Segmental analysis (Tables)

6 Months Ended

Jun. 30, 2025

Disclosure of operating segments [abstract]

Schedule of operating segments

The table below analyses the Group’s income and profit by segment on an underlying basis. Net income is also

analysed between external and inter-segment income.

Half-year to 30 June 2025	Retail £m	Commercial Banking £m		Insurance, Pensions and Investments £m		Other £m	Total £m
Underlying net interest income	4,709		1,766		(78)	258	6,655
Underlying other income	1,276		926		689	78	2,969
Total underlying income	5,985		2,692		611	336	9,624
Operating lease depreciation1	(706)		(4)		–	–	(710)
Net income	5,279		2,688		611	336	8,914
Operating costs	(2,922)		(1,394)		(466)	(92)	(4,874)
Remediation	(41)		–		(2)	6	(37)
Total costs	(2,963)		(1,394)		(468)	(86)	(4,911)
Underlying impairment (charge) credit	(342)		(100)		1	(1)	(442)
Underlying profit before tax	1,974		1,194		144	249	3,561
External income	7,377		1,767		690	(210)	9,624
External operating lease depreciation1	(706)		(4)		–	–	(710)
Inter-segment (expense) income	(1,392)		925		(79)	546	–
Net income	5,279		2,688		611	336	8,914
Loans and advances to customers2	382,211		88,716		–	671	471,598
External assets	396,606		151,336		197,520	173,820	919,282
Customer deposits	323,365		170,217		–	350	493,932
External liabilities	329,493		215,329		192,760	134,829	872,411

1Net of losses on disposal of operating lease assets of £3 million.

2Other includes centralised fair value hedge accounting adjustments.

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

Note 3: Segmental analysis (continued)

Half-year to 30 June 2024	Retail £m	Commercial Banking £m		Insurance, Pensions and Investments £m		Other £m	Total £m
Underlying net interest income	4,430		1,696		(74)	286	6,338
Underlying other income1	1,133		942		649	10	2,734
Total underlying income	5,563		2,638		575	296	9,072
Operating lease depreciation2	(677)		(2)		–	–	(679)
Net income	4,886		2,636		575	296	8,393
Operating costs1	(2,763)		(1,358)		(458)	(121)	(4,700)
Remediation	(54)		(32)		(5)	(4)	(95)
Total costs	(2,817)		(1,390)		(463)	(125)	(4,795)
Underlying impairment (charge) credit	(194)		83		7	3	(101)
Underlying profit before tax	1,875		1,329		119	174	3,497
External income	6,551		2,083		649	(211)	9,072
External operating lease depreciation2	(677)		(2)		–	–	(679)
Inter-segment (expense) income	(988)		555		(74)	507	–
Net income	4,886		2,636		575	296	8,393
Loans and advances to customers3	365,055		88,069		–	(716)	452,408
External assets	380,919		148,736		191,796	171,476	892,927
Customer deposits	313,339		161,159		–	195	474,693
External liabilities	319,066		202,358		187,673	138,713	847,810

Half-year to 31 December 2024
Underlying net interest income	4,500	1,738	(62)	331	6,507
Underlying other income1	1,221	873	643	126	2,863
Total underlying income	5,721	2,611	581	457	9,370
Operating lease depreciation2	(642)	(4)	–	–	(646)
Net income	5,079	2,607	581	457	8,724
Operating costs1	(2,803)	(1,394)	(466)	(79)	(4,742)
Remediation	(696)	(72)	(14)	(22)	(804)
Total costs	(3,499)	(1,466)	(480)	(101)	(5,546)
Underlying impairment (charge) credit	(263)	(69)	–	–	(332)
Underlying profit before tax	1,317	1,072	101	356	2,846
External income	7,015	1,898	643	(186)	9,370
External operating lease depreciation2	(642)	(4)	–	–	(646)
Inter-segment (expense) income	(1,294)	713	(62)	643	–
Net income	5,079	2,607	581	457	8,724
Loans and advances to customers3	372,250	87,602	–	5	459,857
External assets4	387,322	148,548	197,309	173,518	906,697
Customer deposits	319,726	162,645	–	374	482,745
External liabilities4	324,730	207,066	193,519	135,494	860,809

1In the half-year to 30 June 2025, for segment reporting, the Group revised its allocation methodology. Certain divisional

variable payment related costs are now included within underlying other income; comparative figures have been represented

on a consistent basis. Total Group figures are unaffected by this change.

2Net of profits on disposal of operating lease assets of £37 million in the half-year to 30 June 2024 and £22 million in the half-

year to 31 December 2024.

3Other includes centralised fair value hedge accounting adjustments.

4  The Insurance, Pensions and Investments operating segment external assets included £5,122 million at 31 December 2024 within

disposal group assets and external liabilities included £5,268 million at 31 December 2024 in disposal group liabilities.

Schedule of reconciliation of underlying basis to statutory results

The table below reconciles the statutory results to the underlying basis.

Statutory basis		Removal of:		Underlying basisA
	£m	Volatility and other items1,2,3 £m	Insurance gross up4 £m	£m
Half-year to 30 June 2025
Net interest income	6,478	177	–	6,655	Underlying net interest income
Other income	2,908	(68)	129	2,969	Underlying other income
		(710)	–	(710)	Operating lease depreciation
Total income	9,386	(601)	129	8,914	Net income
Operating expenses5	(5,440)	658	(129)	(4,911)	Total costs5
Impairment charge	(442)	–	–	(442)	Underlying impairment charge
Profit before tax	3,504	57	–	3,561	Underlying profit
Half-year to 30 June 2024
Net interest income	6,046	300	(8)	6,338	Underlying net interest income
Other income	2,830	(208)	112	2,734	Underlying other income
		(679)	–	(679)	Operating lease depreciation
Total income	8,876	(587)	104	8,393	Net income
Operating expenses5	(5,452)	761	(104)	(4,795)	Total costs5
Impairment charge	(100)	(1)	–	(101)	Underlying impairment charge
Profit before tax	3,324	173	–	3,497	Underlying profit
Half-year to 31 December 2024
Net interest income	6,231	278	(2)	6,507	Underlying net interest income
Other income	2,896	(167)	134	2,863	Underlying other income
		(646)	–	(646)	Operating lease depreciation
Total income	9,127	(535)	132	8,724	Net income
Operating expenses5	(6,149)	735	(132)	(5,546)	Total costs5
Impairment credit	(331)	(1)	–	(332)	Underlying impairment credit
Profit before tax	2,647	199	–	2,846	Underlying profit

1In the half-year ended 30 June 2025 this comprised the effects of market and other volatility (gains of £27 million); the

amortisation of purchased intangibles (£40 million); restructuring costs (£9 million); and fair value unwind (losses of

£35million).

2In the half-year ended 30 June 2024 this comprised the effects of market and other volatility (losses of £65 million); the

amortisation of purchased intangibles (£41 million); restructuring costs (£15 million); and fair value unwind (losses of

£52 million).

3In the half-year ended 31 December 2024 this comprised the effects of market and other volatility (losses of £79 million); the

amortisation of purchased intangibles (£40 million); restructuring costs (£25 million); and fair value unwind (losses of

£55 million).

4Under IFRS 17, expenses which are directly associated with the fulfilment of insurance contracts are reported as part of the

insurance service result within statutory other income. On an underlying basis these expenses remain within costs.

5Net of losses on disposal of operating lease assets of £3 million (half-year to 30 June 2024: profit of £37 million; half-year to

31 December 2024: profit of £22 million). Statutory operating expenses includes operating lease depreciation. On an underlying

basis operating lease depreciation is included in net income.