CONSOLIDATED CASH FLOW STATEMENT (Tables)

12 Months Ended

Dec. 31, 2018

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

Disclosure of Change in Operating Assets [text block]

	2018 £m			2017  £m			2016 £m
Change in financial assets held at amortised cost		(27,038	)		(24,747	)		710
Change in derivative financial instruments and financial assets at fair value through profit or loss		22,046			9,916			(13,889	)
Change in other operating assets		520			(661	)		961
Change in operating assets		(4,472	)		(15,492	)		(12,218	)

Disclosure of change in operating liabilities [text block]

	2018			2017			2016
	£m			£m			£m
Change in deposits from banks		515			13,415			(654	)
Change in customer deposits		(322	)		2,913			(3,690	)
Change in debt securities in issue		18,579			(3,600	)		(6,552	)
Change in derivative financial instruments and liabilities at fair value through profit or loss		(24,606	)		(12,481	)		11,265
Change in investment contract liabilities		(1,594	)		(4,665	)		(2,665	)
Change in other operating liabilities		(1,245	)		136			(363	)
Change in operating liabilities		(8,673	)		(4,282	)		(2,659	)

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

	2018 £m			2017 £m			2016 £m
Depreciation and amortisation		2,405			2,370			2,380
Revaluation of investment properties		(139	)		(230	)		83
Allowance for loan losses		1,024			691			592
Write-off of allowance for loan losses, net of recoveries		(1,025	)		(1,061	)		(1,272	)
Impairment charge relating to undrawn balances		(73	)		(9	)		(13	)
Impairment of financial assets at fair value through other comprehensive income (2017: available-for-sale financial assets)		(14	)		6			173
Change in insurance contract liabilities		(4,547	)		9,168			14,084
Payment protection insurance provision		750			1,300			1,350
Other regulatory provisions		600			865			1,085
Other provision movements		(518	)		(8	)		(27	)
Net charge (credit) in respect of defined benefit schemes		405			369			287
Impact of consolidation and deconsolidation of OEICs1		–			–			(3,157	)
Unwind of discount on impairment allowances		(44	)		(23	)		(32	)
Foreign exchange impact on balance sheet2		191			125			(155	)
Loss on ECN transactions		–			–			721
Interest expense on subordinated liabilities		1,388			1,436			1,864
Loss (profit) on disposal of businesses		–			–			–
Net gain on sale of financial assets at fair value through other comprehensive income (2017: available-for-sale financial assets)		(275	)		(446	)		(575	)
Hedging valuation adjustments on subordinated debt		(429	)		(327	)		153
Value of employee services		260			414			309
Transactions in own shares		40			(411	)		(175	)
Accretion of discounts and amortisation of premiums and issue costs		1,947			1,701			465
Share of post-tax results of associates and joint ventures		(9	)		(6	)		1
Transfers to income statement from reserves		(701	)		(650	)		(557	)
Profit on disposal of tangible fixed assets		(104	)		(120	)		(93	)
Other non-cash items		(34	)		–			(17	)
Total non-cash items		1,098			15,154			17,474
Contributions to defined benefit schemes		(868	)		(587	)		(630	)
Payments in respect of payment protection insurance provision		(2,104	)		(1,657	)		(2,200	)
Payments in respect of other regulatory provisions		(1,032	)		(928	)		(761	)
Other		14			–			2
Total other items		(3,990	)		(3,172	)		(3,589	)
Non-cash and other items		(2,892	)		11,982			13,885

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]

	2018 £m			2017 £m			2016 £m
Cash and balances at central banks		54,663			58,521			47,452
Less: mandatory reserve deposits1		(2,553	)		(957	)		(914	)
		52,110			57,564			46,538
Loans and advances to banks		6,283			6,611			26,902
Less: amounts with a maturity of three months or more		(3,169	)		(3,193	)		(11,052	)
		3,114			3,418			15,850
Total cash and cash equivalents		55,224			60,982			62,388

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.

Disclosure of Acquisitions of Group Undertakings and Businesses [text block]

	2018 £m			2017 £m			2016 £m
Net assets acquired:
Cash and cash equivalents		–			123			–
Loans and advances to customers		–			7,811			–
Available-for-sale financial assets		–			16			–
Intangible assets		21			702			–
Property, plant and equipment		–			6			–
Other assets		6			414			–
Deposits from banks1		–			(6,431	)		–
Other liabilities		(1	)		(927	)		–
Goodwill arising on acquisition		–			302			–
Cash consideration		26			2,016			–
Less: Cash and cash equivalents acquired		–			(123	)		–
Net cash outflow arising from acquisition of subsidiaries and businesses		26			1,893			–
Acquisition of and additional investment in joint ventures		23			30			20
Net cash outflow from acquisitions in the year		49			1,923			20

1  Upon acquisition in 2017, the funding of MBNA was assumed by Lloyds Bank plc.

Disclosure of disposal of group undertakings and businesses

	2018 £m		2017 £m			2016 £m
Loans and advances to customers		–		342			–
Non-controlling interests		–		(242	)		–
Other net assets (liabilities)		1		29			5
		1		129			5
Net assets		1		129			5
Non-cash consideration received		–		–			–
(Loss) profit on sale		–		–			–
Cash consideration received on losing control of group undertakings and businesses		1		129			5
Cash and cash equivalents disposed		–		–			–
Net cash inflow (outflow)		1		129			5