 1 # ^ iii vi |
Cashfriday Ltd | 9 i |
Caveminster Ltd | 1 i |
Cedar Holdings Ltd | 13 i ‡ |
CF Asset Finance Ltd | 13 i ‡ |
Cheltenham & Gloucester plc | 12 i |
Cloak Lane Funding S.A.R.L. | 8 i |
Cloak Lane Investments S.A.R.L. | 8 i |
Conquest Securities Ltd | 1 v vii |
Corbiere Asset Investments Ltd | 1 ii iii |
Dunstan Investments (UK) Ltd | 1 i |
Eurolead Services Holdings Ltd | 9 i |
First Retail Finance (Chester) Ltd | 4 i |
Forthright Finance Ltd | 20 i |
General Leasing (No. 12) Ltd | 1 i |
Gresham Nominee 1 Ltd | 1 i |
Gresham Nominee 2 Ltd | 1 i |
Halifax Group Ltd | 4 i |
Halifax Leasing (March No.2) Ltd | 1 i |
Halifax Leasing (September) Ltd | 1 i |
Halifax Ltd | 4 i |
Halifax Loans Ltd | 4 i |
Halifax Pension Nominees Ltd | 1 i |
Halifax Share Dealing Ltd | 4 i |
Halifax Vehicle Leasing (1998) Ltd | 4 i |
HBOS Covered Bonds LLP | 4 * |
HBOS Final Salary Trust Ltd | 5 i |
HBOS plc | 5 i iv vi |
HBOS Social Housing Covered Bonds LLP | 20 * |
HBOS UK Ltd | 5 i |
Heidi Finance Holdings (UK) Ltd | 1 i |
Hill Samuel Bank Ltd | 1 i |
Hill Samuel Finance Ltd | 1 v x |
Hill Samuel Leasing Co. Ltd | 1 i |
Home Shopping Personal Finance Ltd | 4 i |
HSDL Nominees Ltd | 4 i |
HVF Ltd | 1 i |
Hyundai Car Finance Ltd | 17 ii iii |
IBOS Finance Ltd | 20 i |
Intelligent Finance Software Ltd | 4 i ‡ |
International Motors Finance Ltd | 17 ii # |
Kanaalstraat Funding C.V. | 28 * |
LB Healthcare Trustee Ltd | 1 i |
LB Share Schemes Trustees Ltd | 1 i ‡ |
LBCF Ltd | 9 i |
LBI Leasing Ltd | 1 i |
Lex Autolease (CH) Ltd | 1 i |
Lex Autolease (VC) Ltd | 1 i |
Lex Autolease Carselect Ltd | 1 i |
Lex Autolease Ltd | 1 i |
Lex Vehicle Leasing (Holdings) Ltd | 13 ii iii xi ‡ |
Name of undertaking | Notes |
Lex Vehicle Leasing Ltd | 13 i ‡ |
Lime Street (Funding) Ltd | 13 i ‡ |
Lloyds (Gresham) Ltd | 1 i xi |
Lloyds (Nimrod) Specialist Finance Ltd | 1 i |
Lloyds Asset Leasing Ltd | 1 i |
Lloyds Bank (Colonial & Foreign) Nominees Ltd | 1 i |
Lloyds Bank (I.D.) Nominees Ltd | 1 i |
Lloyds Bank Asset Finance Ltd | 1 i |
Lloyds Bank Commercial Finance Ltd | 9 i |
Lloyds Bank Commercial Finance Scotland Ltd | 23 i |
Lloyds Bank Corporate Asset Finance (HP) Ltd | 1 i |
Lloyds Bank Corporate Asset Finance (No.2) Ltd | 1 i |
Lloyds Bank Corporate Asset Finance (No.3) Ltd | 1 i |
Lloyds Bank Corporate Asset Finance (No.4) Ltd | 1 i |
Lloyds Bank Covered Bonds LLP | 26 * |
Lloyds Bank Covered Bonds (LM) Ltd | 26 i |
Lloyds Bank Equipment Leasing (No. 1) Ltd | 1 i |
Lloyds Bank Equipment Leasing (No. 7) Ltd | 1 i |
Lloyds Bank Equipment Leasing (No. 9) Ltd | 1 i |
Lloyds Bank Financial Services (Holdings) Ltd | 1 i v |
Lloyds Bank General Leasing (No. 3) Ltd | 1 i |
Lloyds Bank General Leasing (No. 5) Ltd | 13 i ‡ |
Lloyds Bank General Leasing (No. 11) Ltd | 1 i |
Lloyds Bank General Leasing (No. 17) Ltd | 13 i ‡ |
Lloyds Bank GmbH | 29 i |
Lloyds Bank Leasing (No. 6) Ltd | 1 i |
Lloyds Bank Leasing Ltd | 1 i |
Lloyds Bank Maritime Leasing (No. 10) Ltd | 1 i |
Lloyds Bank Maritime Leasing (No. 17) Ltd | 13 i ‡ |
Lloyds Bank Nominees Ltd | 1 i |
Lloyds Bank Offshore Pension Trust Ltd | 21 i |
Lloyds Bank Pension ABCS (No. 1) LLP | 1 * |
Lloyds Bank Pension ABCS (No. 2) LLP | 1 * |
Lloyds Bank Pension Trust (No. 1) Ltd | 1 i |
Lloyds Bank Pension Trust (No. 2) Ltd | 1 i |
Lloyds Bank Pensions Property (Guernsey) Ltd | 30 ii iii |
Lloyds Bank Property Company Ltd | 1 i |
Lloyds Bank S.F. Nominees Ltd | 1 i |
Lloyds Bank Subsidiaries Ltd | 1 i |
Lloyds Bank Trustee Services Ltd | 1 i |
Lloyds Banking Group Pensions Trustees Ltd | 1 i |
Lloyds Capital GP Ltd | 10 i |
Lloyds Far East S.A.R.L. | 8 i |
Lloyds General Leasing Ltd | 1 i |
Lloyds Hypotheken B.V. | 25 i |
Lloyds Industrial Leasing Ltd | 1 i |
Lloyds Investment Bonds Ltd | 13 i ‡ |
Lloyds Investment Securities No.5 Ltd | 1 i |
Lloyds Leasing (North Sea Transport) Ltd | 1 i |
Lloyds Leasing Developments Ltd | 1 i |
Lloyds Offshore Global Services Private Ltd | 18 i |
Lloyds Plant Leasing Ltd | 1 i |
Lloyds Portfolio Leasing Ltd | 1 i |
Lloyds Project Leasing Ltd | 1 i |
Lloyds Property Investment Company No. 4 Ltd | 1 i |
Lloyds Secretaries Ltd | 1 i |
Name of undertaking | Notes |
Lloyds TSB Pacific Ltd | 14 i |
Lloyds UDT Asset Rentals Ltd | 13 i ‡ |
Lloyds UDT Leasing Ltd | 1 i |
Lloyds UDT Ltd | 13 i ‡ |
Lloyds Your Tomorrow Trustee Ltd | 1 i |
Loans.co.uk Ltd | 20 i |
London Taxi Finance Ltd | 1 ii iii |
Lotus Finance Ltd | 17 ii iii |
LTGP Limited Partnership Incorporated | 30 * |
Maritime Leasing (No. 19) Ltd | 1 i |
MBNA Ltd | 20 i |
Membership Services Finance Ltd | 4 i |
Mitre Street Funding S.A.R.L. | 8 i |
NFU Mutual Finance Ltd | 20 ii viii # |
Nordic Leasing Ltd | 13 i ‡ |
NWS Trust Ltd | 5 i |
Pacific Leasing Ltd | 1 i |
Perry Nominees Ltd | 1 i |
PIPS Asset Investments Ltd | 1 ii iii |
Proton Finance Ltd | 17 ii iii |
R.F. Spencer and Company Ltd | 9 i |
Ranelagh Nominees Ltd | 1 i |
Retail Revival (Burgess Hill) Investments Ltd | 1 i |
Savban Leasing Ltd | 1 i |
Scotland International Finance B.V. | 28 i |
Scottish Widows Pension Trustees Ltd | 3 i |
Scottish Widows Services Ltd | 3 i |
Seabreeze Leasing Ltd | 1 i |
Seaspirit Leasing Ltd | 1 i |
Share Dealing Nominees Ltd | 4 i |
Shogun Finance Ltd | 17 ii iii |
St. Mary’s Court Investments | 1 i |
Standard Property Investment (1987) Ltd | 5 ii # |
Sussex County Homes Ltd | 4 i |
Suzuki Financial Services Ltd | 17 ii # |
The Agricultural Mortgage Corporation plc | 22 i |
The British Linen Company Ltd | 5 i |
The Mortgage Business plc | 4 i |
Thistle Leasing | + * |
Tower Hill Property Investments (7) Ltd | 20 i # |
Tower Hill Property Investments (10) Ltd | 20 i # |
Tranquility Leasing Ltd | 1 i |
UDT Budget Leasing Ltd | 13 i ‡ |
United Dominions Leasing Ltd | 1 i |
United Dominions Trust Ltd | 1 i |
Upsaala Ltd | 27 i ‡ |
Ward Nominees (Abingdon) Ltd | 1 i |
Ward Nominees (Birmingham) Ltd | 1 i |
Ward Nominees (Bristol) Ltd | 1 i |
Waymark Asset Investments Ltd | 1 ii iii |
Wood Street Leasing Ltd | 1 i |
Name of undertaking | Notes |
Addison Social Housing Holdings Ltd | 31 |
Cancara Asset Securitisation Ltd | 32 |
Candide Financing 2021-1 B.V. | 15 |
Cardiff Auto Receivables Securitisation 2018-1 plc | 6 ‡ |
Cardiff Auto Receivables Securitisation 2019-1 plc | 26 |
Cardiff Auto Receivables Securitisation 2022-1 plc | 26 |
Cardiff Auto Receivables Securitisation Holdings Ltd | 26 |
Cheltenham Securities 2017 Ltd | 31 |
Deva Financing Holdings Ltd | 26 |
Deva Financing plc | 6 ‡ |
Edgbaston RMBS 2010-1 plc | 6 ‡ |
Edgbaston RMBS Holdings Ltd | 26 |
Elland RMBS 2018 plc | 26 |
Elland RMBS Holdings Ltd | 26 |
Fontwell Securities 2016 Ltd | 31 |
Fontwell II Securities 2020 DAC | 24 |
Gresham Receivables (No. 3) Ltd | 32 |
Gresham Receivables (No. 10) Ltd | 32 |
Gresham Receivables (No.11) UK Ltd | 19 ‡ |
Gresham Receivables (No. 13) UK Ltd | 7 |
Gresham Receivables (No. 14) UK Ltd | 19 ‡ |
Gresham Receivables (No. 15) UK Ltd | 7 |
Gresham Receivables (No. 16) UK Ltd | 7 |
Gresham Receivables (No. 19) UK Ltd | 19 ‡ |
Gresham Receivables (No. 20) Ltd | 32 |
Gresham Receivables (No. 24) Ltd | 32 |
Gresham Receivables (No. 25) UK Ltd | 19 ‡ |
Gresham Receivables (No. 26) UK Ltd | 19 ‡ |
Gresham Receivables (No.27) UK Ltd | 7 |
Gresham Receivables (No.28) Ltd | 32 |
Gresham Receivables (No.29) Ltd | 32 |
Gresham Receivables (No. 30) UK Ltd | 19 ‡ |
Gresham Receivables (No. 31) UK Ltd | 19 ‡ |
Gresham Receivables (No. 32) UK Ltd | 7 |
Gresham Receivables (No. 33) UK Ltd | 19 ‡ |
Gresham Receivables (No.34) UK Ltd | 7 |
Gresham Receivables (No.35) Ltd | 32 |
Gresham Receivables (No.36) UK Ltd | 7 |
Gresham Receivables (No.37) UK Ltd | 7 |
Gresham Receivables (No.38) UK Ltd | 7 |
Gresham Receivables (No.39) UK Ltd | 7 |
Gresham Receivables (No.40) UK Ltd | 7 |
Gresham Receivables (No.41) UK Ltd | 7 |
Gresham Receivables (No.44) UK Ltd | 7 |
Gresham Receivables (No.45) UK Ltd | 7 |
Gresham Receivables (No.46) UK Ltd | 7 |
Gresham Receivables (No.47) UK Ltd | 7 |
Gresham Receivables (No.48) UK Ltd | 7 |
Guildhall Asset Purchasing Company (No.11) UK Ltd | 7 |
Housing Association Risk Transfer 2019 DAC | 24 |
Leicester Securities 2014 Ltd | 2 ‡ |
Lingfield 2014 I Holdings Ltd | 26 |
Lingfield 2014 I plc | 6 ‡ |
Name of undertaking | Notes |
Lloyds Bank Covered Bonds (Holdings) Ltd | 26 |
Molineux RMBS 2016-1 plc | 26 |
Molineux RMBS Holdings Ltd | 26 |
Penarth Asset Securitisation Holdings Ltd | 26 |
Penarth Funding 1 Ltd | 26 |
Penarth Funding 2 Ltd | 26 |
Penarth Master Issuer plc | 26 |
Penarth Receivables Trustee Ltd | 26 |
Permanent Funding (No. 1) Ltd | 26 |
Permanent Funding (No. 2) Ltd | 26 |
Permanent Holdings Ltd | 26 |
Permanent Master Issuer plc | 26 |
Permanent Mortgages Trustee Ltd | 26 |
Permanent PECOH Holdings Ltd | 26 |
Permanent PECOH Ltd | 26 |
Salisbury Securities 2015 Ltd | 31 |
Salisbury II Securities 2016 Ltd | 31 |
Salisbury II-A Securities 2017 Ltd | 31 |
Salisbury III Securities 2019 DAC | 24 |
Stichting Holding Candide Financing | 15 |
Stichting Security Trustee Candide 2021-1 B.V. | 15 |
Syon Securities 2019 DAC | 24 |
Syon Securities 2020 DAC | 24 |
Syon Securities 2020-2 DAC | 24 |
Wetherby II Securities 2018 DAC | 11 |
Wetherby III Securities 2019 DAC | 24 |
Wetherby Securities 2017 Ltd | 31 |
Wilmington Cards 2021-1 plc | 26 |
Wilmington Cards Holdings Ltd | 26 |
Wilmington Receivables Trustee Ltd | 26 |
Name of undertaking | % of share class held by immediate parent company (or by the Group where this varies) | Registered office address | Notes |
Addison Social Housing Ltd | 20% | 1 Bartholomew Lane, London, EC2N 2AX | i |
Connery Ltd | 20% | 44 Esplanade, St. Helier, Jersey, JE4 9WG | i & |
Omnium Leasing Company | n/a | n/a | +* |
Registered office addresses | |
1 | 25 Gresham Street, London, EC2V 7HN |
2 | 13-18 City Quay, Dublin, D02 ED70 |
3 | 69 Morrison Street, Edinburgh, EH3 8YF |
4 | Trinity Road, Halifax, West Yorkshire, HX1 2RG |
5 | The Mound, Edinburgh, EH1 1YZ |
6 | 40a Station Road, Upminster, Essex, RM14 2TR |
7 | Wilmington Trust SP Services (London) Limited, Third Floor, 1 King’s Arms Yard, London, EC2R 7AF |
8 | 17 Boulevard F.W. Raiffeisen, L-2411 Luxembourg |
9 | 1 Brookhill Way, Banbury, Oxon, OX16 3EL |
10 | 6th Floor, 125 London Wall, London, EC2Y 5AS |
11 | 1-2 Victoria Buildings, Haddington Road, Dublin 4, Ireland |
12 | Barnett Way, Gloucester, GL4 3RL |
13 | 1 More London Place, London, SE1 2AF |
14 | 18th Floor, United Centre, 95 Queensway, Hong Kong |
15 | Basisweg 10, 1043 AP, Amsterdam |
16 | Suite 6, Rineanna House, Shannon Free Zone, Co. Clare, Ireland |
17 | St William House, Tresillian Terrace, Cardiff, CF10 5BH |
18 | 6/12, Primrose Road, Bangalore, 560025, India |
19 | 7th Floor, 21 Lombard Street, London, EC3V 9AH |
20 | Cawley House, Chester Business Park, Chester, CH4 9FB, United Kingdom |
21 | 3rd Floor, IFC5, Castle Street, St. Helier, JE2 3BY, Jersey |
22 | Keens House, Anton Mill Road, Andover, Hampshire, SP10 2NQ |
23 | 110 St. Vincent Street, Glasgow, G2 4QR |
24 | 5th Floor, The Exchange, George’s Dock, IFSC, Dublin 1, Ireland |
25 | Fascinatio Boulevard 1302, 2909VA Capelle aan den IJssel, Netherlands |
26 | 1 Bartholomew Lane, London, EC2N 2AX |
27 | McStay Luby, Dargan House, 21-23 Fenian Street, Dublin 2, Ireland |
28 | De Entrée 254, 1101 EE, Amsterdam, Netherlands |
29 | Karl-Liebknecht-STR. 5, D-10178 Berlin, Germany |
30 | PO Box 186, Royal Chambers, St Julian's Avenue, St Peter Port, GY1 4HP, Guernsey |
31 | 44 Esplanade, St. Helier, Jersey, JE4 9WG |
32 | 26 New Street, St. Helier, Jersey, JE2 3RA |
Notes | |
* | The undertaking does not have share capital |
+ | The undertaking does not have a registered office |
# | In relation to subsidiary undertakings, an undertaking external to the Group holds shares |
^ | Shares held directly by Lloyds Banking Group plc |
& | The Group holds voting rights of between 20% and 49.9% |
‡ | The undertaking is in liquidation |
i | Ordinary shares |
ii | A Ordinary shares |
iii | B Ordinary shares |
iv | Non-voting preference shares |
v | Preference shares |
vi | Non-voting deferred shares |
vii | Ordinary non-voting shares |
viii | C Ordinary shares |
ix | B Ordinary non-voting shares |
x | Ordinary limited voting shares |
xi | Redeemable preference shares |