ALLOWANCE FOR IMPAIRMENT LOSSES (Tables)

12 Months Ended

Dec. 31, 2018

ALLOWANCE FOR IMPAIRMENT LOSSES (Tables) [Line Items]

Disclosure of movement in the allowance for impairment losses

ANALYSIS OF MOVEMENT IN THE ALLOWANCE FOR IMPAIRMENT LOSSES BY STAGE

	Stage 1 £m			Stage 2 £m			Stage 3 £m			Purchased or originated credit-impaired £m		Total £m
In respect of drawn balances
Balance at 31 December 2017													2,227
Adjustment on adoption of IFRS 9 (note 54)													1,033
Balance at 1 January 2018		590			1,147			1,491			32		3,260
Exchange and other adjustments		2			–			133			–		135
Transfers to Stage 1		304			(299	)		(5	)				–
Transfers to Stage 2		(46	)		85			(39	)				–
Transfers to Stage 3		(32	)		(131	)		163					–
Impact of transfers between stages		(233	)		401			325					493
		(7	)		56			444					493
Other items charged to the income statement		(58	)		(107	)		696			–		531
Charge to the income statement (note 13)		(65	)		(51	)		1,140			–		1,024
Advances written off								(1,605	)		–		(1,605	)
Disposal of businesses1		–			(102	)		(79	)		–		(181	)
Recoveries of advances written off in previous years								553			27		580
Discount unwind								(63	)		19		(44	)
At 31 December 2018		527			994			1,570			78		3,169
In respect of undrawn balances
Balance at 31 December 2017													30
Adjustment on adoption of IFRS 9 (note 54)													243
Balance at 1 January 2018		147			126			–			–		273
Exchange and other adjustments		(5	)		(14	)		12			–		(7	)
Transfers to Stage 1		28			(28	)		–					–
Transfers to Stage 2		(6	)		6			–					–
Transfers to Stage 3		(2	)		(5	)		7					–
Impact of transfers between stages		(25	)		22			(5	)				(8	)
		(5	)		(5	)		2					(8	)
Other items charged to the income statement		(14	)		(43	)		(8	)		–		(65	)
Charge to the income statement (note 13)		(19	)		(48	)		(6	)		–		(73	)
At 31 December 2018		123			64			6			–		193
Total		650			1,058			1,576			78		3,362
In respect of:
Loans and advances to banks		2			–			–			–		2
Loans and advances to customers		525			994			1,553			78		3,150
Debt securities		–			–			6			–		6
Financial assets at amortised cost		527			994			1,559			78		3,158
Other assets		–			–			11			–		11
Provisions in relation to loan commitments and financial guarantees		123			64			6			–		193
Total		650			1,058			1,576			78		3,362
Expected credit loss in respect of financial assets at fair value through other comprehensive income (memorandum item)		1			–			–			–		1

1 Reflects the sale of the Group’s Irish mortgage portfolio.

Disclosure of impairment [text block]

	Stage 1 £m			Stage 2 £m			Stage 3 £m			Purchased or originated credit-impaired £m			Total £m
Year ended 31 December 2018
Impact of transfers between stages		(12	)		51			446			–			485
Other changes in credit quality		(20	)		(47	)		541			69			543
Additions (repayments)		18			(82	)		43			(69	)		(90	)
Methodology changes		(71	)		(21	)		72			–			(20	)
Other items		(13	)		–			32			–			19
Other items impacting the impairment charge		(86	)		(150	)		688			–			452
Total impairment		(98	)		(99	)		1,134			–			937
In respect of:
Loans and advances to banks		1			–			–			–			1
Loans and advances to customers		(66	)		(51	)		1,139			–			1,022
Debt securities		–			–			–			–			–
Financial assets at amortised cost		(65	)		(51	)		1,139			–			1,023
Other assets		–			–			1			–			1
Impairment charge on drawn balances		(65	)		(51	)		1,140			–			1,024
Loan commitments and financial guarantees		(19	)		(48	)		(6	)		–			(73	)
Financial assets at fair value through other comprehensive income		(14	)		–			–			–			(14	)
Total impairment		(98	)		(99	)		1,134			–			937

Disclosure of allowance for Credit Losses Explanatory [text block]

	Loans and advances to customers £m			Debt securities £m			Total £m
At 1 January 2017		2,412			76			2,488
Exchange and other adjustments		132			–			132
Advances written off		(1,499	)		(44	)		(1,543	)
Recoveries of advances written off in previous years		482			–			482
Unwinding of discount		(23	)		–			(23	)
Charge (release) to the income statement (note 13)		697			(6	)		691
At 31 December 2017		2,201			26			2,227

Impairment charged to the income statement

ALLOWANCE FOR IMPAIRMENT LOSSES (Tables) [Line Items]

Disclosure of impairment [text block]

The Group income statement charge comprises:

	£m
Drawn balances	1,024
Undrawn balances	(73	)
Financial assets at fair value through other comprehensive income	(14	)
Total	937