SEGMENTAL ANALYSIS (Tables)

12 Months Ended

Dec. 31, 2018

Disclosure of entity's operating segments [text block] [Abstract]

Disclosure of Operating Segments [Text Block]

	Retail £m			Commercial Banking £m			Insurance and Wealth £m			Other £m			Underlying basis total £m
Year ended 31 December 2018
Net interest income		9,066			3,004			123			521			12,714
Other income, net of insurance claims		2,171			1,653			1,865			321			6,010
Total underlying income, net of insurance claims		11,237			4,657			1,988			842			18,724
Operating lease depreciation1		(921	)		(35	)		–			–			(956	)
Net income		10,316			4,622			1,988			842			17,768
Operating costs		(4,915	)		(2,167	)		(1,021	)		(62	)		(8,165	)
Remediation		(267	)		(203	)		(39	)		(91	)		(600	)
Total costs		(5,182	)		(2,370	)		(1,060	)		(153	)		(8,765	)
Impairment (charge) credit		(862	)		(92	)		(1	)		18			(937	)
Underlying profit		4,272			2,160			927			707			8,066
External income		13,097			4,876			1,895			(1,144	)		18,724
Inter-segment income		(1,860	)		(219	)		93			1,986			–
Segment underlying income, net of insurance claims		11,237			4,657			1,988			842			18,724
Segment external assets		349,719			164,897			140,487			142,495			797,598
Segment customer deposits		252,808			148,633			14,063			2,562			418,066
Segment external liabilities		260,378			191,071			147,673			148,277			747,399
Analysis of segment underlying other income, net of insurance claims:
Current accounts		503			142			5			–			650
Credit and debit card fees		988			4			1			–			993
Commercial banking and treasury fees		–			305			–			–			305
Unit trust and insurance broking		13			–			208			–			221
Private banking and asset management		–			5			92			–			97
Factoring		–			83			–			–			83
Other fees and commissions		52			253			163			31			499
Fees and commissions receivable		1,556			792			469			31			2,848
Fees and commissions payable		(855	)		(57	)		(418	)		(56	)		(1,386	)
Net fee and commission income		701			735			51			(25	)		1,462
Operating lease rental income		1,305			38			–			–			1,343
Rental income from investment properties		–			–			197			–			197
Gains less losses on disposal of financial assets at fair value through
other comprehensive income		–			–			–			275			275
Lease termination income		–			7			–			–			7
Net trading income, excluding insurance		71			766			–			227			1,064
Insurance and other, net of insurance claims		247			358			2,146			(1,089	)		1,662
Other external income, net of insurance claims		1,623			1,169			2,343			(587	)		4,548
Inter-segment other income		(153	)		(251	)		(529	)		933			–
Segment other income, net of insurance claims		2,171			1,653			1,865			321			6,010
Other segment items reflected in
income statement above:
Depreciation and amortisation		1,573			278			154			400			2,405
Decrease in value of in-force business		–			–			(55	)		–			(55	)
Defined benefit scheme charges		121			48			20			216			405
Other segment items:
Additions to fixed assets		2,092			208			223			991			3,514
Investments in joint ventures and associates at end of year		4			6			–			81			91

	Retail £m			Commercial Banking £m			Insurance and Wealth £m			Other £m			Underlying basis total £m
Year ended 31 December 20171
Net interest income		8,706			3,030			133			451			12,320
Other income, net of insurance claims		2,221			1,798			1,846			340			6,205
Total underlying income, net of insurance claims		10,927			4,828			1,979			791			18,525
Operating lease depreciation2		(947	)		(105	)		–			(1	)		(1,053	)
Net income		9,980			4,723			1,979			790			17,472
Operating costs		(4,866	)		(2,230	)		(1,040	)		(48	)		(8,184	)
Remediation		(633	)		(173	)		(40	)		(19	)		(865	)
Total costs		(5,499	)		(2,403	)		(1,080	)		(67	)		(9,049	)
Impairment (charge) credit		(711	)		(89	)		–			5			(795	)
Underlying profit		3,770			2,231			899			728			7,628
External income		12,682			3,176			1,883			784			18,525
Inter-segment income		(1,755	)		1,652			96			7			–
Segment underlying income, net of insurance claims		10,927			4,828			1,979			791			18,525
Segment external assets		350,219			177,808			151,986			132,096			812,109
Segment customer deposits		253,127			148,313			13,770			2,914			418,124
Segment external liabilities		258,612			224,577			157,824			121,953			762,966
Analysis of segment underlying other income, net of insurance claims:
Current accounts		572			135			5			–			712
Credit and debit card fees		948			4			1			–			953
Commercial banking and treasury fees		–			321			–			–			321
Unit trust and insurance broking		10			–			214			–			224
Private banking and asset management		–			5			93			–			98
Factoring		–			91			–			–			91
Other fees and commissions		95			273			184			14			566
Fees and commissions receivable		1,625			829			497			14			2,965
Fees and commissions payable		(873	)		(50	)		(380	)		(79	)		(1,382	)
Net fee and commission income		752			779			117			(65	)		1,583
Operating lease rental income		1,281			63			–			–			1,344
Rental income from investment properties		–			1			212			–			213
Gains less losses on disposal of available-for-sale financial assets		–			29			(3	)		420			446
Lease termination income		–			74			–			–			74
Trading income		26			490			–			(98	)		418
Insurance and other, net of insurance claims		6			27			2,223			(129	)		2,127
Other external income, net of insurance claims		1,313			684			2,432			193			4,622
Inter-segment other income		156			335			(703	)		212			–
Segment other income, net of insurance claims		2,221			1,798			1,846			340			6,205
Other segment items reflected in income statement above:
Depreciation and amortisation		1,547			322			197			304			2,370
Increase in value of in-force business		–			–			(165	)		–			(165	)
Defined benefit scheme charges		149			52			25			133			359
Other segment items:
Additions to fixed assets		2,431			130			274			820			3,655
Investments in joint ventures and associates at end of year		12			6			–			47			65

	Retail £m			Commercial Banking £m			Insurance and Wealth £m			Other £m			Underlying basis total £m
Year ended 31 December 20161
Net interest income		8,074			2,863			80			418			11,435
Other income, net of insurance claims		2,165			1,875			1,878			86			6,004
Total underlying income, net of insurance claims		10,239			4,738			1,958			504			17,439
Operating lease depreciation2		(777	)		(118	)		–			–			(895	)
Net income		9,462			4,620			1,958			504			16,544
Operating costs		(4,761	)		(2,215	)		(1,046	)		(71	)		(8,093	)
Remediation		(750	)		(148	)		(103	)		(23	)		(1,024	)
Total costs		(5,511	)		(2,363	)		(1,149	)		(94	)		(9,117	)
Impairment (charge) credit		(648	)		(11	)		–			14			(645	)
Underlying profit		3,303			2,246			809			424			6,782
External income		12,243			3,656			1,373			167			17,439
Inter-segment income		(2,004	)		1,082			585			337			–
Segment underlying income, net of insurance claims		10,239			4,738			1,958			504			17,439
Segment external assets		340,253			193,054			154,782			129,704			817,793
Segment customer deposits		256,453			142,439			13,798			2,770			415,460
Segment external liabilities		265,128			231,450			160,815			111,935			769,328
Analysis of segment underlying other income, net of insurance claims:
Current accounts		614			131			7			–			752
Credit and debit card fees		854			4			1			16			875
Commercial banking and treasury fees		–			303			–			–			303
Unit trust and insurance broking		–			–			244			–			244
Private banking and asset management		–			5			94			–			99
Factoring		–			112			–			–			112
Other fees and commissions		125			237			292			6			660
Fees and commissions receivable		1,593			792			638			22			3,045
Fees and commissions payable		(783	)		(54	)		(424	)		(95	)		(1,356	)
Net fee and commission income		810			738			214			(73	)		1,689
Operating lease rental income		1,142			83			–			–			1,225
Rental income from investment properties		–			2			227			–			229
Gains less losses on disposal of available-for-sale financial assets		–			17			(2	)		76			91
Lease termination income		–			1			–			–			1
Trading income		46			1,937			–			(570	)		1,413
Insurance and other, net of insurance claims		(2	)		(627	)		1,613			372			1,356
Other external income, net of insurance claims		1,186			1,413			1,838			(122	)		4,315
Inter-segment other income		169			(276	)		(174	)		281			–
Segment other income, net of insurance claims		2,165			1,875			1,878			86			6,004
Other segment items reflected in income statement above:
Depreciation and amortisation		1,345			326			169			540			2,380
Decrease in value of in-force business		–			–			472			–			472
Defined benefit scheme charges		141			51			31			64			287
Other segment items:
Additions to fixed assets		2,362			145			481			772			3,760
Investments in joint ventures and associates at end of year		9			28			–			22			59

1 Net of profits on disposal of operating lease assets of £60 million.

1	Restated see page F-22.
2	Net of profits on disposal of operating lease assets of £32 million.

1	Restated – see page F-22.
2	Net of profits on disposal of operating lease assets of £58 million.

Disclosure of reconciliation of underlying basis to statutory results [text block]

The underlying basis is the basis on which financial information is presented to the chief operating decision maker which excludes certain items included in the statutory results. The table below reconciles the statutory results to the underlying basis.

				Removal of:
	Lloyds Banking Group statutory £m			Volatility and other items1 £m			Insurance gross up2 £m			PPI £m		Underlying basis £m
Year ended 31 December 2018
Net interest income		13,396			152			(834	)		–		12,714
Other income, net of insurance claims		5,230			107			673			–		6,010
Total income, net of insurance claims		18,626			259			(161	)		–		18,724
Operating lease depreciation3					(956	)		–			–		(956	)
Net income		18,626			(697	)		(161	)		–		17,768
Operating expenses		(11,729	)		2,053			161			750		(8,765	)
Impairment		(937	)		–			–			–		(937	)
Profit before tax		5,960			1,356			–			750		8,066

			Removal of:
	Lloyds Banking Group statutory £m		Volatility and other items4 £m		Insurance gross up2 £m		PPI £m	Underlying basis £m
Year ended 31 December 2017
Net interest income	10,912		228		1,180		–	12,320
Other income, net of insurance claims	7,747		(186	)	(1,356	)	–	6,205
Total income, net of insurance claims	18,659		42		(176	)	–	18,525
Operating lease depreciation3			(1,053	)	–		–	(1,053	)
Net income	18,659		(1,011	)	(176	)	–	17,472
Operating expenses	(12,346	)	1,821		176		1,300	(9,049	)
Impairment	(688	)	(107	)	–		–	(795	)
Profit before tax	5,625		703		–		1,300	7,628

			Removal of:
	Lloyds Banking Group statutory £m		Volatility and other items5 £m		Insurance gross up2 £m		PPI £m	Underlying basis £m
Year ended 31 December 2016
Net interest income	9,274		263		1,898		–	11,435
Other income, net of insurance claims	7,993		121		(2,110	)	–	6,004
Total income, net of insurance claims	17,267		384		(212	)	–	17,439
Operating lease depreciation3			(895	)	–		–	(895	)
Net income	17,267		(511	)	(212	)	–	16,544
Operating expenses	(12,627	)	1,948		212		1,350	(9,117	)
Impairment	(752	)	107		–		–	(645	)
Profit before tax	3,888		1,544		–		1,350	6,782

1	In the year ended 31 December 2018 this comprises the effects of asset sales (loss of £145 million); volatility and other items (gains of £95 million); the amortisation of purchased intangibles (£108 million); restructuring (£879 million, comprising severance related costs, the rationalisation of the non-branch property portfolio, the work on implementing the ring-fencing requirements and the integration of MBNA and Zurich’s UK workplace pensions and savings business); and the fair value unwind and other items (losses of £319 million).
2	The Group’s insurance businesses’ income statements include income and expenditure which are attributable to the policyholders of the Group’s long-term assurance funds. These items have no impact in total upon the profit attributable to equity shareholders and, in order to provide a clearer representation of the underlying trends within the business, these items are shown net within the underlying results.
3	Net of profits on disposal of operating lease assets of £60 million (2017: £32 million; 2016: £58 million).
4	Comprises the effects of asset sales (gain of £30 million); volatile items (gain of £263 million); liability management (loss of £14 million); the amortisation of purchased intangibles (£91 million); restructuring costs (£621 million, principally comprising costs relating to the Simplification programme; the rationalisation of the non-branch property portfolio, the work on implementing the ring-fencing requirements and the integration of MBNA); and the fair value unwind and other items (loss of £270 million).
5	Comprises the write-off of the Enhanced Capital Note embedded derivative and premium paid on redemption of the remaining notes (loss of £790 million); the effects of asset sales (gain of £217 million); volatile items (gain of £99 million); liability management (gain of £123 million); the amortisation of purchased intangibles (£340 million); restructuring costs (£622 million, principally comprising the severance related costs related to phase II of the Simplification programme); and the fair value unwind and other items (loss of £231 million).