Debt securities in issue

12 Months Ended

Dec. 31, 2025

Note 26: Debt securities in issue


	2025			2024
	At fair value through profit or loss £m	At amortised cost £m	Total £m	At fair value through profit or loss £m	At amortised cost £m	Total £m
Senior unsecured notes issued	4,226	37,532	41,758	4,608	40,019	44,627
Covered bonds	–	11,260	11,260	–	11,764	11,764
Certificates of deposit issued	–	7,333	7,333	–	5,776	5,776
Securitisation notes	17	6,325	6,342	22	5,185	5,207
Commercial paper	–	15,821	15,821	–	8,090	8,090
Total debt securities in issue	4,243	78,271	82,514	4,630	70,834	75,464

Covered bonds and securitisation programmes

At 31 December 2025, the covered bonds held by external parties and those held internally, were secured on certain loans and advances to

customers amounting to £22,072 million (2024: £26,202 million) which have been assigned to bankruptcy remote limited liability

partnerships to provide security for issues of covered bonds by the Group. The Group retains all of the risks and rewards associated with

these loans and the partnerships are consolidated fully with the loans retained on the Group’s balance sheet.

The Group has two covered bond programmes, which have ring-fence asset pools and guarantee the covered bonds issued by the Group.

At the reporting date the Group had over-collateralised these programmes to meet the terms of the programmes, to secure the rating of

the covered bonds and to provide operational flexibility. From time to time, the obligations of the Group to provide collateral may increase

due to the formal requirements of the programmes. The Group may also voluntarily contribute collateral to support the ratings of the

covered bonds.

Covered bonds includes Pfandbriefe, which the Group issued for the first time in 2024.

The Group’s securitisation vehicles issue notes that are held both externally and internally, and are secured on loans and advances to

customers amounting to £27,766 million at 31 December 2025 (2024: £27,657 million), the majority of which have been sold by subsidiary

companies to bankruptcy remote structured entities. As the structured entities are funded by the issue of debt on terms whereby the

majority of the risks and rewards of the portfolio are retained by the subsidiary, the structured entities are consolidated fully and all of

these loans are retained on the Group’s balance sheet.

Cash deposits of £3,359 million (2024: £3,256 million) which support the debt securities issued by the structured entities, the term

advances related to covered bonds and other legal obligations, are held by the Group. Additionally, the Group has certain contractual

arrangements to provide liquidity facilities to some of these structured entities. At 31 December 2025 these obligations had not been

triggered; the maximum exposure under these facilities was £11 million (2024: £11 million).

The Group recognises the full liabilities associated with its securitisation and covered bond programmes within debt securities in issue,

although the obligations of the Group in respect of its securitisation issuances are limited to the cash flows generated from the underlying

assets. The Group could be required to provide additional support to a number of the securitisation programmes to support the credit

ratings of the debt securities issued, in the form of increased cash reserves and the holding of subordinated notes. Further, certain

programmes contain contractual obligations that require the Group to repurchase assets should they become credit-impaired or as

otherwise required by the transaction documents. The Group has not provided financial or other support by voluntarily offering to

repurchase assets from any of its public securitisation programmes during 2025 (2024: none).