LOANS AND ADVANCES TO CUSTOMERS

12 Months Ended

Dec. 31, 2017

Disclosure of loans and advances to customers [text block] [Abstract]

Disclosure of loans and advances to customers [text block]

NOTE 17: LOANS AND ADVANCES TO CUSTOMERS

	2017 £m			2016 £m
Agriculture, forestry and fishing		7,461			7,269
Energy and water supply		1,609			2,320
Manufacturing		7,886			7,285
Construction		4,428			4,535
Transport, distribution and hotels		14,074			13,320
Postal and telecommunications		2,148			2,564
Property companies		30,980			32,192
Financial, business and other services		57,006			49,197
Personal:
Mortgages		304,665			306,682
Other		28,757			20,761
Lease financing		2,094			2,628
Hire purchase		13,591			11,617
Total loans and advances to customers before allowance for impairment losses		474,699			460,370
Allowance for impairment losses (note 20)		(2,201	)		(2,412	)
Total loans and advances to customers		472,498			457,958

For amounts included above which are subject to reverse repurchase agreements see note 51.

Loans and advances to customers include finance lease receivables, which may be analysed as follows:

	2017 £m			2016 £m
Gross investment in finance leases, receivable:
Not later than 1 year		680			551
Later than 1 year and not later than 5 years		1,106			1,618
Later than 5 years		1,053			1,561
		2,839			3,730
Unearned future finance income on finance leases		(692	)		(1,038	)
Rentals received in advance		(53	)		(64	)
Net investment in finance leases		2,094			2,628

The net investment in finance leases represents amounts recoverable as follows:

	2017		2016
	£m		£m
Not later than 1 year		546		361
Later than 1 year and not later than 5 years		887		1,282
Later than 5 years		661		985
Net investment in finance leases		2,094		2,628

Equipment leased to customers under finance leases primarily relates to structured financing transactions to fund the purchase of aircraft, ships and other large individual value items. During 2016 and 2017 no contingent rentals in respect of finance leases were recognised in the income statement. There was no allowance for uncollectable finance lease receivables included in the allowance for impairment losses (2016: £nil).