RELATED PARTY TRANSACTIONS

12 Months Ended

Dec. 31, 2018

Disclosure of related party [text block] [Abstract]

Disclosure of related party [text block]

NOTE 46: RELATED PARTY TRANSACTIONS

Key management personnel

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of an entity; the Group’s key management personnel are the members of the Lloyds Banking Group plc Group Executive Committee together with its Non-Executive Directors.

The table below details, on an aggregated basis, key management personnel compensation:

	2018 £m		2017 £m		2016 £m
Compensation
Salaries and other short-term benefits		14		13		17
Post-employment benefits		–		–		–
Share-based payments		18		22		23
Total compensation		32		35		40

Aggregate contributions in respect of key management personnel to defined contribution pension schemes were £nil million (2017: £0.05 million; 2016: £0.1 million).

	2018 million			2017 million			2016 million
Share option plans
At 1 January		1			3			9
Granted, including certain adjustments (includes entitlements of appointed key management personnel)		–			–			3
Exercised/lapsed (includes entitlements of former key management personnel)		(1	)		(2	)		(9	)
At 31 December		–			1			3

	2018 million		2017 million		2016 million
Share plans
At 1 January	82		65		82
Granted, including certain adjustments (includes entitlements of appointed key management personnel)	39		37		29
Exercised/lapsed (includes entitlements of former key management personnel)	(37	)	(20	)	(46	)
At 31 December	84		82		65

The tables below detail, on an aggregated basis, balances outstanding at the year end and related income and expense, together with information relating to other transactions between the Group and its key management personnel:

	2018 £m			2017 £m			2016 £m
Loans
At 1 January		2			4			5
Advanced (includes loans of appointed key management personnel)		1			1			3
Repayments (includes loans of former key management personnel)		(1	)		(3	)		(4	)
At 31 December		2			2			4

The loans are on both a secured and unsecured basis and are expected to be settled in cash. The loans attracted interest rates of between 6.70 per cent and 24.20 per cent in 2018 (2017: 6.45 per cent and 23.95 per cent; 2016: 2.49 per cent and 23.95 per cent).

No provisions have been recognised in respect of loans given to key management personnel (2017 and 2016: £nil).

	2018 £m			2017 £m			2016 £m
Deposits
At 1 January		20			12			13
Placed (includes deposits of appointed key management personnel)		33			41			41
Withdrawn (includes deposits of former key management personnel)		(33	)		(33	)		(42	)
At 31 December		20			20			12

Deposits placed by key management personnel attracted interest rates of up to 3.5 per cent (2017: 4.0 per cent; 2016: 4.0 per cent).

At 31 December 2018, the Group did not provide any guarantees in respect of key management personnel (2017 and 2016: none).

At 31 December 2018, transactions, arrangements and agreements entered into by the Group’s banking subsidiaries with directors and connected persons included amounts outstanding in respect of loans and credit card transactions of £0.5 million with 3 directors and 3 connected persons (2017: £0.01 million with three directors and two connected persons; 2016: £0.4 million with five directors and two connected persons).

Subsidiaries

In accordance with IFRS 10 Consolidated financial statements, transactions and balances with subsidiaries have been eliminated on consolidation.

Pension funds 

The Group provides banking and some investment management services to certain of its pension funds. At 31 December 2018, customer deposits of £225 million (2017: £337 million) and investment and insurance contract liabilities of £79 million (2017: £307 million) related to the Group’s pension funds.

Collective investment vehicles

The Group manages 131 (2017: 134) collective investment vehicles, such as Open Ended Investment Companies (OEICs) and of these 82 (2017: 83) are consolidated. The Group invested £620 million (2017: £418 million) and redeemed £404 million (2017: £616 million) in the unconsolidated collective investment vehicles during the year and had investments, at fair value, of £2,513 million (2017: £2,328 million) at 31 December. The Group earned fees of £128 million from the unconsolidated collective investment vehicles during 2018 (2017: £133 million).

Joint ventures and associates

At 31 December 2018 there were loans and advances to customers of £57 million (2017: £123 million) outstanding and balances within customer deposits of £2 million (2017: £9 million) relating to joint ventures and associates.

In addition to the above balances, the Group has a number of other associates held by its venture capital business that it accounts for at fair value through profit or loss. At 31 December 2018, these companies had total assets of approximately £4,091 million (2017: £4,661 million), total liabilities of approximately £4,616 million (2017: £5,228 million) and for the year ended 31 December 2018 had turnover of approximately £4,522 million (2017: £4,601 million) and made a loss of approximately £125 million (2017: net loss of £87 million). In addition, the Group has provided £1,141 million (2017: £1,226 million) of financing to these companies on which it received £49 million (2017: £81 million) of interest income in the year.