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Financial instruments - classification (Tables)

12 Months Ended

Dec. 31, 2021

Financial instruments - classification

Schedule of classification for financial assets and liabilities


						Amortised		Other
		MFVTPL		FVOCI		cost		assets		Total
Assets		£m		£m		£m		£m		£m
Cash and balances at central banks		—		—		177,757		—		177,757
Trading assets		59,158		—		—		—		59,158
Derivatives (1)		106,139		—		—		—		106,139
Settlement balances		—		—		2,141		—		2,141
Loans to bank - amortised cost (2)		—		—		7,682		—		7,682
Loans to customers - amortised cost (3)		—		—		358,990		—		358,990
Other financial assets		317		37,266		8,562		—		46,145
Intangible assets		—		—		—		6,723		6,723
Other assets		—		—		—		8,242		8,242
Assets of disposal groups		—		—		—		9,015		9,015
31 December 2021		165,614		37,266		555,132		23,980		781,992


Cash and balances at central banks						124,489				124,489
Trading assets		68,990								68,990
Derivatives (1)		166,523								166,523
Settlement balances						2,297				2,297
Loans to bank - amortised cost (2)						6,955				6,955
Loans to customers - amortised cost (3)						360,544				360,544
Other financial assets		440		44,902		9,806				55,148
Intangible assets								6,655		6,655
Other assets								7,890		7,890
31 December 2020		235,953		44,902		504,091		14,545		799,491


		Held-for-				Amortised		Other
		trading		DFV		cost		liabilities		Total
Liabilities		£m		£m		£m		£m		£m
Bank deposits (4)		—		—		26,279		—		26,279
Customer deposits		—		—		479,810		—		479,810
Settlement balances		—		—		2,068		—		2,068
Trading liabilities		64,598		—		—		—		64,598
Derivatives (1)		100,835		—		—		—		100,835
Other financial liabilities (5)		—		1,671		47,655		—		49,326
Subordinated liabilities		—		703		7,726		—		8,429
Notes in circulation		—		—		3,047		—		3,047
Other liabilities (6)		—		—		1,356		4,441		5,797
31 December 2021		165,433		2,374		567,941		4,441		740,189

Bank deposits (4)						20,606				20,606
Customer deposits						431,739				431,739
Settlement balances						5,545				5,545
Trading liabilities		72,256								72,256
Derivatives (1)		160,705								160,705
Other financial liabilities (5)				2,403		43,408				45,811
Subordinated liabilities				793		9,169				9,962
Notes in circulation						2,655				2,655
Other liabilities (6)						1,882		4,506		6,388
31 December 2020		232,961		3,196		515,004		4,506		755,667

(1)	Includes net hedging derivatives assets of £44 million (2020 - £93 million) and net hedging derivatives liabilities of £120 million (2020 - £130 million).

(2)	Includes items in the course of collection from other banks of £67 million (2020 - £148 million).

(3)	Includes finance lease receivables of £8,531 million (2020 - £9,061 million).

(4)	Includes items in the course of transmission to other banks of £56 million (2020 - £12 million).

(5)

The carrying amount of other customer accounts designated at fair value through profit or loss is the same as the principal amount for both periods. No amounts have been recognised in the profit or loss for changes in credit risk associated with these liabilities as the changes are immaterial both during the period and cumulatively.

(6)	Includes lease liabilities of £1,263 million (2020 - £1,698 million) held at amortised cost.

Schedule of financial assets and liabilities


		2021		2020
		£m		£m
Reverse repos
Trading assets		20,742		19,404
Loans to banks - amortised cost		189		153
Loans to customers - amortised cost		25,962		25,011

Repos
Bank deposits		7,912		6,470
Customer deposits		14,541		5,167
Trading liabilities		19,389		19,036

Schedule of financial assets and liabilities that are offset on the balance sheet


		Instruments which can be offset						Potential for offset not recognised by IFRS
								Effect of						Net amount after		Instruments
								master netting						the effect of netting		outside
				IFRS		Balance		and similar		Cash		Securities		agreements and		netting		Balance
		Gross		offset		sheet		agreements		collateral		collateral		related collateral		agreements		sheet total
2021		£m		£m		£m		£m		£m		£m		£m		£m		£m
Derivative assets		113,220		(7,961)		105,259		(85,006)		(15,035)		(2,428)		2,790		880		106,139
Derivative liabilities		108,594		(8,568)		100,026		(85,006)		(9,909)		(2,913)		2,198		809		100,835
Net position (1)		4,626		607		5,233		—		(5,126)		485		592		71		5,304

Trading reverse repos		44,529		(24,422)		20,107		(900)		—		(19,136)		71		635		20,742
Trading repos		42,664		(24,422)		18,242		(900)		—		(17,341)		1		1,147		19,389
Net position		1,865		—		1,865		—		—		(1,795)		70		(512)		1,353

Non trading reverse repos		33,729		(7,594)		26,135		—		—		(26,135)		—		16		26,151
Non trading repos		30,047		(7,594)		22,453		—		—		(22,453)		—		—		22,453
Net position		3,682		—		3,682		—		—		(3,682)		—		16		3,698

2020
Derivative assets		176,425		(10,807)		165,618		(137,086)		(19,608)		(5,053)		3,871		905		166,523
Derivative liabilities		171,614		(11,540)		160,074		(137,086)		(15,034)		(4,921)		3,033		631		160,705
Net position (1)		4,811		733		5,544		—		(4,574)		(132)		838		274		5,818

Trading reverse repos		43,908		(24,867)		19,041		(929)		—		(18,040)		72		363		19,404
Trading repos		42,203		(24,867)		17,336		(929)		—		(16,407)		—		1,700		19,036
Net position		1,705		—		1,705		—		—		(1,633)		72		(1,337)		368

Non trading reverse repos		36,117		(10,953)		25,164		—		—		(25,164)		—		—		25,164
Non trading repos		22,590		(10,953)		11,637		—		—		(11,637)		—		—		11,637
Net position		13,527		—		13,527		—		—		(13,527)		—		—		13,527

(1)	The net IFRS offset balance of £607 million (2020 - £733 million)relates to variation margin netting reflected on other balance sheet lines.

Schedule of IBOR related exposure by currency and nature of financial instruments


		Rates subject to IBOR reform
		GBP LIBOR		USD IBOR (1)		Other IBOR (2)		Total
2021		£m		£m		£m		£m
Trading assets		62		90		—		152
Loans to banks - amortised cost		—		11		—		11
Loans to customers - amortised cost		4,788		4,565		267		9,620
Other financial assets		864		768		—		1,632

Bank deposits		—		37		—		37
Customer deposits		—		—		—		—
Trading liabilities		31		166		—		197
Other financial liabilities		2,390		7,023		131		9,544
Subordinated liabilities		—		90		—		90

Loan commitments (3)		1,016		6,366		55		7,437

Derivatives notional (£bn)		3.6		1,152.0		—		1,155.6



		Rates subject to IBOR reform
		GBP LIBOR		USD IBOR (1)		EURIBOR (2)		Other IBOR		Total
2020		£m		£m		£m		£m		£m
Trading assets		75		60		348		1		484
Loans to banks - amortised cost		23		82		101		—		206
Loans to customers - amortised cost		40,299		6,366		4,950		234		51,849
Other financial assets		2,918		303		370		—		3,591

Bank deposits		—		367		—		107		474
Customer deposits		—		—		—		4		4
Trading liabilities		54		414		269		2		739
Other financial liabilities		2,492		9,806		5,902		196		18,396
Subordinated liabilities		8		850		438		—		1,296

Loan commitments (3)		25,616		9,228		7,176		682		42,702

Derivatives notional (£bn)		1,407.5		1,368.8		2,358.7		289.6		5,424.6

(1)	In 2021 the FCA declared that USD IBOR will be non-representative post 30 June 2023; at the time of preparing the 31 December 2020 Annual Report on Form 20-F this date was expected to be 31 December 2021.

(2)	In 2021 management concluded that EURIBOR is not expected to be significantly reformed further and therefore any uncertainty due to interest benchmark rate reform for EURIBOR has ended. 31 December 2020 data includes EURIBOR exposure as subject to reform.

(3)	Certain loan commitments are multi-currency facilities. Where these are fully undrawn, they are allocated to the principal currency of the facility. Where the facilities are partly drawn, the remaining loan commitment is allocated to the currency with the largest drawn amount.

Summary of issuance of certain capital instruments


		31 December		31 December
		2021		2020
		£m		£m
US$1.15 billion 8% notes		734		734
US$2.65 billion 8.625% notes		—		2,046