Credit quality of loans and advances to customers

6 Months Ended

Jun. 30, 2023

Credit Quality Of Loans And Advances To Banks And Customers [Abstract]

Credit quality of loans and advances to customers

Note 15: Credit quality of loans and advances to customers

		Gross drawn exposures								Expected credit loss allowance
At 30 June 2023	Stage 1 £m		Stage 2 £m		Stage 3 £m		POCI £m	Total £m	Stage 1 £m		Stage 2 £m		Stage 3 £m		POCI £m	Total £m
Retail – UK mortgages
RMS 1–3		241,410		19,656		–	–	261,066		96		116		–	–	212
RMS 4–6		9,504		18,865		–	–	28,369		20		189		–	–	209
RMS 7–9		99		1,863		–	–	1,962		–		47		–	–	47
RMS 10		–		940		–	–	940		–		40		–	–	40
RMS 11–13		–		3,319		–	–	3,319		–		180		–	–	180
RMS 14		–		–		3,766	8,349	12,115		–		–		366	275	641
		251,013		44,643		3,766	8,349	307,771		116		572		366	275	1,329
Retail – credit cards
RMS 1–3		3,691		3		–	–	3,694		7		–		–	–	7
RMS 4–6		6,941		1,309		–	–	8,250		71		63		–	–	134
RMS 7–9		1,571		1,151		–	–	2,722		55		150		–	–	205
RMS 10		7		234		–	–	241		1		53		–	–	54
RMS 11–13		–		369		–	–	369		–		148		–	–	148
RMS 14		–		–		302	–	302		–		–		123	–	123
		12,210		3,066		302	–	15,578		134		414		123	–	671
Retail – loans and overdrafts
RMS 1–3		657		1		–	–	658		2		–		–	–	2
RMS 4–6		6,268		378		–	–	6,646		93		32		–	–	125
RMS 7–9		2,042		544		–	–	2,586		79		70		–	–	149
RMS 10		80		188		–	–	268		7		41		–	–	48
RMS 11–13		28		424		–	–	452		5		165		–	–	170
RMS 14		–		–		242	–	242		–		–		128	–	128
		9,075		1,535		242	–	10,852		186		308		128	–	622
Retail – UK Motor Finance
RMS 1–3		9,488		752		–	–	10,240		84		11		–	–	95
RMS 4–6		2,835		974		–	–	3,809		31		20		–	–	51
RMS 7–9		512		275		–	–	787		3		10		–	–	13
RMS 10		–		60		–	–	60		–		5		–	–	5
RMS 11–13		1		165		–	–	166		–		25		–	–	25
RMS 14		–		–		122	–	122		–		–		60	–	60
		12,836		2,226		122	–	15,184		118		71		60	–	249
Retail – other
RMS 1–3		12,501		279		–	–	12,780		2		3		–	–	5
RMS 4–6		2,210		200		–	–	2,410		16		12		–	–	28
RMS 7–9		–		76		–	–	76		–		3		–	–	3
RMS 10		–		6		–	–	6		–		–		–	–	–
RMS 11–13		86		6		–	–	92		–		–		–	–	–
RMS 14		–		–		131	–	131		–		–		51	–	51
		14,797		567		131	–	15,495		18		18		51	–	87
Total Retail		299,931		52,037		4,563	8,349	364,880		572		1,383		728	275	2,958

NOTES TO THE CONDENSED CONSOLIDATED HALF-YEAR FINANCIAL STATEMENTS (continued)

Note 15: Credit quality of loans and advances to customers (continued)

		Gross drawn exposures								Expected credit loss allowance
At 30 June 2023	Stage 1 £m		Stage 2 £m		Stage 3 £m		POCI £m	Total £m	Stage 1 £m		Stage 2 £m		Stage 3 £m		POCI £m	Total £m
Commercial Banking
CMS 1–5		14,032		52		–	–	14,084		5		–		–	–	5
CMS 6–10		33,160		241		–	–	33,401		37		2		–	–	39
CMS 11–14		30,995		4,967		–	–	35,962		128		102		–	–	230
CMS 15–18		2,678		3,373		–	–	6,051		36		194		–	–	230
CMS 19		12		1,032		–	–	1,044		–		100		–	–	100
CMS 20–23		–		–		3,320	–	3,320		–		–		1,171	–	1,171
		80,877		9,665		3,320	–	93,862		206		398		1,171	–	1,775
Other1		(3,291)		–		6	–	(3,285)		–		–		4	–	4
Total loans and advances to customers		377,517		61,702		7,889	8,349	455,457		778		1,781		1,903	275	4,737
In respect of:
Retail		299,931		52,037		4,563	8,349	364,880		572		1,383		728	275	2,958
Commercial Banking		80,877		9,665		3,320	–	93,862		206		398		1,171	–	1,775
Other1		(3,291)		–		6	–	(3,285)		–		–		4	–	4
Total loans and advances to customers		377,517		61,702		7,889	8,349	455,457		778		1,781		1,903	275	4,737

1    Gross drawn exposures include centralised fair value hedge accounting adjustments.

NOTES TO THE CONDENSED CONSOLIDATED HALF-YEAR FINANCIAL STATEMENTS (continued)

Note 15: Credit quality of loans and advances to customers (continued)

	Gross drawn exposures					Expected credit loss allowance
At 31 December 2022	Stage 1 £m	Stage 2 £m	Stage 3 £m	POCI £m	Total £m	Stage 1 £m	Stage 2 £m	Stage 3 £m	POCI £m	Total £m
Retail – UK mortgages
RMS 1–3	250,937	24,844	–	–	275,781	81	180	–	–	261
RMS 4–6	6,557	11,388	–	–	17,945	10	140	–	–	150
RMS 7–9	23	2,443	–	–	2,466	–	72	–	–	72
RMS 10	–	734	–	–	734	–	24	–	–	24
RMS 11–13	–	2,374	–	–	2,374	–	136	–	–	136
RMS 14	–	–	3,416	9,622	13,038	–	–	311	253	564
	257,517	41,783	3,416	9,622	312,338	91	552	311	253	1,207
Retail – credit cards
RMS 1–3	3,587	5	–	–	3,592	7	–	–	–	7
RMS 4–6	6,497	1,441	–	–	7,938	66	70	–	–	136
RMS 7–9	1,332	1,246	–	–	2,578	47	167	–	–	214
RMS 10	–	227	–	–	227	–	52	–	–	52
RMS 11–13	–	368	–	–	368	–	144	–	–	144
RMS 14	–	–	289	–	289	–	–	113	–	113
	11,416	3,287	289	–	14,992	120	433	113	–	666
Retail – loans and overdrafts
RMS 1–3	659	1	–	–	660	2	–	–	–	2
RMS 4–6	5,902	451	–	–	6,353	90	24	–	–	114
RMS 7–9	1,724	657	–	–	2,381	69	83	–	–	152
RMS 10	53	199	–	–	252	5	45	–	–	50
RMS 11–13	19	405	–	–	424	3	163	–	–	166
RMS 14	–	–	247	–	247	–	–	126	–	126
	8,357	1,713	247	–	10,317	169	315	126	–	610
Retail – UK Motor Finance
RMS 1–3	8,969	743	–	–	9,712	66	9	–	–	75
RMS 4–6	2,778	930	–	–	3,708	25	20	–	–	45
RMS 7–9	425	325	–	–	750	2	13	–	–	15
RMS 10	–	99	–	–	99	–	8	–	–	8
RMS 11–13	2	148	–	–	150	–	26	–	–	26
RMS 14	–	–	154	–	154	–	–	81	–	81
	12,174	2,245	154	–	14,573	93	76	81	–	250
Retail – other
RMS 1–3	12,588	328	–	–	12,916	9	4	–	–	13
RMS 4–6	1,311	213	–	–	1,524	4	11	–	–	15
RMS 7–9	–	90	–	–	90	–	3	–	–	3
RMS 10	–	5	–	–	5	–	–	–	–	–
RMS 11–13	91	7	–	–	98	–	–	–	–	–
RMS 14	–	–	157	–	157	–	–	52	–	52
	13,990	643	157	–	14,790	13	18	52	–	83
Total Retail	303,454	49,671	4,263	9,622	367,010	486	1,394	683	253	2,816

NOTES TO THE CONDENSED CONSOLIDATED HALF-YEAR FINANCIAL STATEMENTS (continued)

Note 15: Credit quality of loans and advances to customers (continued)

	Gross drawn exposures					Expected credit loss allowance
At 31 December 2022	Stage 1 £m	Stage 2 £m	Stage 3 £m	POCI £m	Total £m	Stage 1 £m	Stage 2 £m	Stage 3 £m	POCI £m	Total £m
Commercial Banking
CMS 1–5	13,573	33	–	–	13,606	2	–	–	–	2
CMS 6–10	32,070	512	–	–	32,582	37	3	–	–	40
CMS 11–14	31,591	5,627	–	–	37,218	128	93	–	–	221
CMS 15–18	3,275	4,508	–	–	7,783	47	244	–	–	291
CMS 19	–	813	–	–	813	–	74	–	–	74
CMS 20–23	–	–	3,371	–	3,371	–	–	1,070	–	1,070
	80,509	11,493	3,371	–	95,373	214	414	1,070	–	1,698
Other1	(2,972)	–	6	–	(2,966)	–	–	4	–	4
Total loans and advances to customers	380,991	61,164	7,640	9,622	459,417	700	1,808	1,757	253	4,518
In respect of:
Retail	303,454	49,671	4,263	9,622	367,010	486	1,394	683	253	2,816
Commercial Banking	80,509	11,493	3,371	–	95,373	214	414	1,070	–	1,698
Other1	(2,972)	–	6	–	(2,966)	–	–	4	–	4
Total loans and advances to customers	380,991	61,164	7,640	9,622	459,417	700	1,808	1,757	253	4,518

1    Gross drawn exposures include centralised fair value hedge accounting adjustments.