Capital resources of the Bank on a transitional basis (audited) | At 31 Dec 2022 £m | At 31 Dec 2021 £m |
Common equity tier 1 | ||
Shareholders’ equity per balance sheet | 13,704 | 11,426 |
Cash flow hedging reserve | 65 | 63 |
Other adjustments1 | 133 | 379 |
13,902 | 11,868 | |
Less: deductions from common equity tier 1 | ||
Goodwill and other intangible assets | (672) | (444) |
Prudent valuation adjustment | (53) | (78) |
Removal of defined benefit pension surplus | (33) | (39) |
Significant investments | (54) | – |
Deferred tax assets | (1,806) | (1,767) |
Common equity tier 1 capital | 11,284 | 9,540 |
Additional tier 1 | ||
Additional tier 1 instruments | 2,200 | 2,222 |
Total tier 1 capital | 13,484 | 11,762 |
Tier 2 | ||
Tier 2 instruments | 1,500 | 1,500 |
Eligible provisions and other adjustments | 346 | (3) |
Total tier 2 capital | 1,846 | 1,497 |
Total capital resources | 15,330 | 13,259 |
Risk-weighted assets of the Bank (unaudited) | 73,084 | 60,807 |
Capital ratios of the Bank (unaudited) | ||
Common equity tier 1 capital ratio2 | 15.4% | 15.7% |
Tier 1 capital ratio2 | 18.5% | 19.3% |
Total capital ratio2 | 21.0% | 21.8% |
Risk-weighted assets of the Bank (unaudited) | At 31 Dec 2022 £m | At 31 Dec 2021 £m |
Foundation Internal Ratings Based (IRB) Approach | 2,605 | 3,476 |
Retail IRB Approach | 53,771 | 41,636 |
Other IRB Approach1 | 3,863 | 1,414 |
IRB Approach | 60,239 | 46,526 |
Standardised (STA) Approach1 | 4,307 | 4,803 |
Credit risk | 64,546 | 51,329 |
Securitisation1 | 463 | 357 |
Counterparty credit risk | 191 | 333 |
Credit valuation adjustment risk | 77 | 46 |
Operational risk | 7,751 | 8,488 |
Market risk | 56 | 254 |
Total risk-weighted assets | 73,084 | 60,807 |
Of which threshold risk-weighted assets2 | 3,190 | 628 |
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 stakeholder engagement | 3 to 5 |
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 39 to the financial statements, which include the accounting principles and policies. | •Balance sheet as at 31 December 2022; •Statement of comprehensive income for the year then ended; •Statement of changes in equity for the year then ended; •Cash flow statement for the year then ended; and •Notes 1 to 39 to the financial statements, which include the accounting principles and policies, as applicable to the Bank. |
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) •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 £125 million, which was determined on the basis of profit before tax and net assets. Overall materiality used for the Bank financial statements was £125 million, which was determined on the basis of net assets and capped at Group materiality. | |
Scoping | Our audit scope covers 92% of the Group’s revenue, 83% of the Group’s profit before tax, 98% of the Group’s total assets and 98% 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, 10, 14 and 37 in the financial statements | ||
The Group has recognised £3.3 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 the Retail division is determined on a collective basis using impairment models to calculate a probability weighted estimate by applying a probability of default, exposure at 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 the Retail division 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 which is 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 judgemental 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 the following: •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 of 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 including the multiple economic scenarios model, 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 and restructuring 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 24 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. | ||
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 | £125 million (2021: £155 million) | £125 million (2021: £155 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: •Net assets; and •Pre-tax profit. The determined materiality represents 11% of pre-tax profit and 0.8% of net assets. | The Bank materiality represents 0.8% 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 net assets as the primary benchmark and forecasted pre-tax profit as a supporting benchmark for our determination of materiality given the volatility of income statement items during the course of 2022. | 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. We have capped materiality at Group’s materiality. |
Group financial statements | Bank financial statements | |||
Performance materiality | 70% of Group materiality – £80 million (2021: 60% at £92 million) | 70% of Bank materiality – £80 million (2021: 60% at £92 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 | |||
Interest income | |||||
Interest expense | ( | ( | |||
Net interest income | 4 | ||||
Fee and commission income | |||||
Fee and commission expense | ( | ( | |||
Net fee and commission income | 5 | ||||
Net trading income | 6 | ||||
Other operating income | 7 | ||||
Other income | |||||
Total income | |||||
Operating expenses | 8 | ( | ( | ||
Impairment (charge) credit | 10 | ( | |||
Profit before tax | |||||
Tax expense | 11 | ( | ( | ||
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 |
The Group | The Bank | ||||||
2022 £ million | 2021 £ million | 2022 £ million | 2021 £ million | ||||
Profit for the year | 1,147 | 1,962 | |||||
Other comprehensive income | |||||||
Items that will not subsequently be reclassified to profit or loss: | |||||||
Post-retirement defined benefit scheme remeasurements: | |||||||
Remeasurements before tax | ( | ( | (12) | (12) | |||
Tax | 6 | – | |||||
( | ( | (6) | (12) | ||||
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 | ( | ( | (36) | (2) | |||
Income statement transfers in respect of disposals | 15 | – | |||||
Tax | 7 | (1) | |||||
( | (14) | (3) | |||||
Movements in cash flow hedging reserve: | |||||||
Effective portion of changes in fair value taken to other comprehensive income | ( | 11 | (48) | ||||
Net income statement transfers | ( | (11) | 19 | ||||
Tax | ( | (2) | 11 | ||||
( | ( | (2) | (18) | ||||
Movements in foreign currency translation reserve: | |||||||
Currency translation differences (tax: £nil) | – | – | |||||
Total other comprehensive (loss) income for the year, net of tax | ( | ( | (22) | (33) | |||
Total comprehensive income for the year | 1,125 | 1,929 | |||||
Total comprehensive income attributable to ordinary shareholders | 1,003 | 1,820 | |||||
Total comprehensive income attributable to other equity holders | 122 | 109 | |||||
Total comprehensive income attributable to equity holders | 1,125 | 1,929 | |||||
Total comprehensive income attributable to non-controlling interests | – | – | |||||
Total comprehensive income for the year | 1,125 | 1,929 | |||||
The Group | The Bank | ||||||||
Note | 2022 £ million | 2021 £ million | 2022 £ million | 2021 £ million | |||||
Assets | |||||||||
Cash and balances at central banks | 3,004 | 3,201 | |||||||
Items in the course of collection from banks | 47 | 47 | |||||||
Financial assets at fair value through profit or loss | 113 | 152 | |||||||
Derivative financial instruments | 12 | 3,476 | 4,264 | ||||||
Loans and advances to banks | 171 | 50 | |||||||
Loans and advances to customers | 283,621 | 276,005 | |||||||
Due from fellow Lloyds Banking Group undertakings | 22,999 | 23,919 | |||||||
Financial assets at amortised cost | 13 | 306,791 | 299,974 | ||||||
Financial assets at fair value through other comprehensive income | – | 2,047 | |||||||
Goodwill | 16 | 325 | 325 | ||||||
Current tax recoverable | 464 | 293 | |||||||
Deferred tax assets | 23 | 1,979 | 1,991 | ||||||
Investment in subsidiary undertakings | 17 | – | – | 1,313 | 84 | ||||
Retirement benefit assets | 47 | 58 | |||||||
Other assets | 18 | 1,593 | 1,476 | ||||||
Total assets | 319,152 | 313,912 | |||||||
Liabilities | |||||||||
Deposits from banks | 195 | 597 | |||||||
Customer deposits | 166,363 | 170,776 | |||||||
Repurchase agreements | 30,210 | 30,028 | |||||||
Due to fellow Lloyds Banking Group undertakings | 91,563 | 83,193 | |||||||
Items in the course of transmission to banks | 118 | 98 | |||||||
Financial liabilities at fair value through profit or loss | – | – | |||||||
Derivative financial instruments | 12 | 4,421 | 4,144 | ||||||
Notes in circulation | 1,280 | 1,321 | |||||||
Debt securities in issue | 20 | 5,376 | 6,140 | ||||||
Other liabilities | 22 | 1,227 | 1,288 | ||||||
Other provisions | 24 | 897 | 1,057 | ||||||
Subordinated liabilities | 25 | 1,598 | 1,644 | ||||||
Total liabilities | 303,248 | 300,286 | |||||||
Equity | |||||||||
Share capital | 26 | 5,847 | 5,847 | ||||||
Other reserves | 27 | 3,238 | 2,025 | ||||||
Retained profits1 | 28 | 4,619 | 3,554 | ||||||
Ordinary shareholders’ equity | 13,704 | 11,426 | |||||||
Other equity instruments | 29 | 2,200 | 2,200 | ||||||
Total equity excluding non-controlling interests | 15,904 | 13,626 | |||||||
Non-controlling interests | – | – | |||||||
Total equity | 15,904 | 13,626 | |||||||
Total equity and liabilities | 319,152 | 313,912 | |||||||
Robin Budenberg | Charlie Nunn | William Chalmers |
Chair | Chief Executive | Chief Financial Officer |
The Group | Attributable to ordinary shareholders | Other equity instruments £ million | Non- controlling interests £ million | Total £ million | |||||||||
Share capital £ million | Other reserves £ million | Retained profits £ 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 debt securities held at fair value through other comprehensive income, 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 | – | ( | ( | ( | – | – | ( | ||||||
Total comprehensive (loss) income1 | – | ( | |||||||||||
Transactions with owners | |||||||||||||
Dividends (note 30) | – | – | ( | ( | – | ( | ( | ||||||
Distributions on other equity instruments | – | – | – | – | ( | – | ( | ||||||
Capital contributions received | – | – | – | – | |||||||||
Total transactions with owners | – | – | ( | ( | ( | ( | ( | ||||||
At 31 December 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 debt securities held at fair value through other comprehensive income, net of tax | – | ( | – | ( | – | – | ( | ||||||
Movements in cash flow hedging reserve, net of tax | – | ( | – | ( | – | – | ( | ||||||
Total other comprehensive loss | – | ( | ( | ( | – | – | ( | ||||||
Total comprehensive (loss) income1 | – | ( | – | ||||||||||
Transactions with owners | |||||||||||||
Distributions on other equity instruments | – | – | – | – | ( | – | ( | ||||||
Capital contributions received | – | – | – | ||||||||||
Adjustment on transfer of subsidiary | – | – | ( | ( | – | – | ( | ||||||
Total transactions with owners | – | ( | – | ||||||||||
At 31 December 2022 | |||||||||||||
The Bank | Attributable to ordinary shareholders | Other equity instruments £ million | |||||||||
Share capital £ million | Other reserves £ million | Retained profits £ million | Total £ million | Total £ million | |||||||
At 1 January 2021 | 5,847 | 2,046 | 2,877 | 10,770 | 2,200 | 12,970 | |||||
Comprehensive income | |||||||||||
Profit for the year | – | – | 1,853 | 1,853 | 109 | 1,962 | |||||
Other comprehensive income | |||||||||||
Post-retirement defined benefit scheme remeasurements, net of tax | – | – | (12) | (12) | – | (12) | |||||
Movements in revaluation reserve in respect of debt securities held at fair value through other comprehensive income, net of tax | – | (3) | – | (3) | – | (3) | |||||
Movements in cash flow hedging reserve, net of tax | – | (18) | – | (18) | – | (18) | |||||
Total other comprehensive loss | – | (21) | (12) | (33) | – | (33) | |||||
Total comprehensive (loss) income1 | – | (21) | 1,841 | 1,820 | 109 | 1,929 | |||||
Transactions with owners | |||||||||||
Dividends (note 30) | – | – | (1,200) | (1,200) | – | (1,200) | |||||
Distributions on other equity instruments | – | – | – | – | (109) | (109) | |||||
Capital contributions received | – | – | 36 | 36 | – | 36 | |||||
Total transactions with owners | – | – | (1,164) | (1,164) | (109) | (1,273) | |||||
At 31 December 2021 | 5,847 | 2,025 | 3,554 | 11,426 | 2,200 | 13,626 | |||||
Comprehensive income | |||||||||||
Profit for the year | – | – | 1,025 | 1,025 | 122 | 1,147 | |||||
Other comprehensive income | |||||||||||
Post-retirement defined benefit scheme remeasurements, net of tax | – | – | (6) | (6) | – | (6) | |||||
Movements in revaluation reserve in respect of debt securities held at fair value through other comprehensive income, net of tax | – | (14) | – | (14) | – | (14) | |||||
Movements in cash flow hedging reserve, net of tax | – | (2) | – | (2) | – | (2) | |||||
Total other comprehensive loss | – | (16) | (6) | (22) | – | (22) | |||||
Total comprehensive (loss) income1 | – | (16) | 1,019 | 1,003 | 122 | 1,125 | |||||
Transactions with owners | |||||||||||
Dividends (note 30) | – | – | – | – | – | – | |||||
Distributions on other equity instruments | – | – | – | – | (122) | (122) | |||||
Capital contributions received | – | 1,229 | 46 | 1,275 | – | 1,275 | |||||
Total transactions with owners | – | 1,229 | 46 | 1,275 | (122) | 1,153 | |||||
At 31 December 2022 | 5,847 | 3,238 | 4,619 | 13,704 | 2,200 | 15,904 | |||||
Note | The Group | The Bank | |||||||
2022 £ million | 20211 £ million | 2022 £ million | 20211 £ million | ||||||
Profit before tax | 1,213 | 2,305 | |||||||
Adjustments for: | |||||||||
Change in operating assets | 38(A) | ( | ( | (6,488) | 2,044 | ||||
Change in operating liabilities | 38(B) | 3,169 | 2,275 | ||||||
Non-cash and other items | 38(C) | 478 | 251 | ||||||
Tax paid (net) | ( | ( | (208) | (511) | |||||
Net cash (used in) provided by operating activities | ( | (1,836) | 6,364 | ||||||
Cash flows from investing activities | |||||||||
Purchase of financial assets | ( | – | (107) | ||||||
Proceeds from sale and maturity of financial assets | 1,955 | 399 | |||||||
Dividends received from subsidiaries | – | – | 126 | 49 | |||||
Purchase of fixed assets | ( | ( | (158) | (171) | |||||
Proceeds from sale of fixed assets | – | 41 | |||||||
Net cash provided by investing activities | 1,923 | 211 | |||||||
Cash flows from financing activities | |||||||||
Dividends paid to ordinary shareholders | 30 | ( | – | (1,200) | |||||
Dividends paid to non-controlling interests | ( | – | – | ||||||
Distributions on other equity instruments | ( | ( | (122) | (109) | |||||
Interest paid on subordinated liabilities | ( | ( | (58) | (94) | |||||
Proceeds from issue of subordinated liabilities | – | 500 | |||||||
Repayment of subordinated liabilities | ( | ( | (44) | (5,714) | |||||
Net cash used in financing activities | ( | ( | (224) | (6,617) | |||||
Effect of exchange rate changes on cash and cash equivalents | ( | (1) | (1) | ||||||
Change in cash and cash equivalents | ( | ( | (138) | (43) | |||||
Cash and cash equivalents at beginning of year | 2,165 | 2,208 | |||||||
Cash and cash equivalents at end of year | 38(D) | 2,027 | 2,165 | ||||||
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: | 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 |
Weighted average effective interest rate | |||||
2022 % | 2021 % | 2022 £m | 2021 £m | ||
Interest income: | |||||
Financial assets held at amortised cost | 2.65 | 2.40 | 8,174 | 7,204 | |
Financial assets at fair value through other comprehensive income | 1.36 | 0.82 | 15 | 18 | |
Total interest income1 | 2.64 | 2.39 | 8,189 | 7,222 | |
Interest expense: | |||||
Deposits from banks and customer deposits | 1.42 | 0.79 | (2,986) | (1,733) | |
Repurchase agreements | 1.46 | 0.11 | (440) | (15) | |
Debt securities in issue2 | 2.15 | 0.44 | (146) | (30) | |
Lease liabilities | 2.23 | 2.29 | (13) | (15) | |
Subordinated liabilities | 3.55 | 2.07 | (57) | (105) | |
Total interest expense | 1.46 | 0.77 | (3,642) | (1,898) | |
Net interest income | 4,547 | 5,324 | |||
2022 £m | 2021 £m | |
Fee and commission income: | ||
Current accounts | 199 | 196 |
Credit and debit card fees | 341 | 245 |
Other | 50 | 91 |
Total fee and commission income | 590 | 532 |
Fee and commission expense | (310) | (277) |
Net fee and commission income | 280 | 255 |
2022 £m | 2021 £m | |
Foreign exchange | 23 | 12 |
Hedging and other gains | 28 | 35 |
Net trading income | 51 | 47 |
2022 £m | 2021 £m | |
Gains less losses on disposal of financial assets at fair value through other comprehensive income (note 27) | (15) | – |
Liability management | 11 | 112 |
Intercompany recharges and other | 57 | 25 |
Total other operating income | 53 | 137 |
2022 £m | 2021 £m | ||
Staff costs: | |||
Salaries | 814 | 841 | |
Social security costs | 89 | 94 | |
Pensions and other post-retirement benefit schemes | 181 | 196 | |
1,084 | 1,131 | ||
Premises and equipment costs: | |||
Rent and rates | 50 | 57 | |
Repairs and maintenance | 32 | 44 | |
Other | 91 | 39 | |
173 | 140 | ||
Other expenses: | |||
Communications and data processing | 78 | 94 | |
Advertising and promotion | 42 | 44 | |
Professional fees | 10 | 14 | |
Regulatory and legal provisions (note 24) | 91 | 982 | |
Amounts payable to fellow Lloyds Banking Group undertakings and other | 1,460 | 1,133 | |
1,681 | 2,267 | ||
Depreciation and amortisation: | |||
Depreciation of property, plant and equipment1 | 160 | 187 | |
Amortisation of other intangible assets | 64 | 97 | |
224 | 284 | ||
Total operating expenses | 3,162 | 3,822 |
2022 | 2021 | ||
UK | 23,173 | 25,123 | |
Overseas | 389 | 410 | |
Total | 23,562 | 25,533 |
2022 £m | 2021 £m | ||
Fees payable for the: | |||
– the audit of the Bank's current year Annual Report | 3.6 | 3.6 | |
– the audits of the Bank’s subsidiaries | 0.3 | 1.2 | |
– total audit fees in respect of the statutory audit of Group entities2 | 3.9 | 4.8 | |
– services normally provided in connection with statutory and regulatory filings or engagements | 0.2 | 0.1 | |
Total audit fees3 | 4.1 | 4.9 | |
Other audit-related fees3 | 0.2 | – | |
All other fees3 | – | 0.1 | |
Total non-audit services4 | 0.2 | 0.1 | |
Total fees payable to the Bank’s auditors by the Group | 4.3 | 5.0 |
Stage 1 £m | Stage 2 £m | Stage 3 £m | Total £m | ||||
Year ended 31 December 2022 | |||||||
Impact of transfers between stages | (20) | 250 | 292 | 522 | |||
Other changes in credit quality | (172) | (6) | 329 | 151 | |||
Additions and repayments | 38 | (4) | (73) | (39) | |||
Other items | (1) | (1) | – | (2) | |||
(135) | (11) | 256 | 110 | ||||
Total impairment (credit) charge | (155) | 239 | 548 | 632 | |||
In respect of: | |||||||
Loans and advances to customers | (169) | 212 | 548 | 591 | |||
Due from fellow Lloyds Banking Group undertakings | 11 | – | – | 11 | |||
Financial assets at amortised cost | (158) | 212 | 548 | 602 | |||
Loan commitments and financial guarantees | 3 | 27 | – | 30 | |||
Total impairment (credit) charge | (155) | 239 | 548 | 632 |
Stage 1 £m | Stage 2 £m | Stage 3 £m | Total £m | ||||
Year ended 31 December 2021 | |||||||
Impact of transfers between stages | 25 | (128) | 142 | 39 | |||
Other changes in credit quality | (107) | (124) | 69 | (162) | |||
Additions and repayments | (42) | (125) | (88) | (255) | |||
Other items | 2 | 1 | – | 3 | |||
(147) | (248) | (19) | (414) | ||||
Total impairment (credit) charge | (122) | (376) | 123 | (375) | |||
In respect of: | |||||||
Loans and advances to customers | (94) | (336) | 128 | (302) | |||
Due from fellow Lloyds Banking Group undertakings | (1) | – | – | (1) | |||
Financial assets at amortised cost | (95) | (336) | 128 | (303) | |||
Loan commitments and financial guarantees | (27) | (40) | (5) | (72) | |||
Total impairment (credit) charge | (122) | (376) | 123 | (375) |
2022 £m | 2021 £m | ||
UK corporation tax: | |||
Current tax on profit for the year | (231) | (655) | |
Adjustments in respect of prior years | 176 | 16 | |
(55) | (639) | ||
Foreign tax: | |||
Current tax on profit for the year | – | – | |
Adjustments in respect of prior years | (1) | 8 | |
(1) | 8 | ||
Current tax expense | (56) | (631) | |
Deferred tax: | |||
Current year | (70) | 282 | |
Adjustments in respect of prior years | 55 | (19) | |
Deferred tax (expense) credit | (15) | 263 | |
Tax expense | (71) | (368) |
2022 £m | 2021 £m | |
Profit before tax | 1,137 | 2,316 |
UK corporation tax thereon | (216) | (440) |
Impact of surcharge on banking profits | (87) | (235) |
Non-deductible costs: conduct charges | (2) | (155) |
Non-deductible costs: bank levy | (11) | (8) |
Other non-deductible costs | (7) | (21) |
Non-taxable income | 1 | 26 |
Tax relief on coupons on other equity instruments | 23 | 21 |
Remeasurement of deferred tax due to rate changes | (5) | 439 |
Differences in overseas tax rates | 3 | – |
Adjustments in respect of prior years | 230 | 5 |
Tax expense | (71) | (368) |
2022 | 2021 | ||||||||||
The Group | 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 | 183 | 6 | 2 | 273 | 3 | 5 | |||||
Currency swaps | 9,701 | 234 | 487 | 10,044 | 85 | 326 | |||||
Options purchased | 15 | – | – | 5 | – | – | |||||
Options written | 15 | – | – | 5 | – | – | |||||
9,914 | 240 | 489 | 10,327 | 88 | 331 | ||||||
Interest rate contracts: | |||||||||||
Interest rate swaps | 59,561 | 3,150 | 3,935 | 66,190 | 3,957 | 3,750 | |||||
Options purchased | 60 | 3 | – | 100 | 1 | – | |||||
Options written | 67 | – | 4 | 119 | – | 1 | |||||
59,688 | 3,153 | 3,939 | 66,409 | 3,958 | 3,751 | ||||||
Credit derivatives | 1,292 | 38 | – | 2,017 | 9 | 24 | |||||
Equity and other contracts | 38 | 10 | 141 | 44 | 11 | 166 | |||||
Total derivative assets/liabilities – trading and other | 70,932 | 3,441 | 4,569 | 78,797 | 4,066 | 4,272 | |||||
Hedging | |||||||||||
Derivatives designated as fair value hedges: | |||||||||||
Interest rate swaps | 745 | 36 | 1 | 2,306 | 198 | 48 | |||||
Total derivative assets/liabilities – hedging | 745 | 36 | 1 | 2,306 | 198 | 48 | |||||
Total recognised derivative assets/liabilities | 71,677 | 3,477 | 4,570 | 81,103 | 4,264 | 4,320 | |||||
The Group At 31 December 2022 | Maturity | ||||||||||
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 | |||||||||||
Interest rate swap | |||||||||||
Notional | – | – | – | 495 | 250 | 745 | |||||
Average fixed interest rate | – | – | – | 4.68% | 6.00% | ||||||
At 31 December 2021 | |||||||||||
Fair value hedges | |||||||||||
Interest rate | |||||||||||
Interest rate swap | |||||||||||
Notional | 85 | 28 | 1,095 | 792 | 306 | 2,306 | |||||
Average fixed interest rate | 4.25% | 4.38% | 4.69% | 4.71% | 5.67% | ||||||
Carrying amount of the hedging instrument | ||||
The Group 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 | ||||
Interest rate swaps | 745 | 36 | 1 | (116) |
Cash flow hedges | ||||
Interest rate | ||||
Interest rate swaps | – | – | – | – |
At 31 December 2021 | ||||
Fair value hedges | ||||
Interest rate | ||||
Interest rate swaps | 2,306 | 198 | 48 | (151) |
Cash flow hedges | ||||
Interest rate | ||||
Interest rate swaps | – | – | – | (43) |
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 | ||||||||||
The Group At 31 December 2022 | Continuing hedges £m | Discontinued hedges £m | |||||||||||
Assets £m | Liabilities £m | Assets £m | Liabilities £m | ||||||||||
Fair value hedges | |||||||||||||
Interest rate | |||||||||||||
Fixed rate issuance1 | – | 550 | – | 4 | 141 | ||||||||
Fixed rate bonds2 | – | – | – | – | (24) | ||||||||
Cash flow hedges | |||||||||||||
Interest rate | |||||||||||||
Customer loans3 | – | – | (113) | ||||||||||
Customer deposits4 | – | – | 23 | ||||||||||
At 31 December 2021 | |||||||||||||
Fair value hedges | |||||||||||||
Interest rate | |||||||||||||
Fixed rate issuance1 | – | 3,315 | – | 525 | 173 | ||||||||
Fixed rate bonds2 | 660 | – | (2) | – | (22) | ||||||||
Cash flow hedges | |||||||||||||
Interest rate | |||||||||||||
Customer loans3 | 53 | – | (113) | ||||||||||
Customer deposits4 | (11) | – | 23 | ||||||||||
Gain (loss) recognised in other comprehensive income £m | Hedge ineffectiveness recognised in the income statement1 £m | Amounts reclassified from reserves to income statement as: | |||
The Group At 31 December 2022 | Hedged item affected income statement £m | Income statement line item that includes reclassified amount | |||
Fair value hedges | |||||
Interest rate | |||||
Fixed rate issuance | 1 | ||||
Cash flow hedges | |||||
Interest rate | |||||
Customer loans | 14 | – | (14) | Interest income | |
Customer deposits | (3) | – | 3 | Interest expense | |
At 31 December 2021 | |||||
Fair value hedges | |||||
Interest rate | |||||
Fixed rate issuance | – | ||||
Cash flow hedges | |||||
Interest rate | |||||
Customer loans | (68) | (4) | 24 | Interest income | |
Customer deposits | 20 | 1 | (5) | Interest expense | |
2022 | 2021 | ||||||||||
The Bank | 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 | 183 | 6 | 2 | 273 | 3 | 5 | |||||
Currency swaps | 9,701 | 234 | 487 | 10,044 | 85 | 326 | |||||
Options purchased | 15 | – | – | 5 | – | – | |||||
Options written | 15 | – | – | 5 | – | – | |||||
9,914 | 240 | 489 | 10,327 | 88 | 331 | ||||||
Interest rate contracts: | |||||||||||
Interest rate swaps | 59,561 | 3,149 | 3,927 | 66,189 | 3,957 | 3,740 | |||||
Options purchased | 60 | 3 | – | 100 | 1 | – | |||||
Options written | 67 | – | 4 | 119 | – | 1 | |||||
59,688 | 3,152 | 3,931 | 66,408 | 3,958 | 3,741 | ||||||
Credit derivatives | 1,292 | 38 | – | 2,017 | 9 | 24 | |||||
Equity and other contracts | 10 | 10 | – | 11 | 11 | – | |||||
Total derivative assets/liabilities – trading and other | 70,904 | 3,440 | 4,420 | 78,763 | 4,066 | 4,096 | |||||
Hedging | |||||||||||
Derivatives designated as fair value hedges: | |||||||||||
Interest rate swaps | 745 | 36 | 1 | 2,306 | 198 | 48 | |||||
Total derivative assets/liabilities – hedging | 745 | 36 | 1 | 2,306 | 198 | 48 | |||||
Total recognised derivative assets/liabilities | 71,649 | 3,476 | 4,421 | 81,069 | 4,264 | 4,144 | |||||
The Bank At 31 December 2022 | Maturity | ||||||||||
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 | |||||||||||
Interest rate swap | |||||||||||
Notional | – | – | – | 495 | 250 | 745 | |||||
Average fixed interest rate | – | – | – | 4.68% | 6.00% | ||||||
At 31 December 2021 | |||||||||||
Fair value hedges | |||||||||||
Interest rate | |||||||||||
Interest rate swap | |||||||||||
Notional | 85 | 28 | 1,095 | 792 | 306 | 2,306 | |||||
Average fixed interest rate | 4.25% | 4.38% | 4.69% | 4.71% | 5.67% | ||||||
Carrying amount of the hedging instrument | ||||
The Bank 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 | ||||
Interest rate swaps | 745 | 36 | 1 | (116) |
Cash flow hedges | ||||
Interest rate | ||||
Interest rate swaps | – | – | – | – |
At 31 December 2021 | ||||
Fair value hedges | ||||
Interest rate | ||||
Interest rate swaps | 2,306 | 198 | 48 | (151) |
Cash flow hedges | ||||
Interest rate | ||||
Interest rate swaps | – | – | – | (43) |
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 | ||||||||||
The Bank At 31 December 2022 | Continuing hedges £m | Discontinued hedges £m | |||||||||||
Assets £m | Liabilities £m | Assets £m | Liabilities £m | ||||||||||
Fair value hedges | |||||||||||||
Interest rate | |||||||||||||
Fixed rate issuance1 | – | 550 | – | 4 | 141 | ||||||||
Fixed rate bonds2 | – | – | – | – | (24) | ||||||||
Cash flow hedges | |||||||||||||
Interest rate | |||||||||||||
Customer loans3 | – | – | (113) | ||||||||||
Customer deposits4 | – | – | 23 | ||||||||||
At 31 December 2021 | |||||||||||||
Fair value hedges | |||||||||||||
Interest rate | |||||||||||||
Fixed rate issuance1 | – | 3,315 | – | 525 | 173 | ||||||||
Fixed rate bonds2 | 660 | – | (2) | – | (22) | ||||||||
Cash flow hedges | |||||||||||||
Interest rate | |||||||||||||
Customer loans3 | 53 | – | (113) | ||||||||||
Customer deposits4 | (11) | – | 23 | ||||||||||
Gain (loss) recognised in other comprehensive income £m | Hedge ineffectiveness recognised in the income statement1 £m | Amounts reclassified from reserves to income statement as: | |||
The Bank At 31 December 2022 | Hedged item affected income statement £m | Income statement line item that includes reclassified amount | |||
Fair value hedges | |||||
Interest rate | |||||
Fixed rate issuance | 1 | ||||
Fixed rate bonds | – | ||||
Cash flow hedges | |||||
Interest rate | |||||
Customer loans | 14 | – | (14) | Interest income | |
Customer deposits | (3) | – | 3 | Interest expense | |
At 31 December 2021 | |||||
Fair value hedges | |||||
Interest rate | |||||
Fixed rate issuance | – | ||||
Fixed rate bonds | – | ||||
Cash flow hedges | |||||
Interest rate | |||||
Customer loans | (68) | (4) | 24 | Interest income | |
Customer deposits | 20 | 1 | (5) | Interest expense | |
Gross carrying amount | Allowance for expected credit losses | ||||||||||||||
The Group | 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 31 December 2022 | 198 | – | – | 198 | – | – | – | – | |||||||
Allowance for impairment losses | – | – | – | – | |||||||||||
Net carrying amount | 198 | – | – | 198 | |||||||||||
Loans and advances to customers | |||||||||||||||
At 1 January 2022 | 250,007 | 26,420 | 5,561 | 281,988 | 392 | 810 | 1,377 | 2,579 | |||||||
Exchange and other adjustments | 8 | – | – | 8 | – | – | 55 | 55 | |||||||
Acquisition of business1 | 5,345 | 875 | 125 | 6,345 | 61 | 110 | 57 | 228 | |||||||
Transfers to Stage 1 | 5,473 | (5,422) | (51) | – | 75 | (71) | (4) | – | |||||||
Transfers to Stage 2 | (24,077) | 24,327 | (250) | – | (31) | 64 | (33) | – | |||||||
Transfers to Stage 3 | (498) | (2,722) | 3,220 | – | (5) | (163) | 168 | – | |||||||
Impact of transfers between stages | (19,102) | 16,183 | 2,919 | – | (57) | 401 | 161 | 505 | |||||||
(18) | 231 | 292 | 505 | ||||||||||||
Other changes in credit quality | (187) | (14) | 329 | 128 | |||||||||||
Additions and repayments | 7,615 | 748 | (835) | 7,528 | 36 | (5) | (73) | (42) | |||||||
Charge (credit) to the income statement | (169) | 212 | 548 | 591 | |||||||||||
Advances written off | (350) | (350) | (350) | (350) | |||||||||||
Recoveries of advances written off in previous years | 94 | 94 | 94 | 94 | |||||||||||
At 31 December 2022 | 243,873 | 44,226 | 7,514 | 295,613 | 284 | 1,132 | 1,781 | 3,197 | |||||||
Allowance for impairment losses | (284) | (1,132) | (1,781) | (3,197) | |||||||||||
Net carrying amount | 243,589 | 43,094 | 5,733 | 292,416 | |||||||||||
Drawn ECL coverage2 (%) | 0.1 | 2.6 | 23.7 | 1.1 | |||||||||||
Due from fellow Lloyds Banking Group undertakings | |||||||||||||||
At 31 December 2022 | 16,062 | – | – | 16,062 | 14 | – | – | 14 | |||||||
Allowance for impairment losses | (14) | – | – | (14) | |||||||||||
Net carrying amount | 16,048 | – | – | 16,048 | |||||||||||
Total financial assets at amortised cost | 259,835 | 43,094 | 5,733 | 308,662 | |||||||||||
Allowance for expected credit losses | |||||||||||||||
The Group | Stage 1 £m | Stage 2 £m | Stage 3 £m | Total £m | |||||||||||
Undrawn balances | |||||||||||||||
At 1 January 2022 | 26 | 29 | 1 | 56 | |||||||||||
Exchange and other adjustments | – | – | – | – | |||||||||||
Acquisition of business1 | 24 | 5 | – | 29 | |||||||||||
Transfers to Stage 1 | 8 | (8) | – | – | |||||||||||
Transfers to Stage 2 | (3) | 3 | – | – | |||||||||||
Transfers to Stage 3 | – | (1) | 1 | – | |||||||||||
Impact of transfers between stages | (7) | 25 | (1) | 17 | |||||||||||
(2) | 19 | – | 17 | ||||||||||||
Other items taken to the income statement | 5 | 8 | – | 13 | |||||||||||
Charge to the income statement | 3 | 27 | – | 30 | |||||||||||
At 31 December 2022 | 53 | 61 | 1 | 115 | |||||||||||
Allowance for expected credit losses | |||||||||||||||
The Group | Stage 1 £m | Stage 2 £m | Stage 3 £m | Total £m | |||||||||||
In respect of: | |||||||||||||||
Loans and advances to customers | 284 | 1,132 | 1,781 | 3,197 | |||||||||||
Due from fellow Lloyds Banking Group undertakings | 14 | – | – | 14 | |||||||||||
Other assets | – | – | 1 | 1 | |||||||||||
Drawn balances | 298 | 1,132 | 1,782 | 3,212 | |||||||||||
Provisions in relation to loan commitments and financial guarantees | 53 | 61 | 1 | 115 | |||||||||||
Total | 351 | 1,193 | 1,783 | 3,327 | |||||||||||
Gross carrying amount | Allowance for expected credit losses | ||||||||||||||
The Group | 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 31 December 2021 | 51 | – | – | 51 | – | – | – | – | |||||||
Allowance for impairment losses | – | – | – | – | |||||||||||
Net carrying amount | 51 | – | – | 51 | |||||||||||
Loans and advances to customers | |||||||||||||||
At 1 January 2021 | 226,746 | 34,437 | 5,775 | 266,958 | 486 | 1,146 | 1,560 | 3,192 | |||||||
Exchange and other adjustments | (32) | – | (31) | (63) | – | – | 9 | 9 | |||||||
Transfers to Stage 1 | 9,790 | (9,779) | (11) | – | 210 | (206) | (4) | – | |||||||
Transfers to Stage 2 | (6,399) | 7,171 | (772) | – | (19) | 108 | (89) | – | |||||||
Transfers to Stage 3 | (309) | (1,356) | 1,665 | – | (6) | (118) | 124 | – | |||||||
Impact of transfers between stages | 3,082 | (3,964) | 882 | – | (160) | 100 | 110 | 50 | |||||||
25 | (116) | 141 | 50 | ||||||||||||
Other changes in credit quality | (83) | (107) | 75 | (115) | |||||||||||
Additions and repayments | 20,211 | (4,053) | (745) | 15,413 | (36) | (113) | (88) | (237) | |||||||
(Credit) charge to the income statement | (94) | (336) | 128 | (302) | |||||||||||
Advances written off | (382) | (382) | (382) | (382) | |||||||||||
Recoveries of advances written off in previous years | 62 | 62 | 62 | 62 | |||||||||||
At 31 December 2021 | 250,007 | 26,420 | 5,561 | 281,988 | 392 | 810 | 1,377 | 2,579 | |||||||
Allowance for impairment losses | (392) | (810) | (1,377) | (2,579) | |||||||||||
Net carrying amount | 249,615 | 25,610 | 4,184 | 279,409 | |||||||||||
Drawn ECL coverage (%) | 0.2 | 3.1 | 24.8 | 0.9 | |||||||||||
Due from fellow Lloyds Banking Group undertakings | |||||||||||||||
At 31 December 2021 | 17,065 | – | – | 17,065 | 3 | – | – | 3 | |||||||
Allowance for impairment losses | (3) | – | – | (3) | |||||||||||
Net carrying amount | 17,062 | – | – | 17,062 | |||||||||||
Total financial assets at amortised cost | 266,728 | 25,610 | 4,184 | 296,522 | |||||||||||
Allowance for expected credit losses | |||||||||||||||
The Group | Stage 1 £m | Stage 2 £m | Stage 3 £m | Total £m | |||||||||||
Undrawn balances | |||||||||||||||
At 1 January 2021 | 54 | 69 | 6 | 129 | |||||||||||
Exchange and other adjustments | (1) | – | – | (1) | |||||||||||
Transfers to Stage 1 | 20 | (20) | – | – | |||||||||||
Transfers to Stage 2 | (3) | 3 | – | – | |||||||||||
Transfers to Stage 3 | – | (2) | 2 | – | |||||||||||
Impact of transfers between stages | (17) | 7 | (1) | (11) | |||||||||||
– | (12) | 1 | (11) | ||||||||||||
Other items taken to the income statement | (27) | (28) | (6) | (61) | |||||||||||
Credit to the income statement | (27) | (40) | (5) | (72) | |||||||||||
At 31 December 2021 | 26 | 29 | 1 | 56 | |||||||||||
Allowance for expected credit losses | |||||||||||||||
The Group | Stage 1 £m | Stage 2 £m | Stage 3 £m | Total £m | |||||||||||
In respect of: | |||||||||||||||
Loans and advances to customers | 392 | 810 | 1,377 | 2,579 | |||||||||||
Due from fellow Lloyds Banking Group undertakings | 3 | – | – | 3 | |||||||||||
Other assets | – | – | 1 | 1 | |||||||||||
Drawn balances | 395 | 810 | 1,378 | 2,583 | |||||||||||
Provisions in relation to loan commitments and financial guarantees | 26 | 29 | 1 | 56 | |||||||||||
Total | 421 | 839 | 1,379 | 2,639 | |||||||||||
Gross carrying amount | Allowance for expected credit losses | ||||||||||||||
The Bank | 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 31 December 2022 | 171 | – | – | 171 | – | – | – | – | |||||||
Allowance for impairment losses | – | – | – | – | |||||||||||
Net carrying amount | 171 | – | – | 171 | |||||||||||
Loans and advances to customers | |||||||||||||||
At 1 January 2022 | 247,854 | 25,363 | 5,251 | 278,468 | 389 | 748 | 1,326 | 2,463 | |||||||
Exchange and other adjustments | 8 | 4 | 1 | 13 | – | 1 | 52 | 53 | |||||||
Transfers to Stage 1 | 5,405 | (5,355) | (50) | – | 74 | (71) | (3) | – | |||||||
Transfers to Stage 2 | (23,455) | 23,696 | (241) | – | (28) | 60 | (32) | – | |||||||
Transfers to Stage 3 | (473) | (2,506) | 2,979 | – | (5) | (146) | 151 | – | |||||||
Impact of transfers between stages | (18,523) | 15,835 | 2,688 | – | (55) | 360 | 153 | 458 | |||||||
(14) | 203 | 269 | 458 | ||||||||||||
Other changes in credit quality | (193) | (15) | 304 | 96 | |||||||||||
Additions and repayments | 8,104 | 844 | (763) | 8,185 | 34 | (2) | (57) | (25) | |||||||
Charge (credit) to the income statement | (173) | 186 | 516 | 529 | |||||||||||
Advances written off | (313) | (313) | (313) | (313) | |||||||||||
Recoveries of advances written off in previous years | 82 | 82 | 82 | 82 | |||||||||||
At 31 December 2022 | 237,443 | 42,046 | 6,946 | 286,435 | 216 | 935 | 1,663 | 2,814 | |||||||
Allowance for impairment losses | (216) | (935) | (1,663) | (2,814) | |||||||||||
Net carrying amount | 237,227 | 41,111 | 5,283 | 283,621 | |||||||||||
Drawn ECL coverage1 (%) | 0.1 | 2.2 | 23.9 | 1.0 | |||||||||||
Due from fellow Lloyds Banking Group undertakings | |||||||||||||||
At 31 December 2022 | 23,032 | – | 34 | 23,066 | 33 | – | 34 | 67 | |||||||
Allowance for impairment losses | (33) | – | (34) | (67) | |||||||||||
Net carrying amount | 22,999 | – | – | 22,999 | |||||||||||
Total financial assets at amortised cost | 260,397 | 41,111 | 5,283 | 306,791 | |||||||||||
Allowance for expected credit losses | |||||||||||||||
The Bank | Stage 1 £m | Stage 2 £m | Stage 3 £m | Total £m | |||||||||||
Undrawn balances | |||||||||||||||
At 1 January 2022 | 26 | 29 | 1 | 56 | |||||||||||
Exchange and other adjustments | – | (1) | – | (1) | |||||||||||
Transfers to Stage 1 | 8 | (8) | – | – | |||||||||||
Transfers to Stage 2 | (3) | 3 | – | – | |||||||||||
Transfers to Stage 3 | – | (1) | 1 | – | |||||||||||
Impact of transfers between stages | (7) | 22 | (1) | 14 | |||||||||||
(2) | 16 | – | 14 | ||||||||||||
Other items taken to the income statement | 5 | 7 | – | 12 | |||||||||||
Charge to the income statement | 3 | 23 | – | 26 | |||||||||||
At 31 December 2022 | 29 | 51 | 1 | 81 | |||||||||||
Allowance for expected credit losses | |||||||||||||||
The Bank | Stage 1 £m | Stage 2 £m | Stage 3 £m | Total £m | |||||||||||
In respect of: | |||||||||||||||
Loans and advances to customers | 216 | 935 | 1,663 | 2,814 | |||||||||||
Due from fellow Lloyds Banking Group undertakings | 33 | – | 34 | 67 | |||||||||||
Other assets | – | – | 1 | 1 | |||||||||||
Drawn balances | 249 | 935 | 1,698 | 2,882 | |||||||||||
Provisions in relation to loan commitments and financial guarantees | 29 | 51 | 1 | 81 | |||||||||||
Total | 278 | 986 | 1,699 | 2,963 | |||||||||||
Gross carrying amount | Allowance for expected credit losses | ||||||||||||||
The Bank | 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 31 December 2021 | 50 | – | – | 50 | – | – | – | – | |||||||
Allowance for impairment losses | – | – | – | – | |||||||||||
Net carrying amount | 50 | – | – | 50 | |||||||||||
Loans and advances to customers | |||||||||||||||
At 1 January 2021 | 224,337 | 32,974 | 5,421 | 262,732 | 482 | 1,066 | 1,487 | 3,035 | |||||||
Exchange and other adjustments | (27) | – | (32) | (59) | (1) | – | 6 | 5 | |||||||
Transfers to Stage 1 | 9,404 | (9,393) | (11) | – | 191 | (187) | (4) | – | |||||||
Transfers to Stage 2 | (6,189) | 6,887 | (698) | – | (19) | 96 | (77) | – | |||||||
Transfers to Stage 3 | (303) | (1,268) | 1,571 | – | (6) | (112) | 118 | – | |||||||
Impact of transfers between stages | 2,912 | (3,774) | 862 | – | (142) | 101 | 102 | 61 | |||||||
24 | (102) | 139 | 61 | ||||||||||||
Other changes in credit quality | (80) | (112) | 82 | (110) | |||||||||||
Additions and repayments | 20,632 | (3,837) | (691) | 16,104 | (36) | (104) | (79) | (219) | |||||||
(Credit) charge to the income statement | (92) | (318) | 142 | (268) | |||||||||||
Advances written off | (371) | (371) | (371) | (371) | |||||||||||
Recoveries of advances written off in previous years | 62 | 62 | 62 | 62 | |||||||||||
At 31 December 2021 | 247,854 | 25,363 | 5,251 | 278,468 | 389 | 748 | 1,326 | 2,463 | |||||||
Allowance for impairment losses | (389) | (748) | (1,326) | (2,463) | |||||||||||
Net carrying amount | 247,465 | 24,615 | 3,925 | 276,005 | |||||||||||
Drawn ECL coverage (%) | 0.2 | 2.9 | 25.3 | 0.9 | |||||||||||
Due from fellow Lloyds Banking Group undertakings | |||||||||||||||
At 31 December 2021 | 23,926 | – | 48 | 23,974 | 7 | – | 48 | 55 | |||||||
Allowance for impairment losses | (7) | – | (48) | (55) | |||||||||||
Net carrying amount | 23,919 | – | – | 23,919 | |||||||||||
Total financial assets at amortised cost | 271,434 | 24,615 | 3,925 | 299,974 | |||||||||||
Allowance for expected credit losses | |||||||||||||||
The Bank | Stage 1 £m | Stage 2 £m | Stage 3 £m | Total £m | |||||||||||
Undrawn balances | |||||||||||||||
At 1 January 2021 | 54 | 69 | 6 | 129 | |||||||||||
Exchange and other adjustments | (1) | – | – | (1) | |||||||||||
Transfers to Stage 1 | 20 | (20) | – | – | |||||||||||
Transfers to Stage 2 | (3) | 3 | – | – | |||||||||||
Transfers to Stage 3 | – | (2) | 2 | – | |||||||||||
Impact of transfers between stages | (17) | 7 | (1) | (11) | |||||||||||
– | (12) | 1 | (11) | ||||||||||||
Other items taken to the income statement | (27) | (28) | (6) | (61) | |||||||||||
Credit to the income statement | (27) | (40) | (5) | (72) | |||||||||||
At 31 December 2021 | 26 | 29 | 1 | 56 | |||||||||||
Allowance for expected credit losses | |||||||||||||||
The Bank | Stage 1 £m | Stage 2 £m | Stage 3 £m | Total £m | |||||||||||
In respect of: | |||||||||||||||
Loans and advances to customers | 389 | 748 | 1,326 | 2,463 | |||||||||||
Due from fellow Lloyds Banking Group undertakings | 7 | – | 48 | 55 | |||||||||||
Other assets | – | – | 1 | 1 | |||||||||||
Drawn balances | 396 | 748 | 1,375 | 2,519 | |||||||||||
Provisions in relation to loan commitments and financial guarantees | 26 | 29 | 1 | 56 | |||||||||||
Total | 422 | 777 | 1,376 | 2,575 | |||||||||||
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 % | 2021-2025 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 2021 | ||||||||||
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 | ||
ECL allowance | 3,327 | 2,484 | 2,886 | 3,604 | 6,343 | 2,639 | 2,385 | 2,513 | 2,799 | 3,295 | |
At 31 December 2022 | At 31 December 2021 | ||||||||
Upside £m | Base case £m | Downside £m | Severe downside £m | Upside £m | Base case £m | Downside £m | Severe downside £m | ||
ECL allowance | 2,394 | 2,807 | 3,535 | 10,419 | 2,377 | 2,506 | 2,813 | 3,427 | |
At 31 December 2022 | At 31 December 2021 | ||||
1pp increase in unemployment | 1pp decrease in unemployment | 1pp increase in unemployment | 1pp decrease in unemployment | ||
ECL impact, £m | 73 | (70) | 40 | (35) | |
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 | (207) | 341 | (106) | 154 | |
Judgements due to: | ||||||
Modelled ECL £m | Individually assessed £m | COVID-191 £m | Inflationary risk £m | Other £m | Total ECL £m | |
At 31 December 2022 | 2,048 | 877 | – | 137 | 265 | 3,327 |
At 31 December 2021 | 870 | 709 | 390 | 57 | 613 | 2,639 |
The Group | The Group and the Bank | ||||
Finance leases | Hire purchase | ||||
2022 £m | 2021 £m | 2022 £m | 2021 £m | ||
Not later than 1 year | 24 | 31 | 104 | 76 | |
Later than 1 year and not later than 2 years | 25 | 41 | 101 | 72 | |
Later than 2 years and not later than 3 years | 25 | 30 | 91 | 65 | |
Later than 3 years and not later than 4 years | 25 | 27 | 37 | 27 | |
Later than 4 years and not later than 5 years | 26 | 27 | 40 | 30 | |
Later than 5 years | 122 | 149 | – | – | |
Gross investment | 247 | 305 | 373 | 270 | |
Unearned future finance income | (75) | (92) | (34) | (23) | |
Rentals received in advance | – | – | – | – | |
Net investment | 172 | 213 | 339 | 247 | |
The Group | The Group and the Bank | ||||
Finance leases | Hire purchase | ||||
2022 £m | 2021 £m | 2022 £m | 2021 £m | ||
Not later than 1 year | 9 | 10 | 89 | 70 | |
Later than 1 year and not later than 2 years | 12 | 27 | 90 | 66 | |
Later than 2 years and not later than 3 years | 14 | 18 | 85 | 59 | |
Later than 3 years and not later than 4 years | 15 | 16 | 35 | 24 | |
Later than 4 years and not later than 5 years | 17 | 18 | 40 | 28 | |
Later than 5 years | 105 | 124 | – | – | |
Net investment | 172 | 213 | 339 | 247 | |
The Group | The Bank | ||||
2022 £m | 2021 £m | 2022 £m | 2021 £m | ||
At 1 January | 325 | 325 | 325 | 325 | |
Adjustment on transfer of subsidiary | 127 | – | – | – | |
At 31 December | 452 | 325 | 325 | 325 | |
Cost | 452 | 325 | 325 | 325 | |
Accumulated impairment losses | – | – | – | – | |
At 31 December | 452 | 325 | 325 | 325 | |
2022 £m | 2021 £m | |
At 1 January | 84 | 74 |
Additions (note 32) | 1,229 | 10 |
At 31 December | 1,313 | 84 |
The Group | The Bank | ||||||
2022 £m | 2021 £m | 2022 £m | 2021 £m | ||||
Property, plant and equipment: | |||||||
Investment properties | 3 | 4 | – | – | |||
Premises | 373 | 287 | 373 | 287 | |||
Equipment | 156 | 244 | 154 | 244 | |||
Right-of-use assets (note 19) | 488 | 573 | 488 | 573 | |||
1,020 | 1,108 | 1,015 | 1,104 | ||||
Purchased credit card relationships | 310 | – | – | – | |||
Capitalised software enhancements | 232 | 224 | 232 | 224 | |||
Settlement balances | 4 | – | 4 | – | |||
Prepayments | 133 | 100 | 127 | 100 | |||
Other assets | 228 | 57 | 215 | 48 | |||
Total other assets | 1,927 | 1,489 | 1,593 | 1,476 | |||
The Group and the Bank | 2022 £m | 2021 £m | |
At 1 January | 573 | 648 | |
Exchange and other adjustments | (1) | – | |
Additions | 16 | 17 | |
Disposals | (22) | (7) | |
Depreciation charge for the year | (78) | (85) | |
At 31 December | 488 | 573 |
The Group | The Bank | ||||
2022 £m | 2021 £m | 2022 £m | 2021 £m | ||
Senior unsecured notes issued | 4,876 | 4,048 | 4,876 | 4,048 | |
Covered bonds (note 21) | 500 | 1,651 | 500 | 1,651 | |
Securitisation notes (note 21) | 747 | 1,654 | – | – | |
6,123 | 7,353 | 5,376 | 5,699 | ||
Other amounts due to fellow Group undertakings | – | – | – | 441 | |
Total debt securities in issue | 6,123 | 7,353 | 5,376 | 6,140 | |
2022 | 2021 | ||||
Loans and advances securitised £m | Externally held notes in issue £m | Loans and advances securitised £m | Externally held notes in issue £m | ||
Securitisation programmes | |||||
UK residential mortgages and commercial loans | 15,402 | 550 | 18,688 | 1,093 | |
Credit card receivables | 9,409 | 223 | 3,413 | 594 | |
Total securitisation programmes (note 20)1 | 24,811 | 773 | 22,101 | 1,687 | |
Covered bond programmes | |||||
Residential mortgage-backed | – | – | 2,574 | 1,151 | |
Social housing loan-backed | 831 | 500 | 833 | 500 | |
Total covered bond programmes (note 20) | 831 | 500 | 3,407 | 1,651 | |
Total securitisation and covered bond programmes | 1,273 | 3,338 | |||
The Group | The Bank | ||||
2022 £m | 2021 £m | 2022 £m | 2021 £m | ||
Settlement balances | 50 | 58 | 50 | 58 | |
Lease liabilities | 550 | 627 | 550 | 627 | |
Other creditors and accruals | 852 | 765 | 627 | 603 | |
Total other liabilities | 1,452 | 1,450 | 1,227 | 1,288 | |
The Group | The Bank | ||||
2022 £m | 2021 £m | 2022 £m | 2021 £m | ||
Statutory position | |||||
Deferred tax assets | 1,944 | 2,007 | 1,979 | 1,991 | |
Deferred tax liabilities | – | – | – | – | |
Net deferred tax asset at 31 December | 1,944 | 2,007 | 1,979 | 1,991 | |
Tax disclosure | |||||
Deferred tax assets | 2,063 | 2,082 | 2,020 | 2,065 | |
Deferred tax liabilities | (119) | (75) | (41) | (74) | |
Net deferred tax asset at 31 December | 1,944 | 2,007 | 1,979 | 1,991 | |
The Group Deferred tax assets | Tax losses £m | Property, plant and equipment £m | Provisions £m | Share- based payments £m | Derivatives £m | Other temporary differences £m | Total £m |
At 1 January 2021 | 1,547 | 103 | 88 | 6 | 17 | 25 | 1,786 |
Credit (charge) to the income statement | 280 | – | 2 | (2) | – | 5 | 285 |
Credit to other comprehensive income | – | – | – | – | 11 | – | 11 |
At 31 December 2021 | 1,827 | 103 | 90 | 4 | 28 | 30 | 2,082 |
Credit (charge) to the income statement | 26 | (27) | (14) | – | (7) | (24) | (46) |
Credit to other comprehensive income | – | – | – | – | 5 | – | 5 |
Acquisition | – | 2 | 19 | – | – | 1 | 22 |
At 31 December 2022 | 1,853 | 78 | 95 | 4 | 26 | 7 | 2,063 |
The Group 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 | (16) | – | – | – | (6) | (43) | (65) | |
Charge to the income statement | (4) | – | – | (1) | (13) | (4) | (22) | |
Credit to other comprehensive income | – | – | – | – | 12 | – | 12 | |
At 31 December 2021 | (20) | – | – | (1) | (7) | (47) | (75) | |
(Charge) credit to the income statement | 8 | 4 | (11) | – | 7 | 23 | 31 | |
Credit to other comprehensive income | – | – | 6 | – | – | – | 6 | |
Acquisition | – | (80) | – | – | – | – | (80) | |
Exchange and other adjustments | – | – | – | – | – | (1) | (1) | |
At 31 December 2022 | (12) | (76) | (5) | (1) | – | (25) | (119) | |
The Bank Deferred tax assets | Tax losses £m | Property, plant and equipment £m | Provisions £m | Share- based payments £m | Derivatives £m | Other temporary differences £m | Total £m |
At 1 January 2021 | 1,525 | 127 | 85 | 6 | 17 | 22 | 1,782 |
Credit (charge) to the income statement | 274 | (2) | 2 | (2) | – | – | 272 |
Credit to other comprehensive income | – | – | – | – | 11 | – | 11 |
At 31 December 2021 | 1,799 | 125 | 87 | 4 | 28 | 22 | 2,065 |
Credit (charge) to the income statement | 25 | (36) | (14) | – | – | (18) | (43) |
Charge to other comprehensive income | – | – | – | – | (2) | – | (2) |
At 31 December 2022 | 1,824 | 89 | 73 | 4 | 26 | 4 | 2,020 |
The Bank Deferred tax liabilities | Capitalised software enhancements £m | Pension assets £m | Asset revaluations1 £m | Other temporary differences £m | Total £m | ||
At 1 January 2021 | (16) | – | (6) | (42) | (64) | ||
Charge to the income statement | (4) | – | – | (5) | (9) | ||
Charge to other comprehensive income | – | – | (1) | – | (1) | ||
At 31 December 2021 | (20) | – | (7) | (47) | (74) | ||
(Charge) credit to the income statement | 8 | (11) | – | 23 | 20 | ||
Credit to other comprehensive income | – | 6 | 7 | – | 13 | ||
At 31 December 2022 | (12) | (5) | – | (24) | (41) | ||
The Group | The Bank | ||||||||
Provisions for financial commitments and guarantees £m | Regulatory and legal provisions £m | Other £m | Total £m | Provisions for financial commitments and guarantees £m | Regulatory and legal provisions £m | Other £m | Total £m | ||
At 1 January 2022 | 56 | 835 | 166 | 1,057 | 56 | 835 | 166 | 1,057 | |
Exchange and other adjustments1 | – | 175 | 21 | 196 | (1) | 157 | 18 | 174 | |
Acquisition of business2 | 29 | – | – | 29 | – | – | – | – | |
Provisions applied | – | (392) | (94) | (486) | – | (415) | (93) | (508) | |
Net charge for the year3 | 30 | 91 | 56 | 177 | 26 | 91 | 57 | 174 | |
At 31 December 2022 | 115 | 709 | 149 | 973 | 81 | 668 | 148 | 897 | |
The Group | The Bank | ||||||||||||||
Preferred securities £m | Undated £m | Dated £m | Total £m | Preferred securities £m | Undated £m | Dated £m | Total £m | ||||||||
At 1 January 2021 | 172 | 4,593 | 2,199 | 6,964 | 21 | 4,744 | 2,199 | 6,964 | |||||||
Issued during the year1: | |||||||||||||||
Subordinated Floating Rate Note (24 September 2026) (£500 million) | – | – | 500 | 500 | – | – | 500 | 500 | |||||||
Repurchases and redemptions during the year1: | |||||||||||||||
7.754% Non-cumulative Perpetual Preferred Securities (Class B) (£150 million) | (156) | – | – | (156) | – | – | – | – | |||||||
7.754% Non-cumulative Perpetual Preferred Securities Series 2 of £1,000 each (Class B) (£150 million) | – | – | – | – | – | (156) | – | (156) | |||||||
Floating Rate Subordinated Notes (£150 million) | – | (151) | – | (151) | – | (151) | – | (151) | |||||||
Floating Rate Subordinated Notes (€500 million) | – | (429) | – | (429) | – | (429) | – | (429) | |||||||
Floating Rate Subordinated Notes 30 April 2004 (£500 million) | – | (502) | – | (502) | – | (502) | – | (502) | |||||||
Floating Rate Subordinated Notes 31 October 2003 (£500 million) | – | (502) | – | (502) | – | (502) | – | (502) | |||||||
Floating Rate Subordinated Notes 30 January 2004 (£300 million) | – | (302) | – | (302) | – | (302) | – | (302) | |||||||
Floating Rate Subordinated Notes 30 June 2003 (£300 million) | – | (302) | – | (302) | – | (302) | – | (302) | |||||||
Floating Rate Subordinated Notes (£250 million) | – | (251) | – | (251) | – | (251) | – | (251) | |||||||
Floating Rate Subordinated Notes (£2,000 million) | – | (2,007) | – | (2,007) | – | (2,007) | – | (2,007) | |||||||
Floating Rate Primary Capital Notes (US$250 million) | – | (24) | – | (24) | – | (24) | – | (24) | |||||||
9.375% Subordinated Bonds 2021 (£500 million) | – | – | (200) | (200) | – | – | (200) | (200) | |||||||
Floating Rate Subordinated Notes 2014 (£1,000 million) | – | – | (1,002) | (1,002) | – | – | (1,002) | (1,002) | |||||||
(156) | (4,470) | (1,202) | (5,828) | – | (4,626) | (1,202) | (5,828) | ||||||||
Foreign exchange movements | – | 1 | – | 1 | – | 1 | – | 1 | |||||||
Other movements (cash and non-cash)2 | 6 | (5) | 6 | 7 | 1 | – | 6 | 7 | |||||||
At 31 December 2021 | 22 | 119 | 1,503 | 1,644 | 22 | 119 | 1,503 | 1,644 | |||||||
Repurchases and redemptions during the year1: | |||||||||||||||
7.281% Perpetual Regulatory Tier One Securities (Series B) (£150 million) | (22) | – | – | (22) | (22) | – | – | (22) | |||||||
12% Perpetual Subordinated Bonds (£100 million) | – | (22) | – | (22) | – | (22) | – | (22) | |||||||
(22) | (22) | – | (44) | (22) | (22) | – | (44) | ||||||||
Foreign exchange movements | – | – | – | – | – | – | – | – | |||||||
Other movements (cash and non-cash)2 | – | (1) | (1) | (2) | – | (1) | (1) | (2) | |||||||
At 31 December 2022 | – | 96 | 1,502 | 1,598 | – | 96 | 1,502 | 1,598 | |||||||
The Group and the Bank | ||||
2022 Number of shares | 2021 Number of shares | 2022 £m | 2021 £m | |
Sterling | ||||
Ordinary shares of 25p each | 24,085,301,755 | 24,085,301,755 | 6,021 | 6,021 |
8.117% non-cumulative perpetual preference shares class "A" of £10 each | 250,000 | 250,000 | 3 | 3 |
7.754% non-cumulative perpetual preference shares class "B" of £10 each | 150,000 | 150,000 | 2 | 2 |
6,026 | 6,026 | |||
The Group and the Bank | ||||
2022 Number of shares | 2021 Number of shares | 2022 £m | 2021 £m | |
Issued and fully paid ordinary shares | ||||
Ordinary shares of 25p each | ||||
At 1 January and 31 December | 23,388,340,553 | 23,388,340,553 | 5,847 | 5,847 |
Issued and fully paid preference shares | ||||
Preferences shares of 25p each | ||||
At 1 January and 31 December | 400 | 400 | – | – |
Total share capital at 31 December | 5,847 | 5,847 | ||
The Group | The Bank | ||||
2022 £m | 2021 £m | 2022 £m | 2021 £m | ||
Merger reserve and other reserves1 | 1,600 | 1,600 | 1,600 | 1,600 | |
Capital redemption reserve1 | 482 | 482 | 482 | 482 | |
Capital contribution reserve | 1,054 | – | 1,229 | – | |
Revaluation reserve in respect of debt securities held at fair value through other comprehensive income | 1 | 15 | – | 14 | |
Cash flow hedging reserve | (65) | (63) | (65) | (63) | |
Foreign currency translation reserve | (21) | (21) | (8) | (8) | |
At 31 December | 3,051 | 2,013 | 3,238 | 2,025 | |
The Group | The Bank | ||||
Capital contribution reserve | 2022 £m | 2021 £m | 2022 £m | 2021 £m | |
At 1 January | – | – | – | – | |
Capital contribution received (note 32) | 1,054 | – | 1,229 | – | |
At 31 December | 1,054 | – | 1,229 | – | |
Revaluation reserve in respect of debt securities held at fair value through other comprehensive income | The Group | The Bank | |||||
2022 £m | 2021 £m | 2022 £m | 2021 £m | ||||
At 1 January | 15 | 5 | 14 | 17 | |||
Change in fair value | (36) | (2) | (36) | (2) | |||
Deferred tax | 11 | (1) | 11 | (1) | |||
(25) | (3) | (25) | (3) | ||||
Income statement transfers in respect of disposals (note 7) | 15 | – | 15 | – | |||
Deferred tax | (4) | 13 | (4) | – | |||
11 | 13 | 11 | – | ||||
At 31 December | 1 | 15 | – | 14 | |||
The Group and the Bank | |||
Cash flow hedging reserve | 2022 £m | 2021 £m | |
At 1 January | (63) | (45) | |
Change in fair value of hedging derivatives | 11 | (48) | |
Deferred tax | (5) | 16 | |
6 | (32) | ||
Net income statement transfers | (11) | 19 | |
Deferred tax | 3 | (5) | |
(8) | 14 | ||
At 31 December | (65) | (63) | |
The Group | The Bank | ||||
Foreign currency translation reserve | 2022 £m | 2021 £m | 2022 £m | 2021 £m | |
At 1 January | (21) | (22) | (8) | (8) | |
Currency translation differences arising in the year | – | 1 | – | – | |
At 31 December | (21) | (21) | (8) | (8) | |
The Group | The Bank | ||||||
2022 £m | 2021 £m | 2022 £m | 2021 £m | ||||
At 1 January | 3,975 | 3,313 | 3,554 | 2,877 | |||
Profit attributable to ordinary shareholders1 | 944 | 1,838 | 1,025 | 1,853 | |||
Post-retirement defined benefit scheme remeasurements | (6) | (12) | (6) | (12) | |||
Dividends paid (note 30) | – | (1,200) | – | (1,200) | |||
Capital contributions received | 46 | 36 | 46 | 36 | |||
Adjustment on transfer of subsidiary | (19) | – | – | – | |||
At 31 December | 4,940 | 3,975 | 4,619 | 3,554 | |||
The Group and the Bank | |||
2022 £m | 2021 £m | ||
At 1 January | 2,200 | 2,200 | |
Profit for the year attributable to other equity holders | 122 | 109 | |
Distributions on other equity instruments | (122) | (109) | |
At 31 December | 2,200 | 2,200 | |
2022 £m | 2021 £m | |
Interim dividends | – | 1,200 |
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 | |
Compensation | ||
Salaries and other short-term benefits | 4 | 4 |
Share-based payments | 6 | 6 |
Total compensation | 10 | 10 |
2022 million | 2021 million | |
Share plans settled in Lloyds Banking Group plc shares | ||
At 1 January | 74 | 117 |
Granted, including certain adjustments (includes entitlements of appointed key management personnel) | 29 | 19 |
Exercised/lapsed (includes entitlements of former key management personnel) | (31) | (62) |
At 31 December | 72 | 74 |
2022 £m | 2021 £m | |
Loans | ||
At 1 January | 3 | 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 |
2022 £m | 2021 £m | |
Deposits | ||
At 1 January | 11 | 11 |
Placed (includes deposits of appointed key management personnel) | 37 | 26 |
Withdrawn (includes deposits of former key management personnel) | (38) | (26) |
At 31 December | 10 | 11 |
2022 £m | 2021 £m | |
Assets, included within: | ||
Derivative financial instruments | 26 | 2 |
Financial assets at amortised cost: due from fellow Lloyds Banking Group undertakings | 7,094 | 6,857 |
Liabilities, included within: | ||
Due to fellow Lloyds Banking Group undertakings | 5,810 | 5,356 |
Derivative financial instruments | – | 7 |
Debt securities in issue | – | 441 |
The Group | The Bank | ||||
2022 £m | 2021 £m | 2022 £m | 2021 £m | ||
Assets, included within: | |||||
Derivative financial instruments | 2,901 | 2,411 | 2,901 | 2,411 | |
Financial assets at amortised cost: due from fellow Lloyds Banking Group undertakings | 16,048 | 17,062 | 15,905 | 17,062 | |
Liabilities, included within: | |||||
Due to fellow Lloyds Banking Group undertakings | 91,287 | 77,839 | 85,753 | 77,837 | |
Derivative financial instruments | 4,090 | 3,632 | 4,090 | 3,632 | |
Debt securities in issue | 4,196 | 3,387 | 4,196 | 3,387 | |
Subordinated liabilities | 1,564 | 1,564 | 1,564 | 1,564 | |
The Group and the Bank | |||
2022 £m | 2021 £m | ||
Contingent liabilities | 97 | 263 | |
The Group | The Bank | ||||||
2022 £m | 2021 £m | 2022 £m | 2021 £m | ||||
Commitments and guarantees | |||||||
Forward asset purchases and forward deposits placed | – | 6 | – | 6 | |||
Undrawn formal standby facilities, credit lines and other commitments to lend: | |||||||
Less than 1 year original maturity: | |||||||
Mortgage offers made | 15,307 | 16,147 | 15,205 | 16,035 | |||
Other commitments and guarantees | 45,745 | 24,794 | 23,655 | 24,759 | |||
61,052 | 40,941 | 38,860 | 40,794 | ||||
1 year or over original maturity | 4,136 | 3,061 | 4,136 | 3,061 | |||
Total commitments and guarantees | 65,188 | 44,008 | 42,996 | 43,861 | |||
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 | ||||||||
The Group | Held for trading £m | Other £m | |||||||||||
At 31 December 2022 | |||||||||||||
Financial assets | |||||||||||||
Cash and balances at central banks | – | – | – | – | – | 3,004 | 3,004 | ||||||
Items in the course of collection from banks | – | – | – | – | – | 47 | 47 | ||||||
Financial assets at fair value through profit or loss | – | – | 291 | – | – | – | 291 | ||||||
Derivative financial instruments | 36 | 3,441 | – | – | – | – | 3,477 | ||||||
Loans and advances to banks | – | – | – | – | – | 198 | 198 | ||||||
Loans and advances to customers | – | – | – | – | – | 292,416 | 292,416 | ||||||
Due from fellow Lloyds Banking Group undertakings | – | – | – | – | – | 16,048 | 16,048 | ||||||
Financial assets at amortised cost | – | – | – | – | – | 308,662 | 308,662 | ||||||
Financial assets at fair value through other comprehensive income | – | – | – | – | – | – | – | ||||||
Total financial assets | 36 | 3,441 | 291 | – | – | 311,713 | 315,481 | ||||||
Financial liabilities | |||||||||||||
Deposits from banks | – | – | – | – | – | 195 | 195 | ||||||
Customer deposits | – | – | – | – | – | 166,363 | 166,363 | ||||||
Repurchase agreements | – | – | – | – | – | 30,210 | 30,210 | ||||||
Due to fellow Lloyds Banking Group undertakings | – | – | – | – | – | 91,287 | 91,287 | ||||||
Items in course of transmission to banks | – | – | – | – | – | 118 | 118 | ||||||
Financial liabilities at fair value through profit or loss | – | – | – | 26 | – | – | 26 | ||||||
Derivative financial instruments | 1 | 4,569 | – | – | – | – | 4,570 | ||||||
Notes in circulation | – | – | – | – | – | 1,280 | 1,280 | ||||||
Debt securities in issue | – | – | – | – | – | 6,123 | 6,123 | ||||||
Other | – | – | – | – | – | 550 | 550 | ||||||
Subordinated liabilities | – | – | – | – | – | 1,598 | 1,598 | ||||||
Total financial liabilities | 1 | 4,569 | – | 26 | – | 297,724 | 302,320 | ||||||
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 | ||||||||
The Group | Held for trading £m | Other £m | |||||||||||
At 31 December 2021 | |||||||||||||
Financial assets | |||||||||||||
Cash and balances at central banks | – | – | – | – | – | 3,201 | 3,201 | ||||||
Items in the course of collection from banks | – | – | – | – | – | 47 | 47 | ||||||
Financial assets at fair value through profit or loss | – | – | 362 | – | – | – | 362 | ||||||
Derivative financial instruments | 198 | 4,066 | – | – | – | – | 4,264 | ||||||
Loans and advances to banks | – | – | – | – | – | 51 | 51 | ||||||
Loans and advances to customers | – | – | – | – | – | 279,409 | 279,409 | ||||||
Due from fellow Lloyds Banking Group undertakings | – | – | – | – | – | 17,062 | 17,062 | ||||||
Financial assets at amortised cost | – | – | – | – | – | 296,522 | 296,522 | ||||||
Financial assets at fair value through other comprehensive income | – | – | – | – | 2,047 | – | 2,047 | ||||||
Total financial assets | 198 | 4,066 | 362 | – | 2,047 | 299,770 | 306,443 | ||||||
Financial liabilities | |||||||||||||
Deposits from banks | – | – | – | – | – | 597 | 597 | ||||||
Customer deposits | – | – | – | – | – | 170,777 | 170,777 | ||||||
Repurchase agreements | – | – | – | – | – | 30,028 | 30,028 | ||||||
Due to fellow Lloyds Banking Group undertakings | – | – | – | – | – | 77,839 | 77,839 | ||||||
Items in course of transmission to banks | – | – | – | – | – | 98 | 98 | ||||||
Financial liabilities at fair value through profit or loss | – | – | – | 33 | – | – | 33 | ||||||
Derivative financial instruments | 48 | 4,272 | – | – | – | – | 4,320 | ||||||
Notes in circulation | – | – | – | – | – | 1,321 | 1,321 | ||||||
Debt securities in issue | – | – | – | – | – | 7,353 | 7,353 | ||||||
Other | – | – | – | – | – | 627 | 627 | ||||||
Subordinated liabilities | – | – | – | – | – | 1,644 | 1,644 | ||||||
Total financial liabilities | 48 | 4,272 | – | 33 | – | 290,284 | 294,637 | ||||||
Derivatives designated as hedging instruments £m | Mandatorily held at fair value through profit or loss | At fair value through other comprehensive income £m | Held at amortised cost £m | Total £m | |||||||
The Bank | Held for trading £m | Other £m | |||||||||
At 31 December 2022 | |||||||||||
Financial assets | |||||||||||
Cash and balances at central banks | – | – | – | – | 3,004 | 3,004 | |||||
Items in the course of collection from banks | – | – | – | – | 47 | 47 | |||||
Financial assets at fair value through profit or loss | – | – | 113 | – | – | 113 | |||||
Derivative financial instruments | 36 | 3,440 | – | – | – | 3,476 | |||||
Loans and advances to banks | – | – | – | – | 171 | 171 | |||||
Loans and advances to customers | – | – | – | – | 283,621 | 283,621 | |||||
Due from fellow Lloyds Banking Group undertakings | – | – | – | – | 22,999 | 22,999 | |||||
Financial assets at amortised cost | – | – | – | – | 306,791 | 306,791 | |||||
Financial assets at fair value through other comprehensive income | – | – | – | – | – | – | |||||
Total financial assets | 36 | 3,440 | 113 | – | 309,842 | 313,431 | |||||
Financial liabilities | |||||||||||
Deposits from banks | – | – | – | – | 195 | 195 | |||||
Customer deposits | – | – | – | – | 166,363 | 166,363 | |||||
Repurchase agreements | – | – | – | – | 30,210 | 30,210 | |||||
Due to fellow Lloyds Banking Group undertakings | – | – | – | – | 91,563 | 91,563 | |||||
Items in course of transmission to banks | – | – | – | – | 118 | 118 | |||||
Derivative financial instruments | 1 | 4,420 | – | – | – | 4,421 | |||||
Notes in circulation | – | – | – | – | 1,280 | 1,280 | |||||
Debt securities in issue | – | – | – | – | 5,376 | 5,376 | |||||
Other | – | – | – | – | 550 | 550 | |||||
Subordinated liabilities | – | – | – | – | 1,598 | 1,598 | |||||
Total financial liabilities | 1 | 4,420 | – | – | 297,253 | 301,674 | |||||
At 31 December 2021 | |||||||||||
Financial assets | |||||||||||
Cash and balances at central banks | – | – | – | – | 3,201 | 3,201 | |||||
Items in the course of collection from banks | – | – | – | – | 47 | 47 | |||||
Financial assets at fair value through profit or loss | – | – | 152 | – | – | 152 | |||||
Derivative financial instruments | 198 | 4,066 | – | – | – | 4,264 | |||||
Loans and advances to banks | – | – | – | – | 50 | 50 | |||||
Loans and advances to customers | – | – | – | – | 276,005 | 276,005 | |||||
Due from fellow Lloyds Banking Group undertakings | – | – | – | – | 23,919 | 23,919 | |||||
Financial assets at amortised cost | – | – | – | – | 299,974 | 299,974 | |||||
Financial assets at fair value through other comprehensive income | – | – | – | 2,047 | – | 2,047 | |||||
Total financial assets | 198 | 4,066 | 152 | 2,047 | 303,222 | 309,685 | |||||
Financial liabilities | |||||||||||
Deposits from banks | – | – | – | – | 597 | 597 | |||||
Customer deposits | – | – | – | – | 170,776 | 170,776 | |||||
Repurchase agreements | – | – | – | – | 30,028 | 30,028 | |||||
Due to fellow Lloyds Banking Group undertakings | – | – | – | – | 83,193 | 83,193 | |||||
Items in course of transmission to banks | – | – | – | – | 98 | 98 | |||||
Derivative financial instruments | 48 | 4,096 | – | – | – | 4,144 | |||||
Notes in circulation | – | – | – | – | 1,321 | 1,321 | |||||
Debt securities in issue | – | – | – | – | 6,140 | 6,140 | |||||
Other | – | – | – | – | 627 | 627 | |||||
Subordinated liabilities | – | – | – | – | 1,644 | 1,644 | |||||
Total financial liabilities | 48 | 4,096 | – | – | 294,424 | 298,568 | |||||
The Group | 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 | – | – | 291 | 291 | |||
Financial assets at fair value through other comprehensive income | |||||||
Corporate and other debt securities | – | – | – | – | |||
Total financial assets carried at fair value, excluding derivatives | – | – | 291 | 291 | |||
At 31 December 2021 | |||||||
Financial assets at fair value through profit or loss | |||||||
Loans and advances to customers | – | – | 362 | 362 | |||
Financial assets at fair value through other comprehensive income | |||||||
Corporate and other debt securities | – | 2,047 | – | 2,047 | |||
Total financial assets carried at fair value, excluding derivatives | – | 2,047 | 362 | 2,409 |
The Bank | 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 | – | – | 113 | 113 | |||
Financial assets at fair value through other comprehensive income | |||||||
Corporate and other debt securities | – | – | – | – | |||
Total financial assets carried at fair value, excluding derivatives | – | – | 113 | 113 | |||
At 31 December 2021 | |||||||
Financial assets at fair value through profit or loss | |||||||
Loans and advances to customers | – | – | 152 | 152 | |||
Financial assets at fair value through other comprehensive income | |||||||
Corporate and other debt securities | – | 2,047 | – | 2,047 | |||
Total financial assets carried at fair value, excluding derivatives | – | 2,047 | 152 | 2,199 |
The Group | The Bank | ||||||
2022 £m | 2021 £m | 2022 £m | 2021 £m | ||||
At 1 January | 362 | 477 | 152 | 158 | |||
Losses recognised in the income statement within other income | (20) | (78) | (16) | (6) | |||
Purchases/increases to customer loans | 3 | 4 | 3 | 4 | |||
Sales/repayments of customer loans | (54) | (41) | (26) | (4) | |||
At 31 December | 291 | 362 | 113 | 152 | |||
Losses recognised in the income statement, within other income, relating to the change in fair value of those assets held at 31 December | (19) | (68) | (16) | (7) | |||
2022 | 2021 | ||||||||
The Group | Level 1 £m | Level 2 £m | Level 3 £m | Total £m | Level 1 £m | Level 2 £m | Level 3 £m | Total £m | |
Debt securities in issue designated at fair value through profit or loss | – | – | 26 | 26 | – | – | 33 | 33 | |
The Group | 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 | ||||||||
The Group | Level 1 £m | Level 2 £m | Level 3 £m | Total £m | Level 1 £m | Level 2 £m | Level 3 £m | Total £m | |
Derivative assets | – | 3,477 | – | 3,477 | – | 4,264 | – | 4,264 | |
Derivative liabilities | – | (4,420) | (150) | (4,570) | – | (4,144) | (176) | (4,320) | |
2022 | 2021 | ||||||||
The Bank | Level 1 £m | Level 2 £m | Level 3 £m | Total £m | Level 1 £m | Level 2 £m | Level 3 £m | Total £m | |
Derivative assets | – | 3,476 | – | 3,476 | – | 4,264 | – | 4,264 | |
Derivative liabilities | – | (4,421) | – | (4,421) | – | (4,144) | – | (4,144) | |
2022 | 2021 | ||||
The Group | Derivative assets £m | Derivative liabilities £m | Derivative assets £m | Derivative liabilities £m | |
At 1 January | – | (176) | 12 | (271) | |
Gains (losses) gains recognised in the income statement within other income | – | 1 | (12) | 76 | |
Redemptions | – | 25 | – | 19 | |
At 31 December | – | (150) | – | (176) | |
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 | – | 1 | – | 69 | |
2022 £m | 2021 £m | |
At 1 January | 88 | 120 |
Income statement credit | (52) | (32) |
At 31 December | 36 | 88 |
2022 £m | 2021 £m | |
Credit Valuation Adjustment | 34 | 73 |
Debit Valuation Adjustment | (3) | (3) |
Funding Valuation Adjustment | 5 | 18 |
36 | 88 |
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 (bps) (+/- 50bps)3 | 291 | 25 | (23) | 362 | 31 | (29) | |||||
Level 3 financial assets carried at fair value | 291 | 362 | |||||||||||
Financial liabilities at fair value through profit or loss | |||||||||||||
Securitisation notes | Discounted cash flows | Interest rate spreads (+/- 50bps)4 | 26 | 1 | (1) | 33 | 1 | (1) | |||||
Derivative financial liabilities | |||||||||||||
Shared appreciation right | Market values – property valuation | HPI (+/- 1%)5 | 150 | 16 | (16) | 176 | 19 | (18) | |||||
Level 3 financial liabilities carried at fair value | 176 | 209 | |||||||||||
Carrying value £m | Fair value £m | Valuation hierarchy | ||||
The Group | Level 1 £m | Level 2 £m | Level 3 £m | |||
At 31 December 2022 | ||||||
Loans and advances to banks | 198 | 198 | – | – | 198 | |
Loans and advances to customers | 292,416 | 285,540 | – | – | 285,540 | |
Due from fellow Lloyds Banking Group undertakings | 16,048 | 16,048 | – | – | 16,048 | |
At 31 December 2021 | ||||||
Loans and advances to banks | 51 | 51 | – | – | 51 | |
Loans and advances to customers | 279,409 | 282,369 | – | – | 282,369 | |
Due from fellow Lloyds Banking Group undertakings | 17,062 | 17,062 | – | – | 17,062 | |
Carrying value £m | Fair value £m | Valuation hierarchy | ||||
The Bank | Level 1 £m | Level 2 £m | Level 3 £m | |||
At 31 December 2022 | ||||||
Loans and advances to banks | 171 | 171 | – | – | 171 | |
Loans and advances to customers | 283,621 | 276,680 | – | – | 276,680 | |
Due from fellow Lloyds Banking Group undertakings | 22,999 | 22,999 | – | – | 22,999 | |
At 31 December 2021 | ||||||
Loans and advances to banks | 50 | 50 | – | – | 50 | |
Loans and advances to customers | 276,005 | 278,916 | – | – | 278,916 | |
Due from fellow Lloyds Banking Group undertakings | 23,919 | 23,919 | – | – | 23,919 | |
Carrying value £m | Fair value £m | Valuation hierarchy | ||||
The Group | Level 1 £m | Level 2 £m | Level 3 £m | |||
At 31 December 2022 | ||||||
Deposits from banks | 195 | 195 | – | 195 | – | |
Customer deposits | 166,363 | 166,264 | – | 166,264 | – | |
Repurchase agreements | 30,210 | 30,210 | – | 30,210 | – | |
Due to fellow Lloyds Banking Group undertakings | 91,287 | 91,287 | – | 91,287 | – | |
Debt securities in issue | 6,123 | 6,122 | – | 6,122 | – | |
Subordinated liabilities | 1,598 | 1,631 | – | 1,631 | – | |
At 31 December 2021 | ||||||
Deposits from banks | 597 | 597 | – | 597 | – | |
Customer deposits | 170,777 | 170,842 | – | 170,842 | – | |
Repurchase agreements | 30,028 | 30,028 | – | 30,028 | – | |
Due to fellow Lloyds Banking Group undertakings | 77,839 | 77,839 | – | 77,839 | – | |
Debt securities in issue | 7,353 | 7,425 | – | 7,425 | – | |
Subordinated liabilities | 1,644 | 1,671 | – | 1,671 | – | |
Carrying value £m | Fair value £m | Valuation hierarchy | ||||
The Bank | Level 1 £m | Level 2 £m | Level 3 £m | |||
At 31 December 2022 | ||||||
Deposits from banks | 195 | 195 | – | 195 | – | |
Customer deposits | 166,363 | 166,264 | – | 166,264 | – | |
Repurchase agreements | 30,210 | 30,210 | – | 30,210 | – | |
Due to fellow Lloyds Banking Group undertakings | 91,563 | 91,563 | – | 91,563 | – | |
Debt securities in issue | 5,376 | 5,375 | – | 5,375 | – | |
Subordinated liabilities | 1,598 | 1,631 | – | 1,631 | – | |
At 31 December 2021 | ||||||
Deposits from banks | 597 | 597 | – | 597 | – | |
Customer deposits | 170,776 | 170,842 | – | 170,842 | – | |
Repurchase agreements | 30,028 | 30,028 | – | 30,028 | – | |
Due to fellow Lloyds Banking Group undertakings | 83,193 | 83,193 | – | 83,193 | – | |
Debt securities in issue | 6,140 | 6,210 | – | 6,210 | – | |
Subordinated liabilities | 1,644 | 1,671 | – | 1,671 | – | |
2022 | 2021 | ||||
The Group | 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 | – | – | 24 | – | |
Securitisation programmes | |||||
Financial assets at amortised cost: | |||||
Loans and advances to customers1 | 24,811 | 773 | 22,101 | 1,687 | |
2022 | 2021 | ||||
The Bank | 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 | – | – | 24 | – | |
Securitisation programmes | |||||
Financial assets at amortised cost: | |||||
Loans and advances to customers1 | 24,811 | – | 22,101 | – | |
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 sheet £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 | 291 | – | 291 | – | – | 291 | |||||
Derivative financial instruments | 3,477 | – | 3,477 | (217) | (3,042) | 218 | |||||
Loans and advances to banks | 198 | – | 198 | (171) | – | 27 | |||||
Loans and advances to customers | 292,416 | – | 292,416 | (18) | (594) | 291,804 | |||||
Financial assets at fair value through other comprehensive income | – | – | – | – | – | – | |||||
Financial liabilities | |||||||||||
Deposits from banks | 195 | – | 195 | (194) | – | 1 | |||||
Customer deposits | 166,363 | – | 166,363 | (23) | (594) | 165,746 | |||||
Repurchase agreements | 30,210 | – | 30,210 | – | (30,210) | – | |||||
Financial liabilities at fair value through profit or loss | 26 | – | 26 | – | – | 26 | |||||
Derivative financial instruments | 4,570 | – | 4,570 | (189) | (3,096) | 1,285 | |||||
At 31 December 2021 | |||||||||||
Financial assets | |||||||||||
Financial assets at fair value through profit or loss | 362 | – | 362 | – | – | 362 | |||||
Derivative financial instruments | 4,264 | – | 4,264 | (712) | (350) | 3,202 | |||||
Loans and advances to banks | 51 | – | 51 | (42) | – | 9 | |||||
Loans and advances to customers | 279,409 | – | 279,409 | (12) | (305) | 279,092 | |||||
Financial assets at fair value through other comprehensive income | 2,047 | – | 2,047 | – | – | 2,047 | |||||
Financial liabilities | |||||||||||
Deposits from banks | 597 | – | 597 | (596) | – | 1 | |||||
Customer deposits | 170,777 | – | 170,777 | (116) | (305) | 170,356 | |||||
Repurchase agreements | 30,028 | – | 30,028 | – | (30,028) | – | |||||
Financial liabilities at fair value through profit or loss | 33 | – | 33 | – | – | 33 | |||||
Derivative financial instruments | 4,320 | – | 4,320 | (54) | (1,237) | 3,029 | |||||
The Group | 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 loss: | |||||||||||
Loans and advances | 291 | – | 291 | 362 | – | 362 | |||||
Derivative financial instruments | 3,477 | (154) | 3,323 | 4,264 | (350) | 3,914 | |||||
Financial assets at amortised cost, net2: | |||||||||||
Loans and advances to banks, net2 | 198 | – | 198 | 51 | – | 51 | |||||
Loans and advances to customers, net2 | 292,416 | (594) | 291,822 | 279,409 | (305) | 279,104 | |||||
292,614 | (594) | 292,020 | 279,460 | (305) | 279,155 | ||||||
Financial assets at fair value through other comprehensive income | – | – | – | 2,047 | – | 2,047 | |||||
Off-balance sheet items: | |||||||||||
Other items serving as direct credit substitutes | 2 | – | 2 | 58 | – | 58 | |||||
Performance bonds, including letters of credit, and other transaction-related contingencies | 95 | – | 95 | 205 | – | 205 | |||||
Irrevocable commitments and guarantees | 17,458 | – | 17,458 | 18,740 | – | 18,740 | |||||
17,555 | – | 17,555 | 19,003 | – | 19,003 | ||||||
313,937 | (748) | 313,189 | 305,136 | (655) | 304,481 | ||||||
The Bank | 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 loss: | |||||||||||
Loans and advances | 113 | – | 113 | 152 | – | 152 | |||||
Derivative financial instruments | 3,476 | (154) | 3,322 | 4,264 | (350) | 3,914 | |||||
Financial assets at amortised cost, net2 | |||||||||||
Loans and advances to banks, net2 | 171 | – | 171 | 50 | – | 50 | |||||
Loans and advances to customers, net2 | 283,621 | (594) | 283,027 | 276,005 | (305) | 275,700 | |||||
283,792 | (594) | 283,198 | 276,055 | (305) | 275,750 | ||||||
Financial assets at fair value through other comprehensive income | – | – | – | 2,047 | – | 2,047 | |||||
Off-balance sheet items: | |||||||||||
Other items serving as direct credit substitutes | 2 | – | 2 | 58 | – | 58 | |||||
Performance bonds, including letters of credit, and other transaction-related contingencies | 95 | – | 95 | 205 | – | 205 | |||||
Irrevocable commitments and guarantees | 17,356 | – | 17,356 | 18,628 | – | 18,628 | |||||
17,453 | – | 17,453 | 18,891 | – | 18,891 | ||||||
304,834 | (748) | 304,086 | 301,409 | (655) | 300,754 | ||||||
The Group | The Bank | ||||
2022 £m | 2021 £m | 2022 £m | 2021 £m | ||
Agriculture, forestry and fishing | 585 | 578 | 585 | 578 | |
Energy and water supply | 62 | 65 | 62 | 65 | |
Manufacturing | 161 | 240 | 161 | 240 | |
Construction | 701 | 693 | 701 | 693 | |
Transport, distribution and hotels | 2,624 | 2,473 | 2,624 | 2,473 | |
Postal and telecommunications | 81 | 97 | 81 | 97 | |
Property companies | 3,007 | 3,216 | 3,032 | 3,241 | |
Financial, business and other services | 874 | 1,197 | 874 | 1,197 | |
Personal: | |||||
Mortgages | 271,243 | 264,099 | 268,555 | 260,772 | |
Other | 15,764 | 8,870 | 9,421 | 8,865 | |
Lease financing | 172 | 213 | – | – | |
Hire purchase | 339 | 247 | 339 | 247 | |
Total loans and advances to customers before allowance for impairment losses | 295,613 | 281,988 | 286,435 | 278,468 | |
Allowance for impairment losses (note 13) | (3,197) | (2,579) | (2,814) | (2,463) | |
Total loans and advances to customers | 292,416 | 279,409 | 283,621 | 276,005 | |
RMS | CMS | |||
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 | ||||||||||||||
The Group – 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 | 139 | – | – | 139 | – | – | – | – | |||||||
CMS 6–10 | 59 | – | – | 59 | – | – | – | – | |||||||
CMS 11–14 | – | – | – | – | – | – | – | – | |||||||
CMS 15–18 | – | – | – | – | – | – | – | – | |||||||
CMS 19 | – | – | – | – | – | – | – | – | |||||||
CMS 20–23 | – | – | – | – | – | – | – | – | |||||||
198 | – | – | 198 | – | – | – | – | ||||||||
Loans and advances to customers | |||||||||||||||
RMS 1–3 | 222,564 | 22,179 | – | 244,743 | 88 | 176 | – | 264 | |||||||
RMS 4–6 | 13,913 | 12,503 | – | 26,416 | 99 | 219 | – | 318 | |||||||
RMS 7–9 | 1,819 | 3,998 | – | 5,817 | 70 | 248 | – | 318 | |||||||
RMS 10 | 24 | 1,064 | – | 1,088 | 2 | 89 | – | 91 | |||||||
RMS 11–13 | 9 | 3,314 | – | 3,323 | 2 | 349 | – | 351 | |||||||
RMS 14 | – | – | 5,976 | 5,976 | – | – | 900 | 900 | |||||||
238,329 | 43,058 | 5,976 | 287,363 | 261 | 1,081 | 900 | 2,242 | ||||||||
CMS 1–5 | 1,216 | – | – | 1,216 | – | – | – | – | |||||||
CMS 6–10 | 1,412 | 24 | – | 1,436 | 1 | – | – | 1 | |||||||
CMS 11–14 | 2,293 | 500 | – | 2,793 | 11 | 7 | – | 18 | |||||||
CMS 15–18 | 619 | 573 | – | 1,192 | 11 | 36 | – | 47 | |||||||
CMS 19 | 4 | 71 | – | 75 | – | 8 | – | 8 | |||||||
CMS 20–23 | – | – | 1,538 | 1,538 | – | – | 881 | 881 | |||||||
5,544 | 1,168 | 1,538 | 8,250 | 23 | 51 | 881 | 955 | ||||||||
Central adjustment | – | – | – | – | – | – | – | – | |||||||
Total loans and advances to customers | 243,873 | 44,226 | 7,514 | 295,613 | 284 | 1,132 | 1,781 | 3,197 | |||||||
The Group – Gross undrawn exposures and expected credit loss allowance | Undrawn exposures | 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 | |||||||||||||||
RMS 1–3 | 45,478 | 192 | – | 45,670 | 16 | – | – | 16 | |||||||
RMS 4–6 | 11,664 | 2,455 | – | 14,119 | 26 | 26 | – | 52 | |||||||
RMS 7–9 | 556 | 400 | – | 956 | 7 | 14 | – | 21 | |||||||
RMS 10 | 2 | 60 | – | 62 | – | 4 | – | 4 | |||||||
RMS 11–13 | – | 112 | – | 112 | – | 11 | – | 11 | |||||||
RMS 14 | – | – | 68 | 68 | – | – | – | – | |||||||
57,700 | 3,219 | 68 | 60,987 | 49 | 55 | – | 104 | ||||||||
CMS 1–5 | 655 | – | – | 655 | – | – | – | – | |||||||
CMS 6–10 | 2,716 | 1 | – | 2,717 | 1 | – | – | 1 | |||||||
CMS 11–14 | 673 | 61 | – | 734 | 2 | 2 | – | 4 | |||||||
CMS 15–18 | 31 | 61 | – | 92 | 1 | 4 | – | 5 | |||||||
CMS 19 | – | 1 | – | 1 | – | – | – | – | |||||||
CMS 20–23 | – | – | 2 | 2 | – | – | 1 | 1 | |||||||
4,075 | 124 | 2 | 4,201 | 4 | 6 | 1 | 11 | ||||||||
Total | 61,775 | 3,343 | 70 | 65,188 | 53 | 61 | 1 | 115 | |||||||
Drawn exposures | Expected credit loss allowance | ||||||||||||||
The Group – 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 | 47 | – | – | 47 | – | – | – | – | |||||||
CMS 6–10 | 4 | – | – | 4 | – | – | – | – | |||||||
CMS 11–14 | – | – | – | – | – | – | – | – | |||||||
CMS 15–18 | – | – | – | – | – | – | – | – | |||||||
CMS 19 | – | – | – | – | – | – | – | – | |||||||
CMS 20–23 | – | – | – | – | – | – | – | – | |||||||
51 | – | – | 51 | – | – | – | – | ||||||||
Loans and advances to customers | |||||||||||||||
RMS 1–3 | 236,919 | 10,022 | – | 246,941 | 57 | 184 | – | 241 | |||||||
RMS 4–6 | 6,821 | 9,506 | – | 16,327 | 56 | 191 | – | 247 | |||||||
RMS 7–9 | 784 | 3,578 | – | 4,362 | 27 | 164 | – | 191 | |||||||
RMS 10 | 8 | 588 | – | 596 | 1 | 43 | – | 44 | |||||||
RMS 11–13 | 11 | 1,876 | – | 1,887 | – | 180 | – | 180 | |||||||
RMS 14 | – | – | 4,041 | 4,041 | – | – | 665 | 665 | |||||||
244,543 | 25,570 | 4,041 | 274,154 | 141 | 762 | 665 | 1,568 | ||||||||
CMS 1–5 | 1,201 | 1 | – | 1,202 | – | – | – | – | |||||||
CMS 6–10 | 1,302 | – | – | 1,302 | 1 | 1 | |||||||||
CMS 11–14 | 2,797 | 361 | – | 3,158 | 8 | 7 | – | 15 | |||||||
CMS 15–18 | 162 | 453 | – | 615 | 2 | 37 | – | 39 | |||||||
CMS 19 | 2 | 35 | – | 37 | – | 4 | – | 4 | |||||||
CMS 20–23 | – | – | 1,520 | 1,520 | – | – | 712 | 712 | |||||||
5,464 | 850 | 1,520 | 7,834 | 11 | 48 | 712 | 771 | ||||||||
Central adjustment | – | – | – | – | 240 | – | – | 240 | |||||||
Total loans and advances to customers | 250,007 | 26,420 | 5,561 | 281,988 | 392 | 810 | 1,377 | 2,579 | |||||||
The Group – Gross undrawn exposures and expected credit loss allowance | Undrawn exposures | 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 | |||||||||||||||
RMS 1–3 | 35,251 | 137 | – | 35,388 | 14 | – | – | 14 | |||||||
RMS 4–6 | 2,951 | 1,405 | – | 4,356 | 10 | 19 | – | 29 | |||||||
RMS 7–9 | 107 | 85 | – | 192 | 2 | 3 | – | 5 | |||||||
RMS 10 | – | 15 | – | 15 | – | 1 | – | 1 | |||||||
RMS 11–13 | – | 28 | – | 28 | – | 2 | – | 2 | |||||||
RMS 14 | – | – | 44 | 44 | – | – | – | – | |||||||
38,309 | 1,670 | 44 | 40,023 | 26 | 25 | – | 51 | ||||||||
CMS 1–5 | 1,233 | – | – | 1,233 | – | – | – | – | |||||||
CMS 6–10 | 1,963 | – | – | 1,963 | – | – | – | – | |||||||
CMS 11–14 | 569 | 149 | – | 718 | – | 3 | – | 3 | |||||||
CMS 15–18 | 10 | 59 | – | 69 | – | 1 | – | 1 | |||||||
CMS 19 | – | – | – | – | – | – | – | – | |||||||
CMS 20–23 | – | – | 2 | 2 | – | – | 1 | 1 | |||||||
3,775 | 208 | 2 | 3,985 | – | 4 | 1 | 5 | ||||||||
Total | 42,084 | 1,878 | 46 | 44,008 | 26 | 29 | 1 | 56 | |||||||
Drawn exposures | Expected credit loss allowance | ||||||||||||||
The Bank – 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 | 112 | – | – | 112 | – | – | – | – | |||||||
CMS 6–10 | 59 | – | – | 59 | – | – | – | – | |||||||
CMS 11–14 | – | – | – | – | – | – | – | – | |||||||
CMS 15–18 | – | – | – | – | – | – | – | – | |||||||
CMS 19 | – | – | – | – | – | – | – | – | |||||||
CMS 20–23 | – | – | – | – | – | – | – | – | |||||||
171 | – | – | 171 | – | – | – | – | ||||||||
Loans and advances to customers | |||||||||||||||
RMS 1–3 | 220,717 | 22,031 | – | 242,748 | 85 | 175 | – | 260 | |||||||
RMS 4–6 | 10,135 | 11,562 | – | 21,697 | 62 | 178 | – | 240 | |||||||
RMS 7–9 | 1,187 | 3,382 | – | 4,569 | 46 | 183 | – | 229 | |||||||
RMS 10 | 24 | 947 | – | 971 | 2 | 71 | – | 73 | |||||||
RMS 11–13 | 9 | 2,956 | – | 2,965 | 2 | 277 | – | 279 | |||||||
RMS 14 | – | – | 5,382 | 5,382 | – | – | 751 | 751 | |||||||
232,072 | 40,878 | 5,382 | 278,332 | 197 | 884 | 751 | 1,832 | ||||||||
CMS 1–5 | 1,216 | – | – | 1,216 | – | – | – | – | |||||||
CMS 6–10 | 1,412 | 24 | – | 1,436 | 1 | – | – | 1 | |||||||
CMS 11–14 | 2,194 | 500 | – | 2,694 | 10 | 7 | – | 17 | |||||||
CMS 15–18 | 545 | 573 | – | 1,118 | 8 | 36 | – | 44 | |||||||
CMS 19 | 4 | 71 | – | 75 | – | 8 | – | 8 | |||||||
CMS 20–23 | – | – | 1,564 | 1,564 | – | – | 912 | 912 | |||||||
5,371 | 1,168 | 1,564 | 8,103 | 19 | 51 | 912 | 982 | ||||||||
Central adjustment | – | – | – | – | – | – | – | – | |||||||
Total loans and advances to customers | 237,443 | 42,046 | 6,946 | 286,435 | 216 | 935 | 1,663 | 2,814 | |||||||
The Bank – Gross undrawn exposures and expected credit loss allowance | Undrawn exposures | 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 | |||||||||||||||
RMS 1–3 | 31,512 | 177 | – | 31,689 | 8 | – | – | 8 | |||||||
RMS 4–6 | 4,853 | 1,565 | – | 6,418 | 14 | 21 | – | 35 | |||||||
RMS 7–9 | 272 | 253 | – | 525 | 3 | 12 | – | 15 | |||||||
RMS 10 | 2 | 43 | – | 45 | – | 4 | – | 4 | |||||||
RMS 11–13 | – | 69 | – | 69 | – | 9 | – | 9 | |||||||
RMS 14 | – | – | 49 | 49 | – | – | – | – | |||||||
36,639 | 2,107 | 49 | 38,795 | 25 | 46 | – | 71 | ||||||||
CMS 1–5 | 655 | – | – | 655 | – | – | – | – | |||||||
CMS 6–10 | 2,716 | 1 | – | 2,717 | 1 | – | – | 1 | |||||||
CMS 11–14 | 673 | 61 | – | 734 | 2 | 1 | – | 3 | |||||||
CMS 15–18 | 31 | 61 | – | 92 | 1 | 4 | – | 5 | |||||||
CMS 19 | – | 1 | – | 1 | – | – | – | – | |||||||
CMS 20–23 | – | – | 2 | 2 | – | – | 1 | 1 | |||||||
4,075 | 124 | 2 | 4,201 | 4 | 5 | 1 | 10 | ||||||||
Total | 40,714 | 2,231 | 51 | 42,996 | 29 | 51 | 1 | 81 | |||||||
Drawn exposures | Expected credit loss allowance | ||||||||||||||
The Bank – 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 | 46 | – | – | 46 | – | – | – | – | |||||||
CMS 6–10 | 4 | – | – | 4 | – | – | – | – | |||||||
CMS 11–14 | – | – | – | – | – | – | – | – | |||||||
CMS 15–18 | – | – | – | – | – | – | – | – | |||||||
CMS 19 | – | – | – | – | – | – | – | – | |||||||
CMS 20–23 | – | – | – | – | – | – | – | – | |||||||
50 | – | – | 50 | – | – | – | – | ||||||||
Loans and advances to customers | |||||||||||||||
RMS 1–3 | 235,336 | 9,650 | – | 244,986 | 55 | 166 | – | 221 | |||||||
RMS 4–6 | 6,469 | 9,112 | – | 15,581 | 56 | 171 | – | 227 | |||||||
RMS 7–9 | 780 | 3,407 | – | 4,187 | 27 | 153 | – | 180 | |||||||
RMS 10 | 8 | 555 | – | 563 | 1 | 39 | – | 40 | |||||||
RMS 11–13 | 11 | 1,789 | – | 1,800 | – | 171 | – | 171 | |||||||
RMS 14 | – | – | 3,706 | 3,706 | – | – | 583 | 583 | |||||||
242,604 | 24,513 | 3,706 | 270,823 | 139 | 700 | 583 | 1,422 | ||||||||
CMS 1–5 | 1,193 | 1 | – | 1,194 | – | – | – | – | |||||||
CMS 6–10 | 1,203 | – | – | 1,203 | 1 | – | – | 1 | |||||||
CMS 11–14 | 2,690 | 361 | – | 3,051 | 7 | 7 | – | 14 | |||||||
CMS 15–18 | 162 | 453 | – | 615 | 2 | 37 | – | 39 | |||||||
CMS 19 | 2 | 35 | – | 37 | – | 4 | – | 4 | |||||||
CMS 20–23 | – | – | 1,545 | 1,545 | – | – | 743 | 743 | |||||||
5,250 | 850 | 1,545 | 7,645 | 10 | 48 | 743 | 801 | ||||||||
Central adjustment | – | – | – | – | 240 | – | – | 240 | |||||||
Total loans and advances to customers | 247,854 | 25,363 | 5,251 | 278,468 | 389 | 748 | 1,326 | 2,463 | |||||||
The Bank – Gross undrawn exposures and expected credit loss allowance | Undrawn exposures | 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 | |||||||||||||||
RMS 1–3 | 35,166 | 127 | – | 35,293 | 14 | – | – | 14 | |||||||
RMS 4–6 | 2,947 | 1,359 | – | 4,306 | 10 | 19 | – | 29 | |||||||
RMS 7–9 | 107 | 85 | – | 192 | 2 | 3 | – | 5 | |||||||
RMS 10 | – | 15 | – | 15 | – | 1 | – | 1 | |||||||
RMS 11–13 | – | 28 | – | 28 | – | 2 | – | 2 | |||||||
RMS 14 | – | – | 42 | 42 | – | – | – | – | |||||||
38,220 | 1,614 | 42 | 39,876 | 26 | 25 | – | 51 | ||||||||
CMS 1–5 | 1,233 | – | – | 1,233 | – | – | – | – | |||||||
CMS 6–10 | 1,963 | – | – | 1,963 | – | – | – | – | |||||||
CMS 11–14 | 569 | 149 | – | 718 | – | 3 | – | 3 | |||||||
CMS 15–18 | 10 | 59 | – | 69 | – | 1 | – | 1 | |||||||
CMS 19 | – | – | – | – | – | – | – | – | |||||||
CMS 20–23 | – | – | 2 | 2 | – | – | 1 | 1 | |||||||
3,775 | 208 | 2 | 3,985 | – | 4 | 1 | 5 | ||||||||
Total | 41,995 | 1,822 | 44 | 43,861 | 26 | 29 | 1 | 56 | |||||||
2022 | 2021 | ||||||||||
The Group and the Bank | Investment grade1 £m | Other2 £m | Total £m | Investment grade1 £m | Other2 £m | Total £m | |||||
Corporate and other debt securities | – | – | – | 2,003 | 44 | 2,047 | |||||
2022 | 2021 | ||||||||||
The Group | Investment grade1 £m | Other2 £m | Total £m | Investment grade1 £m | Other2 £m | Total £m | |||||
Trading and other | 406 | 170 | 576 | 1,158 | 693 | 1,851 | |||||
Hedging | – | – | – | 2 | – | 2 | |||||
406 | 170 | 576 | 1,160 | 693 | 1,853 | ||||||
Due from fellow Lloyds Banking Group undertakings | 2,901 | 2,411 | |||||||||
Total derivative financial instruments | 3,477 | 4,264 | |||||||||
2022 | 2021 | ||||||||||
The Bank | Investment grade1 £m | Other2 £m | Total £m | Investment grade1 £m | Other2 £m | Total £m | |||||
Trading and other | 379 | 170 | 549 | 1,156 | 693 | 1,849 | |||||
Hedging | – | – | – | 2 | – | 2 | |||||
379 | 170 | 549 | 1,158 | 693 | 1,851 | ||||||
Due from fellow Lloyds Banking Group undertakings | 2,927 | 2,413 | |||||||||
Total derivative financial instruments | 3,476 | 4,264 | |||||||||
The Group | The Bank | ||||||||
Stage 1 £m | Stage 2 £m | Stage 3 £m | Total gross £m | Stage 1 £m | Stage 2 £m | Stage 3 £m | Total gross £m | ||
At 31 December 2022 | |||||||||
Less than 70 per cent | 180,384 | 31,457 | 4,842 | 216,683 | 179,093 | 30,670 | 4,477 | 214,240 | |
70 per cent to 80 per cent | 30,162 | 5,024 | 340 | 35,526 | 30,136 | 4,989 | 306 | 35,431 | |
80 per cent to 90 per cent | 11,499 | 2,501 | 134 | 14,134 | 11,495 | 2,478 | 114 | 14,087 | |
90 per cent to 100 per cent | 3,215 | 643 | 82 | 3,940 | 3,215 | 618 | 68 | 3,901 | |
Greater than 100 per cent | 10 | 161 | 185 | 356 | 10 | 135 | 147 | 292 | |
Total | 225,270 | 39,786 | 5,583 | 270,639 | 223,949 | 38,890 | 5,112 | 267,951 | |
At 31 December 2021 | |||||||||
Less than 70 per cent | 182,922 | 21,843 | 2,970 | 207,735 | 181,117 | 20,916 | 2,750 | 204,783 | |
70 per cent to 80 per cent | 40,313 | 1,722 | 325 | 42,360 | 40,244 | 1,668 | 287 | 42,199 | |
80 per cent to 90 per cent | 11,509 | 299 | 138 | 11,946 | 11,485 | 275 | 117 | 11,877 | |
90 per cent to 100 per cent | 718 | 109 | 79 | 906 | 703 | 93 | 66 | 862 | |
Greater than 100 per cent | 145 | 212 | 190 | 547 | 119 | 178 | 147 | 444 | |
Total | 235,607 | 24,185 | 3,702 | 263,494 | 233,668 | 23,130 | 3,367 | 260,165 | |
The Group | The Bank | ||||
2022 £m | 2021 £m | 2022 £m | 2021 £m | ||
Financial assets at fair value through other comprehensive income | – | 24 | – | 24 | |
The Group | 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 | 1 | – | – | 195 | 1 | 197 | |||||
Customer deposits | 156,411 | 2,027 | 5,074 | 3,396 | 3 | 166,911 | |||||
Repurchase agreements | 216 | – | 904 | 33,054 | 38 | 34,212 | |||||
Financial liabilities at fair value through profit or loss | – | – | – | – | 26 | 26 | |||||
Debt securities in issue | 183 | 40 | 2,176 | 4,089 | 1,405 | 7,893 | |||||
Lease liabilities | 1 | 22 | 64 | 259 | 259 | 605 | |||||
Subordinated liabilities | – | 125 | 8 | 1,526 | 93 | 1,752 | |||||
Total non-derivative financial liabilities | 156,812 | 2,214 | 8,226 | 42,519 | 1,825 | 211,596 | |||||
Derivative financial liabilities: | |||||||||||
Gross settled derivatives – outflows | 85 | 28 | 68 | 646 | 1,615 | 2,442 | |||||
Gross settled derivatives – inflows | (50) | (7) | (68) | (652) | (1,597) | (2,374) | |||||
Gross settled derivatives – net flows | 35 | 21 | – | (6) | 18 | 68 | |||||
Net settled derivative liabilities | 265 | – | – | – | 37 | 302 | |||||
Total derivative financial liabilities | 300 | 21 | – | (6) | 55 | 370 | |||||
At 31 December 2021 | |||||||||||
Deposits from banks | – | – | – | 599 | – | 599 | |||||
Customer deposits | 163,248 | 550 | 2,996 | 4,266 | 5 | 171,065 | |||||
Repurchase agreements | 9 | 10 | 170 | 30,994 | – | 31,183 | |||||
Financial liabilities at fair value through profit or loss | – | – | – | – | 33 | 33 | |||||
Debt securities in issue | 1 | 20 | 3,155 | 3,842 | 475 | 7,493 | |||||
Lease liabilities | 1 | 29 | 75 | 272 | 396 | 773 | |||||
Subordinated liabilities | 22 | 5 | 3 | 1,678 | 87 | 1,795 | |||||
Total non-derivative financial liabilities | 163,281 | 614 | 6,399 | 41,651 | 996 | 212,941 | |||||
Derivative financial liabilities: | |||||||||||
Gross settled derivatives – outflows | 32 | 29 | 404 | 865 | 647 | 1,977 | |||||
Gross settled derivatives – inflows | (10) | (18) | (400) | (838) | (639) | (1,905) | |||||
Gross settled derivatives – net flows | 22 | 11 | 4 | 27 | 8 | 72 | |||||
Net settled derivative liabilities | 475 | – | – | – | 40 | 515 | |||||
Total derivative financial liabilities | 497 | 11 | 4 | 27 | 48 | 587 |
The Bank | 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 | 1 | – | – | 195 | 1 | 197 | |||||
Customer deposits | 156,411 | 2,027 | 5,074 | 3,396 | 3 | 166,911 | |||||
Repurchase agreements | 216 | – | 904 | 33,054 | 38 | 34,212 | |||||
Debt securities in issue | 11 | 34 | 1,924 | 3,656 | 1,405 | 7,030 | |||||
Lease liabilities | 1 | 22 | 64 | 259 | 259 | 605 | |||||
Subordinated liabilities | – | 125 | 8 | 1,526 | 93 | 1,752 | |||||
Total non-derivative financial liabilities | 156,640 | 2,208 | 7,974 | 42,086 | 1,799 | 210,707 | |||||
Derivative financial liabilities: | |||||||||||
Gross settled derivatives – outflows | 85 | 28 | 68 | 646 | 1,615 | 2,442 | |||||
Gross settled derivatives – inflows | (50) | (7) | (68) | (652) | (1,597) | (2,374) | |||||
Gross settled derivatives – net flows | 35 | 21 | – | (6) | 18 | 68 | |||||
Net settled derivative liabilities | 265 | – | – | – | – | 265 | |||||
Total derivative financial liabilities | 300 | 21 | – | (6) | 18 | 333 | |||||
At 31 December 2021 | |||||||||||
Deposits from banks | – | – | – | 599 | – | 599 | |||||
Customer deposits | 163,248 | 550 | 2,996 | 4,266 | 5 | 171,065 | |||||
Repurchase agreements | 9 | 10 | 170 | 30,994 | – | 31,183 | |||||
Debt securities in issue | – | 19 | 2,321 | 3,263 | 226 | 5,829 | |||||
Lease liabilities | 1 | 29 | 75 | 272 | 396 | 773 | |||||
Subordinated liabilities | 22 | 5 | 3 | 1,678 | 87 | 1,795 | |||||
Total non-derivative financial liabilities | 163,280 | 613 | 5,565 | 41,072 | 714 | 211,244 | |||||
Derivative financial liabilities: | |||||||||||
Gross settled derivatives – outflows | 32 | 29 | 404 | 865 | 647 | 1,977 | |||||
Gross settled derivatives – inflows | (10) | (18) | (400) | (838) | (639) | (1,905) | |||||
Gross settled derivatives – net flows | 22 | 11 | 4 | 27 | 8 | 72 | |||||
Net settled derivative liabilities | 468 | – | – | – | – | 468 | |||||
Total derivative financial liabilities | 490 | 11 | 4 | 27 | 8 | 540 |
The Group | Within 1 year £m | 1–3 years £m | 3–5 years £m | Over 5 years £m | Total £m |
At 31 December 2022 | |||||
Total contingent liabilities | 17 | 8 | 1 | 71 | 97 |
Lending commitments and guarantees | 61,052 | 1,122 | 683 | 2,331 | 65,188 |
Other commitments | – | – | – | – | – |
Total commitments and guarantees | 61,052 | 1,122 | 683 | 2,331 | 65,188 |
Total contingents, commitments and guarantees | 61,069 | 1,130 | 684 | 2,402 | 65,285 |
At 31 December 2021 | |||||
Total contingent liabilities | 135 | 26 | 30 | 72 | 263 |
Lending commitments and guarantees | 40,941 | 1,461 | 592 | 1,008 | 44,002 |
Other commitments | – | – | – | 6 | 6 |
Total commitments and guarantees | 40,941 | 1,461 | 592 | 1,014 | 44,008 |
Total contingents, commitments and guarantees | 41,076 | 1,487 | 622 | 1,086 | 44,271 |
The Bank | Within 1 year £m | 1–3 years £m | 3–5 years £m | Over 5 years £m | Total £m |
At 31 December 2022 | |||||
Total contingent liabilities | 17 | 8 | 1 | 71 | 97 |
Lending commitments and guarantees | 38,860 | 1,122 | 683 | 2,331 | 42,996 |
Other commitments | – | – | – | – | – |
Total commitments and guarantees | 38,860 | 1,122 | 683 | 2,331 | 42,996 |
Total contingents, commitments and guarantees | 38,877 | 1,130 | 684 | 2,402 | 43,093 |
At 31 December 2021 | |||||
Total contingent liabilities | 135 | 26 | 30 | 72 | 263 |
Lending commitments and guarantees | 40,794 | 1,461 | 592 | 1,008 | 43,855 |
Other commitments | – | – | – | 6 | 6 |
Total commitments and guarantees | 40,794 | 1,461 | 592 | 1,014 | 43,861 |
Total contingents, commitments and guarantees | 40,929 | 1,487 | 622 | 1,086 | 44,124 |
2022 £m | 2021 £m | |
Common equity tier 1 capital | 11,284 | 9,540 |
Additional tier 1 capital | 2,200 | 2,222 |
Tier 2 capital | 1,846 | 1,497 |
Total capital | 15,330 | 13,259 |
The Group | The Bank | ||||
2022 £m | 20211 £m | 2022 £m | 20211 £m | ||
Change in amounts due from fellow Lloyds Banking Group undertakings | 1,003 | 11,927 | 895 | 14,791 | |
Change in other financial assets held at amortised cost | (7,315) | (15,286) | (8,029) | (15,984) | |
Change in financial assets at fair value through profit or loss | 71 | 115 | 38 | 5 | |
Change in derivative financial instruments | 805 | 3,139 | 806 | 3,139 | |
Change in other operating assets | (183) | 102 | (198) | 93 | |
Change in operating assets | (5,619) | (3) | (6,488) | 2,044 | |
The Group | The Bank | ||||
2022 £m | 2021 £m | 2022 £m | 2021 £m | ||
Change in deposits from banks | (402) | (418) | (402) | (417) | |
Change in customer deposits | (4,414) | 7,776 | (4,413) | 7,776 | |
Change in repurchase agreements | 182 | 16,348 | 182 | 16,348 | |
Change in amounts due to fellow Lloyds Banking Group undertakings | 8,178 | (14,114) | 8,370 | (16,419) | |
Change in financial liabilities at fair value through profit or loss | (7) | (13) | – | – | |
Change in derivative financial instruments | 250 | (4,352) | 277 | (4,216) | |
Change in debt securities in issue | (1,230) | (944) | (764) | (872) | |
Change in other operating liabilities1 | (103) | 68 | (81) | 75 | |
Change in operating liabilities | 2,454 | 4,351 | 3,169 | 2,275 | |
The Group | The Bank | ||||
2022 £m | 2021 £m | 2022 £m | 2021 £m | ||
Depreciation and amortisation | 224 | 284 | 212 | 284 | |
Dividends received from subsidiary undertakings | – | – | (126) | (49) | |
Allowance for loan losses | 602 | (303) | 554 | (252) | |
Write-off of allowance for loan losses, net of recoveries | (256) | (320) | (231) | (309) | |
Impairment (credit) charge relating to undrawn balances | 30 | (72) | 26 | (72) | |
Regulatory and legal provisions | 91 | 982 | 91 | 983 | |
Other provision movements | (38) | 3 | (36) | 4 | |
Foreign exchange impact on balance sheet1 | 216 | 20 | 222 | 15 | |
Interest expense on subordinated liabilities | 57 | 104 | 57 | 103 | |
Other non-cash items | 127 | 56 | 125 | 35 | |
Total non-cash items | 1,053 | 754 | 894 | 742 | |
Payments in respect of regulatory and legal provisions | (392) | (377) | (415) | (377) | |
Other | (1) | (114) | (1) | (114) | |
Total other items | (393) | (491) | (416) | (491) | |
Non-cash and other items | 660 | 263 | 478 | 251 | |
The Group | The Bank | ||||||
2022 £m | 20211 £m | 2022 £m | 20211 £m | ||||
Cash and balances at central banks | 3,004 | 3,201 | 3,004 | 3,201 | |||
Less mandatory reserve deposits2 | (977) | (1,044) | (977) | (1,044) | |||
2,027 | 2,157 | 2,027 | 2,157 | ||||
Loans and advances to banks | 198 | 51 | 171 | 50 | |||
Less amounts with a maturity of three months or more | (172) | (42) | (171) | (42) | |||
26 | 9 | – | 8 | ||||
Total cash and cash equivalents | 2,053 | 2,166 | 2,027 | 2,165 | |||
Name of undertaking | Notes |
Anglo Scottish Utilities Partnership | + * |
Automobile Association Personal Finance Ltd | 4 i |
Bank of Scotland (B G S) Nominees Ltd | 5 * |
Bank of Scotland Edinburgh Nominees Ltd | 5 * |
Bank of Scotland Equipment Finance Ltd | 9 i ‡ |
Bank of Scotland Structured Asset Finance Ltd | 1 i |
Bank of Scotland Transport Finance 1 Ltd | 9 i ‡ |
Bank of Wales Ltd | 7 i |
Barents Leasing Ltd | 1 i |
Birmingham Midshires Financial Services Ltd | 4 i ‡ |
Birmingham Midshires Mortgage Services Ltd | 9 i ‡ |
BOS (Ireland) Property Services 2 Ltd | 8 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 | 7 i |
Capital Bank Leasing 3 Ltd | 9 i ‡ |
Capital Bank Leasing 5 Ltd | 7 i |
Capital Bank Leasing 12 Ltd | 5 i |
Capital Bank Property Investments (3) Ltd | 7 i |
Capital Personal Finance Ltd | 4 i |
CF Asset Finance Ltd | 9 i ‡ |
First Retail Finance (Chester) Ltd | 4 i |
Forthright Finance Ltd | 7 i |
Halifax Leasing (March No.2) Ltd | 1 i |
Halifax Leasing (September) Ltd | 1 i |
Halifax Loans Ltd | 4 i |
Halifax Vehicle Leasing (1998) Ltd | 4 i |
HBOS Covered Bonds LLP | 4 * |
HBOS Social Housing Covered Bonds LLP | 7 * |
Home Shopping Personal Finance Ltd | 4 i |
IBOS Finance Ltd | 7 i |
Intelligent Finance Software Ltd | 4 i ‡ |
Lex Vehicle Leasing (Holdings) Ltd | 9 ii iii iv ‡ |
Name of undertaking | Notes |
Lex Vehicle Leasing Ltd | 9 i ‡ |
Lloyds Capital GP Ltd | 10 i |
Lloyds Secretaries Ltd | 1 i |
Loans.co.uk Ltd | 7 i |
MBNA Ltd | 7 i |
Membership Services Finance Ltd | 4 i |
NFU Mutual Finance Ltd | 7 ii vi # |
Nordic Leasing Ltd | 9 i ‡ |
NWS Trust Ltd | 5 i |
Pacific Leasing Ltd | 1 i |
Seabreeze Leasing Ltd | 1 i |
Seaspirit Leasing Ltd | 1 i |
Standard Property Investment (1987) Ltd | 5 ii # |
Sussex County Homes Ltd | 4 i |
The British Linen Company Ltd | 5 i |
The Mortgage Business plc | 4 i |
Thistle Leasing | + * |
Tower Hill Property Investments (7) Ltd | 7 i # |
Tower Hill Property Investments (10) Ltd | 7 i # |
Tranquility Leasing Ltd | 1 i |
Waymark Asset Investments Ltd | 1 ii iii |
Name of undertaking | Notes |
Addison Social Housing Holdings Ltd | 2 |
Deva Financing Holdings Ltd | 3 |
Deva Financing plc | 11 ‡ |
Edgbaston RMBS 2010-1 plc | 11 ‡ |
Edgbaston RMBS Holdings Ltd | 3 |
Elland RMBS 2018 plc | 3 |
Elland RMBS Holdings Ltd | 3 |
Molineux RMBS 2016-1 plc | 3 |
Molineux RMBS Holdings Ltd | 3 |
Penarth Asset Securitisation Holdings Ltd | 3 |
Penarth Funding 1 Ltd | 3 |
Penarth Funding 2 Ltd | 3 |
Penarth Master Issuer plc | 3 |
Penarth Receivables Trustee Ltd | 3 |
Permanent Funding (No. 1) Ltd | 3 |
Permanent Funding (No. 2) Ltd | 3 |
Permanent Holdings Ltd | 3 |
Permanent Master Issuer plc | 3 |
Permanent Mortgages Trustee Ltd | 3 |
Permanent PECOH Holdings Ltd | 3 |
Permanent PECOH Ltd | 3 |
Syon Securities 2019 DAC | 6 |
Syon Securities 2020 DAC | 6 |
Syon Securities 2020-2 DAC | 6 |
Wilmington Cards 2021-1 plc | 3 |
Wilmington Cards Holdings Ltd | 3 |
Wilmington Receivables Trustee Ltd | 3 |
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 & |
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 |
& | 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 | Redeemable preference shares |
v | Preference shares |
vi | C Ordinary shares |
Registered office addresses | |
1 | 25 Gresham Street, London, EC2V 7HN |
2 | 44 Esplanade, St. Helier, Jersey, JE4 9WG |
3 | 1 Bartholomew Lane, London, EC2N 2AX |
4 | Trinity Road, Halifax, West Yorkshire, HX1 2RG |
5 | The Mound, Edinburgh, EH1 1YZ |
6 | 5th Floor, The Exchange, George’s Dock, IFSC, Dublin 1, Ireland |
7 | Cawley House, Chester Business Park, Chester, CH4 9FB |
8 | Suite 6, Rineanna House, Shannon Free Zone, Co. Clare, Ireland |
9 | 1 More London Place, London, SE1 2AF |
10 | 6th Floor, 125 London Wall, London, EC2Y 5AS |
11 | 40a Station Road, Upminster, Essex, RM14 2TR |