2019 Half-Year Results - News Release part 2 of 2

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Lloyds Banking Group (LLOY)

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		Page
Condensed consolidated half-year financial statements
Consolidated income statement		58
Consolidated statement of comprehensive income		60
Consolidated balance sheet		61
Consolidated statement of changes in equity		63
Consolidated cash flow statement		66

Notes
1	Accounting policies, presentation and estimates	67
2	Segmental analysis	70
3	Net fee and commission income	72
4	Operating expenses	73
5	Impairment	74
6	Taxation	75
7	Earnings per share	75
8	Financial assets at fair value through profit or loss	76
9	Derivative financial instruments	76
10	Financial assets at amortised cost	77
11	Allowance for impairment losses	80
12	Debt securities in issue	83
13	Post-retirement defined benefit schemes	84
14	Subordinated liabilities	85
15	Share capital	85
16	Other equity instruments	86
17	Provisions for liabilities and charges	87
18	Contingent liabilities and commitments	89
19	Fair values of financial assets and liabilities	92
20	Credit quality of loans and advances to banks and customers	99
21	Dividends on ordinary shares	107
22	Implementation of IFRS 16	107
23	Future accounting developments	108
24	Other information	108


		Half-year to	Half-year to	Half-year to
		30 June	30 June	31 Dec
		2019	2018¹	2018¹
	Note	£m	£m	£m

Interest and similar income		8,399	8,032	8,317
Interest and similar expense		(3,760)	(2,025)	(928)
Net interest income		4,639	6,007	7,389
Fee and commission income		1,428	1,372	1,476
Fee and commission expense		(694)	(674)	(712)
Net fee and commission income	3	734	698	764
Net trading income		11,789	1,522	(5,398)
Insurance premium income		4,431	4,815	4,374
Other operating income		1,547	1,238	682
Other income		18,501	8,273	422
Total income		23,140	14,280	7,811
Insurance claims		(14,009)	(4,709)	1,244
Total income, net of insurance claims		9,131	9,571	9,055
Regulatory provisions		(793)	(807)	(543)
Other operating expenses		(4,862)	(5,191)	(5,188)
Total operating expenses	4	(5,655)	(5,998)	(5,731)
Trading surplus		3,476	3,573	3,324
Impairment	5	(579)	(456)	(481)
Profit before tax		2,897	3,117	2,843
Tax expense	6	(672)	(800)	(654)
Profit for the period		2,225	2,317	2,189

Profit attributable to ordinary shareholders		1,942	2,075	1,900
Profit attributable to other equity holders		251	205	228
Profit attributable to equity holders		2,193	2,280	2,128
Profit attributable to non-controlling interests		32	37	61
Profit for the period		2,225	2,317	2,189

Basic earnings per share	7	2.7p	2.9p	2.6p
Diluted earnings per share	7	2.7p	2.9p	2.6p


	Half-year to	Half-year to	Half-year to
	30 June	30 June	31 Dec
	2019	2018¹	2018¹
	£m	£m	£m

Profit for the period	2,225	2,317	2,189
Other comprehensive income
Items that will not subsequently be reclassified to profit or loss:
Post-retirement defined benefit scheme remeasurements:
Remeasurements before tax	(173)	908	(741)
Tax	44	(206)	159
	(129)	702	(582)
Movements in revaluation reserve in respect of equity shares held at fair value through other comprehensive income:
Change in fair value	1	(97)	-
Tax	12	22	-
	13	(75)	-
Gains and losses attributable to own credit risk:
Gains (losses) before tax	(303)	167	366
Tax	82	(45)	(99)
	(221)	122	267
Share of other comprehensive income of associates and joint ventures	-	-	8

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	(50)	110	(147)
Income statement transfers in respect of disposals	(177)	(203)	(72)
Tax	68	46	73
	(159)	(47)	(146)
Movements in cash flow hedging reserve:
Effective portion of changes in fair value taken to other comprehensive income	1,179	(223)	457
Net income statement transfers	(242)	(423)	(278)
Tax	(250)	182	(69)
	687	(464)	110
Currency translation differences (tax: nil)	1	5	(13)
Other comprehensive income for the period, net of tax	192	243	(356)
Total comprehensive income for the period	2,417	2,560	1,833

Total comprehensive income attributable to ordinary shareholders	2,134	2,318	1,544
Total comprehensive income attributable to other equity holders	251	205	228
Total comprehensive income attributable to equity holders	2,385	2,523	1,772
Total comprehensive income attributable to non-controlling interests	32	37	61
Total comprehensive income for the period	2,417	2,560	1,833


	Note	At 30 June	At 31 Dec
		2019¹	2018
		(unaudited)	(audited)
		£m	£m

Assets
Cash and balances at central banks		57,290	54,663
Items in the course of collection from banks		693	647
Financial assets at fair value through profit or loss	8	155,108	158,529
Derivative financial instruments	9	26,148	23,595
Loans and advances to banks		8,374	6,283
Loans and advances to customers		495,138	484,858
Debt securities		5,434	5,238
Financial assets at amortised cost	10	508,946	496,379
Financial assets at fair value through other comprehensive income		27,078	24,815
Goodwill		2,314	2,310
Value of in-force business		5,326	4,762
Other intangible assets		3,615	3,347
Property, plant and equipment		13,646	12,300
Current tax recoverable		6	5
Deferred tax assets		2,401	2,453
Retirement benefit assets	13	1,509	1,267
Other assets		18,168	12,526
Total assets		822,248	797,598


	Note	At 30 June	At 31 Dec
		2019¹	2018
		(unaudited)	(audited)
Equity and liabilities		£m	£m

Liabilities
Deposits from banks		34,777	30,320
Customer deposits		421,692	418,066
Items in course of transmission to banks		499	636
Financial liabilities at fair value through profit or loss		24,754	30,547
Derivative financial instruments	9	23,026	21,373
Notes in circulation		1,042	1,104
Debt securities in issue	12	97,815	91,168
Liabilities arising from insurance contracts and participating investment contracts		107,409	98,874
Liabilities arising from non-participating investment contracts		14,706	13,853
Other liabilities		26,124	19,633
Retirement benefit obligations	13	250	245
Current tax liabilities		383	377
Deferred tax liabilities		49	-
Other provisions	17	2,858	3,547
Subordinated liabilities	14	17,809	17,656
Total liabilities		773,193	747,399
Equity and liabilities

Equity
Share capital	15	7,076	7,116
Share premium account		17,739	17,719
Other reserves		13,864	13,210
Retained profits		4,769	5,389
Shareholders' equity		43,448	43,434
Other equity instruments	16	5,406	6,491
Total equity excluding non-controlling interests		48,854	49,925
Non-controlling interests		201	274
Total equity		49,055	50,199
Total equity and liabilities		822,248	797,598


	Attributable to equity shareholders
	Share
	capital				Other	Non -
	and	Other	Retained		equity	controlling
	premium	reserves	profits	Total	instruments	interests	Total
	£m	£m	£m	£m	£m	£m	£m


Balance at 1 January 2019	24,835	13,210	5,389	43,434	6,491	274	50,199
Comprehensive income
Profit for the period	-	-	2,193	2,193	-	32	2,225
Other comprehensive income
Post-retirement defined benefit scheme remeasurements, net of tax	-	-	(129)	(129)	-	-	(129)
Movements in revaluation reserve in respect of financial assets held at fair value through other comprehensive income, net of tax:
Debt securities	-	(159)	-	(159)	-	-	(159)
Equity shares	-	13	-	13	-	-	13
Gains and losses attributable to own credit risk, net of tax	-	-	(221)	(221)	-	-	(221)
Movements in cash flow hedging reserve, net of tax	-	687	-	687	-	-	687
Currency translation differences (tax: £nil)	-	1	-	1	-	-	1
Total other comprehensive income	-	542	(350)	192	-	-	192
Total comprehensive income	-	542	1,843	2,385	-	32	2,417
Transactions with owners
Dividends	-	-	(1,523)	(1,523)	-	(91)	(1,614)
Distributions on other equity instruments	-	-	(251)	(251)	-	-	(251)
Issue of ordinary shares	90	-	-	90	-	-	90
Share buyback	(113)	113	(879)	(879)	-	-	(879)
Redemption of preference shares	3	(3)	-	-	-	-	-
Issue of other equity instruments	-	-	(1)	(1)	396	-	395
Redemption of other equity instruments	-	-	-	-	(1,481)	-	(1,481)
Movement in treasury shares	-	-	71	71	-	-	71
Value of employee services:
Share option schemes	-	-	34	34	-	-	34
Other employee award schemes	-	-	88	88	-	-	88
Changes in non-controlling interests	-	-	-	-	-	(14)	(14)
Total transactions with owners	(20)	110	(2,461)	(2,371)	(1,085)	(105)	(3,561)
Realised gains and losses on equity shares held at fair value through other comprehensive income	-	2	(2)	-	-	-	-
Balance at 30 June 2019	24,815	13,864	4,769	43,448	5,406	201	49,055


	Base case	Upside	Downside	Severe downside
	%	%	%	%

Scenario weighting	30	30	30	10

At 30 June 2019
Bank of England base rate	1.25	2.05	0.49	0.11
Unemployment rate	4.3	3.8	5.7	7.0
House price growth	1.5	5.2	(2.3)	(7.4)
Commercial real estate price growth	(0.2)	1.6	(4.9)	(9.5)

At 31 December 2018
Bank of England base rate	1.25	2.34	1.30	0.71
Unemployment rate	4.5	3.9	5.3	6.9
House price growth	2.5	6.1	(4.8)	(7.5)
Commercial real estate price growth	0.4	5.3	(4.7)	(6.4)


		Probability
	Base case	-weighted	Difference
	£m	£m	£m

UK mortgages	501	619	118
Other Retail	1,365	1,386	21
Commercial	1,376	1,433	57
Other	73	73	-
At 30 June 2019	3,315	3,511	196
At 31 December 2018	3,100	3,362	262


		Other	Total
		income,	income,
	Net	net of	net of	Profit		Inter-
	interest	insurance	insurance	(loss)	External	segment
	income	claims	claims	before tax	revenue	revenue
Half-year to 30 June 2019	£m	£m	£m	£m	£m	£m

Underlying basis
Retail	4,366	1,007	5,373	1,983	6,501	(1,128)
Commercial Banking	1,460	733	2,193	992	1,770	423
Insurance and Wealth	58	1,183	1,241	677	939	302
Other	261	227	488	542	85	403
Group	6,145	3,150	9,295	4,194	9,295	-
Reconciling items:
Insurance grossing adjustment	(1,303)	1,418	115	-
Market volatility and asset sales	(87)	(22)	(109)	(296)
Amortisation of purchased intangibles	-	-	-	(34)
Restructuring costs	-	(48)	(48)	(182)
Fair value unwind and other items	(116)	(6)	(122)	(135)
Payment protection insurance provision	-	-	-	(650)
Group - statutory	4,639	4,492	9,131	2,897


	Segment external		Segment customer		Segment external
	assets		deposits		liabilities
	At 30 June	At 31 Dec	At 30 June	At 31 Dec	At 30 June	At 31 Dec
	2019	2018	2019	2018	2019	2018
	£m	£m	£m	£m	£m	£m

Retail	346,979	349,412	252,400	252,808	259,372	259,778
Commercial Banking	158,234	165,030	150,553	148,635	191,275	191,687
Insurance and Wealth	151,165	140,487	13,832	14,063	158,272	147,673
Other	165,870	142,669	4,907	2,560	164,274	148,261
Total Group	822,248	797,598	421,692	418,066	773,193	747,399



Weighted average number of ordinary shares in issue - basic (m)	71,053	72,025	71,257
Adjustment for share options and awards (m)	663	670	612
Weighted average number of ordinary shares in issue - diluted (m)	71,716	72,695	71,869

Basic earnings per share	2.7p	2.9p	2.6p
Diluted earnings per share	2.7p	2.9p	2.6p


	30 June 2019		31 December 2018
	Fair value	Fair value	Fair value	Fair value
	of assets	of liabilities	of assets	of liabilities
	£m	£m	£m	£m
Hedging
Derivatives designated as fair value hedges	949	223	950	216
Derivatives designated as cash flow hedges	598	965	613	892
	1,547	1,188	1,563	1,108
Trading
Exchange rate contracts	5,718	4,324	5,797	4,753
Interest rate contracts	18,560	16,653	15,747	14,632
Credit derivatives	64	137	99	181
Equity and other contracts	259	724	389	699
	24,601	21,838	22,032	20,265
Total recognised derivative assets/liabilities	26,148	23,026	23,595	21,373

				Purchased
				or originated
				credit-
	Stage 1	Stage 2	Stage 3	impaired	Total
	£m	£m	£m	£m	£m

At 1 January 2019	441,531	25,345	5,741	15,391	488,008
Exchange and other adjustments	24	(114)	160	194	264
Additions (repayments)	14,982	(2,815)	(149)	(999)	11,019
Transfers to Stage 1	5,432	(5,417)	(15)		-
Transfers to Stage 2	(12,982)	13,241	(259)		-
Transfers to Stage 3	(741)	(1,069)	1,810		-
	(8,291)	6,755	1,536		-
Recoveries			201	28	229
Financial assets that have been written off			(1,069)	-	(1,069)
At 30 June 2019	448,246	29,171	6,420	14,614	498,451
Allowance for impairment losses	(621)	(953)	(1,558)	(181)	(3,313)
Total loans and advances to customers	447,625	28,218	4,862	14,433	495,138

At 1 January 2019	6,282	3	-	-	6,285
Exchange and other adjustments	(23)	2	-	-	(21)
Transfers to Stage 2	(10)	10	-	-	-
Additions (repayments)	2,113	-	-	-	2,113
At 30 June 2019	8,362	15	-	-	8,377
Allowance for impairment losses	(3)	-	-	-	(3)
Total loans and advances to banks	8,359	15	-	-	8,374

At 1 January 2019	5,238	-	6	-	5,244
Exchange and other adjustments	(6)	-	-	-	(6)
Additions (repayments)	202	-	-	-	202
Assets which have been derecognised	-	-	(2)	-	(2)
Financial assets that have been written off			(1)	-	(1)
At 30 June 2019	5,434	-	3	-	5,437
Allowance for impairment losses	-	-	(3)	-	(3)
Total debt securities	5,434	-	-	-	5,434

Total financial assets at amortised cost	461,418	28,233	4,862	14,433	508,946


¹	Restated, see note 1.


¹	Restated, see note 1.


¹	Reflects the implementation of IFRS 16, see note 1.


¹	Restated, see note 1.

At 1 January 2018	4,245	2	-	-	4,247
Exchange and other adjustments	(29)	1	-	-	(28)
Additions (repayments)	2,066	-	-	-	2,066
At 31 December 2018	6,282	3	-	-	6,285
Allowance for impairment losses	(2)	-	-	-	(2)
Total loans and advances to banks	6,280	3	-	-	6,283

At 1 January 2018	3,291	-	49	-	3,340
Exchange and other adjustments	77	-	(14)	-	63
Additions (repayments)	1,870	-	-	-	1,870
Financial assets that have been written off			(29)	-	(29)
At 31 December 2018	5,238	-	6	-	5,244
Allowance for impairment losses	-	-	(6)	-	(6)
Total debt securities	5,238	-	-	-	5,238

Total financial assets at amortised cost	452,524	24,354	4,188	15,313	496,379


	Half-year	Year ended
	to 30 June	31 Dec
	2019	2018
	£m	£m

Drawn balances	599	1,024
Undrawn balances	(19)	(73)
Financial assets at fair value through other comprehensive income	(1)	(14)
Total	579	937


	30 June 2019			31 December 2018
	At fair			At fair
	value			value
	through	At		through	At
	profit or	amortised		profit or	amortised
	loss	cost	Total	loss	cost	Total
	£m	£m	£m	£m	£m	£m

Medium-term notes issued	7,930	39,404	47,334	7,032	37,490	44,522
Covered bonds	-	30,479	30,479	-	28,194	28,194
Certificates of deposit	-	12,167	12,167	-	12,020	12,020
Securitisation notes	52	5,261	5,313	53	5,426	5,479
Commercial paper	-	10,504	10,504	-	8,038	8,038
	7,982	97,815	105,797	7,085	91,168	98,253


			£m

Asset at 1 January 2019			1,022
Exchange and other adjustments			11
Income statement charge			(139)
Employer contributions			538
Remeasurement			(173)
Asset at 30 June 2019			1,259


	Number
	of shares
	(million)	£m
Ordinary shares of 10p each
At 1 January 2019	71,164	7,116
Issued in the period¹	725	73
Share buybacks	(1,125)	(113)
At period end	70,764	7,076


									£m

At 1 January 2019									6,491
Redemption of Additional Tier 1 securities									(1,481)
Additional Tier 1 securities issued in the period:
US dollar notes ($500 million nominal)									396
At 30 June 2019									5,406


	Provisions	Payment	Other
	for	Protection	regulatory
	commitments	Insurance	provisions	Other	Total
	£m	£m	£m	£m	£m

Balance at 31 December 2018	193	1,524	861	969	3,547
Adjustment on implementation of IFRS 16	-	-	-	(97)	(97)
Exchange and other adjustments	(1)	32	-	1	32
Provisions applied	-	(992)	(412)	(204)	(1,608)
Charge for the period	(19)	650	143	210	984
At 30 June 2019	173	1,214	592	879	2,858


	30 June 2019		31 December 2018
	Carrying	Fair	Carrying	Fair
	value	value	value	value
	£m	£m	£m	£m
Financial assets
Financial assets at fair value through profit or loss	155,108	155,108	158,529	158,529
Derivative financial instruments	26,148	26,148	23,595	23,595

Loans and advances to banks	8,374	8,363	6,283	6,286
Loans and advances to customers	495,138	496,768	484,858	484,660
Debt securities	5,434	5,427	5,238	5,244
Financial assets at amortised cost	508,946	510,558	496,379	496,190
Financial assets at fair value through other comprehensive income	27,078	27,078	24,815	24,815
Financial liabilities
Deposits from banks	34,777	34,761	30,320	30,322
Customer deposits	421,692	422,277	418,066	418,450
Financial liabilities at fair value through profit or loss	24,754	24,754	30,547	30,547
Derivative financial instruments	23,026	23,026	21,373	21,373
Debt securities in issue	97,815	100,102	91,168	93,233
Liabilities arising from non-participating investment contracts	14,706	14,706	13,853	13,853
Subordinated liabilities	17,809	20,200	17,656	19,564


	Level 1	Level 2	Level 3	Total
	£m	£m	£m	£m
At 30 June 2019
Financial assets at fair value through profit or loss:
Loans and advances to customers	-	14,907	11,042	25,949
Loans and advances to banks	-	3,082	-	3,082
Debt securities	17,931	21,459	1,778	41,168
Equity shares	82,833	13	2,043	84,889
Treasury and other bills	20	-	-	20
Total financial assets at fair value through profit or loss	100,784	39,461	14,863	155,108
Financial assets at fair value through other comprehensive income:
Debt securities	15,252	11,083	171	26,506
Equity shares	-	-	25	25
Treasury and other bills	547	-	-	547
Total financial assets at fair value through other comprehensive income	15,799	11,083	196	27,078
Derivative financial instruments	83	24,881	1,184	26,148
Total financial assets carried at fair value	116,666	75,425	16,243	208,334

At 31 December 2018
Financial assets at fair value through profit or loss:
Loans and advances to customers	-	27,285	10,565	37,850
Loans and advances to banks	-	3,026	-	3,026
Debt securities	18,010	20,544	1,594	40,148
Equity shares	75,701	26	1,758	77,485
Treasury and other bills	20	-	-	20
Total financial assets at fair value through profit or loss	93,731	50,881	13,917	158,529
Financial assets at fair value through other comprehensive income:
Debt securities	18,879	5,366	246	24,491
Treasury and other bills	303	-	-	303
Equity shares	-	-	21	21
Total financial assets at fair value through other comprehensive income	19,182	5,366	267	24,815
Derivative financial instruments	93	22,575	927	23,595
Total financial assets carried at fair value	113,006	78,822	15,111	206,939


		Financial
	Financial	assets at		Total
	assets at	fair value		financial
	fair value	through other		assets
	through profit	comprehensive	Derivative	carried at
	or loss	income	assets	fair value
	£m	£m	£m	£m

At 1 January 2019	13,917	267	927	15,111
Exchange and other adjustments	3	1	-	4
Gains recognised in the income statement within other income	489	-	251	740
Gains (losses) recognised in other comprehensive income within the revaluation reserve in respect of financial assets carried at fair value through other comprehensive income	-	8	-	8
Purchases/ increases to customer loans	1,511	-	2	1,513
Sales/ repayments	(1,522)	(80)	(16)	(1,618)
Transfers into the level 3 portfolio	563	-	22	585
Transfers out of the level 3 portfolio	(98)	-	(2)	(100)
At 30 June 2019	14,863	196	1,184	16,243
Gains (losses) recognised in the income statement within other income relating to those assets held at 30 June 2019	189	-	285	474


		Financial
	Financial	assets held		Total
	assets at	at fair value		financial
	fair value	through other		assets
	through profit	comprehensive	Derivative	carried at
	or loss	income	assets	fair value
	£m	£m	£m	£m

At 1 January 2018	14,152	302	1,056	15,510
Exchange and other adjustments	3	(1)	-	2
Gains recognised in the income statement within other income	111	-	2	113
Gains recognised in other comprehensive income within the revaluation reserve in respect of financial assets held at fair value through other comprehensive income	-	1	-	1
Purchases/ increases to customer loans	206	-	-	206
Sales/ repayments	(491)	(91)	(90)	(672)
Transfers into the level 3 portfolio	532	334	-	866
Transfers out of the level 3 portfolio	(320)	(193)	-	(513)
At 30 June 2018	14,193	352	968	15,513
Gains (losses) recognised in the income statement within other income relating to those assets held at 30 June 2018	160	-	2	162


	Financial		Total
	liabilities at		financial
	fair value		liabilities
	through	Derivative	carried at
	profit or loss	liabilities	fair value
	£m	£m	£m

At 1 January 2019	11	716	727
Exchange and other adjustments	-	-	-
Losses recognised in the income statement within other income	-	204	204
Additions	-	1	1
Redemptions	(1)	(12)	(13)
Transfers into the level 3 portfolio	53	364	417
Transfers out of the level 3 portfolio	(11)	-	(11)
At 30 June 2019	52	1,273	1,325
Losses recognised in the income statement within other income relating to those liabilities held at 30 June 2019	-	249	249


				At 30 June 2019
					Effect of reasonably
					possible alternative
					assumptions¹
		Significant
	Valuation	unobservable		Carrying	Favourable	Unfavourable
	technique(s)	inputs	Range²	value	changes	changes
				£m	£m	£m
Financial assets at fair value through profit or loss
Loans and advances to customers	Discounted cash flows	Gross interest rates, inferred spreads (bps)	76 bps / 208 bps	11,042	347	(406)

Equity and venture capital investments	Market approach	Earnings multiple	0.9 / 14.6	1,786	102	(96)
Equity and venture capital investments	Underlying asset/net asset value (incl. property prices)³	n/a		524	51	(74)
Unlisted equities and debt securities, property partnerships in the life funds	Underlying asset/net asset value (incl. property prices)³	n/a		1,153	16	(40)
Other				358	47	(47)
				14,863
Financial assets at fair value through other comprehensive income				196
Derivative financial assets
Interest rate derivatives	Option pricing model	Interest rate volatility	7% / 121%	1,184
				1,184	8	(4)
Financial assets carried at fair value				16,243

Financial liabilities at fair value through profit or loss				52

Derivative financial liabilities
Interest rate derivatives	Option pricing model	Interest rate volatility	7% / 121%	1,273	−	−
Financial liabilities carried at fair value				1,325


¹	Where the exposure to an unobservable input is managed on a net basis, only the net impact is shown in the table.
²	The range represents the highest and lowest inputs used in the level 3 valuations.
³	Underlying asset/net asset values represent fair value.


At 30 June 2019					Purchased
					or
					originated
					credit-
	PD	Stage 1	Stage 2	Stage 3	impaired	Total
	range	£m	£m	£m	£m	£m

Loans and advances to banks:
CMS 1-10	0.00-0.50%	8,170	15	-	-	8,185
CMS 11-14	0.51-3.00%	192	-	-	-	192
CMS 15-18	3.01-20.00%	-	-	-	-	-
CMS 19	20.01-99.99%	-	-	-	-	-
CMS 20-23	100%	-	-	-	-	-
		8,362	15	-	-	8,377
Loans and advances to customers:
Retail - mortgages
RMS 1-6	0.00-4.50%	252,238	13,585	-	-	265,823
RMS 7-9	4.51-14.00%	22	1,842	-	-	1,864
RMS 10	14.01-20.00%	-	421	-	-	421
RMS 11-13	20.01-99.99%	-	1,028	-	-	1,028
RMS 14	100.00%	-	-	1,543	14,614	16,157
		252,260	16,876	1,543	14,614	285,293
Retail - unsecured
RMS 1-6	0.00-4.50%	22,749	1,213	-	-	23,962
RMS 7-9	4.51-14.00%	1,782	738	-	-	2,520
RMS 10	14.01-20.00%	36	143	-	-	179
RMS 11-13	20.01-99.99%	11	545	-	-	556
RMS 14	100.00%	-	-	678	-	678
		24,578	2,639	678	-	27,895
Retail - UK Motor Finance
RMS 1-6	0.00-4.50%	14,013	881	-	-	14,894
RMS 7-9	4.51-14.00%	327	236	-	-	563
RMS 10	14.01-20.00%	-	93	-	-	93
RMS 11-13	20.01-99.99%	3	192	-	-	195
RMS 14	100.00%	-	-	137	-	137
		14,343	1,402	137	-	15,882
Retail - other
RMS 1-6	0.00-4.50%	8,252	370	-	-	8,622
RMS 7-9	4.51-14.00%	-	107	-	-	107
RMS 10	14.01-20.00%	-	10	-	-	10
RMS 11-13	20.01-99.99%	167	28	-	-	195
RMS 14	100.00%	-	-	132	-	132
		8,419	515	132	-	9,066
CMS 1-10	0.00-0.50%	1,538	275	-	-	1,813
CMS 11-14	0.51-3.00%	-	-	-	-	-
CMS 15-18	3.01-20.00%	-	-	-	-	-
CMS 19	20.01-99.99%	-	-	-	-	-
CMS 20-23	100%	-	-	29	-	29
		1,538	275	29	-	1,842
Total Retail		301,138	21,707	2,519	14,614	339,978


Asset quality ratio	The underlying impairment charge for the period (on an annualised basis) in respect of loans and advances to customers after releases and write-backs, expressed as a percentage of average gross loans and advances to customers for the period
Banking net interest margin	Banking net interest income on customer and product balances in the banking businesses as a percentage of average gross banking interest-earning assets for the period
Business as usual costs	Operating costs, less investment expensed and depreciation
Cost:income ratio	Total costs as a percentage of net income calculated on an underlying basis
Gross asset quality ratio	The underlying impairment charge for the period (on an annualised basis) in respect of loans and advances to customers before releases and write-backs, expressed as a percentage of average gross loans and advances to customers for the period
Loan to deposit ratio	Loans and advances to customers net of allowance for impairment losses and excluding reverse repurchase agreements divided by customer deposits excluding repurchase agreements
Jaws	The difference between the period on period percentage change in net income and the period on period change in total costs calculated on an underlying basis
Present value of new business premium	The total single premium sales received in the period (on an annualised basis) plus the discounted value of premiums expected to be received over the term of the new regular premium contracts
Return on risk-weighted assets	Underlying profit before tax divided by average risk-weighted assets
Return on tangible equity	Statutory profit after tax adjusted to add back amortisation of intangible assets, and to deduct profit attributable to non-controlling interests and other equity holders, divided by average tangible net assets
Tangible net assets per share	Net assets excluding intangible assets such as goodwill and acquisition-related intangibles divided by the weighted average number of ordinary shares in issue
Underlying, 'or above the line' profit	Statutory profit adjusted for certain items as detailed in the Basis of Presentation
Underlying return on tangible equity	Underlying profit after tax at the standard UK corporation tax rate adjusted to add back amortisation of intangible assets, and to deduct profit attributable to non-controlling interests and other equity holders, divided by average tangible net assets


Shares quoted ex-dividend	8 August 2019

Record date	9 August 2019

Final date for joining or leaving the dividend reinvestment plan	23 August 2019

Interim dividend paid	13 September 2019