v3.25.4
Cash flow statement (Tables)
 12 Months Ended
Dec. 31, 2025
Disclosure of cash flow statement [Abstract]  
Schedule of Change in Operating Assets
2025
£m
2024
£m
2023
£m
Change in financial assets held at amortised cost
(26,316)
(21,106)
12,311
Change in financial assets at fair value through profit or loss
(24,505)
(9,872)
(22,539)
Change in derivative financial instruments
4,446
(4,082)
1,805
Change in other operating assets
5,686
(4,562)
(687)
Change in operating assets
(40,689)
(39,622)
(9,110)
Schedule of Change in Operating Liabilities
2025
£m
2024
£m
2023
£m
Change in deposits from banks
(376)
4
(1,110)
Change in customer deposits
13,858
11,324
(3,850)
Change in repurchase agreements
810
57
(10,893)
Change in financial liabilities at fair value through profit or loss
172
2,619
6,925
Change in derivative financial instruments
(5,216)
1,524
(3,893)
Change in debt securities in issue at amortised cost
7,725
(4,824)
2,094
Change in insurance contracts1
13,220
1,941
9,845
Change in investment contract liabilities
10,412
6,250
5,502
Change in other operating liabilities2
(5,202)
4,708
(388)
Change in operating liabilities
35,403
23,603
4,232
1Includes insurance contracts presented within disposal group liabilities.
2Includes a decrease of £235 million (2024: decrease of £371 million; 2023: increase of £315 million) in respect of lease liabilities.
Schedule of Non-Cash and Other Items
2025
£m
2024
£m
2023
£m
Interest expense and hedging valuation adjustments on subordinated liabilities1
715
471
861
Accretion of discounts and amortisation of premiums and issue costs
(488)
195
1,259
Revaluation of investment properties
(99)
(67)
87
Net gain on sale of financial assets at fair value through other comprehensive income
(3)
(7)
(122)
Share of post-tax results of associates and joint ventures
(1)
13
16
Profit on derecognition of joint ventures and associates
(121)
–
–
Loss/(profit) on disposal of tangible fixed assets
65
(36)
(61)
Net credit in respect of defined benefit schemes
(37)
(11)
(79)
Depreciation and amortisation
3,477
3,426
2,905
Regulatory and legal provisions
968
899
675
Other provision movements
(29)
(206)
(30)
Allowance for loan losses
867
494
315
Write-off of allowance for loan losses, net of recoveries
(1,097)
(1,029)
(1,115)
Impairment credit on undrawn balances
(73)
(51)
–
Impairment credit on financial assets at fair value through other comprehensive income
(1)
(3)
(2)
Transactions in own shares
38
(173)
103
Transfers to income statement from reserves
1,869
2,597
1,838
Foreign exchange impact on balance sheet2
709
1
502
Other non-cash items
91
42
176
Total non-cash items
6,850
6,555
7,328
Contributions to defined benefit schemes
(152)
(175)
(1,345)
Payments in respect of regulatory and legal provisions
(295)
(401)
(378)
Other
28
11
17
Total other items
(419)
(565)
(1,706)
Non-cash and other items
6,431
5,990
5,622
1Interest expense on subordinated liabilities and hedging valuation adjustments on subordinated debt, previously presented separately, are reported in aggregate.
2When considering the movement on each line of the balance sheet, the impact of foreign exchange rate movements is removed in order to show the underlying cash impact.
Schedule of Acquisition of Group Undertakings and Businesses
2025
£m
2024
£m
2023
£m
Net assets acquired:
Cash and cash equivalents
144
–
38
Tangible fixed assets
2
–
–
Intangible assets (excluding goodwill)
296
–
182
Other assets
152
–
672
Deferred tax
(74)
–
(58)
Other liabilities
(166)
–
(646)
Goodwill arising on acquisition
262
–
143
Non cash consideration
(616)
–
–
Cash consideration
–
–
331
Less cash and cash equivalents acquired
(144)
–
(38)
Net cash (inflow)/outflow arising from acquisition of subsidiaries and businesses
(144)
–
293
Acquisition of and additional investment in joint ventures
117
179
87
Net cash (inflow)/outflow from acquisitions in the year
(27)
179
380
Schedule of Analysis of Cash and Cash Equivalents as Shown in the Balance Sheet
2025
£m
2024
£m
2023
£m
Cash and balances at central banks
56,661
62,705
78,110
Less mandatory reserve deposits1
(37)
(21)
(1,930)
56,624
62,684
76,180
Loans and advances to banks and reverse repurchase agreements with banks
17,006
15,175
19,048
Less amounts with a maturity of three months or more
(13,037)
(7,043)
(6,390)
3,969
8,132
12,658
Total cash and cash equivalents2
60,593
70,816
88,838
1Mandatory reserve deposits are held with local central banks in accordance with statutory requirements. Where these deposits are not held in demand accounts and are not available
to finance the Group’s day-to-day operations they are excluded from cash and cash equivalents.
2Included within cash and cash equivalents at 31 December 2025 is £16 million (2024: £23 million; 2023: £31 million) of restricted cash and cash equivalents held within the Group’s
long-term insurance and investments operations, which is not immediately available for use in the business.