ALLOWANCE FOR IMPAIRMENT LOSSES (Tables)

12 Months Ended

Dec. 31, 2019

ALLOWANCE FOR IMPAIRMENT LOSSES (Tables) [Line Items]

Disclosure of movement in the allowance for impairment losses

ANALYSIS OF MOVEMENT IN THE ALLOWANCE FOR IMPAIRMENT LOSSES BY STAGE

Year ended 31 December 2019	Stage 1 £m			Stage 2 £m			Stage 3 £m			Purchased or originated credit-impaired £m			Total £m
In respect of drawn balances
At 1 January 2019		527			994			1,570			78			3,169
Exchange and other adjustments		11			(9	)		23			283			308
Transfers to Stage 1		229			(222	)		(7	)					–
Transfers to Stage 2		(53	)		92			(39	)					–
Transfers to Stage 3		(15	)		(140	)		155						–
Impact of transfers between stages		(175	)		353			420						598
		(14	)		83			529						598
Other items charged to the income statement		153			(73	)		827			(193	)		714
Charge to the income statement (note 13)		139			10			1,356			(193	)		1,312
Advances written off								(1,829	)		(54	)		(1,883	)
Recoveries of advances written off in previous years								397			28			425
Discount unwind								(53	)		–			(53	)
At 31 December 2019		677			995			1,464			142			3,278
In respect of undrawn balances
At January 2019		123			64			6			–			193
Exchange and other adjustments		–			(1	)		–			–			(1	)
Transfers to Stage 1		19			(19	)		–						–
Transfers to Stage 2		(4	)		4			–						–
Transfers to Stage 3		(1	)		(3	)		4						–
Impact of transfers between stages		(17	)		24			(1	)					6
		(3	)		6			3						6
Other items charged to the income statement		(25	)		8			(4	)		–			(21	)
Charge to the income statement (note 13)		(28	)		14			(1	)		–			(15	)
At 31 December 2019		95			77			5			–			177
Total at 31 December 2019		772			1,072			1,469			142			3,455
In respect of:
Loans and advances to banks		2			–			–			–			2
Loans and advances to customers:
Retail mortgages		23			281			122			142			568
Other		652			714			1,325			–			2,691
		675			995			1,447			142			3,259
Debt securities		–			–			3			–			3
Financial assets at amortised cost		677			995			1,450			142			3,264
Other assets		–			–			14			–			14
Provisions in relation to loan commitments and financial guarantees		95			77			5			–			177
Total		772			1,072			1,469			142			3,455
Expected credit loss in respect of financial assets at fair value through other comprehensive income (memorandum item)		–			–			–			–			–

	Stage 1 £m			Stage 2 £m			Stage 3 £m			Purchased or originated credit-impaired £m			Total £m
Balance at 1 January 2019		37			226			118			78			459
Exchange and other adjustments		–			–			–			283			283
Transfers to Stage 1		17			(17	)		–						–
Transfers to Stage 2		(13	)		33			(20	)					–
Transfers to Stage 3		(5	)		(21	)		26						–
Impact of transfers between stages		(15	)		105			39						129
		(16	)		100			45						129
Other items charged to the income statement		3			(45	)		(59	)		(193	)		(294	)
Charge to the income statement		(13	)		55			(14	)		(193	)		(165	)
Advances written off								(35	)		(54	)		(89	)
Recoveries of advances written off in previous years								29			28			57
Discount unwind								24			–			24
At 31 December 2019		24			281			122			142			569

Year ended 31 December 2018	Stage 1 £m			Stage 2 £m			Stage 3 £m			Purchased or originated credit-impaired £m		Total £m
In respect of drawn balances
Balance at 1 January 2018		590			1,147			1,491			32		3,260
Exchange and other adjustments		2			–			133			–		135
Transfers to Stage 1		304			(299	)		(5	)				–
Transfers to Stage 2		(46	)		85			(39	)				–
Transfers to Stage 3		(32	)		(131	)		163					–
Impact of transfers between stages		(233	)		401			325					493
		(7	)		56			444					493
Other items charged to the income statement		(58	)		(107	)		696			–		531
Charge to the income statement (note 13)		(65	)		(51	)		1,140			–		1,024
Advances written off								(1,605	)		–		(1,605	)
Disposal of businesses		–			(102	)		(79	)		–		(181	)
Recoveries of advances written off in previous years								553			27		580
Discount unwind								(63	)		19		(44	)
At 31 December 2018		527			994			1,570			78		3,169
In respect of undrawn balances
Balance at 1 January 2018		147			126			–			–		273
Exchange and other adjustments		(5	)		(14	)		12			–		(7	)
Transfers to Stage 1		28			(28	)		–					–
Transfers to Stage 2		(6	)		6			–					–
Transfers to Stage 3		(2	)		(5	)		7					–
Impact of transfers between stages		(25	)		22			(5	)				(8	)
		(5	)		(5	)		2					(8	)
Other items charged to the income statement		(14	)		(43	)		(8	)		–		(65	)
Charge to the income statement (note 13)		(19	)		(48	)		(6	)		–		(73	)
At 31 December 2018		123			64			6			–		193
Total at 31 December 2018		650			1,058			1,576			78		3,362
In respect of:
Loans and advances to banks		2			–			–			–		2
Loans and advances to customers:
Retail mortgages (see below)		37			226			118			78		459
Other		488			768			1,435			–		2,691
		525			994			1,553			78		3,150
Debt securities		–			–			6			–		6
Financial assets at amortised cost		527			994			1,559			78		3,158
Other assets		–			–			11			–		11
Provisions in relation to loan commitments and financial guarantees		123			64			6			–		193
Total		650			1,058			1,576			78		3,362
Expected credit loss in respect of financial assets at fair value through other comprehensive income (memorandum item):		1			–			–			–		1

	Stage 1 £m			Stage 2 £m			Stage 3 £m			Purchased or originated credit-impaired £m		Total £m
Balance at 1 January 2018		30			236			86			32		384
Exchange and other adjustments		–			1			1			–		2
Transfers to Stage 1		72			(71	)		(1	)				–
Transfers to Stage 2		(3	)		15			(12	)				–
Transfers to Stage 3		(3	)		(17	)		20					–
Impact of transfers between stages		(48	)		82			40					74
		18			9			47					74
Other items charged to the income statement		(11	)		(20	)		(5	)		–		(36	)
Charge to the income statement		7			(11	)		42			–		38
Advances written off								(19	)		–		(19	)
Recoveries of advances written off in previous years								3			27		30
Discount unwind								5			19		24
At 31 December 2018		37			226			118			78		459

Disclosure of impairment [text block]

										Purchased or
										originated
	Stage 1			Stage 2			Stage 3			credit-impaired			Total
	£m			£m			£m			£m			£m
Year ended 31 December 2019
Impact of transfers between stages		(17	)		89			532			–			604
Other changes in credit quality		4			1			899			(106	)		798
Additions (repayments)		94			(39	)		(84	)		(87	)		(116	)
Methodology, model and assumption changes		33			(27	)		8			–			14
Other items		(4	)		–			–			–			(4	)
		127			(65	)		823			(193	)		692
Total impairment		110			24			1,355			(193	)		1,296
In respect of:
Loans and advances to banks		–			–			–			–			–
Loans and advances to customers		139			10			1,351			(193	)		1,307
Financial assets at amortised cost		139			10			1,351			(193	)		1,307
Other assets		–			–			5			–			5
Impairment charge on drawn balances		139			10			1,356			(193	)		1,312
Loan commitments and financial guarantees		(28	)		14			(1	)		–			(15	)
Financial assets at fair value through other comprehensive income		(1	)		–			–			–			(1	)
Total impairment		110			24			1,355			(193	)		1,296

										Purchased or
										originated
	Stage 1			Stage 2			Stage 3			credit-impaired			Total
	£m			£m			£m			£m			£m
Year ended 31 December 2018
Impact of transfers between stages		(12	)		51			446			–			485
Other changes in credit quality		(20	)		(47	)		541			69			543
Additions (repayments)		18			(82	)		43			(69	)		(90	)
Methodology, model and assumption changes		(71	)		(21	)		72			–			(20	)
Other items		(13	)		–			32			–			19
		(86	)		(150	)		688			–			452
Total impairment		(98	)		(99	)		1,134			–			937
In respect of:
Loans and advances to banks		1			–			–			–			1
Loans and advances to customers		(66	)		(51	)		1,139			–			1,022
Financial assets at amortised cost		(65	)		(51	)		1,139			–			1,023
Other assets		–			–			1			–			1
Impairment charge on drawn balances		(65	)		(51	)		1,140			–			1,024
Loan commitments and financial guarantees		(19	)		(48	)		(6	)		–			(73	)
Financial assets at fair value through other comprehensive income		(14	)		–			–			–			(14	)
Total impairment		(98	)		(99	)		1,134			–			937

Impairment charged to the income statement

ALLOWANCE FOR IMPAIRMENT LOSSES (Tables) [Line Items]

Disclosure of impairment [text block]

The Group income statement charge comprises:

	2019 £m		2018 £m
Drawn balances	1,312		1,024
Undrawn balances	(15	)	(73	)
Financial assets at fair value through other comprehensive income	(1	)	(14	)
Total	1,296		937