CONSOLIDATED CASH FLOW STATEMENT (Tables)

12 Months Ended

Dec. 31, 2017

Disclosure of cash flow statement [text block] [Abstract]

Description of nature of assets with significant risk of material adjustments within next financial year

	2017 £m		2016 £m		2015 £m
Change in loans and receivables	(24,747	)	710		6,081
Change in derivative financial instruments, trading and other financial assets at fair value through profit or loss	9,916		(13,889	)	20,689
Change in other operating assets	(661	)	961		7,930
Change in operating assets	(15,492	)	(12,218	)	34,700

Disclosure of change in operating liabilities [text block]

	2017 £m		2016 £m		2015 £m
Change in deposits from banks	13,415		(654	)	6,107
Change in customer deposits	2,913		(3,690	)	(4,252	)
Change in debt securities in issue	(3,600	)	(6,552	)	5,657
Change in derivative financial instruments, trading and other liabilities at fair value through profit or loss	(12,481	)	11,265		(16,924	)
Change in investment contract liabilities	(4,665	)	(2,665	)	(3,922	)
Change in other operating liabilities	136		(363	)	1,349
Change in operating liabilities	(4,282	)	(2,659	)	(11,985	)

Disclosure of Non-cash and other items [text block]

	2017 £m			2016 £m			2015  £m
Depreciation and amortisation		2,370			2,380			2,112
Revaluation of investment properties		(230	)		83			(416	)
Allowance for loan losses		691			592			441
Write-off of allowance for loan losses, net of recoveries		(1,061	)		(1,272	)		(3,467	)
Impairment of available-for-sale financial assets		6			173			4
Change in insurance contract liabilities		9,168			14,084			(2,856	)
Payment protection insurance provision		1,300			1,350			4,000
Other regulatory provisions		865			1,085			837
Other provision movements		(17	)		(40	)		337
Net charge (credit) in respect of defined benefit schemes		369			287			315
Impact of consolidation and deconsolidation of OEICs1		–			(3,157	)		(5,978	)
Unwind of discount on impairment allowances		(23	)		(32	)		(56	)
Foreign exchange impact on balance sheet2		125			(155	)		507
Loss on ECN transactions		–			721			–
Interest expense on subordinated liabilities		1,436			1,864			1,970
Loss (profit) on disposal of businesses		–			–			46
Net gain on sale of available-for-sale financial assets		(446	)		(575	)		(51	)
Hedging valuation adjustments on subordinated debt		(327	)		153			(162	)
Value of employee services		414			309			279
Transactions in own shares		(411	)		(175	)		(816	)
Accretion of discounts and amortisation of premiums and issue costs		1,701			465			339
Share of post-tax results of associates and joint ventures		(6	)		1			3
Transfers to income statement from reserves		(650	)		(557	)		(956	)
Profit on disposal of tangible fixed assets		(120	)		(93	)		(51	)
Other non-cash items		–			(17	)		(11	)
Total non-cash items		15,154			17,474			(3,630	)
Contributions to defined benefit schemes		(587	)		(630	)		(433	)
Payments in respect of payment protection insurance provision		(1,657	)		(2,200	)		(3,091	)
Payments in respect of other regulatory provisions		(928	)		(761	)		(661	)
Other		–			2			7
Total other items		(3,172	)		(3,589	)		(4,178	)
Non-cash and other items		11,982			13,885			(7,808	)

1

These OEICs (Open-ended investment companies) are mutual funds which are consolidated if the Group manages the funds and also has a sufficient beneficial interest. The population of OEICs to be consolidated varies at each reporting date as external investors acquire and divest holdings in the various funds. The consolidation of these funds is effected by the inclusion of the fund investments and a matching liability to the unitholders; and changes in funds consolidated represent a non-cash movement on the balance sheet.

2

When 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.

Disclosure of cash and cash equivalents [text block]

	2017 £m		2016  £m		2015  £m
Cash and balances at central banks	58,521		47,452		58,417
Less: mandatory reserve deposits1	(957	)	(914	)	(941	)
	57,564		46,538		57,476
Loans and advances to banks	6,611		26,902		25,117
Less: amounts with a maturity of three months or more	(3,193	)	(11,052	)	(10,640	)
	3,418		15,850		14,477
Total cash and cash equivalents	60,982		62,388		71,953

1 Mandatory reserve deposits are held with local central banks in accordance with statutory requirements; these deposits are not available to finance the Group’s day-to-day operations.

Schedule of Acquisition of Group Undertakings and Businesses

	2017  £m		2016  £m	2015  £m
Net assets acquired:
Cash and cash equivalents	123		–	–
Loans and receivables: Loans and advances to customers	7,811		–	–
Available-for-sale financial assets	16		–	–
Intangible assets	702		–	–
Property, plant and equipment	6		–	–
Other assets	414		–	–
Deposits from banks1	(6,431	)	–	–
Other liabilities	(927	)	–	–
Goodwill arising on acquisition	302		–	–
Cash consideration	2,016		–	–
Less: Cash and cash equivalents acquired	(123	)	–	–
Net cash outflow arising from acquisition of MBNA	1,893		–	–
Acquisition of and additional investment in joint ventures	30		20	5
Net cash outflow from acquisitions in the year	1,923		20	5

1 Upon acquisition, the funding of MBNA was assumed by Lloyds Bank plc.

Disclosure of non-current assets or disposal groups classified as held for sale [text block]

	2017  £m		2016  £m	2015  £m
Trading and other assets at fair value through profit or loss	–		–	3,420
Loans and advances to customers	342		–	21,333
Loans and advances to banks	–		–	5,539
Available-for-sale financial assets	–		–	654
Value of in-force business	–		–	60
Property, plant and equipment	–		–	150
	342		–	31,156
Customer deposits	–		–	(24,613	)
Debt securities in issue	–		–	(9	)
Liabilities arising from insurance contracts and participating investment contracts	–		–	(3,828	)
Liabilities arising from non-participating investment contracts	–		–	(549	)
Non-controlling interests	(242	)	–	(825	)
Other net assets (liabilities)	29		5	(314	)
	(213	)	5	(30,138	)
Net assets	129		5	1,018
Non-cash consideration received	–		–	–
(Loss) profit on sale	–		–	(46	)
Cash consideration received on losing control of group undertakings and businesses	129		5	972
Cash and cash equivalents disposed	–		–	(5,043	)
Net cash inflow (outflow)	129		5	(4,071	)