Derivative financial instruments (Tables)

12 Months Ended

Dec. 31, 2024

Disclosure of derivative financial instruments [Abstract]

Schedule of Fair Values and Notional Amounts of Derivative Instruments

The fair values and notional amounts of derivative instruments are set out in the following table:

	2024					2023
	Contract/ notional amount £m	Fair value		Changes in fair value used for calculating hedge ineffectiveness £m		Contract/ notional amount £m	Fair value		Changes in fair value used for calculating hedge ineffectiveness £m
		Assets £m	Liabilities £m				Assets £m	Liabilities £m
Trading and other
Exchange rate contracts	707,329	10,247	9,172			572,858	6,631	6,222
Interest rate contracts	12,864,265	13,436	11,644			7,654,512	15,116	12,724
Credit derivatives	6,103	87	172			5,349	51	118
Equity, commodity and other contracts	8,678	247	333			9,463	455	580
Total derivative assets/liabilities – trading and other	13,586,375	24,017	21,321			8,242,182	22,253	19,644
Hedging
Interest rate
Currency swaps	43	2	–		–	35	3	–		2
Interest rate swaps	231,064	6	337		1,336	153,639	80	425		(2,665)
Designated as fair value hedges	231,107	8	337		1,336	153,674	83	425		(2,663)
Foreign exchange
Currency swaps	1,963	30	14		61	2,684	11	72		(138)
Interest rate
Interest rate swaps	484,996	10	4		(600)	463,660	9	8		2,541
Designated as cash flow hedges	486,959	40	18		(539)	466,344	20	80		2,403
Total derivative assets/liabilities – hedging	718,066	48	355		797	620,018	103	505		(260)
Total recognised derivative assets/ liabilities	14,304,441	24,065	21,676			8,862,200	22,356	20,149

Schedule of Amount, Timing and Uncertainty of Future Cash Flows

Details of the Group’s hedging instruments are set out below:

	Maturity
Fair value hedges	Up to 1 month £m	1 to 3 months £m	3 to 12 months £m		1 to 5 years £m	Over 5 years £m		Total £m
At 31 December 2024
Interest rate
Cross currency swap
Notional	–	–		–	–		43	43
Average fixed interest rate	–	–		–	–		1.28%
Average EUR/GBP exchange rate	–	–		–	–		1.38
Interest rate swap
Notional	5,236	13,781		55,607	111,300		45,140	231,064
Average fixed interest rate	3.04%	3.68%		4.04%	3.36%		2.27%
								231,107
At 31 December 2023
Interest rate
Cross currency swap
Notional	–	–		–	–		35	35
Average fixed interest rate	–	–		–	–		1.28%
Average EUR/GBP exchange rate	–	–		–	–		1.38
Interest rate swap
Notional	1,908	5,778		19,353	87,119		39,481	153,639
Average fixed interest rate	0.95%	1.72%		2.03%	2.90%		2.00%
								153,674

	Maturity
Cash flow hedges	Up to 1 month £m	1 to 3 months £m	3 to 12 months £m		1 to 5 years £m	Over 5 years £m	Total £m
At 31 December 2024
Foreign exchange
Currency swap
Notional	107	441		646	763	6	1,963
Average EUR/GBP exchange rate	1.17	1.16		1.15	1.10	1.06
Average USD/GBP exchange rate	1.30	1.27		1.27	1.27	1.30
Interest rate
Interest rate swap
Notional	9,195	21,010		129,436	262,387	62,968	484,996
Average fixed interest rate	4.32%	4.36%		3.84%	3.34%	3.01%
							486,959
At 31 December 2023
Foreign exchange
Currency swap
Notional	18	470		1,648	541	7	2,684
Average EUR/GBP exchange rate	1.15	1.14		1.14	1.08	1.07
Average USD/GBP exchange rate	1.25	1.23		1.25	1.24	–
Interest rate
Interest rate swap
Notional	9,501	23,015		76,439	284,969	69,736	463,660
Average fixed interest rate	4.13%	4.14%		3.82%	3.35%	2.58%
							466,344

Disclosure of detailed information about hedged items

The Group’s hedged items are as follows:

	Carrying amount of the hedged item		Accumulated amount of fair value adjustment on the hedged item		Change in fair value of hedged item for ineffectiveness assessment £m
Fair value hedges	Assets £m	Liabilities £m	Assets £m	Liabilities £m
At 31 December 2024
Interest rate
Fixed rate mortgages1	124,013	–	(890)	–	(184)
Fixed rate issuance2	–	51,499	–	1,340	(75)
Fixed rate bonds3	29,264	–	(1,070)	–	(1,158)
At 31 December 2023
Interest rate
Fixed rate mortgages1	75,871	–	25	–	2,544
Fixed rate issuance2	–	50,466	–	1,365	(1,110)
Fixed rate bonds3	24,146	–	(331)	–	962

1Included within loans and advances to customers.

2Included within debt securities in issue at amortised cost and subordinated liabilities.

3Included within financial assets at amortised cost and financial assets at fair value through other comprehensive income.

	At 31 December 2024			At 31 December 2023
	Change in fair value of hedged item for ineffectiveness assessment £m	Cash flow hedging reserve		Change in fair value of hedged item for ineffectiveness assessment £m	Cash flow hedging reserve
		Continuing hedges £m	Discontinued hedges £m		Continuing hedges £m	Discontinued hedges £m
Cash flow hedges
Foreign exchange
Foreign currency issuance1	(60)	75	59	138	8	69
Customer deposits2	–	–	5	–	–	3
Interest rate
Customer loans3	982	(3,470)	(1,590)	(1,796)	(2,934)	(1,885)
Central bank balances4	384	(1,012)	(917)	(648)	(624)	(1,462)
Customer deposits2	(51)	1,592	42	262	1,591	(3)

1Included within debt securities in issue at amortised cost and subordinated liabilities.

2Included within customer deposits.

3Included within loans and advances to customers.

4Included within cash and balances at central banks.

Disclosure Gains And Losses Arising From Hedge Accounting

Gains and losses arising from hedge accounting are summarised as follows:

	Hedge ineffectiveness recognised in the income statement1
Fair value hedges	2024 £m	2023 £m
Interest rate
Fixed rate mortgages	(52)	(264)
Fixed rate issuance	(11)	(17)
Fixed rate bonds	(18)	14

1Hedge ineffectiveness is included in the income statement within net trading income.

Note 19: Derivative financial instruments continued

	Gain (loss) recognised in other comprehensive income £m	Hedge ineffectiveness recognised in the income statement1 £m	Amounts reclassified from reserves to net interest income as:
Cash flow hedges			Hedged cash flows will no longer occur £m	Hedged item affected income statement £m
At 31 December 2024
Foreign exchange
Foreign currency issuance	61	–	–		(4)
Interest rate
Customer loans	(2,700)	(61)	–		2,458
Central bank balances	(780)	(7)	–		937
Customer deposits	842	8	–		(794)
At 31 December 2023
Foreign exchange
Foreign currency issuance	(138)	–	–		(9)
Interest rate
Customer loans	(37)	20	–		1,674
Central bank balances	284	2	–		725
Customer deposits	436	(3)	–		(552)

1Hedge ineffectiveness is included in the income statement within net trading income.