Implementation of IFRS 9 and IFRS 15 (Tables)

6 Months Ended

Jun. 30, 2018

Implementation of IFRS 9 and IFRS 15

Schedule of initial application of impairment

	IAS 39 allowance at 31 December 2017	Transitional adjustment in loss allowance	IFRS 9 loss allowance at 1 January 2018
	£m	£m	£m
Loans and advances to banks	—	1	1
Loans and advances to customers	2,201	1,022	3,223
Debt securities	26	—	26
Other assets	—	10	10
Drawn balances	2,227	1,033	3,260
Provisions for undrawn commitments and financial guarantees	30	243	273
Total loss allowance	2,257	1,276	3,533

Schedule of initial application of standards

	As at 31 December 2017	IFRS 9: Classification and measurement		IFRS 9: Impairment		IFRS 15	Adjusted as at 1 January 2018
	£m	£m		£m		£m	£m
Assets
Cash and balances at central banks	58,521	—		—		—	58,521
Items in course of collection from banks	755	—		—		—	755
Financial assets at fair value through profit or loss	162,878	13,130		—		—	176,008
Derivative financial instruments	25,834	(360	)	—		—	25,474
Loans and advances to banks	6,611	(2,364	)	(1	)	—	4,246
Loans and advances to customers	472,498	(10,460	)	(1,022	)	—	461,016
Debt securities	3,643	(329	)	—		—	3,314
Financial assets at amortised cost	482,752	(13,153	)	(1,023	)	—	468,576
Financial assets at fair value through other comprehensive income		42,917		—		—	42,917
Available-for-sale financial assets	42,098	(42,098	)	—		—
Goodwill	2,310	—		—		—	2,310
Value of in-force business	4,839	—		—		—	4,839
Other intangible assets	2,835	—		—		—	2,835
Property, plant and equipment	12,727	—		—		—	12,727
Current tax recoverable	16	—		—		—	16
Deferred tax assets	2,284	22		300		3	2,609
Retirement benefit assets	723	—		—		—	723
Other assets	13,537	(655	)	(10	)	—	12,872
Total assets	812,109	(197	)	(733	)	3	811,182

	As at 31 December 2017	IFRS 9: Classification and measurement		IFRS 9: Impairment		IFRS 15		Adjusted as at 1 January 2018
	£m	£m		£m		£m		£m
Equity and liabilities
Liabilities
Deposits from banks	29,804	—		—		—		29,804
Customer deposits	418,124	—		—		—		418,124
Items in course of transmission to banks	584	—		—		—		584
Financial liabilities at fair value through profit or loss	50,877	58		—		—		50,935
Derivative financial instruments	26,124	—		—		—		26,124
Notes in circulation	1,313	—		—		—		1,313
Debt securities in issue	72,450	(48	)	—		—		72,402
Liabilities arising from insurance contracts and participating investment contracts	103,413	—		—		—		103,413
Liabilities arising from non-participating investment contracts	15,447	—		—		—		15,447
Other liabilities	20,730	—		(3	)	14		20,741
Retirement benefit obligations	358	—		—		—		358
Current tax liabilities	274	—		—		—		274
Other provisions	5,546	—		243		—		5,789
Subordinated liabilities	17,922	—		—		—		17,922
Total liabilities	762,966	10		240		14		763,230
Equity
Shareholders’ equity	43,551	(207	)	(973	)	(11	)	42,360
Other equity instruments	5,355	—		—		—		5,355
Non-controlling interests	237	—		—		—		237
Total equity	49,143	(207	)	(973	)	(11	)	47,952
Total equity and liabilities	812,109	(197	)	(733	)	3		811,182

Schedule of reclassification of financial instruments

Balance sheet line item	IFRS 9 Measurement category	In	Out		IFRS 9 allocation	Net reclassification
		£m	£m			£m
Financial assets
Financial assets at FVTPL	FVTPL	14,447	(1,139	)	FVOCI	13,308
Derivative assets	FVTPL (Der)		(360	)	FVTPL	(360		)
Loans and advances
Banks	AC		(90	)	FVOCI		(2,364	)
			(2,274	)	FVTPL
Customers	AC		(10,474	)	FVTPL		(10,474	)
Debt securities	AC		(329	)	FVOCI		(329	)
			(13,167	)		(13,167		)
Financial assets at FVOCI	FVOCI	42,972	—			42,972
Available-for-sale assets			(684	)	FVTPL
			(41,414	)	FVOCI
			(42,098	)		(42,098		)
Other assets	AC		(655	)	FVTPL	(655		)
Financial liabilities
Financial liabilities at FVTPL	FVTPL	48				48
Debt securities in issue	AC		(48	)	FVTPL	(48		)
Total		57,467	(57,467	)		—