Annual Financial Report (part 2 of 2)

Companies

HSBC UK BANK PLC (RT90)

UK 100

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Contents
77	Consolidated income statement
78	Consolidated statement of comprehensive income
79	Consolidated balance sheet
80	Consolidated statement of changes in equity
81	Consolidated statement of cash flows
82	HSBC UK Bank plc balance sheet
83	HSBC UK Bank plc statement of changes in equity
84	HSBC UK Bank plc statement of cash flows

Contents
85	1	Basis of preparation and material accounting policies
93	2	Net fee income
93	3	Employee compensation and benefits
98	4	Auditors' remuneration
98	5	Tax
100	6	Dividends
100	7	Fair values of financial instruments carried at fair value
101	8	Fair values of financial instruments not carried at fair value
103	9	Derivatives
105	10	Financial investments
106	11	Assets pledged, collateral received and assets transferred
107	12	Interests in joint ventures
107	13	Investments in subsidiaries
108	14	Structured entities
108	15	Goodwill and intangible assets
109	16	Prepayments, accrued income and other assets


109	17	Debt securities in issue
109	18	Accruals, deferred income and other liabilities
110	19	Provisions
112	20	Subordinated liabilities
113	21	Maturity analysis of assets, liabilities and off-balance sheet commitments
113	21
117	22	Offsetting of financial assets and financial liabilities
118	23	Called up share capital and other equity instruments
119	24	Contingent liabilities, contractual commitments, guarantees and contingent assets
120	25	Finance lease receivables
120	26	Legal proceedings and regulatory matters
121	27	Related party transactions
123	28	Business acquisitions
124	29	Events after the balance sheet date
124	30	HSBC UK Bank plc's subsidiaries and joint ventures

for the year ended 31 December
		2023	2022
	Notes	£m	£m
Net interest income		7,787	6,203
- interest income^1,2,3		12,915	7,592
- interest expense		(5,128)	(1,389)
Net fee income	2	1,284	1,245
- fee income		1,554	1,493
- fee expense		(270)	(248)
Net income from financial instruments held for trading or managed on a fair value basis		414	384
Gain on acquisition of subsidiary⁴		1,307	-
Other operating income		15	120
Net operating income before change in expected credit losses and other credit impairment charges		10,807	7,952
Change in expected credit losses and other credit impairment charges		(421)	(482)
Net operating income		10,386	7,470
Employee compensation and benefits	3	(1,007)	(1,079)
General and administrative expenses		(2,265)	(2,271)
Depreciation and impairment of property, plant and equipment and right-of-use assets		(116)	(164)
Amortisation and impairment of intangible assets		(319)	(318)
Total operating expenses		(3,707)	(3,832)
Operating profit		6,679	3,638
Profit before tax		6,679	3,638
Tax expense	5	(1,425)	(762)
Profit for the year		5,254	2,876
Attributable to:
- shareholders of the parent company		5,249	2,871
- non-controlling interests		5	5
Profit for the year		5,254	2,876

for the year ended 31 December
	2023	2022
	£m	£m
Profit for the year	5,254	2,876
Other comprehensive income/(expense)
Items that will be reclassified subsequently to profit or loss when specific conditions are met:
Debt instruments at fair value through other comprehensive income	66	(300)
- fair value gains/(losses)	16	(385)
- fair value (gains)/losses transferred to the income statement on disposal	66	(37)
- expected credit recoveries recognised in the income statement	-	(1)
- income taxes	(16)	123
Cash flow hedges	1,031	(1,234)
- fair value gains/(losses)	548	(1,884)
- fair value losses reclassified to the income statement	884	180
- income taxes	(401)	470
Exchange differences	8	(2)
- other exchange differences	8	(2)
Items that will not be reclassified subsequently to profit or loss:
Remeasurement of defined benefit asset/liability	(128)	(1,023)
- before income taxes	(176)	(1,603)
- income taxes¹	48	580
Other comprehensive income/(expense) for the year, net of tax	977	(2,559)
Total comprehensive income for the year	6,231	317
Attributable to:
- shareholders of the parent company	6,226	312
- non-controlling interests	5	5
Total comprehensive income for the year	6,231	317

at 31 December
		2023	2022
	Notes	£m	£m
Assets
Cash and balances at central banks		65,719	94,407
Items in the course of collection from other banks		284	353
Financial assets mandatorily measured at fair value through profit or loss	7	135	108
Derivatives	9	178	546
Loans and advances to banks		7,980	6,357
Loans and advances to customers		211,887	204,143
Reverse repurchase agreements - non-trading		7,686	7,406
Financial investments	10	26,315	16,092
Prepayments, accrued income and other assets	16	8,321	8,762
Interests in joint ventures	12	8	9
Goodwill and intangible assets	15	4,363	4,258
Total assets		332,876	342,441
Liabilities and equity
Liabilities
Deposits by banks		10,843	10,721
Customer accounts		268,345	281,095
Repurchase agreements - non-trading		4,652	9,333
Items in the course of transmission to other banks		411	308
Derivatives	9	108	304
Debt securities in issue	17	1,988	1,299
Accruals, deferred income and other liabilities	18	4,124	3,543
Current tax liabilities		276	173
Provisions	19	350	424
Deferred tax liabilities	5	1,111	666
Subordinated liabilities	20	14,598	12,349
Total liabilities		306,806	320,215
Equity
Called up share capital	23	-	-
Share premium account	23	9,015	9,015
Other equity instruments	23	2,196	2,196
Other reserves		7,226	6,121
Retained earnings		7,573	4,834
Total shareholders' equity		26,010	22,166
Non-controlling interests		60	60
Total equity		26,070	22,226
Total liabilities and equity		332,876	342,441

for the year ended 31 December
				Other reserves
	Called up share capital and share premium	Other equity instru-ments	Retained earnings	Financial assets at FVOCI reserve	Cash flow hedging reserve	Group re-organisa-tion reserve²	Total share- holders' equity	Non-controlling interests	Total equity
	£m	£m	£m	£m	£m	£m	£m	£m	£m
At 1 Jan 2023	9,015	2,196	4,834	(246)	(1,324)	7,691	22,166	60	22,226
Profit for the year	-	-	5,249	-	-	-	5,249	5	5,254
Other comprehensive income (net of tax)	-	-	(128)	74	1,031	-	977	-	977
- debt instruments at fair value through other comprehensive income	-	-	-	66	-	-	66	-	66
- cash flow hedges	-	-	-	-	1,031	-	1,031	-	1,031
- remeasurement of defined benefit asset/liability	-	-	(128)	-	-	-	(128)	-	(128)
- exchange differences	-	-	-	8	-	-	8	-	8
Total comprehensive income for the year	-	-	5,121	74	1,031	-	6,226	5	6,231
Dividends to shareholders	-	-	(2,411)	-	-	-	(2,411)	(5)	(2,416)
Other movements¹	-	-	29	-	-	-	29	-	29
At 31 Dec 2023	9,015	2,196	7,573	(172)	(293)	7,691	26,010	60	26,070

At 1 Jan 2022	9,015	2,196	4,877	56	(90)	7,691	23,745	60	23,805
Profit for the year	-	-	2,871	-	-	-	2,871	5	2,876
Other comprehensive income (net of tax)	-	-	(1,023)	(302)	(1,234)	-	(2,559)	-	(2,559)
- debt instruments at fair value through other comprehensive income	-	-	-	(300)	-	-	(300)	-	(300)
- cash flow hedges	-	-	-	-	(1,234)	-	(1,234)	-	(1,234)
- remeasurement of defined benefit asset/liability	-	-	(1,023)	-	-	-	(1,023)	-	(1,023)
- exchange differences	-	-	-	(2)	-	-	(2)	-	(2)
Total comprehensive income for the year	-	-	1,848	(302)	(1,234)	-	312	5	317
Dividends to shareholders	-	-	(1,929)	-	-	-	(1,929)	(5)	(1,934)
Other movements¹	-	-	38	-	-	-	38	-	38
At 31 Dec 2022	9,015	2,196	4,834	(246)	(1,324)	7,691	22,166	60	22,226

for the year ended 31 December
				Other reserves
	Called up share capital and share premium	Other equity instruments	Retained earnings	Financial assets at FVOCI reserve	Cash flow hedging reserve	Group re-organisation² reserve	Total share- holders' equity
	£m	£m	£m	£m	£m	£m	£m
At 1 Jan 2023	9,015	2,196	4,405	(246)	(1,324)	5,248	19,294
Profit for the year	-	-	3,683	-	-	-	3,683
Other comprehensive expense (net of tax)	-	-	(128)	68	1,031	-	971
- debt instruments at fair value through other comprehensive income	-	-	-	60	-	-	60
- cash flow hedges	-	-	-	-	1,031	-	1,031
- remeasurement of defined benefit asset/liability	-	-	(128)	-	-	-	(128)
- exchange differences	-	-	-	8	-	-	8
Total comprehensive income for the year	-	-	3,555	68	1,031	-	4,654
Dividends to shareholders	-	-	(2,411)	-	-	-	(2,411)
Other movements¹	-	-	29	-	-	-	29
At 31 Dec 2023	9,015	2,196	5,578	(178)	(293)	5,248	21,566

At 1 Jan 2022	9,015	2,196	4,438	56	(90)	5,248	20,863
Profit for the year	-	-	2,882	-	-	-	2,882
Other comprehensive income (net of tax)	-	-	(1,023)	(302)	(1,234)	-	(2,559)
- debt instruments at fair value through other comprehensive income	-	-	-	(300)	-	-	(300)
- cash flow hedges	-	-	-	-	(1,234)	-	(1,234)
- remeasurement of defined benefit asset/liability	-	-	(1,023)	-	-	-	(1,023)
- exchange differences	-	-	-	(2)	-	-	(2)
Total comprehensive income for the year	-	-	1,859	(302)	(1,234)	-	323
Dividends to shareholders	-	-	(1,929)	-	-	-	(1,929)
Other movements¹	-	-	37	-	-	-	37
At 31 Dec 2022	9,015	2,196	4,405	(246)	(1,324)	5,248	19,294

Origination CRR	Significance trigger - PD that increases by
0.1-1.2	15 bps
2.1-3.3	30 bps

Origination CRR	Additional significance criteria - Number of CRR grade notches deterioration required to identify as significant credit deterioration (stage 2) (> or equal to)
0.1	5 notches
1.1-4.2	4 notches
4.3-5.1	3 notches
5.2-7.1	2 notches
7.2-8.2	1 notch
8.3	0 notch

Model	Regulatory capital	IFRS 9
PD	Through the cycle (represents long-run average PD throughout a full economic cycle). The definition of default includes a backstop of 90+ days past due.	Point in time (based on current conditions, adjusted to take into account estimates of future conditions that will impact PD). Default backstop of 90+ days past due for all portfolios.
EAD	Cannot be lower than current balance.	Amortisation captured for term products.
LGD	Downturn LGD (consistent losses expected to be suffered during a severe but plausible economic downturn). Regulatory floors may apply to mitigate risk of underestimating downturn LGD due to lack of historical data. Discounted using cost of capital. All collection costs included.	Expected LGD (based on estimate of loss given default including the expected impact of future economic conditions such as changes in value of collateral). No floors. Discounted using the original effective interest rate of the loan. Only costs associated with obtaining/selling collateral included.
Other		Discounted back from point of default to balance sheet date.

	Year ended
	31 Dec	31 Dec
	2023	2022
Net fee income by product	£m	£m
Account services	272	257
Funds under management	120	114
Cards	582	580
Credit facilities	147	130
Imports/exports	28	30
Insurance agency commission	11	25
Receivables finance	86	96
Other	308	261
Fee income	1,554	1,493
Less: fee expense	(270)	(248)
Net fee income	1,284	1,245
Net fee income by global business
Wealth and Personal Banking	588	590
Commercial Banking	922	879
Global Banking and Markets	(224)	(222)
Corporate Centre	(2)	(2)

	2023	2022
	£m	£m
Wages and salaries	1,025	971
Social security costs	113	106
Post-employment benefits¹	(131)	2
Year ended 31 Dec	1,007	1,079

Average number of persons employed by the group during the year
	2023¹	2022¹
Wealth and Personal Banking	15,549	15,923
Commercial Banking	4,796	4,491
Global Banking and Markets	60	54
Corporate Centre	10	33
Year ended 31 Dec	20,415	20,501

	2023	2022
	£m	£m
Restricted share awards	10	8
Savings-related and other share award option plans	9	9
Year ended 31 Dec	19	17

HSBC Group share awards
Award	Policy
Deferred share awards (including annual incentive awards, LTI awards delivered in shares) and GPSP	An assessment of performance over the relevant period ending on 31 December is used to determine the amount of the award to be granted. - Deferred awards generally require employees to remain in employment over the vesting period and are generally not subject to performance conditions after the grant date. - Deferred share awards generally vest over a period of three, five or seven years. - Vested shares may be subject to a retention requirement post-vesting. - Awards are subject to malus and clawback provisions.
International Employee Share Purchase Plan ('ShareMatch')	The plan was first introduced in Hong Kong in 2013 and now includes employees based in 31 jurisdictions. - Shares are purchased in the market each quarter up to a maximum value of £750, or the equivalent in local currency. - Matching awards are added at a ratio of one free share for every three purchased. - Matching awards vest subject to continued employment and the retention of the purchased shares for a maximum period of two years and nine months.

Movement on HSBC Group share option plans
	Savings-related share option plans
	Number	WAEP¹
	(000s)	£
Outstanding at 1 Jan 2023	60,350	2.85
Granted during the year	11,496	4.76
Exercised during the year	(26,249)	2.71
Expired during the year	(658)	4.76
Forfeited during the year	(2,261)	3.32
Outstanding at 31 Dec 2023	42,678	3.44
- of which exercisable	3,527	2.68
Weighted average remaining contractual life (years)	2.44

Outstanding at 1 Jan 2022	64,073	2.85
Granted during the year	4,523	4.30
Exercised during the year	(1,517)	3.56
Expired during the year	(1,360)	4.95
Forfeited during the year	(5,369)	2.94
Outstanding at 31 Dec 2022	60,350	2.88
- of which exercisable	1.761	4.35
Weighted average remaining contractual life (years)	2.23

Net asset/(liability) under defined benefit pension plans
	Fair value of plan assets	Present value of defined benefit obligations	Net defined benefit assets/(liabilities)
	£m	£m	£m
At 1 Jan 2023	20,853	(15,596)	5,257
Service cost	-	(8)	(8)
- current service cost	-	(11)	(11)
- past service cost	-	3	3
Net interest income/(cost) on the net defined benefit asset/(liability)	1,003	(744)	259
Remeasurement effects recognised in other comprehensive income	(181)	6	(175)
- return on plan assets (excluding interest income)	(181)	-	(181)
- actuarial gains/(losses) financial assumptions	-	(98)	(98)
- actuarial gains/(losses) demographic assumptions	-	287	287
- actuarial gains/(losses) experience adjustments	-	(183)	(183)
Transfers to/from the scheme	30	(25)	5
Benefits paid	(855)	855	-
Other movements¹	1	(2)	(1)
At 31 Dec 2023	20,851	(15,514)	5,337

Movement on HSBC Group share awards
	2023	2022
	Number	Number
	(000s)	(000s)
Restricted share awards outstanding at 1 Jan	2,981	2,457
Additions during the year	1,826	1,976
Released in the year	(1,582)	(1,404)
Forfeited in the year	(142)	(48)
Restricted share awards outstanding at 31 Dec	3,083	2,981
Weighted average fair value of awards granted (£)	5.55	4.03

Income statement charge/(credit)
	2023	2022
	£m	£m
Defined benefit pension plans	(241)	(95)
Defined contribution pension plans	110	97
Pension plans	(131)	2
Year ended 31 Dec	(131)	2

Net asset/(liability) under defined benefit pension plans (continued)
	Fair value of plan assets	Present value of defined benefit obligations	Net defined benefit assets/(liabilities)
	£m	£m	£m
At 1 Jan 2022	30,578	(23,833)	6,745
Service cost	-	(25)	(25)
- current service cost	-	(10)	(10)
- past service cost	-	(15)	(15)
Net interest income/(cost) on the net defined benefit asset/(liability)	571	(443)	128
Remeasurement effects recognised in other comprehensive income	(9,343)	7,740	(1,603)
- return on plan assets (excluding interest income)	(9,343)	-	(9,343)
- actuarial gains/(losses) financial assumptions	-	8,561	8,561
- actuarial gains/(losses) demographic assumptions	-	(100)	(100)
- actuarial gains/(losses) experience adjustments	-	(721)	(721)
Transfers to/from the scheme	36	(27)	9
Benefits paid	(992)	992	-
Other movements¹	3	-	3
At 31 Dec 2022	20,853	(15,596)	5,257

Benefits expected to be paid from plan
	2024	2025	2026	2027	2028	2029-2033
	£m	£m	£m	£m	£m	£m
The plan¹	882	910	938	968	998	5,480

Fair value of plan assets by asset classes
	At 31 Dec 2023			At 31 Dec 2022
	Value	Quoted market price in active market	No quoted market price in active market	Value	Quoted market price in active market	No quoted market price in active market
	£m	£m	£m	£m	£m	£m
The plan
Fair value of plan assets	20,851	11,768	9,083	20,853	11,550	9,303
- equities¹	65	-	65	93	-	93
- bonds fixed income²	4,126	3,716	410	4,386	4,002	384
- bonds index linked	8,077	8,077	-	7,869	7,869	-
- derivatives	832	-	832	998	-	998
- property	651	-	651	700	-	700
- pooled investment vehicles	7,125	-	7,125	7,128	-	7,128
- other	(25)	(25)	-	(321)	(321)	-

Key actuarial assumptions for the plan
	Discount rate	Inflation rate (RPI)	Inflation rate (CPI)	Rate of increase for pensions	Rate of pay increase
	%	%	%	%	%
UK
At 31 Dec 2023	4.65	3.23	2.67	3.14	3.42
At 31 Dec 2022	4.93	3.39	2.84	3.27	3.34

Mortality tables and average life expectancy at age 60 for the plan
	Mortality table	Life expectancy at age 60 for a male member currently:		Life expectancy at age 60 for a female member currently:
	Mortality table	Aged 60	Aged 40	Aged 60	Aged 40
UK
At 31 Dec 2023	SAPS S3¹	26.2	27.7	28.3	29.8
At 31 Dec 2022	SAPS S3¹	27.1	28.6	28.4	29.9

The effect of changes in key assumptions on the plan
	Impact on HSBC Bank (UK) Pension Scheme Obligation
	Financial impact of increase		Financial impact of decrease
	2023	2022	2023	2022
	£m	£m	£m	£m
Discount rate - increase/decrease of 0.25%	(470)	(483)	495	509
Inflation rate (RPI/CPI) - increase/decrease of 0.25%	392	387	(390)	(371)
Pension payments and deferred pensions - increase/decrease of 0.25%	488	457	(463)	(431)
Pay - increase/decrease of 0.25%	6	8	(5)	(8)
Change in mortality - increase/decrease of 1 year	481	390	(481)	(405)

	2023	2022
	£000	£000
Fees paid to non-executive Directors	1,519	1,406
Salaries and other emoluments¹	2,559	2,418
Annual incentives²	1,362	1,160
Long-term incentives³	1,013	781
Year ended 31 Dec	6,453	5,765

	2023	2022
	£m	£m
Audit fees payable to PwC	6.9	5.4
Assurance fees payable to PwC	2.3	2.8
Year ended 31 Dec	9.2	8.2

Fees payable by the group to PwC
	2023	2022
	£m	£m
Audit fees for HSBC UK Bank plc's statutory audit¹	4.7	4.3
Fees for other services provided to the group	4.5	3.9
- audit of the group's subsidiaries	2.2	1.1
- audit-related assurance services²	2.2	1.9
- other assurance services³	0.1	0.9
Year ended 31 Dec	9.2	8.2

Movement of deferred tax assets and liabilities
	Loan impairment provisions	Cash flow hedges	FVOCI reserves	Defined benefit pension	Fixed and intangible assets	Other	Total
	£m	£m	£m	£m	£m	£m	£m
The group
At 1 Jan 2023	92	516	92	(1,472)	84	22	(666)
Income statement	(11)	-	(16)	(70)	(1)	(17)	(115)
Other comprehensive income	-	(401)	(24)	48	-	-	(377)
Acquisition of subsidiary	(7)	-	24	-	(25)	55	47
At 31 Dec 2023	74	115	76	(1,494)	58	60	(1,111)
Assets	74	115	76	-	58	60	383
Liabilities	-	-	-	(1,494)	-	-	(1,494)

At 1 Jan 2022	122	45	(26)	(2,226)	102	14	(1,969)
Income statement	(30)	-	-	174	(18)	(12)	114
Other comprehensive income	-	470	118	580	-	20	1,188
Other adjustments	-	1	-	-	-	-	1
At 31 Dec 2022	92	516	92	(1,472)	84	22	(666)
Assets	92	516	92	-	84	22	806
Liabilities	-	-	-	(1,472)	-	-	(1,472)

The bank
At 1 Jan 2023	85	516	89	(1,472)	68	24	(690)
Income statement	(17)	-	-	(70)	(1)	4	(84)
Other comprehensive income	-	(401)	(24)	48	-	-	(377)
At 31 Dec 2023	68	115	65	(1,494)	67	28	(1,151)
Assets	68	115	65	-	67	28	343
Liabilities	-	-	-	(1,494)	-	-	(1,494)

Dividends to the shareholder of the parent company
	2023		2022
	£ per share	£m	£ per share	£m
Dividends paid on ordinary shares
Interim dividend in respect of the previous year	10,779	539	9,820	491
Interim dividend in respect of the current year	33,159	1,658	25,919	1,296
Total	43,938	2,197	35,739	1,787

Total coupons on capital securities classified as equity
		2023	2022
	First call date	£m	£m
Undated Subordinated Additional Tier 1 instruments
- £1,096m	Dec 2019	106	70
- £1,100m	Dec 2024	108	72
Total		214	142

Financial instruments carried at fair value and bases of valuation
		2023								2022
		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
The group		£m		£m		£m		£m		£m		£m		£m		£m
Recurring fair value measurements at 31 Dec
Assets
Financial assets mandatorily measured at fair value through profit or loss		89		-		46		135		72		-		36		108
Derivatives		2		173		3		178		14		532		-		546
Financial investments		14,284		212		-		14,496		10,757		175		-		10,932
Liabilities
Derivatives		-		108		-		108		-		304		-		304
The bank
Recurring fair value measurements at 31 Dec
Assets
Financial assets mandatorily measured at fair value through profit or loss	89		-		46		135		72		-		36		108
Derivatives	2		173		-		175		14		532		-		546
Financial investments	14,284		212		-		14,496		10,757		175		-		10,932
Liabilities
Derivatives	-		108		-		108		-		304		-		304

8	Fair values of financial instruments not carried at fair value
Fair values of financial instruments not carried at fair value and bases of valuation
			Fair value
		Carrying amount	Quoted market price Level 1	Observable inputs Level 2	Significant unobservable inputs Level 3	Total
		£m	£m	£m	£m	£m
The group
At 31 Dec 2023
Assets
Loans and advances to banks		7,980	-	7,979	-	7,979
Loans and advances to customers		211,887	-	-	209,462	209,462
Reverse repurchase agreements - non-trading		7,686	-	7,686	-	7,686
Financial investments - at amortised cost		11,819	9,931	1,639	-	11,570
Liabilities
Deposits by banks		10,843	-	10,843	-	10,843
Customer accounts		268,345	-	268,345	-	268,345
Repurchase agreements - non-trading		4,652	-	4,652	-	4,652
Debt securities in issue		1,988	-	1,568	416	1,984
Subordinated liabilities		14,598	-	14,678	-	14,678

At 31 Dec 2022
Assets
Loans and advances to banks		6,357	-	6,357	-	6,357
Loans and advances to customers		204,143	-	-	199,957	199,957
Reverse repurchase agreements - non-trading		7,406	-	7,406	-	7,406
Financial investments - at amortised cost		5,160	4,772	-	-	4,772
Liabilities
Deposits by banks		10,721	-	10,721	-	10,721
Customer accounts		281,095	-	281,095	-	281,095
Repurchase agreements - non-trading		9,333	-	9,333	-	9,333
Debt securities in issue		1,299	-	1,094	185	1,279
Subordinated liabilities		12,349	-	11,765	-	11,765

Fair values of financial instruments not carried at fair value and bases of valuation (continued)
		Fair value
	Carrying amount	Quoted market price Level 1	Observable inputs Level 2	Significant unobservable inputs Level 3	Total
	£m	£m	£m	£m	£m
The bank
At 31 Dec 2023
Assets
Loans and advances to banks	13,642	-	13,646	-	13,646
Loans and advances to customers	201,014	-	-	198,552	198,552
Reverse repurchase agreements - non-trading	7,686	-	7,686	-	7,686
Financial investments held at amortised cost	11,608	9,931	1,469	-	11,400
Liabilities
Deposits by banks	14,120	-	14,120	-	14,120
Customer accounts	262,342	-	262,342	-	262,342
Repurchase agreements - non-trading	4,652	-	4,652	-	4,652
Debt securities in issue	1,564	-	1,568	-	1,568
Subordinated liabilities	14,598	-	14,678	-	14,678

At 31 Dec 2022
Assets
Loans and advances to banks	9,304	-	9,296	-	9,296
Loans and advances to customers	199,666	-	-	195,606	195,606
Reverse repurchase agreements - non-trading	7,406	-	7,406	-	7,406
Financial investments held at amortised cost	5,160	4,772	-	-	4,772
Liabilities
Deposits by banks	11,619	-	11,619	-	11,619
Customer accounts	279,575	-	279,575	-	279,575
Repurchase agreements - non-trading	9,333	-	9,333	-	9,333
Debt securities in issue	1,091	-	1,094	-	1,094
Subordinated liabilities	12,349	-	11,765	-	11,765

Notional contract amounts and fair values of derivatives by product contract type held
	Notional contract amount		Fair value - Assets			Fair value - Liabilities
	Trading	Hedging	Trading	Hedging	Total	Trading	Hedging	Total
The group and bank	£m	£m	£m	£m	£m	£m	£m	£m
Foreign exchange	8,064	75	61	2	63	76	1	77
Interest rate	61,286	74,368	2,042	1,744	3,786	2,019	1,686	3,705
Equities	9	-	3	-	3	-	-	-
Gross total fair values	69,359	74,443	2,106	1,746	3,852	2,095	1,687	3,782
Offset (Note 22)					(3,674)			(3,674)
At 31 Dec 2023	69,359	74,443	2,106	1,746	178	2,095	1,687	108