HIGHLIGHTS FOR THE THREE MONTHS ENDED 31 MARCH 2021
Solid financial performance reflects business momentum and improved economic outlook
•Statutory profit after tax of £1,397 million supported by business momentum and a release of expected credit loss provisions, given the improved economic outlook. Statutory return on tangible equity of 13.9 per cent with tangible net assets per share of 52.4 pence
•Recovering trading surplus of £1,748 million, a reduction of 12 per cent compared to the first three months of 2020, but an increase of 21 per cent on the final quarter of 2020
- Net income of £3.7 billion, down 7 per cent year on year (up 2 per cent on the previous quarter), with higher average interest-earning assets of £439 billion, net interest margin of 2.49 per cent and other income of £1.1 billion
- Total costs of £1.9 billion down 2 per cent, driven by continued operating cost control and lower remediation costs
•Asset quality remains strong with credit experience benign. Net impairment credit of £323 million in the quarter, driven by a £459 million release given the UK's improved economic outlook. Management judgements in respect of coronavirus
retained, now c.£1 billion including the £400 million central overlay taken in the fourth quarter
Balance sheet and capital strength further enhanced
•Capital build of 54 basis points in the quarter with CET1 ratio of 16.7 per cent, significantly ahead of the ongoing target of c.12.5 per cent, plus a management buffer of c.1 per cent and regulatory requirements of c.11 per cent
•Loans and advances up £3.3 billion in the quarter to £443.5 billion, including £6.0 billion open mortgage book growth
•Customer deposits up £11.7 billion in the quarter to £462.4 billion with Retail current accounts up £5.6 billion
•Loan to deposit ratio of 96 per cent provides a strong liquidity position and significant potential to lend into recovery
Outlook
•Given the solid financial performance in the first quarter of 2021, the Group is enhancing its guidance for 2021. Based on the Group's current economic assumptions:
-Net interest margin now expected to be in excess of 245 basis points
-Operating costs to reduce to c.£7.5 billion
-Net asset quality ratio now expected to be below 25 basis points
-Risk-weighted assets in 2021 to be broadly stable on 2020
-Statutory return on tangible equity now expected to be between 8 and 10 per cent, excluding c.2.5 percentage point benefit from tax rate changes
-Accruing dividends with intention to resume progressive and sustainable ordinary dividend policy
| ||
Quarter
ended
31 Mar 2021
|
Quarter
ended
31 Mar 2020
|
Change
|
Quarter
ended
31 Dec 2020
|
Change
| |||||||||||||
£m
|
£m
|
%
|
£m
|
%
| |||||||||||||
Net interest income
|
2,677
|
2,950
|
(9)
|
2,677
|
-
| ||||||||||||
Other income
|
1,135
|
1,226
|
(7)
|
1,066
|
6
| ||||||||||||
Operating lease depreciation
|
(148)
|
(224)
|
34
|
(150)
|
1
| ||||||||||||
Net income
|
3,664
|
3,952
|
(7)
|
3,593
|
2
| ||||||||||||
Operating costs
|
(1,851)
|
(1,877)
|
1
|
(2,028)
|
9
| ||||||||||||
Remediation
|
(65)
|
(87)
|
25
|
(125)
|
48
| ||||||||||||
Total costs
|
(1,916)
|
(1,964)
|
2
|
(2,153)
|
11
| ||||||||||||
Trading surplus
|
1,748
|
1,988
|
(12)
|
1,440
|
21
| ||||||||||||
Impairment
|
323
|
(1,430)
|
(128)
| ||||||||||||||
Underlying profit
|
2,071
|
558
|
1,312
|
58
| |||||||||||||
Restructuring
|
(173)
|
(63)
|
(233)
|
26
| |||||||||||||
Volatility and other items
|
-
|
(421)
|
(202)
| ||||||||||||||
Payment protection insurance provision
|
-
|
-
|
(85)
| ||||||||||||||
Statutory profit before tax
|
1,898
|
74
|
792
| ||||||||||||||
Tax (expense) credit
|
(501)
|
406
|
(112)
| ||||||||||||||
Statutory profit after tax
|
1,397
|
480
|
680
| ||||||||||||||
Earnings per share
|
1.8p
|
0.5p
|
0.7p
| ||||||||||||||
Banking net interest margin
|
2.49%
|
2.79%
|
(30)bp
|
2.46%
|
3bp
| ||||||||||||
Average interest-earning banking assets
|
£439bn
|
£432bn
|
2
|
£437bn
|
1
| ||||||||||||
Cost:income ratio
|
52.3%
|
49.7%
|
2.6pp
|
59.9%
|
(7.6)pp
| ||||||||||||
Asset quality ratio
|
(0.29)%
|
1.30%
|
(159)bp
|
0.11%
|
(40)bp
| ||||||||||||
Return on tangible equity
|
13.9%
|
3.7%
|
10.2pp
|
5.9%
|
8.0pp
|
At 31 Mar
2021
|
At 31 Mar
2020
|
Change
%
|
At 31 Dec
2020
|
Change
%
| |||||||
Loans and advances to customers1
|
£444bn
|
£443bn
|
-
|
£440bn
|
1
| ||||||
Customer deposits2
|
£462bn
|
£428bn
|
8
|
£451bn
|
3
| ||||||
Loan to deposit ratio
|
96%
|
103%
|
(7)pp
|
98%
|
(2)pp
| ||||||
CET1 ratio3
|
16.7%
|
14.2%
|
2.5pp
|
16.2%
|
0.5pp
| ||||||
CET1 ratio pre IFRS 9 transitional relief3,4
|
15.8%
|
13.9%
|
1.9pp
|
15.0%
|
0.8pp
| ||||||
Transitional MREL ratio3
|
36.1%
|
34.5%
|
1.6pp
|
36.4%
|
(0.3)pp
| ||||||
UK leverage ratio3
|
6.0%
|
5.3%
|
0.7pp
|
5.8%
|
0.2pp
| ||||||
Risk-weighted assets
|
£199bn
|
£209bn
|
(5)
|
£203bn
|
(2)
| ||||||
Wholesale funding
|
£106bn
|
£126bn
|
(16)
|
£109bn
|
(4)
| ||||||
Liquidity coverage ratio (12 month average)
|
134%
|
138%
|
(4)pp
|
136%
|
(2)pp
| ||||||
Tangible net assets per share
|
52.4p
|
57.4p
|
(5.0)p
|
52.3p
|
0.1p
|
Quarter
ended
31 Mar 2021
|
Quarter
ended
31 Dec2020
|
Quarter
ended
30 Sep2020
|
Quarter
ended
30 Jun2020
|
Quarter
ended
31 Mar 2020
| |||||||||||||||
£m
|
£m
|
£m
|
£m
|
£m
| |||||||||||||||
Net interest income
|
2,677
|
2,677
|
2,618
|
2,528
|
2,950
| ||||||||||||||
Other income
|
1,135
|
1,066
|
988
|
1,235
|
1,226
| ||||||||||||||
Operating lease depreciation
|
(148)
|
(150)
|
(208)
|
(302)
|
(224)
| ||||||||||||||
Net income
|
3,664
|
3,593
|
3,398
|
3,461
|
3,952
| ||||||||||||||
Operating costs
|
(1,851)
|
(2,028)
|
(1,858)
|
(1,822)
|
(1,877)
| ||||||||||||||
Remediation
|
(65)
|
(125)
|
(77)
|
(90)
|
(87)
| ||||||||||||||
Total costs
|
(1,916)
|
(2,153)
|
(1,935)
|
(1,912)
|
(1,964)
| ||||||||||||||
Trading surplus
|
1,748
|
1,440
|
1,463
|
1,549
|
1,988
| ||||||||||||||
Impairment
|
323
|
(128)
|
(301)
|
(2,388)
|
(1,430)
| ||||||||||||||
Underlying profit (loss)
|
2,071
|
1,312
|
1,162
|
(839)
|
558
| ||||||||||||||
Restructuring
|
(173)
|
(233)
|
(155)
|
(70)
|
(63)
| ||||||||||||||
Volatility and other items
|
-
|
(202)
|
29
|
233
|
(421)
| ||||||||||||||
Payment protection insurance provision
|
-
|
(85)
|
-
|
-
|
-
| ||||||||||||||
Statutory profit (loss) before tax
|
1,898
|
792
|
1,036
|
(676)
|
74
| ||||||||||||||
Tax (expense) credit
|
(501)
|
(112)
|
(348)
|
215
|
406
| ||||||||||||||
Statutory profit (loss) after tax
|
1,397
|
680
|
688
|
(461)
|
480
| ||||||||||||||
Banking net interest margin
|
2.49%
|
2.46%
|
2.42%
|
2.40%
|
2.79%
| ||||||||||||||
Average interest-earning banking assets
|
£439bn
|
£437bn
|
£436bn
|
£435bn
|
£432bn
| ||||||||||||||
Cost:income ratio
|
52.3%
|
59.9%
|
56.9%
|
55.2%
|
49.7%
| ||||||||||||||
Asset quality ratio
|
(0.29)%
|
0.11%
|
0.27%
|
2.16%
|
1.30%
| ||||||||||||||
Gross asset quality ratio
|
(0.18)%
|
0.16%
|
0.28%
|
2.19%
|
1.35%
| ||||||||||||||
Return on tangible equity1
|
13.9%
|
5.9%
|
6.0%
|
(6.1)%
|
3.7%
| ||||||||||||||
Loans and advances to customers2
|
£444bn
|
£440bn
|
£439bn
|
£440bn
|
£443bn
| ||||||||||||||
Customer deposits3
|
£462bn
|
£451bn
|
£447bn
|
£441bn
|
£428bn
| ||||||||||||||
Loan to deposit ratio
|
96%
|
98%
|
98%
|
100%
|
103%
| ||||||||||||||
Risk-weighted assets
|
£199bn
|
£203bn
|
£205bn
|
£207bn
|
£209bn
| ||||||||||||||
Tangible net assets per share
|
52.4p
|
52.3p
|
52.2p
|
51.6p
|
57.4p
|
At 31 Mar 2021
|
At 31 Mar 2020
|
Change
|
At 31 Dec 2020
|
Change
| ||||||||||
£bn
|
£bn
|
%
|
£bn
|
%
| ||||||||||
Loans and advances to customers
| ||||||||||||||
Open mortgage book
|
283.3
|
268.1
|
6
|
277.3
|
2
| |||||||||
Closed mortgage book
|
15.9
|
17.9
|
(11)
|
16.5
|
(4)
| |||||||||
Credit cards
|
13.5
|
16.7
|
(19)
|
14.3
|
(6)
| |||||||||
UK Retail unsecured loans
|
7.8
|
8.6
|
(9)
|
8.0
|
(3)
| |||||||||
UK Motor Finance
|
14.9
|
15.8
|
(6)
|
14.7
|
1
| |||||||||
Overdrafts
|
0.9
|
1.2
|
(25)
|
0.9
|
-
| |||||||||
Retail other1
|
10.3
|
9.3
|
11
|
10.4
|
(1)
| |||||||||
SME2
|
41.1
|
32.0
|
28
|
40.6
|
1
| |||||||||
Mid Corporates
|
4.0
|
4.7
|
(15)
|
4.1
|
(2)
| |||||||||
Corporate and Institutional
|
45.6
|
60.9
|
(25)
|
46.0
|
(1)
| |||||||||
Commercial Banking other
|
4.1
|
4.9
|
(16)
|
4.3
|
(5)
| |||||||||
Wealth
|
1.0
|
0.9
|
11
|
0.9
|
11
| |||||||||
Central items
|
1.1
|
2.1
|
(48)
|
2.2
|
(50)
| |||||||||
Loans and advances to customers3
|
443.5
|
443.1
|
-
|
440.2
|
1
| |||||||||
Customer deposits
| ||||||||||||||
Retail current accounts
|
103.0
|
79.9
|
29
|
97.4
|
6
| |||||||||
Commercial current accounts2,4
|
47.2
|
34.5
|
37
|
47.6
|
(1)
| |||||||||
Retail relationship savings accounts
|
158.2
|
144.1
|
10
|
154.1
|
3
| |||||||||
Retail tactical savings accounts
|
13.8
|
12.7
|
9
|
14.0
|
(1)
| |||||||||
Commercial deposits2,5
|
125.5
|
142.5
|
(12)
|
122.7
|
2
| |||||||||
Wealth
|
14.1
|
13.3
|
6
|
14.1
|
-
| |||||||||
Central items
|
0.6
|
1.4
|
(57)
|
0.8
|
(25)
| |||||||||
Total customer deposits6
|
462.4
|
428.4
|
8
|
450.7
|
3
| |||||||||
Total assets
|
869.5
|
861.7
|
1
|
871.3
|
-
| |||||||||
Total liabilities
|
820.0
|
809.0
|
1
|
821.9
|
-
| |||||||||
Ordinary shareholders' equity
|
43.4
|
46.6
|
(7)
|
43.3
|
-
| |||||||||
Other equity instruments
|
5.9
|
5.9
|
-
|
5.9
|
-
| |||||||||
Non-controlling interests
|
0.2
|
0.2
|
-
|
0.2
|
-
| |||||||||
Total equity
|
49.5
|
52.7
|
(6)
|
49.4
|
-
| |||||||||
Ordinary shares in issue, excluding own shares
|
70,936m
|
70,411m
|
1
|
70,812m
|
-
|
Quarter
ended
31 Mar 2021
|
Quarter
ended
31 Mar 2020
|
Change
|
Quarter
ended
31 Dec 2020
|
Change
| |||||||||||||
£m
|
£m
|
%
|
£m
|
%
| |||||||||||||
Charges pre-updated multiple economic scenarios1
| |||||||||||||||||
Retail
|
321
|
325
|
1
|
383
|
16
| ||||||||||||
Commercial Banking
|
(111)
|
52
|
41
| ||||||||||||||
Other
|
(1)
|
(9)
|
89
|
(6)
|
83
| ||||||||||||
209
|
368
|
43
|
418
|
50
| |||||||||||||
Coronavirus impacted restructuring cases2
|
(73)
|
218
|
(31)
| ||||||||||||||
Updated economic outlook:
| |||||||||||||||||
Retail
|
(240)
|
564
|
(417)
|
42
| |||||||||||||
Commercial Banking
|
(219)
|
280
|
(42)
| ||||||||||||||
Other
|
-
|
-
|
200
| ||||||||||||||
(459)
|
844
|
(259)
|
(77)
| ||||||||||||||
Impairment (credit) charge
|
(323)
|
1,430
|
128
| ||||||||||||||
Asset quality ratio
|
(0.29)%
|
1.30%
|
(159)bp
|
0.11%
|
(40)bp
| ||||||||||||
Gross asset quality ratio
|
(0.18)%
|
1.35%
|
(153)bp
|
0.16%
|
(34)bp
|
At 31 Mar
20211
|
At 31 Dec
20201
|
Change
| ||||||
£m
|
£m
|
%
| ||||||
Stage 2 gross loans and advances to customers
|
53,626
|
60,514
|
(11)
| |||||
Stage 2 loans and advances to customers as % of total
|
10.7% |
12.0% |
(1.3)pp
| |||||
Stage 2 ECL allowances2
|
2,384
|
2,727
|
(13)
| |||||
Stage 2 ECL allowances2 as % of Stage 2 drawn balances
|
4.4% |
4.5% |
(0.1)pp
| |||||
Stage 3 gross loans and advances to customers
|
8,970
|
9,089
|
(1)
| |||||
Stage 3 loans and advances to customers as a % of total
|
1.8% |
1.8% |
-
| |||||
Stage 3 ECL allowances2
|
2,348
|
2,508
|
(6)
| |||||
Stage 3 ECL allowances2 as % of Stage 3 drawn balances3
|
27.1% |
28.6% |
(1.5)pp
| |||||
Total loans and advances to customers4
|
502,055
|
505,129
|
(1)
| |||||
Total ECL allowance2
|
6,194
|
6,832
|
(9)
| |||||
Total ECL allowances2 as % of drawn balances3
|
1.2% |
1.4% |
(0.2)pp
|
Quarter
ended
31 Mar 2021
|
Quarter
ended
31 Mar 2020
| ||||||
Group net interest income - statutory basis (£m)
|
2,266
|
5,185
| |||||
Insurance gross up (£m)
|
352
|
(2,265)
| |||||
Volatility and other items (£m)
|
59
|
30
| |||||
Group net interest income - underlying basis (£m)
|
2,677
|
2,950
| |||||
Non-banking net interest expense (£m)
|
26
|
44
| |||||
Banking net interest income - underlying basis (£m)
|
2,703
|
2,994
| |||||
Net loans and advances to customers (£bn)1
|
443.5
|
443.1
| |||||
Impairment provision and fair value adjustments (£bn)
|
5.7
|
4.8
| |||||
Non-banking items:
| |||||||
Fee-based loans and advances (£bn)
|
(4.9)
|
(7.6)
| |||||
Other non-banking (£bn)
|
(1.8)
|
(3.1)
| |||||
Gross banking loans and advances (£bn)
|
442.5
|
437.2
| |||||
Averaging (£bn)
|
(3.1)
|
(5.6)
| |||||
Average interest-earning banking assets (£bn)
|
439.4
|
431.6
| |||||
Banking net interest margin (%)
|
2.49
|
2.79
|
Quarter
ended
31 Mar 2021
|
Quarter
ended
31 Mar 2020
| ||||||
Average ordinary shareholders' equity (£bn)
|
43.3
|
44.1
| |||||
Average intangible assets (£bn)
|
(6.2)
|
(6.1)
| |||||
Average tangible equity (£bn)
|
37.1
|
38.0
| |||||
Group statutory profit after tax (£m)
|
1,397
|
480
| |||||
Less profit attributable to non-controlling interests and other equity holders (£m)
|
(122)
|
(132)
| |||||
Adjusted statutory profit after tax (£m)1
|
1,275
|
348
| |||||
Return on tangible equity (%)1
|
13.9
|
3.7
|
Quarter
ended
31 Mar 2021
|
Quarter
ended
31 Mar 2020
|
Change
|
Quarter
ended
31 Dec2020
|
Change
| |||||||||||||
£m
|
£m
|
%
|
£m
|
%
| |||||||||||||
UK Mortgages
|
(72)
|
160
|
(146)
|
51
| |||||||||||||
Credit cards
|
28
|
349
|
92
|
8
| |||||||||||||
Loans and overdrafts
|
108
|
225
|
52
|
146
|
26
| ||||||||||||
UK Motor Finance
|
11
|
76
|
86
|
(42)
| |||||||||||||
Other
|
6
|
79
|
92
|
-
| |||||||||||||
Retail
|
81
|
889
|
(34)
| ||||||||||||||
Commercial Banking
|
(403)
|
550
|
(32)
| ||||||||||||||
Insurance and Wealth
|
-
|
1
|
(2)
| ||||||||||||||
Central Items
|
(1)
|
(10)
|
90
|
196
| |||||||||||||
Total impairment charge
|
(323)
|
1,430
|
128
|
ECL at
31 Mar2021
|
Net ECL
increase/(decrease)
|
Write-offs
and other
|
Income
statement
charge
|
ECL at
31 Dec2020
| |||||||||||||||
£m
|
£m
|
£m
|
£m
|
£m
| |||||||||||||||
UK Mortgages
|
1,518
|
(87)
|
(15)
|
(72)
|
1,605
| ||||||||||||||
Credit cards
|
894
|
(64)
|
(92)
|
28
|
958
| ||||||||||||||
Loans and overdrafts
|
707
|
(8)
|
(116)
|
108
|
715
| ||||||||||||||
UK Motor Finance
|
503
|
2
|
(9)
|
11
|
501
| ||||||||||||||
Other
|
221
|
(8)
|
(14)
|
6
|
229
| ||||||||||||||
Retail
|
3,843
|
(165)
|
(246)
|
81
|
4,008
| ||||||||||||||
Commercial Banking
|
1,932
|
(470)
|
(67)
|
(403)
|
2,402
| ||||||||||||||
Other
|
451
|
1
|
2
|
(1)
|
450
| ||||||||||||||
Total1
|
6,226
|
(634)
|
(311)
|
(323)
|
6,860
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
Stage 2
as % of
total
|
Stage 3
as % of
total
| ||||||||||||||||||
At 31 March 2021
|
£m
|
£m
|
£m
|
£m
| |||||||||||||||||||
Loans and advances to customers
| |||||||||||||||||||||||
UK Mortgages
|
260,458
|
35,838
|
4,428
|
300,724
|
11.9
|
1.5
| |||||||||||||||||
Credit cards
|
10,632
|
3,189
|
352
|
14,173
|
22.5
|
2.5
| |||||||||||||||||
Loans and overdrafts
|
7,652
|
1,439
|
324
|
9,415
|
15.3
|
3.4
| |||||||||||||||||
UK Motor Finance
|
12,947
|
2,256
|
232
|
15,435
|
14.6
|
1.5
| |||||||||||||||||
Other
|
18,170
|
1,218
|
182
|
19,570
|
6.2
|
0.9
| |||||||||||||||||
Retail1
|
309,859
|
43,940
|
5,518
|
359,317
|
12.2
|
1.5
| |||||||||||||||||
SME
|
28,063
|
3,322
|
860
|
32,245
|
10.3
|
2.7
| |||||||||||||||||
Other
|
46,297
|
6,331
|
2,526
|
55,154
|
11.5
|
4.6
| |||||||||||||||||
Commercial Banking
|
74,360
|
9,653
|
3,386
|
87,399
|
11.0
|
3.9
| |||||||||||||||||
Insurance and Wealth
|
856
|
33
|
59
|
948
|
3.5
|
6.2
| |||||||||||||||||
Central items2
|
54,384
|
-
|
7
|
54,391
|
-
|
-
| |||||||||||||||||
Total gross lending
|
439,459
|
53,626
|
8,970
|
502,055
|
10.7
|
1.8
| |||||||||||||||||
ECL allowance on drawn balances
|
(1,273)
|
(2,186)
|
(2,340)
|
(5,799)
| |||||||||||||||||||
Net balance sheet carrying value
|
438,186
|
51,440
|
6,630
|
496,256
| |||||||||||||||||||
Group ECL allowance (drawn and undrawn)
| |||||||||||||||||||||||
UK Mortgages
|
100
|
751
|
667
|
1,518
|
49.5
|
43.9
| |||||||||||||||||
Credit cards
|
190
|
532
|
172
|
894
|
59.5
|
19.2
| |||||||||||||||||
Loans and overdrafts
|
210
|
334
|
163
|
707
|
47.2
|
23.1
| |||||||||||||||||
UK Motor Finance3
|
177
|
171
|
155
|
503
|
34.0
|
30.8
| |||||||||||||||||
Other
|
51
|
117
|
53
|
221
|
52.9
|
24.0
| |||||||||||||||||
Retail1
|
728
|
1,905
|
1,210
|
3,843
|
49.6
|
31.5
| |||||||||||||||||
SME
|
130
|
162
|
123
|
415
|
39.0
|
29.6
| |||||||||||||||||
Other
|
193
|
316
|
999
|
1,508
|
21.0
|
66.2
| |||||||||||||||||
Commercial Banking
|
323
|
478
|
1,122
|
1,923
|
24.9
|
58.3
| |||||||||||||||||
Insurance and Wealth
|
11
|
1
|
10
|
22
|
4.5
|
45.5
| |||||||||||||||||
Central items
|
400
|
-
|
6
|
406
|
-
|
1.5
| |||||||||||||||||
Total ECL allowance (drawn and undrawn)
|
1,462
|
2,384
|
2,348
|
6,194
|
38.5
|
37.9
| |||||||||||||||||
Group ECL allowances (drawn and undrawn) as a % of loans and advances to customers4
| |||||||||||||||||||||||
UK Mortgages
|
-
|
2.1
|
15.1
|
0.5
| |||||||||||||||||||
Credit cards
|
1.8
|
16.7
|
59.7
|
6.3
| |||||||||||||||||||
Loans and overdrafts
|
2.7
|
23.2
|
64.7
|
7.6
| |||||||||||||||||||
UK Motor Finance
|
1.4
|
7.6
|
66.8
|
3.3
| |||||||||||||||||||
Other
|
0.3
|
9.6
|
40.2
|
1.1
| |||||||||||||||||||
Retail1
|
0.2
|
4.3
|
22.7
|
1.1
| |||||||||||||||||||
SME
|
0.5
|
4.9
|
16.8
|
1.3
| |||||||||||||||||||
Other
|
0.4
|
5.0
|
39.6
|
2.7
| |||||||||||||||||||
Commercial Banking
|
0.4
|
5.0
|
34.5
|
2.2
| |||||||||||||||||||
Insurance and Wealth
|
1.3
|
3.0
|
16.9
|
2.3
| |||||||||||||||||||
Central items
|
0.7
|
-
|
85.7
|
0.7
| |||||||||||||||||||
Total ECL allowances (drawn and undrawn) as a % of loans and advances to customers
|
0.3
|
4.4
|
27.1
|
1.2
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
Stage 2
as % of
total
|
Stage 3
as % of
total
| ||||||||||||||||||
At 31 December 2020
|
£m
|
£m
|
£m
|
£m
| |||||||||||||||||||
Loans and advances to customers
| |||||||||||||||||||||||
UK Mortgages
|
253,043
|
37,882
|
4,459
|
295,384
|
12.8
|
1.5
| |||||||||||||||||
Credit cards
|
11,454
|
3,264
|
339
|
15,057
|
21.7
|
2.3
| |||||||||||||||||
Loans and overdrafts
|
7,710
|
1,519
|
307
|
9,536
|
15.9
|
3.2
| |||||||||||||||||
UK Motor Finance
|
12,786
|
2,216
|
199
|
15,201
|
14.6
|
1.3
| |||||||||||||||||
Other
|
17,879
|
1,304
|
184
|
19,367
|
6.7
|
1.0
| |||||||||||||||||
Retail1
|
302,872
|
46,185
|
5,488
|
354,545
|
13.0
|
1.5
| |||||||||||||||||
SME
|
27,015
|
4,500
|
791
|
32,306
|
13.9
|
2.4
| |||||||||||||||||
Other
|
43,543
|
9,816
|
2,733
|
56,092
|
17.5
|
4.9
| |||||||||||||||||
Commercial Banking
|
70,558
|
14,316
|
3,524
|
88,398
|
16.2
|
4.0
| |||||||||||||||||
Insurance and Wealth
|
832
|
13
|
70
|
915
|
1.4
|
7.7
| |||||||||||||||||
Central items2
|
61,264
|
-
|
7
|
61,271
|
-
|
-
| |||||||||||||||||
Total gross lending
|
435,526
|
60,514
|
9,089
|
505,129
|
12.0
|
1.8
| |||||||||||||||||
ECL allowance on drawn balances
|
(1,385)
|
(2,493)
|
(2,495)
|
(6,373)
| |||||||||||||||||||
Net balance sheet carrying value
|
434,141
|
58,021
|
6,594
|
498,756
| |||||||||||||||||||
Group ECL allowance (drawn and undrawn)
| |||||||||||||||||||||||
UK Mortgages
|
110
|
798
|
697
|
1,605
|
49.7
|
43.4
| |||||||||||||||||
Credit cards
|
250
|
548
|
160
|
958
|
57.2
|
16.7
| |||||||||||||||||
Loans and overdrafts
|
224
|
344
|
147
|
715
|
48.1
|
20.6
| |||||||||||||||||
UK Motor Finance3
|
197
|
171
|
133
|
501
|
34.1
|
26.5
| |||||||||||||||||
Other
|
46
|
124
|
59
|
229
|
54.1
|
25.8
| |||||||||||||||||
Retail1
|
827
|
1,985
|
1,196
|
4,008
|
49.5
|
29.8
| |||||||||||||||||
SME
|
142
|
234
|
126
|
502
|
46.6
|
25.1
| |||||||||||||||||
Other
|
217
|
507
|
1,169
|
1,893
|
26.8
|
61.8
| |||||||||||||||||
Commercial Banking
|
359
|
741
|
1,295
|
2,395
|
30.9
|
54.1
| |||||||||||||||||
Insurance and Wealth
|
11
|
1
|
11
|
23
|
4.3
|
47.8
| |||||||||||||||||
Central items
|
400
|
-
|
6
|
406
|
-
|
1.5
| |||||||||||||||||
Total ECL allowance (drawn and undrawn)
|
1,597
|
2,727
|
2,508
|
6,832
|
39.9
|
36.7
| |||||||||||||||||
Group ECL allowances (drawn and undrawn) as a % of loans and advances to customers4
| |||||||||||||||||||||||
UK Mortgages
|
-
|
2.1
|
15.6
|
0.5
| |||||||||||||||||||
Credit cards
|
2.2
|
16.8
|
58.8
|
6.4
| |||||||||||||||||||
Loans and overdrafts
|
2.9
|
22.6
|
64.2
|
7.6
| |||||||||||||||||||
UK Motor Finance
|
1.5
|
7.7
|
66.8
|
3.3
| |||||||||||||||||||
Other
|
0.3
|
9.5
|
39.3
|
1.2
| |||||||||||||||||||
Retail1
|
0.3
|
4.3
|
22.5
|
1.1
| |||||||||||||||||||
SME
|
0.5
|
5.2
|
19.1
|
1.6
| |||||||||||||||||||
Other
|
0.5
|
5.2
|
42.9
|
3.4
| |||||||||||||||||||
Commercial Banking
|
0.5
|
5.2
|
38.2
|
2.7
| |||||||||||||||||||
Insurance and Wealth
|
1.3
|
7.7
|
15.7
|
2.5
| |||||||||||||||||||
Central items
|
0.7
|
-
|
85.7
|
0.7
| |||||||||||||||||||
Total ECL allowances (drawn and undrawn) as a % of loans and advances to customers
|
0.4
|
4.5
|
28.6
|
1.4
|
Up to date
|
1-30 days
past due2
|
Over 30 days past due
|
Total
| ||||||||||||||||||||||||||
PD movements
|
Other1
| ||||||||||||||||||||||||||||
Gross
lending
|
ECL3
|
Gross
lending
|
ECL3
|
Gross
lending
|
ECL3
|
Gross
lending
|
ECL3
|
Gross
lending
|
ECL3
| ||||||||||||||||||||
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
| ||||||||||||||||||||
At 31 March 2021
| |||||||||||||||||||||||||||||
UK Mortgages
|
25,319
|
317
|
4,172
|
179
|
3,163
|
92
|
3,184
|
163
|
35,838
|
751
| |||||||||||||||||||
Credit cards
|
2,897
|
417
|
189
|
76
|
75
|
24
|
28
|
15
|
3,189
|
532
| |||||||||||||||||||
Loans and overdrafts
|
904
|
202
|
366
|
63
|
131
|
49
|
38
|
20
|
1,439
|
334
| |||||||||||||||||||
UK Motor Finance
|
765
|
62
|
1,324
|
55
|
128
|
36
|
39
|
18
|
2,256
|
171
| |||||||||||||||||||
Other
|
473
|
67
|
589
|
34
|
69
|
9
|
87
|
7
|
1,218
|
117
| |||||||||||||||||||
Retail
|
30,358
|
1,065
|
6,640
|
407
|
3,566
|
210
|
3,376
|
223
|
43,940
|
1,905
| |||||||||||||||||||
SME
|
3,026
|
148
|
208
|
8
|
35
|
3
|
53
|
3
|
3,322
|
162
| |||||||||||||||||||
Other
|
6,055
|
307
|
100
|
3
|
60
|
6
|
116
|
-
|
6,331
|
316
| |||||||||||||||||||
Commercial Banking
|
9,081
|
455
|
308
|
11
|
95
|
9
|
169
|
3
|
9,653
|
478
| |||||||||||||||||||
Insurance and Wealth
|
19
|
-
|
11
|
1
|
2
|
-
|
1
|
-
|
33
|
1
| |||||||||||||||||||
Central items
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
| |||||||||||||||||||
Total
|
39,458
|
1,520
|
6,959
|
419
|
3,663
|
219
|
3,546
|
226
|
53,626
|
2,384
| |||||||||||||||||||
At 31 December 2020
| |||||||||||||||||||||||||||||
UK Mortgages
|
28,049
|
354
|
4,067
|
189
|
2,663
|
82
|
3,103
|
173
|
37,882
|
798
| |||||||||||||||||||
Credit cards
|
2,916
|
422
|
220
|
78
|
92
|
28
|
36
|
20
|
3,264
|
548
| |||||||||||||||||||
Loans and overdrafts
|
959
|
209
|
388
|
68
|
126
|
45
|
46
|
22
|
1,519
|
344
| |||||||||||||||||||
UK Motor Finance
|
724
|
62
|
1,321
|
55
|
132
|
37
|
39
|
17
|
2,216
|
171
| |||||||||||||||||||
Other
|
512
|
56
|
651
|
44
|
69
|
14
|
72
|
10
|
1,304
|
124
| |||||||||||||||||||
Retail
|
33,160
|
1,103
|
6,647
|
434
|
3,082
|
206
|
3,296
|
242
|
46,185
|
1,985
| |||||||||||||||||||
SME
|
4,229
|
219
|
150
|
6
|
40
|
5
|
81
|
4
|
4,500
|
234
| |||||||||||||||||||
Other
|
9,505
|
501
|
97
|
3
|
37
|
2
|
177
|
1
|
9,816
|
507
| |||||||||||||||||||
Commercial Banking
|
13,734
|
720
|
247
|
9
|
77
|
7
|
258
|
5
|
14,316
|
741
| |||||||||||||||||||
Insurance and Wealth
|
1
|
-
|
12
|
1
|
-
|
-
|
-
|
-
|
13
|
1
| |||||||||||||||||||
Central items
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
| |||||||||||||||||||
Total
|
46,895
|
1,823
|
6,906
|
444
|
3,159
|
213
|
3,554
|
247
|
60,514
|
2,727
|
First
quarter
2021
|
Second
quarter
2021
|
Third
quarter
2021
|
Fourth
quarter
2021
|
First
quarter
2022
|
Second
quarter
2022
|
Third
quarter
2022
|
Fourth
quarter
2022
| |||||||||
%
|
%
|
%
|
%
|
%
|
%
|
%
|
%
| |||||||||
Gross domestic product
|
(1.6)
|
3.7
|
1.5
|
1.2
|
1.4
|
0.9
|
0.5
|
0.4
| ||||||||
UK Bank Rate
|
0.10
|
0.10
|
0.10
|
0.10
|
0.10
|
0.10
|
0.10
|
0.10
| ||||||||
Unemployment rate
|
5.2
|
5.6
|
6.2
|
7.0
|
6.7
|
6.3
|
6.0
|
5.7
| ||||||||
House price growth
|
4.9
|
6.1
|
0.7
|
(0.8)
|
(0.8)
|
(1.1)
|
(0.4)
|
0.5
| ||||||||
Commercial real estate price growth
|
(4.5)
|
(1.0)
|
(1.0)
|
(1.8)
|
(0.8)
|
(0.2)
|
1.2
|
1.9
|
At 31 March 2021
|
2021
|
2022
|
2023
|
2024
|
2025
|
2021-2025
| ||||||
%
|
%
|
%
|
%
|
%
|
%
| |||||||
Upside
| ||||||||||||
Gross domestic product
|
5.7
|
4.6
|
1.4
|
1.3
|
1.2
|
2.8
| ||||||
UK Bank Rate
|
0.81
|
1.19
|
0.98
|
1.20
|
1.43
|
1.12
| ||||||
Unemployment rate
|
4.9
|
4.9
|
4.4
|
4.2
|
4.1
|
4.5
| ||||||
House price growth
|
0.8
|
4.0
|
6.0
|
4.3
|
3.6
|
3.7
| ||||||
Commercial real estate price growth
|
9.3
|
4.8
|
2.3
|
(0.4)
|
(0.4)
|
3.1
| ||||||
Base case
| ||||||||||||
Gross domestic product
|
5.0
|
5.0
|
1.6
|
1.3
|
1.3
|
2.8
| ||||||
UK Bank Rate
|
0.10
|
0.10
|
0.21
|
0.44
|
0.69
|
0.31
| ||||||
Unemployment rate
|
6.0
|
6.2
|
5.4
|
5.0
|
4.8
|
5.5
| ||||||
House price growth
|
(0.8)
|
0.5
|
2.2
|
1.7
|
1.7
|
1.1
| ||||||
Commercial real estate price growth
|
(1.8)
|
1.9
|
1.5
|
0.8
|
0.6
|
0.6
| ||||||
Downside
| ||||||||||||
Gross domestic product
|
4.5
|
4.2
|
1.4
|
1.1
|
1.3
|
2.5
| ||||||
UK Bank Rate
|
0.12
|
0.12
|
0.09
|
0.17
|
0.33
|
0.17
| ||||||
Unemployment rate
|
6.9
|
7.7
|
6.9
|
6.3
|
5.9
|
6.8
| ||||||
House price growth
|
(4.1)
|
(6.9)
|
(5.2)
|
(3.9)
|
(2.2)
|
(4.5)
| ||||||
Commercial real estate price growth
|
(9.0)
|
(4.0)
|
(0.6)
|
0.0
|
0.9
|
(2.6)
| ||||||
Severe downside
| ||||||||||||
Gross domestic product
|
2.8
|
3.4
|
1.1
|
1.3
|
1.4
|
2.0
| ||||||
UK Bank Rate
|
0.03
|
0.01
|
0.02
|
0.03
|
0.05
|
0.03
| ||||||
Unemployment rate
|
8.4
|
10.0
|
9.0
|
8.1
|
7.4
|
8.6
| ||||||
House price growth
|
(5.9)
|
(11.7)
|
(10.7)
|
(7.9)
|
(4.1)
|
(8.1)
| ||||||
Commercial real estate price growth
|
(19.8)
|
(11.3)
|
(4.7)
|
(1.0)
|
1.1
|
(7.5)
|
At 31 December 2020
|
2020
|
2021
|
2022
|
2023
|
2024
|
2020-2024
| ||||||
%
|
%
|
%
|
%
|
%
|
%
| |||||||
Upside
| ||||||||||||
Gross domestic product
|
(10.5)
|
3.7
|
5.7
|
1.7
|
1.5
|
0.3
| ||||||
UK Bank Rate
|
0.10
|
1.14
|
1.27
|
1.20
|
1.21
|
0.98
| ||||||
Unemployment rate
|
4.3
|
5.4
|
5.4
|
5.0
|
4.5
|
5.0
| ||||||
House price growth
|
6.3
|
(1.4)
|
5.2
|
6.0
|
5.0
|
4.2
| ||||||
Commercial real estate price growth
|
(4.6)
|
9.3
|
3.9
|
2.1
|
0.3
|
2.1
| ||||||
Base case
| ||||||||||||
Gross domestic product
|
(10.5)
|
3.0
|
6.0
|
1.7
|
1.4
|
0.1
| ||||||
UK Bank Rate
|
0.10
|
0.10
|
0.10
|
0.21
|
0.25
|
0.15
| ||||||
Unemployment rate
|
4.5
|
6.8
|
6.8
|
6.1
|
5.5
|
5.9
| ||||||
House price growth
|
5.9
|
(3.8)
|
0.5
|
1.5
|
1.5
|
1.1
| ||||||
Commercial real estate price growth
|
(7.0)
|
(1.7)
|
1.6
|
1.1
|
0.6
|
(1.1)
| ||||||
Downside
| ||||||||||||
Gross domestic product
|
(10.6)
|
1.7
|
5.1
|
1.4
|
1.4
|
(0.4)
| ||||||
UK Bank Rate
|
0.10
|
0.06
|
0.02
|
0.02
|
0.03
|
0.05
| ||||||
Unemployment rate
|
4.6
|
7.9
|
8.4
|
7.8
|
7.0
|
7.1
| ||||||
House price growth
|
5.6
|
(8.4)
|
(6.5)
|
(4.7)
|
(3.0)
|
(3.5)
| ||||||
Commercial real estate price growth
|
(8.7)
|
(10.6)
|
(3.2)
|
(0.8)
|
(0.8)
|
(4.9)
| ||||||
Severe downside
| ||||||||||||
Gross domestic product
|
(10.8)
|
0.3
|
4.8
|
1.3
|
1.2
|
(0.8)
| ||||||
UK Bank Rate
|
0.10
|
0.00
|
0.00
|
0.01
|
0.01
|
0.02
| ||||||
Unemployment rate
|
4.8
|
9.9
|
10.7
|
9.8
|
8.7
|
8.8
| ||||||
House price growth
|
5.3
|
(11.1)
|
(12.5)
|
(10.7)
|
(7.6)
|
(7.5)
| ||||||
Commercial real estate price growth
|
(11.0)
|
(21.4)
|
(9.8)
|
(3.9)
|
(0.8)
|
(9.7)
|
Probability-
weighted
|
Upside
|
Base case
|
Downside
|
Severe
downside
| |||||||||||||||
Underlying basis
|
£m
|
£m
|
£m
|
£m
|
£m
| ||||||||||||||
UK Mortgages
|
1,518
|
1,088
|
1,285
|
1,736
|
2,854
| ||||||||||||||
Other Retail
|
2,325
|
2,145
|
2,266
|
2,442
|
2,697
| ||||||||||||||
Commercial Banking
|
1,932
|
1,572
|
1,777
|
2,124
|
2,898
| ||||||||||||||
Other
|
451
|
451
|
451
|
451
|
451
| ||||||||||||||
At 31 March 2021
|
6,226
|
5,256
|
5,779
|
6,753
|
8,900
| ||||||||||||||
UK Mortgages
|
1,605
|
1,192
|
1,382
|
1,815
|
2,884
| ||||||||||||||
Other Retail
|
2,403
|
2,216
|
2,345
|
2,522
|
2,780
| ||||||||||||||
Commercial Banking
|
2,402
|
1,910
|
2,177
|
2,681
|
3,718
| ||||||||||||||
Other
|
450
|
448
|
450
|
450
|
456
| ||||||||||||||
At 31 December 2020
|
6,860
|
5,766
|
6,354
|
7,468
|
9,838
|
At 31 March 2021
|
At 31 December 2020
| ||||||||||||||||||||
Drawn
|
Undrawn
|
Drawn and undrawn
|
Drawn as a % of Group loans and advances
|
Drawn
|
Undrawn
|
Drawn and undrawn
|
Drawn as a % of Group loans and advances
| ||||||||||||||
£bn
|
£bn
|
£bn
|
%
|
£bn
|
£bn
|
£bn
|
%
| ||||||||||||||
Retail non-food
|
2.1
|
1.6
|
3.7
|
0.4
|
2.1
|
1.7
|
3.8
|
0.4
| |||||||||||||
Automotive dealerships2
|
2.0
|
1.7
|
3.7
|
0.4
|
1.8
|
2.0
|
3.8
|
0.4
| |||||||||||||
Oil and gas
|
1.1
|
2.5
|
3.6
|
0.2
|
1.1
|
2.7
|
3.8
|
0.2
| |||||||||||||
Construction
|
0.7
|
1.5
|
2.2
|
0.1
|
0.8
|
1.7
|
2.5
|
0.2
| |||||||||||||
Passenger transport
|
1.4
|
0.8
|
2.2
|
0.3
|
1.1
|
1.1
|
2.2
|
0.2
| |||||||||||||
Hotels
|
1.6
|
0.3
|
1.9
|
0.4
|
1.8
|
0.3
|
2.1
|
0.4
| |||||||||||||
Leisure
|
0.5
|
0.7
|
1.2
|
0.1
|
0.6
|
0.7
|
1.3
|
0.1
| |||||||||||||
Restaurants and bars
|
0.6
|
0.4
|
1.0
|
0.1
|
0.6
|
0.5
|
1.1
|
0.1
| |||||||||||||
Total
|
10.0
|
9.5
|
19.5
|
2.0
|
9.9
|
10.7
|
20.6
|
2.0
|
Mortgages
|
Cards
|
Loans
|
Motor
|
Total
| |||||||||||||||
000s
|
£bn
|
000s
|
£bn
|
000s
|
£bn
|
000s
|
£bn
|
000s
|
£bn
| ||||||||||
Total payment holidays granted
|
491
|
61.6
|
341
|
1.7
|
304
|
2.4
|
161
|
2.2
|
1,297
|
68.0
| |||||||||
First payment holiday still in force
|
6
|
0.9
|
10
|
0.0
|
7
|
0.1
|
5
|
0.1
|
29
|
1.1
| |||||||||
Matured payment holidays - repaying
|
443
|
55.4
|
282
|
1.4
|
259
|
2.1
|
139
|
1.8
|
1,123
|
60.7
| |||||||||
Matured payment holidays - extended
|
15
|
2.0
|
9
|
0.0
|
14
|
0.1
|
6
|
0.1
|
43
|
2.3
| |||||||||
Matured payment holidays - missed payment
|
27
|
3.3
|
41
|
0.2
|
24
|
0.2
|
11
|
0.2
|
103
|
3.9
| |||||||||
As a percentage of total matured
| |||||||||||||||||||
Matured payment holidays - repaying
|
91%
|
91%
|
85%
|
85%
|
87%
|
87%
|
89%
|
86%
|
89%
|
91%
| |||||||||
Matured payment holidays - extended
|
3%
|
3%
|
3%
|
3%
|
5%
|
5%
|
4%
|
5%
|
3%
|
3%
| |||||||||
Matured payment holidays - missed payment
|
6%
|
5%
|
12%
|
12%
|
8%
|
8%
|
7%
|
9%
|
8%
|
6%
|
000s
|
£bn
| ||
Coronavirus Business Interruption Loan Scheme
|
10.5
|
2.5
| |
Bounce Back Loan Scheme
|
343.3
|
9.7
| |
Coronavirus Large Business Interruption Loan Scheme
|
0.1
|
0.7
| |
Total
|
353.9
|
12.9
|
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Disclaimer
Lloyds Banking Group plc published this content on 28 April 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 April 2021 12:13:02 UTC.