CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES (Tables)

12 Months Ended

Dec. 31, 2019

CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES (Tables) [Line Items]

Explanation of credit risk management practices and how they relate to recognition and measurement of expected credit losses [text block]

The table below shows the Group’s ECL for the upside and downside scenarios using a 100 per cent weighting, with stage allocation based on each specific scenario.

	At 31 December 2019				At 31 December 2018
	Upside		Downside		Upside		Downside
	£m		£m		£m		£m
ECL allowance		3,001		3,677		2,775		3,573

Economic Assumptions [Member]

CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES (Tables) [Line Items]

Explanation of credit risk management practices and how they relate to recognition and measurement of expected credit losses [text block]

The key UK economic assumptions made by the Group averaged over a five-year period are shown below:

	At 31 December 2019											At 31 December 2018
									Severe										Severe
	Base case			Upside		Downside			downside			Base case		Upside		Downside			downside
Economic assumptions	%			%		%			%			%		%		%			%
Interest rate		1.25			2.04		0.49			0.11			1.25		2.34		1.30			0.71
Unemployment rate		4.3			3.9		5.8			7.2			4.5		3.9		5.3			6.9
House price growth		1.3			5.0		(2.6	)		(7.1	)		2.5		6.1		(4.8	)		(7.5	)
Commercial real estate price growth		(0.2	)		1.8		(3.8	)		(7.1	)		0.4		5.3		(4.7	)		(6.4	)

	At 31 December 2019										At 31 December 2018
								Severe										Severe
	Base case		Upside		Downside			downside			Base case		Upside		Downside			downside
Economic assumptions – start to peak	%		%		%			%			%		%		%			%
Interest rate		1.75		2.56		0.75			0.75			1.75		4.00		1.75			1.25
Unemployment rate		4.6		4.6		6.9			8.3			4.8		4.3		6.3			8.6
House price growth		6.0		26.3		(1.9	)		(2.3	)		13.7		34.9		0.6			(1.6	)
Commercial real estate price growth		0.1		10.4		(0.6	)		(1.1	)		0.1		26.9		(0.5	)		(0.5	)

	At 31 December 2019												At 31 December 2018
										Severe											Severe
	Base case			Upside			Downside			downside			Base case			Upside		Downside			downside
Economic assumptions – start to trough	%			%			%			%			%			%		%			%
Interest rate		0.75			0.75			0.35			0.01			0.75			0.75		0.75			0.25
Unemployment rate		3.8			3.4			3.9			3.9			4.1			3.5		4.3			4.2
House price growth		(1.9	)		(0.8	)		(14.8	)		(33.1	)		0.4			2.3		(26.5	)		(33.5	)
Commercial real estate price growth		(0.9	)		0.3			(17.5	)		(30.9	)		(0.1	)		0.0		(23.8	)		(33.8	)

Economic Scenarios [Member]

CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES (Tables) [Line Items]

Explanation of credit risk management practices and how they relate to recognition and measurement of expected credit losses [text block]

The table below shows the extent to which a higher ECL allowance has been recognised to take account of forward looking information from the weighted multiple economic scenarios. The most significant difference between these bases arises on UK mortgages as the probability weighted ECL includes the impact of house price movements on the loss given default. For other portfolios adjustment is made only for the probability of default. All non-modelled provisions, including post model adjustments, are based on the probability weighted modelled ECL across all scenarios.

	At 31 December 2019						At 31 December 2018
			Probability						Probability
	Base case		weighted		Difference		Base case		weighted		Difference
Impact of multiple economic scenarios	£m		£m		£m		£m		£m		£m
UK mortgages		464		569		105		253		460		207
Other Retail		1,492		1,521		29		1,294		1,308		14
Commercial Banking		1,258		1,315		57		1,472		1,513		41
Other		50		50		–		81		81		–
		3,264		3,455		191		3,100		3,362		262

Increase (Decrease) in House Price Index [Member]

CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES (Tables) [Line Items]

Explanation of credit risk management practices and how they relate to recognition and measurement of expected credit losses [text block]

The table below shows the impact on the Group’s ECL resulting from a decrease/increase in Loss Given Default for a 10 percentage point (pp) increase/ decrease in the UK House Price Index (HPI).

	At 31 December 2019					At 31 December 2018
	10pp increase			10pp decrease		10pp increase			10pp decrease
	in HPI			in HPI		in HPI			in HPI
ECL impact, £m		(110	)		147		(114	)		154

Increase (Decrease) in Unemployment [Member]

CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES (Tables) [Line Items]

Explanation of credit risk management practices and how they relate to recognition and measurement of expected credit losses [text block]

The table below shows the impact on the Group’s ECL resulting from a decrease/increase for a 1 percentage point (pp) increase/decrease in the UK unemployment rate.

	At 31 December 2019					At 31 December 2018
	1pp increase in		1pp decrease in			1pp increase in		1pp decrease in
	unemployment		unemployment			unemployment		unemployment
ECL impact, £m		141		(143	)		172		(155	)