FINANCE LEASE RECEIVABLES

12 Months Ended

Dec. 31, 2019

Disclosure of maturity analysis of finance lease payments receivable [text block] [Abstract]

Disclosure of maturity analysis of finance lease payments receivable [text block]

NOTE 19: FINANCE LEASE RECEIVABLES

The Group’s finance lease receivables are classified as loans and advances to customers and accounted for at amortised cost. The balance is analysed as follows:

	2019			2018
	£m			£m
Gross investment in finance leases, receivable:
Not later than 1 year		490			458
Later than 1 year and not later than 2 years		347			516
Later than 2 years and not later than 3 years		181			456
Later than 3 years and not later than 4 years		145			201
Later than 4 years and not later than 5 years		208			178
Later than 5 years		883			1,104
		2,254			2,913
Unearned future finance income on finance leases		(563	)		(1,068	)
Rentals received in advance		(20	)		(23	)
Net investment in finance leases		1,671			1,822

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

	2019	2018
	£m	£m
Not later than 1 year	406	303
Later than 1 year and not later than 2 years	326	407
Later than 2 years and not later than 3 years	130	353
Later than 3 years and not later than 4 years	103	154
Later than 4 years and not later than 5 years	171	130
Later than 5 years	535	475
Net investment in finance leases	1,671	1,822

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. There was an allowance for uncollectable finance lease receivables included in the allowance for impairment losses of £12 million (2018: £1 million).