Condensed consolidating financial information (Tables)

6 Months Ended

Jun. 30, 2018

Condensed Consolidated Income Statement

CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Tables)

Disclosure of separate financial statements

For the half-year ended 30 June 2018	Company		Lloyds Bank		Subsidiaries		Consolidation adjustments		Group
	£m		£m		£m		£m		£m
Net interest (expense) income	(77	)	3,098		3,261		(275	)	6,007
Other income	3,168		4,209		7,156		(6,260	)	8,273
Total income	3,091		7,307		10,417		(6,535	)	14,280
Insurance claims	—		—		(4,709	)	—		(4,709	)
Total income, net of insurance claims	3,091		7,307		5,708		(6,535	)	9,571
Operating expenses	(8	)	(3,564	)	(3,548	)	1,122		(5,998	)
Trading surplus	3,083		3,743		2,160		(5,413	)	3,573
Impairment	(2	)	(259	)	(220	)	25		(456	)
Profit (loss) before tax	3,081		3,484		1,940		(5,388	)	3,117
Taxation	(65	)	(289	)	(421	)	(75	)	(850	)
Profit (loss) for the period	3,016		3,195		1,519		(5,463	)	2,267

For the half-year ended 30 June 2017	Company		Lloyds Bank		Subsidiaries		Consolidation adjustments		Group
	£m		£m		£m		£m		£m
Net interest (expense) income	(58	)	2,822		2,510		(72	)	5,202
Other income	1,671		4,159		11,660		(5,417	)	12,073
Total income	1,613		6,981		14,170		(5,489	)	17,275
Insurance claims	—		—		(7,976	)	—		(7,976	)
Total income, net of insurance claims	1,613		6,981		6,194		(5,489	)	9,299
Operating expenses	(14	)	(3,930	)	(3,160	)	902		(6,202	)
Trading surplus	1,599		3,051		3,034		(4,587	)	3,097
Impairment	—		(142	)	(62	)	1		(203	)
Profit (loss) before tax	1,599		2,909		2,972		(4,586	)	2,894
Taxation	(8	)	(250	)	(683	)	36		(905	)
Profit (loss) for the period	1,591		2,659		2,289		(4,550	)	1,989

For the half-year ended 31 December 2017	Company		Lloyds Bank		Subsidiaries		Consolidation adjustments		Group
	£m		£m		£m		£m		£m
Net interest (expense) income	(63	)	3,007		2,850		(84	)	5,710
Other income	1,121		3,483		10,893		(4,245	)	11,252
Total income	1,058		6,490		13,743		(4,329	)	16,962
Insurance claims	—		—		(7,602	)	—		(7,602	)
Total income, net of insurance claims	1,058		6,490		6,141		(4,329	)	9,360
Operating expenses	(241	)	(3,271	)	(3,779	)	1,147		(6,144	)
Trading surplus	817		3,219		2,362		(3,182	)	3,216
Impairment	—		(320	)	(219	)	54		(485	)
Profit (loss) before tax	817		2,899		2,143		(3,128	)	2,731
Taxation	(9	)	(279	)	(470	)	(65	)	(823	)
Profit (loss) for the period	808		2,620		1,673		(3,193	)	1,908

Consolidated statement of comprehensive income

CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Tables)

Disclosure of separate financial statements

						Consolidation
Half-year ended 30 June 2018	Company	Lloyds Bank		Subsidiaries		adjustments		Group
	£m	£m		£m		£m		£m
Profit (loss) for the period	3,016	3,195		1,519		(5,463	)	2,267
Other comprehensive income
Items that will not subsequently be reclassified to profit or loss:
Post-retirement defined benefit scheme remeasurements
Remeasurements before tax	—	411		497		—		908
Tax	—	(111	)	(95	)	—		(206	)
	—	300		402		—		702
Movements in revaluation reserve in respect of equity shares held at fair value through comprehensive income:
Change in fair value	—	(100	)	7		(4	)	(97	)
Tax	—	22		—		—		22
	—	(78	)	7		(4	)	(75	)
Gains and losses attributable to own credit risk:
Gains (losses) before tax	—	167		—		—		167
Tax	—	(45	)	—		—		(45	)
	—	122		—		—		122
Items that may subsequently be reclassified to profit or loss:
Movements in revaluation reserve in respect of debt securities held at fair value through other comprehensive income:
Change in fair value	—	103		(38	)	44		109
Income statement transfers in respect of disposals	—	(212	)	9		—		(203	)
Income statement transfers in respect of impairment	—	1		—		—		1
Tax	—	45		1		—		46
	—	(63	)	(28	)	44		(47	)
Movements in cash flow hedging reserve:
Effective net portion of changes in fair value	—	5		(89	)	(139	)	(223	)
Net income statement transfers	—	(298	)	(11	)	(114	)	(423	)
Tax	—	79		27		76		182
	—	(214	)	(73	)	(177	)	(464	)
Currency translation differences (tax: nil)	—	2		3		—		5
Other comprehensive income for the period, net of tax	—	69		311		(137	)	243
Total comprehensive income for the period	3,016	3,264		1,830		(5,600	)	2,510

				Consolidation
Half-year ended 30 June 2018	Company	Lloyds Bank	Subsidiaries	adjustments		Group
	£m	£m	£m	£m		£m
Total comprehensive income attributable to ordinary shareholders	2,811	3,129	1,737	(5,409	)	2,268
Total comprehensive income attributable to other equity holders	205	135	56	(191	)	205
Total comprehensive income attributable to equity holders	3,016	3,264	1,793	(5,600	)	2,473
Total comprehensive income attributable to non-controlling interests	—	—	37	—		37
Total comprehensive income for the period	3,016	3,264	1,830	(5,600	)	2,510

Half-year ended 30 June 2017	Company	Lloyds Bank		Subsidiaries		Consolidation adjustments		Group
	£m	£m		£m		£m		£m
Profit (loss) for the period	1,591	2,659		2,289		(4,550	)	1,989
Other comprehensive income
Items that will not subsequently be reclassified to profit or loss:
Post-retirement defined benefit scheme remeasurements:
Remeasurements before tax	—	(99	)	(25	)	—		(124	)
Tax	—	27		5		—		32
	—	(72	)	(20	)	—		(92	)
Gains and losses attributable to own credit risk
Gains and (losses) before tax	—	(44	)	—		—		(44	)
Tax	—	12		—		—		12
	—	(32	)	—		—		(32	)
Items that may subsequently be reclassified to profit or loss:
Movements in revaluation reserve in respect of available-for-sale financial assets:
Change in fair value	—	426		23		6		455
Income statement transfers in respect of disposals	—	(202	)	(113	)	—		(315	)
Income statement transfers in respect of impairment	—	—		9		(3	)	6
Tax	—	(59	)	11		—		(48	)
	—	165		(70	)	3		98
Movements in cash flow hedging reserve:
Effective portion of changes in fair value	—	(65	)	(56	)	(146	)	(267	)
Net income statement transfers	—	(196	)	16		(137	)	(317	)
Tax	—	68		10		73		151
	—	(193	)	(30	)	(210	)	(433	)
Currency translation differences (tax: nil)	—	(4	)	10		(13	)	(7	)
Other comprehensive income for the period, net of tax	—	(136	)	(110	)	(220	)	(466	)
Total comprehensive income for the period	1,591	2,523		2,179		(4,770	)	1,523
Total comprehensive income attributable to ordinary shareholders	1,382	2,386		2,077		(4,572	)	1,273
Total comprehensive income attributable to other equity holders	209	137		10		(147	)	209
Total comprehensive income attributable to equity holders	1,591	2,523		2,087		(4,719	)	1,482
Total comprehensive income attributable to non-controlling interests	—	—		92		(51	)	41
Total comprehensive income for the period	1,591	2,523		2,179		(4,770	)	1,523

Half-year ended 31 December 2017	Company	Lloyds Bank		Subsidiaries		Consolidation adjustments		Group
	£m	£m		£m		£m		£m
Profit (loss) for the period	808	2,620		1,673		(3,193	)	1,908
Other comprehensive income
Items that will not subsequently be reclassified to profit or loss:
Post-retirement defined benefit scheme remeasurements
Remeasurements before tax	—	541		211		—		752
Tax	—	(137	)	(41	)	—		(178	)
	—	404		170		—		574
Gains and losses attributable to own credit risk
Gains (losses) before tax	—	(11	)	—		—		(11	)
Tax	—	3		—		—		3
	—	(8	)	—		—		(8	)
Items that may subsequently be reclassified to profit or loss:
Movements in revaluation reserve in respect of available-for-sale financial assets:
Change in fair value	—	(195	)	15		28		(152	)
Income statement transfers in respect of disposals	—	(131	)	(18	)	18		(131	)
Tax	—	105		6		—		111
	—	(221	)	3		46		(172	)
Movements in cash flow hedging reserve:
Effective portion of changes in fair value	—	80		(80	)	(96	)	(96	)
Net income statement transfers	—	(240	)	30		(124	)	(334	)
Tax	—	62		13		57		132
	—	(98	)	(37	)	(163	)	(298	)
Currency translation differences (tax: nil)	—	(1	)	(37	)	13		(25	)
Other comprehensive income for the period, net of tax	—	76		99		(104	)	71
Total comprehensive income for the period	808	2,696		1,772		(3,297	)	1,979
Total comprehensive income attributable to ordinary shareholders	602	2,560		1,663		(3,101	)	1,724
Total comprehensive income attributable to other equity holders	206	136		111		(247	)	206
Total comprehensive income attributable to equity holders	808	2,696		1,774		(3,348	)	1,930
Total comprehensive income attributable to non-controlling interests	—	—		(2	)	51		49
Total comprehensive income for the period	808	2,696		1,772		(3,297	)	1,979

Balance sheet

CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Tables)

Disclosure of separate financial statements

At 30 June 2018	Company	Lloyds Bank	Subsidiaries	Consolidation adjustments		Group
	£m	£m	£m	£m		£m
Assets
Cash and balances at central banks	—	59,697	8,251	—		67,948
Items in course of collection from banks	—	483	219	—		702
Financial assets at fair value through profit or loss	2	34,325	139,215	(1,181	)	172,361
Derivative financial instruments	289	25,576	32,550	(31,460	)	26,955
Loans and advances to banks	—	3,716	2,933	25		6,674
Loans and advances to customers	—	169,501	299,326	198		469,025
Debt securities	—	4,127	147	7		4,281
Due from fellow Lloyds Banking Group undertakings	20,190	170,872	103,108	(294,170	)	—
Financial assets at amortised cost:	20,190	348,216	405,514	(293,940	)	479,980
Financial assets at fair value through other comprehensive income	—	32,124	1,261	(2,085	)	31,300
Goodwill	—	—	2,331	(21	)	2,310
Value of in-force business	—	—	4,798	234		5,032
Other intangible assets	—	1,701	339	1,021		3,061
Property, plant and equipment	—	3,148	9,478	(49	)	12,577
Current tax recoverable	48	—	—	(48	)	—
Deferred tax assets	11	2,012	1,245	(944	)	2,324
Retirement benefit assets	—	1,128	468	(12	)	1,584
Investment in subsidiary undertakings, including assets held for sale	47,128	32,816	—	(79,944	)	—
Other assets	1,054	4,555	18,437	(401	)	23,645
Total assets	68,722	545,781	624,106	(408,830	)	829,779

At 30 June 2018	Company	Lloyds Bank	Subsidiaries	Consolidation adjustments		Group
	£m	£m	£m	£m		£m
Equity and liabilities
Liabilities
Deposits from banks	—	6,955	23,981	(2	)	30,934
Customer deposits	—	237,411	184,132	66		421,609
Due to fellow Lloyds Banking Group undertakings	131	94,561	171,285	(265,977	)	—
Items in course of transmission to banks	—	565	284	—		849
Financial liabilities at fair value through profit or loss	—	39,767	10,660	(4,650	)	45,777
Derivative financial instruments	273	22,609	34,139	(31,460	)	25,561
Notes in circulation	—	—	1,140	—		1,140
Debt securities in issue	17,210	77,485	18,804	(23,206	)	90,293
Liabilities arising from insurance contracts and participating investment contracts	—	—	103,544	(20	)	103,524
Liabilities arising from non-participating investment contracts	—	—	15,179	—		15,179
Other liabilities	1,047	3,576	24,516	(5,517	)	23,622
Retirement benefit obligations	—	139	127	(1	)	265
Current tax liabilities	—	113	119	(28	)	204
Deferred tax liabilities	—	—	—	—		—
Other provisions	—	1,984	2,854	(196	)	4,642
Subordinated liabilities	5,835	9,242	6,300	(3,740	)	17,637
Total liabilities	24,496	494,407	597,064	(334,731	)	781,236
Equity
Shareholders’ equity	38,871	48,157	25,707	(69,795	)	42,940
Other equity instruments	5,355	3,217	1,087	(4,304	)	5,355
Total equity excluding non-controlling interests	44,226	51,374	26,794	(74,099	)	48,295
Non-controlling interests	—	—	248	—		248
Total equity	44,226	51,374	27,042	(74,099	)	48,543
Total equity and liabilities	68,722	545,781	624,106	(408,830	)	829,779

At 31 December 2017	Company	Lloyds Bank	Subsidiaries	Consolidation  adjustments		Group
	£m	£m	£m	£m		£m
Assets
Cash and balances at central banks	—	55,835	2,686	—		58,521
Items in course of collection from banks	—	490	265	—		755
Trading and other financial assets at fair value through profit or loss	—	43,977	126,864	(7,963	)	162,878
Derivative financial instruments	265	26,764	14,785	(15,980	)	25,834
Loans and receivables:
Loans and advances to banks	—	3,611	2,975	25		6,611
Loans and advances to customers	—	170,804	294,463	7,231		472,498
Debt securities	—	3,182	420	41		3,643
Due from fellow Lloyds Banking Group undertakings	14,698	180,772	119,914	(315,384	)	—
	14,698	358,369	417,772	(308,087	)	482,752
Available-for-sale financial assets	—	42,566	1,582	(2,050	)	42,098
Goodwill	—	—	2,332	(22	)	2,310
Value of in-force business	—	—	4,590	249		4,839
Other intangible assets	—	1,415	345	1,075		2,835
Property, plant and equipment	—	3,252	9,526	(51	)	12,727
Current tax recoverable	724	—	26	(734	)	16
Deferred tax assets	22	1,995	2,285	(2,018	)	2,284
Retirement benefit assets	—	673	69	(19	)	723
Investment in subsidiary undertakings, including assets held for sale	44,863	40,500	—	(85,363	)	—
Other assets	961	1,117	12,107	(648	)	13,537
Total assets	61,533	576,953	595,234	(421,611	)	812,109

At 31 December 2017	Company	Lloyds Bank	Subsidiaries	Consolidation  adjustments		Group
	£m	£m	£m	£m		£m
Equity and liabilities
Liabilities
Deposits from banks	—	7,538	22,268	(2	)	29,804
Customer deposits	—	234,397	183,830	(103	)	418,124
Due to fellow Lloyds Banking Group undertakings	2,168	112,769	179,952	(294,889	)	—
Items in course of transmission to banks	—	304	280	—		584
Trading and other financial liabilities at fair value through profit or loss	—	51,045	53	(221	)	50,877
Derivative financial instruments	327	28,267	13,510	(15,980	)	26,124
Notes in circulation	—	—	1,313	—		1,313
Debt securities in issue	10,886	66,249	15,847	(20,532	)	72,450
Liabilities arising from insurance contracts and participating investment contracts	—	—	103,434	(21	)	103,413
Liabilities arising from non-participating investment contracts	—	—	15,447	—		15,447
Other liabilities	935	3,425	18,480	(2,110	)	20,730
Retirement benefit obligations	—	143	134	81		358
Current tax liabilities	—	105	1,242	(1,073	)	274
Deferred tax liabilities	—	—	779	(779	)	—
Other provisions	—	2,593	2,865	88		5,546
Subordinated liabilities	3,993	9,341	8,288	(3,700	)	17,922
Total liabilities	18,309	516,176	567,722	(339,241	)	762,966
Equity
Shareholders’ equity	37,869	57,560	25,470	(77,348	)	43,551
Other equity instruments	5,355	3,217	1,805	(5,022	)	5,355
Total equity excluding non-controlling interests	43,224	60,777	27,275	(82,370	)	48,906
Non-controlling interests	—	—	237	—		237
Total equity	43,224	60,777	27,512	(82,370	)	49,143
Total equity and liabilities	61,533	576,953	595,234	(421,611	)	812,109

Cash flow statement

CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Tables)

Disclosure of separate financial statements

For the half-year ended 30 June 2018	Company		Lloyds Bank		Subsidiaries		Consolidation   adjustments		Group
	£m		£m		£m		£m		£m
Net cash provided by (used in) operating activities	5,062		(5,720	)	(2,371	)	7,228		4,199
Cash flows from investing activities:
Purchase of financial assets	—		(5,766	)	(284	)	—		(6,050	)
Proceeds from sale and maturity of financial assets	—		14,216		618		22		14,856
Purchase of fixed assets	—		(703	)	(1,104	)	—		(1,807	)
Proceeds from sale of fixed assets	—		9		634		—		643
Additional capital injections to subsidiaries	(11,460	)	—		—		11,460		—
Capital repayments by subsidiaries	1,800		—		—		(1,800	)	—
Acquisition of businesses, net of cash acquired	—		—		(37	)	—		(37	)
Disposal of businesses, net of cash disposed	—		7,622		1		(7,622	)	1
Dividends received from subsidiaries	10,422		1,800		—		(12,222	)	—
Distributions on other equity instruments received	145		51		—		(196	)	—
Return of capital contribution	3,817		—		—		(3,817	)	—
Interest received on lending to Lloyds Bank	322		—		—		(322	)	—
Capital lending to subsidiaries	(9,430	)	—		—		9,430		—
Net cash provided by investing activities	(4,384	)	17,229		(172	)	(5,067	)	7,606
Cash flows from financing activities:
Dividends paid to ordinary shareholders	(1,475	)	(10,422	)	(1,800	)	12,222		(1,475	)
Distributions on other equity instruments	(205	)	(135	)	(61	)	196		(205	)
Dividends paid to non-controlling interests	—		—		(26	)	—		(26	)
Interest paid on subordinated liabilities	(117	)	(377	)	(389	)	103		(780	)
Issue of ordinary shares	85		—		—		—		85
Proceeds from issue of subordinated liabilities	1,729		—		—		—		1,729
Share buy back	(470	)	—		—		—		(470	)
Repayment of subordinated liabilities	—		—		(1,656	)	44		(1,612	)
Capital contribution received	—		—		11,460		(11,460	)	—
Repayment to parent company	—		(3,817	)	—		3,817		—
Capital repayments to the company	—		(1,800	)	—		1,800		—
Capital borrowing from parent company	—		9,430		—		(9,430	)	—
Interest paid on borrowing from the company	—		(322	)	—		322		—
Net cash (used in) provided by financing activities	(453	)	(7,443	)	7,528		(2,386	)	(2,754	)
Effects of exchange rate changes on cash and cash equivalents	—		1		—		—		1
Change in cash and cash equivalents	225		4,067		4,985		(225	)	9,052
Cash and cash equivalents at beginning of period	272		56,120		2,588		(272	)	58,708
Cash and cash equivalents at end of period	497		60,187		7,573		(497	)	67,760

For the half-year ended 30 June 2017	Company		Lloyds Bank		Subsidiaries		Consolidation  adjustments		Group
	£m		£m		£m		£m		£m
Net cash provided by (used in) operating activities	4,336		(825	)	(6,888	)	(1,306	)	(4,683	)
Cash flows from investing activities:
Dividends received from subsidiaries	1,600		2,807		—		(4,407	)	—
Distributions on other equity instruments received	146		51		—		(197	)	—
Purchase of financial assets	—		(1,646	)	(201	)	—		(1,847	)
Proceeds from sale and maturity of financial assets	—		4,128		1,148		—		5,276
Purchase of fixed assets	—		(552	)	(1,408	)	—		(1,960	)
Proceeds from sale of fixed assets	—		6		757		—		763
Capital lending to subsidiaries	(4,149	)	—		—		4,149		—
Capital repayments by subsidiaries	—		—		—		—		—
Return of capital contribution	74		—		—		(74	)	—
Interest received on lending to Lloyds Bank	111		—		—		(111	)	—
Acquisition of businesses, net of cash acquired	—		(2,026	)	—		117		(1,909	)
Disposal of businesses, net of cash disposed	—		—		26		—		26
Net cash provided by investing activities	(2,218	)	2,768		322		(523	)	349
Cash flows from financing activities:
Dividends paid to ordinary shareholders	(1,568	)	(1,600	)	(2,807	)	4,407		(1,568	)
Distributions on other equity instruments	(209	)	(137	)	(60	)	197		(209	)
Interest paid on subordinated liabilities	(127	)	(394	)	(435	)	176		(780	)
Repayment of subordinated liabilities	—		(675	)	(760	)	799		(636	)
Return of capital contribution	—		(74	)	—		74		—
Capital borrowing from the Company	—		4,149		—		(4,149	)	—
Capital repayments to the Company	—		—		—		—		—
Interest paid on borrowing from the Company	—		(111	)	—		111		—
Change in non-controlling interests	—		—		(3	)	—		(3	)
Net cash (used in) provided by financing activities	(1,904	)	1,158		(4,065	)	1,615		(3,196	)
Effects of exchange rate changes on cash and cash equivalents	—		(1	)	1		—		—
Change in cash and cash equivalents	214		3,100		(10,630	)	(214	)	(7,530	)
Cash and cash equivalents at beginning of period	42		45,266		17,122		(42	)	62,388
Cash and cash equivalents at end of period	256		48,366		6,492		(256	)	54,858

For the half-year ended 31 December 2017	Company		Lloyds Bank		Subsidiaries		Consolidation adjustments		Group
	£m		£m		£m		£m		£m
Net cash provided by (used in) operating activities	3,885		(2,605	)	929		(721	)	1,488
Cash flows from investing activities:
Dividends received from subsidiaries	1,050		1,571		—		(2,621	)	—
Distributions on other equity instruments received	146		50		—		(196	)	—
Purchase of financial assets	—		(5,904	)	(281	)	170		(6,015	)
Proceeds from sale and maturity of financial assets	—		12,352		1,047		—		13,399
Purchase of fixed assets	—		(603	)	(1,092	)	—		(1,695	)
Proceeds from sale of fixed assets	—		79		602		—		681
Additional capital lending to subsidiaries	(4,327	)	(34	)	—		4,361		—
Capital repayments by subsidiaries	475		—		—		(475	)	—
Return of capital contributions	3		—		—		(3	)	—
Interest received on lending to Lloyds Bank	133		—		—		(133	)	—
Acquisition of businesses, net of cash acquired	(320	)	—		(622	)	928		(14	)
Disposal of businesses, net of cash disposed	—		592		103		(592	)	103
Net cash (used in) provided by investing activities	(2,840	)	8,103		(243	)	1,439		6,459
Cash flows from financing activities:
Dividends paid to ordinary shareholders	(716	)	(1,050	)	(1,571	)	2,621		(716	)
Distributions on other equity instruments	(206	)	(136	)	(60	)	196		(206	)
Dividends paid to non-controlling interests	—		—		(51	)	—		(51	)
Interest paid on subordinated liabilities	(121	)	(274	)	(265	)	165		(495	)
Proceeds from issue of ordinary shares	14		—		—		—		14
Repayment of subordinated liabilities	—		—		(372	)	—		(372	)
Capital contributions received	—		—		—		—		—
Return of capital contributions	—		(3	)	—		3		—
Capital borrowing from the Company	—		4,327		—		(4,327	)	—
Capital repayments to the Company	—		(475	)	—		475		—
Interest paid on borrowing from the Company	—		(133	)	—		133		—
Changes in non-controlling interests	—		—		3		—		3
Net cash provided by (used in) financing activities	(1,029	)	2,256		(2,316	)	(734	)	(1,823	)
Effects of exchange rate changes on cash and cash equivalents	—		—		—		—		—
Change in cash and cash equivalents	16		7,754		(1,630	)	(16	)	6,124
Cash and cash equivalents at beginning of period	256		48,366		6,492		(256	)	54,858
Cash and cash equivalents at end of period	272		56,120		4,862		(272	)	60,982