NET INTEREST INCOME (Tables)

12 Months Ended

Dec. 31, 2017

Disclosure of interest income (expense) [text block] [Abstract]

Disclosure of interest income [text block]

	Weighted average effective interest rate
	2017 %		2016 %		2015 %		2017 £m			2016 £m			2015 £m
Interest and similar income:
Loans and advances to customers		3.16		3.32		3.50		14,712			15,190			16,256
Loans and advances to banks		0.40		0.46		0.42		271			381			397
Debt securities held as loans and receivables		1.29		1.47		1.87		43			56			40
Interest receivable on loans and receivables		2.81		2.87		2.98		15,026			15,627			16,693
Available-for-sale financial assets		1.96		1.88		1.77		980			762			725
Held-to-maturity investments		–		1.44		1.49		–			231			197
Total interest and similar income1		2.73		2.77		2.86		16,006			16,620			17,615
Interest and similar expense:
Deposits from banks, excluding liabilities under sale and repurchase transactions		1.18		0.65		0.41		(80	)		(68	)		(43	)
Customer deposits, excluding liabilities under sale and repurchase transactions		0.49		0.69		0.87		(1,722	)		(2,520	)		(3,299	)
Debt securities in issue2		0.37		0.94		0.69		(266	)		(799	)		(586	)
Subordinated liabilities		7.93		8.35		8.37		(1,481	)		(1,864	)		(2,091	)
Liabilities under sale and repurchase agreements		0.58		0.46		0.57		(110	)		(38	)		(34	)
Interest payable on liabilities held at amortised cost		0.79		1.07		1.19		(3,659	)		(5,289	)		(6,053	)
Amounts payable to unitholders in consolidated open-ended investment vehicles		9.15		10.85		1.16		(1,435	)		(2,057	)		(244	)
Total interest and similar expense3		1.06		1.44		1.19		(5,094	)		(7,346	)		(6,297	)
Net interest income								10,912			9,274			11,318

1	Includes £12 million (2016: £nil; 2015: £nil) of interest income on liabilities with negative interest rates.
2	The impact of the Group’s hedging arrangements is included on this line; excluding this impact the weighted average effective interest rate in respect of debt securities in issue would be 2.43 per cent (2016: 2.70 per cent; 2015: 2.76 per cent).
3	Includes £50 million (2016: £51 million; 2015: £nil) of interest expense on assets with negative interest rates.