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OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES
 12 Months Ended
Dec. 31, 2021
Disclosure of offsetting of financial assets and financial liabilities [Abstract]  
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES
NOTE 50: OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES
The following information relates to financial assets and liabilities which have been offset in the balance sheet and those which have not been offset but for which the Group has enforceable master netting agreements or collateral arrangements in place with counterparties.
Related amounts where
set off in the balance
sheet not permitted3
Potential
net amounts
if offset
of related
amounts
permitted
Gross
amounts of
assets and
liabilities1
Amount
offset in
the balance
sheet2
Net amounts
presented in
the balance
sheet		Cash
collateral
received/
pledged		Non-cash
collateral
received/
pledged
£m£m£m£m£m£m
At 31 December 2021
Financial assets
Financial assets at fair value through profit or loss:
Excluding reverse repurchase agreements191,850 — 191,850 — (2,456)189,394 
Reverse repurchase agreements33,834 (18,913)14,921 (20)(14,901)— 
225,684 (18,913)206,771 (20)(17,357)189,394 
Derivative financial instruments50,205 (28,154)22,051 (5,658)(12,645)3,748 
Loans and advances to banks and reverse
repurchase agreements:
Loans and advances to banks7,001 — 7,001 (1,731)— 5,270 
Reverse repurchase agreements4,499 (967)3,532 — (3,532)— 
11,500 (967)10,533 (1,731)(3,532)5,270 
Loans and advances to customers and reverse repurchase agreements:
Loans and advances to customers449,732 (1,165)448,567 (798)(1,506)446,263 
Reverse repurchase agreements59,975 (8,754)51,221 — (51,221)— 
509,707 (9,919)499,788 (798)(52,727)446,263 
Debt securities6,835 — 6,835 — (267)6,568 
Financial assets at fair value through other comprehensive income28,137 — 28,137 — (4,981)23,156 
Financial liabilities
Deposits from banks and repurchase agreements:
Deposits from banks7,647 — 7,647 (5,678)— 1,969 
Repurchase agreements31,052 (967)30,085 — (30,085)— 
38,699 (967)37,732 (5,678)(30,085)1,969 
Customer deposits and repurchase agreements:
Customer deposits477,509 (1,165)476,344 — (1,506)474,838 
Repurchase agreements9,794 (8,754)1,040 — (1,040)— 
487,303 (9,919)477,384 — (2,546)474,838 
Financial liabilities at fair value through profit or loss:
Excluding repurchase agreements8,161 — 8,161 — — 8,161 
Repurchase agreements33,875 (18,913)14,962 — (14,962)— 
42,036 (18,913)23,123 — (14,962)8,161 
Derivative financial instruments46,214 (28,154)18,060 (2,529)(15,063)468 
1After impairment allowance.
2The amounts offset in the balance sheet as shown above mainly represent derivatives and repurchase agreements with central clearing houses which meet the criteria for offsetting under IAS 32.
3The Group enters into derivatives and repurchase and reverse repurchase agreements with various counterparties which are governed by industry standard master netting agreements. The Group holds and provides cash and securities collateral in respective of derivative transactions covered by these agreements. The right to set off balances under these master netting agreements or to set off cash and securities collateral only arises in the event of non-payment or default and, as a result, these arrangements do not qualify for offsetting under IAS 32.
The effects of over-collateralisation have not been taken into account in the above table.
Related amounts where
set off in the balance
sheet not permitted3
Potential
net amounts
if offset
of related
amounts
permitted
Gross
amounts of
assets and
liabilities1
Amount
offset in
the balance
sheet2
Net amounts
presented in
the balance
sheet		Cash
collateral
received/
pledged		Non-cash
collateral
received/
pledged
£m£m£m£m£m£m
At 31 December 2020
Financial assets
Financial assets at fair value through profit or loss:
Excluding reverse repurchase agreements178,176 — 178,176 — (2,567)175,609 
Reverse repurchase agreements27,904 (14,911)12,993 (24)(12,969)— 
206,080 (14,911)191,169 (24)(15,536)175,609 
Derivative financial instruments88,700 (59,087)29,613 (8,715)(16,747)4,151 
Loans and advances to banks and reverse repurchase agreements:
Loans and advances to banks8,060 — 8,060 (3,105)— 4,955 
Reverse repurchase agreements2,694 (8)2,686 — (2,686)— 
10,754 (8)10,746 (3,105)(2,686)4,955 
Loans and advances to customers and reverse
repurchase agreements:
Loans and advances to customers440,200 — 440,200 (2,094)(2,762)435,344 
Reverse repurchase agreements64,052 (5,409)58,643 — (58,643)— 
504,252 (5,409)498,843 (2,094)(61,405)435,344 
Debt securities5,405 — 5,405 — — 5,405 
Financial assets at fair value through other comprehensive income27,603 — 27,603 — (5,132)22,471 
Financial liabilities
Deposits from banks and repurchase agreements:
Deposits from banks12,698 — 12,698 (8,739)— 3,959 
Repurchase agreements18,775 (8)18,767 — (18,767)— 
31,473 (8)31,465 (8,739)(18,767)3,959 
Customer deposits and repurchase agreements:
Customer deposits450,651 — 450,651 (1,862)(2,762)446,027 
Repurchase agreements14,826 (5,409)9,417 — (9,417)— 
465,477 (5,409)460,068 (1,862)(12,179)446,027 
Financial liabilities at fair value through profit or loss:
Excluding repurchase agreements7,650 — 7,650 — — 7,650 
Repurchase agreements29,907 (14,911)14,996 — (14,996)— 
37,557 (14,911)22,646 — (14,996)7,650 
Derivative financial instruments85,088 (57,775)27,313 (5,199)(20,156)1,958 
1After impairment allowance.
2The amounts offset in the balance sheet as shown above mainly represent derivatives and repurchase agreements with central clearing houses which meet the criteria for offsetting under IAS 32.
3The Group enters into derivatives and repurchase and reverse repurchase agreements with various counterparties which are governed by industry standard master netting agreements. The Group holds and provides cash and securities collateral in respective of derivative transactions covered by these agreements. The right to set off balances under these master netting agreements or to set off cash and securities collateral only arises in the event of non-payment or default and, as a result, these arrangements do not qualify for offsetting under IAS 32.
The effects of over-collateralisation have not been taken into account in the above table.