PARENT COMPANY DISCLOSURES

12 Months Ended

Dec. 31, 2019

Disclosure Of Parent Company Financial Statements Explanatory [Abstract]

Disclosure of parent company financial statements [text block]

NOTE 57: PARENT COMPANY DISCLOSURES

A COMPANY INCOME STATEMENT 

	2019 £m			20181 £m			20171 £m
Net interest (expense) income		(108	)		(173	)		(121	)
Dividends received from subsidiary undertakings		5,150			4,000			2,650
Other income		682			524			142
Total income		5,724			4,351			2,671
Operating expenses		(289	)		(246	)		(255	)
Trading surplus		5,435			4,105			2,416
Impairment		4			(3	)		–
Profit on ordinary activities before tax		5,439			4,102			2,416
Tax expense		(24	)		2			62
Profit for the year		5,415			4,104			2,478
Profit attributable to ordinary shareholders		4,949			3,671			2,063
Profit attributable to other equity holders		466			433			415
Profit for the year		5,415			4,104			2,478

1 Restated, see note 1.

B COMPANY BALANCE SHEET

	2019 £m		2018 £m
Assets
Non-current assets:
Investment in subsidiaries		48,597		46,725
Loans to subsidiaries		14,660		24,211
Deferred tax assets		–		9
		63,257		70,945
Current assets:
Derivative financial instruments		760		256
Financial assets at fair value through profit or loss		12,516		588
Other assets		983		955
Amounts due from subsidiaries		27		27
Cash and cash equivalents		29		57
Current tax recoverable		1		76
		14,316		1,959
Total assets		77,573		72,904
Equity and liabilities
Capital and reserves:
Share capital		7,005		7,116
Share premium account		17,751		17,719
Merger reserve		7,420		7,423
Capital redemption reserve		4,462		4,273
Retained profits		3,950		2,103
Shareholders’ equity		40,588		38,634
Other equity instruments		5,906		6,491
Total equity		46,494		45,125
Non-current liabilities:
Debt securities in issue		20,018		20,394
Subordinated liabilities		5,961		6,043
Deferred tax liabilities		2		–
		25,981		26,437
Current liabilities:
Derivative financial instruments		438		209
Financial liabilities at fair value through profit or loss		3,464		–
Other liabilities		1,196		1,133
		5,098		1,342
Total liabilities		31,079		27,779
Total equity and liabilities		77,573		72,904

C COMPANY STATEMENT OF CHANGES IN EQUITY  

	Share capital and premium £m			Merger reserve £m			Capital redemption reserve £m		Retained profits1 £m			Total shareholders’ equity £m			Other equity instruments £m			Total equity £m
Balance at 1 January 2017		24,768			7,423			4,115		1,584			37,890			5,355			43,245
Total comprehensive income1,2		–			–			–		2,478			2,478			–			2,478
Dividends paid		–			–			–		(2,284	)		(2,284	)		–			(2,284	)
Distributions on other equity instruments1		–			–			–		(415	)		(415	)		–			(415	)
Issue of ordinary shares		63			–			–		–			63			–			63
Movement in treasury shares		–			–			–		(277	)		(277	)		–			(277	)
Value of employee services:
Share option schemes		–			–			–		82			82			–			82
Other employee award schemes		–			–			–		332			332			–			332
Balance at 31 December 2017		24,831			7,423			4,115		1,500			37,869			5,355			43,224
Adjustment on adoption of IFRS 9		–			–			–		(2	)		(2	)		–			(2	)
Balance at 1 January 2018		24,831			7,423			4,115		1,498			37,867			5,355			43,222
Total comprehensive income1,2		–			–			–		4,104			4,104			–			4,104
Dividends paid		–			–			–		(2,240	)		(2,240	)		–			(2,240	)
Distributions on other equity instruments1		–			–			–		(433	)		(433	)		–			(433	)
Issue of ordinary shares		162			–			–		–			162			–			162
Share buy-back programme		(158	)		–			158		(1,005	)		(1,005	)		–			(1,005	)
Issue of AT1 securities		–			–			–		(7	)		(7	)		1,136			1,129
Movement in treasury shares		–			–			–		(74	)		(74	)		–			(74	)
Value of employee services:
Share option schemes		–			–			–		53			53			–			53
Other employee award schemes		–			–			–		207			207			–			207
Balance at 31 December 2018		24,835			7,423			4,273		2,103			38,634			6,491			45,125
Comprehensive income
Total comprehensive income2		–			–			–		5,415			5,415			–			5,415
Dividends paid		–			–			–		(2,312	)		(2,312	)		–			(2,312	)
Distributions on other equity instruments		–			–			–		(466	)		(466	)		–			(466	)
Redemption of preference shares		3			(3	)		–		–			–			–			–
Issue of ordinary shares		107			–			–		–			107			–			107
Share buy back programme		(189	)		–			189		(1,095	)		(1,095	)		–			(1,095	)
Issue of other equity instruments		–			–			–		(5	)		(5	)		896			891
Redemption of other equity instruments		–			–			–		–			–			(1,481	)		(1,481	)
Movement in treasury shares		–			–			–		74			74			–			74
Value of employee services:
Share option schemes		–			–			–		71			71			–			71
Other employee award schemes		–			–			–		165			165			–			165
Balance at 31 December 2019		24,756			7,420			4,462		3,950			40,588			5,906			46,494

1	Restated, see note 1.
2	Total comprehensive income comprises only the profit for the year.

D COMPANY CASH FLOW STATEMENT

	2019 £m			2018 £m			2017 £m
Profit before tax		5,439			4,102			2,416
Fair value and exchange adjustments and other non-cash items		(166	)		(715	)		495
Change in other assets		(11,975	)		(572	)		18
Change in other liabilities and other items		3,151			7,538			8,431
Dividends received		(5,150	)		(4,000	)		(2,650	)
Distributions on other equity instruments receivedº		(366	)		(324	)		(292	)
Tax (paid) received		70			660			(197	)
Net cash provided by (used in) operating activities		(8,997	)		6,689			8,221
Cash flows from investing activities
Return of capital contribution		5			9			77
Dividends received		5,150			4,000			2,650
Distributions on other equity instruments received		366			324			292
Acquisition of and capital injections to subsidiaries		(1,648	)		(12,753	)		(320	)
Return of capital		–			11,114			–
Amounts advanced to subsidiaries		(1,812	)		(21,577	)		(8,476	)
Repayment of loans to subsidiaries		11,257			12,602			475
Interest received on loans to subsidiaries		395			370			244
Net cash (used in) provided by investing activities		13,713			(5,911	)		(5,058	)
Cash flows from financing activities
Dividends paid to ordinary shareholders		(2,312	)		(2,240	)		(2,284	)
Distributions on other equity instruments		(466	)		(433	)		(415	)
Issue of subordinated liabilities		–			1,729			–
Interest paid on subordinated liabilities		(314	)		(275	)		(248	)
Share buy-back		(1,095	)		(1,005	)		–
Issue of other equity instruments		891			1,129			–
Redemptions of other equity instruments		(1,481	)		–			–
Repayment of subordinated liabilities		(3	)		–			–
Proceeds from issue of ordinary shares		36			102			14
Net cash provided by financing activities		(4,744	)		(993	)		(2,933	)
Change in cash and cash equivalents		(28	)		(215	)		230
Cash and cash equivalents at beginning of year		57			272			42
Cash and cash equivalents at end of year		29			57			272

E INTERESTS IN SUBSIDIARIES

The principal subsidiaries, all of which have prepared accounts to 31 December and whose results are included in the consolidated accounts of Lloyds Banking Group plc, are:

	Country of registration/ Incorporation	Percentage of equity share capital and voting rights held		Nature of business
Lloyds Bank plc	England	100%		Banking and financial services
Scottish Widows Limited	Scotland	100%	1	Life assurance
HBOS plc	Scotland	100%	1	Holding company
Bank of Scotland plc	Scotland	100%	1	Banking and financial services
Lloyds Bank Corporate Markets plc	England	100%		Banking and financial services

1 Indirect interest.

The principal area of operation for each of the above subsidiaries is the United Kingdom.