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OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES
 12 Months Ended
Dec. 31, 2022
Disclosure of offsetting of financial assets and financial liabilities [Abstract]  
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES
NOTE 51: OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES
The following information relates to financial assets and liabilities which have been offset in the balance sheet and those which have not been offset but for which the Group has enforceable master netting agreements or collateral arrangements in place with counterparties.
Related amounts where
set off in the balance
sheet not permitted1
Potential
net amounts
if offset
of related
amounts
permitted
£m
Gross
amounts of
assets and
liabilities2
£m
Amount
offset in
the balance
sheet3
£m
Net amounts
presented in
the balance
sheet
£m		Cash
collateral
received/
pledged
£m		Non-cash
collateral
received/
pledged
£m
At 31 December 2022
Financial assets
Financial assets at fair value through profit or loss:
Excluding reverse repurchase agreements168,828 – 168,828 – (1,127)167,701 
Reverse repurchase agreements32,064 (20,283)11,781 (87)(11,694)– 
200,892 (20,283)180,609 (87)(12,821)167,701 
Derivative financial instruments76,437 (51,684)24,753 (3,951)(15,839)4,963 
Financial assets at amortised cost:
Loans and advances to banks10,632 – 10,632 (2,823)– 7,809 
Loans and advances to customers458,229 (3,330)454,899 (907)(2,171)451,821 
Reverse repurchase agreements55,675 (10,810)44,865 – (44,865)– 
Debt securities9,926 – 9,926 – – 9,926 
534,462 (14,140)520,322 (3,730)(47,036)469,556 
Financial assets at fair value through other comprehensive income23,154 – 23,154 – (6,202)16,952 
Financial liabilities
Deposits from banks7,266 – 7,266 (2,169)– 5,097 
Customer deposits476,255 (924)475,331 (1,869)(2,171)471,291 
Repurchase agreements at amortised cost59,406 (10,810)48,596 – (48,596)– 
Financial liabilities at fair value through profit or loss:
Excluding repurchase agreements6,718 – 6,718 – – 6,718 
Repurchase agreements31,320 (20,283)11,037 – (11,037)– 
38,038 (20,283)17,755 – (11,037)6,718 
Derivative financial instruments78,132 (54,090)24,042 (3,731)(14,490)5,821 
1    The Group enters into derivatives and repurchase and reverse repurchase agreements with various counterparties which are governed by industry standard master netting agreements. The Group holds and provides cash and securities collateral in respective of derivative transactions covered by these agreements. The right to set off balances under these master netting agreements or to set off cash and securities collateral only arises in the event of non-payment or default and, as a result, these arrangements do not qualify for offsetting under IAS 32.
2    Net of impairment allowances.
3    The amounts offset in the balance sheet as shown above mainly represent derivatives and repurchase agreements with central clearing houses which meet the criteria for offsetting under IAS 32.
The effects of over-collateralisation have not been taken into account in the above table.
Related amounts where
set off in the balance
sheet not permitted1
Potential
net amounts
if offset
of related
amounts
permitted
£m
Gross
amounts of
assets and
liabilities2
£m
Amount
offset in
the balance
sheet3
£m
Net amounts
presented in
the balance
sheet
£m		Cash
collateral
received/
pledged
£m		Non-cash
collateral
received/
pledged
£m
At 31 December 2021
Financial assets
Financial assets at fair value through profit or loss:
Excluding reverse repurchase agreements191,850 – 191,850 – (2,456)189,394 
Reverse repurchase agreements33,834 (18,913)14,921 (20)(14,901)– 
225,684 (18,913)206,771 (20)(17,357)189,394 
Derivative financial instruments50,205 (28,154)22,051 (5,658)(12,645)3,748 
Financial assets at amortised cost:
Loans and advances to banks7,001 – 7,001 (1,731)– 5,270 
Loans and advances to customers449,732 (1,165)448,567 (798)(1,506)446,263 
Reverse repurchase agreements64,474 (9,721)54,753 – (54,753)– 
Debt securities6,835 – 6,835 – (267)6,568 
528,042 (10,886)517,156 (2,529)(56,526)458,101 
Financial assets at fair value through other comprehensive income28,137 – 28,137 – (4,981)23,156 
Financial liabilities
Deposits from banks7,647 – 7,647 (5,678)– 1,969 
Customer deposits477,509 (1,165)476,344 – (1,506)474,838 
Repurchase agreements at amortised cost40,846 (9,721)31,125 – (31,125)– 
Financial liabilities at fair value through profit or loss:
Excluding repurchase agreements8,161 – 8,161 – – 8,161 
Repurchase agreements33,875 (18,913)14,962 – (14,962)– 
42,036 (18,913)23,123 – (14,962)8,161 
Derivative financial instruments46,214 (28,154)18,060 (2,529)(15,063)468 
1    The Group enters into derivatives and repurchase and reverse repurchase agreements with various counterparties which are governed by industry standard master netting agreements. The Group holds and provides cash and securities collateral in respective of derivative transactions covered by these agreements. The right to set off balances under these master netting agreements or to set off cash and securities collateral only arises in the event of non-payment or default and, as a result, these arrangements do not qualify for offsetting under IAS 32.
2    Net of impairment allowances.
3    The amounts offset in the balance sheet as shown above mainly represent derivatives and repurchase agreements with central clearing houses which meet the criteria for offsetting under IAS 32.
The effects of over-collateralisation have not been taken into account in the above table.