Schedule of operating segments |
The table below analyses the Group’s income and profit by segment on an underlying basis and provides a reconciliation through to certain lines in the Group’s statutory income statement. Total income, after net finance income in respect of insurance and investment contracts is also analysed between external and inter-segment income. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Half-year to 30 June 2023 | Net interest income £m | | | Other income, after net finance income1 £m | | | Total income, after net finance income1,2 £m | | | Profit before tax £m | | | External income £m | | | Inter- segment income (expense) £m | | | | | | | | | | | | | | | | | | | | Underlying basis | | | | | | | | | | | | | | | | | | Retail | 5,064 | | | | 1,006 | | | | 6,070 | | | | 2,505 | | | | 6,429 | | | | (359) | | | Commercial Banking | 1,934 | | | | 856 | | | | 2,790 | | | | 1,417 | | | | 2,296 | | | | 494 | | | Insurance, Pensions and Investments | (70) | | | | 619 | | | | 549 | | | | 91 | | | | 621 | | | | (72) | | | Other | 76 | | | | 57 | | | | 133 | | | | 28 | | | | 196 | | | | (63) | | | Group | 7,004 | | | | 2,538 | | | | 9,542 | | | | 4,041 | | | | 9,542 | | | | – | | | Reconciling items: | | | | | | | | | | | | | | | | | | Insurance grossing adjustment | 7 | | | | (139) | | | | (132) | | | | – | | | | | | | | | Market volatility and asset sales | (183) | | | | 117 | | | | (66) | | | | (63) | | | | | | | | | Amortisation of purchased intangibles | – | | | | – | | | | – | | | | (35) | | | | | | | | | Restructuring costs3 | – | | | | – | | | | – | | | | (25) | | | | | | | | | Fair value unwind and other items | (30) | | | | (8) | | | | (38) | | | | (48) | | | | | | | | | Group – statutory | 6,798 | | | | 2,508 | | | | 9,306 | | | | 3,870 | | | | | | | | |
1 Other income and total income, after net finance income in respect of insurance and investment contracts. 2 Total income, after net finance income does not include operating lease depreciation which, on a statutory basis, is included within operating costs. 3 Restructuring costs related to merger, acquisition and integration costs. NOTES TO THE CONDENSED CONSOLIDATED HALF-YEAR FINANCIAL STATEMENTS (continued) Note 3: Segmental analysis (continued) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Half-year to 30 June 20221 | Net interest income £m | | | Other income, after net finance income2 £m | | | Total income, after net finance income2,3 £m | | | Profit before tax £m | | | External income £m | | | Inter- segment income (expense) £m | | | | | | | | | | | | | | | | | | | | Underlying basis | | | | | | | | | | | | | | | | | | Retail | 4,628 | | | | 854 | | | | 5,482 | | | | 2,320 | | | | 5,733 | | | | (251) | | | Commercial Banking | 1,520 | | | | 731 | | | | 2,251 | | | | 904 | | | | 2,077 | | | | 174 | | | Insurance, Pensions and Investments | (43) | | | | 533 | | | | 490 | | | | 35 | | | | 503 | | | | (13) | | | Other | 30 | | | | 249 | | | | 279 | | | | 403 | | | | 189 | | | | 90 | | | Group | 6,135 | | | | 2,367 | | | | 8,502 | | | | 3,662 | | | | 8,502 | | | | – | | | Reconciling items: | | | | | | | | | | | | | | | | | | Insurance grossing adjustment | (24) | | | | (105) | | | | (129) | | | | – | | | | | | | | | | | | | | | | | | | | | | | | | | | Market volatility and asset sales | (12) | | | | (352) | | | | (364) | | | | (359) | | | | | | | | | Amortisation of purchased intangibles | – | | | | – | | | | – | | | | (35) | | | | | | | | | Restructuring costs4 | – | | | | – | | | | – | | | | (47) | | | | | | | | | Fair value unwind and other items | (62) | | | | 1 | | | | (61) | | | | (72) | | | | | | | | | Group – statutory | 6,037 | | | | 1,911 | | | | 7,948 | | | | 3,149 | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Half-year to 31 December 20221 | Net interest income £m | | | Other income, after net finance income2 £m | | | Total income, after net finance income2,3 £m | | | Profit before tax £m | | | External income £m | | | Inter- segment income (expense) £m | | | | | | | | | | | | | | | | | | | | Underlying basis | | | | | | | | | | | | | | | | | | Retail | 5,146 | | | | 877 | | | | 6,023 | | | | 2,177 | | | | 6,322 | | | | (299) | | | Commercial Banking | 1,927 | | | | 834 | | | | 2,761 | | | | 957 | | | | 2,253 | | | | 508 | | | Insurance, Pensions and Investments | (58) | | | | 427 | | | | 369 | | | | (97) | | | | 407 | | | | (38) | | | Other | 22 | | | | 161 | | | | 183 | | | | 329 | | | | 354 | | | | (171) | | | Group | 7,037 | | | | 2,299 | | | | 9,336 | | | | 3,366 | | | | 9,336 | | | | – | | | Reconciling items: | | | | | | | | | | | | | | | | | | Insurance grossing adjustment | – | | | | (96) | | | | (96) | | | | – | | | | | | | | | | | | | | | | | | | | | | | | | | | Market volatility and asset sales | (123) | | | | (1,489) | | | | (1,612) | | | | (1,619) | | | | | | | | | Amortisation of purchased intangibles | – | | | | – | | | | – | | | | (35) | | | | | | | | | Restructuring costs4 | – | | | | – | | | | – | | | | (33) | | | | | | | | | Fair value unwind and other items | (29) | | | | (6) | | | | (35) | | | | (46) | | | | | | | | | | | | | | | | | | | | | | | | | | | Group – statutory | 6,885 | | | | 708 | | | | 7,593 | | | | 1,633 | | | | | | | | |
1 Restated for presentational changes and for the adoption of IFRS 17; see notes 1, 24 and 25. 2 Other income and total income, after net finance income in respect of insurance and investment contracts. 3 Total income, after net finance income does not include operating lease depreciation which, on a statutory basis, is included within operating costs. 4 Restructuring costs related to merger, acquisition and integration costs.
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Schedule of reconciliation of underlying basis to statutory results |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Segment external assets | | Segment customer deposits | | Segment external liabilities | | At 30 Jun 2023 £m | | | At 31 Dec 20221 £m | | | At 30 Jun 2023 £m | | | At 31 Dec 2022 £m | | | At 30 Jun 2023 £m | | | At 31 Dec 20221 £m | | | | | | | | | | | | | | | | | | | | Retail | 372,926 | | | | 372,485 | | | | 305,887 | | | | 310,765 | | | | 310,501 | | | | 314,091 | | | Commercial Banking | 155,267 | | | | 147,477 | | | | 163,580 | | | | 163,828 | | | | 210,147 | | | | 202,070 | | | Insurance, Pensions and Investments | 173,647 | | | | 170,777 | | | | – | | | | – | | | | 169,088 | | | | 168,357 | | | Other | 180,964 | | | | 182,655 | | | | 346 | | | | 738 | | | | 148,586 | | | | 144,965 | | | Total Group | 882,804 | | | | 873,394 | | | | 469,813 | | | | 475,331 | | | | 838,322 | | | | 829,483 | | |
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