Santander UK plc | |||||||||||
Half Yearly Financial Report 2021 | |||||||||||
Contents | |||||||||||
Chief Executive Officer's review | 2 | ||||||||||
Financial overview | 3 | ||||||||||
Operating environment and stakeholder update | 5 | ||||||||||
Financial review | 7 | ||||||||||
Risk review | 14 | ||||||||||
Financial statements | 52 | ||||||||||
Shareholder information | 78 |
30 June 2021 | 30 June 2020 | |||||||
Income statement highlights | £m | £m | ||||||
Net interest income | 1,905 | 1,528 | ||||||
Non-interest income(1) | 286 | 300 | ||||||
Total operating income | 2,191 | 1,828 | ||||||
Operating expenses before credit impairment losses, provisions and charges | (1,328) | (1,212) | ||||||
Credit impairment losses | 70 | (364) | ||||||
Provisions for other liabilities and charges | (190) | (64) | ||||||
Total operating credit impairment losses, provisions and charges | (120) | (428) | ||||||
Profit from continuing operations before tax | 743 | 188 | ||||||
Tax on profit from continuing operations | (205) | (48) | ||||||
Profit from continuing operations after tax | 538 | 140 | ||||||
Profit/(loss) from discontinued operations after tax | 24 | (1) | ||||||
Profit after tax | 562 | 139 |
30 June 2021 | 31 December 2020 | |||||||
£bn | £bn | |||||||
Customer loans(1) | 208.4 | 207.0 | ||||||
- of which retail mortgages | 170.6 | 166.7 | ||||||
- of which consumer (auto) finance and unsecured lending | 7.7 | 8.0 | ||||||
- of which corporates | 22.9 | 24.3 | ||||||
Customer deposits(1) | 189.4 | 185.7 |
30 June 2021 | 31 December 2020 | |||||||
Capital and funding | £bn | £bn | ||||||
CET1 capital | 11.3 | 11.1 | ||||||
Risk-weighted assets | 71.7 | 71.9 | ||||||
CET1 capital ratio | 15.8 | % | 15.4 | % | ||||
Total wholesale funding and AT1 | 59.0 | 65.3 | ||||||
- of which with a residual maturity of less than one year | 17.0 | 21.1 |
30 June 2021 | 31 December 2020 | |||||||
Liquidity | £bn | £bn | ||||||
Santander UK Domestic Liquidity Sub Group (RFB DoLSub) | ||||||||
Liquidity Coverage Ratio (LCR) | 144 | % | 150 | % | ||||
LCR eligible liquidity pool | 47.0 | 51.5 |
Strategic report | Financial review | Risk review | Financial statements | Shareholder information | ||||||||||||||||||||||
Financial review | |||||||||||
Contents | |||||||||||
Income statement review | 8 | ||||||||||
Summarised Consolidated Income Statement | 8 | ||||||||||
Profit before tax by segment | 9 | ||||||||||
Balance sheet review | 10 | ||||||||||
Summarised Consolidated Balance Sheet | 10 | ||||||||||
Customer balances | 12 | ||||||||||
Capital and funding | 13 | ||||||||||
Liquidity | 13 | ||||||||||
Half year to | Half year to(2) | ||||||||||
30 June 2021 | 30 June 2020 | ||||||||||
£m | £m | ||||||||||
Net interest income | 1,905 | 1,528 | |||||||||
Non-interest income(1) | 286 | 300 | |||||||||
Total operating income | 2,191 | 1,828 | |||||||||
Operating expenses before credit impairment losses, provisions and charges | (1,328) | (1,212) | |||||||||
Credit impairment losses | 70 | (364) | |||||||||
Provisions for other liabilities and charges | (190) | (64) | |||||||||
Total operating credit impairment losses, provisions and charges | (120) | (428) | |||||||||
Profit from continuing operations before tax | 743 | 188 | |||||||||
Tax on profit from continuing operations | (205) | (48) | |||||||||
Profit from continuing operations after tax | 538 | 140 | |||||||||
Profit/(loss) from discontinued operations after tax | 24 | (1) | |||||||||
Profit after tax | 562 | 139 | |||||||||
Attributable to: | |||||||||||
Equity holders of the parent | 545 | 128 | |||||||||
Non- controlling interests | 17 | 11 | |||||||||
Profit after tax | 562 | 139 |
Strategic report | Financial review | Risk review | Financial statements | Shareholder information | ||||||||||||||||||||||
Half year to(3) | Retail Banking(2) | Corporate & Commercial Banking(2) | Corporate & Investment Banking(2) | Corporate Centre(2) | Total | ||||||||||||
30 June 2021 | £m | £m | £m | £m | £m | ||||||||||||
Net interest income/(expense) | 1,741 | 203 | — | (39) | 1,905 | ||||||||||||
Non-interest income(1) | 189 | 51 | — | 46 | 286 | ||||||||||||
Total operating income/(expense) | 1,930 | 254 | — | 7 | 2,191 | ||||||||||||
Operating expenses before credit impairment losses, provisions and charges | (922) | (177) | — | (229) | (1,328) | ||||||||||||
Credit impairment losses | 48 | 22 | — | — | 70 | ||||||||||||
Provisions for other liabilities and charges | (67) | (5) | — | (118) | (190) | ||||||||||||
Total operating credit impairment losses, provisions and charges | (19) | 17 | — | (118) | (120) | ||||||||||||
Profit from continuing operations before tax | 989 | 94 | — | (340) | 743 | ||||||||||||
Half year to(3) | |||||||||||||||||
30 June 2020 | |||||||||||||||||
Net interest income/(expense) | 1,369 | 181 | — | (22) | 1,528 | ||||||||||||
Non-interest income(1) | 227 | 49 | — | 24 | 300 | ||||||||||||
Total operating income/(expense) | 1,596 | 230 | — | 2 | 1,828 | ||||||||||||
Operating expenses before credit impairment losses, provisions and charges | (983) | (161) | — | (68) | (1,212) | ||||||||||||
Credit impairment losses | (214) | (150) | — | — | (364) | ||||||||||||
Provisions for other liabilities and charges | (56) | 3 | — | (11) | (64) | ||||||||||||
Total operating credit impairment losses, provisions and charges | (270) | (147) | — | (11) | (428) | ||||||||||||
Profit from continuing operations before tax | 343 | (78) | — | (77) | 188 | ||||||||||||
Half year to | Half year to | |||||||
30 June 2021 | 30 June 2020 | |||||||
£m | £m | |||||||
Net interest income | 24 | 25 | ||||||
Non-interest income(1) | 27 | 22 | ||||||
Operating income | 51 | 47 | ||||||
Operating expenses before impairment losses, provisions and charges | (22) | (33) | ||||||
Credit Impairment losses | 7 | (12) | ||||||
Provisions for other liabilities and charges | (3) | (4) | ||||||
Profit/ (loss) from discontinued operations before tax | 33 | (2) | ||||||
Tax on profit/ (loss) from discontinued operations | (9) | 1 | ||||||
Profit/ (loss) from discontinued operations after tax | 24 | (1) | ||||||
30 June 2021 | 31 December 2020 | |||||||
£m | £m | |||||||
Assets | ||||||||
Cash and balances at central banks | 39,021 | 41,250 | ||||||
Financial assets at fair value through profit or loss | 2,181 | 3,614 | ||||||
Financial assets at amortised cost | 228,037 | 231,194 | ||||||
Financial assets at fair value through other comprehensive income | 6,368 | 8,950 | ||||||
Interest in other entities | 183 | 172 | ||||||
Property, plant and equipment | 1,596 | 1,734 | ||||||
Retirement benefit assets | 1,083 | 495 | ||||||
Tax, intangibles and other assets | 4,500 | 4,923 | ||||||
Assets held for sale | 2,645 | — | ||||||
Total assets | 285,614 | 292,332 | ||||||
Liabilities | ||||||||
Financial liabilities at fair value through profit or loss | 2,086 | 3,018 | ||||||
Financial liabilities at amortised cost | 259,561 | 270,063 | ||||||
Retirement benefit obligations | 152 | 403 | ||||||
Tax, other liabilities and provisions | 3,195 | 2,912 | ||||||
Liabilities held for sale | 3,912 | — | ||||||
Total liabilities | 268,906 | 276,396 | ||||||
Equity | ||||||||
Total shareholders’ equity | 16,528 | 15,774 | ||||||
Non-controlling interests | 180 | 162 | ||||||
Total equity | 16,708 | 15,936 | ||||||
Total liabilities and equity | 285,614 | 292,332 |
Strategic report | Financial review | Risk review | Financial statements | Shareholder information | ||||||||||||||||||||||
30 June 2021 | 31 December 2020 | |||||||
£bn | £bn | |||||||
Customer loans(1) | 208.4 | 207.0 | ||||||
Other assets | 77.2 | 85.3 | ||||||
Total assets | 285.6 | 292.3 | ||||||
Customer deposits(1) | 189.4 | 185.7 | ||||||
Total wholesale funding | 56.8 | 63.1 | ||||||
Other liabilities | 22.7 | 27.5 | ||||||
Total liabilities | 268.9 | 276.3 | ||||||
Shareholders' equity | 16.5 | 15.8 | ||||||
Non-controlling interest | 0.2 | 0.2 | ||||||
Total liabilities and equity | 285.6 | 292.3 |
30 June 2021 | 31 December 2020 | |||||||
£bn | £bn | |||||||
Mortgages | 170.6 | 166.7 | ||||||
Business banking | 3.9 | 3.9 | ||||||
Consumer (auto) finance | 7.7 | 8.0 | ||||||
Other unsecured lending | 4.5 | 4.8 | ||||||
Customer loans | 186.7 | 183.4 | ||||||
Current accounts | 80.0 | 75.6 | ||||||
Savings | 58.2 | 57.4 | ||||||
Business banking accounts | 13.1 | 13.4 | ||||||
Other retail products | 5.4 | 5.8 | ||||||
Customer deposits | 156.7 | 152.2 |
30 June 2021 | 31 December 2020 | |||||||
£bn | £bn | |||||||
Non-Commercial Real Estate trading businesses | 12.7 | 12.9 | ||||||
Commercial Real Estate | 4.4 | 4.7 | ||||||
Customer loans | 17.1 | 17.6 | ||||||
Customer deposits | 25.3 | 25.0 |
30 June 2021 | 31 December 2020 | |||||||
£bn | £bn | |||||||
Customer loans | 1.9 | 2.8 | ||||||
Customer deposits | 3.8 | 6.5 |
30 June 2021 | 31 December 2020 | |||||||
£bn | £bn | |||||||
Social Housing | 2.6 | 3.0 | ||||||
Non-core | 0.1 | 0.2 | ||||||
Customer loans | 2.7 | 3.2 | ||||||
Customer deposits | 3.6 | 2.0 |
Strategic report | Financial review | Risk review | Financial statements | Shareholder information | ||||||||||||||||||||||
30 June 2021 | |||||
£bn | |||||
CIB Part VII banking business transfer scheme | 1.9 | ||||
Retail Mortgages | 0.6 | ||||
Customer loans held for sale | 2.5 |
30 June 2021 | |||||
£bn | |||||
CIB Part VII banking business transfer scheme | 3.8 | ||||
Customer deposits held for sale | 3.8 |
30 June 2021 | 31 December 2020 | |||||||
£bn | £bn | |||||||
Capital | ||||||||
CET1 capital | 11.3 | 11.1 | ||||||
Total qualifying regulatory capital | 15.0 | 15.2 | ||||||
CET1 capital ratio | 15.8 | % | 15.4 | % | ||||
Total capital ratio | 21.0 | % | 21.2 | % | ||||
Risk-weighted assets | 71.7 | 71.9 | ||||||
Funding | ||||||||
Total wholesale funding and AT1 | 59.0 | 65.3 | ||||||
- of which with a residual maturity of less than one year | 17.0 | 21.1 |
30 June 2021 | 31 December 2020 | |||||||
£bn | £bn | |||||||
Santander UK Domestic Liquidity Sub Group (RFB DoLSub) | ||||||||
Liquidity Coverage Ratio (LCR) | 144 | % | 150 | % | ||||
LCR eligible liquidity pool | 47.0 | 51.5 |
Risk review | |||||||||||
Contents | |||||||||||
Risk overview | 15 | ||||||||||
Risk governance | 17 | ||||||||||
Credit risk | 18 | ||||||||||
Santander UK group level | 18 | ||||||||||
Retail Banking | 34 | ||||||||||
Other business segments | 39 | ||||||||||
Market risk | 41 | ||||||||||
Liquidity risk | 42 | ||||||||||
Capital risk | 45 | ||||||||||
Pension risk | 47 | ||||||||||
Conduct and regulatory risk | 48 | ||||||||||
Operational risk | 49 | ||||||||||
Other key risks | 51 | ||||||||||
Credit | Market (Banking market) | Liquidity | Capital | ||||||||
Stage 3 ratio (%) 30 June 2021: 1.43 31 December 2020: 1.45 Prudent approach to credit risk reflected by low write-offs, no material corporate defaults in H121 and ECL provision of £1.2bn remaining (2020: £1.4bn). £70m credit impairment write back with modest release of Covid-19 related provision given the anticipated UK economic recovery. | NIM sensitivity +50 bps (£m) 30 June 2021: 219 31 December 2020: 225 The Santander UK plc group NIM sensitivity reduced in H121 largely due to changes in modelling assumptions used for risk measurement purposes. The UK interest rate environment has remained low for a prolonged period. As a commercial bank we are positioned to benefit from rising rates, although the pace and scale of expected change will moderate any impact on income. | RFB DoLSub Liquidity Coverage Ratio (%) 30 June 2021: 144% 31 December 2020: 150% The RFB DoLSub LCR of 144% reduced from 150% at the year-end, but remains significantly above regulatory requirements. | CET1 capital ratio (%) 30 June 2021: 15.8 31 December 2020: 15.4 CET1 capital ratio increased 40bps to 15.8%, with capital accretion through retained profits, RWA management and market driven improvements in the defined benefit pensions scheme. | ||||||||
Pension | Conduct & Regulatory | Operational | Financial crime | ||||||||
Funded defined benefit pension scheme accounting surplus (£m) 30 June 2021: 970 31 December 2020: 134 We continue to focus on achieving the right balance between risk and reward. The main risk management developments in H121 were an increase in interest rate and inflation hedging, and the transaction of a longevity swap to cover circa £5bn of pension obligations. In H121, the accounting position improved due to a rise in the discount rate and increases in growth assets. | Conduct provision (£m) 30 June 2021: 45 31 December 2020: 84 The remaining provision for PPI redress and related costs was £37m (2020: £76m). There were no additional provisions in H121. In H121, we continued to build on our progress in 2020 and remained vigilant in taking a customer-focused approach in developing strategy, products and policies that support fair customer outcomes and market integrity, in particular within the context of regulator and government driven Covid-19 initiatives. | Operational risk losses remain within forecast We continue to treat the wellbeing and safety of our colleagues as one of our top priorities, driven mainly by the challenging Covid-19 environment. In H121, we prioritised risk management of change and transformation, third-party suppliers, and cyber & IT development. We also developed our strategy for operational resilience. We also experienced a significant system outage in May 2021. The insights from this are feeding into our operational resilience programme. | £60m investment in financial crime enhancements planned for 2021 In H121, we continued embedding our anti-financial crime strategy, policies, and training across the business. We also built upon promoting the Anti-Financial Crime (AFC) Strategy by embedding the Anti Financial Crime Culture across the bank through a defined framework. We pro-actively identified potential risks posed by criminal exploitation of Government funding schemes, such as Bounce Back Loans and other Covid -19 related Government loans and grants. |
Risk Types | Top Risks | Emerging Risks | ||||||
Credit | Covid-19 (first & second order), Brexit | Extended Government involvement in Banking, Extended economic contraction, High inflation, Climate change, Disruption (macro economic factors) | ||||||
Market | Negative rates, Uncertainty (economic/geopolitical) | |||||||
Capital | Building and maintaining capital strength | Extended Government involvement in banking, Extended economic contraction, High inflation | ||||||
Pension | Pension risk, Capital risk | Extended economic contraction, High inflation | ||||||
Conduct & Regulatory | Conduct & Regulatory, Brexit, Ring-fencing implementation, Covid- 19 (first order) | Demanding regulatory agenda, Negative rates, IBOR transition | ||||||
Operational | Third party risk, Managing a complex change agenda, Cyber attacks, Data management, People, Covid-19 (First Order), Brexit | Brexit, Negative rates, IBOR transition, Other environmental/social, Climate change | ||||||
Financial crime | Financial crime | |||||||
Strategic & Business | Technological change, Customer behaviours, Intense competition | |||||||
Reputational | Negative rates, IBOR transition, Demanding regulatory agenda |
Overview Credit risk is the risk of loss due to the default or credit quality deterioration of a customer or counterparty to which we provided credit, or for which we assumed a financial obligation. In this section we begin by reviewing the latest forward-looking information used in our Expected Credit Loss (ECL) assessments. We then analyse our credit risk profile and performance at a Santander UK group level followed by Retail Banking, which is covered separately from our other business segments: Corporate & Commercial Banking, Corporate & Investment Banking and Corporate Centre. Credit risk profile and performance data include portfolios classified as held for sale at 30 June 2021, which includes the Corporate & Investment Banking business. For details, see Note 33 to the Condensed Consolidated Interim Financial Statements. | Key metrics Stage 3 ratio improved slightly to 1.43% (2020: 1.45%). Loss allowances decreased to £1,192m (2020: £1,377m). Average LTV of 63% (2020: 64%) on new mortgage lending. |
Base case key macroeconomic assumptions | ||
–House price growth: The end of the stamp duty holiday in its current form (nil rate up to £500,000) in June 2021, combined with the rise in unemployment is expected to lead to weaker demand and as such we expect to see house price growth slow towards the end of 2021. But with the supply side still weak, this will be limited. We are projecting growth of 2% by the end of 2021. | ||
–GDP: The outlook assumes the recovery is stronger than previously anticipated, given the relatively small contraction in Q121 (-1.6% quarter-on-quarter) and the stronger trajectory for growth due to the re-opening of key sectors, such as non-essential retail, alongside the successful vaccine rollout. We are projecting growth of 6.1% in 2021, but a slightly weaker outturn of 5.2% in 2022 as the economy returns to the more typical average growth rates seen pre-pandemic. | ||
–Unemployment rate: Unemployment is expected to peak in Q421 at 6.5% as the UK Government’s job support schemes come to an end. With support ending, for firms with limited savings left to keep trading, rising insolvency rates trigger a further increase in unemployment for some. As the economy returns to its pre-pandemic size in H122 and furloughed workers either return to their existing jobs or find new roles, unemployment falls back gradually. However, given the need for the economy to restructure, unemployment remains at elevated levels compared to recent figures over the remaining forecast period. | ||
–Bank Rate: For the Bank Rate forecast, the base case assumes a flat profile of 10bps with a rise to 25bps at the beginning of 2023. This is based on the view that the Bank of England looks through the current period of higher inflation driven by commodity prices, and instead focuses on the medium-term outlook with inflation expected to remain near target over the five year forecast period. The Monetary Policy Committee will wait to understand how the economy responds to the new economic environment before changing the Bank Rate. |
Strategic report | Financial review | Risk review | Financial statements | Shareholder information | ||||||||||||||||||||||
Credit risk |
Upside 1 | Base case | Downside 1 | Downside 2 | Downside 3 | ||||||||||||||||
% | % | % | % | % | ||||||||||||||||
GDP(1) | 2020 (actual) | (9.8) | (9.8) | (9.8) | (9.8) | (9.8) | ||||||||||||||
2021 | 6.5 | 6.1 | 5.2 | 2.2 | (4.7) | |||||||||||||||
2022 | 5.5 | 5.2 | 5.4 | 2.0 | (2.7) | |||||||||||||||
2023 | 1.8 | 1.6 | 0.3 | 1.3 | 2.3 | |||||||||||||||
Base Rate(1) | 2020 (actual) | 0.10 | 0.10 | 0.10 | 0.10 | 0.10 | ||||||||||||||
2021 | 0.10 | 0.10 | 0.10 | 0.10 | (0.50) | |||||||||||||||
2022 | 0.25 | 0.10 | 0.10 | 1.00 | (0.50) | |||||||||||||||
2023 | 0.75 | 0.25 | 0.25 | 2.00 | 0.00 | |||||||||||||||
HPI(1) | 2020 (actual) | 6.9 | 6.9 | 6.9 | 6.9 | 6.9 | ||||||||||||||
2021 | (0.6) | 2.0 | (1.5) | (3.7) | (11.7) | |||||||||||||||
2022 | (3.9) | 1.5 | (6.3) | (15.1) | (15.2) | |||||||||||||||
2023 | 0.0 | 2.0 | (2.9) | (8.6) | (2.4) | |||||||||||||||
Unemployment(1) | 2020 (actual) | 5.1 | 5.1 | 5.1 | 5.1 | 5.1 | ||||||||||||||
2021 | 6.0 | 6.5 | 6.8 | 8.1 | 9.7 | |||||||||||||||
2022 | 5.0 | 6.0 | 5.6 | 7.8 | 9.3 | |||||||||||||||
2023 | 4.7 | 5.6 | 5.7 | 7.3 | 8.3 |
Upside 1 | Base case | Downside 1 | Downside 2 | Downside 3 | ||||||||||||||||
% | % | % | % | % | ||||||||||||||||
GDP(1) | 2020 | (10.5) | (11.5) | (10.5) | (11.1) | (11.5) | ||||||||||||||
2021 | 4.8 | 4.5 | 4.0 | (0.8) | (8.0) | |||||||||||||||
2022 | 4.9 | 6.1 | 3.6 | 3.2 | 3.1 | |||||||||||||||
2023 | 3.0 | 2.2 | 1.5 | 2.7 | 1.5 | |||||||||||||||
Base Rate(1) | 2020 | 0.10 | 0.10 | 0.10 | 0.10 | 0.10 | ||||||||||||||
2021 | 0.25 | 0.10 | 0.10 | 0.75 | (0.50) | |||||||||||||||
2022 | 0.75 | 0.10 | 0.10 | 1.75 | 0.00 | |||||||||||||||
2023 | 1.25 | 0.10 | 0.10 | 3.00 | 0.00 | |||||||||||||||
HPI(1) | 2020 | 3.7 | 3.5 | 3.7 | 3.7 | 3.5 | ||||||||||||||
2021 | (4.6) | (2.0) | (5.4) | (11.3) | (19.7) | |||||||||||||||
2022 | (4.1) | 1.4 | (6.6) | (14.5) | (8.2) | |||||||||||||||
2023 | 2.4 | 2.0 | (1.8) | (3.8) | 1.3 | |||||||||||||||
Unemployment(1) | 2020 | 6.3 | 6.8 | 6.3 | 6.3 | 6.8 | ||||||||||||||
2021 | 6.1 | 7.5 | 6.5 | 8.5 | 11.4 | |||||||||||||||
2022 | 5.3 | 6.2 | 6.1 | 7.9 | 8.7 | |||||||||||||||
2023 | 4.4 | 5.6 | 5.7 | 6.9 | 8.0 |
Upside 1 | Base case | Downside 1 | Downside 2 | Downside 3 | ||||||||||||||||
30 June 2021 | % | % | % | % | % | |||||||||||||||
House price growth | 5-year average increase/decrease | 0.82 | 1.90 | (2.06) | (4.12) | (4.83) | ||||||||||||||
Peak/(trough) at (1) | (4.90) | N/A(3) | (10.89) | (25.69) | (29.73) | |||||||||||||||
GDP | 5-year average increase/decrease | 3.08 | 2.67 | 1.76 | 1.26 | (0.96) | ||||||||||||||
Cumulative growth/(fall) to peak/(trough) (2) | 16.40 | 14.09 | 9.12 | 6.46 | (4.70) | |||||||||||||||
Unemployment rate | 5-year end period | 3.88 | 5.00 | 5.79 | 6.21 | 7.00 | ||||||||||||||
Peak/(trough) at (1) | 6.07 | 6.50 | 6.76 | 8.12 | 11.90 | |||||||||||||||
Bank of England bank rate | 5-year end period | 1.75 | 0.75 | 0.75 | 2.50 | 2.50 | ||||||||||||||
Peak/(trough) at (1) | 1.75 | 0.75 | 0.75 | 3.00 | (0.50) |
Upside 1 | Base case | Downside 1 | Downside 2 | Downside 3 | ||||||||||||||||
31 December 2020 | % | % | % | % | % | |||||||||||||||
House price growth | 5-year average increase/decrease | 0.49 | 1.38 | (2.01) | (4.54) | (4.44) | ||||||||||||||
Peak/(trough) at (1) | 2.45 | 7.11 | (9.65) | (20.72) | (20.32) | |||||||||||||||
GDP | 5-year average increase/decrease | 0.75 | 0.39 | (0.38) | (0.98) | (2.82) | ||||||||||||||
Cumulative growth/(fall) to peak/(trough) (2) | 3.82 | 1.96 | (1.88) | (4.80) | (13.33) | |||||||||||||||
Unemployment rate | 5-year end period | 4.14 | 5.50 | 5.84 | 6.52 | 7.40 | ||||||||||||||
Peak/(trough) at (1) | 6.28 | 7.90 | 6.51 | 8.78 | 11.90 | |||||||||||||||
Bank of England bank rate | 5-year end period | 1.75 | 0.25 | 0.25 | 2.75 | 0.00 | ||||||||||||||
Peak/(trough) at (1) | 1.75 | 0.25 | 0.25 | 3.00 | (0.50) |
Strategic report | Financial review | Risk review | Financial statements | Shareholder information | ||||||||||||||||||||||
Credit risk |
Upside 1 | Base case | Downside 1 | Downside 2 | Downside 3 | |||||||||||||
Scenario weights | % | % | % | % | % | ||||||||||||
30 June 2021 | 5 | 50 | 15 | 25 | 5 | ||||||||||||
Upside 1 | Base case | Downside 1 | Downside 2 | Downside 3 | |||||||||||||
Scenario weights | % | % | % | % | % | ||||||||||||
31 December 2020 | 5 | 45 | 15 | 25 | 10 |
GDP assumption | % | |||||||||||||
30 June 2021 | Long Run global growth scenario (1) | 1.5 | ||||||||||||
31 December 2020 | Long Run global growth scenario (2) | 1.3 |
Weighted | Upside 1 | Base case | Downside 1 | Downside 2 | Downside 3 | |||||||||||||||
30 June 2021 | £m | £m | £m | £m | £m | £m | ||||||||||||||
Exposure | 315,471 | 315,471 | 315,471 | 315,471 | 315,471 | 315,471 | ||||||||||||||
Retail Banking | 213,499 | 213,499 | 213,499 | 213,499 | 213,499 | 213,499 | ||||||||||||||
–of which mortgages | 183,693 | 183,693 | 183,693 | 183,693 | 183,693 | 183,693 | ||||||||||||||
CCB | 24,562 | 24,562 | 24,562 | 24,562 | 24,562 | 24,562 | ||||||||||||||
CIB | 7,680 | 7,680 | 7,680 | 7,680 | 7,680 | 7,680 | ||||||||||||||
Corporate Centre | 69,730 | 69,730 | 69,730 | 69,730 | 69,730 | 69,730 | ||||||||||||||
ECL | 1,192 | 933 | 1,010 | 1,127 | 1,494 | 1,717 | ||||||||||||||
Retail Banking | 603 | 433 | 457 | 528 | 769 | 892 | ||||||||||||||
–of which mortgages | 250 | 112 | 156 | 174 | 369 | 481 | ||||||||||||||
CCB | 534 | 450 | 500 | 543 | 661 | 755 | ||||||||||||||
CIB | 19 | 19 | 19 | 19 | 19 | 19 | ||||||||||||||
Corporate Centre | 36 | 31 | 34 | 37 | 45 | 51 | ||||||||||||||
% | % | % | % | % | % | |||||||||||||||
Proportion of assets in Stage 2 | 4.7 | 4.2 | 4.1 | 4.3 | 5.7 | 6.5 | ||||||||||||||
Retail Banking | 4.5 | 4.0 | 4.0 | 4.2 | 5.8 | 6.5 | ||||||||||||||
–of which mortgages | 4.9 | 4.3 | 4.3 | 4.4 | 6.2 | 7.2 | ||||||||||||||
CCB | 20.1 | 17.8 | 17.8 | 18.6 | 22.9 | 26.4 | ||||||||||||||
CIB | 2.1 | 2.1 | 2.1 | 2.1 | 2.1 | 2.1 | ||||||||||||||
Corporate Centre | — | — | — | — | — | — |
Weighted | Upside 1 | Base case | Downside 1 | Downside 2 | Downside 3 | |||||||||||||||
31 December 2020 | £m | £m | £m | £m | £m | £m | ||||||||||||||
Exposure | 322,745 | 322,745 | 322,745 | 322,745 | 322,745 | 322,745 | ||||||||||||||
Retail Banking | 210,251 | 210,251 | 210,251 | 210,251 | 210,251 | 210,251 | ||||||||||||||
–of which mortgages | 180,006 | 180,006 | 180,006 | 180,006 | 180,006 | 180,006 | ||||||||||||||
CCB | 24,503 | 24,503 | 24,503 | 24,503 | 24,503 | 24,503 | ||||||||||||||
CIB | 11,646 | 11,646 | 11,646 | 11,646 | 11,646 | 11,646 | ||||||||||||||
Corporate Centre | 76,345 | 76,345 | 76,345 | 76,345 | 76,345 | 76,345 | ||||||||||||||
ECL | 1,377 | 1,129 | 1,222 | 1,300 | 1,613 | 1,802 | ||||||||||||||
Retail Banking | 706 | 610 | 587 | 660 | 850 | 863 | ||||||||||||||
–of which mortgages | 280 | 212 | 207 | 253 | 389 | 415 | ||||||||||||||
CCB | 603 | 485 | 575 | 567 | 671 | 824 | ||||||||||||||
CIB | 33 | 5 | 26 | 40 | 53 | 66 | ||||||||||||||
Corporate Centre | 35 | 29 | 34 | 33 | 39 | 49 | ||||||||||||||
% | % | % | % | % | % | |||||||||||||||
Proportion of assets in Stage 2 | 5.3 | 4.6 | 4.7 | 4.6 | 6.6 | 6.8 | ||||||||||||||
Retail Banking | 5.4 | 4.6 | 4.6 | 4.7 | 7.2 | 7.0 | ||||||||||||||
–of which mortgages | 5.7 | 4.8 | 4.9 | 4.9 | 7.7 | 7.5 | ||||||||||||||
CCB | 22.4 | 20.1 | 20.8 | 20.2 | 24.5 | 28.6 | ||||||||||||||
CIB | 1.7 | 1.7 | 1.7 | 1.7 | 1.7 | 1.7 | ||||||||||||||
Corporate Centre | — | — | — | — | — | — |
Strategic report | Financial review | Risk review | Financial statements | Shareholder information | ||||||||||||||||||||||
Credit risk |
30 June 2021 | 31 December 2020 | |||||||
PMAs | £m | £m | ||||||
Non Covid-19 PMAs | ||||||||
Interest-only maturity default risk(1) | 41 | 49 | ||||||
Buy-To-Let | 12 | 24 | ||||||
Long-term indeterminate arrears(1) | 24 | 29 | ||||||
12+ months in arrears(1) | 36 | 30 | ||||||
Total non Covid-19 PMAs | 113 | 132 | ||||||
Covid-19 PMAs | ||||||||
Corporate Covid-19 affected segments | 190 | 193 | ||||||
Payment holidays | 24 | 27 | ||||||
Corporate single large exposure | 35 | 35 | ||||||
Model underestimation | 76 | 20 | ||||||
SME debt burden | 15 | — | ||||||
Other Covid-19 PMAs | 16 | 15 | ||||||
Total Covid-19 PMAs | 356 | 290 |
Strategic report | Financial review | Risk review | Financial statements | Shareholder information | ||||||||||||||||||||||
Credit risk |
Santander UK risk grade | Loss allowance | Total | ||||||||||||||||||||||||||||||
9 | 8 | 7 | 6 | 5 | 4 | 3 to 1 | Other(1) | |||||||||||||||||||||||||
30 June 2021 | £bn | £bn | £bn | £bn | £bn | £bn | £bn | £bn | £bn | £bn | ||||||||||||||||||||||
Exposures | ||||||||||||||||||||||||||||||||
On balance sheet | ||||||||||||||||||||||||||||||||
Financial assets at amortised cost: | ||||||||||||||||||||||||||||||||
–Loans and advances to customers(2)(3) | 9.8 | 29.6 | 74.5 | 42.8 | 13.4 | 24.2 | 6.9 | 8.0 | (1.2) | 208.0 | ||||||||||||||||||||||
–Stage 1 | 9.8 | 29.4 | 74.0 | 41.6 | 11.1 | 17.6 | 0.5 | 7.8 | (0.2) | 191.6 | ||||||||||||||||||||||
–Stage 2 | — | 0.2 | 0.5 | 1.2 | 2.3 | 6.6 | 3.5 | 0.2 | (0.5) | 14.0 | ||||||||||||||||||||||
–Stage 3 | — | — | — | — | — | — | 2.9 | — | (0.5) | 2.4 | ||||||||||||||||||||||
Of which mortgages: | 9.8 | 26.5 | 69.4 | 37.2 | 5.3 | 18.3 | 3.5 | — | (0.3) | 169.7 | ||||||||||||||||||||||
–Stage 1 | 9.8 | 26.5 | 69.1 | 36.3 | 3.7 | 13.8 | — | — | — | 159.2 | ||||||||||||||||||||||
–Stage 2 | — | — | 0.3 | 0.9 | 1.6 | 4.5 | 1.6 | — | (0.2) | 8.7 | ||||||||||||||||||||||
–Stage 3 | — | — | — | — | — | — | 1.9 | — | (0.1) | 1.8 | ||||||||||||||||||||||
ECL | ||||||||||||||||||||||||||||||||
On balance sheet | ||||||||||||||||||||||||||||||||
Financial assets at amortised cost: | ||||||||||||||||||||||||||||||||
–Loans and advances to customers(2)(3) | — | — | — | — | 0.3 | 0.2 | 0.7 | — | 1.2 | |||||||||||||||||||||||
–Stage 1 | — | — | — | — | 0.2 | — | — | — | 0.2 | |||||||||||||||||||||||
–Stage 2 | — | — | — | — | 0.1 | 0.2 | 0.2 | — | 0.5 | |||||||||||||||||||||||
–Stage 3 | — | — | — | — | — | — | 0.5 | — | 0.5 | |||||||||||||||||||||||
Of which mortgages: | — | — | — | — | — | 0.1 | 0.2 | — | 0.3 | |||||||||||||||||||||||
–Stage 1 | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
–Stage 2 | — | — | — | — | — | 0.1 | 0.1 | — | 0.2 | |||||||||||||||||||||||
–Stage 3 | — | — | — | — | — | — | 0.1 | — | 0.1 | |||||||||||||||||||||||
30 June 2021 | % | % | % | % | % | % | % | % | % | |||||||||||||||||||||||
Coverage ratio | ||||||||||||||||||||||||||||||||
On balance sheet | ||||||||||||||||||||||||||||||||
Financial assets at amortised cost: | ||||||||||||||||||||||||||||||||
–Loans and advances to customers(2)(3) | — | — | — | — | 2.2 | 0.8 | 10.1 | — | 0.6 | |||||||||||||||||||||||
–Stage 1 | — | — | — | — | 1.8 | — | — | — | 0.1 | |||||||||||||||||||||||
–Stage 2 | — | — | — | — | 4.3 | 3.0 | 5.7 | — | 3.6 | |||||||||||||||||||||||
–Stage 3 | — | — | — | — | — | — | 17.2 | — | 20.8 | |||||||||||||||||||||||
Of which mortgages: | — | — | — | — | — | 0.5 | 5.7 | — | 0.2 | |||||||||||||||||||||||
–Stage 1 | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
–Stage 2 | — | — | — | — | — | 2.2 | 6.3 | — | 2.3 | |||||||||||||||||||||||
–Stage 3 | — | — | — | — | — | — | 5.3 | — | 5.6 | |||||||||||||||||||||||
Santander UK risk grade | Loss allowance | |||||||||||||||||||||||||||||||
9 | 8 | 7 | 6 | 5 | 4 | 3 to 1 | Other(1) | Total | ||||||||||||||||||||||||
31 December 2020 | £bn | £bn | £bn | £bn | £bn | £bn | £bn | £bn | £bn | £bn | ||||||||||||||||||||||
Exposures | ||||||||||||||||||||||||||||||||
On balance sheet | ||||||||||||||||||||||||||||||||
Financial assets at amortised cost: | ||||||||||||||||||||||||||||||||
–Loans and advances to customers⁽²⁾ | 8.0 | 27.7 | 74.4 | 44.1 | 13.5 | 27.0 | 8.2 | 7.2 | (1.3) | 208.8 | ||||||||||||||||||||||
–Stage 1 | 8.0 | 27.6 | 74.0 | 42.6 | 10.8 | 19.0 | 1.1 | 7.0 | (0.2) | 189.9 | ||||||||||||||||||||||
–Stage 2 | — | 0.1 | 0.4 | 1.5 | 2.7 | 8.0 | 4.2 | 0.2 | (0.5) | 16.6 | ||||||||||||||||||||||
–Stage 3 | — | — | — | — | — | — | 2.9 | — | (0.6) | 2.3 | ||||||||||||||||||||||
Of which mortgages: | 7.9 | 24.3 | 68.0 | 36.8 | 5.6 | 19.6 | 4.5 | — | (0.3) | 166.4 | ||||||||||||||||||||||
–Stage 1 | 7.9 | 24.3 | 67.7 | 35.5 | 3.9 | 14.7 | 0.6 | — | — | 154.6 | ||||||||||||||||||||||
–Stage 2 | — | — | 0.3 | 1.3 | 1.7 | 4.9 | 2.1 | — | (0.2) | 10.1 | ||||||||||||||||||||||
–Stage 3 | — | — | — | — | — | — | 1.8 | — | (0.1) | 1.7 | ||||||||||||||||||||||
ECL | ||||||||||||||||||||||||||||||||
On balance sheet | ||||||||||||||||||||||||||||||||
Financial assets at amortised cost: | ||||||||||||||||||||||||||||||||
–Loans and advances to customers⁽²⁾ | — | — | — | 0.1 | 0.1 | 0.2 | 0.9 | — | 1.3 | |||||||||||||||||||||||
–Stage 1 | — | — | — | 0.1 | — | — | 0.1 | — | 0.2 | |||||||||||||||||||||||
–Stage 2 | — | — | — | — | 0.1 | 0.2 | 0.2 | — | 0.5 | |||||||||||||||||||||||
–Stage 3 | — | — | — | — | — | — | 0.6 | — | 0.6 | |||||||||||||||||||||||
Of which mortgages: | — | — | — | — | — | 0.1 | 0.2 | — | 0.3 | |||||||||||||||||||||||
–Stage 1 | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
–Stage 2 | — | — | — | — | — | 0.1 | 0.1 | — | 0.2 | |||||||||||||||||||||||
–Stage 3 | — | — | — | — | — | — | 0.1 | — | 0.1 | |||||||||||||||||||||||
31 December 2020 | % | % | % | % | % | % | % | % | % | |||||||||||||||||||||||
Coverage ratio | ||||||||||||||||||||||||||||||||
On balance sheet | ||||||||||||||||||||||||||||||||
Financial assets at amortised cost: | ||||||||||||||||||||||||||||||||
–Loans and advances to customers⁽²⁾ | — | — | — | 0.2 | 0.7 | 0.7 | 11.0 | — | 0.4 | |||||||||||||||||||||||
–Stage 1 | — | — | — | 0.2 | — | — | 9.1 | — | 0.1 | |||||||||||||||||||||||
–Stage 2 | — | — | — | — | 3.7 | 2.5 | 4.8 | — | 3.0 | |||||||||||||||||||||||
–Stage 3 | — | — | — | — | — | — | 20.7 | — | 26.1 | |||||||||||||||||||||||
Of which mortgages: | — | — | — | — | — | 0.5 | 4.4 | — | 0.2 | |||||||||||||||||||||||
–Stage 1 | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
–Stage 2 | — | — | — | — | — | 2.0 | 4.8 | — | 2.0 | |||||||||||||||||||||||
–Stage 3 | — | — | — | — | — | — | 5.6 | — | 5.9 | |||||||||||||||||||||||
Strategic report | Financial review | Risk review | Financial statements | Shareholder information | ||||||||||||||||||||||
Credit risk |
Customer Loans | Gross write- offs | Loan Loss Allowance | ||||||||||||||||||
Total | Stage 1 | Stage 2 | Stage 3 | |||||||||||||||||
30 June 2021 | £bn | £bn | £bn | £bn | £m | £m | ||||||||||||||
Retail Banking | 186.6 | 174.9 | 9.7 | 2.0 | 72 | 603 | ||||||||||||||
Corporate & Commercial Banking | 17.1 | 11.3 | 4.9 | 0.9 | 19 | 534 | ||||||||||||||
Corporate & Investment Banking | 1.9 | 1.7 | 0.2 | — | — | 19 | ||||||||||||||
Corporate Centre | 2.7 | 2.7 | — | — | — | 36 | ||||||||||||||
208.3 | 190.6 | 14.8 | 2.9 | 91 | 1,192 | |||||||||||||||
Undrawn Balances | 40.2 | 1.4 | 0.1 | |||||||||||||||||
Stage 1, Stage 2 and Stage 3(1) ratios % | 91.55 | 7.11 | 1.43 |
31 December 2020 | £bn | £bn | £bn | £bn | £m | £m | ||||||||||||||
Retail Banking | 183.4 | 170.2 | 11.3 | 1.9 | 180 | 706 | ||||||||||||||
Corporate & Commercial Banking | 17.6 | 11.1 | 5.5 | 1.0 | 51 | 603 | ||||||||||||||
Corporate & Investment Banking | 2.8 | 2.6 | 0.2 | — | 22 | 33 | ||||||||||||||
Corporate Centre | 3.2 | 3.2 | — | — | — | 35 | ||||||||||||||
207.0 | 187.1 | 17.0 | 2.9 | 253 | 1,377 | |||||||||||||||
Undrawn Balances | 41.8 | 1.3 | 0.1 | |||||||||||||||||
Stage 1, Stage 2 and Stage 3(1) ratios % | 90.34 | 8.26 | 1.45 |
Stage 1 | Stage 2 | Stage 3 | Total | |||||||||||
30 June 2021 | £m | £m | £m | £m | ||||||||||
Exposures | ||||||||||||||
On-balance sheet | ||||||||||||||
Retail Banking | 175,055 | 9,670 | 1,981 | 186,706 | ||||||||||
–of which mortgages | 159,808 | 8,947 | 1,863 | 170,618 | ||||||||||
Corporate & Commercial Banking | 11,202 | 4,939 | 914 | 17,055 | ||||||||||
Corporate & Investment Banking | 1,755 | 158 | — | 1,913 | ||||||||||
Corporate Centre | 68,078 | 22 | 1 | 68,101 | ||||||||||
Total on-balance sheet | 256,090 | 14,789 | 2,896 | 273,775 | ||||||||||
Off-balance sheet | ||||||||||||||
Retail Banking(1) | 26,599 | 151 | 43 | 26,793 | ||||||||||
–of which mortgages(1) | 12,999 | 61 | 15 | 13,075 | ||||||||||
Corporate & Commercial Banking | 6,534 | 934 | 39 | 7,507 | ||||||||||
Corporate & Investment Banking | 5,526 | 241 | — | 5,767 | ||||||||||
Corporate Centre | 1,585 | 44 | — | 1,629 | ||||||||||
Total off-balance sheet(2) | 40,244 | 1,370 | 82 | 41,696 | ||||||||||
Total exposures | 296,334 | 16,159 | 2,978 | 315,471 | ||||||||||
ECL | ||||||||||||||
On-balance sheet | ||||||||||||||
Retail Banking | 92 | 304 | 183 | 579 | ||||||||||
–of which mortgages | 9 | 132 | 106 | 247 | ||||||||||
Corporate & Commercial Banking | 27 | 166 | 321 | 514 | ||||||||||
Corporate & Investment Banking | 4 | 8 | — | 12 | ||||||||||
Corporate Centre | 36 | — | — | 36 | ||||||||||
Total on-balance sheet | 159 | 478 | 504 | 1,141 | ||||||||||
Off-balance sheet | ||||||||||||||
Retail Banking | 13 | 10 | 1 | 24 | ||||||||||
–of which mortgages | 2 | 1 | — | 3 | ||||||||||
Corporate & Commercial Banking | 7 | 8 | 5 | 20 | ||||||||||
Corporate & Investment Banking | 4 | 3 | — | 7 | ||||||||||
Total off-balance sheet | 24 | 21 | 6 | 51 | ||||||||||
Total ECL | 183 | 499 | 510 | 1,192 | ||||||||||
% | % | % | % | |||||||||||
Coverage ratio(3) | ||||||||||||||
On-balance sheet | ||||||||||||||
Retail Banking | 0.1 | 3.1 | 9.2 | 0.3 | ||||||||||
–of which mortgages | — | 1.5 | 5.7 | 0.1 | ||||||||||
Corporate & Commercial Banking | 0.2 | 3.4 | 35.1 | 3.0 | ||||||||||
Corporate & Investment Banking | 0.2 | 5.1 | — | 0.6 | ||||||||||
Corporate Centre | 0.1 | — | — | 0.1 | ||||||||||
Total on-balance sheet | 0.1 | 3.2 | 17.4 | 0.4 | ||||||||||
Off-balance sheet | ||||||||||||||
Retail Banking | — | 6.6 | 2.3 | 0.1 | ||||||||||
–of which mortgages | — | 1.6 | — | — | ||||||||||
Corporate & Commercial Banking | 0.1 | 0.9 | 12.8 | 0.3 | ||||||||||
Corporate & Investment Banking | 0.1 | 1.2 | — | 0.1 | ||||||||||
Total off-balance sheet | 0.1 | 1.5 | 7.3 | 0.1 | ||||||||||
Total coverage | 0.1 | 3.1 | 17.1 | 0.4 |
Strategic report | Financial review | Risk review | Financial statements | Shareholder information | ||||||||||||||||||||||
Credit risk |
Stage 1 | Stage 2 | Stage 3 | Total | |||||||||||
31 December 2020 | £m | £m | £m | £m | ||||||||||
Exposures | ||||||||||||||
On-balance sheet | ||||||||||||||
Retail Banking | 170,128 | 11,341 | 1,935 | 183,404 | ||||||||||
–of which mortgages | 154,586 | 10,345 | 1,799 | 166,730 | ||||||||||
Corporate & Commercial Banking | 11,167 | 5,498 | 961 | 17,626 | ||||||||||
Corporate & Investment Banking | 2,587 | 198 | — | 2,785 | ||||||||||
Corporate Centre | 75,743 | 27 | — | 75,770 | ||||||||||
Total on-balance sheet | 259,625 | 17,064 | 2,896 | 279,585 | ||||||||||
Off-balance sheet | ||||||||||||||
Retail Banking(1) | 26,550 | 256 | 41 | 26,847 | ||||||||||
–of which mortgages(1) | 13,180 | 82 | 14 | 13,276 | ||||||||||
Corporate & Commercial Banking | 6,050 | 768 | 59 | 6,877 | ||||||||||
Corporate & Investment Banking | 8,630 | 231 | — | 8,861 | ||||||||||
Corporate Centre | 558 | 17 | — | 575 | ||||||||||
Total off-balance sheet(2) | 41,788 | 1,272 | 100 | 43,160 | ||||||||||
Total exposures | 301,413 | 18,336 | 2,996 | 322,745 | ||||||||||
ECL | ||||||||||||||
On-balance sheet | ||||||||||||||
Retail Banking | 100 | 350 | 218 | 668 | ||||||||||
–of which mortgages | 15 | 130 | 132 | 277 | ||||||||||
Corporate & Commercial Banking | 46 | 189 | 342 | 577 | ||||||||||
Corporate & Investment Banking | 5 | 17 | — | 22 | ||||||||||
Corporate Centre | 35 | — | — | 35 | ||||||||||
Total on-balance sheet | 186 | 556 | 560 | 1,302 | ||||||||||
Off-balance sheet | ||||||||||||||
Retail Banking | 18 | 19 | 1 | 38 | ||||||||||
–of which mortgages | 2 | 1 | — | 3 | ||||||||||
Corporate & Commercial Banking | 8 | 10 | 8 | 26 | ||||||||||
Corporate & Investment Banking | 4 | 7 | — | 11 | ||||||||||
Total off-balance sheet | 30 | 36 | 9 | 75 | ||||||||||
Total ECL | 216 | 592 | 569 | 1,377 | ||||||||||
% | % | % | % | |||||||||||
Coverage ratio(3) | ||||||||||||||
On-balance sheet | ||||||||||||||
Retail Banking | 0.1 | 3.1 | 11.3 | 0.4 | ||||||||||
–of which mortgages | — | 1.3 | 7.3 | 0.2 | ||||||||||
Corporate & Commercial Banking | 0.4 | 3.4 | 35.6 | 3.3 | ||||||||||
Corporate & Investment Banking | 0.2 | 8.6 | — | 0.8 | ||||||||||
Corporate Centre | — | — | — | — | ||||||||||
Total on-balance sheet | 0.1 | 3.3 | 19.3 | 0.5 | ||||||||||
Off-balance sheet | ||||||||||||||
Retail Banking | 0.1 | 7.4 | 2.4 | 0.1 | ||||||||||
–of which mortgages | — | 1.2 | — | — | ||||||||||
Corporate & Commercial Banking | 0.1 | 1.3 | 13.6 | 0.4 | ||||||||||
Corporate & Investment Banking | — | 3.0 | — | 0.1 | ||||||||||
Total off-balance sheet | 0.1 | 2.8 | 9.0 | 0.2 | ||||||||||
Total coverage | 0.1 | 3.2 | 19.0 | 0.4 |
Retail Banking | Other business segments | Total | |||||||||||||||||||||||||||
Exposure | ECL | Coverage | Exposure | ECL | Coverage | Exposure | ECL | Coverage | |||||||||||||||||||||
30 June 2021 | £m | £m | % | £m | £m | % | £m | £m | % | ||||||||||||||||||||
PD deterioration | 6,515 | 206 | 3.2 | 1,228 | 40 | 3.3 | 7,743 | 246 | 3.2 | ||||||||||||||||||||
Forbearance | 645 | 4 | 0.6 | 347 | 11 | 3.2 | 992 | 15 | 1.5 | ||||||||||||||||||||
Other | 842 | 23 | 2.7 | 1,053 | 57 | 5.4 | 1,895 | 80 | 4.2 | ||||||||||||||||||||
30 DPD | 723 | 54 | 7.5 | 254 | 1 | 0.4 | 977 | 55 | 5.6 | ||||||||||||||||||||
Payment Holiday | 1,096 | 27 | 2.5 | — | — | — | 1,096 | 27 | 2.5 | ||||||||||||||||||||
High Risk Corporate | — | — | — | 3,456 | 76 | 2.2 | 3,456 | 76 | 2.2 | ||||||||||||||||||||
9,821 | 314 | 3.2 | 6,338 | 185 | 2.9 | 16,159 | 499 | 3.1 | |||||||||||||||||||||
31 December 2020 | |||||||||||||||||||||||||||||
PD deterioration | 7,840 | 260 | 3.3 | 2,160 | 39 | 1.8 | 10,000 | 299 | 3.0 | ||||||||||||||||||||
Forbearance | 612 | 3 | 0.5 | 155 | 6 | 3.9 | 767 | 9 | 1.2 | ||||||||||||||||||||
Other | 1,404 | 21 | 1.5 | 1,046 | 90 | 8.6 | 2,450 | 111 | 4.5 | ||||||||||||||||||||
30 DPD | 897 | 58 | 6.5 | 253 | 5 | 2.0 | 1,150 | 63 | 5.5 | ||||||||||||||||||||
Payment Holiday | 844 | 27 | 3.2 | — | — | — | 844 | 27 | 3.2 | ||||||||||||||||||||
High Risk Corporate | — | — | — | 3,125 | 83 | 2.7 | 3,125 | 83 | 2.7 | ||||||||||||||||||||
11,597 | 369 | 3.2 | 6,739 | 223 | 3.3 | 18,336 | 592 | 3.2 |
30 June 2021 | 31 December 2020 | ||||||||||||||||||||||
Exposure | ECL | Coverage | Exposure | ECL | Coverage | ||||||||||||||||||
£m | £m | % | £m | £m | % | ||||||||||||||||||
Stage 2 not in cure period | 14,611 | 467 | 3.2 | 16,992 | 554 | 3.3 | |||||||||||||||||
Stage 2 in cure period (for transfer to Stage 1) | 1,548 | 32 | 2.1 | 1,344 | 38 | 2.8 | |||||||||||||||||
16,159 | 499 | 3.1 | 18,336 | 592 | 3.2 |
Strategic report | Financial review | Risk review | Financial statements | Shareholder information | ||||||||||||||||||||||
Credit risk |
On-balance sheet | Off-balance sheet | |||||||||||||||||||
Exposures | Loss allowance | Net carrying amount | Exposures | Loss allowance | ||||||||||||||||
30 June 2021 | £m | £m | £m | £m | £m | |||||||||||||||
Retail Banking(2) | 186,706 | 579 | 186,127 | 26,793 | 24 | |||||||||||||||
–of which mortgages(3) | 170,618 | 247 | 170,371 | 13,075 | 3 | |||||||||||||||
Corporate & Commercial Banking | 17,055 | 514 | 16,541 | 7,507 | 20 | |||||||||||||||
Corporate & Investment Banking | 1,913 | 12 | 1,901 | 5,767 | 7 | |||||||||||||||
Corporate Centre | 68,101 | 36 | 68,065 | 1,629 | — | |||||||||||||||
Total exposures presented in Credit Quality tables | 273,775 | 1,141 | 272,634 | 41,696 | 51 | |||||||||||||||
Other items(1) | 3,437 | |||||||||||||||||||
Adjusted net carrying amount | 276,071 | |||||||||||||||||||
Assets classified at FVTPL | 2,181 | |||||||||||||||||||
Non-financial assets | 7,362 | |||||||||||||||||||
Total assets per the Condensed Consolidated Balance Sheet | 285,614 | |||||||||||||||||||
31 December 2020 | ||||||||||||||||||||
Retail Banking(2) | 183,404 | 668 | 182,736 | 26,847 | 38 | |||||||||||||||
–of which mortgages(3) | 166,730 | 277 | 166,453 | 13,276 | 3 | |||||||||||||||
Corporate & Commercial Banking | 17,626 | 577 | 17,049 | 6,877 | 26 | |||||||||||||||
Corporate & Investment Banking | 2,785 | 22 | 2,763 | 8,861 | 11 | |||||||||||||||
Corporate Centre | 75,770 | 35 | 75,735 | 575 | — | |||||||||||||||
Total exposures presented in Credit Quality tables | 279,585 | 1,302 | 278,283 | 43,160 | 75 | |||||||||||||||
Other items(1) | 3,111 | |||||||||||||||||||
Adjusted net carrying amount | 281,394 | |||||||||||||||||||
Assets classified at FVTPL | 3,614 | |||||||||||||||||||
Non-financial assets | 7,324 | |||||||||||||||||||
Total assets per the Condensed Consolidated Balance Sheet | 292,332 |
Stage 1 | Stage 2 | Stage 3 | Total | ||||||||||||||||||||||||||||||||
Exposures(1) | ECL | Exposures(1) | ECL | Exposures(1) | ECL | Exposures(1) | ECL | ||||||||||||||||||||||||||||
£m | £m | £m | £m | £m | £m | £m | £m | ||||||||||||||||||||||||||||
At 1 January 2021 | 301,413 | 216 | 18,336 | 592 | 2,996 | 569 | 322,745 | 1,377 | |||||||||||||||||||||||||||
Transfers from Stage 1 to Stage 2(3) | (3,680) | (9) | 3,680 | 9 | — | — | — | — | |||||||||||||||||||||||||||
Transfers from Stage 2 to Stage 1(3) | 4,961 | 140 | (4,961) | (140) | — | — | — | — | |||||||||||||||||||||||||||
Transfers to Stage 3(3) | (156) | (5) | (475) | (30) | 631 | 35 | — | — | |||||||||||||||||||||||||||
Transfers from Stage 3(3) | 10 | 1 | 287 | 23 | (297) | (24) | — | — | |||||||||||||||||||||||||||
Transfers of financial instruments | 1,135 | 127 | (1,469) | (138) | 334 | 11 | — | — | |||||||||||||||||||||||||||
Net ECL remeasurement on stage transfer(4) | — | (122) | — | 108 | — | 40 | — | 26 | |||||||||||||||||||||||||||
Change in economic scenarios(2) | — | (6) | — | (86) | — | (12) | — | (104) | |||||||||||||||||||||||||||
New lending and assets purchased(5) | 28,910 | 25 | 623 | 10 | 11 | 9 | 29,544 | 44 | |||||||||||||||||||||||||||
Redemptions, repayments and assets sold(7) | (34,471) | (29) | (1,781) | (55) | (285) | (31) | (36,537) | (115) | |||||||||||||||||||||||||||
Changes in risk parameters and other movements(6) | (653) | (28) | 450 | 68 | 69 | 15 | (134) | 55 | |||||||||||||||||||||||||||
Assets written off(7) | — | — | — | — | (147) | (91) | (147) | (91) | |||||||||||||||||||||||||||
At 30 June 2021 | 296,334 | 183 | 16,159 | 499 | 2,978 | 510 | 315,471 | 1,192 | |||||||||||||||||||||||||||
Net movement in the period | (5,079) | (33) | (2,177) | (93) | (18) | (59) | (7,274) | (185) | |||||||||||||||||||||||||||
ECL charge/(release) to the Income Statement | (33) | (93) | 32 | (94) | |||||||||||||||||||||||||||||||
Less: Discount unwind | — | — | (6) | (6) | |||||||||||||||||||||||||||||||
Less: Recoveries net of collection costs | — | — | 23 | 23 | |||||||||||||||||||||||||||||||
ECL charge/(release) to the Income Statement from continued operations | (33) | (93) | 49 | (77) | |||||||||||||||||||||||||||||||
Discontinued operations ECL adjustment | — | 7 | — | 7 | |||||||||||||||||||||||||||||||
Total ECL charge/(release) to the Income Statement | (33) | (86) | 49 | (70) |
At 1 January 2020 | 295,438 | 147 | 12,351 | 348 | 2,367 | 368 | 310,156 | 863 | ||||||||||||||||||||||||
Transfers from Stage 1 to Stage 2(3) | (9,922) | (37) | 9,922 | 37 | — | — | — | — | ||||||||||||||||||||||||
Transfers from Stage 2 to Stage 1(3) | 2,161 | 80 | (2,161) | (80) | — | — | — | — | ||||||||||||||||||||||||
Transfers to Stage 3(3) | (244) | (2) | (517) | (38) | 761 | 40 | — | — | ||||||||||||||||||||||||
Transfers from Stage 3(3) | 5 | — | 246 | 17 | (251) | (17) | — | — | ||||||||||||||||||||||||
Transfers of financial instruments | (8,000) | 41 | 7,490 | (64) | 510 | 23 | — | — | ||||||||||||||||||||||||
Net remeasurement of ECL on stage transfer(4) | — | (75) | — | 222 | — | 83 | — | 230 | ||||||||||||||||||||||||
Change in economic scenarios(2) | — | 9 | — | 129 | — | 10 | — | 148 | ||||||||||||||||||||||||
New lending and assets purchased(5) | 31,045 | 21 | 693 | 26 | 63 | 17 | 31,801 | 64 | ||||||||||||||||||||||||
Redemptions, repayments and assets sold(7) | (28,485) | (17) | (1,508) | (32) | (283) | (20) | (30,276) | (69) | ||||||||||||||||||||||||
Changes in risk parameters and other movements(6) | 7,237 | 32 | 568 | (42) | 105 | 78 | 7,910 | 68 | ||||||||||||||||||||||||
Assets written off(7) | — | — | — | — | (191) | (123) | (191) | (123) | ||||||||||||||||||||||||
At 30 June 2020 | 297,235 | 158 | 19,594 | 587 | 2,571 | 436 | 319,400 | 1,181 | ||||||||||||||||||||||||
Net movement in the period | 1,797 | 11 | 7,243 | 239 | 204 | 68 | 9,244 | 318 | ||||||||||||||||||||||||
ECL charge/(release) to the Income Statement | 11 | 239 | 191 | 441 | ||||||||||||||||||||||||||||
Less: Discount unwind | — | — | (6) | (6) | ||||||||||||||||||||||||||||
Less: Recoveries net of collection costs | — | — | (59) | (59) | ||||||||||||||||||||||||||||
ECL charge/(release) to the Income Statement from continued operations | 11 | 239 | 126 | 376 | ||||||||||||||||||||||||||||
Discontinued operations ECL adjustment | (5) | (2) | (5) | (12) | ||||||||||||||||||||||||||||
Total ECL charge/(release) to the Income Statement | 6 | 237 | 121 | 364 |
Strategic report | Financial review | Risk review | Financial statements | Shareholder information | ||||||||||||||||||||||
Credit risk |
Customers supported | Breakdown of total PH granted | Outstanding PH | ||||||||||||||||||
Up to date after PH | Ongoing PH | New to arrears after PH ends | In arrears before PH | |||||||||||||||||
30 June 2021 | % | % | % | % | £bn | |||||||||||||||
Payment holidays (PH)(1) | ||||||||||||||||||||
Mortgages | 256,000 | 96 | — | 2 | 2 | 0.1 | ||||||||||||||
Consumer (auto) finance(2) | 58,000 | 90 | — | 6 | 4 | <0.1 | ||||||||||||||
Unsecured Personal Loans (UPLs) | 36,000 | 92 | — | 5 | 3 | — | ||||||||||||||
Credit Cards | 34,000 | 86 | — | 11 | 3 | — | ||||||||||||||
Business and corporates | 3,000 | 98 | — | 2 | — | — | ||||||||||||||
31 December 2020 | ||||||||||||||||||||
Payment holidays (PH)(1) | ||||||||||||||||||||
Mortgages | 251,000 | 88 | 8 | 2 | 2 | 2.5 | ||||||||||||||
Consumer (auto) finance(2) | 54,000 | 77 | 11 | 8 | 4 | 0.1 | ||||||||||||||
Unsecured Personal Loans (UPLs) | 34,000 | 77 | 13 | 4 | 6 | <0.1 | ||||||||||||||
Credit Cards | 32,000 | 76 | 12 | 8 | 4 | <0.1 | ||||||||||||||
Business and corporates | 2,500 | 98 | 2 | — | — | 0.1 |
Number of customers | Loan balance | % of relevant loan book | |||||||||
30 June 2021 | £bn | % | |||||||||
Government lending schemes | |||||||||||
BBLS - 100% government guaranteed | 153,000 | 3.9 | 19 | ||||||||
CBILS | 2,000 | 0.7 | 3 | ||||||||
CLBILS | 36 | 0.2 | 4 | ||||||||
31 December 2020 | |||||||||||
Government lending schemes | |||||||||||
BBLS - 100% government guaranteed | 148,000 | 4.0 | 19 | ||||||||
CBILS | 2,000 | 0.4 | 2 | ||||||||
CLBILS | 30 | 0.2 | 3 |
Stock | New business | ||||||||||||||||||||||||||||||||||
30 June 2021 | 31 December 2020 | 30 June 2021 | 30 June 2020 | ||||||||||||||||||||||||||||||||
£m | % | £m | % | £m | % | £m | % | ||||||||||||||||||||||||||||
Home movers | 73,751 | 43 | 71,008 | 42 | 8,005 | 50 | 3,776 | 33 | |||||||||||||||||||||||||||
Remortgagers | 49,400 | 29 | 50,934 | 31 | 2,977 | 18 | 4,277 | 37 | |||||||||||||||||||||||||||
First-time buyers | 34,113 | 20 | 33,180 | 20 | 3,133 | 19 | 2,248 | 19 | |||||||||||||||||||||||||||
Buy-to-let | 13,354 | 8 | 11,608 | 7 | 2,195 | 13 | 1,232 | 11 | |||||||||||||||||||||||||||
170,618 | 100 | 166,730 | 100 | 16,310 | 100 | 11,533 | 100 |
30 June 2021 | 31 December 2020 | |||||||||||||||||||||||||
£m | % | £m | % | |||||||||||||||||||||||
Fixed rate | 140,320 | 83 | 133,231 | 80 | ||||||||||||||||||||||
Variable rate | 18,973 | 11 | 20,986 | 13 | ||||||||||||||||||||||
Standard Variable Rate (SVR) | 9,065 | 5 | 10,627 | 6 | ||||||||||||||||||||||
Follow on Rate (FoR) | 2,260 | 1 | 1,886 | 1 | ||||||||||||||||||||||
170,618 | 100 | 166,730 | 100 |
Stock | New business | ||||||||||||||||
30 June 2021 | 31 December 2020 | 30 June 2021 | 30 June 2020 | ||||||||||||||
Region | £bn | £bn | £bn | £bn | |||||||||||||
London | 43.3 | 41.8 | 4.4 | 3.0 | |||||||||||||
Midlands and East Anglia | 23.1 | 22.5 | 2.3 | 1.6 | |||||||||||||
North | 22.8 | 22.6 | 1.9 | 1.5 | |||||||||||||
Northern Ireland | 3.1 | 3.1 | 0.1 | 0.1 | |||||||||||||
Scotland | 6.6 | 6.7 | 0.4 | 0.3 | |||||||||||||
South East excluding London | 53.9 | 52.5 | 5.5 | 3.8 | |||||||||||||
South West, Wales and other | 17.8 | 17.5 | 1.7 | 1.2 | |||||||||||||
170.6 | 166.7 | 16.3 | 11.5 | ||||||||||||||
Average loan size for new business | £'000 | £'000 | |||||||||||||||
South East including London | 303 | 273 | |||||||||||||||
Rest of the UK | 179 | 154 | |||||||||||||||
UK as a whole | 239 | 208 |
Strategic report | Financial review | Risk review | Financial statements | Shareholder information | ||||||||||||||||||||||
Credit risk |
30 June 2021 | 31 December 2020 | ||||||||||||||||||||||||||||||||||
Stock | Stage 3 | New | Stock | Stage 3 | New | ||||||||||||||||||||||||||||||
Total | ECL | Total | ECL | Business | Total | ECL | Total | ECL | Business | ||||||||||||||||||||||||||
LTV | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | |||||||||||||||||||||||||
Up to 50% | 73,748 | 35 | 897 | 9 | 2,767 | 73,489 | 28 | 858 | 11 | 4,180 | |||||||||||||||||||||||||
>50-75% | 72,159 | 75 | 659 | 28 | 7,406 | 68,324 | 89 | 633 | 36 | 10,088 | |||||||||||||||||||||||||
>75-85% | 19,417 | 35 | 135 | 15 | 3,940 | 18,113 | 41 | 125 | 19 | 5,858 | |||||||||||||||||||||||||
>85-100% | 4,625 | 36 | 89 | 17 | 2,165 | 6,070 | 44 | 93 | 22 | 4,781 | |||||||||||||||||||||||||
>100% | 669 | 69 | 83 | 37 | 32 | 734 | 78 | 90 | 44 | 46 | |||||||||||||||||||||||||
170,618 | 250 | 1,863 | 106 | 16,310 | 166,730 | 280 | 1,799 | 132 | 24,953 | ||||||||||||||||||||||||||
Collateral value of residential properties (1) | 170,522 | 1,849 | 16,310 | 166,623 | 1,783 | 24,953 | |||||||||||||||||||||||||||||
% | % | % | % | % | % | ||||||||||||||||||||||||||||||
Simple Average(2) LTV (indexed) | 42 | 40 | 63 | 42 | 41 | 64 |
30 June 2021 | 31 December 2020 | |||||||
£m | £m | |||||||
Mortgage loans and advances to customers of which: | 170,618 | 166,730 | ||||||
–Stage 1 | 159,808 | 154,586 | ||||||
–Stage 2 | 8,947 | 10,345 | ||||||
–Stage 3 | 1,863 | 1,799 | ||||||
Loss allowances(3) | 250 | 280 |
% | % | |||||||
Stage 1 ratio(1) | 93.66 | 92.72 | ||||||
Stage 2 ratio(1) | 5.24 | 6.20 | ||||||
Stage 3 ratio(2) | 1.10 | 1.09 |
Stage 1 | Stage 2 | Stage 3 | Total | |||||||||||||||||||||||
Exposures(1) | ECL | Exposures(1) | ECL | Exposures(1) | ECL | Exposures(1) | ECL | |||||||||||||||||||
£m | £m | £m | £m | £m | £m | £m | £m | |||||||||||||||||||
At 1 January 2021 | 167,766 | 17 | 10,427 | 131 | 1,813 | 132 | 180,006 | 280 | ||||||||||||||||||
Transfers from Stage 1 to Stage 2(3) | (2,098) | (2) | 2,098 | 2 | — | — | — | — | ||||||||||||||||||
Transfers from Stage 2 to Stage 1(3) | 2,803 | 19 | (2,803) | (19) | — | — | — | — | ||||||||||||||||||
Transfers to Stage 3(3) | (113) | (1) | (392) | (6) | 505 | 7 | — | — | ||||||||||||||||||
Transfers from Stage 3(3) | 2 | — | 251 | 10 | (253) | (10) | — | — | ||||||||||||||||||
Transfers of financial instruments | 594 | 16 | (846) | (13) | 252 | (3) | — | — | ||||||||||||||||||
Net ECL remeasurement on stage transfer(4) | — | (18) | — | 18 | — | 9 | — | 9 | ||||||||||||||||||
Change in economic scenarios(2) | — | (1) | — | (25) | — | (12) | — | (38) | ||||||||||||||||||
New lending and assets purchased(5) | 17,129 | 3 | 12 | — | — | — | 17,141 | 3 | ||||||||||||||||||
Redemptions, repayments and assets sold(7) | (12,591) | (2) | (673) | (5) | (185) | (9) | (13,449) | (16) | ||||||||||||||||||
Changes in risk parameters and other movements(6) | (91) | (4) | 88 | 27 | 10 | (7) | 7 | 16 | ||||||||||||||||||
Assets written off (7) | — | — | — | — | (12) | (4) | (12) | (4) | ||||||||||||||||||
At 30 June 2021 | 172,807 | 11 | 9,008 | 133 | 1,878 | 106 | 183,693 | 250 | ||||||||||||||||||
Net movement in the period | 5,041 | (6) | (1,419) | 2 | 65 | (26) | 3,687 | (30) | ||||||||||||||||||
Charge/(release) to the Income Statement | (5) | 2 | (22) | (25) | ||||||||||||||||||||||
Less: Discount unwind | — | — | (1) | (1) | ||||||||||||||||||||||
Less: Recoveries net of collection costs | — | — | (1) | (1) | ||||||||||||||||||||||
Total ECL charge/(release) to the Income Statement | (5) | 2 | (24) | (27) | ||||||||||||||||||||||
At 1 January 2020 | 168,830 | 14 | 8,224 | 101 | 1,734 | 103 | 178,788 | 218 | ||||||||||||||||||
Transfers from Stage 1 to Stage 2(3) | (4,826) | (2) | 4,826 | 2 | — | — | — | — | ||||||||||||||||||
Transfers from Stage 2 to Stage 1(3) | 1,116 | 11 | (1,116) | (11) | — | — | — | — | ||||||||||||||||||
Transfers to Stage 3(3) | (102) | (1) | (381) | (9) | 483 | 10 | — | — | ||||||||||||||||||
Transfers from Stage 3(3) | 3 | — | 224 | 9 | (227) | (9) | — | — | ||||||||||||||||||
Transfers of financial instruments | (3,809) | 8 | 3,553 | (9) | 256 | 1 | — | — | ||||||||||||||||||
Net ECL remeasurement on stage transfer(4) | — | (11) | — | 56 | — | 6 | — | 51 | ||||||||||||||||||
Change in economic scenarios(2) | — | 2 | — | 27 | — | 11 | — | 40 | ||||||||||||||||||
New lending and assets purchased (5) | 12,129 | 2 | 52 | 2 | — | — | 12,181 | 4 | ||||||||||||||||||
Redemptions, repayments and assets sold(7) | (10,652) | (2) | (437) | (4) | (179) | (8) | (11,268) | (14) | ||||||||||||||||||
Changes in risk parameters and other movements(6) | (2,410) | — | 107 | (9) | 12 | 3 | (2,291) | (6) | ||||||||||||||||||
Assets written off (7) | — | — | — | — | (28) | (7) | (28) | (7) | ||||||||||||||||||
At 30 June 2020 | 164,088 | 13 | 11,499 | 164 | 1,795 | 109 | 177,382 | 286 | ||||||||||||||||||
Net movement in the period | (4,742) | (1) | 3,275 | 63 | 61 | 6 | (1,406) | 68 | ||||||||||||||||||
Charge/(release) to the Income Statement | (1) | 63 | 13 | 75 | ||||||||||||||||||||||
Less: Discount unwind | — | — | (1) | (1) | ||||||||||||||||||||||
Less: Recoveries net of collection costs | — | — | (1) | (1) | ||||||||||||||||||||||
Total ECL charge/(release) to the Income Statement | (1) | 63 | 11 | 73 |
Strategic report | Financial review | Risk review | Financial statements | Shareholder information | ||||||||||||||||||||||
Credit risk |
Portfolio of particular interest(1) | |||||||||||||||||||||||
Total | Interest-only | Part interest-only, part repayment (2) (3) | Flexible(3) | LTV >100% | Buy-to-let | Other portfolio | |||||||||||||||||
30 June 2021 | £m | £m | £m | £m | £m | £m | £m | ||||||||||||||||
Mortgage portfolio | 170,618 | 39,554 | 13,486 | 9,203 | 669 | 13,354 | 113,649 | ||||||||||||||||
–Stage 1 | 159,808 | 34,861 | 12,284 | 8,127 | 413 | 12,952 | 109,002 | ||||||||||||||||
–Stage 2 | 8,947 | 3,857 | 956 | 843 | 173 | 364 | 3,922 | ||||||||||||||||
–Stage 3 | 1,863 | 836 | 246 | 233 | 83 | 38 | 725 | ||||||||||||||||
Stage 3 ratio(4) | 1.10 | % | 2.13 | % | 1.83 | % | 2.69 | % | 12.45 | % | 0.28 | % | 0.64 | % | |||||||||
PIPs | 3 | 2 | 1 | 1 | 2 | — | 1 | ||||||||||||||||
Simple average LTV (indexed) | 42 | % | 45 | % | 44 | % | 25 | % | 117 | % | 60 | % | 42 | % | |||||||||
31 December 2020 | |||||||||||||||||||||||
Mortgage portfolio | 166,730 | 38,441 | 13,234 | 9,953 | 734 | 11,608 | 110,854 | ||||||||||||||||
–Stage 1 | 154,586 | 33,330 | 11,860 | 8,731 | 423 | 11,180 | 105,514 | ||||||||||||||||
–Stage 2 | 10,345 | 4,228 | 1,126 | 989 | 221 | 393 | 4,728 | ||||||||||||||||
–Stage 3 | 1,799 | 883 | 248 | 233 | 90 | 35 | 612 | ||||||||||||||||
Stage 3 ratio(4) | 1.09 | % | 2.31 | % | 1.88 | % | 2.48 | % | 12.30 | % | 0.30 | % | 0.55 | % | |||||||||
PIPs | 10 | 5 | 2 | 1 | 4 | 0 | 2 | ||||||||||||||||
Simple average LTV (indexed) | 42 | % | 44 | % | 44 | % | 26 | % | 117 | % | 59 | % | 43 | % |
Consumer (auto) finance | Other unsecured | |||||||||||||||||||
Personal loans | Credit cards | Overdrafts | Total other unsecured | Total | ||||||||||||||||
30 June 2021 | £m | £m | £m | £m | £m | £m | ||||||||||||||
Loans and advances to customers of which: | 7,656 | 1,997 | 2,172 | 391 | 4,560 | 12,216 | ||||||||||||||
–Stage 1 | 7,339 | 1,875 | 1,937 | 272 | 4,084 | 11,423 | ||||||||||||||
–Stage 2 | 276 | 103 | 197 | 103 | 403 | 679 | ||||||||||||||
–Stage 3 | 41 | 19 | 38 | 16 | 73 | 114 | ||||||||||||||
Loss allowances(2) | 93 | 66 | 129 | 43 | 238 | 331 | ||||||||||||||
Stage 3 undrawn exposures | — | 27 | 27 | |||||||||||||||||
Stage 3 ratio(1) | 0.54 | % | 2.18 | % | 1.15 | % | ||||||||||||||
Gross write offs | 15 | 49 | 64 | |||||||||||||||||
31 December 2020 | ||||||||||||||||||||
Loans and advances to customers of which: | 8,024 | 2,038 | 2,349 | 408 | 4,795 | 12,819 | ||||||||||||||
–Stage 1 | 7,587 | 1,881 | 1,975 | 253 | 4,109 | 11,696 | ||||||||||||||
–Stage 2 | 379 | 139 | 335 | 138 | 612 | 991 | ||||||||||||||
–Stage 3 | 58 | 18 | 39 | 17 | 74 | 132 | ||||||||||||||
Loss allowances(2) | 118 | 80 | 158 | 61 | 299 | 417 | ||||||||||||||
Stage 3 undrawn exposures | — | 27 | 27 | |||||||||||||||||
Stage 3 ratio(1) | 0.72 | % | 2.09 | % | 1.24 | % | ||||||||||||||
Gross write-offs | 25 | 129 | 154 |
30 June 2021 | 31 December 2020 | |||||||
£m | £m | |||||||
Loans and advances to customers of which: | 3,873 | 3,855 | ||||||
–Stage 1 | 3,826 | 3,845 | ||||||
–Stage 2 | 44 | 6 | ||||||
–Stage 3 | 3 | 4 | ||||||
Loss allowances(2) | 22 | 9 | ||||||
Stage 3 undrawn exposures | — | — | ||||||
Stage 3 ratio(1) | 0.10 | % | 0.10 | % | ||||
Gross write offs | 3 | 12 |
Strategic report | Financial review | Risk review | Financial statements | Shareholder information | ||||||||||||||||||||||
Credit risk |
Santander UK risk grade | |||||||||||||||||||||||||||||
9 | 8 | 7 | 6 | 5 | 4 | 3 to 1 | Other(1) | Total | |||||||||||||||||||||
30 June 2021 | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||||||||||||||||||
Corporate & Commercial Banking | 37 | 3,104 | 3,786 | 3,043 | 4,574 | 5,903 | 3,294 | 856 | 24,597 | ||||||||||||||||||||
Corporate & Investment Banking | 209 | 1,220 | 3,232 | 2,789 | 1,037 | 142 | 65 | — | 8,694 | ||||||||||||||||||||
Corporate Centre | 48,005 | 4,293 | 1,762 | 45 | — | — | — | 45 | 54,150 | ||||||||||||||||||||
Total | 48,251 | 8,617 | 8,780 | 5,877 | 5,611 | 6,045 | 3,359 | 901 | 87,441 | ||||||||||||||||||||
Of which: | |||||||||||||||||||||||||||||
Stage 1 | 48,251 | 8,259 | 8,398 | 5,517 | 4,761 | 3,746 | 495 | 725 | 80,152 | ||||||||||||||||||||
Stage 2 | — | 358 | 382 | 360 | 850 | 2,299 | 1,911 | 176 | 6,336 | ||||||||||||||||||||
Stage 3 | — | — | — | — | — | — | 953 | — | 953 | ||||||||||||||||||||
31 December 2020 | |||||||||||||||||||||||||||||
Corporate & Commercial Banking | 112 | 3,099 | 3,687 | 2,854 | 3,516 | 7,204 | 3,274 | 934 | 24,680 | ||||||||||||||||||||
Corporate & Investment Banking | 541 | 2,245 | 3,889 | 3,905 | 1,529 | 157 | 81 | — | 12,347 | ||||||||||||||||||||
Corporate Centre | 50,246 | 5,628 | 2,052 | 47 | — | — | — | 156 | 58,129 | ||||||||||||||||||||
Total | 50,899 | 10,972 | 9,628 | 6,806 | 5,045 | 7,361 | 3,355 | 1,090 | 95,156 | ||||||||||||||||||||
Of which: | |||||||||||||||||||||||||||||
Stage 1 | 50,899 | 10,889 | 9,567 | 6,541 | 4,136 | 4,029 | 431 | 905 | 87,397 | ||||||||||||||||||||
Stage 2 | — | 83 | 61 | 265 | 909 | 3,332 | 1,904 | 185 | 6,739 | ||||||||||||||||||||
Stage 3 | — | — | — | — | — | — | 1,020 | — | 1,020 |
30 June 2021 | 31 December 2020 | ||||||||||||||||||||||||||||||||||
UK | Europe | US | Rest of World | Total | UK | Europe | US | Rest of World | Total | ||||||||||||||||||||||||||
£m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||||||||||||||||||||||||
Corporate & Commercial Banking | 24,551 | 45 | — | 1 | 24,597 | 24,632 | 47 | — | 1 | 24,680 | |||||||||||||||||||||||||
Corporate & Investment Banking | 7,740 | 543 | 161 | 250 | 8,694 | 10,456 | 1,487 | 130 | 274 | 12,347 | |||||||||||||||||||||||||
Corporate Centre | 49,052 | 2,113 | 485 | 2,500 | 54,150 | 50,484 | 2,680 | 855 | 4,110 | 58,129 |
Committed exposure | ||||||||||||||||||||
Watchlist | ||||||||||||||||||||
Fully performing | Enhanced monitoring | Proactive management | Stage 3 | Total(1) | Loss allowances | |||||||||||||||
30 June 2021 | £m | £m | £m | £m | £m | £m | ||||||||||||||
Corporate & Commercial Banking | 19,971 | 679 | 2,994 | 953 | 24,597 | 534 | ||||||||||||||
Corporate & Investment Banking | 7,855 | 167 | 672 | — | 8,694 | 19 | ||||||||||||||
Corporate Centre | 54,081 | — | 69 | — | 54,150 | 36 | ||||||||||||||
Total loss allowances | 589 |
31 December 2020 | ||||||||||||||||||||
Corporate & Commercial Banking | 20,044 | 573 | 3,043 | 1,020 | 24,680 | 603 | ||||||||||||||
Corporate & Investment Banking | 10,835 | 252 | 1,260 | — | 12,347 | 33 | ||||||||||||||
Corporate Centre | 58,060 | 69 | — | — | 58,129 | 35 | ||||||||||||||
Total loss allowances | 671 |
Strategic report | Financial review | Risk review | Financial statements | Shareholder information | ||||||||||||||||||||||
Market risk |
Overview Market risk comprises banking market risk and trading market risk. Market risk management In H121, there were no significant changes in the way we manage market risk as described in the 2020 Annual Report. Market risk review In this section, we analyse our key banking and trading market risk metrics. | Key metrics Net Interest Margin (NIM) sensitivity to +50bps was £219m and to ‑50bps was £(237)m (2020: £225m and £(15)m) Economic Value of Equity (EVE) sensitivity to +50bps was £280m and to ‑50bps was £(490)m (2020: £367m and £(585)m) |
30 June 2021 | 31 December 2020 | ||||||||||||||||
+50bps | -50bps | +50bps | -50bps | ||||||||||||||
£m | £m | £m | £m | ||||||||||||||
NIM sensitivity | 219 | (237) | 225 | (15) | |||||||||||||
EVE sensitivity | 280 | (490) | 367 | (585) |
Overview Liquidity risk is the risk that, while still being solvent, we do not have the liquid financial resources to meet our obligations when they fall due, or we can only obtain them at high cost. Liquidity risk management In H121, there were no significant changes in the way we manage liquidity risk as described in the 2020 Annual Report. Liquidity risk review In this section, we analyse our key liquidity metrics, including our Liquidity Coverage Ratio (LCR), our Liquidity Risk Appetite (LRA) and our wholesale funding. We also provide information on asset encumbrance. | Key metrics RFB DoLSub LCR of 144% (2020: 150%) Wholesale funding with maturity <1 year £17.0bn (2020: £21.1bn) RFB DoLSub LCR eligible liquidity pool carrying value of £47.0bn (2020: £51.5bn) |
RFB DoLSub LCR(1) | RFB LRA(2) | ||||||||||||||||
30 June 2021 | 31 December 2020 | 30 June 2021 | 31 December 2020 | ||||||||||||||
£bn | £bn | £bn | £bn | ||||||||||||||
Eligible liquidity pool (liquidity value)(3) | 46.8 | 51.2 | 47.0 | 47.2 | |||||||||||||
Net stress outflows | (32.5) | (34.1) | (34.6) | (34.4) | |||||||||||||
Surplus | 14.3 | 17.1 | 12.4 | 12.8 | |||||||||||||
Eligible liquidity pool as a percentage of anticipated net cash flows | 144 | % | 150 | % | 136 | % | 137 | % |
RFB DoLSub LCR | ||||||||
30 June 2021 | 31 December 2020 | |||||||
£bn | £bn | |||||||
Eligible liquidity pool (carrying value) | 47.0 | 51.5 |
Strategic report | Financial review | Risk review | Financial statements | Shareholder information | ||||||||||||||||||||||
Liquidity risk |
≤ 1 month | >1 and ≤ 3 months | >3 and ≤ 6 months | >6 and ≤ 9 months | >9 and ≤ 12 months | Sub-total ≤ 1 year | >1 and ≤ 2 years | >2 and ≤ 5 years | >5 years | Total | |||||||||||||||||||||||
30 June 2021 | £bn | £bn | £bn | £bn | £bn | £bn | £bn | £bn | £bn | £bn | ||||||||||||||||||||||
Downstreamed from Santander UK Group Holdings plc to Santander UK plc(1) | ||||||||||||||||||||||||||||||||
Senior unsecured – public benchmark | — | 1.1 | — | 0.7 | 0.4 | 2.2 | 1.4 | 5.6 | 1.3 | 10.5 | ||||||||||||||||||||||
–privately placed | — | — | — | — | — | — | — | — | 0.1 | 0.1 | ||||||||||||||||||||||
Subordinated liabilities and equity (incl. AT1) | — | — | — | — | 0.8 | 0.8 | — | 1.7 | 0.3 | 2.8 | ||||||||||||||||||||||
— | 1.1 | — | 0.7 | 1.2 | 3.0 | 1.4 | 7.3 | 1.7 | 13.4 | |||||||||||||||||||||||
Other Santander UK plc | ||||||||||||||||||||||||||||||||
Deposits by banks | — | 0.2 | — | — | — | 0.2 | — | — | — | 0.2 | ||||||||||||||||||||||
Certificates of deposit and commercial paper | 1.2 | 3.6 | 0.4 | 0.3 | — | 5.5 | — | — | — | 5.5 | ||||||||||||||||||||||
Senior unsecured – public benchmark | — | — | 0.8 | 0.6 | — | 1.4 | 0.3 | 1.1 | 0.3 | 3.1 | ||||||||||||||||||||||
–privately placed | — | — | 0.1 | — | — | 0.1 | — | 0.3 | 0.2 | 0.6 | ||||||||||||||||||||||
Covered bonds | — | 1.7 | — | — | 0.7 | 2.4 | 1.9 | 6.4 | 3.4 | 14.1 | ||||||||||||||||||||||
Securitisation & structured issuance(2) | 0.2 | — | — | 0.2 | 0.1 | 0.5 | 0.2 | 0.2 | — | 0.9 | ||||||||||||||||||||||
Term Funding Scheme (TFS) | — | 1.0 | — | 2.3 | — | 3.3 | — | — | — | 3.3 | ||||||||||||||||||||||
TFSME | — | — | — | — | — | — | — | 15.2 | — | 15.2 | ||||||||||||||||||||||
Subordinated liabilities | — | — | — | — | — | — | — | 0.7 | 0.9 | 1.6 | ||||||||||||||||||||||
1.4 | 6.5 | 1.3 | 3.4 | 0.8 | 13.4 | 2.4 | 23.9 | 4.8 | 44.5 | |||||||||||||||||||||||
Other group entities | ||||||||||||||||||||||||||||||||
Securitisation & structured issuance(3) | 0.1 | 0.1 | 0.2 | 0.1 | 0.1 | 0.6 | 0.3 | 0.2 | — | 1.1 | ||||||||||||||||||||||
Total at 30 June 2021 | 1.5 | 7.7 | 1.5 | 4.2 | 2.1 | 17.0 | 4.1 | 31.4 | 6.5 | 59.0 | ||||||||||||||||||||||
Of which: –Secured | 0.3 | 2.8 | 0.2 | 2.6 | 0.9 | 6.8 | 2.4 | 22.0 | 3.4 | 34.6 | ||||||||||||||||||||||
–Unsecured | 1.2 | 4.9 | 1.3 | 1.6 | 1.2 | 10.2 | 1.7 | 9.4 | 3.1 | 24.4 | ||||||||||||||||||||||
31 December 2020 | ||||||||||||||||||||||||||||||||
Total at 31 December 2020 | 2.2 | 5.6 | 8.0 | 4.1 | 1.2 | 21.1 | 7.9 | 28.2 | 8.1 | 65.3 | ||||||||||||||||||||||
Of which: | ||||||||||||||||||||||||||||||||
–Secured | 0.4 | 1.6 | 5.2 | 3.0 | 0.2 | 10.4 | 5.3 | 18.6 | 4.4 | 38.7 | ||||||||||||||||||||||
–Unsecured | 1.8 | 4.0 | 2.8 | 1.1 | 1.0 | 10.7 | 2.6 | 9.6 | 3.7 | 26.6 |
Sterling | US Dollar | Euro | Other | Total H121 | Total H120 | |||||||||||||||
£bn | £bn | £bn | £bn | £bn | £bn | |||||||||||||||
Downstreamed from Santander UK Group Holdings plc to Santander UK plc | ||||||||||||||||||||
Senior unsecured – public benchmark | — | 2.1 | — | — | 2.1 | 0.6 | ||||||||||||||
Subordinated debt and equity (inc. AT1) | 0.3 | — | — | — | 0.3 | — | ||||||||||||||
0.3 | 2.1 | — | — | 2.4 | 0.6 | |||||||||||||||
Other Santander UK plc | ||||||||||||||||||||
Covered bonds | — | — | — | — | — | 3.0 | ||||||||||||||
Senior unsecured – public benchmark | — | — | — | — | — | 1.0 | ||||||||||||||
–privately placed | 0.1 | — | — | — | 0.1 | — | ||||||||||||||
TFSME | 3.5 | — | — | — | 3.5 | — | ||||||||||||||
3.6 | — | — | — | 3.6 | 4.0 | |||||||||||||||
Other group entities | ||||||||||||||||||||
Securitisations | — | — | — | — | — | — | ||||||||||||||
Total gross issuances | 3.9 | 2.1 | — | — | 6.0 | 4.6 |
Strategic report | Financial review | Risk review | Financial statements | Shareholder information | ||||||||||||||||||||||
Capital risk |
Overview Capital risk is the risk that we do not have an adequate amount or quality of capital to meet our internal business needs, regulatory requirements and market expectations. Capital risk management In H121, there were no significant changes in the way we manage capital risk as described in the 2020 Annual Report. Capital risk review In this section, we analyse our capital resources and key capital ratios including our RWAs. | Key metrics CET1 capital ratio of 15.8% (2020: 15.4% ) Total qualifying regulatory capital decreased to £15.0bn (2020: £15.2bn) |
Current MDA | |||||
% | |||||
Pillar 1 | 4.5 | ||||
Pillar 2A(1) | 2.8 | ||||
CCB | 2.5 | ||||
O-SII | 1.0 | ||||
Current MDA trigger | 10.8 | ||||
Headroom to current MDA | 5.0 | ||||
Total CET1 capital ratio | 15.8 |
30 June 2021 | 31 December 2020 | |||||||
% | % | |||||||
CET1 capital ratio | 15.8 | 15.4 | ||||||
AT1 | 2.7 | 2.7 | ||||||
Grandfathered Tier 1 | 0.2 | 0.4 | ||||||
Tier 2 | 2.3 | 2.7 | ||||||
Total capital ratio | 21.0 | 21.2 |
30 June 2021 | 31 December 2020 | |||||||
£m | £m | |||||||
CET1 capital | 11,289 | 11,057 | ||||||
AT1 capital | 2,118 | 2,281 | ||||||
Tier 1 capital | 13,407 | 13,338 | ||||||
Tier 2 capital | 1,619 | 1,909 | ||||||
Total regulatory capital(1) | 15,026 | 15,247 |
30 June 2021 | 31 December 2020 | |||||||
£bn | £bn | |||||||
Total RWAs | 71.7 | 71.9 |
Strategic report | Financial review | Risk review | Financial statements | Shareholder information | ||||||||||||||||||||||
Pension risk |
Overview Pension risk is the risk caused by our statutory contractual or other liabilities with respect to a pension scheme (whether set up for our employees or those of a related company or otherwise). It also refers to the risk that we will need to make payments or other contributions with respect to a pension scheme due to some other reason. Pension risk management In H121, there were no significant changes in the way we manage pension risk as described in the 2020 Annual Report. Pension risk review In this section, we provide an update on key movements in pension risk profile in H121. | Key metrics Funding Deficit at Risk was £1,195m (2020: £1,280m) Funded defined benefit pension scheme accounting surplus was £970m (2020: £134m) |
Overview We manage the conduct and non-financial regulatory risk types in one framework. We do this to reflect their similarities. Conduct and regulatory risk management In H121, there were no significant changes in the way we manage conduct and regulatory risk as described in the 2020 Annual Report. Conduct and regulatory risk review In this section, we provide an update on key movements in conduct and regulatory risk profile in H121. | Key metrics PPI provision was £37m (2020: £76m) Other conduct provision was £8m (2020: £8m) |
Strategic report | Financial review | Risk review | Financial statements | Shareholder information | ||||||||||||||||||||||
Operational risk |
Overview Operational risk is the risk of loss due to inadequate or failed internal processes, people and systems, or external events. Operational risk management In H121, there were no significant changes in the way we manage operational risk as described in the 2020 Annual Report. Operational risk review In this section, we provide an update on key movements in operational risk profile in H121. | Key metrics Operational risk losses remain within forecast |
Strategic report | Financial review | Risk review | Financial statements | Shareholder information | ||||||||||||||||||||||
Other key risks |
Overview Other key risks consist of Financial crime risk, Legal risk, Strategic and business risk, Reputational risk and Model risk. Risk management In H121, there were no significant changes in the way we manage other key risks as described in the 2020 Annual Report. Risk review In this section, we provide an update on key movements in our financial crime risk profile and model risk profile in H121. There were no significant changes to our risk profile for Legal risk, Strategic and business risk, and Reputational risk in H121. For more on those risks, see 'Other key risks' in the 2020 Annual Report. | Key metrics £60m investment in financial crime enhancements planned for 2021 |
Financial statements | |||||||||||
Contents | |||||||||||
Primary financial statements | 54 | ||||||||||
Consolidated Income Statement | 54 | ||||||||||
Consolidated Statement of Comprehensive Income | 55 | ||||||||||
Consolidated Balance Sheet | 56 | ||||||||||
Consolidated Cash Flow Statement | 57 | ||||||||||
Consolidated Statement of Changes in Equity | 58 | ||||||||||
Notes to the financial statements | 59 |
Strategic report | Financial review | Risk review | Financial statements | Shareholder information | ||||||||||||||||||||||
2021 Half Yearly Financial Report| Financial statements | ||||||||
Half year to | Half year to(1) | |||||||||||||
30 June 2021 | 30 June 2020 | |||||||||||||
Notes | £m | £m | ||||||||||||
Interest and similar income | ||||||||||||||
Interest expense and similar charges | ( | ( | ||||||||||||
Net interest income | ||||||||||||||
Fee and commission income | ||||||||||||||
Fee and commission expense | ( | ( | ||||||||||||
Net fee and commission income | ||||||||||||||
Other operating income | 3 | |||||||||||||
Total operating income | ||||||||||||||
Operating expenses before credit impairment losses, provisions and charges | 4 | ( | ( | |||||||||||
Credit impairment losses | 5 | ( | ||||||||||||
Provisions for other liabilities and charges | 5 | ( | ( | |||||||||||
Total operating credit impairment losses, provisions and charges | ( | ( | ||||||||||||
Profit from continuing operations before tax | ||||||||||||||
Tax on profit from continuing operations | 6 | ( | ( | |||||||||||
Profit from continuing operations after tax | ||||||||||||||
Profit/(loss) from discontinued operations after tax | 33 | ( | ||||||||||||
Profit after tax | ||||||||||||||
Attributable to: | ||||||||||||||
Equity holders of the parent | ||||||||||||||
Non-controlling interests | 28 | |||||||||||||
Profit after tax |
Strategic report | Financial review | Risk review | Financial statements | Shareholder information | ||||||||||||||||||||||
Primary financial statements | Santander UK plc |
Half year to | Half year to | ||||||||||
30 June 2021 | 30 June 2020 | ||||||||||
£m | £m | ||||||||||
Profit after tax | |||||||||||
Other comprehensive income/(expense) that may be reclassified to profit or loss subsequently: | |||||||||||
Movement in fair value reserve (debt instruments): | |||||||||||
–Change in fair value | ( | ||||||||||
–Income statement transfers | ( | ||||||||||
–Taxation | ( | ||||||||||
( | ( | ||||||||||
Cash flow hedges: | |||||||||||
–Effective portion of changes in fair value | ( | ||||||||||
–Income statement transfers | ( | ||||||||||
–Taxation | ( | ||||||||||
( | |||||||||||
Currency translation on foreign operations | ( | ||||||||||
Net other comprehensive income/(expense) that may be reclassified to profit or loss subsequently | ( | ||||||||||
Other comprehensive income/(expense) that will not be reclassified to profit or loss subsequently: | |||||||||||
Pension remeasurement: | |||||||||||
–Change in fair value | ( | ||||||||||
–Taxation | ( | ||||||||||
( | |||||||||||
Own credit adjustment: | |||||||||||
–Change in fair value | |||||||||||
–Taxation | ( | ||||||||||
Net other comprehensive income/(expense) that will not be reclassified to profit or loss subsequently | ( | ||||||||||
Total other comprehensive income net of tax | |||||||||||
Total comprehensive income | |||||||||||
Attributable to: | |||||||||||
Equity holders of the parent | |||||||||||
Non-controlling interests | |||||||||||
Total comprehensive income |
2021 Half Yearly Financial Report| Financial statements | ||||||||
30 June 2021 | 31 December 2020 | ||||||||||
Notes | £m | £m | |||||||||
Assets | |||||||||||
Cash and balances at central banks | |||||||||||
Financial assets at fair value through profit or loss: | |||||||||||
–Derivative financial instruments | 8 | ||||||||||
–Other financial assets at fair value through profit or loss | 9 | ||||||||||
Financial assets at amortised cost: | |||||||||||
–Loans and advances to customers | 10 | ||||||||||
–Loans and advances to banks | |||||||||||
–Reverse repurchase agreements – non trading | 12 | ||||||||||
–Other financial assets at amortised cost | 13 | ||||||||||
Financial assets at fair value through other comprehensive income | 14 | ||||||||||
Interests in other entities | 15 | ||||||||||
Intangible assets | 16 | ||||||||||
Property, plant and equipment | 17 | ||||||||||
Current tax assets | |||||||||||
Retirement benefit assets | 25 | ||||||||||
Other assets | |||||||||||
Assets held for sale | 33 | ||||||||||
Total assets | |||||||||||
Liabilities | |||||||||||
Financial liabilities at fair value through profit or loss: | |||||||||||
–Derivative financial instruments | 8 | ||||||||||
–Other financial liabilities at fair value through profit or loss | 18 | ||||||||||
Financial liabilities at amortised cost: | |||||||||||
– Deposits by customers | 19 | ||||||||||
–Deposits by banks | 20 | ||||||||||
–Repurchase agreements – non trading | 21 | ||||||||||
–Debt securities in issue | 22 | ||||||||||
–Subordinated liabilities | 23 | ||||||||||
Other liabilities | |||||||||||
Provisions | 24 | ||||||||||
Deferred tax liabilities | |||||||||||
Retirement benefit obligations | 25 | ||||||||||
Liabilities held for sale | 33 | ||||||||||
Total liabilities | |||||||||||
Equity | |||||||||||
Share capital | |||||||||||
Share premium | |||||||||||
Other equity instruments | 27 | ||||||||||
Retained earnings | |||||||||||
Other reserves | |||||||||||
Total shareholders’ equity | |||||||||||
Non-controlling interests | 28 | ||||||||||
Total equity | |||||||||||
Total liabilities and equity |
Strategic report | Financial review | Risk review | Financial statements | Shareholder information | ||||||||||||||||||||||
Primary financial statements | Santander UK plc |
Half year to | Half year to | ||||||||||
30 June 2021 | 30 June 2020 | ||||||||||
£m | £m | ||||||||||
Cash flows from operating activities | |||||||||||
Profit after tax | |||||||||||
Adjustments for: | |||||||||||
Non-cash items included in profit | |||||||||||
Change in operating assets | ( | ||||||||||
Change in operating liabilities(1) | |||||||||||
Corporation taxes paid | ( | ( | |||||||||
Effects of exchange rate differences | ( | ||||||||||
Net cash flows from operating activities | |||||||||||
Cash flows from investing activities | |||||||||||
Purchase of property, plant and equipment and intangible assets | ( | ( | |||||||||
Proceeds from sale of property, plant and equipment and intangible assets | |||||||||||
Purchase of financial assets at amortised cost and financial assets at fair value through other comprehensive income | ( | ( | |||||||||
Proceeds from sale and redemption of financial assets at amortised cost and financial assets at fair value through other comprehensive income | |||||||||||
Net cash flows from investing activities | ( | ||||||||||
Cash flows from financing activities | |||||||||||
Issue of other equity instruments | |||||||||||
Issue of debt securities and subordinated notes | |||||||||||
Issuance costs of debt securities and subordinated notes | ( | ( | |||||||||
Repayment of debt securities and subordinated notes | ( | ( | |||||||||
Repurchase of other equity instruments | ( | ||||||||||
Dividends paid on preference shares and other equity instruments | ( | ( | |||||||||
Principal elements of lease payments(1) | ( | ( | |||||||||
Net cash flows from financing activities | ( | ( | |||||||||
Change in cash and cash equivalents | ( | ||||||||||
Cash and cash equivalents at beginning of the period | |||||||||||
Effects of exchange rate changes on cash and cash equivalents | ( | ||||||||||
Cash and cash equivalents at the end of the period | |||||||||||
Cash and cash equivalents consist of: | |||||||||||
Cash and balances at central banks | |||||||||||
Less: regulatory minimum cash balances | ( | ( | |||||||||
Other cash equivalents | |||||||||||
Cash and cash equivalents at the end of the period |
2021 Half Yearly Financial Report| Financial statements | ||||||||
Other reserves | Non-controlling interests | |||||||||||||||||||||||||||||||
Share capital | Share premium | Other equity instruments | Fair value | Cash flow hedging | Currency translation | Retained earnings | ||||||||||||||||||||||||||
Total | Total | |||||||||||||||||||||||||||||||
£m | £m | £m | £m | £m | £m | £m | £m | £m | £m | |||||||||||||||||||||||
At 1 January 2021 | ||||||||||||||||||||||||||||||||
Profit after tax | — | — | — | — | — | — | ||||||||||||||||||||||||||
Other comprehensive income, net of tax: | ||||||||||||||||||||||||||||||||
– Fair value reserve (debt instruments) | — | — | — | ( | — | — | — | ( | — | ( | ||||||||||||||||||||||
– Cash flow hedges | — | — | — | — | ( | — | — | ( | — | ( | ||||||||||||||||||||||
– Pension remeasurement | — | — | — | — | — | — | ||||||||||||||||||||||||||
Total comprehensive income | — | — | — | ( | ( | |||||||||||||||||||||||||||
Issue of other equity instruments | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Repurchase of other equity instruments | — | — | ( | — | — | — | — | ( | — | ( | ||||||||||||||||||||||
Dividends on preference shares and other equity instruments | — | — | — | — | — | — | ( | ( | — | ( | ||||||||||||||||||||||
At 30 June 2021 | ||||||||||||||||||||||||||||||||
At 1 January 2020 | ||||||||||||||||||||||||||||||||
Profit after tax | — | — | — | — | — | — | ||||||||||||||||||||||||||
Other comprehensive income, net of tax: | ||||||||||||||||||||||||||||||||
– Fair value reserve (debt instruments) | — | — | — | ( | — | — | — | ( | — | ( | ||||||||||||||||||||||
– Cash flow hedges | — | — | — | — | — | — | — | |||||||||||||||||||||||||
– Pension remeasurement | — | — | — | — | — | — | ( | ( | ( | ( | ||||||||||||||||||||||
– Own credit adjustment | — | — | — | — | — | — | — | |||||||||||||||||||||||||
– Currency translation on foreign operations | — | — | — | — | — | ( | — | ( | — | ( | ||||||||||||||||||||||
Total comprehensive income | — | — | — | ( | ( | ( | ||||||||||||||||||||||||||
Dividends on preference shares and other equity instruments | — | — | — | — | — | — | ( | ( | — | ( | ||||||||||||||||||||||
At 30 June 2020 | ||||||||||||||||||||||||||||||||
Strategic report | Financial review | Risk review | Financial statements | Shareholder information | ||||||||||||||||||||||
Notes to the financial statements | Santander UK plc |
2021 Half Yearly Financial Report | Financial statements | ||||||||
Key judgements | –Determining an appropriate definition of default | ||||
–Establishing the criteria for a significant increase in credit risk (SICR) and, for corporate borrowers, internal credit risk rating | |||||
–Applying post model adjustments | |||||
–Assessing individual corporate Stage 3 exposures | |||||
Key estimates | –Forward-looking multiple economic scenario assumptions | ||||
–Probability weights assigned to multiple economic scenarios |
Key judgements | –Determining whether a present obligation exists | ||||
–Assessing the likely outcome of future legal decisions | |||||
Key estimates | –Probability, timing, nature and amount of any outflows that may arise from past events |
Key judgements | –Setting the criteria for constructing the corporate bond yield curve used to determine the discount rate | ||||
–Determining the methodology for setting the inflation assumption | |||||
Key estimates | –Discount rate applied to future cash flows | ||||
–Rate of price inflation | |||||
–Expected lifetime of the schemes' members |
Key judgements: | –Determining the basis of goodwill impairment calculation assumptions, including management's planning assumptions considering internal capital allocations needed to support Santander UK's strategy, current market conditions and the macro-economic outlook. | ||||
Key estimates: | –Forecast cash flows for cash generating units, including estimated allocations of regulatory capital | ||||
–Growth rate beyond initial cash flow projections | |||||
–Discount rates which factor in risk-free rates and applicable risk premiums | |||||
These are variables subject to fluctuations in external market rates and economic conditions beyond management’s control |
Strategic report | Financial review | Risk review | Financial statements | Shareholder information | ||||||||||||||||||||||
Notes to the financial statements | Santander UK plc |
Half year to | Retail Banking | Corporate & Commercial Banking | Corporate & Investment Banking | Corporate Centre | Total | ||||||||||||
30 June 2021 | £m | £m | £m | £m | £m | ||||||||||||
Net interest income/(expense) | ( | ||||||||||||||||
Non-interest income | |||||||||||||||||
Total operating income | |||||||||||||||||
Operating expenses before credit impairment losses, provisions and charges | ( | ( | ( | ( | |||||||||||||
Credit impairment losses | |||||||||||||||||
Provisions for other liabilities and charges | ( | ( | ( | ( | |||||||||||||
Total operating credit impairment losses, provisions and charges | ( | ( | ( | ||||||||||||||
Profit/(loss) from continuing operations before tax | ( | ||||||||||||||||
Revenue from external customers | ( | ||||||||||||||||
Inter-segment revenue | ( | ( | |||||||||||||||
Total operating income | |||||||||||||||||
Revenue from external customers includes the following fee and commission income disaggregated by income type:(1) | |||||||||||||||||
–Current account and debit card fees | |||||||||||||||||
–Insurance, protection and investments | |||||||||||||||||
–Credit cards | |||||||||||||||||
–Non-banking and other fees(2) | |||||||||||||||||
Total fee and commission income | |||||||||||||||||
Fee and commission expense | ( | ( | ( | ( | |||||||||||||
Net fee and commission income/(expense) | ( | ||||||||||||||||
30 June 2021 | |||||||||||||||||
Customer loans | |||||||||||||||||
Total assets(3) | |||||||||||||||||
Of which assets held for sale | |||||||||||||||||
Customer deposits | |||||||||||||||||
Total liabilities | |||||||||||||||||
Of which liabilities held for sale | |||||||||||||||||
2021 Half Yearly Financial Report | Financial statements | ||||||||
Half year to(4)(5) | Retail Banking | Corporate & Commercial Banking | Corporate & Investment Banking | Corporate Centre | Total | ||||||||||||
30 June 2020 | £m | £m | £m | £m | £m | ||||||||||||
Net interest income/(expense) | ( | ||||||||||||||||
Non-interest income | |||||||||||||||||
Total operating income/(expense) | |||||||||||||||||
Operating expenses before credit impairment losses, provisions and charges | ( | ( | ( | ( | |||||||||||||
Credit impairment losses | ( | ( | ( | ||||||||||||||
Provisions for other liabilities and charges | ( | ( | ( | ||||||||||||||
Total operating credit impairment losses, provisions and charges | ( | ( | ( | ( | |||||||||||||
Profit/(loss) from continuing operations before tax | ( | ( | |||||||||||||||
Revenue from external customers | ( | ||||||||||||||||
Inter-segment revenue | ( | ( | |||||||||||||||
Total operating income/(expense) | |||||||||||||||||
Revenue from external customers includes the following fee and commission income disaggregated by income type:(1) | |||||||||||||||||
–Current account and debit card fees | |||||||||||||||||
–Insurance, protection and investments | |||||||||||||||||
–Credit cards | |||||||||||||||||
–Non-banking and other fees(2) | |||||||||||||||||
Total fee and commission income | |||||||||||||||||
Fee and commission expense | ( | ( | ( | ( | |||||||||||||
Net fee and commission income | |||||||||||||||||
31 December 2020 | |||||||||||||||||
Customer loans | |||||||||||||||||
Total assets(3) | |||||||||||||||||
Customer deposits | |||||||||||||||||
Total liabilities | |||||||||||||||||
Strategic report | Financial review | Risk review | Financial statements | Shareholder information | ||||||||||||||||||||||
Notes to the financial statements | Santander UK plc |
Half year to | Half year to(1) | |||||||
30 June 2021 | 30 June 2020 | |||||||
£m | £m | |||||||
Staff costs | ||||||||
Other administration expenses | ||||||||
Depreciation, amortisation and impairment | ||||||||
Total |
Half year to | Half year to(1) | |||||||
30 June 2021 | 30 June 2020 | |||||||
£m | £m | |||||||
Credit impairment loss/(release): | ||||||||
Loans and advances to customers | ( | |||||||
Recoveries of loans and advances, net of collection costs | ( | ( | ||||||
Off-balance sheet exposures (See Note 24) | ( | ( | ||||||
( | ||||||||
Provisions for other liabilities and charges (excluding off-balance sheet credit exposures) (See Note 24) | ||||||||
Provisions for residual value and voluntary termination | ( | |||||||
Half year to | Half year to(1) | ||||||||||
30 June 2021 | 30 June 2020 | ||||||||||
£m | £m | ||||||||||
Profit from continuing operations before tax | |||||||||||
Tax calculated at a tax rate of 19% (H120: 19%) | |||||||||||
Bank surcharge on profits | |||||||||||
Non-deductible preference dividends paid | |||||||||||
Non-deductible UK Bank Levy | |||||||||||
Other non-deductible costs and non-taxable income | |||||||||||
Effect of change in tax rate on deferred tax provision | |||||||||||
Tax relief on dividends in respect of other equity instruments | ( | ( | |||||||||
Adjustment to prior year provisions | ( | ||||||||||
Tax on profit from continuing operations | |||||||||||
2021 Half Yearly Financial Report | Financial statements | ||||||||
30 June 2021 | 31 December 2020 | ||||||||||||||||||||||
Fair value | Fair value | ||||||||||||||||||||||
Notional amount | Assets | Liabilities | Notional amount | Assets | Liabilities | ||||||||||||||||||
£m | £m | £m | £m | £m | £m | ||||||||||||||||||
Derivatives held for trading: | |||||||||||||||||||||||
Exchange rate contracts | |||||||||||||||||||||||
Interest rate contracts | |||||||||||||||||||||||
Equity and credit contracts | |||||||||||||||||||||||
Total derivatives held for trading | |||||||||||||||||||||||
Derivatives held for hedging | |||||||||||||||||||||||
Designated as fair value hedges: | |||||||||||||||||||||||
Exchange rate contracts | |||||||||||||||||||||||
Interest rate contracts | |||||||||||||||||||||||
Designated as cash flow hedges: | |||||||||||||||||||||||
Exchange rate contracts | |||||||||||||||||||||||
Interest rate contracts | |||||||||||||||||||||||
Total derivatives held for hedging | |||||||||||||||||||||||
Derivative netting(1) | ( | ( | ( | ( | |||||||||||||||||||
Total derivatives |
30 June 2021 | 31 December 2020 | |||||||
£m | £m | |||||||
Loans and advances to customers: | ||||||||
Loans to housing associations | ||||||||
Other loans | ||||||||
Debt securities | ||||||||
30 June 2021 | 31 December 2020 | |||||||
£m | £m | |||||||
Loans and advances to customers | ||||||||
Credit impairment loss allowances on loans and advances to customers | ( | ( | ||||||
RV and voluntary termination provisions on finance leases | ( | ( | ||||||
Net loans and advances to customers |
Strategic report | Financial review | Risk review | Financial statements | Shareholder information | ||||||||||||||||||||||
Notes to the financial statements | Santander UK plc |
30 June 2021 | 31 December 2020 | |||||||
£m | £m | |||||||
Mortgage-backed master trust structures: | ||||||||
–Holmes | ||||||||
–Fosse | ||||||||
–Langton | ||||||||
Other asset-backed securitisation structures: | ||||||||
–Motor | ||||||||
–Auto ABS UK Loans | ||||||||
Total securitisation programmes | ||||||||
Covered bond programmes | ||||||||
–Euro | ||||||||
Total securitisation and covered bond programmes | ||||||||
Internal issuances | External issuances | Internal redemptions | External redemptions | ||||||||||||||||||||||||||||||||
H121 | H120 | H121 | H120 | H121 | H120 | H121 | H120 | ||||||||||||||||||||||||||||
£bn | £bn | £bn | £bn | £bn | £bn | £bn | £bn | ||||||||||||||||||||||||||||
Mortgage-backed master trust structures: | |||||||||||||||||||||||||||||||||||
–Holmes | |||||||||||||||||||||||||||||||||||
–Langton | |||||||||||||||||||||||||||||||||||
Other asset-backed securitisation structures: | |||||||||||||||||||||||||||||||||||
–Motor | |||||||||||||||||||||||||||||||||||
–Auto ABS UK Loans | |||||||||||||||||||||||||||||||||||
Covered bond programme | |||||||||||||||||||||||||||||||||||
30 June 2021 | 31 December 2020 | |||||||
£m | £m | |||||||
Agreements with banks | ||||||||
Agreements with customers | ||||||||
2021 Half Yearly Financial Report | Financial statements | ||||||||
30 June 2021 | 31 December 2020 | |||||||
£m | £m | |||||||
Asset backed securities | ||||||||
Debt securities | ||||||||
30 June 2021 | 31 December 2020 | |||||||
£m | £m | |||||||
Debt securities | ||||||||
Loans and advances to customers | ||||||||
Goodwill | Discount rate | Growth rate beyond initial cash flow projections | ||||||||||||||||||||||||
30 June 2021 | 31 December 2020 | 30 June 2021 | 31 December 2020 | 30 June 2021 | 31 December 2020 | |||||||||||||||||||||
CGU | £m | £m | % | % | % | % | ||||||||||||||||||||
Personal financial services | ||||||||||||||||||||||||||
Private banking | ||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||
Strategic report | Financial review | Risk review | Financial statements | Shareholder information | ||||||||||||||||||||||
Notes to the financial statements | Santander UK plc |
Property | Office fixtures and equipment | Computer software | Operating lease assets | Right-of-use assets | Total(2) | |||||||||||||||
£m | £m | £m | £m | £m | £m | |||||||||||||||
Cost: | ||||||||||||||||||||
At 1 January 2021 | ||||||||||||||||||||
Additions | ||||||||||||||||||||
Disposals | ( | ( | ( | ( | ( | |||||||||||||||
At 30 June 2021 | ||||||||||||||||||||
Accumulated depreciation: | ||||||||||||||||||||
At 1 January 2021 | ||||||||||||||||||||
Charge for the period(1) | ||||||||||||||||||||
Impairment during the period | ||||||||||||||||||||
Disposals | ( | ( | ( | ( | ( | |||||||||||||||
At 30 June 2021 | ||||||||||||||||||||
Net book value | ||||||||||||||||||||
Cost: | ||||||||||||||||||||
At 1 January 2020 | ||||||||||||||||||||
Additions | ||||||||||||||||||||
Disposals | ( | ( | ( | ( | ( | ( | ||||||||||||||
At 31 December 2020 | ||||||||||||||||||||
Accumulated depreciation: | ||||||||||||||||||||
At 1 January 2020 | ||||||||||||||||||||
Charge for the year(1) | ||||||||||||||||||||
Impairment during the year | ||||||||||||||||||||
Disposals | ( | ( | ( | ( | ||||||||||||||||
At 31 December 2020 | ||||||||||||||||||||
Net book value |
30 June 2021 | 31 December 2020 | |||||||
£m | £m | |||||||
US$ | ||||||||
Structured Notes Programmes | ||||||||
Eurobonds | ||||||||
Structured deposits | ||||||||
Collateral and associated financial guarantees | ||||||||
30 June 2021 | 31 December 2020 | |||||||
£m | £m | |||||||
Demand and time deposits(1) | ||||||||
Amounts due to other Santander UK Group Holdings plc subsidiaries | ||||||||
Amounts due to Santander UK Group Holdings plc(2) | ||||||||
Amounts due to fellow Banco Santander subsidiaries and joint ventures | ||||||||
2021 Half Yearly Financial Report | Financial statements | ||||||||
30 June 2021 | 31 December 2020 | |||||||
£m | £m | |||||||
Items in the course of transmission | ||||||||
Deposits held as collateral | ||||||||
Other deposits(1) | ||||||||
Amounts due to Santander UK subsidiaries | ||||||||
30 June 2021 | 31 December 2020 | |||||||
£m | £m | |||||||
Agreements with banks | ||||||||
Agreements with customers | ||||||||
30 June 2021 | 31 December 2020 | |||||||
£m | £m | |||||||
Medium-term notes | ||||||||
Euro | ||||||||
US$ | ||||||||
Certificates of deposit | ||||||||
Credit linked notes | ||||||||
Securitisation programmes | ||||||||
30 June 2021 | 31 December 2020 | |||||||
£m | £m | |||||||
Conduct remediation | |||||||||||||||||||||||
PPI | Other products | Bank Levy | Property | Off balance sheet ECL | Regulatory and other | Total | |||||||||||||||||
£m | £m | £m | £m | £m | £m | £m | |||||||||||||||||
At 1 January 2021 | |||||||||||||||||||||||
Additional provisions (See Note 5) | |||||||||||||||||||||||
Provisions released (See Note 5) | ( | ( | |||||||||||||||||||||
Utilisation and other | ( | ( | ( | ( | ( | ||||||||||||||||||
At 30 June 2021 | |||||||||||||||||||||||
Strategic report | Financial review | Risk review | Financial statements | Shareholder information | ||||||||||||||||||||||
Notes to the financial statements | Santander UK plc |
30 June 2021 | 31 December 2020 | |||||||
£m | £m | |||||||
Assets/(liabilities) | ||||||||
Funded defined benefit pension scheme - surplus | ||||||||
Funded defined benefit pension scheme - deficit | ( | ( | ||||||
Unfunded pension and post retirement medical benefits | ( | ( | ||||||
Total net assets |
30 June 2021 | 30 June 2020 | |||||||
£m | £m | |||||||
Return on plan assets (excluding amounts included in net interest expense) | ( | |||||||
Actuarial losses arising from changes in demographic assumptions | ||||||||
Actuarial gains arising from experience adjustments | ( | ( | ||||||
Actuarial (gains)/losses arising from changes in financial assumptions | ( | |||||||
Pension remeasurement | ( |
30 June 2021 | 31 December 2020 | |||||||
£m | £m | |||||||
Present value of defined benefit obligations | ( | ( | ||||||
Fair value of scheme assets | ||||||||
Net defined benefit assets |
2021 Half Yearly Financial Report | Financial statements | ||||||||
30 June 2021 | 31 December 2020 | |||||||
% | % | |||||||
To determine benefit obligations: | ||||||||
–Discount rate for scheme liabilities | ||||||||
–General price inflation | ||||||||
–General salary increase | ||||||||
–Expected rate of pension increase |
Years | Years | |||||||
Longevity at 60 for current pensioners, on the valuation date: | ||||||||
–Males | ||||||||
–Females | ||||||||
Longevity at 60 for future pensioners currently aged 40, on the valuation date: | ||||||||
–Males | ||||||||
–Females |
(Decrease)/increase | |||||||||||
30 June 2021 | 31 December 2020 | ||||||||||
Assumption | Change in pension obligation at period end from | £m | £m | ||||||||
Discount rate | ( | ( | |||||||||
General price inflation(1) | |||||||||||
Mortality |
30 June 2021 | 31 December 2020 | |||||||
£m | £m | |||||||
Guarantees given to third parties | ||||||||
Formal standby facilities, credit lines and other commitments | ||||||||
Strategic report | Financial review | Risk review | Financial statements | Shareholder information | ||||||||||||||||||||||
Notes to the financial statements | Santander UK plc |
2021 Half Yearly Financial Report | Financial statements | ||||||||
Interest rate | 30 June 2021 | 31 December 2020 | ||||||||||||
% | Next call date | £m | £m | |||||||||||
£ | ||||||||||||||
AT1 securities: | ||||||||||||||
- £ | ||||||||||||||
- £ | ||||||||||||||
- £ | n/a | |||||||||||||
- £ | ||||||||||||||
- £ | ||||||||||||||
30 June 2021 | 31 December 2020 | |||||||
£m | £m | |||||||
PSA Finance UK Limited | ||||||||
Strategic report | Financial review | Risk review | Financial statements | Shareholder information | ||||||||||||||||||||||
Notes to the financial statements | Santander UK plc |
30 June 2021 | 31 December 2020 | ||||||||||||||||
Carrying | Carrying | ||||||||||||||||
Fair value | value | Fair value | value | ||||||||||||||
£m | £m | £m | £m | ||||||||||||||
Assets | |||||||||||||||||
Loans and advances to customers | |||||||||||||||||
Loans and advances to banks | |||||||||||||||||
Reverse repurchase agreements - non trading | |||||||||||||||||
Other financial assets at amortised cost | |||||||||||||||||
Assets held for sale(1) | |||||||||||||||||
Liabilities | |||||||||||||||||
Deposits by customers | |||||||||||||||||
Deposits by banks | |||||||||||||||||
Repurchase agreements - non trading | |||||||||||||||||
Debt securities in issue | |||||||||||||||||
Subordinated liabilities | |||||||||||||||||
Liabilities held for sale(1) | |||||||||||||||||
2021 Half Yearly Financial Report | Financial statements | ||||||||
30 June 2021 | 31 December 2020 | ||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | Valuation | |||||||||||||||||||||||||||
£m | £m | £m | £m | £m | £m | £m | £m | technique | |||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||
Derivative financial instruments | Exchange rate contracts | ||||||||||||||||||||||||||||||||||
Interest rate contracts | |||||||||||||||||||||||||||||||||||
Equity and credit contracts | |||||||||||||||||||||||||||||||||||
Netting | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Other financial assets at FVTPL | Loans and advances to customers | ||||||||||||||||||||||||||||||||||
Debt securities | |||||||||||||||||||||||||||||||||||
Financial assets at FVOCI | Debt securities | ||||||||||||||||||||||||||||||||||
Loans and advances to customers | |||||||||||||||||||||||||||||||||||
Assets held for sale(1) | |||||||||||||||||||||||||||||||||||
Total assets at fair value | |||||||||||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||||
Derivative financial instruments | Exchange rate contracts | ||||||||||||||||||||||||||||||||||
Interest rate contracts | |||||||||||||||||||||||||||||||||||
Equity and credit contracts | |||||||||||||||||||||||||||||||||||
Netting | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Other financial liabilities at FVTPL | Debt securities in issue | ||||||||||||||||||||||||||||||||||
Structured deposits | |||||||||||||||||||||||||||||||||||
Collateral and associated financial guarantees | |||||||||||||||||||||||||||||||||||
Liabilities held for sale(1) | |||||||||||||||||||||||||||||||||||
Total liabilities at fair value |
30 June 2021 | 31 December 2020 | |||||||
£m | £m | |||||||
Risk-related: | ||||||||
- Bid-offer and trade specific adjustments | ( | ( | ||||||
- Uncertainty | ||||||||
- Credit risk adjustment | ||||||||
- Funding fair value adjustment | ||||||||
Strategic report | Financial review | Risk review | Financial statements | Shareholder information | ||||||||||||||||||||||
Notes to the financial statements | Santander UK plc |
Assets | Liabilities | |||||||||||||||||||||||||||||||
Derivatives | Other financial assets at FVTPL | Financial assets at FVOCI | Assets held for sale | Total | Derivatives | Other financial liabilities at FVTPL | Liabilities held for sale | Total | ||||||||||||||||||||||||
£m | £m | £m | £m | £m | £m | £m | £m | £m | ||||||||||||||||||||||||
At 1 January 2021 | ( | ( | ( | |||||||||||||||||||||||||||||
Total (losses)/gains recognised: | ||||||||||||||||||||||||||||||||
- Fair value movements | ( | ( | ( | ( | ||||||||||||||||||||||||||||
Transfers to held for sale | ( | ( | ( | |||||||||||||||||||||||||||||
Netting(1) | ||||||||||||||||||||||||||||||||
Settlements | ( | ( | ( | |||||||||||||||||||||||||||||
At 30 June 2021 | ( | ( | ( | |||||||||||||||||||||||||||||
Gains/(losses) recognised in profit or loss/other comprehensive income relating to assets and liabilities held at the end of the period | ( | ( | ( | ( | ||||||||||||||||||||||||||||
At 1 January 2020 | ( | ( | ( | |||||||||||||||||||||||||||||
Total gains/(losses) recognised: | ||||||||||||||||||||||||||||||||
- Fair value movements | ( | ( | ||||||||||||||||||||||||||||||
- Foreign exchange and other movements | ( | ( | ||||||||||||||||||||||||||||||
Transfers out | ||||||||||||||||||||||||||||||||
Netting(1) | ( | ( | ||||||||||||||||||||||||||||||
Additions | ( | ( | ||||||||||||||||||||||||||||||
Sales | ( | ( | ( | |||||||||||||||||||||||||||||
Settlements | ( | ( | ( | ( | ||||||||||||||||||||||||||||
At 30 June 2020 | ( | ( | ( | |||||||||||||||||||||||||||||
Gains/(losses) recognised in profit or loss/other comprehensive income relating to assets and liabilities held at the end of the period | ( | ( |
30 June 2021 | ||||||||||||||
GBP(2) LIBOR | USD(2) LIBOR | Other(2) | Total | |||||||||||
£m | £m | £m | £m | |||||||||||
Assets | ||||||||||||||
Derivatives(1) | ||||||||||||||
Other financial assets at fair value through profit and loss | ||||||||||||||
Financial assets at amortised cost | ||||||||||||||
Financial assets at fair value through comprehensive income | ||||||||||||||
Assets held for sale | ||||||||||||||
Liabilities | ||||||||||||||
Derivatives(1) | ||||||||||||||
Other financial liabilities at fair value through profit and loss | ||||||||||||||
Financial liabilities at amortised cost | ||||||||||||||
Liabilities held for sale | ||||||||||||||
Off-balance sheet commitments given |
2021 Half Yearly Financial Report | Financial statements | ||||||||
31 December 2020 | ||||||||||||||
Assets | ||||||||||||||
Derivatives(1) | ||||||||||||||
Other financial assets at fair value through profit and loss | ||||||||||||||
Financial assets at amortised cost | ||||||||||||||
Financial assets at fair value through comprehensive income | ||||||||||||||
Liabilities | ||||||||||||||
Derivatives(1) | ||||||||||||||
Other financial liabilities at fair value through profit and loss | ||||||||||||||
Financial liabilities at amortised cost | ||||||||||||||
Off-balance sheet commitments given |
30 June 2021 | 31 December 2020 | ||||||||||||||||||||||||||||
GBP LIBOR | USD LIBOR | Other | Total | GBP LIBOR | USD LIBOR | Other | Total | ||||||||||||||||||||||
£m | £m | £m | £m | £m | £m | £m | £m | ||||||||||||||||||||||
Total notional value of hedging instruments: | |||||||||||||||||||||||||||||
–Cash flow hedges | |||||||||||||||||||||||||||||
–Fair value hedges | |||||||||||||||||||||||||||||
Maturing after cessation date(1) | |||||||||||||||||||||||||||||
–Cash flow hedges | |||||||||||||||||||||||||||||
–Fair value hedges | |||||||||||||||||||||||||||||
Half year to | Half year to | |||||||
30 June 2021 | 30 June 2020 | |||||||
£m | £m | |||||||
Net interest income | ||||||||
Net fee and commission income | ||||||||
Total operating income | ||||||||
Operating expenses before credit impairment losses, provisions and charges | ( | ( | ||||||
Credit impairment losses | ( | |||||||
Provisions for other liabilities and charges | ( | ( | ||||||
Total operating credit impairment losses, provisions and charges | ( | |||||||
Profit/(loss) from discontinued operations before tax | ( | |||||||
Tax on profit/(loss) from discontinued operations | ( | |||||||
Profit/(loss) from discontinued operations after tax | ( | |||||||
Strategic report | Financial review | Risk review | Financial statements | Shareholder information | ||||||||||||||||||||||
Notes to the financial statements | Santander UK plc |
Net assets/liabilities held for sale | |||||||||||
CIB business transfer to SLB | Sale of residential mortgages | Total | |||||||||
£m | £m | £m | |||||||||
Assets | |||||||||||
Derivative financial instruments | |||||||||||
Other financial assets at fair value through profit or loss | |||||||||||
Loans and advances to customers | |||||||||||
Total assets held for sale | |||||||||||
Liabilities | |||||||||||
Derivative financial instruments | |||||||||||
Other financial liabilities at fair value through profit or loss | |||||||||||
Deposits by customers | |||||||||||
Deposits by banks | |||||||||||
Total liabilities held for sale | |||||||||||
Shareholder information | |||||||||||
Contents | |||||||||||
Forward looking statements | 79 | ||||||||||
Risk factors | 80 |
Strategic Report | Financial review | Governance | Risk review | Financial statements | Shareholder information | |||||||||||||||||||||||||||
By: | /s/ Nathan Bostock | |||||||
Nathan Bostock | ||||||||
Chief Executive Officer |
Cover Page |
6 Months Ended |
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Jun. 30, 2021 | |
Cover [Abstract] | |
Document Type | 6-K |
Amendment Flag | false |
Document Period End Date | Jun. 30, 2021 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | Q2 |
Entity Registrant Name | Santander UK plc |
Entity Central Index Key | 0001087711 |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Statement of Comprehensive Income - GBP (£) £ in Millions |
6 Months Ended | ||||
---|---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
||||
Statement of comprehensive income [abstract] | |||||
Profit after tax | £ 562 | £ 139 | [1] | ||
Movement in fair value reserve (debt instruments): | |||||
Change in fair value | (62) | 146 | |||
Income statement transfers | 59 | (166) | |||
Taxation | (1) | 5 | |||
Other comprehensive income, fair value reserve (debt instruments) | (4) | (15) | |||
Cash flow hedges: | |||||
Effective portion of changes in fair value | (618) | 2,607 | |||
Income statement transfers | 377 | (2,041) | |||
Taxation | 41 | (161) | |||
Other comprehensive income, cash flow hedges, total | (200) | 405 | |||
Currency translation on foreign operations | 0 | (1) | |||
Net other comprehensive income/(expense) that may be reclassified to profit or loss subsequently | (204) | 389 | |||
Pension remeasurement: | |||||
Change in fair value | 745 | (376) | |||
Taxation | (248) | 97 | |||
Pension remeasurement, total | 497 | (279) | |||
Own credit adjustment: | |||||
Change in fair value | 0 | 20 | |||
Taxation | 0 | (5) | |||
Own credit adjustment, total | 0 | 15 | |||
Net other comprehensive income/(expense) that will not be reclassified to profit or loss subsequently | 497 | (264) | |||
Total other comprehensive income net of tax | 293 | 125 | |||
Total comprehensive income | 855 | 264 | |||
Attributable to: | |||||
Equity holders of the parent | 837 | 254 | |||
Non-controlling interests | 18 | 10 | |||
Total comprehensive income | £ 855 | £ 264 | |||
|
Condensed Consolidated Balance Sheet - GBP (£) £ in Millions |
Jun. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Assets | ||
Cash and balances at central banks | £ 39,021 | £ 41,250 |
Financial assets at fair value through profit or loss: | ||
Derivative financial instruments | 2,002 | 3,406 |
Other financial assets at fair value through profit or loss | 179 | 208 |
Financial assets at amortised cost: | ||
Loans and advances to customers | 207,998 | 208,750 |
Loans and advances to banks | 1,312 | 1,682 |
Reverse repurchase agreements – non trading | 18,197 | 19,599 |
Other financial assets at amortised cost | 530 | 1,163 |
Financial assets at fair value through other comprehensive income | 6,368 | 8,950 |
Interests in other entities | 183 | 172 |
Intangible assets | 1,589 | 1,646 |
Property, plant and equipment | 1,596 | 1,734 |
Current tax assets | 282 | 264 |
Retirement benefit assets | 1,083 | 495 |
Other assets | 2,629 | 3,013 |
Assets held for sale | 2,645 | 0 |
Total assets | 285,614 | 292,332 |
Financial liabilities at fair value through profit or loss: | ||
Derivative financial instruments | 1,063 | 1,584 |
Other financial liabilities at fair value through profit or loss | 1,023 | 1,434 |
Financial liabilities at amortised cost: | ||
Deposits by customers | 193,317 | 195,135 |
Deposits by banks | 20,502 | 20,958 |
Repurchase agreements – non trading | 14,089 | 15,848 |
Debt securities in issue | 29,140 | 35,566 |
Subordinated liabilities | 2,513 | 2,556 |
Other liabilities | 2,365 | 2,337 |
Provisions | 444 | 464 |
Deferred tax liabilities | 386 | 111 |
Retirement benefit obligations | 152 | 403 |
Liabilities held for sale | 3,912 | 0 |
Total liabilities | 268,906 | 276,396 |
Equity | ||
Share capital | 3,105 | 3,105 |
Share premium | 5,620 | 5,620 |
Other equity instruments | 2,191 | 2,191 |
Retained earnings | 5,306 | 4,348 |
Other reserves | 306 | 510 |
Total shareholders’ equity | 16,528 | 15,774 |
Non-controlling interests | 180 | 162 |
Total equity | 16,708 | 15,936 |
Total liabilities and equity | £ 285,614 | £ 292,332 |
Condensed Consolidated Cash Flow Statement - GBP (£) £ in Millions |
6 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
||||||
Cash flows from operating activities | |||||||
Profit after tax | £ 562 | £ 139 | [1] | ||||
Adjustments for: | |||||||
Non-cash items included in profit | 645 | 778 | |||||
Change in operating assets | 251 | (4,172) | |||||
Change in operating liabilities | [2] | 2,725 | 10,697 | ||||
Corporation taxes paid | (153) | (110) | |||||
Effects of exchange rate differences | (534) | 891 | |||||
Net cash flows from operating activities | 3,496 | 8,223 | |||||
Cash flows from investing activities | |||||||
Purchase of property, plant and equipment and intangible assets | (350) | (151) | |||||
Proceeds from sale of property, plant and equipment and intangible assets | 272 | 92 | |||||
Purchase of financial assets at amortised cost and financial assets at fair value through other comprehensive income | (1,016) | (2,626) | |||||
Proceeds from sale and redemption of financial assets at amortised cost and financial assets at fair value through other comprehensive income | 3,789 | 2,581 | |||||
Net cash flows from investing activities | 2,695 | (104) | |||||
Cash flows from financing activities | |||||||
Issue of other equity instruments | 210 | 0 | |||||
Issue of debt securities and subordinated notes | 36 | 4,097 | |||||
Issuance costs of debt securities and subordinated notes | (3) | (10) | |||||
Repayment of debt securities and subordinated notes | (8,031) | (6,133) | |||||
Repurchase of other equity instruments | (210) | 0 | |||||
Dividends paid on preference shares and other equity instruments | (83) | (82) | |||||
Principal elements of lease payments | [2] | (13) | (28) | ||||
Net cash flows from financing activities | (8,094) | (2,156) | |||||
Change in cash and cash equivalents | (1,903) | 5,963 | |||||
Cash and cash equivalents at beginning of the period | 45,582 | 27,817 | |||||
Effects of exchange rate changes on cash and cash equivalents | (10) | 94 | |||||
Cash and cash equivalents at the end of the period | 43,669 | 33,874 | |||||
Cash and cash equivalents consist of: | |||||||
Cash and balances at central banks | 39,021 | 30,276 | |||||
Less: regulatory minimum cash balances | (897) | (772) | |||||
Cash and bank balances at central banks less regulatory minimum cash balances | 38,124 | 29,504 | |||||
Other cash equivalents | 5,545 | 4,370 | |||||
Cash and cash equivalents at the end of the period | £ 43,669 | £ 33,874 | |||||
|
Condensed Consolidated Cash Flow Statement (Parenthetical) £ in Millions |
6 Months Ended | |||
---|---|---|---|---|
Jun. 30, 2020
GBP (£)
| ||||
Statement [Line Items] | ||||
Principal elements of lease payments | £ 28 | [1] | ||
Change in operating liabilities | 10,697 | [1] | ||
Change in operating liabilities | ||||
Statement [Line Items] | ||||
Change in operating liabilities | £ 28 | |||
|
Condensed Consolidated Statement of Changes in Equity - GBP (£) £ in Millions |
Total |
Total |
Share capital |
Share premium |
Other equity instruments |
Fair value |
Cash flow hedging |
Currency translation |
Retained earnings |
Non-controlling interests |
|||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Beginning balance at Dec. 31, 2019 | £ 16,017 | £ 15,857 | £ 3,105 | £ 5,620 | £ 2,191 | £ 23 | £ 371 | £ 1 | £ 4,546 | £ 160 | |||
Profit after tax | 139 | [1] | 128 | 128 | 11 | ||||||||
Other comprehensive income, net of tax: | |||||||||||||
Fair value reserve (debt instruments) | (15) | (15) | (15) | ||||||||||
Cash flow hedges | 405 | 405 | 405 | ||||||||||
Pension remeasurement | (279) | (278) | (278) | (1) | |||||||||
Own credit adjustment | 15 | 15 | 15 | ||||||||||
Currency translation on foreign operations | (1) | (1) | (1) | ||||||||||
Total comprehensive income | 264 | 254 | (15) | 405 | (1) | (135) | 10 | ||||||
Dividends on preference shares and other equity instruments | (82) | (82) | (82) | ||||||||||
Ending balance at Jun. 30, 2020 | 16,199 | 16,029 | 3,105 | 5,620 | 2,191 | 8 | 776 | 0 | 4,329 | 170 | |||
Beginning balance at Dec. 31, 2020 | 15,936 | 15,774 | 3,105 | 5,620 | 2,191 | 28 | 481 | 1 | 4,348 | 162 | |||
Profit after tax | 562 | 545 | 545 | 17 | |||||||||
Other comprehensive income, net of tax: | |||||||||||||
Fair value reserve (debt instruments) | (4) | (4) | (4) | ||||||||||
Cash flow hedges | (200) | (200) | (200) | ||||||||||
Pension remeasurement | 497 | 496 | 496 | 1 | |||||||||
Own credit adjustment | 0 | ||||||||||||
Total comprehensive income | 855 | 837 | (4) | (200) | 0 | 1,041 | 18 | ||||||
Issue of other equity instruments | 210 | 210 | 210 | ||||||||||
Repurchase of other equity instruments | (210) | (210) | (210) | ||||||||||
Dividends on preference shares and other equity instruments | (83) | (83) | (83) | ||||||||||
Ending balance at Jun. 30, 2021 | £ 16,708 | £ 16,528 | £ 3,105 | £ 5,620 | £ 2,191 | £ 24 | £ 281 | £ 1 | £ 5,306 | £ 180 | |||
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Accounting Policies |
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Disclosure Of Significant Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies | 1. ACCOUNTING POLICIES The financial information in these Condensed Consolidated Interim Financial Statements is unaudited and does not constitute statutory accounts as defined in section 434 of the UK Companies Act 2006. Statutory accounts for the year ended 31 December 2020 have been delivered to the Registrar of Companies. The Condensed Consolidated Interim Financial Statements reflect all adjustments that, in the opinion of management, are necessary for a fair statement of the results of operations for the interim period. All such adjustments to the financial information are of a normal, recurring nature. Because the results from common banking activities are so closely related and responsive to changes in market conditions, the results for any interim period are not necessarily indicative of the results that can be expected for the year. On 31 December 2020, International Financial Reporting Standards (IFRSs) as adopted by the European Union at that date was brought into UK law and became UK-adopted International Accounting Standards (IAS), with future changes being subject to endorsement by the UK Endorsement Board. Santander UK plc (the Company) and its subsidiaries (collectively Santander UK or the Santander UK group) transitioned to UK-adopted International Accounting Standards in its consolidated financial statements on 1 January 2021. This change constitutes a change in accounting framework. However, there is no impact on recognition, measurement or disclosure in the period reported as a result of the change in framework. The Condensed Consolidated Interim Financial Statements have been prepared in accordance with UK adopted IAS 34 ‘Interim Financial Reporting', IAS 34 ‘Interim Financial Reporting’ as issued by the International Accounting Standards Board (IASB), IAS 34 ‘Interim Financial Reporting’ as adopted by the EU, and the Disclosure Guidance and Transparency Rules sourcebook of the UK's Financial Conduct Authority (FCA). They do not include all the information and disclosures normally required for full annual financial statements and should be read in conjunction with the Consolidated Financial Statements of Santander UK for the year ended 31 December 2020 which were prepared in accordance with international accounting standards in conformity with the requirements of the Companies Act 2006 and IFRSs adopted pursuant to Regulation (EC) No 1606/2002 as it applies in the European Union. Those consolidated financial statements were also prepared in accordance with IFRSs as issued by the IASB, including interpretations issued by the IFRS Interpretations Committee, as there were no applicable differences from IFRSs as issued by the IASB for the periods presented. At 30 June 2021, there were no differences between IFRSs adopted by the UK, IFRSs issued by the IASB, and IFRSs adopted by the EU in terms of their application to Santander UK. The financial statements for Santander UK for the year ended 31 December 2021 will be prepared in accordance with IFRS as adopted by the UK, IFRSs as issued by the IASB, including interpretations issued by the IFRS Interpretations Committee, and IFRSs as adopted by the EU. Except as noted below, the same accounting policies, presentation and methods of computation are followed in these Condensed Consolidated Interim Financial Statements as were applied in the presentation of Santander UK’s 2020 Annual Report. Non-current assets held for sale Non-current assets (or disposal groups) are classified as held for sale when their carrying amount is to be recovered principally through a sale transaction rather than continuing use. In order to be classified as held for sale, the asset must be available for immediate sale in its present condition subject only to terms that are usual and customary and the sale must be highly probable. Non-current assets (or disposal groups) held for sale are measured at the lower of carrying amount and fair value less cost to sell, with the exception of financial instruments which remain governed by the requirements of IFRS 9, and are held at their IFRS 9 carrying value. For details of the disposal of assets and liabilities in connection with the transfer of the Corporate & Investment Banking (CIB) business to the London Branch of Banco Santander SA (SLB), and for details on the sale of Retail Banking residential mortgage assets, see Note 33. Discontinued operations A discontinued operation is a component of the Santander UK group that has been disposed of or is classified as held for sale and that represents a separate major line of business or geographical area of operations, is part of a single co-ordinated plan to dispose of such a line of business or area of operations, or is a subsidiary acquired exclusively with a view to resale. The results of discontinued operations are presented separately in the Condensed Consolidated Income Statement. Prior periods have been restated accordingly. Future accounting developments At 30 June 2021, for the Santander UK group, there were no significant new or revised standards and interpretations, and amendments thereto, which have been issued, including those which are not yet effective or which have otherwise not been early adopted where permitted. Going concern In light of the continuing economic uncertainty, the Directors updated their going concern assessment in preparing these Condensed Consolidated Interim Financial Statements. After making enquiries, the Directors have a reasonable expectation that Santander UK has adequate resources to continue in operational existence for at least twelve months from the date of this report and, therefore, having reassessed the principal risks and uncertainties, the Directors consider it appropriate for the Condensed Consolidated Interim Financial Statements to be prepared on a going concern basis. In making their going concern assessment in connection with preparing the Condensed Consolidated Interim Financial Statements, the Directors considered a wide range of information that included Santander UK’s long-term business and strategic plans, forecasts and projections, estimated capital, funding and liquidity requirements, contingent liabilities and the reasonably possible changes in trading performance arising from potential economic, market and product developments. The Directors' assessment specifically considered the impacts of Covid-19, including for the following areas: –Economic scenarios and probability weights: These underpin our ECL impairment allowances and are discussed in detail in the Credit risk section of the Risk review. The Directors reviewed the economic scenarios to ensure that they captured the wide range of potential outcomes for the UK economy. Whereas the outlook for 2021 is more positive following the success of the vaccination programme and cautious optimism that the worst of the health crisis has passed, the downside scenarios continue to encapsulate different potential outcomes including higher-for-longer unemployment, and emergence of Covid-19 variants that are more resistant to existing vaccines leading to further lockdowns and a slower recovery that is more akin to the ‘U’ shape of past recessions. –Liquidity: Santander UK remains in a strong liquidity position and Covid-19 did not trigger a liquidity stress. –Capital: Santander UK remains strongly capitalised and Covid-19 did not trigger a capital stress. –Customers: Santander UK has supported many thousands of individuals and businesses affected by Covid-19 with a range of measures, including payment holidays on mortgages, personal loans and credit cards as well as taking an active part in UK Government loan schemes to help businesses. The majority of customers who took payment holidays have resumed payments. We continue to work with those customers who remain affected to understand their individual situations and, where necessary, help them resume payments. –Operations: All our operations continue to operate effectively with a significant majority of staff working from home and the majority of branches remaining open and returning to more normal hours. The current operating model could be sustained indefinitely with additional resilience being continuously implemented and is not affecting our ability to operate all our services, or raising concerns about our Business Continuity Planning, and –Key suppliers: Suppliers continue to be closely monitored in line with our Third Party Risk Management Framework. No significant service issues have been reported across our cohort of critical suppliers, and no material issues have been reported across our broader (non-critical) supply chain. Isolated supplier impacts have been seen, but these are being managed. CRITICAL JUDGEMENTS AND ACCOUNTING ESTIMATES The preparation of the Condensed Consolidated Interim Financial Statements requires management to make judgements and accounting estimates that affect the reported amount of assets and liabilities at the date of the Condensed Consolidated Interim Financial Statements and the reported amount of income and expenses during the reporting period. Management evaluates its judgements and accounting estimates, which are based on historical experience and on various other factors that are believed to be reasonable under the circumstances, on an ongoing basis. Actual results may differ from these accounting estimates under different assumptions or conditions. In the course of preparing the Condensed Consolidated Interim Financial Statements, no significant judgements have been made in the process of applying the accounting policies, other than those involving estimations about credit impairment losses, provisions and contingent liabilities, pensions and goodwill. There have been no significant changes in the basis upon which judgements and accounting estimates have been determined compared to that applied in the 2020 Annual Report, except as described below. Management have considered the impact of Covid-19 on critical judgements and accounting estimates.a) Credit impairment losses
For more on each of these key judgements and estimates, including the impact of Covid-19 on them, see 'Management judgements and estimates applied in calculating ECL' in the ‘Credit risk – Santander UK group level – credit risk management’ section of the Risk review. Sensitivity of ECL allowance For detailed disclosures, see 'Sensitivity of ECL allowance' in the ‘Credit risk – Santander UK group level – credit risk management’ section of the Risk review. b) Provisions and contingent liabilities
Note 26 'Contingent liabilities and commitments' includes disclosure relating to an investigation in relation to the historical involvement of Santander UK plc, Santander Financial Services plc and Cater Allen International Limited (all subsidiaries of Santander UK Group Holdings plc) in German dividend tax arbitrage transactions, as well as an FCA civil regulatory investigation which commenced in July 2017 into our compliance with the Money Laundering Regulations 2007 and potential breaches of FCA principles and rules relating to anti-money laundering and financial crime systems and controls. It also includes disclosure relating to certain leases in which current and former Santander UK group members were the lessor that are currently under review by HMRC in connection with claims for tax allowances. These judgements are based on the specific facts available and often require specialist professional advice. There can be a wide range of possible outcomes and uncertainties, particularly in relation to legal actions, and regulatory and consumer credit matters. As a result, it is often not possible to make reliable estimates of the likelihood and amount of any potential outflows, or to calculate any resulting sensitivities. For more on each of these key judgements and estimates, see Notes 24 and 26. c) Pensions
For more on each of these key judgements and estimates, including the impact of Covid-19 on them, see Note 25. Sensitivity of defined benefit pension scheme estimates For detailed disclosures see ‘Actuarial assumption sensitivities’ in Note 25. d) Goodwill
For more on each of these key judgements and estimates, see Note 16. Sensitivity of goodwill For detailed disclosures, see ‘Sensitivities of key assumptions in calculating VIU’ in Note 20 to the Consolidated Financial Statements in the 2020 Annual Report.
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Disclosure of operating segments [abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segments | 2. SEGMENTS Santander UK’s principal activity is financial services, mainly in the UK. The business is managed and reported on the basis of four segments, which are strategic business units that offer different products and services, have different customers and require different technology and marketing strategies. As reflected in the 2020 Annual Report, the segmental basis of presentation in these Condensed Consolidated Interim Financial Statements changed following a management review of our structure. At 31 December 2020 this resulted in customer assets of £2.0bn and customer deposits of £3.1bn being transferred from Business Banking (in Retail Banking) to CCB, non-core corporate mortgages of £0.4bn transferring from Corporate Centre to CCB, and a number of smaller business lines transferring from CIB to Corporate Centre. For H120, this resulted in an increase in profit before tax in Retail Banking of £28m, a decrease in CCB of £31m, a decrease in CIB of £4m, and an increase of £7m in Corporate Centre. The net impact for Santander UK was nil. Proposed transfer of the CIB business to SLB Following a hearing held on 23 June 2021, the High Court of England and Wales has sanctioned the transfer of substantially all the CIB business of Santander UK to SLB by way of a Part VII banking business transfer scheme. The transfers of CIB business to SLB under the scheme are scheduled to take place before the end of 2021. Management considered the related business transfers to be highly probable at 30 June 2021. As such, the Santander UK group reclassified as held for sale the assets and liabilities relating to the CIB business. For more details, see Note 33. At 30 June 2021, the CIB business met the requirements for presentation as discontinued operations. For more details, see Note 33. Results by segment
(1)The disaggregation of fees and commission income as shown above is not included in reports provided to the chief operating decision maker but is provided to show the split by reportable segments. (2)Non-banking and other fees include mortgages (except mortgage account fees), consumer finance, commitment commission, asset finance, invoice finance and trade finance. (3)Includes customer loans, net of credit impairment loss allowances.
(1)The disaggregation of fees and commission income as shown above is not included in reports provided to the chief operating decision maker but is provided to show the split by reportable segments. (2)Non-banking and other fees include mortgages (except mortgage account fees), consumer finance, commitment commission, asset finance, invoice finance and trade finance. (3)Includes customer loans, net of credit impairment loss allowances (4)Restated, as reflected in Note 2 to the Consolidated Financial Statements in the 2020 Annual Report, following a management review of our structure. (5)Restated to reflect the presentation of discontinued operations, as set out in Note 33. Geographical information is not provided, as substantially all of Santander UK’s activities are in the UK. Sale of Retail Banking mortgage assets At 30 June 2021, Santander UK was in the process of selling a portfolio of Retail Banking residential mortgage assets and expected to complete the transaction in August 2021. Management considered the sale to be highly probable at 30 June 2021. As such, the Santander UK group reclassified as held for sale the mortgage assets. For more details, see Note 33.
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Other Operating Income |
6 Months Ended |
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Jun. 30, 2021 | |
Net Trading And Other Income [abstract] | |
Other Operating Income | 3. OTHER OPERATING INCOME In H121, the Santander UK group repurchased certain debt securities as part of ongoing liability management exercises, resulting in a loss of £27m. In H120, the Santander UK group repurchased certain debt securities and subordinated liabilities as part of ongoing liability management exercises, resulting in a loss of £17m. In H121, the Santander UK group sold its UK head office site in Triton Square, London to a wholly owned subsidiary of its parent, Banco Santander SA, given the decision to invest in a new Milton Keynes campus. Other operating income includes a £71m gain on sale of the UK head office site. The net gain reflects a sale price based on independent valuations.
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Operating Expenses Before Credit Impairment Losses, Provisions and Charges |
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Expenses by nature [abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating Expenses Before Credit Impairment Losses, Provisions and Charges | 4. OPERATING EXPENSES BEFORE CREDIT IMPAIRMENT LOSSES, PROVISIONS AND CHARGES
(1)Adjusted to reflect the presentation of discontinued operations as set out in Note 33. 'Other administration expenses' includes £10m (H120: £4m) expenses related to short-term leases.In H121, depreciation, amortisation and impairment' included an impairment charge of £105m associated with branch and head office site closures. For more, see Note 17.
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Credit Impairment Losses and Provisions |
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Disclosure Of Credit Impairment Loss And Provisions [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit Impairment Losses and Provisions | 5. CREDIT IMPAIRMENT LOSSES AND PROVISIONS
(1)Adjusted to reflect the presentation of discontinued operations as set out in Note 33. In H121 and H120 there were no material credit impairment losses on loans and advances to banks, non-trading reverse repurchase agreements, other financial assets at amortised cost and financial assets at fair value through other comprehensive income.
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Taxation |
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Major components of tax expense (income) [abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Taxation | 6. TAXATION The Santander UK group’s effective tax rate for H121 was 27.6% (H120: 25.5%). The tax on profit before tax differs from the theoretical amount that would arise using the basic corporation tax rate of the Company as follows:
(1)Adjusted to reflect the presentation of discontinued operations as set out in Note 33. The UK government announced in its budget on 3 March 2021 that it would increase the main rate of corporation tax by 6% to 25% with effect from 1 April 2023. This change was substantively enacted on 24 May 2021 and, as a result, the effect has been reflected in the closing deferred tax position included in these financial statements. The comparative 2020 results reflected an increase in tax rates by 2% following an announcement in the 2020 budget to reverse a previously planned rate reduction from April 2020.
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Dividends on Ordinary Shares |
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Jun. 30, 2021 | |
Dividends On Ordinary Shares [Abstract] | |
Dividends on Ordinary Shares | 7. DIVIDENDS ON ORDINARY SHARES No interim dividend was declared on the Company’s ordinary shares in issue (H120: £nil).
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Derivative Financial Instruments |
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Disclosure of nature and extent of risks arising from financial instruments [abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments | 8. DERIVATIVE FINANCIAL INSTRUMENTS The table below includes the notional amounts of transactions outstanding at the balance sheet date; they do not represent actual exposures.
(1) Derivative netting excludes the effect of cash collateral, which is offset against the gross derivative position. The amount of cash collateral received that had been offset against the gross derivative assets was £401m (2020: £330m) and the amount of cash collateral paid that had been offset against the gross derivative liabilities was £245m (2020: £651m). IBOR Reform Note 32 includes details of the notional value of hedging instruments by benchmark interest rate impacted by IBOR reform and the notional amounts of assets, liabilities and off-balance sheet commitments affected by IBOR reform that have yet to transition to an alternative benchmark interest rate.
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Other Financial Assets At Fair Value Through Profit Or Loss |
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Financial assets at fair value through profit or loss [abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Financial Assets At Fair Value Through Profit Or Loss | 9. OTHER FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS
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Loans and Advances to Customers |
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Net Loans And Advances To Customers [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans and Advances to Customers | 10. LOANS AND ADVANCES TO CUSTOMERS
For movements in expected credit losses, see the 'Movement in total exposures and the corresponding ECL' table in the Santander UK group level - Credit risk review section of the Risk review. The balance at 30 June 2021 excludes loans and advances to customers classified as assets held for sale. For more, see Note 33.
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Securitisations and Covered Bonds |
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Disclosure Of Securitisations And Covered Bonds [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securitisations and Covered Bonds | 11. SECURITISATIONS AND COVERED BONDS The information in this Note relates to securitisations and covered bonds for consolidated structured entities, used to obtain funding or collateral. It excludes structured entities relating to credit protection vehicles. The gross assets securitised, or for the covered bond programme assigned, at 30 June 2021 and 31 December 2020 were:
The following table sets out the internal and external issuances and redemptions in H121 and H120 for each securitisation and covered bond programme.
In H121, the remaining Langton bonds were redeemed and the associated mortgages were repurchased by Santander UK plc.
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Reverse Repurchase Agreements - Non Trading |
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Disclosure Of Reserve Repurchase Agreements Non-Trading [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reverse Repurchase Agreements - Non Trading | 12. REVERSE REPURCHASE AGREEMENTS – NON TRADING
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Other Financial Assets At Amortised Cost |
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Financial assets at fair value through profit or loss [abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Financial Assets At Amortised Cost | 13. OTHER FINANCIAL ASSETS AT AMORTISED COST
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Financial Assets At Fair Value Through Other Comprehensive Income |
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Financial Assets At Fair Value Through Other Comprehensive Income | 14. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME
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Interests in Other Entities |
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Jun. 30, 2021 | |
Investments accounted for using equity method [abstract] | |
Interests in Other Entities | 15. INTERESTS IN OTHER ENTITIES There have been no significant changes to the Santander UK group's interests in subsidiaries, associates, joint ventures and unconsolidated structured entities, as set out in Note 19 to the Consolidated Financial Statements in the 2020 Annual Report.
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Intangible Assets |
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Intangible Assets | 16. INTANGIBLE ASSETS Intangible assets comprise goodwill and computer software. Goodwill The following CGUs include in their carrying values goodwill that comprises the goodwill reported by Santander UK. The CGUs do not carry on their balance sheets any other intangible assets with indefinite useful lives. For key assumptions used in the value in use (VIU) calculation, as the basis of the recoverable amount of each CGU, see Note 20 to the Consolidated Financial Statements in the 2020 Annual Report. At 30 June 2021 a review was performed to identify any potential impairment indicators. No indicators of impairment were identified and so a full impairment test was not performed for the half year. The key assumptions are set out in the table below.
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Property, Plant and Equipment |
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Property, plant and equipment [abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment | 17. PROPERTY, PLANT AND EQUIPMENT
(1)Following a review of the estimated useful lives of property as part of Santander UK's transformation program, the charge for the period includes accelerated property depreciation of £4m (2020: £9m). (2)Property, plant and equipment includes assets under construction of £72m (2020: £55m). Property, office fixtures and equipment and right-of-use assets were impaired in the period as a result of our multi-year transformation project. The impairment relates to leasehold properties within the scope of our branch network restructuring programme and head office sites which are either closing or consolidating.
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Other Financial Liabilities at Fair Value Through Profit or Loss |
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Disclosure of financial liabilities [abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Financial Liabilities at Fair Value Through Profit or Loss | 18. OTHER FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS
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Deposits by Customers |
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Deposits from customers [abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deposits by Customers | 19. DEPOSITS BY CUSTOMERS
(1)Includes equity index-linked deposits of £578m (2020: £577m). The capital amount guaranteed/protected and the amount of return guaranteed in respect of the equity index-linked deposits were £578m and £2m (2020: £577m and £2m) respectively. (2)Includes downstreamed funding from our immediate parent company Santander UK Group Holdings plc.
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Deposits by Banks |
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Disclosure Of Deposits From Banks [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deposits by Banks | 20. DEPOSITS BY BANKS
(1)Includes drawdown from the TFS of £3.3bn (2020: £6.3bn) and drawdown from the TFSME of £15.2bn (2020: £11.7bn).
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Disclosure Of Repurchase Agreement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase Agreements - Non Trading | 21. REPURCHASE AGREEMENTS – NON TRADING
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Debt Securities in Issue |
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Debt Securities In Issue [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Securities in Issue | 22. DEBT SECURITIES IN ISSUE
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Subordinated Liabilities |
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Disclosure Of Subordinated Liabilities [Abstract] | |||||||||||||||||||||||||||||||||||||
Subordinated Liabilities | 23. SUBORDINATED LIABILITIES
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Provisions |
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Provisions | 24. PROVISIONS
Conduct remediation Payment Protection Insurance (PPI) At 30 June 2021, the remaining provision for PPI redress and related costs was £37m (2020: £76m). There was no additional provision in H121. At 30 June 2021, the outstanding activities which drive the ongoing provision requirement relate to the final aspects of complaints close down activity and the commercial settlement with the Official Receiver. Customers continue to commence litigation concerning the historical sale of PPI. Provision has been made for the best estimate of any obligation to pay compensation in respect of current stock and estimated future claims. The extent of the potential liability and amount of any compensation to be paid remains uncertain. The provision for conduct remediation recognised represents management’s best estimate of Santander UK’s liability in respect of mis-selling of PPI policies. PropertyProperty provisions were impacted by £43m of transformation charges in H121. These relate to a multi-year project to deliver on our strategic priorities and enhance efficiency in order for us to better serve our customers and meet our medium-term targets. These charges consist of costs relating to leasehold properties within the scope of our branch network restructuring programme and decommissioning costs relating to head office sites which are either closing or consolidating.Regulatory and otherIn H121 there was a charge of £69m as part of our multi-year transformation programme to improve future returns, focused on simplifying, digitising and automating the bank, comprising mainly of redundancy costs of £57m relating to branch and head office site closures. There was also a charge for operational risk provisions of £50m, due to an increase in Push Payment fraud volumes and losses, £13m for legal provisions and smaller charges for other provisions.In H121 we did not experience any material operational risk losses. The losses were in line with H120 and remained comfortably within our forecast and 2021 risk appetite. Aligned to the rest of the industry, we continue to experience losses related to Push Payment fraud. In addition, provisions are being managed to cover existing customer remediation programmes and associated costs.
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Disclosure of net defined benefit liability (asset) [abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefit Plans | 25. RETIREMENT BENEFIT PLANS The amounts recognised in the balance sheet were as follows:
An expense of £33m (H120: £33m) was recognised for defined contribution plans in the period and is included in staff costs classified within operating expenses (see Note 4). b) Defined benefit pension schemes The total amount charged to the income statement was £23m (H120: £17m).The amounts recognised in other comprehensive income were as follows:
The net assets recognised in the balance sheet were determined as follows:
Actuarial assumptions The principal actuarial assumptions used for the defined benefit schemes were:
In March 2021, the Trustee entered into a longevity swap. Approximately 85% of pensioner liabilities were covered by the longevity swap at inception. The value of the swap at 30 June 2021 was nil. Actuarial assumption sensitivities The sensitivity analyses below have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.
(1)The comparative figure for general price inflation sensitivity of £365m as at 31 December 2020 has been restated. This was due to an error and does not impact the actual reported assumption value.
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Contingent Liabilities and Commitments |
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Disclosure of contingent liabilities [abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contingent Liabilities and Commitments | 26. CONTINGENT LIABILITIES AND COMMITMENTS
Where the items set out below can be reliably estimated, they are disclosed in the table above. Other legal actions and regulatory matters Santander UK engages in discussion, and co-operates, with the FCA, PRA, CMA and other regulators and government agencies in various jurisdictions in their supervision and review of Santander UK including reviews exercised under statutory powers, regarding its interaction with past and present customers, both as part of general thematic work and in relation to specific products, services and activities. During the ordinary course of business, Santander UK is also subject to complaints and threatened legal proceedings brought by or on behalf of current or former employees, customers, investors or other third parties, in addition to legal and regulatory reviews, challenges and tax or enforcement investigations or proceedings in various jurisdictions. All such matters are assessed periodically to determine the likelihood of Santander UK incurring a liability. In those instances where it is concluded that it is not yet probable that a quantifiable payment will be made, for example because the facts are unclear or further time is required to fully assess the merits of the case or to reasonably quantify the expected payment, no provision is made. In addition, where it is not currently practicable to estimate the possible financial effect of these matters, no provision is made. Payment Protection Insurance In relation to a specific PPI portfolio of complaints, a legal dispute regarding allocation of liability is in its early stages. The dispute relates to the liability for PPI mis-selling complaints relating to pre-2005 PPI policies underwritten by AXA France IARD and AXA France Vie (together, AXA France - previously Financial Insurance Company Ltd and Financial Assurance Company Ltd respectively) and involves Santander Cards UK Limited (a former GE Capital Corporation entity and distributor of pre-2005 PPI known as GE Capital Bank Limited which was acquired by Banco Santander SA in 2008 and subsequently transferred to Santander UK plc) and a Banco Santander SA subsidiary Santander Insurance Services UK Limited (together the Santander Entities). During the relevant period, AXA France were owned by Genworth Financial International Holdings, Inc (Genworth). In September 2015 AXA S.A. acquired AXA France from Genworth. In July 2017, the Santander Entities notified AXA France that they did not accept liability for losses on PPI policies relating to this period. Santander UK plc entered into a Complaints Handling Agreement (CHA) with AXA France pursuant to which it agreed to handle complaints on their behalf, and AXA France agreed to pay redress assessed to be due to relevant policyholders on a without prejudice basis. A standstill agreement was entered into between the Santander Entities and AXA France as a condition of the CHA. In July 2020, Genworth announced that it had agreed to pay AXA circa £624m in respect of PPI mis-selling losses in settlement of the related dispute concerning obligations under the sale and purchase agreement pursuant to which Genworth sold AXA France to AXA. The CHA between Santander UK plc and AXA France terminated on 26 December 2020. On 30 December 2020, AXA France provided written notice to the Santander Entities to terminate the standstill agreement. During H121, AXA France commenced litigation against the Santander Entities seeking recovery of £636m and any further losses relating to pre-2005 PPI. The Santander Entities acknowledged service indicating their intention to defend the claim in full and have now issued an application for AXA France’s claim to be struck out/summarily dismissed. This dispute is at an early stage and there are ongoing factual issues to be resolved which may have legal consequences including in relation to liability. These issues create uncertainties which mean that it is difficult to reliably predict the outcome or the timing of the resolution of the matter. The regulatory and other provision in Note 24 includes our best estimate of the Santander Entities’ liability to the specific portfolio. Further information has not been provided on the basis that it would be seriously prejudicial to the Santander Entities’ interests in connection with the dispute. In addition, and in relation to PPI more generally the PPI provision includes an amount relating to legal claims challenging the FCA’s industry guidance on the treatment of Plevin / recurring non-disclosure assessments. This provision is based on current stock levels, future projected claims, and average redress. There remains a risk that volumes received in future may be higher than forecast. The provision in Note 24 includes our best estimate of Santander UK’s liability for the specific issue. The actual cost of customer compensation could differ from the amount provided. It is not currently practicable to provide an estimate of the risk and amount of any further financial impact. German dividend tax arbitrage transactions In June 2018 the Cologne Criminal Prosecution Office and the German Federal Tax Office commenced an investigation in relation to the historical involvement of Santander UK plc, Santander Financial Services plc and Cater Allen International Limited (all subsidiaries of Santander UK Group Holdings plc) in German dividend tax arbitrage transactions (known as cum/ex transactions). These transactions allegedly exploited a loophole of a specific German settlement mechanism through short-selling and complex derivative structuring which resulted in the German government either refunding withholding tax where such tax had not been paid or refunding it more than once. The German authorities are investigating numerous institutions and individuals in connection with alleged transactions and practices which may be found to be illegal under German law. During H121 we continued to cooperate with the German authorities and, with the assistance of external experts, to progress an internal investigation into the matters in question. From Santander UK plc’s perspective, the investigation is focused principally on the period 2009-2011 and remains on-going. There remain factual issues to be resolved which may have legal consequences including potentially material financial penalties. These issues create uncertainties which mean that it is difficult to predict the resolution of the matter including timing or the significance of the possible impact. Any potential losses, claims or expenses suffered or incurred by Santander Financial Services plc in respect of these matters have been fully indemnified by Santander UK plc, as part of the ring-fencing transfer scheme between Santander UK plc, Santander Financial Services plc and Banco Santander SA. Consumer credit The Santander UK group’s unsecured lending and other consumer credit business is governed by consumer credit law and related regulations, including the CCA. Claims brought by customers in relation to these requirements, including potential breaches, could result in costs to the Santander UK group where such potential breaches are not found to be de minimis. The CCA includes very detailed and prescriptive requirements for lenders, including in relation to post contractual information. Other provisions include an amount of £41m (2020: £47m) arising from a systems-related historical issue identified by Santander UK, relating to compliance with certain requirements of the CCA. This provision has been based on detailed reviews of relevant systems related to consumer credit business operations, supported by external legal and regulatory advice. The Regulatory and other provision in Note 24 includes our best estimate of Santander UK’s liability for the specific issue. The actual cost of customer compensation could differ from the amount provided. It is not practicable to provide an estimate of the risk and amount of any further financial impact. FCA civil regulatory investigation into Santander UK plc financial crime systems, processes and controls and compliance with the Money Laundering Regulations 2007 Santander UK plc is cooperating with an FCA civil regulatory investigation which commenced in July 2017 into our compliance with the Money Laundering Regulations 2007 and potential breaches of FCA principles and rules relating to anti-money laundering and financial crime systems and controls. The FCA’s investigation focuses primarily on the period 2012 to 2017 and includes consideration of high risk customers including Money Service Businesses. It is not currently possible to make a reliable assessment of any liability resulting from the investigation including any financial penalty. Taxation The Santander UK group engages in discussion, and co-operates, with HM Revenue & Customs (HMRC) in their oversight of the Santander UK group’s tax matters. The Santander UK group adopted the UK’s Code of Practice on Taxation for Banks in 2010. Certain leases in which the Santander UK group is or was the lessor have been under review by HMRC in connection with claims for tax allowances. Under the terms of the lease agreements, the Santander UK group is fully indemnified in all material respects by the respective lessees for any liability arising from the disallowance of tax allowances plus accrued interest. During H121, an outline agreement in principle in respect of a number of these lease arrangements was reached directly between the lessee and HMRC. Certain other lease arrangements, where the tax liabilities are considered immaterial, remain under review. Whilst legal opinions have been obtained to support the Santander UK group’s position, the matter remains uncertain pending formal resolution with HMRC and any subsequent litigation. These matters moved to formal litigation in 2020, as required under the terms of the leases, and it is currently anticipated that hearings will be held at the First Tier Tax Tribunal in 2022. Other On 2 November 2015, Visa Europe Ltd agreed to sell 100% of its share capital to Visa Inc. The deal closed on 21 June 2016. As a member and shareholder of Visa Europe Ltd, Santander UK received upfront consideration made up of cash and convertible preferred stock. The convertible preferred stock is now held by Santander Equity Investments Limited (SEIL), outside the ring fenced bank. Conversion of the preferred stock into Class A Common Stock of Visa Inc. depends on the outcome of litigation against Visa involving UK & Ireland (UK&I) multilateral interchange fees (MIFs). In June 2020, the Supreme Court issued a judgement finding that MIFs restricted competition. In addition, Santander UK and certain other UK&I banks have agreed to indemnify Visa Inc. in the event that the preferred stock is insufficient to meet the costs of this litigation. Visa Inc. has recourse to this indemnity once more than €1bn of losses relating to UK&I MIFs have arisen or once the total value of the preferred stock issued to UK&I banks on closing has been reduced to nil. Whilst Santander UK's liability under this indemnity is capped at €39.85m, Visa Inc. may have recourse to a general indemnity in place under Visa Europe Operating Regulations for damages not satisfied through the above mechanism. At this stage, it is unclear whether the litigation will give rise to more than €1bn of losses relating to UK&I MIFs which means it is difficult to predict the resolution of the matter including the timing or the significance of the possible impact. As part of the sale of subsidiaries, businesses and other entities, and as is normal in such circumstances, Santander UK has given warranties and indemnities to the purchasers.
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Other Equity Instruments |
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Other Equity Instruments | 27. OTHER EQUITY INSTRUMENTS
In March 2021, Santander UK plc purchased and redeemed the remaining £210m of the original £500m 5.18%Fixed Rate Reset Perpetual AT1 Capital Securities and issued £210m 4.25% Fixed Rate Reset Perpetual AT1 Capital Securities, which were fully subscribed by the Company’s immediate parent company, Santander UK Group Holdings plc.
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Non-Controlling Interests |
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Disclosure Of Non Controlling Interests [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
Non-Controlling Interests | 28. NON-CONTROLLING INTERESTS
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Assets Charged as Security for Liabilities and Collateral Accepted as Security for Assets |
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Jun. 30, 2021 | |
Disclosure Of Assets Pledged As Security [Abstract] | |
Assets Charged as Security for Liabilities and Collateral Accepted as Security for Assets | 29. ASSETS CHARGED AS SECURITY FOR LIABILITIES AND COLLATERAL ACCEPTED AS SECURITY FOR ASSETS Securitisations and covered bonds As described in Note 14 to the Consolidated Financial Statements in the 2020 Annual Report, Santander UK plc and certain of its subsidiaries issue securitisations and covered bonds. At 30 June 2021, there were £25,164m (2020: £33,432m) of gross assets in these secured programmes, of which £130m (2020: £2,294m) related to internally retained issuances that were available for use as collateral for liquidity purposes in the future. At 30 June 2021, a total of £2,011m (2020: £4,530m) of notes issued under securitisation and covered bond programmes had been retained internally, a proportion of which had been used as collateral via third party bilateral secured funding transactions, which totalled £500m at 30 June 2021 (2020: £1,114m), or for use as collateral for liquidity purposes in the future.
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Related Party Disclosures |
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Disclosure of transactions between related parties [abstract] | |
Related Party Disclosures | 30. RELATED PARTY DISCLOSURES The financial position and performance of the Santander UK group have not been materially affected in H121 by any related party transactions, or changes to related party transactions, except for the classification of the assets and liabilities of the CIB business as held for sale and its results as discontinued operations, given the transfer of the CIB business to SLB, as set out in Note 33. These transactions were made in the ordinary course of business, on substantially the same terms as for comparable transactions with third party counterparties, and within limits acceptable to the PRA. Such transactions do not involve more than the normal risk of collectability or present any unfavourable features. In addition, transactions with pension schemes operated by the Santander UK group are described in Note 30 to the Consolidated Financial Statements in the 2020 Annual Report.
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Financial Instruments |
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Disclosure Of Fair Value Measurement Of Assets And Liabilities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments | 31. FINANCIAL INSTRUMENTS a) Measurement basis of financial assets and liabilities Financial assets and financial liabilities are measured on an ongoing basis either at fair value or at amortised cost. Note 1 to the Consolidated Financial Statements in the 2020 Annual Report describes how the classes of financial instruments are measured, and how income and expenses, including fair value gains and losses, are recognised. Disclosures relating to fair value measurement and hierarchy, valuation techniques and the control framework and related aspects pertaining to financial instruments at fair value are included in the 2020 Annual Report. Valuation, sensitivity methodologies and inputs at 30 June 2021 are consistent with those described in Note 40 to the Consolidated Financial Statements in the 2020 Annual Report.b) Fair values of financial instruments carried at amortised cost The following tables analyse the fair value of the financial instruments carried at amortised cost at 30 June 2021 and 31 December 2020. It does not include fair value information for financial assets and financial liabilities carried at amortised cost if the carrying amount is a reasonable approximation of fair value. Details of the valuation methodology of the financial assets and financial liabilities carried at amortised cost can be found in Note 40(e) to the Consolidated Financial Statements in the 2020 Annual Report.
(1)Assets and liabilities classified as held for sale are measured in accordance with IFRS 9. Any assets and liabilities held for sale which are measured at fair value are included in the fair value table in section (c) below. c) Fair values of financial instruments measured at fair value The following tables summarise the fair values of the financial assets and liabilities accounted for at fair value at 30 June 2021 and 31 December 2020, analysed by their levels in the fair value hierarchy - Level 1, Level 2 and Level 3.
(1)Includes assets and liabilities held for sale which are measured at fair value. Transfers between levels of the fair value hierarchy In H121 there were no significant (H120: no significant) transfers of financial instruments between levels of the fair value hierarchy. d) Valuation techniques The main valuation techniques employed in internal models to measure the fair value of the financial instruments are disclosed in Note 40(c) to the Consolidated Financial Statements in the 2020 Annual Report. The Santander UK group did not make any material changes to the valuation techniques and internal models it used during H121. e) Fair value adjustments The internal models incorporate assumptions that Santander UK believes would be made by a market participant to establish fair value. Fair value adjustments are adopted when Santander UK considers that there are additional factors that would be considered by a market participant that are not incorporated in the valuation model. Santander UK classifies fair value adjustments as either ‘risk-related’ or ‘model-related’. The fair value adjustments form part of the portfolio fair value and are included in the balance sheet values of the product types to which they have been applied. The magnitude and types of fair value adjustment are listed in the following table:
Risk-related adjustments Risk-related adjustments are driven, in part, by the magnitude of Santander UK’s market or credit risk exposure, and by external market factors, such as the size of market spreads. For more details, see ‘Risk-related adjustments’ in Note 40(g) to the Consolidated Financial Statements in the 2020 Annual Report. f) Internal models based on information other than market data (Level 3) Valuation techniques There have been no significant changes to the valuation techniques as set out in Note 40(h) to the Consolidated Financial Statements in the 2020 Annual Report. Reconciliation of fair value measurement in Level 3 of the fair value hierarchy The following table sets out the movements in Level 3 financial instruments in H121 and H120:
(1)This relates to the effect of netting on the fair value of the credit linked notes due to a legal right of set-off between the principal amounts of the senior notes and the associated cash deposits. For more, see ‘ii) Credit protection entities’ in Note 19 to the Consolidated Financial Statements in the 2020 Annual Report. Effect of changes in significant unobservable assumptions to reasonably possible alternatives (Level 3) There has been no significant change to the unobservable inputs and sensitivities used in Level 3 fair values as set out in Note 40(h) to the Consolidated Financial Statements in the 2020 Annual Report.
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Interest Rate Benchmark Reform |
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Interest Rate Benchmark Reform [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest Rate Benchmark Reform | 32. INTEREST RATE BENCHMARK REFORM The following tables show the notional amounts of assets, liabilities and off-balance sheet commitments at 30 June 2021 and 31 December 2020 affected by IBOR reform that have yet to transition to an alternative benchmark interest rate as provided internally to key management personnel.
(1) Many of the Santander UK group’s derivatives subject to IBOR reform are governed by ISDA definitions. In October 2020 ISDA issued an IBOR fallbacks supplement setting out how the amendments to new alternative benchmark rates will be accomplished, the effect of which is to create fallback provisions in derivatives that describe what floating rates will apply on the permanent discontinuation of certain key IBORs or upon ISDA declaring a non-representative determination of an IBOR. The Santander UK group has adhered to the protocol to implement the fallbacks to derivative contracts that were entered into before the effective date of the supplement (25 January 2021). If derivative counterparties also adhere to the protocol, new fallbacks will automatically be implemented in existing derivative contracts when the supplement becomes effective. Following the announcement by the FCA on 5 March 2021 that certain LIBOR settings will permanently cease immediately after 31 December 2021 (and for overnight and 12-month US dollar LIBOR after 30 June 2023), the ISDA fallback spread adjustment is fixed as of the date of the FCA announcement. (2) Cessation dates are: GBP, JPY, NOK LIBOR 31/12/21, USD LIBOR 30/06/23, EONIA 3/1/22 IBOR Reform The table below shows the notional amount of derivatives in hedging relationships directly affected by uncertainties related to IBOR reform.
(1) Cessation dates are: GBP, JPY, NOK LIBOR 31/12/21, USD LIBOR 30/06/23, EONIA 3/1/22
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Discontinued Operations and Assets and Liabilities Held for Sale |
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Discontinued Operations and Assets and Liabilities Held for Sale [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations and Assets and Liabilities Held for Sale | 33. DISCONTINUED OPERATIONS AND ASSETS AND LIABILITIES HELD FOR SALE Discontinued operations Proposed transfer of the CIB business to SLB Following a hearing held on 23 June 2021, the High Court of England and Wales has sanctioned the transfer of substantially all the CIB business of Santander UK to SLB by way of a Part VII banking business transfer scheme. The transfers of CIB business to SLB under the scheme are scheduled to take place before the end of 2021. At 30 June 2021, the CIB business met the requirements for presentation as discontinued operations. The financial performance and cash flow information relating to the discontinued operations were as follows:
There were no gains or losses recognised on the measurement to fair value less costs to sell or on the disposal of the asset groups constituting the discontinued operations. In H121, the net cash flows attributable to the operating activities, investing activities and financing activities in respect of discontinued operations were £1,754m outflow (H120: £524m inflow), £nil (H120: £nil) and £nil (H120: £nil), respectively Assets and liabilities held for sale Proposed transfer of the CIB business to SLB Management considered the related business transfers to be highly probable at 30 June 2021. As such, the Santander UK group reclassified as held for sale the assets and liabilities relating to the CIB business. These business transfers will be made for a cash consideration equivalent to the book value of the associated assets and liabilities, which represents a fair value for the Santander UK group. Costs to sell are expected to be immaterial. Sale of Retail Banking mortgage assets At 30 June 2021, Santander UK was in the process of selling a portfolio of Retail Banking residential mortgage assets and expected to complete the transaction in August 2021. Management considered the sale to be highly probable at 30 June 2021. As such, the Santander UK group reclassified as held for sale the mortgage assets. The sale is expected to be made for a cash consideration exceeding the book value of the mortgage assets, resulting in a gain on disposal. Costs to sell are expected to be immaterial. Assets and liabilities held for sale At 30 June 2021, the assets and liabilities held for sale comprised of:
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Events After the Balance Sheet Date |
6 Months Ended |
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Jun. 30, 2021 | |
Disclosure of non-adjusting events after reporting period [abstract] | |
Events After the Balance Sheet Date | 34. EVENTS AFTER THE BALANCE SHEET DATE There have been no significant events between 30 June 2021 and the date of approval of these financial statements which would require a change to or additional disclosure in the financial statements, except for the following non-adjusting event: On 30 July 2021, the Santander UK group through Santander Consumer (UK) plc sold its entire 50% shareholding in PSA Finance UK Limited (PSA) to PSA Financial Services Spain EFC SA, a joint venture between Santander Consumer Finance SA, a fellow subsidiary of Banco Santander SA, and Banque PSA Finance SA, the auto finance arm of Group PSA Peugeot Citroën. The impact of the sale was to derecognise total assets of £3.2bn, total liabilities of £2.9bn and a non-controlling interest of £0.15bn. No material gain or loss arose on sale. For more information on PSA, including summary financial information, see Note 19 to the Consolidated Financial Statements in the 2020 Annual Report.
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Accounting Policies (Policies) |
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Disclosure Of Significant Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of preparation | The financial information in these Condensed Consolidated Interim Financial Statements is unaudited and does not constitute statutory accounts as defined in section 434 of the UK Companies Act 2006. Statutory accounts for the year ended 31 December 2020 have been delivered to the Registrar of Companies. The Condensed Consolidated Interim Financial Statements reflect all adjustments that, in the opinion of management, are necessary for a fair statement of the results of operations for the interim period. All such adjustments to the financial information are of a normal, recurring nature. Because the results from common banking activities are so closely related and responsive to changes in market conditions, the results for any interim period are not necessarily indicative of the results that can be expected for the year. On 31 December 2020, International Financial Reporting Standards (IFRSs) as adopted by the European Union at that date was brought into UK law and became UK-adopted International Accounting Standards (IAS), with future changes being subject to endorsement by the UK Endorsement Board. Santander UK plc (the Company) and its subsidiaries (collectively Santander UK or the Santander UK group) transitioned to UK-adopted International Accounting Standards in its consolidated financial statements on 1 January 2021. This change constitutes a change in accounting framework. However, there is no impact on recognition, measurement or disclosure in the period reported as a result of the change in framework. The Condensed Consolidated Interim Financial Statements have been prepared in accordance with UK adopted IAS 34 ‘Interim Financial Reporting', IAS 34 ‘Interim Financial Reporting’ as issued by the International Accounting Standards Board (IASB), IAS 34 ‘Interim Financial Reporting’ as adopted by the EU, and the Disclosure Guidance and Transparency Rules sourcebook of the UK's Financial Conduct Authority (FCA). They do not include all the information and disclosures normally required for full annual financial statements and should be read in conjunction with the Consolidated Financial Statements of Santander UK for the year ended 31 December 2020 which were prepared in accordance with international accounting standards in conformity with the requirements of the Companies Act 2006 and IFRSs adopted pursuant to Regulation (EC) No 1606/2002 as it applies in the European Union. Those consolidated financial statements were also prepared in accordance with IFRSs as issued by the IASB, including interpretations issued by the IFRS Interpretations Committee, as there were no applicable differences from IFRSs as issued by the IASB for the periods presented. At 30 June 2021, there were no differences between IFRSs adopted by the UK, IFRSs issued by the IASB, and IFRSs adopted by the EU in terms of their application to Santander UK. The financial statements for Santander UK for the year ended 31 December 2021 will be prepared in accordance with IFRS as adopted by the UK, IFRSs as issued by the IASB, including interpretations issued by the IFRS Interpretations Committee, and IFRSs as adopted by the EU. Except as noted below, the same accounting policies, presentation and methods of computation are followed in these Condensed Consolidated Interim Financial Statements as were applied in the presentation of Santander UK’s 2020 Annual Report. Future accounting developments At 30 June 2021, for the Santander UK group, there were no significant new or revised standards and interpretations, and amendments thereto, which have been issued, including those which are not yet effective or which have otherwise not been early adopted where permitted.
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Non-current assets held for sale | Non-current assets held for sale Non-current assets (or disposal groups) are classified as held for sale when their carrying amount is to be recovered principally through a sale transaction rather than continuing use. In order to be classified as held for sale, the asset must be available for immediate sale in its present condition subject only to terms that are usual and customary and the sale must be highly probable. Non-current assets (or disposal groups) held for sale are measured at the lower of carrying amount and fair value less cost to sell, with the exception of financial instruments which remain governed by the requirements of IFRS 9, and are held at their IFRS 9 carrying value. For details of the disposal of assets and liabilities in connection with the transfer of the Corporate & Investment Banking (CIB) business to the London Branch of Banco Santander SA (SLB), and for details on the sale of Retail Banking residential mortgage assets, see Note 33.
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Discontinued operations | Discontinued operations A discontinued operation is a component of the Santander UK group that has been disposed of or is classified as held for sale and that represents a separate major line of business or geographical area of operations, is part of a single co-ordinated plan to dispose of such a line of business or area of operations, or is a subsidiary acquired exclusively with a view to resale. The results of discontinued operations are presented separately in the Condensed Consolidated Income Statement. Prior periods have been restated accordingly.
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Going concern | Going concern In light of the continuing economic uncertainty, the Directors updated their going concern assessment in preparing these Condensed Consolidated Interim Financial Statements. After making enquiries, the Directors have a reasonable expectation that Santander UK has adequate resources to continue in operational existence for at least twelve months from the date of this report and, therefore, having reassessed the principal risks and uncertainties, the Directors consider it appropriate for the Condensed Consolidated Interim Financial Statements to be prepared on a going concern basis. In making their going concern assessment in connection with preparing the Condensed Consolidated Interim Financial Statements, the Directors considered a wide range of information that included Santander UK’s long-term business and strategic plans, forecasts and projections, estimated capital, funding and liquidity requirements, contingent liabilities and the reasonably possible changes in trading performance arising from potential economic, market and product developments. The Directors' assessment specifically considered the impacts of Covid-19, including for the following areas: –Economic scenarios and probability weights: These underpin our ECL impairment allowances and are discussed in detail in the Credit risk section of the Risk review. The Directors reviewed the economic scenarios to ensure that they captured the wide range of potential outcomes for the UK economy. Whereas the outlook for 2021 is more positive following the success of the vaccination programme and cautious optimism that the worst of the health crisis has passed, the downside scenarios continue to encapsulate different potential outcomes including higher-for-longer unemployment, and emergence of Covid-19 variants that are more resistant to existing vaccines leading to further lockdowns and a slower recovery that is more akin to the ‘U’ shape of past recessions. –Liquidity: Santander UK remains in a strong liquidity position and Covid-19 did not trigger a liquidity stress. –Capital: Santander UK remains strongly capitalised and Covid-19 did not trigger a capital stress. –Customers: Santander UK has supported many thousands of individuals and businesses affected by Covid-19 with a range of measures, including payment holidays on mortgages, personal loans and credit cards as well as taking an active part in UK Government loan schemes to help businesses. The majority of customers who took payment holidays have resumed payments. We continue to work with those customers who remain affected to understand their individual situations and, where necessary, help them resume payments. –Operations: All our operations continue to operate effectively with a significant majority of staff working from home and the majority of branches remaining open and returning to more normal hours. The current operating model could be sustained indefinitely with additional resilience being continuously implemented and is not affecting our ability to operate all our services, or raising concerns about our Business Continuity Planning, and –Key suppliers: Suppliers continue to be closely monitored in line with our Third Party Risk Management Framework. No significant service issues have been reported across our cohort of critical suppliers, and no material issues have been reported across our broader (non-critical) supply chain. Isolated supplier impacts have been seen, but these are being managed.
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Critical judgements and accounting estimates | CRITICAL JUDGEMENTS AND ACCOUNTING ESTIMATES The preparation of the Condensed Consolidated Interim Financial Statements requires management to make judgements and accounting estimates that affect the reported amount of assets and liabilities at the date of the Condensed Consolidated Interim Financial Statements and the reported amount of income and expenses during the reporting period. Management evaluates its judgements and accounting estimates, which are based on historical experience and on various other factors that are believed to be reasonable under the circumstances, on an ongoing basis. Actual results may differ from these accounting estimates under different assumptions or conditions. In the course of preparing the Condensed Consolidated Interim Financial Statements, no significant judgements have been made in the process of applying the accounting policies, other than those involving estimations about credit impairment losses, provisions and contingent liabilities, pensions and goodwill. There have been no significant changes in the basis upon which judgements and accounting estimates have been determined compared to that applied in the 2020 Annual Report, except as described below. Management have considered the impact of Covid-19 on critical judgements and accounting estimates.a) Credit impairment losses
For more on each of these key judgements and estimates, including the impact of Covid-19 on them, see 'Management judgements and estimates applied in calculating ECL' in the ‘Credit risk – Santander UK group level – credit risk management’ section of the Risk review. Sensitivity of ECL allowance For detailed disclosures, see 'Sensitivity of ECL allowance' in the ‘Credit risk – Santander UK group level – credit risk management’ section of the Risk review. b) Provisions and contingent liabilities
Note 26 'Contingent liabilities and commitments' includes disclosure relating to an investigation in relation to the historical involvement of Santander UK plc, Santander Financial Services plc and Cater Allen International Limited (all subsidiaries of Santander UK Group Holdings plc) in German dividend tax arbitrage transactions, as well as an FCA civil regulatory investigation which commenced in July 2017 into our compliance with the Money Laundering Regulations 2007 and potential breaches of FCA principles and rules relating to anti-money laundering and financial crime systems and controls. It also includes disclosure relating to certain leases in which current and former Santander UK group members were the lessor that are currently under review by HMRC in connection with claims for tax allowances. These judgements are based on the specific facts available and often require specialist professional advice. There can be a wide range of possible outcomes and uncertainties, particularly in relation to legal actions, and regulatory and consumer credit matters. As a result, it is often not possible to make reliable estimates of the likelihood and amount of any potential outflows, or to calculate any resulting sensitivities. For more on each of these key judgements and estimates, see Notes 24 and 26. c) Pensions
For more on each of these key judgements and estimates, including the impact of Covid-19 on them, see Note 25. Sensitivity of defined benefit pension scheme estimates For detailed disclosures see ‘Actuarial assumption sensitivities’ in Note 25. d) Goodwill
For more on each of these key judgements and estimates, see Note 16. Sensitivity of goodwill For detailed disclosures, see ‘Sensitivities of key assumptions in calculating VIU’ in Note 20 to the Consolidated Financial Statements in the 2020 Annual Report.
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Profit before tax re-segmentation of short term markets business in Corporate Centre rather than Corporate & Investment Banking | As reflected in the 2020 Annual Report, the segmental basis of presentation in these Condensed Consolidated Interim Financial Statements changed following a management review of our structure. At 31 December 2020 this resulted in customer assets of £2.0bn and customer deposits of £3.1bn being transferred from Business Banking (in Retail Banking) to CCB, non-core corporate mortgages of £0.4bn transferring from Corporate Centre to CCB, and a number of smaller business lines transferring from CIB to Corporate Centre. For H120, this resulted in an increase in profit before tax in Retail Banking of £28m, a decrease in CCB of £31m, a decrease in CIB of £4m, and an increase of £7m in Corporate Centre. The net impact for Santander UK was nil. Proposed transfer of the CIB business to SLB Following a hearing held on 23 June 2021, the High Court of England and Wales has sanctioned the transfer of substantially all the CIB business of Santander UK to SLB by way of a Part VII banking business transfer scheme. The transfers of CIB business to SLB under the scheme are scheduled to take place before the end of 2021. Management considered the related business transfers to be highly probable at 30 June 2021. As such, the Santander UK group reclassified as held for sale the assets and liabilities relating to the CIB business. For more details, see Note 33. At 30 June 2021, the CIB business met the requirements for presentation as discontinued operations. For more details, see Note 33.
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Accounting Policies (Tables) |
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure Of Significant Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Information about Key Judgements and Key Estimates |
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Segments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of operating segments [abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Results by Segment | Results by segment
(1)The disaggregation of fees and commission income as shown above is not included in reports provided to the chief operating decision maker but is provided to show the split by reportable segments. (2)Non-banking and other fees include mortgages (except mortgage account fees), consumer finance, commitment commission, asset finance, invoice finance and trade finance. (3)Includes customer loans, net of credit impairment loss allowances.
(1)The disaggregation of fees and commission income as shown above is not included in reports provided to the chief operating decision maker but is provided to show the split by reportable segments. (2)Non-banking and other fees include mortgages (except mortgage account fees), consumer finance, commitment commission, asset finance, invoice finance and trade finance. (3)Includes customer loans, net of credit impairment loss allowances (4)Restated, as reflected in Note 2 to the Consolidated Financial Statements in the 2020 Annual Report, following a management review of our structure. (5)Restated to reflect the presentation of discontinued operations, as set out in Note 33.
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Operating Expenses Before Credit Impairment Losses, Provisions and Charges (Tables) |
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses by nature [abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Operating Expenses Before Credit Impairment Losses, Provisions and Charges |
(1)Adjusted to reflect the presentation of discontinued operations as set out in Note 33.
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Credit Impairment Losses and Provisions (Tables) |
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Jun. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure Of Credit Impairment Loss And Provisions [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Impairment Losses and Provisions |
(1)Adjusted to reflect the presentation of discontinued operations as set out in Note 33.
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Taxation (Tables) |
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Major components of tax expense (income) [abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Tax on Profit Before Tax Differs from Theoretical Amount that Arise Using Basic Corporation Tax Rate | The Santander UK group’s effective tax rate for H121 was 27.6% (H120: 25.5%). The tax on profit before tax differs from the theoretical amount that would arise using the basic corporation tax rate of the Company as follows:
(1)Adjusted to reflect the presentation of discontinued operations as set out in Note 33.
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Derivative Financial Instruments (Tables) |
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Disclosure of nature and extent of risks arising from financial instruments [abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notional Amounts and Fair Values of Derivatives | The table below includes the notional amounts of transactions outstanding at the balance sheet date; they do not represent actual exposures.
(1) Derivative netting excludes the effect of cash collateral, which is offset against the gross derivative position. The amount of cash collateral received that had been offset against the gross derivative assets was £401m (2020: £330m) and the amount of cash collateral paid that had been offset against the gross derivative liabilities was £245m (2020: £651m).
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Other Financial Assets At Fair Value Through Profit Or Loss (Tables) |
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Financial assets at fair value through profit or loss [abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Other Financial Assets at Fair Value Through Profit or Loss |
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Loans and Advances to Customers (Tables) |
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Jun. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Loans And Advances To Customers [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Net Loans and Advances to Customers |
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Securitisations and Covered Bonds (Tables) |
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Disclosure Of Securitisations And Covered Bonds [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Analysis of Securitisations and Covered Bonds | The gross assets securitised, or for the covered bond programme assigned, at 30 June 2021 and 31 December 2020 were:
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Summary of Issuances and Redemptions of Securitisation and Covered Bond Programme | The following table sets out the internal and external issuances and redemptions in H121 and H120 for each securitisation and covered bond programme.
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Reverse Repurchase Agreements - Non Trading (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure Of Reserve Repurchase Agreements Non-Trading [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Reverse Repurchase Agreements - Non Trading |
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Other Financial Assets At Amortised Cost (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial assets at fair value through profit or loss [abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Other Financial Assets at Amortised Cost |
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Financial Assets At Fair Value Through Other Comprehensive Income (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial assets at fair value through other comprehensive income [abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Financial Assets at Fair Value Through Other Comprehensive Income |
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Intangible Assets (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of detailed information about intangible assets [abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill for Cash Generating Units | The following CGUs include in their carrying values goodwill that comprises the goodwill reported by Santander UK. The CGUs do not carry on their balance sheets any other intangible assets with indefinite useful lives. For key assumptions used in the value in use (VIU) calculation, as the basis of the recoverable amount of each CGU, see Note 20 to the Consolidated Financial Statements in the 2020 Annual Report. At 30 June 2021 a review was performed to identify any potential impairment indicators. No indicators of impairment were identified and so a full impairment test was not performed for the half year. The key assumptions are set out in the table below.
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Property, Plant and Equipment (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, plant and equipment [abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of detailed information about investment property |
(1)Following a review of the estimated useful lives of property as part of Santander UK's transformation program, the charge for the period includes accelerated property depreciation of £4m (2020: £9m). (2)Property, plant and equipment includes assets under construction of £72m (2020: £55m).
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Other Financial Liabilities at Fair Value Through Profit or Loss (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of financial liabilities [abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Other Financial Liabilities at Fair Value Through Profit or Loss |
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Deposits by Customers (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deposits from customers [abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Deposits by Customers |
(1)Includes equity index-linked deposits of £578m (2020: £577m). The capital amount guaranteed/protected and the amount of return guaranteed in respect of the equity index-linked deposits were £578m and £2m (2020: £577m and £2m) respectively. (2)Includes downstreamed funding from our immediate parent company Santander UK Group Holdings plc.
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Deposits by Banks (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure Of Deposits From Banks [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Deposits by Banks |
(1)Includes drawdown from the TFS of £3.3bn (2020: £6.3bn) and drawdown from the TFSME of £15.2bn (2020: £11.7bn).
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Repurchase Agreements - Non Trading (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure Of Repurchase Agreement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Repurchase Agreements - Non Trading |
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Debt Securities in Issue (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Securities In Issue [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Debt Securities in Issue |
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Subordinated Liabilities (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||
Disclosure Of Subordinated Liabilities [Abstract] | |||||||||||||||||||||||||||||||||||||
Schedule of Subordinated Liabilities |
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Provisions (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of other provisions [abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Provisions Reconciliation |
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Retirement Benefit Plans (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of net defined benefit liability (asset) [abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Retirement Benefit Plans | The amounts recognised in the balance sheet were as follows:
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Disclosure of Pension Remeasurements Included in Other Comprehensive income | The amounts recognised in other comprehensive income were as follows:
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Summary of Net Assets Recognised | The net assets recognised in the balance sheet were determined as follows:
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Summary of Principal Actuarial Assumptions Used for Defined Benefit Schemes | The principal actuarial assumptions used for the defined benefit schemes were:
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Summary of Actuarial Assumption Sensitivities | The sensitivity analyses below have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.
(1)The comparative figure for general price inflation sensitivity of £365m as at 31 December 2020 has been restated. This was due to an error and does not impact the actual reported assumption value.
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Contingent Liabilities and Commitments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of contingent liabilities [abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Contingent Liabilities and Commitments |
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Other Equity Instruments (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of classes of share capital [abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of other equity instruments |
|
Non-Controlling Interests (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||
Disclosure Of Non Controlling Interests [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Amounts Attributable to Non-Controlling Interests |
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Financial Instruments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Values of Financial Instruments Carried at Amortised Cost | The following tables analyse the fair value of the financial instruments carried at amortised cost at 30 June 2021 and 31 December 2020. It does not include fair value information for financial assets and financial liabilities carried at amortised cost if the carrying amount is a reasonable approximation of fair value. Details of the valuation methodology of the financial assets and financial liabilities carried at amortised cost can be found in Note 40(e) to the Consolidated Financial Statements in the 2020 Annual Report.
(1)Assets and liabilities classified as held for sale are measured in accordance with IFRS 9. Any assets and liabilities held for sale which are measured at fair value are included in the fair value table in section (c) below.
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Fair Values of Financial Instruments Measured at Fair Value on a Recurring Basis | The following tables summarise the fair values of the financial assets and liabilities accounted for at fair value at 30 June 2021 and 31 December 2020, analysed by their levels in the fair value hierarchy - Level 1, Level 2 and Level 3.
(1)Includes assets and liabilities held for sale which are measured at fair value.
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Summary of Fair Value Adjustment | The magnitude and types of fair value adjustment are listed in the following table:
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Summary of Reconciliation of Fair Value Measurement in Level 3 of the Fair Value Hierarchy | The following table sets out the movements in Level 3 financial instruments in H121 and H120:
(1)This relates to the effect of netting on the fair value of the credit linked notes due to a legal right of set-off between the principal amounts of the senior notes and the associated cash deposits. For more, see ‘ii) Credit protection entities’ in Note 19 to the Consolidated Financial Statements in the 2020 Annual Report.
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Interest Rate Benchmark Reform (Tables) |
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Interest Rate Benchmark Reform [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Amounts Affected by IBOR Reform | The following tables show the notional amounts of assets, liabilities and off-balance sheet commitments at 30 June 2021 and 31 December 2020 affected by IBOR reform that have yet to transition to an alternative benchmark interest rate as provided internally to key management personnel.
(1) Many of the Santander UK group’s derivatives subject to IBOR reform are governed by ISDA definitions. In October 2020 ISDA issued an IBOR fallbacks supplement setting out how the amendments to new alternative benchmark rates will be accomplished, the effect of which is to create fallback provisions in derivatives that describe what floating rates will apply on the permanent discontinuation of certain key IBORs or upon ISDA declaring a non-representative determination of an IBOR. The Santander UK group has adhered to the protocol to implement the fallbacks to derivative contracts that were entered into before the effective date of the supplement (25 January 2021). If derivative counterparties also adhere to the protocol, new fallbacks will automatically be implemented in existing derivative contracts when the supplement becomes effective. Following the announcement by the FCA on 5 March 2021 that certain LIBOR settings will permanently cease immediately after 31 December 2021 (and for overnight and 12-month US dollar LIBOR after 30 June 2023), the ISDA fallback spread adjustment is fixed as of the date of the FCA announcement. (2) Cessation dates are: GBP, JPY, NOK LIBOR 31/12/21, USD LIBOR 30/06/23, EONIA 3/1/22
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Schedule of Derivatives Directly Affected by IBOR Reform Uncertainties | The table below shows the notional amount of derivatives in hedging relationships directly affected by uncertainties related to IBOR reform.
(1) Cessation dates are: GBP, JPY, NOK LIBOR 31/12/21, USD LIBOR 30/06/23, EONIA 3/1/22
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Discontinued Operations and Assets and Liabilities Held for Sale (Tables) |
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Discontinued Operations and Assets and Liabilities Held for Sale [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of financial performance relating to discontinued operations | At 30 June 2021, the CIB business met the requirements for presentation as discontinued operations. The financial performance and cash flow information relating to the discontinued operations were as follows:
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Disclosure of Assets and Liabilities Classified as Held for Sale | At 30 June 2021, the assets and liabilities held for sale comprised of:
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Segments - Additional Information (Detail) £ in Millions |
6 Months Ended | ||
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Jun. 30, 2020
GBP (£)
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Jun. 30, 2021
GBP (£)
segment
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Dec. 31, 2020
GBP (£)
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Disclosure of operating segments [line items] | |||
Number of segments | segment | 4 | ||
Total assets | £ 285,614 | £ 292,332 | |
Customer deposits | 189,370 | 185,707 | |
Retail Banking | |||
Disclosure of operating segments [line items] | |||
Total assets | 195,480 | 192,070 | |
Customer deposits | 156,713 | 152,167 | |
Retail Banking | Reclassified Amounts | |||
Disclosure of operating segments [line items] | |||
Total assets | (2,000) | ||
Customer deposits | (3,100) | ||
Profit (loss) before tax | £ 28 | ||
Corporate & Commercial Banking | |||
Disclosure of operating segments [line items] | |||
Total assets | 17,055 | 17,626 | |
Customer deposits | 25,244 | 24,985 | |
Corporate & Commercial Banking | Reclassified Amounts | |||
Disclosure of operating segments [line items] | |||
Total assets | 2,000 | ||
Customer deposits | 3,100 | ||
Corporate loans | 400 | ||
Profit (loss) before tax | (31) | ||
Corporate Centre | |||
Disclosure of operating segments [line items] | |||
Total assets | 71,022 | 79,852 | |
Customer deposits | 3,596 | 2,049 | |
Corporate Centre | Reclassified Amounts | |||
Disclosure of operating segments [line items] | |||
Corporate loans | (400) | ||
Profit (loss) before tax | 7 | ||
Corporate & Investment Banking | |||
Disclosure of operating segments [line items] | |||
Total assets | 2,057 | 2,784 | |
Customer deposits | £ 3,817 | £ 6,506 | |
Corporate & Investment Banking | Reclassified Amounts | |||
Disclosure of operating segments [line items] | |||
Profit (loss) before tax | £ (4) |
Segments - Summary of Results by Segment (Detail) - GBP (£) £ in Millions |
6 Months Ended | |||||
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Jun. 30, 2021 |
Jun. 30, 2020 |
Dec. 31, 2020 |
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Disclosure of operating segments [line items] | ||||||
Net interest income/(expense) | £ 1,905 | £ 1,528 | [1] | |||
Non-interest income | 286 | 300 | ||||
Total operating income/(expense) | 2,191 | 1,828 | ||||
Operating expenses before credit impairment losses, provisions and charges | (1,328) | (1,212) | [1] | |||
Credit impairment losses | 70 | (364) | [1] | |||
Provisions for other liabilities and charges | (190) | (64) | [1] | |||
Total operating credit impairment losses, provisions and charges | (120) | (428) | [1] | |||
Profit from continuing operations before tax | 743 | 188 | [1] | |||
Revenue from external customers | 2,191 | 1,827 | ||||
Inter-segment revenue | 2,191 | 1,828 | [1] | |||
Revenue from external customers includes the following fee and commission income disaggregated by income type: | ||||||
Current account and debit card fees | 208 | 266 | ||||
Insurance, protection and investments | 33 | 31 | ||||
Credit cards | 29 | 35 | ||||
Non-banking and other fees | 35 | 48 | ||||
Total fee and commission income | 305 | 380 | [1] | |||
Fee and commission expense | (154) | (180) | [1] | |||
Net fee and commission income/(expense) | 151 | 200 | ||||
Customer loans | 208,347 | £ 207,010 | ||||
Total assets | 285,614 | 292,332 | ||||
Assets held for sale | 2,645 | 0 | ||||
Customer deposits | 189,370 | 185,707 | ||||
Total liabilities | 268,906 | 276,396 | ||||
Liabilities held for sale | 3,912 | 0 | ||||
Elimination of intersegment amounts | ||||||
Disclosure of operating segments [line items] | ||||||
Inter-segment revenue | 0 | 1 | ||||
Retail Banking | ||||||
Disclosure of operating segments [line items] | ||||||
Net interest income/(expense) | 1,741 | 1,369 | ||||
Non-interest income | 189 | 227 | ||||
Total operating income/(expense) | 1,930 | 1,596 | ||||
Operating expenses before credit impairment losses, provisions and charges | (922) | (983) | ||||
Credit impairment losses | 48 | (214) | ||||
Provisions for other liabilities and charges | (67) | (56) | ||||
Total operating credit impairment losses, provisions and charges | (19) | (270) | ||||
Profit from continuing operations before tax | 989 | 343 | ||||
Revenue from external customers | 2,197 | 1,973 | ||||
Revenue from external customers includes the following fee and commission income disaggregated by income type: | ||||||
Current account and debit card fees | 185 | 245 | ||||
Insurance, protection and investments | 33 | 31 | ||||
Credit cards | 29 | 35 | ||||
Non-banking and other fees | 6 | 20 | ||||
Total fee and commission income | 253 | 331 | ||||
Fee and commission expense | (140) | (164) | ||||
Net fee and commission income/(expense) | 113 | 167 | ||||
Customer loans | 186,706 | 183,404 | ||||
Total assets | 195,480 | 192,070 | ||||
Assets held for sale | 608 | |||||
Customer deposits | 156,713 | 152,167 | ||||
Total liabilities | 157,268 | 152,715 | ||||
Liabilities held for sale | 0 | |||||
Retail Banking | Elimination of intersegment amounts | ||||||
Disclosure of operating segments [line items] | ||||||
Inter-segment revenue | (267) | (377) | ||||
Corporate & Commercial Banking | ||||||
Disclosure of operating segments [line items] | ||||||
Net interest income/(expense) | 203 | 181 | ||||
Non-interest income | 51 | 49 | ||||
Total operating income/(expense) | 254 | 230 | ||||
Operating expenses before credit impairment losses, provisions and charges | (177) | (161) | ||||
Credit impairment losses | 22 | (150) | ||||
Provisions for other liabilities and charges | (5) | 3 | ||||
Total operating credit impairment losses, provisions and charges | 17 | (147) | ||||
Profit from continuing operations before tax | 94 | (78) | ||||
Revenue from external customers | 273 | 278 | ||||
Revenue from external customers includes the following fee and commission income disaggregated by income type: | ||||||
Current account and debit card fees | 23 | 21 | ||||
Insurance, protection and investments | 0 | 0 | ||||
Credit cards | 0 | 0 | ||||
Non-banking and other fees | 29 | 24 | ||||
Total fee and commission income | 52 | 45 | ||||
Fee and commission expense | (10) | (12) | ||||
Net fee and commission income/(expense) | 42 | 33 | ||||
Customer loans | 17,055 | 17,626 | ||||
Total assets | 17,055 | 17,626 | ||||
Assets held for sale | 0 | |||||
Customer deposits | 25,244 | 24,985 | ||||
Total liabilities | 25,263 | 25,011 | ||||
Liabilities held for sale | 0 | |||||
Corporate & Commercial Banking | Elimination of intersegment amounts | ||||||
Disclosure of operating segments [line items] | ||||||
Inter-segment revenue | (19) | (48) | ||||
Corporate & Investment Banking | ||||||
Disclosure of operating segments [line items] | ||||||
Net interest income/(expense) | 0 | 0 | ||||
Non-interest income | 0 | 0 | ||||
Total operating income/(expense) | 0 | 0 | ||||
Operating expenses before credit impairment losses, provisions and charges | 0 | 0 | ||||
Credit impairment losses | 0 | 0 | ||||
Provisions for other liabilities and charges | 0 | 0 | ||||
Total operating credit impairment losses, provisions and charges | 0 | 0 | ||||
Profit from continuing operations before tax | 0 | 0 | ||||
Revenue from external customers | 0 | 0 | ||||
Revenue from external customers includes the following fee and commission income disaggregated by income type: | ||||||
Current account and debit card fees | 0 | 0 | ||||
Insurance, protection and investments | 0 | 0 | ||||
Credit cards | 0 | 0 | ||||
Non-banking and other fees | 0 | 0 | ||||
Total fee and commission income | 0 | 0 | ||||
Fee and commission expense | 0 | 0 | ||||
Net fee and commission income/(expense) | 0 | 0 | ||||
Customer loans | 1,913 | 2,784 | ||||
Total assets | 2,057 | 2,784 | ||||
Assets held for sale | 2,037 | |||||
Customer deposits | 3,817 | 6,506 | ||||
Total liabilities | 3,912 | 6,517 | ||||
Liabilities held for sale | 3,912 | |||||
Corporate & Investment Banking | Elimination of intersegment amounts | ||||||
Disclosure of operating segments [line items] | ||||||
Inter-segment revenue | 0 | 0 | ||||
Corporate Centre | ||||||
Disclosure of operating segments [line items] | ||||||
Net interest income/(expense) | (39) | (22) | ||||
Non-interest income | 46 | 24 | ||||
Total operating income/(expense) | 7 | 2 | ||||
Operating expenses before credit impairment losses, provisions and charges | (229) | (68) | ||||
Credit impairment losses | 0 | 0 | ||||
Provisions for other liabilities and charges | (118) | (11) | ||||
Total operating credit impairment losses, provisions and charges | (118) | (11) | ||||
Profit from continuing operations before tax | (340) | (77) | ||||
Revenue from external customers | (279) | (424) | ||||
Revenue from external customers includes the following fee and commission income disaggregated by income type: | ||||||
Current account and debit card fees | 0 | 0 | ||||
Insurance, protection and investments | 0 | 0 | ||||
Credit cards | 0 | 0 | ||||
Non-banking and other fees | 0 | 4 | ||||
Total fee and commission income | 0 | 4 | ||||
Fee and commission expense | (4) | (4) | ||||
Net fee and commission income/(expense) | (4) | 0 | ||||
Customer loans | 2,673 | 3,196 | ||||
Total assets | 71,022 | 79,852 | ||||
Assets held for sale | 0 | |||||
Customer deposits | 3,596 | 2,049 | ||||
Total liabilities | 82,463 | £ 92,153 | ||||
Liabilities held for sale | 0 | |||||
Corporate Centre | Elimination of intersegment amounts | ||||||
Disclosure of operating segments [line items] | ||||||
Inter-segment revenue | £ 286 | £ 426 | ||||
|
Other Operating Income (Detail) - GBP (£) £ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Net Trading And Other Income [abstract] | ||
Loss on repurchase of debt securities and subordinated liabilities | £ 27 | £ 17 |
Gains on disposals of UK head office site | £ 71 |
Operating Expenses Before Credit Impairment Losses, Provisions and Charges - Summary of Operating Expenses Before Credit Impairment Losses, Provisions and Charges (Detail) - GBP (£) £ in Millions |
6 Months Ended | ||||
---|---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
||||
Expenses by nature [abstract] | |||||
Staff costs | £ 577 | £ 576 | |||
Other administration expenses | 431 | 367 | |||
Depreciation, amortisation and impairment | 320 | 269 | |||
Total operating expenses before impairment losses, provisions and charges | £ 1,328 | £ 1,212 | [1] | ||
|
Operating Expenses Before Credit Impairment Losses, Provisions and Charges - Additional Information (Detail) - GBP (£) £ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Operating Expenses Before Credit Impairment Losses Provision And Charges [Line Items] | ||
Expense relating to short-term leases | £ 10 | £ 4 |
Accumulated depreciation | ||
Operating Expenses Before Credit Impairment Losses Provision And Charges [Line Items] | ||
Impairment during the period | £ 105 | £ 24 |
Credit Impairment Losses and Provisions - Summary of Impairment Losses and Provisions (Detail) - GBP (£) £ in Millions |
6 Months Ended | ||||
---|---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
||||
Disclosure Of Credit Impairment Loss And Provisions [Abstract] | |||||
Loans and advances to customers | £ (33) | £ 384 | |||
Recoveries of loans and advances, net of collection costs | (13) | (15) | |||
Off-balance sheet exposures | (24) | (5) | |||
Impairment loss on financial assets | (70) | 364 | [1] | ||
Provisions for other liabilities and charges (excluding off-balance sheet credit exposures) | 191 | 64 | |||
Provisions for residual value and voluntary termination | (1) | 0 | |||
Provisions for other liabilities and charges | 190 | 64 | [1] | ||
Total operating credit impairment loss/(release), provisions and charges | £ 120 | £ 428 | [1] | ||
|
Credit Impairment Losses and Provisions - Additional Information (Detail) - GBP (£) £ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Disclosure Of Credit Impairment Loss And Provisions [Abstract] | ||
Impairment losses on loans and advances to banks | £ 0 | £ 0 |
Impairment losses on non-trading reverse repurchase agreements | 0 | 0 |
Impairment losses on other financial assets at amortised cost | 0 | 0 |
Impairment losses on financial assets at FVOCI | £ 0 | £ 0 |
Taxation - Additional Information (Detail) |
6 Months Ended | |
---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Income Tax Expense Benefits [Line Items] | ||
Effective tax rate (percentage) | 27.60% | 25.50% |
Increase in applicable tax rate | 2.00% | |
Applicable tax rate (percentage) | 19.00% | 19.00% |
At 1 April 2023 | ||
Income Tax Expense Benefits [Line Items] | ||
Increase in applicable tax rate | 6.00% | |
Applicable tax rate (percentage) | 25.00% |
Taxation - Schedule of Tax on Profit Before Tax Differs from Theoretical Amount that Arise Using Basic Corporation Tax Rate (Detail) - GBP (£) £ in Millions |
6 Months Ended | ||||
---|---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
||||
Major components of tax expense (income) [abstract] | |||||
Profit from continuing operations before tax | £ 743 | £ 188 | [1] | ||
Tax calculated at a tax rate of 19% (H120: 19%) | 141 | 36 | |||
Bank surcharge on profits | 49 | 9 | |||
Non-deductible preference dividends paid | 6 | 3 | |||
Non-deductible UK Bank Levy | 14 | 6 | |||
Other non-deductible costs and non-taxable income | 14 | 4 | |||
Effect of change in tax rate on deferred tax provision | 13 | 7 | |||
Tax relief on dividends in respect of other equity instruments | (32) | (13) | |||
Adjustment to prior year provisions | 0 | (4) | |||
Tax on profit from continuing operations | £ 205 | £ 48 | [1] | ||
|
Dividends on Ordinary Shares (Detail) - GBP (£) |
6 Months Ended | |
---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Dividends On Ordinary Shares [Abstract] | ||
Dividends declared and paid | £ 0 | £ 0 |
Derivative Financial Instruments - Notional Amounts and Fair Values of Derivatives (Detail) - GBP (£) £ in Millions |
Jun. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Disclosure of detailed information about hedges [line items] | ||
Notional amount | £ 180,519 | £ 197,215 |
Fair value assets | 2,002 | 3,406 |
Fair value liabilities | 1,063 | 1,584 |
Derivatives held for trading: | ||
Disclosure of detailed information about hedges [line items] | ||
Notional amount | 45,245 | 56,251 |
Derivatives held for hedging | ||
Disclosure of detailed information about hedges [line items] | ||
Notional amount | 135,274 | 140,964 |
Fair value hedges | Derivatives held for hedging | ||
Disclosure of detailed information about hedges [line items] | ||
Notional amount | 84,909 | 94,537 |
Cash flow hedges | Derivatives held for hedging | ||
Disclosure of detailed information about hedges [line items] | ||
Notional amount | 50,365 | 46,427 |
Exchange rate contracts | Derivatives held for trading: | ||
Disclosure of detailed information about hedges [line items] | ||
Notional amount | 12,227 | 14,951 |
Exchange rate contracts | Fair value hedges | Derivatives held for hedging | ||
Disclosure of detailed information about hedges [line items] | ||
Notional amount | 598 | 789 |
Exchange rate contracts | Cash flow hedges | Derivatives held for hedging | ||
Disclosure of detailed information about hedges [line items] | ||
Notional amount | 23,756 | 27,020 |
Interest rate contracts | Derivatives held for trading: | ||
Disclosure of detailed information about hedges [line items] | ||
Notional amount | 31,912 | 40,160 |
Interest rate contracts | Fair value hedges | Derivatives held for hedging | ||
Disclosure of detailed information about hedges [line items] | ||
Notional amount | 84,311 | 93,748 |
Interest rate contracts | Cash flow hedges | Derivatives held for hedging | ||
Disclosure of detailed information about hedges [line items] | ||
Notional amount | 26,609 | 19,407 |
Equity and credit contracts | Derivatives held for trading: | ||
Disclosure of detailed information about hedges [line items] | ||
Notional amount | 1,106 | 1,140 |
Derivative assets | ||
Disclosure of detailed information about hedges [line items] | ||
Cash collateral received subject to enforceable master netting arrangement or similar agreement not set off against financial assets | 401 | 330 |
Derivatives | ||
Disclosure of detailed information about hedges [line items] | ||
Cash collateral pledged subject to enforceable master netting arrangement or similar agreement not set off against financial liabilities | 245 | 651 |
Fair value | ||
Disclosure of detailed information about hedges [line items] | ||
Fair value assets | 2,002 | 3,406 |
Fair value liabilities | 1,063 | 1,584 |
Fair value | Derivatives held for trading: | ||
Disclosure of detailed information about hedges [line items] | ||
Fair value assets | 915 | 1,406 |
Fair value liabilities | 708 | 1,015 |
Fair value | Derivatives held for hedging | ||
Disclosure of detailed information about hedges [line items] | ||
Fair value assets | 2,471 | 3,754 |
Fair value liabilities | 1,739 | 2,323 |
Fair value | Fair value hedges | Derivatives held for hedging | ||
Disclosure of detailed information about hedges [line items] | ||
Fair value assets | 1,033 | 1,309 |
Fair value liabilities | 1,320 | 1,891 |
Fair value | Cash flow hedges | Derivatives held for hedging | ||
Disclosure of detailed information about hedges [line items] | ||
Fair value assets | 1,438 | 2,445 |
Fair value liabilities | 419 | 432 |
Fair value | Exchange rate contracts | Derivatives held for trading: | ||
Disclosure of detailed information about hedges [line items] | ||
Fair value assets | 229 | 395 |
Fair value liabilities | 215 | 418 |
Fair value | Exchange rate contracts | Fair value hedges | Derivatives held for hedging | ||
Disclosure of detailed information about hedges [line items] | ||
Fair value assets | 52 | 84 |
Fair value liabilities | 1 | 6 |
Fair value | Exchange rate contracts | Cash flow hedges | Derivatives held for hedging | ||
Disclosure of detailed information about hedges [line items] | ||
Fair value assets | 1,131 | 1,978 |
Fair value liabilities | 381 | 409 |
Fair value | Interest rate contracts | Derivatives held for trading: | ||
Disclosure of detailed information about hedges [line items] | ||
Fair value assets | 545 | 888 |
Fair value liabilities | 440 | 542 |
Fair value | Interest rate contracts | Fair value hedges | Derivatives held for hedging | ||
Disclosure of detailed information about hedges [line items] | ||
Fair value assets | 981 | 1,225 |
Fair value liabilities | 1,319 | 1,885 |
Fair value | Interest rate contracts | Cash flow hedges | Derivatives held for hedging | ||
Disclosure of detailed information about hedges [line items] | ||
Fair value assets | 307 | 467 |
Fair value liabilities | 38 | 23 |
Fair value | Equity and credit contracts | Derivatives held for trading: | ||
Disclosure of detailed information about hedges [line items] | ||
Fair value assets | 141 | 123 |
Fair value liabilities | 53 | 55 |
Fair value | Derivative netting | ||
Disclosure of detailed information about hedges [line items] | ||
Fair value assets | (1,384) | (1,754) |
Fair value liabilities | £ (1,384) | £ (1,754) |
Other Financial Assets at Fair Value Through Profit or Loss - Summary of Other Financial Assets at Fair Value Through Profit or Loss (Detail) - GBP (£) £ in Millions |
Jun. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Disclosure of other financial assets at fair value through profit or loss [Line Items] | ||
Financial assets at fair value through profit or loss | £ 179 | £ 208 |
Loans and advances to customers | ||
Disclosure of other financial assets at fair value through profit or loss [Line Items] | ||
Financial assets at fair value through profit or loss | 74 | 99 |
Debt securities | ||
Disclosure of other financial assets at fair value through profit or loss [Line Items] | ||
Financial assets at fair value through profit or loss | 105 | 109 |
Loans to housing associations | Loans and advances to customers | ||
Disclosure of other financial assets at fair value through profit or loss [Line Items] | ||
Financial assets at fair value through profit or loss | 12 | 13 |
Other loans | Loans and advances to customers | ||
Disclosure of other financial assets at fair value through profit or loss [Line Items] | ||
Financial assets at fair value through profit or loss | £ 62 | £ 86 |
Loans and Advances to Customers - Summary of Net Loans and Advances to Customers (Detail) - GBP (£) £ in Millions |
Jun. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Net Loans And Advances To Customers [Abstract] | ||
Loans and advances to customers | £ 209,188 | £ 210,107 |
Credit impairment loss allowances on loans and advances to customers | (1,141) | (1,303) |
RV and voluntary termination provisions on finance leases | (49) | (54) |
Net loans and advances to customers | £ 207,998 | £ 208,750 |
Securitisations and Covered Bonds - Analysis of Securitisations and Covered Bonds (Detail) £ in Millions |
Jun. 30, 2021
GBP (£)
|
Jun. 30, 2021
EUR (€)
|
Dec. 31, 2020
GBP (£)
|
Dec. 31, 2020
EUR (€)
|
---|---|---|---|---|
Disclosure of securitisations and covered bonds [line items] | ||||
Gross assets | £ 25,164 | £ 33,432 | ||
Notional amount | 180,519 | 197,215 | ||
Euro 35bn Global Covered Bond Programme | ||||
Disclosure of securitisations and covered bonds [line items] | ||||
Notional amount | € | € 35,000,000,000 | € 35,000,000,000 | ||
Securitisation programmes | ||||
Disclosure of securitisations and covered bonds [line items] | ||||
Gross assets | 6,164 | 9,762 | ||
Securitisation programmes | Mortgage-backed master trust structures: | ||||
Disclosure of securitisations and covered bonds [line items] | ||||
Gross assets | 4,736 | 8,113 | ||
Securitisation programmes | Other asset-backed securitisation structures: | ||||
Disclosure of securitisations and covered bonds [line items] | ||||
Gross assets | 1,428 | 1,649 | ||
Holmes | Securitisation programmes | Mortgage-backed master trust structures: | ||||
Disclosure of securitisations and covered bonds [line items] | ||||
Gross assets | 2,566 | 3,073 | ||
Fosse | Securitisation programmes | Mortgage-backed master trust structures: | ||||
Disclosure of securitisations and covered bonds [line items] | ||||
Gross assets | 2,170 | 2,258 | ||
Langton | Securitisation programmes | Mortgage-backed master trust structures: | ||||
Disclosure of securitisations and covered bonds [line items] | ||||
Gross assets | 0 | 2,782 | ||
Motor | Securitisation programmes | Other asset-backed securitisation structures: | ||||
Disclosure of securitisations and covered bonds [line items] | ||||
Gross assets | 103 | 189 | ||
Auto ABS UK Loans | Securitisation programmes | Other asset-backed securitisation structures: | ||||
Disclosure of securitisations and covered bonds [line items] | ||||
Gross assets | 1,325 | 1,460 | ||
Euro 35bn Global Covered Bond Programme | Covered bond programmes | ||||
Disclosure of securitisations and covered bonds [line items] | ||||
Gross assets | £ 19,000 | £ 23,670 |
Securitisations and Covered Bonds - Summary of Issuances and Redemptions of Securitisation and Covered Bond Programme (Detail) - GBP (£) £ in Billions |
6 Months Ended | |
---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Internal issuances | ||
Issuances And Redemptions Of Securitisation And Covered Bond [Line items] | ||
Internal and external issuances | £ 0.0 | £ 0.0 |
Internal and external redemptions | 2.6 | 0.2 |
Internal issuances | Covered bond programmes | ||
Issuances And Redemptions Of Securitisation And Covered Bond [Line items] | ||
Internal and external issuances | 0.0 | 0.0 |
Internal and external redemptions | 0.0 | 0.0 |
External issuances | ||
Issuances And Redemptions Of Securitisation And Covered Bond [Line items] | ||
Internal and external issuances | 0.0 | 3.0 |
Internal and external redemptions | 4.9 | 2.5 |
External issuances | Covered bond programmes | ||
Issuances And Redemptions Of Securitisation And Covered Bond [Line items] | ||
Internal and external issuances | 0.0 | 3.0 |
Internal and external redemptions | 4.5 | 1.8 |
Holmes | Internal issuances | Mortgage-backed master trust structures: | ||
Issuances And Redemptions Of Securitisation And Covered Bond [Line items] | ||
Internal and external issuances | 0.0 | 0.0 |
Internal and external redemptions | 0.0 | 0.1 |
Holmes | External issuances | Mortgage-backed master trust structures: | ||
Issuances And Redemptions Of Securitisation And Covered Bond [Line items] | ||
Internal and external issuances | 0.0 | 0.0 |
Internal and external redemptions | 0.3 | 0.5 |
Langton | Internal issuances | Mortgage-backed master trust structures: | ||
Issuances And Redemptions Of Securitisation And Covered Bond [Line items] | ||
Internal and external issuances | 0.0 | 0.0 |
Internal and external redemptions | 2.4 | 0.0 |
Langton | External issuances | Mortgage-backed master trust structures: | ||
Issuances And Redemptions Of Securitisation And Covered Bond [Line items] | ||
Internal and external issuances | 0.0 | 0.0 |
Internal and external redemptions | 0.0 | 0.0 |
Motor | Internal issuances | Other asset-backed securitisation structures: | ||
Issuances And Redemptions Of Securitisation And Covered Bond [Line items] | ||
Internal and external issuances | 0.0 | 0.0 |
Internal and external redemptions | 0.1 | 0.1 |
Motor | External issuances | Other asset-backed securitisation structures: | ||
Issuances And Redemptions Of Securitisation And Covered Bond [Line items] | ||
Internal and external issuances | 0.0 | 0.0 |
Internal and external redemptions | 0.0 | 0.1 |
Auto ABS UK Loans | Internal issuances | Other asset-backed securitisation structures: | ||
Issuances And Redemptions Of Securitisation And Covered Bond [Line items] | ||
Internal and external issuances | 0.0 | 0.0 |
Internal and external redemptions | 0.1 | 0.0 |
Auto ABS UK Loans | External issuances | Other asset-backed securitisation structures: | ||
Issuances And Redemptions Of Securitisation And Covered Bond [Line items] | ||
Internal and external issuances | 0.0 | 0.0 |
Internal and external redemptions | £ 0.1 | £ 0.1 |
Reverse Repurchase Agreements - Non Trading - Summary of Reverse Repurchase Agreements - Non Trading (Detail) - GBP (£) £ in Millions |
Jun. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Disclosure of reserve repurchase agreements non-trading [line items] | ||
Reverse repurchase agreements – non trading | £ 18,197 | £ 19,599 |
Agreements with banks | ||
Disclosure of reserve repurchase agreements non-trading [line items] | ||
Reverse repurchase agreements – non trading | 1,250 | 1,258 |
Agreements with customers | ||
Disclosure of reserve repurchase agreements non-trading [line items] | ||
Reverse repurchase agreements – non trading | £ 16,947 | £ 18,341 |
Other Financial Assets At Amortised Cost - Summary of Other Financial Assets at Amortised Cost (Detail) - Other financial assets - GBP (£) £ in Millions |
Jun. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Financial assets at amortised cost [line items] | ||
Financial assets at amortised cost | £ 530 | £ 1,163 |
Asset backed securities | ||
Financial assets at amortised cost [line items] | ||
Financial assets at amortised cost | 467 | 491 |
Debt securities | ||
Financial assets at amortised cost [line items] | ||
Financial assets at amortised cost | £ 63 | £ 672 |
Financial Assets At Fair Value Through Other Comprehensive Income - Summary of Financial Assets at Fair Value Through Other Comprehensive Income (Detail) - GBP (£) £ in Millions |
Jun. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Disclosure of financial assets at fair value through other comprehensive income [line items] | ||
Financial assets at fair value through other comprehensive income | £ 6,368 | £ 8,950 |
Debt securities | ||
Disclosure of financial assets at fair value through other comprehensive income [line items] | ||
Financial assets at fair value through other comprehensive income | 6,348 | 8,929 |
Loans and advances to customers | ||
Disclosure of financial assets at fair value through other comprehensive income [line items] | ||
Financial assets at fair value through other comprehensive income | £ 20 | £ 21 |
Intangible Assets - Schedule of Goodwill for Cash Generating Units (Detail) - GBP (£) £ in Millions |
Jun. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Disclosure of information for cash-generating units [line items] | ||
Goodwill | £ 1,203 | £ 1,203 |
Personal financial services | ||
Disclosure of information for cash-generating units [line items] | ||
Goodwill | £ 1,169 | £ 1,169 |
Discount rate | 14.60% | 13.60% |
Growth rate beyond initial cash flow projections | 1.60% | 1.60% |
Private banking | ||
Disclosure of information for cash-generating units [line items] | ||
Goodwill | £ 30 | £ 30 |
Discount rate | 11.00% | 8.90% |
Growth rate beyond initial cash flow projections | 1.60% | 1.60% |
Other | ||
Disclosure of information for cash-generating units [line items] | ||
Goodwill | £ 4 | £ 4 |
Discount rate | 14.60% | 13.60% |
Growth rate beyond initial cash flow projections | 1.60% | 1.60% |
Property, Plant and Equipment (Detail) - GBP (£) £ in Millions |
6 Months Ended | 12 Months Ended | |
---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
Dec. 31, 2020 |
|
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment at beginning of period | £ 1,734 | ||
Property, plant and equipment at end of period | 1,596 | £ 1,734 | |
Accelerated depreciation expense | 4 | 9 | |
Construction in progress | 72 | 55 | |
Property | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment at beginning of period | 783 | ||
Property, plant and equipment at end of period | 636 | 783 | |
Office fixtures and equipment | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment at beginning of period | 307 | ||
Property, plant and equipment at end of period | 213 | 307 | |
Computer software | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment at beginning of period | 2 | ||
Property, plant and equipment at end of period | 2 | 2 | |
Operating lease assets | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment at beginning of period | 542 | ||
Property, plant and equipment at end of period | 616 | 542 | |
Right-of-use assets | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment at beginning of period | 100 | ||
Property, plant and equipment at end of period | 129 | 100 | |
Cost | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment at beginning of period | 4,021 | £ 4,095 | 4,095 |
Additions | 288 | 299 | |
Disposals | (715) | (373) | |
Property, plant and equipment at end of period | 3,594 | 4,021 | |
Cost | Property | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment at beginning of period | 1,272 | 1,270 | 1,270 |
Additions | 23 | 61 | |
Disposals | (306) | (59) | |
Property, plant and equipment at end of period | 989 | 1,272 | |
Cost | Office fixtures and equipment | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment at beginning of period | 1,375 | 1,436 | 1,436 |
Additions | 12 | 43 | |
Disposals | (267) | (104) | |
Property, plant and equipment at end of period | 1,120 | 1,375 | |
Cost | Computer software | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment at beginning of period | 436 | 439 | 439 |
Additions | 0 | 2 | |
Disposals | 0 | (5) | |
Property, plant and equipment at end of period | 436 | 436 | |
Cost | Operating lease assets | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment at beginning of period | 720 | 738 | 738 |
Additions | 194 | 185 | |
Disposals | (122) | (203) | |
Property, plant and equipment at end of period | 792 | 720 | |
Cost | Right-of-use assets | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment at beginning of period | 218 | 212 | 212 |
Additions | 59 | 8 | |
Disposals | (20) | (2) | |
Property, plant and equipment at end of period | 257 | 218 | |
Accumulated depreciation | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment at beginning of period | (2,287) | (2,128) | (2,128) |
Additions | (121) | (316) | |
Disposals | 515 | 181 | |
Impairment during the period | 105 | 24 | |
Property, plant and equipment at end of period | (1,998) | (2,287) | |
Accumulated depreciation | Property | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment at beginning of period | (489) | (454) | (454) |
Additions | (17) | (55) | |
Disposals | 210 | 44 | |
Impairment during the period | 57 | 24 | |
Property, plant and equipment at end of period | (353) | (489) | |
Accumulated depreciation | Office fixtures and equipment | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment at beginning of period | (1,068) | (1,016) | (1,016) |
Additions | (46) | (111) | |
Disposals | 236 | 59 | |
Impairment during the period | 29 | 0 | |
Property, plant and equipment at end of period | (907) | (1,068) | |
Accumulated depreciation | Computer software | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment at beginning of period | (434) | (434) | (434) |
Additions | 0 | 0 | |
Disposals | 0 | 0 | |
Impairment during the period | 0 | 0 | |
Property, plant and equipment at end of period | (434) | (434) | |
Accumulated depreciation | Operating lease assets | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment at beginning of period | (178) | (164) | (164) |
Additions | (48) | (92) | |
Disposals | 50 | 78 | |
Impairment during the period | 0 | 0 | |
Property, plant and equipment at end of period | (176) | (178) | |
Accumulated depreciation | Right-of-use assets | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment at beginning of period | (118) | (60) | (60) |
Additions | (10) | (58) | |
Disposals | 19 | 0 | |
Impairment during the period | 19 | £ 0 | |
Property, plant and equipment at end of period | £ (128) | £ (118) |
Other Financial Liabilities at Fair Value Through Profit or Loss - Summary of Other Financial Liabilities at Fair Value Through Profit or Loss (Detail) £ in Millions |
Jun. 30, 2021
GBP (£)
|
Jun. 30, 2021
USD ($)
|
Dec. 31, 2020
GBP (£)
|
Dec. 31, 2020
USD ($)
|
---|---|---|---|---|
Disclosure of other financial liabilities at fair value through profit or loss [line items] | ||||
Other financial liabilities at fair value through profit or loss | £ 1,023 | £ 1,434 | ||
Notional amount | 180,519 | 197,215 | ||
US$30bn Euro Medium Term Note Programme | ||||
Disclosure of other financial liabilities at fair value through profit or loss [line items] | ||||
Other financial liabilities at fair value through profit or loss | 96 | 102 | ||
Notional amount | $ | $ 30,000,000,000 | $ 30,000,000,000 | ||
Structured Notes Programmes | ||||
Disclosure of other financial liabilities at fair value through profit or loss [line items] | ||||
Other financial liabilities at fair value through profit or loss | 431 | 805 | ||
Eurobonds | ||||
Disclosure of other financial liabilities at fair value through profit or loss [line items] | ||||
Other financial liabilities at fair value through profit or loss | 144 | 150 | ||
Structured deposits | ||||
Disclosure of other financial liabilities at fair value through profit or loss [line items] | ||||
Other financial liabilities at fair value through profit or loss | 347 | 375 | ||
Collateral and associated financial guarantees | ||||
Disclosure of other financial liabilities at fair value through profit or loss [line items] | ||||
Other financial liabilities at fair value through profit or loss | £ 5 | £ 2 |
Deposits by Customers - Schedule of Deposits by Customers (Detail) - GBP (£) £ in Millions |
Jun. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Disclosure of deposits from customers [line items] | ||
Deposits by customers | £ 193,317 | £ 195,135 |
Demand and time deposits | ||
Disclosure of deposits from customers [line items] | ||
Deposits by customers | 185,179 | 185,879 |
Amounts due to other Santander UK Group Holdings plc subsidiaries | ||
Disclosure of deposits from customers [line items] | ||
Deposits by customers | 67 | 59 |
Amounts due to Santander UK Group Holdings plc | ||
Disclosure of deposits from customers [line items] | ||
Deposits by customers | 6,912 | 7,883 |
Amounts due to fellow Banco Santander subsidiaries and joint ventures | ||
Disclosure of deposits from customers [line items] | ||
Deposits by customers | 1,159 | 1,314 |
Equity Index Linked Deposits | ||
Disclosure of deposits from customers [line items] | ||
Deposits by customers | 578 | 577 |
Capital amount guaranteed or protected | 578 | 577 |
Capital amount of return guaranteed | £ 2 | £ 2 |
Deposits by Banks - Schedule of Deposits by Banks (Detail) - GBP (£) £ in Millions |
Jun. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Disclosure of deposits from banks [line items] | ||
Deposits by banks | £ 20,502 | £ 20,958 |
Drawdown from TFS | 3,300 | 6,300 |
Drawdown from TFSME | 15,200 | 11,700 |
Items in the course of transmission | ||
Disclosure of deposits from banks [line items] | ||
Deposits by banks | 497 | 375 |
Deposits held as collateral | ||
Disclosure of deposits from banks [line items] | ||
Deposits by banks | 1,034 | 2,063 |
Other deposits | ||
Disclosure of deposits from banks [line items] | ||
Deposits by banks | 18,951 | 18,519 |
Amounts due to Santander UK subsidiaries | ||
Disclosure of deposits from banks [line items] | ||
Deposits by banks | £ 20 | £ 1 |
Repurchase Agreements - Non Trading - Summary of Repurchase Agreements Non Trading (Detail) - GBP (£) £ in Millions |
Jun. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Disclosure Of Repurchase Agreements [line items] | ||
Repurchase agreements - non trading | £ 14,089 | £ 15,848 |
Agreements with banks | ||
Disclosure Of Repurchase Agreements [line items] | ||
Repurchase agreements - non trading | 2,898 | 6,358 |
Agreements with customers | ||
Disclosure Of Repurchase Agreements [line items] | ||
Repurchase agreements - non trading | £ 11,191 | £ 9,490 |
Debt Securities In Issue - Summary of Debt Securities in Issue (Detail) £ in Millions |
Jun. 30, 2021
GBP (£)
|
Jun. 30, 2021
EUR (€)
|
Jun. 30, 2021
USD ($)
|
Dec. 31, 2020
GBP (£)
|
Dec. 31, 2020
EUR (€)
|
Dec. 31, 2020
USD ($)
|
---|---|---|---|---|---|---|
Debt securities in issue [line items] | ||||||
Debt securities | £ 29,140 | £ 35,566 | ||||
Notional amount | 180,519 | 197,215 | ||||
Medium-term notes | ||||||
Debt securities in issue [line items] | ||||||
Debt securities | 6,908 | 8,212 | ||||
Euro 35bn Global Covered Bond Programme | ||||||
Debt securities in issue [line items] | ||||||
Debt securities | 14,677 | 19,285 | ||||
Notional amount | € | € 35,000,000,000 | € 35,000,000,000 | ||||
US$20bn Commercial Paper Programmes | ||||||
Debt securities in issue [line items] | ||||||
Debt securities | 3,052 | 2,824 | ||||
Notional amount | $ | $ 20,000,000,000 | $ 20,000,000,000 | ||||
Certificates of deposit | ||||||
Debt securities in issue [line items] | ||||||
Debt securities | 2,466 | 2,858 | ||||
Credit linked notes | ||||||
Debt securities in issue [line items] | ||||||
Debt securities | 58 | 57 | ||||
Securitisation programmes | ||||||
Debt securities in issue [line items] | ||||||
Debt securities | £ 1,979 | £ 2,330 |
Subordinated Liabilities - Schedule of Subordinated Liabilities (Detail) - GBP (£) £ in Millions |
Jun. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Disclosure Of Subordinated Liabilities [Abstract] | ||
Subordinated liabilities | £ 2,513 | £ 2,556 |
Subordinated Liabilities - Additional Information (Detail) - GBP (£) £ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Disclosure Of Subordinated Liabilities [Abstract] | ||
Loss on repurchase of debt securities and subordinated liabilities | £ 27 | £ 17 |
Provisions - Summary of Provisions Reconciliation (Detail) £ in Millions |
6 Months Ended |
---|---|
Jun. 30, 2021
GBP (£)
| |
Disclosure of other provisions [line items] | |
Beginning balance | £ 464 |
Additional provisions | 191 |
Provisions released | (24) |
Utilisation and other | (187) |
Ending balance | 444 |
PPI | |
Disclosure of other provisions [line items] | |
Beginning balance | 76 |
Additional provisions | 0 |
Provisions released | 0 |
Utilisation and other | (39) |
Ending balance | 37 |
Other products | |
Disclosure of other provisions [line items] | |
Beginning balance | 8 |
Additional provisions | 0 |
Provisions released | 0 |
Utilisation and other | 0 |
Ending balance | 8 |
Bank Levy | |
Disclosure of other provisions [line items] | |
Beginning balance | 34 |
Additional provisions | 0 |
Provisions released | 0 |
Utilisation and other | (34) |
Ending balance | 0 |
Property | |
Disclosure of other provisions [line items] | |
Beginning balance | 45 |
Additional provisions | 43 |
Provisions released | 0 |
Utilisation and other | (9) |
Ending balance | 79 |
Off balance sheet ECL | |
Disclosure of other provisions [line items] | |
Beginning balance | 75 |
Additional provisions | 0 |
Provisions released | (24) |
Utilisation and other | 0 |
Ending balance | 51 |
Regulatory and other | |
Disclosure of other provisions [line items] | |
Beginning balance | 226 |
Additional provisions | 148 |
Provisions released | 0 |
Utilisation and other | (105) |
Ending balance | £ 269 |
Provisions - Additional Information (Detail) - GBP (£) £ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2021 |
Dec. 31, 2020 |
|
Future expected provision number | ||
Provisions | £ 444 | £ 464 |
Additional provisions | 191 | |
PPI | ||
Future expected provision number | ||
Provisions | 37 | 76 |
Additional provisions | 0 | |
Property | ||
Future expected provision number | ||
Provisions | 79 | £ 45 |
Additional provisions | 43 | |
Regulatory and other provisions, multi-year transformation programme | ||
Future expected provision number | ||
Additional provisions | 69 | |
Regulatory and other provisions | ||
Future expected provision number | ||
Provisions for redundancy costs related to transformation programs | 57 | |
Operational risk provisions | ||
Future expected provision number | ||
Additional provisions | 50 | |
Legal proceedings provision | ||
Future expected provision number | ||
Additional provisions | £ 13 |
Retirement Benefit Plans - Summary of Retirement Benefit Plans (Detail) - GBP (£) £ in Millions |
Jun. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Assets/(liabilities) | ||
Net defined benefit assets | £ 931 | £ 92 |
Unfunded pension and post retirement medical benefits | ||
Assets/(liabilities) | ||
Surplus (deficit) in plan | (39) | (42) |
Surplus | Funded defined benefit pension scheme | ||
Assets/(liabilities) | ||
Surplus (deficit) in plan | 1,083 | 495 |
Deficit | Funded defined benefit pension scheme | ||
Assets/(liabilities) | ||
Surplus (deficit) in plan | £ (113) | £ (361) |
Retirement Benefit Plans - Additional Information (Detail) - GBP (£) £ in Millions |
6 Months Ended | |||
---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
Mar. 31, 2021 |
Dec. 31, 2020 |
|
Disclosure of net defined benefit liability (asset) [line items] | ||||
Defined contribution expense | £ 33 | £ 33 | ||
Defined benefit expense | 23 | £ 17 | ||
Assets at fair value | 8,708 | £ 12,564 | ||
Longevity swap | ||||
Disclosure of net defined benefit liability (asset) [line items] | ||||
Percentage of pensioner liabilities covered by longevity swap | 85.00% | |||
Assets at fair value | £ 0 |
Retirement Benefit Plans - Summary of Amounts Recognised in Other Comprehensive Income (Detail) - GBP (£) £ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Disclosure of net defined benefit liability (asset) [abstract] | ||
Return on plan assets (excluding amounts included in net interest expense) | £ 383 | £ (1,115) |
Actuarial losses arising from changes in demographic assumptions | 0 | 38 |
Actuarial gains arising from experience adjustments | (30) | (10) |
Actuarial (gains)/losses arising from changes in financial assumptions | (1,098) | 1,463 |
Pension remeasurement | £ (745) | £ 376 |
Retirement Benefit Plans - Summary of Net Assets Recognised (Detail) - GBP (£) £ in Millions |
Jun. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Disclosure of net defined benefit liability (asset) [abstract] | ||
Present value of defined benefit obligations | £ (12,675) | £ (13,887) |
Fair value of scheme assets | 13,606 | 13,979 |
Net defined benefit assets | £ 931 | £ 92 |
Retirement Benefit Plans - Summary of Principal Actuarial Assumptions Used for Defined Benefit Schemes (Detail) |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2021 |
Dec. 31, 2020 |
|
Disclosure of net defined benefit liability (asset) [abstract] | ||
Discount rate for scheme liabilities | 1.90% | 1.30% |
General price inflation | 3.20% | 3.00% |
General salary increase | 1.00% | 1.00% |
Expected rate of pension increase | 3.10% | 2.90% |
Longevity at 60 for current pensioners, on the valuation date: | ||
Males | 27 years 6 months | 27 years 6 months |
Females | 30 years 1 month 6 days | 30 years |
Longevity at 60 for future pensioners currently aged 40, on the valuation date: | ||
Males | 29 years 1 month 6 days | 29 years |
Females | 31 years 7 months 6 days | 31 years 6 months |
Retirement Benefit Plans - Summary of Actuarial Assumption Sensitivities (Detail) - GBP (£) £ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2021 |
Dec. 31, 2020 |
|
Actuarial assumption of discount rates | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Description of changes in methods and assumptions | 25 bps increase | |
Increase (decrease) in defined benefit obligation | £ (573) | £ (662) |
Percentage of reasonably possible increase in actuarial assumption | 0.25% | |
Actuarial assumption of expected rates of inflation | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Description of changes in methods and assumptions | 25 bps increase | |
Increase (decrease) in defined benefit obligation | £ 411 | 480 |
Percentage of reasonably possible increase in actuarial assumption | 0.25% | |
Actuarial assumption of expected rates of inflation | Previously stated | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Increase (decrease) in defined benefit obligation | 365 | |
Actuarial assumption of mortality rates | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Description of changes in methods and assumptions | Each additional year of longevity assumed | |
Increase (decrease) in defined benefit obligation | £ 453 | £ 515 |
Contingent Liabilities and Commitments - Summary of Contingent Liabilities and Commitments (Detail) - GBP (£) £ in Millions |
Jun. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Disclosure of contingent liabilities and commitments [line items] | ||
Guarantees and formal standby facilities, credit lines and other commitments | £ 41,696 | £ 43,160 |
Contingent liability for guarantees | ||
Disclosure of contingent liabilities and commitments [line items] | ||
Guarantees given to third parties | 739 | 939 |
Loan commitments | ||
Disclosure of contingent liabilities and commitments [line items] | ||
Formal standby facilities, credit lines and other commitments | £ 40,957 | £ 42,221 |
Contingent Liabilities and Commitments - Additional Information (Detail) £ in Millions |
6 Months Ended | |||||
---|---|---|---|---|---|---|
Nov. 02, 2015 |
Jun. 30, 2021
EUR (€)
|
Jun. 30, 2021
GBP (£)
|
Jun. 30, 2021
EUR (€)
|
Dec. 31, 2020
GBP (£)
|
Jul. 31, 2020
GBP (£)
|
|
Disclosure of contingent liabilities and commitments [line items] | ||||||
Provisions | £ 444 | £ 464 | ||||
Top of range | ||||||
Disclosure of contingent liabilities and commitments [line items] | ||||||
Santander UK liability under indemnity cap | € | € 39,850,000 | |||||
Bottom of range | ||||||
Disclosure of contingent liabilities and commitments [line items] | ||||||
Losses on litigation settlements | € | € 1,000,000,000 | |||||
AXA France | ||||||
Disclosure of contingent liabilities and commitments [line items] | ||||||
Amount claimed by other party | 636 | |||||
UK&I Banks | ||||||
Disclosure of contingent liabilities and commitments [line items] | ||||||
Preferred stock issued, threshold amount | € | € 0 | |||||
Genworth Financial International Holdings Inc | ||||||
Disclosure of contingent liabilities and commitments [line items] | ||||||
Amount awarded to other party | £ 624 | |||||
Visa Europe Ltd | ||||||
Disclosure of contingent liabilities and commitments [line items] | ||||||
Visa Europe Ltd sale to Visa Inc | 100.00% | |||||
Compliance with Consumer Credit Act | ||||||
Disclosure of contingent liabilities and commitments [line items] | ||||||
Provisions | £ 41 | £ 47 |
Other Equity Instruments - Summary of Other Equity Instruments (Detail) |
1 Months Ended | 6 Months Ended | 12 Months Ended |
---|---|---|---|
Mar. 31, 2021
GBP (£)
|
Jun. 30, 2021
GBP (£)
|
Dec. 31, 2020
GBP (£)
|
|
Disclosure of other equity instruments [line items] | |||
Other equity instruments | £ 2,191,000,000 | £ 2,191,000,000 | |
£300m Step-up Callable Perpetual Reserve Capital Instruments | |||
Disclosure of other equity instruments [line items] | |||
Capital securities issued | £ 300,000,000 | 300,000,000 | |
Interest rate | 0.07037 | ||
Other equity interest maturity period | 2026-02 | ||
Other equity instruments | £ 235,000,000 | 235,000,000 | |
£500m Fixed Rate Reset Perpetual AT1 Capital Securities | |||
Disclosure of other equity instruments [line items] | |||
Capital securities issued | £ 500,000,000 | 500,000,000 | |
Interest rate | 0.0675 | ||
Other equity interest maturity period | 2024-06 | ||
Other equity instruments | £ 496,000,000 | 496,000,000 | |
£750m Fixed Rate Reset Perpetual AT1 Capital Securities | |||
Disclosure of other equity instruments [line items] | |||
Capital securities issued | £ 750,000,000 | 750,000,000 | |
Interest rate | 0.07375 | ||
Other equity interest maturity period | 2022-06 | ||
Other equity instruments | £ 750,000,000 | 750,000,000 | |
£500m Fixed Rate Reset Perpetual AT1 Capital Securities | |||
Disclosure of other equity instruments [line items] | |||
Capital securities issued | £ 500,000,000 | 500,000,000 | |
Interest rate | 0.0518 | 0.0518 | |
Other equity instruments | £ 0 | 210,000,000 | |
£500m Fixed Rate Reset Perpetual AT1 Capital Securities | |||
Disclosure of other equity instruments [line items] | |||
Capital securities issued | £ 500,000,000 | 500,000,000 | |
Interest rate | 0.0630 | ||
Other equity interest maturity period | 2025-03 | ||
Other equity instruments | £ 500,000,000 | 500,000,000 | |
£210m Fixed Rate Reset Perpetual AT1 Capital Securities | |||
Disclosure of other equity instruments [line items] | |||
Capital securities issued | £ 210,000,000 | £ 210,000,000 | 210,000,000 |
Interest rate | 0.0425 | 0.0425 | |
Other equity interest maturity period | 2026-03 | ||
Other equity instruments | £ 210,000,000 | £ 0 |
Other Equity Instruments - Additional Information (Detail) |
1 Months Ended | 6 Months Ended | 12 Months Ended |
---|---|---|---|
Mar. 31, 2021
GBP (£)
|
Jun. 30, 2021
GBP (£)
|
Dec. 31, 2020
GBP (£)
|
|
£500m Fixed Rate Reset Perpetual AT1 Capital Securities | |||
Disclosure of other equity instruments [line items] | |||
Capital securities purchased and redeemed, remaining amount | £ 210,000,000 | ||
Capital securities purchased and redeemed | £ 500,000,000 | ||
Interest rate | 0.0518 | 0.0518 | |
Capital securities issued | £ 500,000,000 | £ 500,000,000 | |
£210m Fixed Rate Reset Perpetual AT1 Capital Securities | |||
Disclosure of other equity instruments [line items] | |||
Interest rate | 0.0425 | 0.0425 | |
Capital securities issued | £ 210,000,000 | £ 210,000,000 | £ 210,000,000 |
Non-Controlling Interests - Schedule of Amounts Attributable to Non-Controlling Interests (Detail) - GBP (£) £ in Millions |
Jun. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Disclosure of noncontrolling interests [line items] | ||
Non-controlling interests | £ 180 | £ 162 |
PSA Finance UK Limited | ||
Disclosure of noncontrolling interests [line items] | ||
Non-controlling interests | £ 180 | £ 162 |
Assets Charged as Security for Liabilities and Collateral Accepted as Security for Assets (Detail) - GBP (£) £ in Millions |
Jun. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Disclosure of assets pledged as security [line items] | ||
Gross assets charged as security for liabilities | £ 25,164 | £ 33,432 |
Internally Retained | Securitisations and covered bonds | ||
Disclosure of assets pledged as security [line items] | ||
Notes issued under securitisation and covered bond programmes retained internally | 2,011 | 4,530 |
Third Party Bilateral Secured Funding Transactions | Securitisations and covered bonds | ||
Disclosure of assets pledged as security [line items] | ||
Notes issued to Santander UK plc/subsidiaries as collateral | 500 | 1,114 |
Santander UK Plc | Internally Retained | Securitisations and covered bonds | ||
Disclosure of assets pledged as security [line items] | ||
Internally retained securitisation and covered bond issuances available for creating collateral | £ 130 | £ 2,294 |
Financial Instruments - Analysis of Fair Value of Financial Instruments Carried at Amortised Cost (Detail) - GBP (£) £ in Millions |
Jun. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [line items] | ||
Loans and advances to customers | £ 207,998 | £ 208,750 |
Loans and advances to banks | 1,312 | 1,682 |
Reverse repurchase agreements - non trading | 18,197 | 19,599 |
Assets held for sale | 2,645 | 0 |
Deposits by customers | 193,317 | 195,135 |
Deposits by banks | 20,502 | 20,958 |
Repurchase agreements - non trading | 14,089 | 15,848 |
Debt securities in issue | 29,140 | 35,566 |
Subordinated liabilities | 2,513 | 2,556 |
Liabilities held for sale | 3,912 | 0 |
Financial assets at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [line items] | ||
Financial assets | 233,357 | 233,761 |
Financial liabilities at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [line items] | ||
Financial liabilities | 264,740 | 271,522 |
Deposits by customers | Financial liabilities at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [line items] | ||
Deposits by customers | 193,389 | 195,242 |
Deposits by banks | Financial liabilities at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [line items] | ||
Deposits by banks | 20,503 | 20,967 |
Repurchase agreements - non trading | Financial liabilities at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [line items] | ||
Repurchase agreements - non trading | 14,088 | 15,847 |
Debt securities in issue | Financial liabilities at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [line items] | ||
Debt securities in issue | 29,890 | 36,397 |
Subordinated liabilities | Financial liabilities at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [line items] | ||
Subordinated liabilities | 3,080 | 3,069 |
Liabilities held for sale | Financial liabilities at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [line items] | ||
Liabilities held for sale | 3,790 | 0 |
Loans and advances to customers | Financial assets at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [line items] | ||
Loans and advances to customers | 210,815 | 211,279 |
Loans and advances to banks | Financial assets at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [line items] | ||
Loans and advances to banks | 1,312 | 1,682 |
Reverse repurchase agreements - non trading | Financial assets at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [line items] | ||
Reverse repurchase agreements - non trading | 18,198 | 19,608 |
Other financial assets at amortised cost | Financial assets at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [line items] | ||
Other financial assets at amortised cost | 539 | 1,192 |
Assets held for sale | Financial assets at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [line items] | ||
Assets held for sale | 2,493 | 0 |
Fair value | Financial assets at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [line items] | ||
Financial assets | 230,523 | 231,194 |
Fair value | Financial liabilities at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [line items] | ||
Financial liabilities | 263,351 | 270,063 |
Fair value | Deposits by customers | Financial liabilities at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [line items] | ||
Deposits by customers | 193,317 | 195,135 |
Fair value | Deposits by banks | Financial liabilities at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [line items] | ||
Deposits by banks | 20,502 | 20,958 |
Fair value | Repurchase agreements - non trading | Financial liabilities at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [line items] | ||
Repurchase agreements - non trading | 14,089 | 15,848 |
Fair value | Debt securities in issue | Financial liabilities at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [line items] | ||
Debt securities in issue | 29,140 | 35,566 |
Fair value | Subordinated liabilities | Financial liabilities at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [line items] | ||
Subordinated liabilities | 2,513 | 2,556 |
Fair value | Liabilities held for sale | Financial liabilities at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [line items] | ||
Liabilities held for sale | 3,790 | 0 |
Fair value | Loans and advances to customers | Financial assets at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [line items] | ||
Loans and advances to customers | 207,998 | 208,750 |
Fair value | Loans and advances to banks | Financial assets at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [line items] | ||
Loans and advances to banks | 1,312 | 1,682 |
Fair value | Reverse repurchase agreements - non trading | Financial assets at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [line items] | ||
Reverse repurchase agreements - non trading | 18,197 | 19,599 |
Fair value | Other financial assets at amortised cost | Financial assets at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [line items] | ||
Other financial assets at amortised cost | 530 | 1,163 |
Fair value | Assets held for sale | Financial assets at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [line items] | ||
Assets held for sale | £ 2,486 | £ 0 |
Financial Instruments - Fair Values of Financial Instruments Measured at Fair Value on a Recurring Basis (Detail) - GBP (£) £ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2021 |
Dec. 31, 2020 |
|
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Assets at fair value | £ 8,708 | £ 12,564 |
Liabilities at fair value | 2,208 | 3,018 |
Derivative financial instruments | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Liabilities at fair value | 1,063 | 1,584 |
Other financial liabilities at FVTPL | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Liabilities at fair value | 1,023 | 1,434 |
Liabilities held for sale | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Liabilities at fair value | 122 | 0 |
Derivative financial instruments | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Assets at fair value | 2,002 | 3,406 |
Other financial assets at FVTPL | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Assets at fair value | 179 | 208 |
Financial assets at FVOCI | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Assets at fair value | 6,368 | 8,950 |
Assets held for sale | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Assets at fair value | 159 | 0 |
Level 1 | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Assets at fair value | 6,160 | 8,501 |
Liabilities at fair value | 0 | 0 |
Level 1 | Derivative financial instruments | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Liabilities at fair value | 0 | 0 |
Level 1 | Other financial liabilities at FVTPL | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Liabilities at fair value | 0 | 0 |
Level 1 | Liabilities held for sale | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Liabilities at fair value | 0 | 0 |
Level 1 | Derivative financial instruments | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Assets at fair value | 0 | 0 |
Level 1 | Other financial assets at FVTPL | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Assets at fair value | 0 | 0 |
Level 1 | Financial assets at FVOCI | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Assets at fair value | 6,160 | 8,501 |
Level 1 | Assets held for sale | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Assets at fair value | 0 | 0 |
Level 2 | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Assets at fair value | 2,284 | 3,766 |
Liabilities at fair value | 2,169 | 2,978 |
Level 2 | Derivative financial instruments | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Liabilities at fair value | 1,031 | 1,552 |
Level 2 | Other financial liabilities at FVTPL | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Liabilities at fair value | 1,016 | 1,426 |
Level 2 | Liabilities held for sale | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Liabilities at fair value | 122 | 0 |
Level 2 | Derivative financial instruments | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Assets at fair value | 1,953 | 3,338 |
Level 2 | Other financial assets at FVTPL | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Assets at fair value | 0 | 0 |
Level 2 | Financial assets at FVOCI | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Assets at fair value | 188 | 428 |
Level 2 | Assets held for sale | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Assets at fair value | 143 | 0 |
Level 3 | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Assets at fair value | 264 | 297 |
Liabilities at fair value | 39 | 40 |
Level 3 | Derivative financial instruments | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Liabilities at fair value | 32 | 32 |
Level 3 | Other financial liabilities at FVTPL | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Liabilities at fair value | 7 | 8 |
Level 3 | Liabilities held for sale | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Liabilities at fair value | 0 | 0 |
Level 3 | Derivative financial instruments | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Assets at fair value | 49 | 68 |
Level 3 | Other financial assets at FVTPL | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Assets at fair value | 179 | 208 |
Level 3 | Financial assets at FVOCI | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Assets at fair value | 20 | 21 |
Level 3 | Assets held for sale | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Assets at fair value | £ 16 | 0 |
Exchange rate contracts | Derivative financial instruments | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Valuation technique | A | |
Liabilities at fair value | £ 565 | 833 |
Exchange rate contracts | Derivative financial instruments | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Assets at fair value | £ 1,404 | 2,457 |
Valuation technique | A | |
Exchange rate contracts | Level 1 | Derivative financial instruments | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Liabilities at fair value | £ 0 | 0 |
Exchange rate contracts | Level 1 | Derivative financial instruments | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Assets at fair value | 0 | 0 |
Exchange rate contracts | Level 2 | Derivative financial instruments | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Liabilities at fair value | 565 | 833 |
Exchange rate contracts | Level 2 | Derivative financial instruments | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Assets at fair value | 1,403 | 2,455 |
Exchange rate contracts | Level 3 | Derivative financial instruments | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Liabilities at fair value | 0 | 0 |
Exchange rate contracts | Level 3 | Derivative financial instruments | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Assets at fair value | £ 1 | 2 |
Interest rate contracts | Derivative financial instruments | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Valuation technique | A & C | |
Liabilities at fair value | £ 1,829 | 2,450 |
Interest rate contracts | Derivative financial instruments | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Assets at fair value | £ 1,841 | 2,580 |
Valuation technique | A & C | |
Interest rate contracts | Level 1 | Derivative financial instruments | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Liabilities at fair value | £ 0 | 0 |
Interest rate contracts | Level 1 | Derivative financial instruments | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Assets at fair value | 0 | 0 |
Interest rate contracts | Level 2 | Derivative financial instruments | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Liabilities at fair value | 1,827 | 2,447 |
Interest rate contracts | Level 2 | Derivative financial instruments | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Assets at fair value | 1,841 | 2,566 |
Interest rate contracts | Level 3 | Derivative financial instruments | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Liabilities at fair value | 2 | 3 |
Interest rate contracts | Level 3 | Derivative financial instruments | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Assets at fair value | £ 0 | 14 |
Equity and credit contracts | Derivative financial instruments | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Valuation technique | B & D | |
Liabilities at fair value | £ 53 | 55 |
Equity and credit contracts | Derivative financial instruments | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Assets at fair value | £ 141 | 123 |
Valuation technique | B & D | |
Equity and credit contracts | Level 1 | Derivative financial instruments | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Liabilities at fair value | £ 0 | 0 |
Equity and credit contracts | Level 1 | Derivative financial instruments | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Assets at fair value | 0 | 0 |
Equity and credit contracts | Level 2 | Derivative financial instruments | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Liabilities at fair value | 23 | 26 |
Equity and credit contracts | Level 2 | Derivative financial instruments | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Assets at fair value | 93 | 71 |
Equity and credit contracts | Level 3 | Derivative financial instruments | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Liabilities at fair value | 30 | 29 |
Equity and credit contracts | Level 3 | Derivative financial instruments | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Assets at fair value | 48 | 52 |
Netting | Derivative financial instruments | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Liabilities at fair value | (1,384) | (1,754) |
Netting | Derivative financial instruments | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Assets at fair value | (1,384) | (1,754) |
Netting | Level 1 | Derivative financial instruments | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Liabilities at fair value | 0 | 0 |
Netting | Level 1 | Derivative financial instruments | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Assets at fair value | 0 | 0 |
Netting | Level 2 | Derivative financial instruments | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Liabilities at fair value | (1,384) | (1,754) |
Netting | Level 2 | Derivative financial instruments | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Assets at fair value | (1,384) | (1,754) |
Netting | Level 3 | Derivative financial instruments | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Liabilities at fair value | 0 | 0 |
Netting | Level 3 | Derivative financial instruments | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Assets at fair value | 0 | 0 |
Loans and advances to customers | Other financial assets at FVTPL | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Assets at fair value | £ 74 | 99 |
Valuation technique | A | |
Loans and advances to customers | Financial assets at FVOCI | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Assets at fair value | £ 20 | 21 |
Valuation technique | D | |
Loans and advances to customers | Level 1 | Other financial assets at FVTPL | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Assets at fair value | £ 0 | 0 |
Loans and advances to customers | Level 1 | Financial assets at FVOCI | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Assets at fair value | 0 | 0 |
Loans and advances to customers | Level 2 | Other financial assets at FVTPL | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Assets at fair value | 0 | 0 |
Loans and advances to customers | Level 2 | Financial assets at FVOCI | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Assets at fair value | 0 | 0 |
Loans and advances to customers | Level 3 | Other financial assets at FVTPL | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Assets at fair value | 74 | 99 |
Loans and advances to customers | Level 3 | Financial assets at FVOCI | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Assets at fair value | 20 | 21 |
Debt securities | Other financial assets at FVTPL | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Assets at fair value | £ 105 | 109 |
Valuation technique | A, B & D | |
Debt securities | Financial assets at FVOCI | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Assets at fair value | £ 6,348 | 8,929 |
Valuation technique | D | |
Debt securities | Level 1 | Other financial assets at FVTPL | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Assets at fair value | £ 0 | 0 |
Debt securities | Level 1 | Financial assets at FVOCI | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Assets at fair value | 6,160 | 8,501 |
Debt securities | Level 2 | Other financial assets at FVTPL | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Assets at fair value | 0 | 0 |
Debt securities | Level 2 | Financial assets at FVOCI | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Assets at fair value | 188 | 428 |
Debt securities | Level 3 | Other financial assets at FVTPL | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Assets at fair value | 105 | 109 |
Debt securities | Level 3 | Financial assets at FVOCI | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Assets at fair value | £ 0 | 0 |
Debt securities in issue | Other financial liabilities at FVTPL | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Valuation technique | A | |
Liabilities at fair value | £ 671 | 1,057 |
Debt securities in issue | Level 1 | Other financial liabilities at FVTPL | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Liabilities at fair value | 0 | 0 |
Debt securities in issue | Level 2 | Other financial liabilities at FVTPL | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Liabilities at fair value | 666 | 1,051 |
Debt securities in issue | Level 3 | Other financial liabilities at FVTPL | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Liabilities at fair value | £ 5 | 6 |
Structured deposits | Other financial liabilities at FVTPL | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Valuation technique | A | |
Liabilities at fair value | £ 347 | 375 |
Structured deposits | Level 1 | Other financial liabilities at FVTPL | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Liabilities at fair value | 0 | 0 |
Structured deposits | Level 2 | Other financial liabilities at FVTPL | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Liabilities at fair value | 347 | 375 |
Structured deposits | Level 3 | Other financial liabilities at FVTPL | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Liabilities at fair value | £ 0 | 0 |
Collateral and associated financial guarantees | Other financial liabilities at FVTPL | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Valuation technique | D | |
Liabilities at fair value | £ 5 | 2 |
Collateral and associated financial guarantees | Level 1 | Other financial liabilities at FVTPL | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Liabilities at fair value | 0 | 0 |
Collateral and associated financial guarantees | Level 2 | Other financial liabilities at FVTPL | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Liabilities at fair value | 3 | 0 |
Collateral and associated financial guarantees | Level 3 | Other financial liabilities at FVTPL | ||
Disclosure of fair value measurements of assets and liabilities [line items] | ||
Liabilities at fair value | £ 2 | £ 2 |
Financial Instruments - Additional Information (Detail) - GBP (£) £ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Abstract] | ||
Transfers out of Level 1 into Level 2 of fair value hierarchy, assets held at end of reporting period | £ 0 | £ 0 |
Transfers out of Level 2 into Level 1 of fair value hierarchy, assets held at end of reporting period | 0 | 0 |
Transfers into Level 3 of fair value hierarchy, assets | 0 | 0 |
Transfers out of Level 3 of fair value hierarchy, assets | 0 | 0 |
Transfers out of Level 1 into Level 2 of fair value hierarchy, liabilities held at end of reporting period | 0 | 0 |
Transfers out of Level 2 into Level 1 of fair value hierarchy, liabilities held at end of reporting period | 0 | 0 |
Transfers into Level 3 of fair value hierarchy, liabilities | 0 | 0 |
Transfers out of Level 3 of fair value hierarchy, liabilities | £ 0 | £ 0 |
Financial Instruments - Summary of Fair Value Adjustment (Detail) - GBP (£) £ in Millions |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2021 |
Dec. 31, 2020 |
|
Bid-offer and trade specific adjustments | ||
Disclosure of financial assets [line items] | ||
Fair value adjustments | £ (7) | £ (8) |
Uncertainty | ||
Disclosure of financial assets [line items] | ||
Fair value adjustments | 21 | 23 |
Credit risk adjustment | ||
Disclosure of financial assets [line items] | ||
Fair value adjustments | 7 | 11 |
Funding fair value adjustment | ||
Disclosure of financial assets [line items] | ||
Fair value adjustments | 2 | 3 |
Risk related adjustments | ||
Disclosure of financial assets [line items] | ||
Fair value adjustments | £ 23 | £ 29 |
Financial Instruments - Assets and Liabilities Reconciliation of Fair Value Measurements in Level 3 of the Fair Value Hierarchy (Detail) - GBP (£) £ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Disclosure of fair value measurement of assets [line items] | ||
Beginning balance | £ 292,332 | |
Beginning balance | (276,396) | |
Transfers out | 0 | £ 0 |
Transfers out | 0 | 0 |
Ending Balance | 285,614 | |
Ending Balance | (268,906) | |
Level 3 | Other financial assets at FVTPL | ||
Disclosure of fair value measurement of assets [line items] | ||
Beginning balance | 208 | 386 |
Fair value movements | (7) | (2) |
Transfers to held for sale | (16) | |
Netting | 5 | (37) |
Settlements | (11) | (110) |
Foreign exchange and other movements | (2) | |
Transfers out | 0 | |
Additions | 0 | |
Sales | (11) | |
Ending Balance | 179 | 224 |
Gains/(losses) recognised in profit or loss/other comprehensive income relating to assets and liabilities held at the end of the period | (7) | (4) |
Level 3 | Financial assets at FVOCI | ||
Disclosure of fair value measurement of assets [line items] | ||
Beginning balance | 21 | 56 |
Fair value movements | (1) | 1 |
Transfers to held for sale | 0 | |
Netting | 0 | 0 |
Settlements | 0 | (8) |
Foreign exchange and other movements | 0 | |
Transfers out | 0 | |
Additions | 0 | |
Sales | (19) | |
Ending Balance | 20 | 30 |
Gains/(losses) recognised in profit or loss/other comprehensive income relating to assets and liabilities held at the end of the period | (1) | 1 |
Level 3 | Assets held for sale | ||
Disclosure of fair value measurement of assets [line items] | ||
Beginning balance | 0 | 0 |
Fair value movements | 0 | 0 |
Transfers to held for sale | 16 | |
Netting | 0 | 0 |
Settlements | 0 | 0 |
Foreign exchange and other movements | 0 | |
Transfers out | 0 | |
Additions | 0 | |
Sales | 0 | |
Ending Balance | 16 | 0 |
Gains/(losses) recognised in profit or loss/other comprehensive income relating to assets and liabilities held at the end of the period | 0 | 0 |
Level 3 | Financial assets at fair value | ||
Disclosure of fair value measurement of assets [line items] | ||
Beginning balance | 297 | 517 |
Fair value movements | (9) | 5 |
Transfers to held for sale | 0 | |
Netting | 5 | (37) |
Settlements | (29) | (135) |
Foreign exchange and other movements | (2) | |
Transfers out | 0 | |
Additions | 0 | |
Sales | (30) | |
Ending Balance | 264 | 318 |
Gains/(losses) recognised in profit or loss/other comprehensive income relating to assets and liabilities held at the end of the period | (9) | 3 |
Level 3 | Other financial liabilities at FVTPL | ||
Disclosure of fair value measurement of assets [line items] | ||
Beginning balance | (8) | (61) |
Fair value movements | 3 | 15 |
Transfers to held for sale | (2) | |
Netting | 0 | 0 |
Settlements | 0 | 1 |
Foreign exchange and other movements | 2 | |
Transfers out | 28 | |
Additions | (1) | |
Sales | 0 | |
Ending Balance | (7) | (16) |
Gains/(losses) recognised in profit or loss/other comprehensive income relating to assets and liabilities held at the end of the period | 3 | 17 |
Level 3 | Liabilities held for sale | ||
Disclosure of fair value measurement of assets [line items] | ||
Beginning balance | 0 | 0 |
Fair value movements | 0 | 0 |
Transfers to held for sale | 0 | |
Netting | 0 | 0 |
Settlements | 0 | 0 |
Foreign exchange and other movements | 0 | |
Transfers out | 0 | |
Additions | 0 | |
Sales | 0 | |
Ending Balance | 0 | 0 |
Gains/(losses) recognised in profit or loss/other comprehensive income relating to assets and liabilities held at the end of the period | 0 | 0 |
Level 3 | Financial liabilities at fair value | ||
Disclosure of fair value measurement of assets [line items] | ||
Beginning balance | (40) | (93) |
Fair value movements | 3 | 14 |
Transfers to held for sale | (2) | |
Netting | 0 | 0 |
Settlements | 0 | 4 |
Foreign exchange and other movements | 2 | |
Transfers out | 28 | |
Additions | (1) | |
Sales | 0 | |
Ending Balance | (39) | (46) |
Gains/(losses) recognised in profit or loss/other comprehensive income relating to assets and liabilities held at the end of the period | 3 | 16 |
Level 3 | Derivatives | ||
Disclosure of fair value measurement of assets [line items] | ||
Beginning balance | (32) | (32) |
Fair value movements | 0 | (1) |
Transfers to held for sale | 0 | |
Netting | 0 | 0 |
Settlements | 0 | 3 |
Foreign exchange and other movements | 0 | |
Transfers out | 0 | |
Additions | 0 | |
Sales | 0 | |
Ending Balance | (32) | (30) |
Gains/(losses) recognised in profit or loss/other comprehensive income relating to assets and liabilities held at the end of the period | 0 | (1) |
Level 3 | Derivatives | ||
Disclosure of fair value measurement of assets [line items] | ||
Beginning balance | 68 | 75 |
Fair value movements | (1) | 6 |
Transfers to held for sale | 0 | |
Netting | 0 | 0 |
Settlements | (18) | (17) |
Foreign exchange and other movements | 0 | |
Transfers out | 0 | |
Additions | 0 | |
Sales | 0 | |
Ending Balance | 49 | 64 |
Gains/(losses) recognised in profit or loss/other comprehensive income relating to assets and liabilities held at the end of the period | £ (1) | £ 6 |
Interest Rate Benchmark Reform - Amounts Impacted by IBOR Reform (Detail) - GBP (£) £ in Millions |
Jun. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Assets | ||
Derivative financial instruments | £ 2,002 | £ 3,406 |
Other financial assets at fair value through profit or loss | 179 | 208 |
Financial assets at amortised cost | 530 | 1,163 |
Financial assets at fair value through other comprehensive income | 6,368 | 8,950 |
Assets held for sale | 2,645 | 0 |
Total assets | 285,614 | 292,332 |
Liabilities | ||
Derivative financial instruments | 1,063 | 1,584 |
Other financial liabilities at fair value through profit or loss | 1,023 | 1,434 |
Liabilities held for sale | 3,912 | 0 |
Total liabilities | 268,906 | 276,396 |
GBP LIBOR | ||
Assets | ||
Derivative financial instruments | 21,893 | 33,486 |
Other financial assets at fair value through profit or loss | 808 | 968 |
Financial assets at amortised cost | 12,706 | 15,062 |
Financial assets at fair value through other comprehensive income | 189 | 428 |
Assets held for sale | 1,602 | |
Total assets | 37,198 | 49,944 |
Liabilities | ||
Derivative financial instruments | 26,227 | 35,217 |
Other financial liabilities at fair value through profit or loss | 967 | 1,129 |
Financial liabilities at amortised cost | 895 | 2,354 |
Liabilities held for sale | 0 | |
Total liabilities | 28,089 | 38,700 |
Off-balance sheet commitments given | 10,277 | 11,400 |
USD LIBOR | ||
Assets | ||
Derivative financial instruments | 2,580 | 4,514 |
Other financial assets at fair value through profit or loss | 20 | 22 |
Financial assets at amortised cost | 157 | 1,191 |
Financial assets at fair value through other comprehensive income | 0 | 0 |
Assets held for sale | 161 | |
Total assets | 2,918 | 5,727 |
Liabilities | ||
Derivative financial instruments | 2,558 | 5,205 |
Other financial liabilities at fair value through profit or loss | 41 | 69 |
Financial liabilities at amortised cost | 567 | 1,319 |
Liabilities held for sale | 27 | |
Total liabilities | 3,193 | 6,593 |
Off-balance sheet commitments given | 803 | 2,126 |
Other | ||
Assets | ||
Derivative financial instruments | 653 | 2,149 |
Other financial assets at fair value through profit or loss | 0 | 0 |
Financial assets at amortised cost | 83 | 90 |
Financial assets at fair value through other comprehensive income | 0 | 0 |
Assets held for sale | 0 | |
Total assets | 736 | 2,239 |
Liabilities | ||
Derivative financial instruments | 56 | 88 |
Other financial liabilities at fair value through profit or loss | 0 | 0 |
Financial liabilities at amortised cost | 0 | 0 |
Liabilities held for sale | 0 | |
Total liabilities | 56 | 88 |
Off-balance sheet commitments given | 198 | 573 |
Total | ||
Assets | ||
Derivative financial instruments | 25,126 | 40,149 |
Other financial assets at fair value through profit or loss | 828 | 990 |
Financial assets at amortised cost | 12,946 | 16,343 |
Financial assets at fair value through other comprehensive income | 189 | 428 |
Assets held for sale | 1,763 | |
Total assets | 40,852 | 57,910 |
Liabilities | ||
Derivative financial instruments | 28,841 | 40,510 |
Other financial liabilities at fair value through profit or loss | 1,008 | 1,198 |
Financial liabilities at amortised cost | 1,462 | 3,673 |
Liabilities held for sale | 27 | |
Total liabilities | 31,338 | 45,381 |
Off-balance sheet commitments given | £ 11,278 | £ 14,099 |
Interest Rate Benchmark Reform - Derivatives Directly Affected (Detail) number in Millions |
Jun. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
GBP LIBOR | ||
Analysis of notional and fair values of derivatives by trading and settlement method [line item] | ||
Notional value of hedging instruments | 32,368 | 47,421 |
GBP LIBOR | Maturing after cessation date | ||
Analysis of notional and fair values of derivatives by trading and settlement method [line item] | ||
Notional value of hedging instruments | 26,020 | 23,030 |
USD LIBOR | ||
Analysis of notional and fair values of derivatives by trading and settlement method [line item] | ||
Notional value of hedging instruments | 3,054 | 6,196 |
USD LIBOR | Maturing after cessation date | ||
Analysis of notional and fair values of derivatives by trading and settlement method [line item] | ||
Notional value of hedging instruments | 2,693 | 2,724 |
Other | ||
Analysis of notional and fair values of derivatives by trading and settlement method [line item] | ||
Notional value of hedging instruments | 696 | 778 |
Other | Maturing after cessation date | ||
Analysis of notional and fair values of derivatives by trading and settlement method [line item] | ||
Notional value of hedging instruments | 696 | 720 |
Total | ||
Analysis of notional and fair values of derivatives by trading and settlement method [line item] | ||
Notional value of hedging instruments | 36,118 | 54,395 |
Total | Maturing after cessation date | ||
Analysis of notional and fair values of derivatives by trading and settlement method [line item] | ||
Notional value of hedging instruments | 29,409 | 26,474 |
Cash flow hedges | GBP LIBOR | ||
Analysis of notional and fair values of derivatives by trading and settlement method [line item] | ||
Notional value of hedging instruments | 11,610 | 15,198 |
Cash flow hedges | GBP LIBOR | Maturing after cessation date | ||
Analysis of notional and fair values of derivatives by trading and settlement method [line item] | ||
Notional value of hedging instruments | 9,788 | 10,553 |
Cash flow hedges | USD LIBOR | ||
Analysis of notional and fair values of derivatives by trading and settlement method [line item] | ||
Notional value of hedging instruments | 2,894 | 5,119 |
Cash flow hedges | USD LIBOR | Maturing after cessation date | ||
Analysis of notional and fair values of derivatives by trading and settlement method [line item] | ||
Notional value of hedging instruments | 2,533 | 2,562 |
Cash flow hedges | Other | ||
Analysis of notional and fair values of derivatives by trading and settlement method [line item] | ||
Notional value of hedging instruments | 0 | 0 |
Cash flow hedges | Other | Maturing after cessation date | ||
Analysis of notional and fair values of derivatives by trading and settlement method [line item] | ||
Notional value of hedging instruments | 0 | 0 |
Cash flow hedges | Total | ||
Analysis of notional and fair values of derivatives by trading and settlement method [line item] | ||
Notional value of hedging instruments | 14,504 | 20,317 |
Cash flow hedges | Total | Maturing after cessation date | ||
Analysis of notional and fair values of derivatives by trading and settlement method [line item] | ||
Notional value of hedging instruments | 12,321 | 13,115 |
Fair value hedges | GBP LIBOR | ||
Analysis of notional and fair values of derivatives by trading and settlement method [line item] | ||
Notional value of hedging instruments | 20,758 | 32,223 |
Fair value hedges | GBP LIBOR | Maturing after cessation date | ||
Analysis of notional and fair values of derivatives by trading and settlement method [line item] | ||
Notional value of hedging instruments | 16,232 | 12,477 |
Fair value hedges | USD LIBOR | ||
Analysis of notional and fair values of derivatives by trading and settlement method [line item] | ||
Notional value of hedging instruments | 160 | 1,077 |
Fair value hedges | USD LIBOR | Maturing after cessation date | ||
Analysis of notional and fair values of derivatives by trading and settlement method [line item] | ||
Notional value of hedging instruments | 160 | 162 |
Fair value hedges | Other | ||
Analysis of notional and fair values of derivatives by trading and settlement method [line item] | ||
Notional value of hedging instruments | 696 | 778 |
Fair value hedges | Other | Maturing after cessation date | ||
Analysis of notional and fair values of derivatives by trading and settlement method [line item] | ||
Notional value of hedging instruments | 696 | 720 |
Fair value hedges | Total | ||
Analysis of notional and fair values of derivatives by trading and settlement method [line item] | ||
Notional value of hedging instruments | 21,614 | 34,078 |
Fair value hedges | Total | Maturing after cessation date | ||
Analysis of notional and fair values of derivatives by trading and settlement method [line item] | ||
Notional value of hedging instruments | 17,088 | 13,359 |
Discontinued Operations and Assets and Liabilities Classified as Held for Sale - Disclosure of Financial Performance Relating to Discontinued Operations (Detail) - GBP (£) £ in Millions |
6 Months Ended | ||||
---|---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
||||
Disclosure of analysis of single amount of discontinued operations [line items] | |||||
Net interest income | £ 1,905 | £ 1,528 | [1] | ||
Net fee and commission income | 151 | 200 | [1] | ||
Total operating income | 2,191 | 1,828 | [1] | ||
Operating expenses before credit impairment losses, provisions and charges | (1,328) | (1,212) | [1] | ||
Credit impairment losses | 70 | (364) | [1] | ||
Provisions for other liabilities and charges | (190) | (64) | [1] | ||
Total operating credit impairment losses, provisions and charges | (120) | (428) | [1] | ||
Profit/(loss) from discontinued operations after tax | 24 | (1) | [1] | ||
Discontinued operations | |||||
Disclosure of analysis of single amount of discontinued operations [line items] | |||||
Net interest income | 24 | 25 | |||
Net fee and commission income | 27 | 22 | |||
Total operating income | 51 | 47 | |||
Operating expenses before credit impairment losses, provisions and charges | (22) | (33) | |||
Credit impairment losses | 7 | (12) | |||
Provisions for other liabilities and charges | (3) | (4) | |||
Total operating credit impairment losses, provisions and charges | 4 | (16) | |||
Profit/(loss) from discontinued operations before tax | 33 | (2) | |||
Tax on profit/(loss) from discontinued operations | (9) | 1 | |||
Profit/(loss) from discontinued operations after tax | £ 24 | £ (1) | |||
|
Discontinued Operations and Assets and Liabilities Classified as Held for Sale - Additional Information (Detail) - GBP (£) £ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Discontinued Operations and Assets and Liabilities Held for Sale [Abstract] | ||
Gain (loss) recognised on measurement to fair value less costs to sell or on disposal of assets or disposal groups constituting discontinued operation | £ 0 | £ 0 |
Cash flows from (used in) operating activities, discontinued operations | 1,754 | 524 |
Cash flows from (used in) investing activities, discontinued operations | 0 | 0 |
Cash flows from (used in) financing activities, discontinued operations | £ 0 | £ 0 |
Discontinued Operations and Assets and Liabilities Classified as Held for Sale - Disclosure of Assets and Liabilities Held for Sale (Detail) - GBP (£) £ in Millions |
Jun. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Disclosure of Assets and Liabilities Classified as Held for Sale [Line Items] | ||
Assets held for sale | £ 2,645 | £ 0 |
Liabilities held for sale | 3,912 | £ 0 |
Derivative financial instruments | ||
Disclosure of Assets and Liabilities Classified as Held for Sale [Line Items] | ||
Liabilities held for sale | 95 | |
Other financial liabilities at FVTPL | ||
Disclosure of Assets and Liabilities Classified as Held for Sale [Line Items] | ||
Liabilities held for sale | 27 | |
Deposits by customers | ||
Disclosure of Assets and Liabilities Classified as Held for Sale [Line Items] | ||
Liabilities held for sale | 3,769 | |
Deposits by banks | ||
Disclosure of Assets and Liabilities Classified as Held for Sale [Line Items] | ||
Liabilities held for sale | 21 | |
Derivative financial instruments | ||
Disclosure of Assets and Liabilities Classified as Held for Sale [Line Items] | ||
Assets held for sale | 143 | |
Other financial assets at fair value through profit or loss | ||
Disclosure of Assets and Liabilities Classified as Held for Sale [Line Items] | ||
Assets held for sale | 16 | |
Loans and advances to customers | ||
Disclosure of Assets and Liabilities Classified as Held for Sale [Line Items] | ||
Assets held for sale | 2,486 | |
CIB business transfer to SLB | ||
Disclosure of Assets and Liabilities Classified as Held for Sale [Line Items] | ||
Assets held for sale | 2,037 | |
Liabilities held for sale | 3,912 | |
CIB business transfer to SLB | Derivative financial instruments | ||
Disclosure of Assets and Liabilities Classified as Held for Sale [Line Items] | ||
Liabilities held for sale | 95 | |
CIB business transfer to SLB | Other financial liabilities at FVTPL | ||
Disclosure of Assets and Liabilities Classified as Held for Sale [Line Items] | ||
Liabilities held for sale | 27 | |
CIB business transfer to SLB | Deposits by customers | ||
Disclosure of Assets and Liabilities Classified as Held for Sale [Line Items] | ||
Liabilities held for sale | 3,769 | |
CIB business transfer to SLB | Deposits by banks | ||
Disclosure of Assets and Liabilities Classified as Held for Sale [Line Items] | ||
Liabilities held for sale | 21 | |
CIB business transfer to SLB | Derivative financial instruments | ||
Disclosure of Assets and Liabilities Classified as Held for Sale [Line Items] | ||
Assets held for sale | 143 | |
CIB business transfer to SLB | Other financial assets at fair value through profit or loss | ||
Disclosure of Assets and Liabilities Classified as Held for Sale [Line Items] | ||
Assets held for sale | 16 | |
CIB business transfer to SLB | Loans and advances to customers | ||
Disclosure of Assets and Liabilities Classified as Held for Sale [Line Items] | ||
Assets held for sale | 1,878 | |
Sale of residential mortgages | ||
Disclosure of Assets and Liabilities Classified as Held for Sale [Line Items] | ||
Assets held for sale | 608 | |
Liabilities held for sale | 0 | |
Sale of residential mortgages | Derivative financial instruments | ||
Disclosure of Assets and Liabilities Classified as Held for Sale [Line Items] | ||
Liabilities held for sale | 0 | |
Sale of residential mortgages | Other financial liabilities at FVTPL | ||
Disclosure of Assets and Liabilities Classified as Held for Sale [Line Items] | ||
Liabilities held for sale | 0 | |
Sale of residential mortgages | Deposits by customers | ||
Disclosure of Assets and Liabilities Classified as Held for Sale [Line Items] | ||
Liabilities held for sale | 0 | |
Sale of residential mortgages | Deposits by banks | ||
Disclosure of Assets and Liabilities Classified as Held for Sale [Line Items] | ||
Liabilities held for sale | 0 | |
Sale of residential mortgages | Derivative financial instruments | ||
Disclosure of Assets and Liabilities Classified as Held for Sale [Line Items] | ||
Assets held for sale | 0 | |
Sale of residential mortgages | Other financial assets at fair value through profit or loss | ||
Disclosure of Assets and Liabilities Classified as Held for Sale [Line Items] | ||
Assets held for sale | 0 | |
Sale of residential mortgages | Loans and advances to customers | ||
Disclosure of Assets and Liabilities Classified as Held for Sale [Line Items] | ||
Assets held for sale | £ 608 |
Events After the Balance Sheet Date (Detail) - GBP (£) £ in Millions |
6 Months Ended | |
---|---|---|
Jul. 30, 2021 |
Jun. 30, 2021 |
|
Disclosure of non-adjusting events after reporting period [line items] | ||
Description of nature of non-adjusting event after reporting period | On 30 July 2021, the Santander UK group through Santander Consumer (UK) plc sold its entire 50% shareholding in PSA Finance UK Limited (PSA) to PSA Financial Services Spain EFC SA, a joint venture between Santander Consumer Finance SA, a fellow subsidiary of Banco Santander SA, and Banque PSA Finance SA, the auto finance arm of Group PSA Peugeot Citroën. The impact of the sale was to derecognise total assets of £3.2bn, total liabilities of £2.9bn and a non-controlling interest of £0.15bn. No material gain or loss arose on sale. For more information on PSA, including summary financial information, see Note 19 to the Consolidated Financial Statements in the 2020 Annual Report. | |
Events After the Balance Sheet Date | 34. EVENTS AFTER THE BALANCE SHEET DATE There have been no significant events between 30 June 2021 and the date of approval of these financial statements which would require a change to or additional disclosure in the financial statements, except for the following non-adjusting event: On 30 July 2021, the Santander UK group through Santander Consumer (UK) plc sold its entire 50% shareholding in PSA Finance UK Limited (PSA) to PSA Financial Services Spain EFC SA, a joint venture between Santander Consumer Finance SA, a fellow subsidiary of Banco Santander SA, and Banque PSA Finance SA, the auto finance arm of Group PSA Peugeot Citroën. The impact of the sale was to derecognise total assets of £3.2bn, total liabilities of £2.9bn and a non-controlling interest of £0.15bn. No material gain or loss arose on sale. For more information on PSA, including summary financial information, see Note 19 to the Consolidated Financial Statements in the 2020 Annual Report.
|
|
Disposal of major subsidiary | Santander Consumer (UK) | PSA Finance UK Limited | ||
Disclosure of non-adjusting events after reporting period [line items] | ||
Proportion of ownership interest in subsidiary sold | 50.00% | |
Assets derecognised at disposal | £ 3,200 | |
Liabilities derecognised at disposal | 2,900 | |
Disposal of major subsidiary | Santander Consumer (UK) | PSA Finance UK Limited | Non-controlling interests | ||
Disclosure of non-adjusting events after reporting period [line items] | ||
Non-controlling interest derecognised at disposal | £ 150 |
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