NET INTEREST INCOME (Tables)

12 Months Ended

Dec. 31, 2019

Disclosure of interest income (expense) [text block] [Abstract]

Disclosure of interest income [text block]

	Weighted average effective interest rate
	2019		2018			2017		2019			2018			2017
	%		%			%		£m			£m			£m
Interest and similar income:
Loans and advances to customers		3.17		3.17			3.16		15,790			15,078			14,712
Loans and advances to banks		0.78		0.84			0.40		514			565			271
Debt securities held at amortised cost		2.23		1.60			1.29		122			66			43
Interest receivable on financial assets held at amortised cost		2.89		2.87			2.81		16,426			15,709			15,026
Financial assets at fair value through other comprehensive income		1.64		1.98					435			640
Available-for-sale financial assets							1.96								980
Total interest and similar income1		2.83		2.82			2.73		16,861			16,349			16,006
Interest and similar expense:
Deposits from banks, excluding liabilities under sale and repurchase transactions		0.86		1.39			1.18		(96	)		(117	)		(80	)
Customer deposits, excluding liabilities under sale and repurchase transactions		0.59		0.53			0.49		(2,015	)		(1,812	)		(1,721	)
Debt securities in issue2		1.24		0.27			0.37		(1,204	)		(234	)		(266	)
Subordinated liabilities		6.79		7.63			7.93		(1,201	)		(1,388	)		(1,481	)
Lease liabilities		2.49		2.46			2.38		(42	)		(1	)		(1	)
Liabilities under sale and repurchase agreements		1.12		0.96			0.58		(301	)		(245	)		(110	)
Interest payable on liabilities held at amortised cost		0.98		0.79			0.79		(4,859	)		(3,797	)		(3,659	)
Amounts payable to unitholders in consolidated open-ended investment vehicles4		13.64		(6.07	)		9.15		(1,822	)		844			(1,435	)
Total interest and similar expense3		1.31		0.60			1.06		(6,681	)		(2,953	)		(5,094	)
Net interest income									10,180			13,396			10,912

1	Includes £26 million (2018: £31 million; 2017: £12 million) of interest income on liabilities with negative interest rates and £45 million (2018: £46 million; 2017: £49 million) in respect of interest income on finance leases.
2	The impact of the Group’s hedging arrangements is included on this line; excluding this impact the weighted average effective interest rate in respect of debt securities in issue would be 2.57 per cent (2018: 2.68 per cent; 2017: 2.43 per cent).
3	Includes £119 million (2018: £10 million; 2017: £50 million) of interest expense on assets with negative interest rates.
4	Where a collective investment vehicle is consolidated the interests of parties other than the Group are reported in other liabilities and the movement in these interests in interest expense.