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Financial assets at amortised cost
 6 Months Ended
Jun. 30, 2020
Financial asset at amortised cost.  
Financial assets at amortised cost

10.        Financial assets at amortised cost

Half-year to 30 June 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchased

 

 

 

 

 

 

 

 

 

 

or 

 

 

 

 

 

 

 

 

 

 

originated

 

 

 

 

 

 

 

 

 

 

credit-

 

 

 

 

Stage 1

 

Stage 2

 

Stage 3

 

impaired

 

Total

 

    

£m

    

£m

    

£m

    

£m

    

£m

Loans and advances to banks

 

 

 

 

 

 

 

 

 

 

At 1 January 2020

    

9,777

    

 —

    

 —

    

 —

    

9,777

Exchange and other adjustments

 

368

 

–

 

 —

 

 —

 

368

Transfers to Stage 2

 

(43)

 

43

 

 —

 

 —

 

–

Additions (repayments)

 

1,078

 

 1

 

 —

 

 —

 

1,079

At 30 June 2020

 

11,180

 

44

 

 —

 

 —

 

11,224

Allowance for impairment losses

 

(21)

 

(1)

 

 —

 

 —

 

(22)

Total loans and advances to banks

 

11,159

 

43

 

 —

 

 —

 

11,202

 

Loans and advances to customers

 

 

 

 

 

 

 

 

 

 

 

 

At 1 January 2020

    

449,975

    

28,543

    

6,015

    

13,714

    

498,247

Exchange and other adjustments

 

2,735

 

27

 

 4

 

(54)

 

2,712

Additions (repayments)

 

8,247

 

417

 

(836)

 

(593)

 

7,235

Transfers to Stage 1

 

3,154

 

(3,145)

 

(9)

 

 

 

 —

Transfers to Stage 2

 

(33,522)

 

33,866

 

(344)

 

 

 

 —

Transfers to Stage 3

 

(1,060)

 

(1,569)

 

2,629

 

 

 

 —

 

 

(31,428)

 

29,152

 

2,276

 

 

 

 —

Recoveries

 

 

 

 

 

86

 

–

 

86

Financial assets that have been written off

 

 

 

 

 

(762)

 

(24)

 

(786)

At 30 June 2020

 

429,529

 

58,139

 

6,783

 

13,043

 

507,494

Allowance for impairment losses

 

(1,332)

 

(2,168)

 

(2,161)

 

(325)

 

(5,986)

Total loans and advances to customers

 

428,197

 

55,971

 

4,622

 

12,718

 

501,508

 

Debt securities

 

 

 

 

 

 

 

 

 

 

 

 

At 1 January 2020

    

5,544

    

 —

    

 3

    

 —

    

5,547

Exchange and other adjustments

 

112

 

 —

 

 —

 

 —

 

112

Additions (repayments)

 

(50)

 

 —

 

 —

 

 —

 

(50)

Financial assets that have been written off

 

 

 

 —

 

 —

 

 —

 

 —

At 30 June 2020

 

5,606

 

 —

 

 3

 

 —

 

5,609

Allowance for impairment losses

 

(2)

 

 —

 

(3)

 

 —

 

(5)

Total debt securities

 

5,604

 

 —

 

 —

 

 —

 

5,604

Total financial assets at amortised cost

 

444,960

 

56,014

 

4,622

 

12,718

 

518,314

 

Exchange and other adjustments includes certain adjustments, prescribed by IFRS 9, in respect of purchased or originated credit-impaired financial assets.

 

Movements in Retail mortgage balances were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchased 

 

 

 

 

 

 

 

 

 

 

or 

 

 

 

 

 

 

 

 

 

 

originated 

 

 

 

 

 

 

 

 

 

 

credit- 

 

 

 

 

Stage 1

 

Stage 2 

 

Stage 3

 

impaired 

 

Total

 

    

£m

    

£m 

    

£m

    

£m 

    

£m

At 1 January 2020

 

257,043

 

16,935

 

1,506

 

13,714 

 

289,198

Exchange and other adjustments

 

 —

 

 —

 

 1

 

(54)

 

(53)

Additions (repayments)

 

(1,522)

 

(1,054)

 

(216)

 

(593)

 

(3,385)

Transfers to Stage 1

 

1,350

 

(1,345)

 

(5)

 

 

 

 —

Transfers to Stage 2

 

(20,260)

 

20,473

 

(213)

 

 

 

 —

Transfers to Stage 3

 

(34)

 

(702)

 

736

 

 

 

 —

 

 

(18,944)

 

18,426

 

518

 

 

 

 —

Recoveries

 

 

 

 

 

 9

 

 —

 

 9

Financial assets that have been written off

 

 

 

 

 

(18)

 

(24)

 

(42)

At 30 June 2020

 

236,577

 

34,307

 

1,800

 

13,043

 

285,726

Allowance for impairment losses

 

(106)

 

(491)

 

(187)

 

(325)

 

(1,109)

Total loans and advances to customers

 

236,471

 

33,817

 

1,613

 

12,718

 

284,618

 

Year ended 31 December 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchased

 

 

 

 

 

 

 

 

 

 

or 

 

 

 

 

 

 

 

 

 

 

originated

 

 

 

 

 

 

 

 

 

 

credit-

 

 

 

 

Stage 1

 

Stage 2

 

Stage 3

 

impaired

 

Total

 

    

£m

    

£m

    

£m

    

£m

    

£m

Loans and advances to banks

 

 

 

 

 

 

 

 

 

 

At 1 January 2019

 

6,282

    

 3

    

 —

    

 —

    

6,285

Exchange and other adjustments

 

(218)

 

 —

 

 —

 

 —

 

(218)

Additions (repayments)

 

3,713

 

(3)

 

 —

 

 —

 

3,710

At 31 December 2019

 

9,777

 

 —

 

 —

 

 —

 

9,777

Allowance for impairment losses

 

(2)

 

 —

 

 —

 

 —

 

(2)

Total loans and advances to banks

 

9,775

 

 —

 

 —

 

 —

 

9,775

 

Loans and advances to customers

 

 

 

 

 

 

 

 

 

 

 

 

At 1 January 2019

    

441,531

    

25,345

    

5,741

    

15,391

    

488,008

Exchange and other adjustments

 

(498)

 

(34)

 

47

 

283

 

(202)

Additions (repayments)

 

13,554

 

(2,558)

 

(858)

 

(1,934)

 

8,204

Transfers to Stage 1

 

6,318

 

(6,286)

 

(32)

 

 

 

 —

Transfers to Stage 2

 

(13,084)

 

13,516

 

(432)

 

 

 

 —

Transfers to Stage 3

 

(1,540)

 

(1,440)

 

2,980

 

 

 

 —

 

 

(8,306)

 

5,790

 

2,516

 

 

 

 —

Recoveries

 

 

 

 

 

397

 

28

 

425

Acquisition of portfolios

 

3,694

 

 —

 

 —

 

 —

 

3,694

Financial assets that have been written off

 

 

 

 

 

(1,828)

 

(54)

 

(1,882)

At 31 December 2019

 

449,975

 

28,543

 

6,015

 

13,714

 

498,247

Allowance for impairment losses

 

(675)

 

(995)

 

(1,447)

 

(142)

 

(3,259)

Total loans and advances to customers

 

449,300

 

27,548

 

4,568

 

13,572

 

494,988

 

Debt securities

 

 

 

 

 

 

 

 

 

 

 

 

At 1 January 2019

    

5,238

    

 —

    

 6

    

 —

    

5,244

Exchange and other adjustments

 

(94)

 

 —

 

(2)

 

 —

 

(96)

Additions (repayments)

 

400

 

 —

 

 —

 

 —

 

400

Financial assets that have been written off

 

 

 

 

 

(1)

 

 —

 

(1)

At 31 December 2019

 

5,544

 

 —

 

 3

 

 —

 

5,547

Allowance for impairment losses

 

 —

 

 —

 

(3)

 

 —

 

(3)

Total debt securities

 

5,544

 

 —

 

 —

 

 —

 

5,544

 

 

 

 

 

 

 

 

 

 

 

Total financial assets at amortised cost

 

464,619

 

27,548

 

4,568

 

13,572

 

510,307

 

Movements in Retail mortgage balances were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchased

 

 

 

 

 

 

 

 

 

 

or 

 

 

 

 

 

 

 

 

 

 

originated 

 

 

 

 

 

 

 

 

 

 

credit- 

 

 

 

 

Stage 1

 

Stage 2 

 

Stage 3

 

impaired 

 

Total

 

    

£m

    

£m 

    

£m

    

£m 

    

£m

At 1 January 2019

 

257,797

 

13,654

 

1,393

 

15,391 

 

288,235

Exchange and other adjustments

 

(1)

 

 —

 

 2

 

283

 

284

Additions (repayments)

 

799

 

(1,432)

 

(416)

 

(1,934)

 

(2,983)

Transfers to Stage 1

 

3,060

 

(3,057)

 

(3)

 

 

 

 —

Transfers to Stage 2

 

(7,879)

 

8,242

 

(363)

 

 

 

 —

Transfers to Stage 3

 

(427)

 

(472)

 

899

 

 

 

 —

 

 

(5,246)

 

4,713

 

533

 

 

 

 —

Recoveries

 

 

 

 

 

29

 

28

 

57

Acquisition of portfolios

 

3,694

 

 —

 

 —

 

 —

 

3,694

Financial assets that have been written off

 

 

 

 

 

(35)

 

(54)

 

(89)

At 31 December 2019

 

257,043

 

16,935

 

1,506

 

13,714 

 

289,198

Allowance for impairment losses

 

(23)

 

(281)

 

(122)

 

(142)

 

(568)

Total loans and advances to customers

 

257,020

 

16,654

 

1,384

 

13,572

 

288,630

 

The movement tables are compiled by comparing the position at the reporting date to that at the beginning of the year.

Transfers between stages are deemed to have taken place at the start of the reporting period, with all other movements shown in the stage in which the asset is held at the period end, with the exception of those held within Purchased or originated credit-impaired, which are not transferrable.

Additions (repayments) comprise new loans originated and repayments of outstanding balances throughout the reporting period. Loans which are written off in the period are first transferred to Stage 3 before acquiring a full allowance and subsequent write-off.

Loans and advances to customers include advances securitised under the Group's securitisation and covered bond programmes (see note 12).