SUBORDINATED LIABILITIES

12 Months Ended

Dec. 31, 2019

Disclosure of subordinated liabilities [text block] [Abstract]

Disclosure of subordinated liabilities [text block]

NOTE 39: SUBORDINATED LIABILITIES

The movement in subordinated liabilities during the year was as follows:

	Preference shares £m			Preferred securities £m			Undated subordinated liabilities £m			Dated subordinated liabilities £m			Total £m
At 1 January 2018		813			3,690			565			12,854			17,922
Issued during the year		–			–			–			1,729			1,729
Repurchases and redemptions during the year1		–			(614	)		–			(1,642	)		(2,256	)
Foreign exchange movements		18			131			20			377			546
Other movements (all non-cash)		(28	)		(2	)		3			(258	)		(285	)
At 31 December 2018		803			3,205			588			13,060			17,656
Repurchases and redemptions during the year1		(3	)		(49	)		(53	)		(713	)		(818	)
Foreign exchange movements		(12	)		(83	)		(36	)		(402	)		(533	)
Other movements (all non-cash)		114			152			18			541			825
At 31 December 2019		902			3,225			517			12,486			17,130

1 The repurchases and redemptions resulted in cash outflows of £818 million (2018: £2,256 million).

Issued during 2018

Dated subordinated liabilities	£m
1.75% Subordinated Fixed Rate Notes 2028 callable 2023		664
4.344% Subordinated Fixed Rate Notes callable 2048		1,065
		1,729

Repurchases and redemptions during 2019

Preference shares	£m
6.3673% Non-cumulative Fixed to Floating Rate Preference Shares callable 2019	3

Preferred securities	£m
13% Step-up Perpetual Capital Securities callable 2019	49

Undated subordinated liabilities	£m
6.5% Undated Subordinated Step-up Notes callable 2019	1
7.375% Undated Subordinated Guaranteed Bonds	52
	53

Dated subordinated liabilities	£m
10.375% Subordinated Fixed to Fixed Rate Notes 2024 callable 2019	135
9.375% Subordinated Bonds 2021	328
6.375% Subordinated Instruments 2019	250
	713

Repurchases and redemptions during 2018

Preferred securities	£m
6.461% Guaranteed Non-voting Non-cumulative Perpetual Preferred Securities	600
Undated Perpetual Preferred Securities	14
	614

Dated subordinated liabilities	£m
10.5% Subordinated Bonds callable 2018	150
6.75% Subordinated Fixed Rate Notes callable 2018	1,492
	1,642

These securities will, in the event of the winding-up of the issuer, be subordinated to the claims of depositors and all other creditors of the issuer, other than creditors whose claims rank equally with, or are junior to, the claims of the holders of the subordinated liabilities. The subordination of specific subordinated liabilities is determined in respect of the issuer and any guarantors of that liability. The claims of holders of preference shares and preferred securities are generally junior to those of the holders of undated subordinated liabilities, which in turn are junior to the claims of holders of the dated subordinated liabilities. The Group has not had any defaults of principal, interest or other breaches with respect to its subordinated liabilities during 2019 (2018: none).