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Fair values of financial instruments not carried at fair value (Tables)
 6 Months Ended
Jun. 30, 2018
Fair Value Measurement [Abstract]  
Fair values of financial instruments not carried at fair value and bases of valuation - assets
Financial instruments carried at fair value and bases of valuation
 
 
Valuation techniques
 
 
Quoted
market price
 Level 1

Using
observable
inputs
Level 2

With significant
unobservable
inputs
Level 3

Total

 
$m

$m

$m

$m

Recurring fair value measurements
 
 
 
 
At 30 Jun 2018
 
 
 
 
Assets
 
 
 
 
Trading assets
173,848

67,497

6,547

247,892

Financial assets designated and otherwise mandatorily measured at fair value through profit or loss
25,021

10,651

5,006

40,678

Derivatives
1,756

223,746

2,470

227,972

Financial investments
244,816

76,637

2,228

323,681

Liabilities
 
 
 
 
Trading liabilities
62,875

20,895

75

83,845

Financial liabilities designated at fair value
5,549

142,081

4,355

151,985

Derivatives
1,558

219,533

1,870

222,961

 
At 31 Dec 2017
 
 
 
 
Assets
 
 
 
 
Trading assets
181,168

101,775

5,052

287,995

Financial assets designated at fair value
24,622

3,382

1,460

29,464

Derivatives
1,017

216,357

2,444

219,818

Financial investments
227,943

104,692

3,432

336,067

Liabilities
 
 
 
 
Trading liabilities
62,710

117,451

4,200

184,361

Financial liabilities designated at fair value
4,164

90,265

—

94,429

Derivatives
1,635

213,242

1,944

216,821

Transfers between Level 1 and Level 2 fair values
 
Assets
Liabilities
 
Financial investments

Trading assets

Designated and otherwise mandatorily measured at fair value through profit or loss

Derivatives

Trading liabilities

Designated at fair value

Derivatives

 
$m

$m

$m

$m

$m

$m

$m

At 30 Jun 2018
 
 
 
 
 
 
 
Transfers from Level 1 to Level 2
12

233

2

1

42

—

—

Transfers from Level 2 to Level 1
13,163

5,143

—

128

2,261

—

138

 
 
 
 
 
 
 
 
 
Assets
Liabilities
 
Available
for sale

Held for trading

Designated
at fair value
through profit
or loss

Derivatives

Held for trading

Designated
at fair value through profit or loss

Derivatives

 
$m

$m

$m

$m

$m

$m

$m

At 31 Dec 2017
 
 
 
 
 
 
 
Transfers from Level 1 to Level 2
2,231

1,507

—

—

35

—

—

Transfers from Level 2 to Level 1
11,173

1,384

—

—

683

—

—

Financial instruments measured at fair value using a valuation technique with significant unobservable inputs – Level 3
 
Assets
Liabilities
 
Financial investments

Trading assets

Designated and otherwise mandatorily measured at fair value through profit or loss

Derivatives

Total

Trading liabilities

Designated at fair value1

Derivatives

Total

 
$m

$m

$m

$m

$m

$m

$m

$m

$m

Private equity including strategic investments
457

27

4,388

—

4,872

17

—

—

17

Asset-backed securities
1,022

1,223

4

—

2,249

—

—

—

—

Loans held for securitisation
—

—

50

—

50

—

—

—

—

Structured notes
—

3

—

—

3

58

4,355

—

4,413

Derivatives with monolines
—

—

—

75

75

—

—

—

—

Other derivatives
—

—

—

2,395

2,395

—

—

1,869

1,869

Other portfolios
749

5,294

564

—

6,607

—

—

1

1

At 30 Jun 2018
2,228

6,547

5,006

2,470

16,251

75

4,355

1,870

6,300

Private equity including strategic investments
2,012

38

1,458

—

3,508

20

—

—

20

Asset-backed securities
1,300

1,277

—

—

2,577

—

—

—

—

Loans held for securitisation
—

24

—

—

24

—

—

—

—

Structured notes
—

3

—

—

3

4,180

—

—

4,180

Derivatives with monolines
—

—

—

113

113

—

—

—

—

Other derivatives
—

—

—

2,331

2,331

—

—

1,944

1,944

Other portfolios
120

3,710

2

—

3,832

—

—

—

—

At 31 Dec 2017
3,432

5,052

1,460

2,444

12,388

4,200

—

1,944

6,144

1
Designated at fair value through profit or loss.
Movement in Level 3 financial instruments
 
 
Assets
Liabilities
 
 
Financial investments

Trading assets

Designated and otherwise mandatorily measured at fair value through profit or loss

Derivatives

Trading liabilities

Designated at fair value

Derivatives

 
Footnote
$m

$m

$m

$m

$m

$m

$m

At 1 Jan 2018
 
1,767

5,080

3,957

2,444

93

4,107

1,949

 
 
 
 
 
 
 
 
 
Total gains/(losses) recognised in profit or loss
 
253

228

245

126

(2
)
(460
)
(185
)
– net income from financial instruments held for trading or managed on a fair value basis
 
—

228

—

126

(2
)
—

(185
)
– net income from assets and liabilities of insurance businesses, including related derivatives, measured at fair value through profit or loss

 
—

—

—

—

—

(460
)
—

– changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss
 
—

—

245

—

—

—

—

– gains less losses from financial investments at fair value through other comprehensive income
 
253

—

—

—

—

—

—

– expected credit loss charges and other credit impairment charges

 
—

—

—

—

—

—

—

–
fair value gains transferred to the income statement on disposal
 
—

—

—

—

—

—

—

Total gains/(losses) recognised in other comprehensive income
1
64

(201
)
(92
)
(56
)
(2
)
(72
)
(34
)
– financial investments: fair value gains/(losses)
 
57

—

—

—

—

—

—

– cash flow hedges: fair value gains/(losses)
 
—

—

6

6

—

—

2

– fair value gains transferred to the income statement on disposal
 
—

—

—

—

—

—

—

– exchange differences
 
7

(201
)
(98
)
(62
)
(2
)
(72
)
(36
)
Purchases
 
242

4,032

1,202

—

2

46

—

New issuances
 
—

975

—

—

5

1,309

—

Sales
 
(24
)
(1,212
)
(98
)
—

(4
)
—

—

Settlements
 
(70
)
(1,682
)
(213
)
137

—

(172
)
317

Transfers out
 
(373
)
(941
)
(31
)
(199
)
(17
)
(479
)
(235
)
Transfers in
 
369

268

36

18

—

76

58

At 30 Jun 2018
 
2,228

6,547

5,006

2,470

75

4,355

1,870

Unrealised gains/(losses) recognised in profit or loss relating to assets and liabilities held at 30 Jun 2018
 
—

(47
)
177

44

(5
)
82

(111
)
– net income from financial instruments held for trading or managed on a fair value basis

 
—

(47
)
—

44

(5
)
—

(111
)
– net income from assets and liabilities of insurance businesses, including related derivatives, measured at fair value through profit or loss

 
—

—

—

—

—

82

—

– changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss

 
—

—

177

—

—

—

—

– loan impairment recoveries and other credit risk provisions
 
—

—

—

—

—

—

—

Movement in Level 3 financial instruments (continued)
 
 
Assets
Liabilities
 
 
Available
for sale

Held for
trading

Designated
at fair value
through profit
or loss

Derivatives

Held for
trading

Designated
at fair value
through profit
or loss

Derivatives

 
Footnote
$m

$m

$m

$m

$m

$m

$m

At 1 Jan 2017
 
3,476

6,489

730

2,752

3,582

37

2,300

Total gains/(losses) recognised in profit or loss
 
329

(78
)
43

(50
)
103

(4
)
39

– trading income/(expense) excluding net interest income

 
—

(78
)
—

(50
)
103

—

39

– net income/(expense) from other financial instruments designated at fair value

 
—

—

43

—

—

(4
)
—

– gains less losses from financial investments
 
306

—

—

—

—

—

—

– loan impairment charges and other credit risk provisions
 
23

—

—

—

—

—

—

Total gains/(losses) recognised in other comprehensive income
1
(84
)
62

4

99

82

1

62

– available-for-sale investments: fair value gains
 
(150
)
—

—

—

—

—

—

– cash flow hedges: fair value gains
 
—

—

—

(30
)
—

—

(38
)
– exchange differences
 
66

62

4

129

82

1

100

Purchases
 
50

635

321

—

—

—

—

New issuances
 
—

—

—

—

977

—

—

Sales
 
(536
)
(2,161
)
(1
)
—

(12
)
—

—

Settlements
 
(10
)
(297
)
(28
)
(53
)
(433
)
—

67

Transfers out
 
(470
)
(35
)
(2
)
(164
)
(271
)
(33
)
(425
)
Transfers in
 
694

189

—

85

22

—

20

At 30 Jun 2017
 
3,449

4,804

1,067

2,669

4,050

1

2,063

Unrealised gains/(losses) recognised in profit or loss relating to assets and liabilities held at 30 Jun 2017
 
23

28

23

(48
)
228

—

106

– trading income/(expense) excluding net interest income

 
—

28

—

(48
)
228

—

106

– net income/(expense) from other financial instruments designated at fair value
 
—

—

23

—

—

—

—

– loan impairment recoveries and other credit risk provisions

 
23

—

—

—

—

—

—

At 1 Jul 2017
 
3,449

4,804

1,067

2,669

4,050

1

2,063

Total gains/(losses) recognised in profit or loss
 
22

(110
)
(150
)
202

51

(1
)
361

– trading income/(expense) excluding net interest income

 
—

(110
)
—

202

51

—

361

– net income/(expense) from other financial instruments designated at fair value

 
—

—

(150
)
—

—

(1
)
—

– gains less losses from financial investments
 
7

—

—

—

—

—

—

– loan impairment charges and other credit risk provisions
 
15

—

—

—

—

—

—

Total gains/(losses) recognised in other comprehensive income
1
155

44

3

89

87

—

58

– available-for-sale investments: fair value gains
 
120

—

—

—

—

—

—

– cash flow hedges: fair value gains
 
—

(1
)
3

7

—

—

3

– exchange differences
 
35

45

—

82

87

—

55

Purchases
 
150

868

806

2

5

—

23

New issuances
 
—

—

—

1

938

—

—

Sales
 
(403
)
(1,060
)
(129
)
(8
)
—

—

(12
)
Settlements
 
(59
)
(34
)
(138
)
(7
)
(565
)
—

(190
)
Transfers out
 
(95
)
(114
)
(1
)
(721
)
(407
)
—

(605
)
Transfers in
 
213

654

2

217

41

—

246

At 31 Dec 2017
 
3,432

5,052

1,460

2,444

4,200

—

1,944

Unrealised gains/(losses) recognised in profit or loss relating to assets and liabilities held at 31 Dec 2017
 
(7
)
(138
)
(169
)
266

(345
)
—

(503
)
– trading income/(expense) excluding net interest income

 
—

(138
)
—

266

(345
)
—

(503
)
– net income/(expense) from other financial instruments designated at fair value
 
—

—

(169
)
—

—

—

—

– loan impairment recoveries and other credit risk provisions

 
(7
)
—

—

—

—

—

—

1
Included in ‘Available-for-sale investments: fair value gains/(losses)’ for prior years and ‘financial investments: fair value gains/(losses)’ in the current year and ‘Exchange differences’ in the consolidated statement of comprehensive income.
Fair values of financial instruments not carried at fair value on the balance sheet
 
At 30 Jun 2018
At 31 Dec 2017
 
Carrying
amount

Fair
value

Carrying
amount

Fair
value

 
$m

$m

$m

$m

Assets
 
 
 
 
Loans and advances to banks
83,924

83,902

90,393

90,391

Loans and advances to customers
973,443

974,646

962,964

964,205

Reverse repurchase agreements – non-trading
208,104

208,156

201,553

201,538

Financial investments – at amortised cost
62,755

61,930

52,919

54,087

Liabilities
 
 
 
 
Deposits by banks
64,792

64,791

69,922

69,892

Customer accounts
1,356,307

1,356,275

1,364,462

1,364,625

Repurchase agreements – non-trading
158,295

158,303

130,002

129,996

Debt securities in issue
81,708

81,970

64,546

65,138

Subordinated liabilities
22,604

26,417

19,826

24,095
Fair values of financial instruments not carried at fair value and bases of valuation - liabilities
Financial instruments carried at fair value and bases of valuation
 
 
Valuation techniques
 
 
Quoted
market price
 Level 1

Using
observable
inputs
Level 2

With significant
unobservable
inputs
Level 3

Total

 
$m

$m

$m

$m

Recurring fair value measurements
 
 
 
 
At 30 Jun 2018
 
 
 
 
Assets
 
 
 
 
Trading assets
173,848

67,497

6,547

247,892

Financial assets designated and otherwise mandatorily measured at fair value through profit or loss
25,021

10,651

5,006

40,678

Derivatives
1,756

223,746

2,470

227,972

Financial investments
244,816

76,637

2,228

323,681

Liabilities
 
 
 
 
Trading liabilities
62,875

20,895

75

83,845

Financial liabilities designated at fair value
5,549

142,081

4,355

151,985

Derivatives
1,558

219,533

1,870

222,961

 
At 31 Dec 2017
 
 
 
 
Assets
 
 
 
 
Trading assets
181,168

101,775

5,052

287,995

Financial assets designated at fair value
24,622

3,382

1,460

29,464

Derivatives
1,017

216,357

2,444

219,818

Financial investments
227,943

104,692

3,432

336,067

Liabilities
 
 
 
 
Trading liabilities
62,710

117,451

4,200

184,361

Financial liabilities designated at fair value
4,164

90,265

—

94,429

Derivatives
1,635

213,242

1,944

216,821

Transfers between Level 1 and Level 2 fair values
 
Assets
Liabilities
 
Financial investments

Trading assets

Designated and otherwise mandatorily measured at fair value through profit or loss

Derivatives

Trading liabilities

Designated at fair value

Derivatives

 
$m

$m

$m

$m

$m

$m

$m

At 30 Jun 2018
 
 
 
 
 
 
 
Transfers from Level 1 to Level 2
12

233

2

1

42

—

—

Transfers from Level 2 to Level 1
13,163

5,143

—

128

2,261

—

138

 
 
 
 
 
 
 
 
 
Assets
Liabilities
 
Available
for sale

Held for trading

Designated
at fair value
through profit
or loss

Derivatives

Held for trading

Designated
at fair value through profit or loss

Derivatives

 
$m

$m

$m

$m

$m

$m

$m

At 31 Dec 2017
 
 
 
 
 
 
 
Transfers from Level 1 to Level 2
2,231

1,507

—

—

35

—

—

Transfers from Level 2 to Level 1
11,173

1,384

—

—

683

—

—

Financial instruments measured at fair value using a valuation technique with significant unobservable inputs – Level 3
 
Assets
Liabilities
 
Financial investments

Trading assets

Designated and otherwise mandatorily measured at fair value through profit or loss

Derivatives

Total

Trading liabilities

Designated at fair value1

Derivatives

Total

 
$m

$m

$m

$m

$m

$m

$m

$m

$m

Private equity including strategic investments
457

27

4,388

—

4,872

17

—

—

17

Asset-backed securities
1,022

1,223

4

—

2,249

—

—

—

—

Loans held for securitisation
—

—

50

—

50

—

—

—

—

Structured notes
—

3

—

—

3

58

4,355

—

4,413

Derivatives with monolines
—

—

—

75

75

—

—

—

—

Other derivatives
—

—

—

2,395

2,395

—

—

1,869

1,869

Other portfolios
749

5,294

564

—

6,607

—

—

1

1

At 30 Jun 2018
2,228

6,547

5,006

2,470

16,251

75

4,355

1,870

6,300

Private equity including strategic investments
2,012

38

1,458

—

3,508

20

—

—

20

Asset-backed securities
1,300

1,277

—

—

2,577

—

—

—

—

Loans held for securitisation
—

24

—

—

24

—

—

—

—

Structured notes
—

3

—

—

3

4,180

—

—

4,180

Derivatives with monolines
—

—

—

113

113

—

—

—

—

Other derivatives
—

—

—

2,331

2,331

—

—

1,944

1,944

Other portfolios
120

3,710

2

—

3,832

—

—

—

—

At 31 Dec 2017
3,432

5,052

1,460

2,444

12,388

4,200

—

1,944

6,144

1
Designated at fair value through profit or loss.
Movement in Level 3 financial instruments
 
 
Assets
Liabilities
 
 
Financial investments

Trading assets

Designated and otherwise mandatorily measured at fair value through profit or loss

Derivatives

Trading liabilities

Designated at fair value

Derivatives

 
Footnote
$m

$m

$m

$m

$m

$m

$m

At 1 Jan 2018
 
1,767

5,080

3,957

2,444

93

4,107

1,949

 
 
 
 
 
 
 
 
 
Total gains/(losses) recognised in profit or loss
 
253

228

245

126

(2
)
(460
)
(185
)
– net income from financial instruments held for trading or managed on a fair value basis
 
—

228

—

126

(2
)
—

(185
)
– net income from assets and liabilities of insurance businesses, including related derivatives, measured at fair value through profit or loss

 
—

—

—

—

—

(460
)
—

– changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss
 
—

—

245

—

—

—

—

– gains less losses from financial investments at fair value through other comprehensive income
 
253

—

—

—

—

—

—

– expected credit loss charges and other credit impairment charges

 
—

—

—

—

—

—

—

–
fair value gains transferred to the income statement on disposal
 
—

—

—

—

—

—

—

Total gains/(losses) recognised in other comprehensive income
1
64

(201
)
(92
)
(56
)
(2
)
(72
)
(34
)
– financial investments: fair value gains/(losses)
 
57

—

—

—

—

—

—

– cash flow hedges: fair value gains/(losses)
 
—

—

6

6

—

—

2

– fair value gains transferred to the income statement on disposal
 
—

—

—

—

—

—

—

– exchange differences
 
7

(201
)
(98
)
(62
)
(2
)
(72
)
(36
)
Purchases
 
242

4,032

1,202

—

2

46

—

New issuances
 
—

975

—

—

5

1,309

—

Sales
 
(24
)
(1,212
)
(98
)
—

(4
)
—

—

Settlements
 
(70
)
(1,682
)
(213
)
137

—

(172
)
317

Transfers out
 
(373
)
(941
)
(31
)
(199
)
(17
)
(479
)
(235
)
Transfers in
 
369

268

36

18

—

76

58

At 30 Jun 2018
 
2,228

6,547

5,006

2,470

75

4,355

1,870

Unrealised gains/(losses) recognised in profit or loss relating to assets and liabilities held at 30 Jun 2018
 
—

(47
)
177

44

(5
)
82

(111
)
– net income from financial instruments held for trading or managed on a fair value basis

 
—

(47
)
—

44

(5
)
—

(111
)
– net income from assets and liabilities of insurance businesses, including related derivatives, measured at fair value through profit or loss

 
—

—

—

—

—

82

—

– changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss

 
—

—

177

—

—

—

—

– loan impairment recoveries and other credit risk provisions
 
—

—

—

—

—

—

—

Movement in Level 3 financial instruments (continued)
 
 
Assets
Liabilities
 
 
Available
for sale

Held for
trading

Designated
at fair value
through profit
or loss

Derivatives

Held for
trading

Designated
at fair value
through profit
or loss

Derivatives

 
Footnote
$m

$m

$m

$m

$m

$m

$m

At 1 Jan 2017
 
3,476

6,489

730

2,752

3,582

37

2,300

Total gains/(losses) recognised in profit or loss
 
329

(78
)
43

(50
)
103

(4
)
39

– trading income/(expense) excluding net interest income

 
—

(78
)
—

(50
)
103

—

39

– net income/(expense) from other financial instruments designated at fair value

 
—

—

43

—

—

(4
)
—

– gains less losses from financial investments
 
306

—

—

—

—

—

—

– loan impairment charges and other credit risk provisions
 
23

—

—

—

—

—

—

Total gains/(losses) recognised in other comprehensive income
1
(84
)
62

4

99

82

1

62

– available-for-sale investments: fair value gains
 
(150
)
—

—

—

—

—

—

– cash flow hedges: fair value gains
 
—

—

—

(30
)
—

—

(38
)
– exchange differences
 
66

62

4

129

82

1

100

Purchases
 
50

635

321

—

—

—

—

New issuances
 
—

—

—

—

977

—

—

Sales
 
(536
)
(2,161
)
(1
)
—

(12
)
—

—

Settlements
 
(10
)
(297
)
(28
)
(53
)
(433
)
—

67

Transfers out
 
(470
)
(35
)
(2
)
(164
)
(271
)
(33
)
(425
)
Transfers in
 
694

189

—

85

22

—

20

At 30 Jun 2017
 
3,449

4,804

1,067

2,669

4,050

1

2,063

Unrealised gains/(losses) recognised in profit or loss relating to assets and liabilities held at 30 Jun 2017
 
23

28

23

(48
)
228

—

106

– trading income/(expense) excluding net interest income

 
—

28

—

(48
)
228

—

106

– net income/(expense) from other financial instruments designated at fair value
 
—

—

23

—

—

—

—

– loan impairment recoveries and other credit risk provisions

 
23

—

—

—

—

—

—

At 1 Jul 2017
 
3,449

4,804

1,067

2,669

4,050

1

2,063

Total gains/(losses) recognised in profit or loss
 
22

(110
)
(150
)
202

51

(1
)
361

– trading income/(expense) excluding net interest income

 
—

(110
)
—

202

51

—

361

– net income/(expense) from other financial instruments designated at fair value

 
—

—

(150
)
—

—

(1
)
—

– gains less losses from financial investments
 
7

—

—

—

—

—

—

– loan impairment charges and other credit risk provisions
 
15

—

—

—

—

—

—

Total gains/(losses) recognised in other comprehensive income
1
155

44

3

89

87

—

58

– available-for-sale investments: fair value gains
 
120

—

—

—

—

—

—

– cash flow hedges: fair value gains
 
—

(1
)
3

7

—

—

3

– exchange differences
 
35

45

—

82

87

—

55

Purchases
 
150

868

806

2

5

—

23

New issuances
 
—

—

—

1

938

—

—

Sales
 
(403
)
(1,060
)
(129
)
(8
)
—

—

(12
)
Settlements
 
(59
)
(34
)
(138
)
(7
)
(565
)
—

(190
)
Transfers out
 
(95
)
(114
)
(1
)
(721
)
(407
)
—

(605
)
Transfers in
 
213

654

2

217

41

—

246

At 31 Dec 2017
 
3,432

5,052

1,460

2,444

4,200

—

1,944

Unrealised gains/(losses) recognised in profit or loss relating to assets and liabilities held at 31 Dec 2017
 
(7
)
(138
)
(169
)
266

(345
)
—

(503
)
– trading income/(expense) excluding net interest income

 
—

(138
)
—

266

(345
)
—

(503
)
– net income/(expense) from other financial instruments designated at fair value
 
—

—

(169
)
—

—

—

—

– loan impairment recoveries and other credit risk provisions

 
(7
)
—

—

—

—

—

—

1
Included in ‘Available-for-sale investments: fair value gains/(losses)’ for prior years and ‘financial investments: fair value gains/(losses)’ in the current year and ‘Exchange differences’ in the consolidated statement of comprehensive income.
Fair values of financial instruments not carried at fair value on the balance sheet
 
At 30 Jun 2018
At 31 Dec 2017
 
Carrying
amount

Fair
value

Carrying
amount

Fair
value

 
$m

$m

$m

$m

Assets
 
 
 
 
Loans and advances to banks
83,924

83,902

90,393

90,391

Loans and advances to customers
973,443

974,646

962,964

964,205

Reverse repurchase agreements – non-trading
208,104

208,156

201,553

201,538

Financial investments – at amortised cost
62,755

61,930

52,919

54,087

Liabilities
 
 
 
 
Deposits by banks
64,792

64,791

69,922

69,892

Customer accounts
1,356,307

1,356,275

1,364,462

1,364,625

Repurchase agreements – non-trading
158,295

158,303

130,002

129,996

Debt securities in issue
81,708

81,970

64,546

65,138

Subordinated liabilities
22,604

26,417

19,826

24,095