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FINANCIAL ASSETS AT AMORTISED COST
12 Months Ended
Dec. 31, 2019
Disclosure Of Financial Assets At Amortised Cost Explanatory [Abstract]  
Disclosure of Financial Assets at Amortised Cost Explanatory [text block]

NOTE 18: FINANCIAL ASSETS AT AMORTISED COST


YEAR ENDED 31 DECEMBER 2019


Loans and advances to banks  Stage 1
£m
   Stage 2
£m
   Stage 3
£m
   Purchased or
originated
credit-impaired
£m
   Total
£m
 
At 1 January 2019   6,282    3            6,285 
Exchange and other adjustments1   (218)               (218)
Additions (repayments)   3,713    (3)           3,710 
At 31 December 2019   9,777                9,777 
Allowance for impairment losses   (2)               (2)
Total loans and advances to banks   9,775                9,775 
                          
Loans and advances to customers                         
At 1 January 2019   441,531    25,345    5,741    15,391    488,008 
Exchange and other adjustments1   (498)   (34)   47    283    (202)
Additions (repayments)   13,554    (2,558)   (858)   (1,934)   8,204 
Transfers to Stage 1   6,318    (6,286)   (32)         
Transfers to Stage 2   (13,084)   13,516    (432)         
Transfers to Stage 3   (1,540)   (1,440)   2,980          
    (8,306)   5,790    2,516          
Recoveries           397    28    425 
Acquisition of portfolios2   3,694                3,694 
Financial assets that have been written off during the year             (1,828)   (54)   (1,882)
At 31 December 2019   449,975    28,543    6,015    13,714    498,247 
Allowance for impairment losses   (675)   (995)   (1,447)   (142)   (3,259)
Total loans and advances to customers   449,300    27,548    4,568    13,572    494,988 
                          
Debt securities                         
At 1 January 2019   5,238        6        5,244 
Exchange and other adjustments1   (94)       (2)       (96)
Additions (repayments)   400                400 
Financial assets that have been written off during the year             (1)       (1)
At 31 December 2019   5,544        3        5,547 
Allowance for impairment losses           (3)       (3)
Total debt securities   5,544                5,544 
Total financial assets at amortised cost   464,619    27,548    4,568    13,572    510,307 

                          
Movements in Retail mortgage balances were as follows:                         

Retail mortgages  Stage 1
£m
   Stage 2
£m
   Stage 3
£m
   Purchased or
originated
credit-impaired
£m
    Total
£m
 
At 1 January 2019   257,797    13,654    1,393    15,391    288,235 
Exchange and other adjustments1   (1)       2    283    284 
Additions (repayments)   799    (1,432)   (416)   (1,934)   (2,983)
Transfers to Stage 1   3,060    (3,057)   (3)         
Transfers to Stage 2   (7,879)   8,242    (363)         
Transfers to Stage 3   (427)   (472)   899          
    (5,246)   4,713    533          
Recoveries           29    28    57 
Acquisition of portfolios2   3,694                3,694 
Financial assets that have been written off during the year             (35)   (54)   (89)
At 31 December 2019   257,043    16,935    1,506    13,714    289,198 
Allowance for impairment losses   (23)   (281)   (122)   (142)   (568)
Total loans and advances to customers   257,020    16,654    1,384    13,572    288,630 

1 Exchange and other adjustments includes certain adjustments, prescribed by IFRS 9, in respect of purchased or originated credit-impaired financial assets.
   
2 Acquisition of portfolios in 2019 relates to the purchase, completed in September 2019, of Tesco Bank’s UK residential mortgage portfolio.

Year ended 31 December 2018


Loans and advances to banks     Stage 1
£m
        Stage 2
£m
        Stage 3
£m
        Purchased or
originated
credit-impaired
£m
        Total
£m
   
At 1 January 2018   4,245    2            4,247 
Exchange and other adjustments   (29)   1            (28)
Additions (repayments)   2,066                2,066 
At 31 December 2018   6,282    3            6,285 
Allowance for impairment losses   (2)               (2)
Total loans and advances to banks   6,280    3            6,283 
                          
Loans and advances to customers                         
At 1 January 2018   403,881    37,245    5,140    17,973    464,239 
Exchange and other adjustments   958    32            990 
Additions (repayments)   34,942    (2,187)   (2,074)   (2,609)   28,072 
Transfers to Stage 1   19,524    (19,501)   (23)         
Transfers to Stage 2   (15,743)   15,996    (253)         
Transfers to Stage 3   (2,031)   (2,220)   4,251          
    1,750    (5,725)   3,975          
Recoveries           553    27    580 
Disposal of businesses       (4,020)   (277)       (4,297)
Financial assets that have been written off during the year             (1,576)       (1,576)
At 31 December 2018   441,531    25,345    5,741    15,391    488,008 
Allowance for impairment losses   (525)   (994)   (1,553)   (78)   (3,150)
Total loans and advances to customers   441,006    24,351    4,188    15,313    484,858 
                          
Debt securities                         
At 1 January 2018   3,291        49        3,340 
Exchange and other adjustments   77        (14)       63 
Additions (repayments)   1,870                1,870 
Financial assets that have been written off during the year             (29)       (29)
At 31 December 2018   5,238        6        5,244 
Allowance for impairment losses           (6)       (6)
Total debt securities   5,238                5,238 
                          
Total financial assets at amortised cost   452,524    24,354    4,188    15,313    496,379 

Movements on Retail mortgage balances were as follows:


Retail mortgages    Stage 1
£m
      Stage 2
£m
      Stage 3
£m
      Purchased or
originated
credit-impaired
£m
      Total
£m
  
At 1 January 2018   251,707    20,109    1,232    17,973    291,021 
Additions (repayments)   989    (938)   (239)   (2,609)   (2,797)
Transfers to Stage 1   10,814    (10,805)   (9)         
Transfers to Stage 2   (5,396)   5,691    (295)         
Transfers to Stage 3   (317)   (403)   720          
    5,101    (5,517)   416          
Recoveries           3    27    30 
Financial assets that have been written off during the year             (19)       (19)
At 31 December 2018   257,797    13,654    1,393    15,391    288,235 
Allowance for impairment losses   (37)   (226)   (118)   (78)   (459)
Total loans and advances to customers   257,760    13,428    1,275    15,313    287,776 

The movement tables are compiled by comparing the position at 31 December to that at the beginning of the year. Transfers between stages are deemed to have taken place at the start of the reporting period, with all other movements shown in the stage in which the asset is held at 31 December, with the exception of those held within Purchased or originated credit-impaired, which are not transferrable.


Additions (repayments) comprise new loans originated and repayments of outstanding balances throughout the reporting period. Loans which are written off in the period are first transferred to Stage 3 before acquiring a full allowance and subsequent write-off.