FINANCIAL RISK MANAGEMENT (Tables)

12 Months Ended

Dec. 31, 2019

FINANCIAL RISK MANAGEMENT (Tables) [Line Items]

Disclosure of structural foreign currency exposures [text block]

The Group’s main overseas operations are in the Americas and Europe. Details of the Group’s structural foreign currency exposures are as follows:

	2019						2018
	Euro £m		US Dollar £m		Other non-sterling £m		Euro £m		US Dollar £m		Other non-sterling £m
Exposure		63		93		48		112		59		60

Disclosure of credit risk exposure [text block]

	2019						2018
		Maximum exposure £m	Offset2 £m		Net exposure £m			Maximum exposure £m	Offset2 £m		Net exposure £m
Loans and advances to banks, net1		9,775	–			9,775		6,283	–			6,283
Loans and advances to customers, net1		494,988	(2,792	)		492,196		484,858	(3,241	)		481,617
Debt securities, net1		5,544	–			5,544		5,238	–			5,238
Financial assets at amortised cost		510,307	(2,792	)		507,515		496,379	(3,241	)		493,138
Financial assets at fair value through other comprehensive income3		24,865	–			24,865		24,794	–			24,794
Financial assets at fair value through profit or loss:3,4
Loans and advances		23,475	–			23,475		40,876	–			40,876
Debt securities, treasury and other bills		40,925	–			40,925		40,168	–			40,168
		64,400	–			64,400		81,044	–			81,044
Derivative assets		26,369	(14,696	)		11,673		23,595	(14,327	)		9,268
Assets arising from reinsurance contracts held		23,567	–			23,567		7,860	–			7,860
Off-balance sheet items:
Acceptances and endorsements		74	–			74		194	–			194
Other items serving as direct credit substitutes		366	–			366		632	–			632
Performance bonds and other transaction-related contingencies		2,454	–			2,454		2,425	–			2,425
Irrevocable commitments and guarantees		63,504	–			63,504		64,884	–			64,884
		66,398	–			66,398		68,135	–			68,135
		715,906	(17,488	)		698,418		701,807	(17,568	)		684,239

Schedule of credit quality of assets [text block]

Gross drawn exposures	PD range	Stage 1 £m		Stage 2 £m		Stage 3 £m		Purchased or originated credit-impaired £m		Total £m
At 31 December 2019
Loans and advances to banks:
CMS 1-10	0.00-0.50%		9,777		–		–		–		9,777
CMS 11-14	0.51-3.00%		–		–		–		–		–
CMS 15-18	3.01-20.00%		–		–		–		–		–
CMS 19	20.01-99.99%		–		–		–		–		–
CMS 20-23	100%		–		–		–		–		–
			9,777		–		–		–		9,777
Loans and advances to customers:
Retail - mortgages
RMS 1-6	0.00-4.50%		257,028		13,494		–		–		270,522
RMS 7-9	4.51-14.00%		15		2,052		–		–		2,067
RMS 10	14.01-20.00%		–		414		–		–		414
RMS 11-13	20.01-99.99%		–		975		–		–		975
RMS 14	100%		–		–		1,506		13,714		15,220
			257,043		16,935		1,506		13,714		289,198
Retail - unsecured
RMS 1-6	0.00-4.50%		22,151		1,098		–		–		23,249
RMS 7-9	4.51-14.00%		2,676		919		–		–		3,595
RMS 10	14.01-20.00%		76		189		–		–		265
RMS 11-13	20.01-99.99%		18		606		–		–		624
RMS 14	100%		–		–		678		–		678
			24,921		2,812		678		–		28,411
Retail - UK Motor Finance
RMS 1-6	0.00-4.50%		13,568		1,297		–		–		14,865
RMS 7-9	4.51-14.00%		314		368		–		–		682
RMS 10	14.01-20.00%		–		99		–		–		99
RMS 11-13	20.01-99.99%		2		178		–		–		180
RMS 14	100%		–		–		150		–		150
			13,884		1,942		150		–		15,976
Retail - Other
RMS 1-6	0.00-4.50%		9,520		390		–		–		9,910
RMS 7-9	4.51-14.00%		–		409		–		–		409
RMS 10	14.01-20.00%		–		7		–		–		7
RMS 11-13	20.01-99.99%		134		23		–		–		157
RMS 14	100%		–		–		150		–		150
			9,654		829		150		–		10,633
Total Retail			305,502		22,518		2,484		13,714		344,218

Gross drawn exposures (continued)	PD range	Stage 1 £m		Stage 2 £m		Stage 3 £m		Purchased or originated credit-impaired £m		Total £m
At 31 December 2019
Commercial
CMS 1-10	0.00-0.50%		59,880		379		–		–		60,259
CMS 11-14	0.51-3.00%		25,638		2,322		–		–		27,960
CMS 15-18	3.01-20.00%		1,805		3,123		–		–		4,928
CMS 19	20.01-99.99%		–		169		–		–		169
CMS 20-23	100%		–		–		3,447		–		3,447
			87,323		5,993		3,447		–		96,763
Other
RMS 1-6	0.00-4.50%		754		32		–		–		786
RMS 7-9	4.51-14.00%		40		–		–		–		40
RMS 10	14.01-20.00%		–		–		–		–		–
RMS 11-13	20.01-99.99%		–		–		–		–		–
RMS 14	100%		–		–		84		–		84
			794		32		84		–		910
CMS 1-10	0.00-0.50%		56,356		–		–		–		56,356
CMS 11-14	0.51-3.00%		–		–		–		–		–
CMS 15-18	3.01-20.00%		–		–		–		–		–
CMS 19	20.01-99.99%		–		–		–		–		–
CMS 20-23	100%		–		–		–		–		–
			56,356		–		–		–		56,356
Total loans and advances to customers			449,975		28,543		6,015		13,714		498,247
In respect of:
Retail			305,502		22,518		2,484		13,714		344,218
Commercial			87,323		5,993		3,447		–		96,763
Other			57,150		32		84		–		57,266
Total loans and advances to customers			449,975		28,543		6,015		13,714		498,247

Expected credit losses in respect of drawn exposures	PD range	Stage 1 £m		Stage 2 £m		Stage 3 £m		Purchased or originated credit-impaired £m		Total £m
At 31 December 2019
Loans and advances to banks:
CMS 1-10	0.00-0.50%		2		–		–		–		2
CMS 11-14	0.51-3.00%		–		–		–		–		–
CMS 15-18	3.01-20.00%		–		–		–		–		–
CMS 19	20.01-99.99%		–		–		–		–		–
CMS 20-23	100%		–		–		–		–		–
			2		–		–		–		2
Loans and advances to customers:
Retail - mortgages
RMS 1-6	0.00-4.50%		23		183		–		–		206
RMS 7-9	4.51-14.00%		–		39		–		–		39
RMS 10	14.01-20.00%		–		13		–		–		13
RMS 11-13	20.01-99.99%		–		46		–		–		46
RMS 14	100%		–		–		122		142		264
			23		281		122		142		568
Retail - unsecured
RMS 1-6	0.00-4.50%		188		42		–		–		230
RMS 7-9	4.51-14.00%		103		92		–		–		195
RMS 10	14.01-20.00%		7		34		–		–		41
RMS 11-13	20.01-99.99%		3		193		–		–		196
RMS 14	100%		–		–		233		–		233
			301		361		233		–		895
Retail - UK Motor Finance
RMS 1-6	0.00-4.50%		203		30		–		–		233
RMS 7-9	4.51-14.00%		10		15		–		–		25
RMS 10	14.01-20.00%		–		10		–		–		10
RMS 11-13	20.01-99.99%		1		32		–		–		33
RMS 14	100%		–		–		84		–		84
			214		87		84		–		385
Retail - Other
RMS 1-6	0.00-4.50%		25		9		–		–		34
RMS 7-9	4.51-14.00%		–		27		–		–		27
RMS 10	14.01-20.00%		–		–		–		–		–
RMS 11-13	20.01-99.99%		–		1		–		–		1
RMS 14	100%		–		–		51		–		51
			25		37		51		–		113
Total Retail			563		766		490		142		1,961

Expected credit losses in respect of drawn exposures (continued)	PD range	Stage 1 £m		Stage 2 £m		Stage 3 £m		Purchased or originated credit-impaired £m		Total £m
At 31 December 2019
Commercial
CMS 1-10	0.00-0.50%		33		1		–		–		34
CMS 11-14	0.51-3.00%		50		37		–		–		87
CMS 15-18	3.01-20.00%		13		174		–		–		187
CMS 19	20.01-99.99%		–		16		–		–		16
CMS 20-23	100%		–		–		941		–		941
			96		228		941		–		1,265
Other
RMS 1-6	0.00-4.50%		6		1		–		–		7
RMS 7-9	4.51-14.00%		–		–		–		–		–
RMS 10	14.01-20.00%		–		–		–		–		–
RMS 11-13	20.01-99.99%		–		–		–		–		–
RMS 14	100%		–		–		16		–		16
			6		1		16		–		23
CMS 1-10	0.00-0.50%		10		–		–		–		10
CMS 11-14	0.51-3.00%		–		–		–		–		–
CMS 15-18	3.01-20.00%		–		–		–		–		–
CMS 19	20.01-99.99%		–		–		–		–		–
CMS 20-23	100%		–		–		–		–		–
			10		–		–		–		10
Total loans and advances to customers			675		995		1,447		142		3,259
In respect of:
Retail			563		766		490		142		1,961
Commercial			96		228		941		–		1,265
Other			16		1		16		–		33
Total loans and advances to customers			675		995		1,447		142		3,259

Gross undrawn exposures	PD range	Stage 1 £m		Stage 2 £m		Stage 3 £m		Purchased or originated credit-impaired £m		Total £m
At 31 December 2019
Loans and advances to customers:
Retail - mortgages
RMS 1-6	0.00-4.50%		12,242		62		–		–		12,304
RMS 7-9	4.51-14.00%		1		1		–		–		2
RMS 10	14.01-20.00%		–		–		–		–		–
RMS 11-13	20.01-99.99%		–		–		–		–		–
RMS 14	100%		–		–		8		79		87
			12,243		63		8		79		12,393
Retail - unsecured
RMS 1-6	0.00-4.50%		60,653		1,986		–		–		62,639
RMS 7-9	4.51-14.00%		389		218		–		–		607
RMS 10	14.01-20.00%		5		39		–		–		44
RMS 11-13	20.01-99.99%		1		73		–		–		74
RMS 14	100%		–		–		83		–		83
			61,048		2,316		83		–		63,447
Retail - UK Motor Finance
RMS 1-6	0.00-4.50%		1,181		–		–		–		1,181
RMS 7-9	4.51-14.00%		193		4		–		–		197
RMS 10	14.01-20.00%		–		–		–		–		–
RMS 11-13	20.01-99.99%		–		–		–		–		–
RMS 14	100%		–		–		–		–		–
			1,374		4		–		–		1,378
Retail - Other
RMS 1-6	0.00-4.50%		1,240		–		–		–		1,240
RMS 7-9	4.51-14.00%		–		62		–		–		62
RMS 10	14.01-20.00%		–		–		–		–		–
RMS 11-13	20.01-99.99%		–		–		–		–		–
RMS 14	100%		–		–		3		–		3
			1,240		62		3		–		1,305
Total Retail			75,905		2,445		94		79		78,523

Gross undrawn exposures (continued)	PD range	Stage 1 £m		Stage 2 £m		Stage 3 £m		Purchased or originated credit-impaired £m		Total £m
At 31 December 2019
Commercial
CMS 1-10	0.00-0.50%		47,707		76		–		–		47,783
CMS 11-14	0.51-3.00%		5,134		850		–		–		5,984
CMS 15-18	3.01-20.00%		258		327		–		–		585
CMS 19	20.01-99.99%		–		43		–		–		43
CMS 20-23	100%		–		–		5		–		5
			53,099		1,296		5		–		54,400
Other
RMS 1-6	0.00-4.50%		239		–		–		–		239
RMS 7-9	4.51-14.00%		–		–		–		–		–
RMS 10	14.01-20.00%		–		–		–		–		–
RMS 11-13	20.01-99.99%		–		–		–		–		–
RMS 14	100%		–		–		–		–		–
			239		–		–		–		239
CMS 1-10	0.00-0.50%		391		–		–		–		391
CMS 11-14	0.51-3.00%		–		–		–		–		–
CMS 15-18	3.01-20.00%		–		–		–		–		–
CMS 19	20.01-99.99%		–		–		–		–		–
CMS 20-23	100%		–		–		–		–		–
			391		–		–		–		391
Total loans and advances to customers			129,634		3,741		99		79		133,553
In respect of:
Retail			75,905		2,445		94		79		78,523
Commercial			53,099		1,296		5		–		54,400
Other			630		–		–		–		630
Total loans and advances to customers			129,634		3,741		99		79		133,553

Expected credit losses in respect of undrawn exposures	PD range	Stage 1 £m		Stage 2 £m		Stage 3 £m		Purchased or originated credit-impaired £m		Total £m
At 31 December 2019
Loans and advances to customers:
Retail - mortgages
RMS 1-6	0.00-4.50%		1		–		–		–		1
RMS 7-9	4.51-14.00%		–		–		–		–		–
RMS 10	14.01-20.00%		–		–		–		–		–
RMS 11-13	20.01-99.99%		–		–		–		–		–
RMS 14	100%		–		–		–		–		–
			1		–		–		–		1
Retail - unsecured
RMS 1-6	0.00-4.50%		56		24		–		–		80
RMS 7-9	4.51-14.00%		6		8		–		–		14
RMS 10	14.01-20.00%		–		3		–		–		3
RMS 11-13	20.01-99.99%		–		15		–		–		15
RMS 14	100%		–		–		–		–		–
			62		50		–		–		112
Retail - UK Motor Finance
RMS 1-6	0.00-4.50%		2		–		–		–		2
RMS 7-9	4.51-14.00%		–		–		–		–		–
RMS 10	14.01-20.00%		–		–		–		–		–
RMS 11-13	20.01-99.99%		–		–		–		–		–
RMS 14	100%		–		–		–		–		–
			2		–		–		–		2
Retail - Other
RMS 1-6	0.00-4.50%		11		–		–		–		11
RMS 7-9	4.51-14.00%		–		3		–		–		3
RMS 10	14.01-20.00%		–		–		–		–		–
RMS 11-13	20.01-99.99%		–		–		–		–		–
RMS 14	100%		–		–		–		–		–
			11		3		–		–		14
Total Retail			76		53		–		–		129

Expected credit losses in respect of undrawn exposures (continued)	PD range	Stage 1 £m		Stage 2 £m		Stage 3 £m		Purchased or originated credit-impaired £m		Total £m
At 31 December 2019
Commercial
CMS 1-10	0.00-0.50%		11		–		–		–		11
CMS 11-14	0.51-3.00%		7		9		–		–		16
CMS 15-18	3.01-20.00%		1		13		–		–		14
CMS 19	20.01-99.99%		–		2		–		–		2
CMS 20-23	100%		–		–		5		–		5
			19		24		5		–		48
Other
RMS 1-6	0.00-4.50%		–		–		–		–		–
RMS 7-9	4.51-14.00%		–		–		–		–		–
RMS 10	14.01-20.00%		–		–		–		–		–
RMS 11-13	20.01-99.99%		–		–		–		–		–
RMS 14	100%		–		–		–		–		–
			–		–		–		–		–
CMS 1-10	0.00-0.50%		–		–		–		–		–
CMS 11-14	0.51-3.00%		–		–		–		–		–
CMS 15-18	3.01-20.00%		–		–		–		–		–
CMS 19	20.01-99.99%		–		–		–		–		–
CMS 20-23	100%		–		–		–		–		–
			–		–		–		–		–
Total loans and advances to customers			95		77		5		–		177
In respect of:
Retail			76		53		–		–		129
Commercial			19		24		5		–		48
Other			–		–		–		–		–
Total loans and advances to customers			95		77		5		–		177

Gross drawn exposures	PD range	Stage 1 £m		Stage 2  £m		Stage 3  £m		Purchased or originated credit-impaired £m		Total £m
At 31 December 2018
Loans and advances to banks:
CMS 1-10	0.00-0.50%		6,177		3		–		–		6,180
CMS 11-14	0.51-3.00%		105		–		–		–		105
CMS 15-18	3.01-20.00%		–		–		–		–		–
CMS 19	20.01-99.99%		–		–		–		–		–
CMS 20-23	100%		–		–		–		–		–
			6,282		3		–		–		6,285
Loans and advances to customers:
Retail - mortgages
RMS 1-6	0.00-4.50%		257,740		10,784		–		–		268,524
RMS 7-9	4.51-14.00%		57		1,709		–		–		1,766
RMS 10	14.01-20.00%		–		262		–		–		262
RMS 11-13	20.01-99.99%		–		899		–		–		899
RMS 14	100%		–		–		1,393		15,391		16,784
			257,797		13,654		1,393		15,391		288,235
Retail - unsecured
RMS 1-6	0.00-4.50%		22,363		1,079		–		–		23,442
RMS 7-9	4.51-14.00%		2,071		774		–		–		2,845
RMS 10	14.01-20.00%		72		167		–		–		239
RMS 11-13	20.01-99.99%		199		687		–		–		886
RMS 14	100%		–		–		703		–		703
			24,705		2,707		703		–		28,115
Retail - UK Motor Finance
RMS 1-6	0.00-4.50%		12,918		954		–		–		13,872
RMS 7-9	4.51-14.00%		301		318		–		–		619
RMS 10	14.01-20.00%		–		111		–		–		111
RMS 11-13	20.01-99.99%		5		197		–		–		202
RMS 14	100%		–		–		129		–		129
			13,224		1,580		129		–		14,933
Retail - Other
RMS 1-6	0.00-4.50%		9,033		704		–		–		9,737
RMS 7-9	4.51-14.00%		190		66		–		–		256
RMS 10	14.01-20.00%		–		7		–		–		7
RMS 11-13	20.01-99.99%		211		23		–		–		234
RMS 14	100%		–		–		165		–		165
			9,434		800		165		–		10,399
Total Retail			305,160		18,741		2,390		15,391		341,682

Gross drawn exposures (continued)	PD range	Stage 1 £m		Stage 2 £m		Stage 3 £m		Purchased or originated credit-impaired £m		Total £m
At 31 December 2018
Commercial
CMS 1-10	0.00-0.50%		65,089		100		–		–		65,189
CMS 11-14	0.51-3.00%		25,472		3,450		–		–		28,922
CMS 15-18	3.01-20.00%		1,441		2,988		–		–		4,429
CMS 19	20.01-99.99%		–		54		–		–		54
CMS 20-23	100%		–		–		3,230		–		3,230
			92,002		6,592		3,230		–		101,824
Other
RMS 1-6	0.00-4.50%		804		6		–		–		810
RMS 7-9	4.51-14.00%		–		–		–		–		–
RMS 10	14.01-20.00%		–		–		–		–		–
RMS 11-13	20.01-99.99%		–		–		–		–		–
RMS 14	100%		–		–		55		–		55
			804		6		55		–		865
CMS 1-10	0.00-0.50%		43,565		–		–		–		43,565
CMS 11-14	0.51-3.00%		–		6		–		–		6
CMS 15-18	3.01-20.00%		–		–		–		–		–
CMS 19	20.01-99.99%		–		–		–		–		–
CMS 20-23	100%		–		–		66		–		66
			43,565		6		66		–		43,637
Total loans and advances to customers			441,531		25,345		5,741		15,391		488,008
In respect of:
Retail			305,160		18,741		2,390		15,391		341,682
Commercial			92,002		6,592		3,230		–		101,824
Other			44,369		12		121		–		44,502
Total loans and advances to customers			441,531		25,345		5,741		15,391		488,008

Expected credit losses in respect of drawn exposures	PD range	Stage 1 £m		Stage 2 £m		Stage 3 £m		Purchased or originated credit-impaired £m		Total £m
At 31 December 2018
Loans and advances to banks:
CMS 1-10	0.00-0.50%		2		–		–		–		2
CMS 11-14	0.51-3.00%		–		–		–		–		–
CMS 15-18	3.01-20.00%		–		–		–		–		–
CMS 19	20.01-99.99%		–		–		–		–		–
CMS 20-23	100%		–		–		–		–		–
			2		–		–		–		2
Loans and advances to customers:
Retail - mortgages
RMS 1-6	0.00-4.50%		37		141		–		–		178
RMS 7-9	4.51-14.00%		–		34		–		–		34
RMS 10	14.01-20.00%		–		9		–		–		9
RMS 11-13	20.01-99.99%		–		42		–		–		42
RMS 14	100%		–		–		118		78		196
			37		226		118		78		459
Retail - unsecured
RMS 1-6	0.00-4.50%		135		45		–		–		180
RMS 7-9	4.51-14.00%		57		83		–		–		140
RMS 10	14.01-20.00%		4		29		–		–		33
RMS 11-13	20.01-99.99%		3		172		–		–		175
RMS 14	100%		–		–		228		–		228
			199		329		228		–		756
Retail - UK Motor Finance
RMS 1-6	0.00-4.50%		114		19		–		–		133
RMS 7-9	4.51-14.00%		6		15		–		–		21
RMS 10	14.01-20.00%		–		11		–		–		11
RMS 11-13	20.01-99.99%		1		34		–		–		35
RMS 14	100%		–		–		78		–		78
			121		79		78		–		278
Retail - Other
RMS 1-6	0.00-4.50%		30		25		–		–		55
RMS 7-9	4.51-14.00%		2		2		–		–		4
RMS 10	14.01-20.00%		–		–		–		–		–
RMS 11-13	20.01-99.99%		–		1		–		–		1
RMS 14	100%		–		–		60		–		60
			32		28		60		–		120
Total Retail			389		662		484		78		1,613

Expected credit losses in respect of drawn exposures (continued)	PD range	Stage 1 £m		Stage 2 £m		Stage 3 £m		Purchased or originated credit-impaired £m		Total £m
At 31 December 2018
Commercial
CMS 1-10	0.00-0.50%		32		1		–		–		33
CMS 11-14	0.51-3.00%		50		86		–		–		136
CMS 15-18	3.01-20.00%		11		231		–		–		242
CMS 19	20.01-99.99%		–		7		–		–		7
CMS 20-23	100%		–		–		1,031		–		1,031
			93		325		1,031		–		1,449
Other
RMS 1-6	0.00-4.50%		43		1		–		–		44
RMS 7-9	4.51-14.00%		–		–		–		–		–
RMS 10	14.01-20.00%		–		–		–		–		–
RMS 11-13	20.01-99.99%		–		–		–		–		–
RMS 14	100%		–		–		11		–		11
			43		1		11				55
CMS 1-10	0.00-0.50%		–		–		–		–		–
CMS 11-14	0.51-3.00%		–		6		–		–		6
CMS 15-18	3.01-20.00%		–		–		–		–		–
CMS 19	20.01-99.99%		–		–		–		–		–
CMS 20-23	100%		–		–		27		–		27
			–		6		27		–		33
Total loans and advances to customers			525		994		1,553		78		3,150
In respect of:
Retail			389		662		484		78		1,613
Commercial			93		325		1,031		–		1,449
Other			43		7		38		–		88
Total loans and advances to customers			525		994		1,553		78		3,150

Gross undrawn exposures	PD range	Stage 1 £m		Stage 2 £m		Stage 3 £m		Purchased or originated credit-impaired £m		Total £m
At 31 December 2018
Loans and advances to customers:
Retail - mortgages
RMS 1-6	0.00-4.50%		12,024		19		–		–		12,043
RMS 7-9	4.51-14.00%		2		1		–		–		3
RMS 10	14.01-20.00%		–		–		–		–		–
RMS 11-13	20.01-99.99%		–		–		–		–		–
RMS 14	100%		–		–		5		90		95
			12,026		20		5		90		12,141
Retail - unsecured
RMS 1-6	0.00-4.50%		57,433		1,811		–		–		59,244
RMS 7-9	4.51-14.00%		391		155		–		–		546
RMS 10	14.01-20.00%		10		27		–		–		37
RMS 11-13	20.01-99.99%		3		51		–		–		54
RMS 14	100%		–		–		36		–		36
			57,837		2,044		36		–		59,917
Retail - UK Motor Finance
RMS 1-6	0.00-4.50%		1,565		–		–		–		1,565
RMS 7-9	4.51-14.00%		141		–		–		–		141
RMS 10	14.01-20.00%		–		–		–		–		–
RMS 11-13	20.01-99.99%		–		–		–		–		–
RMS 14	100%		–		–		–		–		–
			1,706		–		–		–		1,706
Retail - Other
RMS 1-6	0.00-4.50%		1,381		47		–		–		1,428
RMS 7-9	4.51-14.00%		–		–		–		–		–
RMS 10	14.01-20.00%		–		–		–		–		–
RMS 11-13	20.01-99.99%		360		–		–		–		360
RMS 14	100%		–		–		3		–		3
			1,741		47		3		–		1,791
Total Retail			73,310		2,111		44		90		75,555

Gross undrawn exposures (continued)	PD range	Stage 1 £m		Stage 2 £m		Stage 3 £m		Purchased or originated credit-impaired £m		Total £m
At 31 December 2018
Commercial
CMS 1-10	0.00-0.50%		51,632		–		–		–		51,632
CMS 11-14	0.51-3.00%		6,501		693		–		–		7,194
CMS 15-18	3.01-20.00%		126		297		–		–		423
CMS 19	20.01-99.99%		31		11		–		–		42
CMS 20-23	100%		–		–		6		–		6
			58,290		1,001		6		–		59,297
Other
RMS 1-6	0.00-4.50%		246		–		–		–		246
RMS 7-9	4.51-14.00%		–		–		–		–		–
RMS 10	14.01-20.00%		–		–		–		–		–
RMS 11-13	20.01-99.99%		–		–		–		–		–
RMS 14	100%		–		–		–		–		–
			246		–		–		–		246
CMS 1-10	0.00-0.50%		–		–		–		–		–
CMS 11-14	0.51-3.00%		–		–		–		–		–
CMS 15-18	3.01-20.00%		–		–		–		–		–
CMS 19	20.01-99.99%		–		–		–		–		–
CMS 20-23	100%		–		–		–		–		–
			–		–		–		–		–
Total loans and advances to customers			131,846		3,112		50		90		135,098
In respect of:
Retail			73,310		2,111		44		90		75,555
Commercial			58,290		1,001		6		–		59,297
Other			246		–		–		–		246
Total loans and advances to customers			131,846		3,112		50		90		135,098

Expected credit losses in respect of undrawn exposures	PD range	Stage 1 £m		Stage 2 £m		Stage 3 £m		Purchased or originated credit-impaired £m		Total £m
At 31 December 2018
Loans and advances to customers:
Retail - mortgages
RMS 1-6	0.00-4.50%		1		–		–		–		1
RMS 7-9	4.51-14.00%		–		–		–		–		–
RMS 10	14.01-20.00%		–		–		–		–		–
RMS 11-13	20.01-99.99%		–		–		–		–		–
RMS 14	100%		–		–		–		–		–
			1		–		–		–		1
Retail - unsecured
RMS 1-6	0.00-4.50%		85		26		–		–		111
RMS 7-9	4.51-14.00%		5		10		–		–		15
RMS 10	14.01-20.00%		–		3		–		–		3
RMS 11-13	20.01-99.99%		–		10		–		–		10
RMS 14	100%		–		–		–		–		–
			90		49		–		–		139
Retail - UK Motor Finance
RMS 1-6	0.00-4.50%		2		–		–		–		2
RMS 7-9	4.51-14.00%		–		–		–		–		–
RMS 10	14.01-20.00%		–		–		–		–		–
RMS 11-13	20.01-99.99%		–		–		–		–		–
RMS 14	100%		–		–		–		–		–
			2		–		–		–		2
Retail - Other
RMS 1-6	0.00-4.50%		11		2		–		–		13
RMS 7-9	4.51-14.00%		–		–		–		–		–
RMS 10	14.01-20.00%		–		–		–		–		–
RMS 11-13	20.01-99.99%		–		–		–		–		–
RMS 14	100%		–		–		–		–		–
			11		2		–		–		13
Total Retail			104		51		–		–		155

								Purchased or
								originated
		Stage 1		Stage 2		Stage 3		credit-impaired		Total
Expected credit losses in respect of undrawn exposures (continued)	PD range	£m		£m		£m		£m		£m
At 31 December 2018
Commercial
CMS 1-10	0.00-0.50%		9		–		–		–		9
CMS 11-14	0.51-3.00%		7		7		–		–		14
CMS 15-18	3.01-20.00%		1		5		–		–		6
CMS 19	20.01-99.99%		1		1		–		–		2
CMS 20-23	100%		–		–		6		–		6
			18		13		6		–		37
Other
RMS 1-6	0.00-4.50%		1		–		–		–		1
RMS 7-9	4.51-14.00%		–		–		–		–		–
RMS 10	14.01-20.00%		–		–		–		–		–
RMS 11-13	20.01-99.99%		–		–		–		–		–
RMS 14	100%		–		–		–		–		–
			1		–		–		–		1
CMS 1-10	0.00-0.50%		–		–		–		–		–
CMS 11-14	0.51-3.00%		–		–		–		–		–
CMS 15-18	3.01-20.00%		–		–		–		–		–
CMS 19	20.01-99.99%		–		–		–		–		–
CMS 20-23	100%		–		–		–		–		–
			–		–		–		–		–
Total loans and advances to customers			123		64		6		–		193
In respect of:
Retail			104		51		–		–		155
Commercial			18		13		6		–		37
Other			1		–		–		–		1
Total loans and advances to customers			123		64		6		–		193

Disclosure of fair value of financial instruments [text block]

An analysis of the Group’s financial assets at fair value through profit or loss is included in note 14. The credit quality of the Group’s debt securities, treasury and other bills held at fair value through profit or loss is set out below:

	2019						2018
	Investment						Investment
	grade1		Other2		Total		grade1		Other2		Total
	£m		£m		£m		£m		£m		£m
Debt securities, treasury and other bills held at fair value through profit or loss
Trading assets:
Government securities		6,791		–		6,791		7,192		–		7,192
Asset-backed securities:
Mortgage-backed securities		1		5		6		10		–		10
Other asset-backed securities		14		3		17		63		–		63
		15		8		23		73		–		73
Corporate and other debt securities		232		1		233		228		19		247
Total held as trading assets		7,038		9		7,047		7,493		19		7,512
Other assets held at fair value through profit or loss:
Government securities		12,044		19		12,063		10,903		–		10,903
Other public sector securities		2,118		8		2,126		2,059		5		2,064
Bank and building society certificates of deposit		984		–		984		1,105		–		1,105
Asset-backed securities:
Mortgage-backed securities		452		10		462		208		7		215
Other asset-backed securities		241		–		241		283		3		286
		693		10		703		491		10		501
Corporate and other debt securities		15,932		2,051		17,983		16,141		1,922		18,063
Total debt securities held at fair value through profit or loss		31,771		2,088		33,859		30,699		1,937		32,636
Treasury bills and other bills		19		–		19		20		–		20
Total other assets held at fair value through profit or loss		31,790		2,088		33,878		30,719		1,937		32,656
Total held at fair value through profit or loss		38,828		2,097		40,925		38,212		1,956		40,168

Analysis of Loan-to-value ratio of Residential Mortgage Lending

An analysis by loan-to-value ratio of the Group’s residential mortgage lending is provided below. The value of collateral used in determining the loan-to-value ratios has been estimated based upon the last actual valuation, adjusted to take into account subsequent movements in house prices, after making allowances for indexation error and dilapidations.

			As at 31 December 2019										As at 31 December 2018
	Stage 1 £m		Stage 2 £m		Stage 3 £m		Purchased or originated credit- impaired £m		Total gross £m		Stage 1 £m		Stage 2 £m		Stage 3 £m		Purchased or originated credit- impaired £m		Total gross £m
Drawn balances
Less than 70 per cent		179,566		13,147		1,174		10,728		204,615		185,556		10,728		1,035		11,846		209,165
70 per cent to 80 per cent		44,384		2,343		181		1,751		48,659		41,827		1,802		190		1,884		45,703
80 per cent to 90 per cent		27,056		1,057		86		677		28,876		24,854		832		95		1,032		26,813
90 per cent to 100 per cent		5,663		199		34		207		6,103		4,957		164		39		302		5,462
Greater than 100 per cent		374		189		31		351		945		603		128		34		327		1,092
Total		257,043		16,935		1,506		13,714		289,198		257,797		13,654		1,393		15,391		288,235

			As at 31 December 2019										As at 31 December 2018
	Stage 1 £m		Stage 2 £m		Stage 3 £m		Purchased or originated credit- impaired £m		Total £m		Stage 1 £m		Stage 2 £m		Stage 3 £m		Purchased or originated credit- impaired £m		Total £m
Expected credit losses on drawn balances
Less than 70 per cent		6		104		41		44		195		3		94		34		19		150
70 per cent to 80 per cent		7		75		29		38		149		11		51		24		12		98
80 per cent to 90 per cent		7		58		25		23		113		14		47		27		16		104
90 per cent to 100 per cent		2		17		12		10		41		4		16		14		9		43
Greater than 100 per cent		1		27		15		27		70		5		18		19		22		64
Total		23		281		122		142		568		37		226		118		78		459

Participating investment contracts [Member]

FINANCIAL RISK MANAGEMENT (Tables) [Line Items]

Disclosure of Liabilities Arising from Insurance and Participating Investment Contracts [text block]

Liabilities arising from insurance and participating investment contracts are analysed on a behavioural basis, as permitted by IFRS 4, as follows:

	Up to 1 month £m		1-3 months £m		3-12 months £m		1-5 years £m		Over 5 years £m		Total £m
At 31 December 2019		1,340		1,240		5,378		25,349		78,142		111,449
At 31 December 2018		1,667		1,624		5,925		25,414		64,244		98,874

Available-for-Sale Financial Assets (Excluding Equity Shares) [Member]

FINANCIAL RISK MANAGEMENT (Tables) [Line Items]

Disclosure of Available-for-Sale Financial Assets (Excluding Equity Shares) [text block]

An analysis of the Group’s financial assets at fair value through other comprehensive income is included in note 19. The credit quality of the Group’s financial assets at fair value through other comprehensive income (excluding equity shares) is set out below:

	2019						2018
	Investment						Investment
	grade1		Other2		Total		grade1		Other2		Total
	£m		£m		£m		£m		£m		£m
Debt securities:
Government securities		13,084		14		13,098		18,971		–		18,971
Bank and building society certificates of deposit		–		–		–		118		–		118
Asset-backed securities:
Mortgage-backed securities		121		–		121		120		–		120
Other asset-backed securities		–		60		60		–		131		131
		121		60		181		120		131		251
Corporate and other debt securities		11,036		15		11,051		4,934		217		5,151
Total debt securities		24,241		89		24,330		24,143		348		24,491
Treasury and other bills		535		–		535		303		–		303
Total financial assets at fair value through other comprehensive income		24,776		89		24,865		24,446		348		24,794

Derivative assets [Member]

FINANCIAL RISK MANAGEMENT (Tables) [Line Items]

Disclosure of Derivative Assets [text block]

	2019						2018
	Investment						Investment
	grade1		Other2		Total		grade1		Other2		Total
	£m		£m		£m		£m		£m		£m
Trading and other		22,991		2,142		25,133		19,797		2,235		22,032
Hedging		1,178		58		1,236		1,534		29		1,563
Total derivative financial instruments		24,169		2,200		26,369		21,331		2,264		23,595

Concentrations of risk [member]

FINANCIAL RISK MANAGEMENT (Tables) [Line Items]

Disclosure of loans and advances to customers [text block]

	2019 £m			2018 £m
Agriculture, forestry and fishing		7,558			7,314
Energy and water supply		1,432			1,517
Manufacturing		6,093			8,260
Construction		4,285			4,684
Transport, distribution and hotels		13,016			14,113
Postal and telecommunications		1,923			2,711
Property companies		27,596			28,451
Financial, business and other services		89,763			77,505
Personal:
Mortgages1		299,141			297,498
Other		29,272			28,699
Lease financing		1,671			1,822
Hire purchase		16,497			15,434
Total loans and advances to customers before allowance for impairment losses		498,247			488,008
Allowance for impairment losses (note 18)		(3,259	)		(3,150	)
Total loans and advances to customers		494,988			484,858

Securities lending [member]

FINANCIAL RISK MANAGEMENT (Tables) [Line Items]

Disclosure of transfers of financial assets [text block]

The following on balance sheet financial assets have been lent to counterparties under securities lending transactions:

	2019 £m		2018 £m
Financial assets at fair value through profit or loss		5,857		5,837
Financial assets at fair value through other comprehensive income		2,020		1,917
		7,877		7,754

Loans to corporate entities [member]

FINANCIAL RISK MANAGEMENT (Tables) [Line Items]

Disclosure of Debt Securities Classified as Loans and Receivables [text block]

An analysis by credit rating of the Group’s debt securities held at amortised cost is provided below:

	2019							2018
	Investment							Investment
	grade1		Other2		Total			grade1		Other2		Total
	£m		£m		£m			£m		£m		£m
Asset-backed securities:
Mortgage-backed securities		3,007		–		3,007			3,263		9		3,272
Other asset-backed securities		876		–		876			763		17		780
		3,883		–		3,883			4,026		26		4,052
Corporate and other debt securities		1,650		14		1,664			1,176		16		1,192
Gross exposure		5,533		14		5,547			5,202		42		5,244
Allowance for impairment losses						(3	)						(6	)
Total debt securities held at amortised cost						5,544							5,238

Assets and liabilities [member]

FINANCIAL RISK MANAGEMENT (Tables) [Line Items]

Maturity analysis for total assets and total liabilities

The table below analyses assets and liabilities of the Group into relevant maturity groupings based on the remaining contractual period at the balance sheet date; balances with no fixed maturity are included in the over 5 years category. Certain balances, included in the table below on the basis of their residual maturity, are repayable on demand upon payment of a penalty.

	Up to 1 month £m		1-3 months £m		3-6 months £m		6-9 months £m		9-12 months £m		1-2 years £m		2-5 years £m		Over 5 years £m		Total £m
At 31 December 2019
Assets
Cash and balances at central banks		55,128		2		–		–		–		–		–		–		55,130
Financial assets at fair value through profit or loss		7,195		3,689		3,016		1,710		451		2,801		5,385		135,942		160,189
Derivative financial instruments		583		739		627		404		336		1,294		2,763		19,623		26,369
Loans and advances to banks		4,953		1,017		265		124		91		26		–		3,299		9,775
Loans and advances to customers		35,973		26,036		23,283		12,626		11,425		29,917		74,416		281,312		494,988
Debt securities held at amortised cost		131		19		–		–		–		74		3,085		2,235		5,544
Financial assets at fair value through other comprehensive income		111		179		729		102		234		2,929		12,809		7,999		25,092
Other assets		2,224		1,155		533		160		520		568		1,218		50,428		56,806
Total assets		106,298		32,836		28,453		15,126		13,057		37,609		99,676		500,838		833,893
Liabilities
Deposits from banks		4,530		2,715		267		85		55		15,686		433		4,408		28,179
Customer deposits		382,885		12,945		6,716		4,377		3,207		6,742		1,752		2,696		421,320
Derivative financial instruments and financial liabilities at fair value through profit or loss		5,182		6,101		2,579		784		528		1,644		5,238		25,209		47,265
Debt securities in issue		4,070		9,159		7,135		7,418		1,963		13,618		30,897		23,429		97,689
Liabilities arising from insurance and investment contracts		1,213		1,658		2,370		2,348		2,882		9,028		24,870		104,539		148,908
Other liabilities		4,541		1,914		772		893		1,682		898		906		13,990		25,596
Subordinated liabilities		–		1,339		96		1,137		108		575		4,105		9,770		17,130
Total liabilities		402,421		35,831		19,935		17,042		10,425		48,191		68,201		184,041		786,087
At 31 December 2018
Assets
Cash and balances at central banks		54,662		1		–		–		–		–		–		–		54,663
Financial assets at fair value through profit or loss		10,686		8,826		8,492		5,133		2,587		2,090		5,467		115,248		158,529
Derivative financial instruments		579		688		418		336		441		1,064		3,075		16,994		23,595
Loans and advances to banks		2,594		520		584		172		203		160		–		2,050		6,283
Loans and advances to customers		36,326		19,383		18,415		14,378		11,318		30,459		72,028		282,551		484,858
Debt securities held as at amortised cost		7		–		–		521		–		–		2,262		2,448		5,238
Financial assets at fair value through other comprehensive income		166		453		249		800		1,685		2,536		11,496		7,430		24,815
Other assets		2,667		1,552		196		238		219		387		1,118		33,240		39,617
Total assets		107,687		31,423		28,354		21,578		16,453		36,696		95,446		459,961		797,598
Liabilities
Deposits from banks		2,793		1,688		748		54		45		4,758		16,052		4,182		30,320
Customer deposits		380,753		10,623		5,628		4,543		4,431		6,421		3,244		2,423		418,066
Derivative financial instruments and financial liabilities at fair value through profit or loss		5,160		11,877		5,048		1,663		522		1,104		4,108		22,438		51,920
Debt securities in issue		4,172		5,692		9,007		4,668		1,694		13,062		28,676		24,197		91,168
Liabilities arising from insurance and investment contracts		1,844		1,850		2,316		2,302		2,104		7,995		20,986		73,330		112,727
Other liabilities		4,403		3,201		733		1,182		1,383		756		232		13,652		25,542
Subordinated liabilities		85		145		95		251		–		2,600		2,559		11,921		17,656
Total liabilities		399,210		35,076		23,575		14,663		10,179		36,696		75,857		152,143		747,399

Financial liabilities, category [member]

FINANCIAL RISK MANAGEMENT (Tables) [Line Items]

Disclosure of maturity analysis for non-derivative financial liabilities [text block]

The table below analyses financial instrument liabilities of the Group, excluding those arising from insurance and participating investment contracts, on an undiscounted future cash flow basis according to contractual maturity, into relevant maturity groupings based on the remaining period at the balance sheet date; balances with no fixed maturity are included in the over 5 years category.

	Up to 1 month £m			1-3 months £m			3-12 months £m			1-5 years £m			Over 5 years £m			Total £m
At 31 December 2019
Deposits from banks		5,009			2,564			762			20,066			317			28,718
Customer deposits		385,864			14,433			14,327			10,661			1,393			426,678
Financial liabilities at fair value through profit or loss		4,370			5,543			2,255			2,690			14,653			29,511
Debt securities in issue		5,335			9,858			19,205			54,638			36,321			125,357
Liabilities arising from non-participating investment contracts		37,459			–			–			–			–			37,459
Other liabilities (Lease liabilities)		2			61			190			803			946			2,002
Subordinated liabilities		942			1,462			1,918			7,837			14,857			27,016
Total non-derivative financial liabilities		438,981			33,921			38,657			96,695			68,487			676,741
Derivative financial liabilities:
Gross settled derivatives – outflows		43,118			44,379			34,012			36,012			18,238			175,759
Gross settled derivatives – inflows		(40,829	)		(42,954	)		(32,966	)		(34,758	)		(17,753	)		(169,260	)
Gross settled derivatives – net flows		2,289			1,425			1,046			1,254			485			6,499
Net settled derivatives liabilities		23,648			48			122			700			2,201			26,719
Total derivative financial liabilities		25,937			1,473			1,168			1,954			2,686			33,218
At 31 December 2018
Deposits from banks		2,820			2,710			1,022			20,920			3,502			30,974
Customer deposits		380,985			10,584			14,169			11,634			1,554			418,926
Financial liabilities at fair value through profit or loss		9,693			10,984			7,553			930			10,771			39,931
Debt securities in issue		5,942			7,314			22,564			48,233			24,201			108,254
Liabilities arising from non-participating investment contracts		13,853			–			–			–			–			13,853
Subordinated liabilities		247			1,017			1,144			8,231			19,328			29,967
Total non-derivative financial liabilities		413,540			32,609			46,452			89,948			59,356			641,905
Derivative financial liabilities:
Gross settled derivatives – outflows		39,165			27,976			23,978			43,239			33,763			168,121
Gross settled derivatives – inflows		(38,301	)		(27,283	)		(23,134	)		(40,690	)		(28,933	)		(158,341	)
Gross settled derivatives – net flows		864			693			844			2,549			4,830			9,780
Net settled derivatives liabilities		13,511			103			209			782			2,193			16,798
Total derivative financial liabilities		14,375			796			1,053			3,331			7,023			26,578

Off balance sheet [Member]

FINANCIAL RISK MANAGEMENT (Tables) [Line Items]

Maturity Analysis For Commitments And Contingent Liabilities

The following tables set out the amounts and residual maturities of the Group’s off balance sheet contingent liabilities, commitments and guarantees.

	Up to 1 month £m		1-3 months £m		3-6 months £m		6-9 months £m		9-12 months £m		1-3 years £m		3-5 years £m		Over 5 years £m		Total £m
At 31 December 2019
Acceptances and endorsements		25		24		4		–		21		–		–		–		74
Other contingent liabilities		381		409		387		177		207		475		101		683		2,820
Total contingent liabilities		406		433		391		177		228		475		101		683		2,894
Lending commitments and guarantees		68,638		2,682		15,297		4,637		7,367		17,365		14,114		3,264		133,364
Other commitments		–		1		16		5		–		72		43		52		189
Total commitments and guarantees		68,638		2,683		15,313		4,642		7,367		17,437		14,157		3,316		133,553
Total contingents, commitments and guarantees		69,044		3,116		15,704		4,819		7,595		17,912		14,258		3,999		136,447
At 31 December 2018
Acceptances and endorsements		64		83		34		13		–		–		–		–		194
Other contingent liabilities		450		484		203		223		150		665		133		749		3,057
Total contingent liabilities		514		567		237		236		150		665		133		749		3,251
Lending commitments and guarantees		67,055		2,947		4,474		6,055		16,123		17,737		15,374		4,602		134,367
Other commitments		428		–		–		2		92		20		13		176		731
Total commitments and guarantees		67,483		2,947		4,474		6,057		16,215		17,757		15,387		4,778		135,098
Total contingents, commitments and guarantees		67,997		3,514		4,711		6,293		16,365		18,422		15,520		5,527		138,349