2.Segmental analysis

Lloyds Banking Group provides a wide range of banking and financial services in the UK and in certain locations overseas. The Group Executive Committee (GEC) remains the chief operating decision maker for the Group.

The segmental results and comparatives are presented on an underlying basis, the basis reviewed by the chief operating decision maker. The effects of asset sales, volatile items, the insurance grossing adjustment, liability management, restructuring, payment protection insurance provisions, the amortisation of purchased intangible assets and the unwind of acquisition-related fair value adjustments are excluded in arriving at underlying profit.

Charges in relation to other conduct provisions (now referred to as remediation) are now included in underlying profit. In addition, results in relation to certain assets which are outside the Group’s risk appetite, previously reported as part of Run-off within Other, have been transferred into Retail and into Commercial. Comparatives have been restated accordingly.

The Group’s activities are organised into three financial reporting segments: Retail; Commercial Banking; and Insurance and Wealth. There has been no change to the descriptions of these segments as provided in note 4 to the Group’s financial statements for the year ended 31 December 2017, neither has there been any change to the Group’s segmental accounting for internal segment services or derivatives entered into by units for risk management purposes since 31 December 2017.

			Other		Total
			income,		income,
	Net		net of		net of		Profit			Inter-
	interest		insurance		insurance		(loss)		External	segment
Half-year to 30 June 2018	income		claims		claims		before tax		revenue	revenue
	£m		£m		£m		£m		£m	£m

Underlying basis
Retail	4,514		1,089		5,603		2,164		6,436	(833	)
Commercial Banking	1,497		840		2,337		1,166		1,821	516
Insurance and Wealth	60		979		1,039		480		1,202	(163	)
Other	273		216		489		424		9	480

Group	6,344		3,124		9,468		4,234		9,468	—

Reconciling items:
Insurance grossing adjustment	(244	)	321		77		—
Market volatility and asset sales	54		128		182		34
Amortisation of purchased intangibles	—		—		—		(53	)
Restructuring costs	—		—		—		(377	)
Fair value unwind and other items	(147	)	(9	)	(156	)	(171	)
Payment protection insurance provision	—		—		—		(550	)

Group — statutory	6,007		3,564		9,571		3,117

			Other		Total
			income,		income,
	Net		net of		net of		Profit			Inter-
	interest		insurance		insurance		(loss)		External	segment
Half-year to 30 June 2017(1)	income		claims		claims		before tax		revenue	revenue
	£m		£m		£m		£m		£m	£m

Underlying basis
Retail	4,182		1,148		5,330		1,902		6,204	(874	)
Commercial Banking	1,488		994		2,482		1,228		1,605	877
Insurance and Wealth	72		939		1,011		429		1,090	(79	)
Other	183		267		450		393		374	76

Group	5,925		3,348		9,273		3,952		9,273	—

Reconciling items:
Insurance grossing adjustment	(608	)	660		52		—
Market volatility and asset sales	20		96		116		136
Amortisation of purchased intangibles	—		—		—		(38	)
Restructuring costs	—		—		—		(321	)
Fair value unwind and other items	(135	)	(7	)	(142	)	(135	)
Payment protection insurance provision	—		—		—		(700	)

Group — statutory	5,202		4,097		9,299		2,894

(1)

Restated, see page 52

			Other		Total
			income,		income,
	Net		net of		net of		Profit			Inter-
	interest		insurance		insurance		(loss)		External	segment
Half-year to 31 December 2017(1)	income		claims		claims		before tax		revenue	revenue
	£m		£m		£m		£m		£m	£m

Underlying basis
Retail	4,524		1,073		5,597		1,868		6,478	(881	)
Commercial Banking	1,542		804		2,346		1,003		1,571	775
Insurance and Wealth	61		907		968		470		793	175
Other	268		73		341		335		410	(69	)

Group	6,395		2,857		9,252		3,676		9,252	—

Reconciling items:
Insurance grossing adjustment	(572	)	696		124		—
Market volatility and asset sales	36		107		143		143
Amortisation of purchased intangibles	—		—		—		(53	)
Restructuring costs	—		—		—		(300	)
Fair value unwind and other items	(149	)	(10	)	(159	)	(135	)
Payment protection insurance provision	—		—		—		(600	)

Group — statutory	5,710		3,650		9,360		2,731

(1)

Restated, see page 52

	Segment external		Segment customer		Segment external
	assets		deposits		liabilities
	At 30 June	At 31 Dec	At 30 June	At 31 Dec	At 30 June	At 31 Dec
	2018	2017	2018	2017	2018	2017
	£m	£m	£m	£m	£m	£m

Retail	350,505	350,219	254,608	253,127	262,547	258,612
Commercial Banking	172,322	177,808	148,531	148,313	210,427	224,577
Insurance and Wealth	151,478	151,986	13,599	13,770	157,836	157,824
Other	155,474	132,096	4,871	2,914	150,426	121,953

Total Group	829,779	812,109	421,609	418,124	781,236	762,966