SUBORDINATED LIABILITIES

12 Months Ended

Dec. 31, 2018

Disclosure of subordinated liabilities [text block] [Abstract]

Disclosure of subordinated liabilities [text block]

NOTE 38: SUBORDINATED LIABILITIES

The movement in subordinated liabilities during the year was as follows:

	Preference shares £m			Preferred securities £m			Undated subordinated liabilities £m			Dated subordinated liabilities £m			Total £m
At 1 January 2017		864			4,134			599			14,234			19,831
Repurchases and redemptions during the year1		–			(237	)		–			(771	)		(1,008	)
Foreign exchange movements		(43	)		(221	)		(34	)		(487	)		(785	)
Other movements (all non-cash)		(8	)		14			–			(122	)		(116	)
At 31 December 2017		813			3,690			565			12,854			17,922
Issued during the year1		–			–			–			1,729			1,729
Repurchases and redemptions during the year1		–			(614	)		–			(1,642	)		(2,256	)
Foreign exchange movements		18			131			20			377			546
Other movements (all non-cash)		(28	)		(2	)		3			(258	)		(285	)
At 31 December 2018		803			3,205			588			13,060			17,656

1  The repurchases and redemptions resulted in cash outflows of £2,256 million (2017: £1,008 million).

Issued during 2018
Dated subordinated liabilities	£m
1.75% Subordinated Fixed Rate Notes 2028 callable 2023		664
4.344% Subordinated Fixed Rate Notes callable 2048		1,065

1,729

Repurchases and redemptions during 2018
Preferred securities	£m
6.461% Guaranteed Non-voting Non-cumulative Perpetual Preferred Securities	600
Undated Perpetual Preferred Securities	14
	614
Dated subordinated liabilities	£m
10.5% Subordinated Bonds callable 2018	150
6.75% Subordinated Fixed Rate Notes callable 2018	1,492
	1,642

Repurchases and redemptions during 2017
Preferred securities	£m
7.627% Fixed to Floating Rate Guaranteed Non-voting Non-cumulative	163
Preferred Securities
4.385% Step-up Perpetual Capital Securities callable 2017 (€750 million)	74
	237
Dated subordinated liabilities	£m
Subordinated Callable Notes 2017	771
	771

There were no repurchases of preference shares or undated subordinated liabilities during 2017 or 2018.

These securities will, in the event of the winding-up of the issuer, be subordinated to the claims of depositors and all other creditors of the issuer, other than creditors whose claims rank equally with, or are junior to, the claims of the holders of the subordinated liabilities. The subordination of specific subordinated liabilities is determined in respect of the issuer and any guarantors of that liability. The claims of holders of preference shares and preferred securities are generally junior to those of the holders of undated subordinated liabilities, which in turn are junior to the claims of holders of the dated subordinated liabilities. The Group has not had any defaults of principal, interest or other breaches with respect to its subordinated liabilities during 2018 (2017: none).