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OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES

12 Months Ended

Dec. 31, 2017

Disclosure of offsetting of financial assets and financial liabilities [text block] [Abstract]

Disclosure of offsetting of financial assets and financial liabilities [text block]

NOTE 50: OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES

The following information relates to financial assets and liabilities which have been offset in the balance sheet and those which have not been offset but for which the Group has enforceable master netting agreements or collateral arrangements in place with counterparties.

Related amounts where set off in
the balance sheet not permitted³

Potential

At 31 December 2017

Gross amounts
of assets and
liabilities¹
£m

Amounts offset
in the balance
sheet²
£m

Net amounts
presented in
the balance
sheet
£m

Cash collateral
received/
pledged
£m

Non-cash
collateral
received/
pledged
£m

net amounts
if offset
of related
amounts
permitted
£m

Financial assets

Trading and other financial assets at fair value through profit or loss:

Excluding reverse repos

131,288

–

131,288

–

(3,322

)

127,966

Reverse repos

38,882

(7,292

)

31,590

–

(31,590

)

–

170,170

(7,292

)

162,878

–

(34,912

)

127,966

Derivative financial instruments

72,869

(47,035

)

25,834

(5,419

)

(13,807

)

6,608

Loans and advances to banks:

Excluding reverse repos

5,840

–

5,840

(2,293

)

–

3,547

Reverse repos

771

–

771

(646

)

(125

)

–

6,611

–

6,611

(2,939

)

(125

)

3,547

Loans and advances to customers:

Excluding reverse repos

457,382

(1,716

)

455,666

(1,656

)

(7,030

)

446,980

Reverse repos

16,832

–

16,832

–

(16,832

)

–

474,214

(1,716

)

472,498

(1,656

)

(23,862

)

446,980

Debt securities

3,643

–

3,643

–

3,643

Available-for-sale financial assets

42,098

–

42,098

–

(16,751

)

25,347

Financial liabilities

Deposits from banks:

Excluding repos

6,629

–

6,629

(4,860

)

–

1,769

Repos

23,175

–

23,175

–

(23,175

)

–

29,804

–

29,804

(4,860

)

(23,175

)

1,769

Customer deposits:

Excluding repos

417,009

(1,523

)

415,486

(1,205

)

(7,030

)

407,251

Repos

2,638

–

2,638

–

(2,638

)

–

419,647

(1,523

)

418,124

(1,205

)

(9,668

)

407,251

Trading and other financial liabilities at fair value through profit or loss:

Excluding repos

9,499

–

9,499

–

9,499

Repos

48,670

(7,292

)

41,378

–

(41,378

)

–

58,169

(7,292

)

50,877

–

(41,378

)

9,499

Derivative financial instruments

73,352

(47,228

)

26,124

(3,949

)

(17,459

)

4,716

								Related amounts where set off in the balance sheet not permitted³						Potential
At 31 December 2016	Gross amounts of assets and liabilities¹ £m		Amounts offset in the balance sheet² £m			Net amounts presented in the balance sheet £m		Cash collateral received/ pledged £m			Non-cash collateral received/ pledged £m			net amounts if offset of related amounts permitted £m
Financial assets
Trading and other financial assets at fair value through profit or loss:
Excluding reverse repos		118,095		–			118,095		–			(3,265	)		114,830
Reverse repos		35,298		(2,219	)		33,079		–			(33,079	)		–
		153,393		(2,219	)		151,174		–			(36,344	)		114,830
Derivative financial instruments		92,390		(56,252	)		36,138		(6,472	)		(19,906	)		9,760
Loans and advances to banks:
Excluding reverse repos		26,000		–			26,000		(2,826	)		–			23,174
Reverse repos		902		–			902		–			(902	)		–
		26,902		–			26,902		(2,826	)		(902	)		23,174
Loans and advances to customers:
Excluding reverse repos		451,290		(1,636	)		449,654		(1,793	)		(6,331	)		441,530
Reverse repos		8,304		–			8,304		–			(8,304	)		–
		459,594		(1,636	)		457,958		(1,793	)		(14,635	)		441,530
Debt securities		3,397		–			3,397		–			–			3,397
Available-for-sale financial assets		56,524		–			56,524		–			(21,475	)		35,049
Financial liabilities
Deposits from banks:
Excluding repos		9,105		–			9,105		(5,080	)		(695	)		3,330
Repos		7,279		–			7,279		–			(7,279	)		–
		16,384		–			16,384		(5,080	)		(7,974	)		3,330
Customer deposits:
Excluding repos		415,153		(2,155	)		412,998		(1,391	)		(6,331	)		405,276
Repos		2,462		–			2,462		–			(2,462	)		–
		417,615		(2,155	)		415,460		(1,391	)		(8,793	)		405,276
Trading and other financial liabilities at fair value through profit or loss:
Excluding repos		12,437		–			12,437		–			–			12,437
Repos		44,286		(2,219	)		42,067		–			(42,067	)		–
		56,723		(2,219	)		54,504		–			(42,067	)		12,437
Derivative financial instruments		90,657		(55,733	)		34,924		(4,620	)		(24,820	)		5,484


1	After impairment allowance.

2	The amounts set off in the balance sheet as shown above represent derivatives and repurchase agreements with central clearing houses which meet the criteria for offsetting under IAS 32.

3	The Group enters into derivatives and repurchase and reverse repurchase agreements with various counterparties which are governed by industry standard master netting agreements. The Group holds and provides cash and securities collateral in respective of derivative transactions covered by these agreements. The right to set off balances under these master netting agreements or to set off cash and securities collateral only arises in the event of non-payment or default and, as a result, these arrangements do not qualify for offsetting under IAS 32.

The effects of over collateralisation have not been taken into account in the above table.