Company Announcements

DGAP-News: Lloyds Banking Group: 2019 Half-Year Results - News Release part 2 of 2

Source: EQS
<html xmlns="http://www.w3.org/1999/xhtml"><body><table border="0"><tr><td> <p><org>DGAP-News</org>: <org value="LSE:LLOY" idsrc="xmltag.org" >Lloyds Banking Group</org> / Key word(s): Half Year Results<br/> <org value="LSE:LLOY" idsrc="xmltag.org" >Lloyds Banking Group</org>: 2019 Half-Year Results - News Release part 2 of 2 <br/><br/> <chron>31.07.2019</chron> / 08:00 <br/> The issuer is solely responsible for the content of this announcement.<br/><br/></p> <hr/><div><div>&#160;<br/> &#160;<br/> &#160;<br/> &#160;<br/> 2019 Half-Year Results<br/> News Release<br/> &#160;<br/> <org value="LSE:LLOY" idsrc="xmltag.org" >Lloyds Banking Group plc</org><br/> &#160;<br/> <chron>31 July 2019</chron><br/> &#160;<br/> &#160;<br/> &#160;<br/> &#160;<br/> &#160;<br/> &#160;<br/> &#160;<br/> &#160;<br/> Part 2 of 2<br/><br/> &#160;</div> <br/><strong>STATUTORY INFORMATIO<a/>N</strong><br/> &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <table border="0"><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td colspan="2">&#160;</td> <td>Page&#160;</td> </tr><tr><td colspan="2"><strong>Condensed consolidated half-year financial statements</strong></td> <td>&#160;</td> </tr><tr><td colspan="2">Consolidated income statement</td> <td>58&#160;</td> </tr><tr><td colspan="2">Consolidated statement of comprehensive income</td> <td>60&#160;</td> </tr><tr><td colspan="2">Consolidated balance sheet</td> <td>61&#160;</td> </tr><tr><td colspan="2">Consolidated statement of changes in equity</td> <td>63&#160;</td> </tr><tr><td colspan="2">Consolidated cash flow statement</td> <td>66&#160;</td> </tr><tr><td colspan="2">&#160;</td> <td>&#160;</td> </tr><tr><td colspan="2"><strong>Notes</strong></td> <td>&#160;</td> </tr><tr><td>1</td> <td>Accounting policies, presentation and estimates</td> <td>67&#160;</td> </tr><tr><td>2</td> <td>Segmental analysis</td> <td>70&#160;</td> </tr><tr><td>3</td> <td>Net fee and commission income</td> <td>72&#160;</td> </tr><tr><td>4</td> <td>Operating expenses</td> <td>73&#160;</td> </tr><tr><td>5</td> <td>Impairment</td> <td>74&#160;</td> </tr><tr><td>6</td> <td>Taxation</td> <td>75&#160;</td> </tr><tr><td>7</td> <td>Earnings per share</td> <td>75&#160;</td> </tr><tr><td>8</td> <td>Financial assets at fair value through profit or loss</td> <td>76&#160;</td> </tr><tr><td>9</td> <td>Derivative financial instruments</td> <td>76&#160;</td> </tr><tr><td>10</td> <td>Financial assets at amortised cost</td> <td>77&#160;</td> </tr><tr><td>11</td> <td>Allowance for impairment losses</td> <td>80&#160;</td> </tr><tr><td>12</td> <td>Debt securities in issue</td> <td>83&#160;</td> </tr><tr><td>13</td> <td>Post-retirement defined benefit schemes</td> <td>84&#160;</td> </tr><tr><td>14</td> <td>Subordinated liabilities</td> <td>85&#160;</td> </tr><tr><td>15</td> <td>Share capital</td> <td>85&#160;</td> </tr><tr><td>16</td> <td>Other equity instruments</td> <td>86&#160;</td> </tr><tr><td>17</td> <td>Provisions for liabilities and charges</td> <td>87&#160;</td> </tr><tr><td>18</td> <td>Contingent liabilities and commitments</td> <td>89&#160;</td> </tr><tr><td>19</td> <td>Fair values of financial assets and liabilities</td> <td>92&#160;</td> </tr><tr><td>20</td> <td>Credit quality of loans and advances to banks and customers</td> <td>99&#160;</td> </tr><tr><td>21</td> <td>Dividends on ordinary shares</td> <td>107&#160;</td> </tr><tr><td>22</td> <td>Implementation of IFRS 16</td> <td>107&#160;</td> </tr><tr><td>23</td> <td>Future accounting developments</td> <td>108&#160;</td> </tr><tr><td>24</td> <td>Other information</td> <td>108&#160;</td> </tr></table><div>&#160;</div> <br/> &#160;<br/><strong>CONDENSED CONSOLIDATED HALF-YEAR FINANCIAL STATEMENTS </strong><br/><strong>CONSOLIDATED INCOME STATEMENT<a/> (UNAUDITED)</strong><br/> &#160; <table border="1"><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;&#160;&#160;&#160;</td> <td>&#160;</td> <td>&#160;&#160;&#160;&#160;</td> <td><strong>Half-year to&#160;</strong></td> <td>&#160;</td> <td>Half-year to&#160;</td> <td>&#160;&#160;&#160;&#160;</td> <td>Half-year to&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>30 June&#160;</strong></td> <td>&#160;</td> <td>30 June&#160;</td> <td>&#160;</td> <td>31 Dec&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>2019&#160;</strong></td> <td>&#160;&#160;&#160;&#160;</td> <td>2018<sup>1</sup>&#160;</td> <td>&#160;</td> <td>2018<sup>1</sup>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>Note</td> <td>&#160;</td> <td><strong>&#163;m&#160;</strong></td> <td>&#160;</td> <td>&#163;m&#160;</td> <td>&#160;</td> <td>&#163;m&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Interest and similar income</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>8,399&#160;</strong></td> <td>&#160;</td> <td>&#160;8,032&#160;</td> <td>&#160;</td> <td>&#160;8,317&#160;</td> </tr><tr><td>Interest and similar expense</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>(3,760)</strong></td> <td>&#160;</td> <td>&#160;(2,025)</td> <td>&#160;</td> <td>&#160;(928)</td> </tr><tr><td><strong>Net interest income</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>4,639&#160;</strong></td> <td>&#160;</td> <td>&#160;6,007&#160;</td> <td>&#160;</td> <td>&#160;7,389&#160;</td> </tr><tr><td>Fee and commission income</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>1,428&#160;</strong></td> <td>&#160;</td> <td>&#160;1,372&#160;</td> <td>&#160;</td> <td>&#160;1,476&#160;</td> </tr><tr><td>Fee and commission expense</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>(694)</strong></td> <td>&#160;</td> <td>&#160;(674)</td> <td>&#160;</td> <td>&#160;(712)</td> </tr><tr><td>Net fee and commission income</td> <td>&#160;</td> <td>3</td> <td>&#160;</td> <td><strong>734&#160;</strong></td> <td>&#160;</td> <td>&#160;698&#160;</td> <td>&#160;</td> <td>&#160;764&#160;</td> </tr><tr><td>Net trading income</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>11,789&#160;</strong></td> <td>&#160;</td> <td>&#160;1,522&#160;</td> <td>&#160;</td> <td>&#160;(5,398)</td> </tr><tr><td>Insurance premium income</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>4,431&#160;</strong></td> <td>&#160;</td> <td>&#160;4,815&#160;</td> <td>&#160;</td> <td>&#160;4,374&#160;</td> </tr><tr><td>Other operating income</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>1,547&#160;</strong></td> <td>&#160;</td> <td>&#160;1,238&#160;</td> <td>&#160;</td> <td>&#160;682&#160;</td> </tr><tr><td><strong>Other income</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>18,501&#160;</strong></td> <td>&#160;</td> <td>&#160;8,273&#160;</td> <td>&#160;</td> <td>&#160;422&#160;</td> </tr><tr><td><strong>Total income</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>23,140&#160;</strong></td> <td>&#160;</td> <td>&#160;14,280&#160;</td> <td>&#160;</td> <td>&#160;7,811&#160;</td> </tr><tr><td>Insurance claims</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>(14,009)</strong></td> <td>&#160;</td> <td>&#160;(4,709)</td> <td>&#160;</td> <td>&#160;1,244&#160;</td> </tr><tr><td><strong>Total income, net of insurance claims</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>9,131&#160;</strong></td> <td>&#160;</td> <td>&#160;9,571&#160;</td> <td>&#160;</td> <td>&#160;9,055&#160;</td> </tr><tr><td>Regulatory provisions</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>(793)</strong></td> <td>&#160;</td> <td>&#160;(807)</td> <td>&#160;</td> <td>&#160;(543)</td> </tr><tr><td>Other operating expenses</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>(4,862)</strong></td> <td>&#160;</td> <td>&#160;(5,191)</td> <td>&#160;</td> <td>&#160;(5,188)</td> </tr><tr><td><strong>Total operating expenses</strong></td> <td>&#160;</td> <td>4</td> <td>&#160;</td> <td><strong>(5,655)</strong></td> <td>&#160;</td> <td>&#160;(5,998)</td> <td>&#160;</td> <td>&#160;(5,731)</td> </tr><tr><td><strong>Trading surplus</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>3,476&#160;</strong></td> <td>&#160;</td> <td>&#160;3,573&#160;</td> <td>&#160;</td> <td>&#160;3,324&#160;</td> </tr><tr><td>Impairment</td> <td>&#160;</td> <td>5</td> <td>&#160;</td> <td><strong>(579)</strong></td> <td>&#160;</td> <td>&#160;(456)</td> <td>&#160;</td> <td>&#160;(481)</td> </tr><tr><td><strong>Profit before tax</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>2,897&#160;</strong></td> <td>&#160;</td> <td>&#160;3,117&#160;</td> <td>&#160;</td> <td>&#160;2,843&#160;</td> </tr><tr><td>Tax expense</td> <td>&#160;</td> <td>6</td> <td>&#160;</td> <td><strong>(672)</strong></td> <td>&#160;</td> <td>&#160;(800)</td> <td>&#160;</td> <td>&#160;(654)</td> </tr><tr><td><strong>Profit for the&#160;period</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>2,225&#160;</strong></td> <td>&#160;</td> <td>&#160;2,317&#160;</td> <td>&#160;</td> <td>&#160;2,189&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Profit attributable to ordinary shareholders</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>1,942&#160;</strong></td> <td>&#160;</td> <td>&#160;2,075&#160;</td> <td>&#160;</td> <td>&#160;1,900&#160;</td> </tr><tr><td>Profit attributable to other equity holders</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>251&#160;</strong></td> <td>&#160;</td> <td>&#160;205&#160;</td> <td>&#160;</td> <td>&#160;228&#160;</td> </tr><tr><td>Profit attributable to equity holders</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>2,193&#160;</strong></td> <td>&#160;</td> <td>&#160;2,280&#160;</td> <td>&#160;</td> <td>&#160;2,128&#160;</td> </tr><tr><td>Profit attributable to non-controlling interests</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>32&#160;</strong></td> <td>&#160;</td> <td>&#160;37&#160;</td> <td>&#160;</td> <td>&#160;61&#160;</td> </tr><tr><td><strong>Profit for the&#160;period</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>2,225&#160;</strong></td> <td>&#160;</td> <td>&#160;2,317&#160;</td> <td>&#160;</td> <td>&#160;2,189&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Basic earnings per share</td> <td>&#160;</td> <td>7</td> <td>&#160;</td> <td><strong>2.7p&#160;</strong></td> <td>&#160;</td> <td>2.9p&#160;</td> <td>&#160;</td> <td>2.6p&#160;</td> </tr><tr><td><strong>Diluted earnings per share</strong></td> <td>&#160;</td> <td>7</td> <td>&#160;</td> <td><strong>2.7p&#160;</strong></td> <td>&#160;</td> <td>2.9p&#160;</td> <td>&#160;</td> <td>2.6p&#160;</td> </tr></table> &#160; <table border="0"><tr><td>&#160;</td> <td>&#160;</td> </tr><tr><td><sup>1</sup></td> <td>Restated, see note 1.</td> </tr></table> &#160;<br/> &#160;<br/> &#160;<br/><br/> &#160;<br/><strong>CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOM<a/>E (UNAUDITED)</strong><br/> &#160; <table border="1"><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;&#160;&#160;&#160;</td> <td><strong>Half-year to&#160;</strong></td> <td>&#160;</td> <td>Half-year to&#160;</td> <td>&#160;</td> <td>Half-year to&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>30 June&#160;</strong></td> <td>&#160;</td> <td>30 June&#160;</td> <td>&#160;</td> <td>31 Dec&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>2019&#160;</strong></td> <td>&#160;&#160;&#160;&#160;</td> <td>2018<sup>1</sup>&#160;</td> <td>&#160;</td> <td>2018<sup>1</sup>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>&#163;m&#160;</strong></td> <td>&#160;</td> <td>&#163;m&#160;</td> <td>&#160;</td> <td>&#163;m&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td><strong>Profit for the&#160;period</strong></td> <td>&#160;</td> <td><strong>2,225&#160;</strong></td> <td>&#160;</td> <td>&#160;2,317&#160;</td> <td>&#160;</td> <td>&#160;2,189&#160;</td> </tr><tr><td><strong>Other comprehensive income</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td><em>Items that will not subsequently be reclassified to profit or loss:</em></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Post-retirement defined benefit scheme remeasurements:</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Remeasurements before tax</td> <td>&#160;</td> <td>(<strong>173</strong>)</td> <td>&#160;</td> <td>&#160;908&#160;</td> <td>&#160;</td> <td>&#160;(741)</td> </tr><tr><td>Tax</td> <td>&#160;</td> <td><strong>44&#160;</strong></td> <td>&#160;</td> <td>&#160;(206)&#160;</td> <td>&#160;</td> <td>&#160;159&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>(129)</strong></td> <td>&#160;</td> <td>&#160;702&#160;</td> <td>&#160;</td> <td>&#160;(582)</td> </tr><tr><td>Movements in revaluation reserve in respect of equity shares held at fair value through other comprehensive income:</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Change in fair value</td> <td>&#160;</td> <td><strong>1&#160;</strong></td> <td>&#160;</td> <td>&#160;(97)&#160;</td> <td>&#160;</td> <td>- &#160;</td> </tr><tr><td>Tax</td> <td>&#160;</td> <td><strong>12&#160;</strong></td> <td>&#160;</td> <td>&#160;22&#160;</td> <td>&#160;</td> <td>- &#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>13&#160;</strong></td> <td>&#160;</td> <td>&#160;(75)&#160;&#160;</td> <td>&#160;</td> <td>- &#160;</td> </tr><tr><td>Gains and losses attributable to own credit risk:</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Gains (losses) before tax</td> <td>&#160;</td> <td><strong>(303)</strong></td> <td>&#160;</td> <td>&#160;167&#160;</td> <td>&#160;</td> <td>&#160;366&#160;</td> </tr><tr><td>Tax</td> <td>&#160;</td> <td><strong>82&#160;</strong></td> <td>&#160;</td> <td>&#160;(45)&#160;</td> <td>&#160;</td> <td>&#160;(99)</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>(221)</strong></td> <td>&#160;</td> <td>&#160;122&#160;</td> <td>&#160;</td> <td>&#160;267&#160;</td> </tr><tr><td>Share of other comprehensive income of associates and joint ventures</td> <td>&#160;</td> <td><strong>- &#160;</strong></td> <td>&#160;</td> <td>- &#160;</td> <td>&#160;</td> <td>8&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td><em>Items that may subsequently be reclassified to profit or loss:</em></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Movements in revaluation reserve in respect of debt securities held at fair value through other comprehensive income:</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Change in fair value</td> <td>&#160;</td> <td><strong>(50)</strong></td> <td>&#160;</td> <td>&#160;110&#160;</td> <td>&#160;</td> <td>(147)</td> </tr><tr><td>Income statement transfers in respect of disposals</td> <td>&#160;</td> <td><strong>(177)</strong></td> <td>&#160;</td> <td>&#160;(203)&#160;</td> <td>&#160;</td> <td>(72)</td> </tr><tr><td>Tax</td> <td>&#160;</td> <td><strong>68&#160;</strong></td> <td>&#160;</td> <td>&#160;46&#160;</td> <td>&#160;</td> <td>73&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>(159)</strong></td> <td>&#160;</td> <td>&#160;(47)&#160;&#160;</td> <td>&#160;</td> <td>(146)</td> </tr><tr><td>Movements in cash flow hedging reserve:</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Effective portion of changes in fair value taken to other comprehensive income</td> <td>&#160;</td> <td><strong>1,179&#160;</strong></td> <td>&#160;</td> <td>&#160;(223)&#160;</td> <td>&#160;</td> <td>&#160;457&#160;</td> </tr><tr><td>Net income statement transfers</td> <td>&#160;</td> <td><strong>(242)</strong></td> <td>&#160;</td> <td>&#160;(423)&#160;</td> <td>&#160;</td> <td>(278)</td> </tr><tr><td>Tax</td> <td>&#160;</td> <td><strong>(250)</strong></td> <td>&#160;</td> <td>&#160;182&#160;</td> <td>&#160;</td> <td>&#160;(69)</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>687&#160;</strong></td> <td>&#160;</td> <td>&#160;(464)&#160;</td> <td>&#160;</td> <td>&#160;110&#160;</td> </tr><tr><td>Currency translation differences (tax: nil)</td> <td>&#160;</td> <td><strong>1&#160;</strong></td> <td>&#160;</td> <td>&#160;5&#160;</td> <td>&#160;</td> <td>&#160;(13)</td> </tr><tr><td><strong>Other comprehensive income for the&#160;period, net of tax</strong></td> <td>&#160;</td> <td><strong>192&#160;</strong></td> <td>&#160;</td> <td>&#160;243&#160;</td> <td>&#160;</td> <td>&#160;(356)</td> </tr><tr><td><strong>Total comprehensive income for the&#160;period</strong></td> <td>&#160;</td> <td><strong>2,417&#160;</strong></td> <td>&#160;</td> <td>&#160;2,560&#160;</td> <td>&#160;</td> <td>&#160;1,833</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Total comprehensive income attributable to ordinary shareholders</td> <td>&#160;</td> <td><strong>2,134&#160;</strong></td> <td>&#160;</td> <td>&#160;2,318&#160;</td> <td>&#160;</td> <td>&#160;1,544</td> </tr><tr><td>Total comprehensive income attributable to other equity holders</td> <td>&#160;</td> <td><strong>251&#160;</strong></td> <td>&#160;</td> <td>&#160;205&#160;</td> <td>&#160;</td> <td>&#160;228</td> </tr><tr><td>Total comprehensive income attributable to equity holders</td> <td>&#160;</td> <td><strong>2,385&#160;</strong></td> <td>&#160;</td> <td>&#160;2,523&#160;</td> <td>&#160;</td> <td>&#160;1,772</td> </tr><tr><td>Total comprehensive income attributable to non-controlling interests</td> <td>&#160;</td> <td><strong>32&#160;</strong></td> <td>&#160;</td> <td>&#160;37&#160;</td> <td>&#160;</td> <td>&#160;61</td> </tr><tr><td><strong>Total comprehensive income for the&#160;period</strong></td> <td>&#160;</td> <td><strong>2,417&#160;</strong></td> <td>&#160;</td> <td>&#160;2,560&#160;</td> <td>&#160;</td> <td>&#160;1,833</td> </tr></table> &#160; <table border="0"><tr><td>&#160;</td> <td>&#160;</td> </tr><tr><td><sup>1</sup></td> <td>Restated, see note 1.</td> </tr></table><br/> &#160;<br/><strong>CONSOLIDATED BALANCE SHEE<a/>T</strong><br/> &#160; <table border="1"><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>Note</td> <td><strong>At 30 June</strong></td> <td>&#160;</td> <td>At 31 Dec</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>2019<sup>1</sup></strong></td> <td>&#160;</td> <td>2018</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>(unaudited)</strong></td> <td>&#160;</td> <td>(audited)</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>&#163;m</strong></td> <td>&#160;</td> <td>&#163;m</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td><strong>Assets</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Cash and balances at central banks</td> <td>&#160;</td> <td><strong>57,290</strong></td> <td>&#160;</td> <td>54,663</td> </tr><tr><td>Items in the course of collection from banks</td> <td>&#160;</td> <td><strong>693</strong></td> <td>&#160;</td> <td>647</td> </tr><tr><td>Financial assets at fair value through profit or loss</td> <td>8</td> <td><strong>155,108</strong></td> <td>&#160;</td> <td>158,529</td> </tr><tr><td>Derivative financial instruments</td> <td>9</td> <td><strong>26,148</strong></td> <td>&#160;</td> <td>23,595</td> </tr><tr><td>Loans and advances to banks</td> <td>&#160;</td> <td><strong>8,374</strong></td> <td>&#160;</td> <td>6,283</td> </tr><tr><td>Loans and advances to customers</td> <td>&#160;</td> <td><strong>495,138</strong></td> <td>&#160;</td> <td>484,858</td> </tr><tr><td>Debt securities</td> <td>&#160;</td> <td><strong>5,434</strong></td> <td>&#160;</td> <td>5,238</td> </tr><tr><td>Financial assets at amortised cost</td> <td>10</td> <td><strong>508,946</strong></td> <td>&#160;</td> <td>496,379</td> </tr><tr><td>Financial assets at fair value through other comprehensive income</td> <td>&#160;</td> <td><strong>27,078</strong></td> <td>&#160;</td> <td>24,815</td> </tr><tr><td>Goodwill</td> <td>&#160;</td> <td><strong>2,314</strong></td> <td>&#160;</td> <td>2,310</td> </tr><tr><td>Value of in-force business</td> <td>&#160;</td> <td><strong>5,326</strong></td> <td>&#160;</td> <td>4,762</td> </tr><tr><td>Other intangible assets</td> <td>&#160;</td> <td><strong>3,615</strong></td> <td>&#160;</td> <td>3,347</td> </tr><tr><td>Property, plant and equipment</td> <td>&#160;</td> <td><strong>13,646</strong></td> <td>&#160;</td> <td>12,300</td> </tr><tr><td>Current tax recoverable</td> <td>&#160;</td> <td><strong>6</strong></td> <td>&#160;</td> <td>5</td> </tr><tr><td>Deferred tax assets</td> <td>&#160;</td> <td><strong>2,401</strong></td> <td>&#160;</td> <td>2,453</td> </tr><tr><td>Retirement benefit assets</td> <td>13</td> <td><strong>1,509</strong></td> <td>&#160;</td> <td>1,267</td> </tr><tr><td>Other assets</td> <td>&#160;</td> <td><strong>18,168</strong></td> <td>&#160;</td> <td>12,526</td> </tr><tr><td><strong>Total assets</strong></td> <td>&#160;</td> <td><strong>822,248</strong></td> <td>&#160;</td> <td>797,598</td> </tr></table> &#160; <table border="0"><tr><td><sup>1</sup></td> <td>&#160;Reflects the implementation of IFRS 16, see note 1.</td> </tr></table><br/> &#160;<br/><strong>CONSOLIDATED BALANCE SHEET</strong> (continued)<br/> &#160; <table border="1"><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>Note</td> <td><strong>At 30 June</strong></td> <td>&#160;</td> <td>At 31 Dec</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>2019<sup>1</sup></strong></td> <td>&#160;</td> <td>2018</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>(unaudited)</strong></td> <td>&#160;</td> <td>(audited)</td> </tr><tr><td><strong>Equity and liabilities</strong></td> <td>&#160;</td> <td><strong>&#163;m</strong></td> <td>&#160;</td> <td>&#163;m</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td><strong>Liabilities</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Deposits from banks</td> <td>&#160;</td> <td><strong>34,777</strong></td> <td>&#160;</td> <td>30,320</td> </tr><tr><td>Customer deposits</td> <td>&#160;</td> <td><strong>421,692</strong></td> <td>&#160;</td> <td>418,066</td> </tr><tr><td>Items in course of transmission to banks</td> <td>&#160;</td> <td><strong>499</strong></td> <td>&#160;</td> <td>636</td> </tr><tr><td>Financial liabilities at fair value through profit or loss</td> <td>&#160;</td> <td><strong>24,754</strong></td> <td>&#160;</td> <td>30,547</td> </tr><tr><td>Derivative financial instruments</td> <td>9</td> <td><strong>23,026</strong></td> <td>&#160;</td> <td>21,373</td> </tr><tr><td>Notes&#160;in circulation</td> <td>&#160;</td> <td><strong>1,042</strong></td> <td>&#160;</td> <td>1,104</td> </tr><tr><td>Debt securities in issue</td> <td>12</td> <td><strong>97,815</strong></td> <td>&#160;</td> <td>91,168</td> </tr><tr><td>Liabilities arising from insurance contracts and participating investment contracts</td> <td>&#160;</td> <td><strong>107,409</strong></td> <td>&#160;</td> <td>98,874</td> </tr><tr><td>Liabilities arising from non-participating investment contracts</td> <td>&#160;</td> <td><strong>14,706</strong></td> <td>&#160;</td> <td>13,853</td> </tr><tr><td>Other liabilities</td> <td>&#160;</td> <td><strong>26,124</strong></td> <td>&#160;</td> <td>19,633</td> </tr><tr><td>Retirement benefit obligations</td> <td>13</td> <td><strong>250</strong></td> <td>&#160;</td> <td>245</td> </tr><tr><td>Current tax liabilities</td> <td>&#160;</td> <td><strong>383</strong></td> <td>&#160;</td> <td>377</td> </tr><tr><td>Deferred tax liabilities</td> <td>&#160;</td> <td><strong>49</strong></td> <td>&#160;</td> <td>-</td> </tr><tr><td>Other provisions</td> <td>17</td> <td><strong>2,858</strong></td> <td>&#160;</td> <td>3,547</td> </tr><tr><td>Subordinated liabilities</td> <td>14</td> <td><strong>17,809</strong></td> <td>&#160;</td> <td>17,656</td> </tr><tr><td><strong>Total liabilities</strong></td> <td>&#160;</td> <td><strong>773,193</strong></td> <td>&#160;</td> <td>747,399</td> </tr><tr><td><strong>Equity and liabilities</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td><strong>Equity</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Share capital</td> <td>15</td> <td><strong>7,076</strong></td> <td>&#160;</td> <td>7,116</td> </tr><tr><td>Share premium account</td> <td>&#160;</td> <td><strong>17,739</strong></td> <td>&#160;</td> <td>17,719</td> </tr><tr><td>Other reserves</td> <td>&#160;</td> <td><strong>13,864</strong></td> <td>&#160;</td> <td>13,210</td> </tr><tr><td>Retained profits</td> <td>&#160;</td> <td><strong>4,769</strong></td> <td>&#160;</td> <td>5,389</td> </tr><tr><td><strong>Shareholders&apos; equity</strong></td> <td>&#160;</td> <td><strong>43,448</strong></td> <td>&#160;</td> <td>43,434</td> </tr><tr><td>Other equity instruments</td> <td>16</td> <td><strong>5,406</strong></td> <td>&#160;</td> <td>6,491</td> </tr><tr><td>Total equity excluding non-controlling interests</td> <td>&#160;</td> <td><strong>48,854</strong></td> <td>&#160;</td> <td>49,925</td> </tr><tr><td>Non-controlling interests</td> <td>&#160;</td> <td><strong>201</strong></td> <td>&#160;</td> <td>274</td> </tr><tr><td><strong>Total equity</strong></td> <td>&#160;</td> <td><strong>49,055</strong></td> <td>&#160;</td> <td>50,199</td> </tr><tr><td><strong>Total equity and liabilities</strong></td> <td>&#160;</td> <td><strong>822,248</strong></td> <td>&#160;</td> <td>797,598</td> </tr></table> &#160; <table border="0"><tr><td>&#160;</td> <td colspan="2">&#160;</td> </tr><tr><td><sup>1</sup></td> <td>Reflects the implementation of IFRS 16, see note 1.</td> <td>&#160;</td> </tr></table><br/> &#160;<br/><strong>CONSOLIDATED STATEMENT OF CHANGES IN EQUIT<a/>Y (UNAUDITED)</strong><br/> &#160; <table border="1"><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td colspan="7"><strong>Attributable&#160;to&#160;equity&#160;shareholders</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>Share&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>capital&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>Other&#160;</strong></td> <td>&#160;</td> <td><strong>Non -&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>and&#160;</strong></td> <td>&#160;</td> <td><strong>Other&#160;</strong></td> <td>&#160;</td> <td><strong>Retained&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>equity&#160;</strong></td> <td>&#160;</td> <td><strong>controlling&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>premium&#160;</strong></td> <td>&#160;</td> <td><strong>reserves&#160;</strong></td> <td>&#160;</td> <td><strong>profits&#160;</strong></td> <td>&#160;</td> <td><strong>Total&#160;</strong></td> <td>&#160;</td> <td><strong>instruments&#160;</strong></td> <td>&#160;</td> <td><strong>interests&#160;</strong></td> <td>&#160;</td> <td><strong>Total&#160;&#160;</strong></td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>&#163;m&#160;</strong></td> <td>&#160;</td> <td><strong>&#163;m&#160;</strong></td> <td>&#160;</td> <td><strong>&#163;m&#160;</strong></td> <td>&#160;</td> <td><strong>&#163;m&#160;</strong></td> <td>&#160;</td> <td><strong>&#163;m&#160;</strong></td> <td>&#160;</td> <td><strong>&#163;m&#160;</strong></td> <td>&#160;</td> <td><strong>&#163;m&#160;&#160;</strong></td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;&#160;&#160;&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Balance at <chron>1 January&#160;2019</chron></td> <td>&#160;</td> <td><strong>&#160;24,835&#160;</strong></td> <td>&#160;</td> <td><strong>&#160;13,210&#160;</strong></td> <td>&#160;</td> <td><strong>&#160;5,389&#160;</strong></td> <td>&#160;</td> <td><strong>&#160;43,434&#160;</strong></td> <td>&#160;</td> <td><strong>&#160;6,491&#160;</strong></td> <td>&#160;</td> <td><strong>&#160;274&#160;</strong></td> <td>&#160;</td> <td><strong>&#160;50,199&#160;</strong></td> </tr><tr><td><strong>Comprehensive income</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Profit for the period</td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>2,193&#160;</strong></td> <td>&#160;</td> <td><strong>2,193&#160;</strong></td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>32&#160;</strong></td> <td>&#160;</td> <td><strong>2,225&#160;</strong></td> </tr><tr><td><em>Other comprehensive income</em></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Post-retirement defined benefit scheme remeasurements, net of tax</td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>(129)</strong></td> <td>&#160;</td> <td><strong>(129)</strong></td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>(129)</strong></td> </tr><tr><td>Movements in revaluation reserve in&#160; respect of financial assets held at fair value through other comprehensive income, net of tax:</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Debt securities</td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>(159)</strong></td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>(159)</strong></td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>(159)</strong></td> </tr><tr><td>Equity shares</td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>13&#160;</strong></td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>13&#160;</strong></td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>13&#160;</strong></td> </tr><tr><td>Gains and losses attributable to own credit risk, net of tax</td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>(221)</strong></td> <td>&#160;</td> <td><strong>(221)</strong></td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>(221)</strong></td> </tr><tr><td>Movements in cash flow hedging reserve, net of tax</td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>687&#160;</strong></td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>687&#160;</strong></td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>687&#160;</strong></td> </tr><tr><td>Currency translation differences (tax: &#163;nil)</td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>1&#160;</strong></td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>1&#160;</strong></td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>1&#160;</strong></td> </tr><tr><td><strong>Total other comprehensive income</strong></td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>542&#160;</strong></td> <td>&#160;</td> <td><strong>(350)</strong></td> <td>&#160;</td> <td><strong>192</strong></td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>192&#160;</strong></td> </tr><tr><td><strong>Total comprehensive income</strong></td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>542&#160;</strong></td> <td>&#160;</td> <td><strong>1,843</strong></td> <td>&#160;</td> <td><strong>2,385</strong></td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>32&#160;</strong></td> <td>&#160;</td> <td><strong>2,417&#160;</strong></td> </tr><tr><td><strong>Transactions with owners</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Dividends</td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>(1,523)</strong></td> <td>&#160;</td> <td><strong>(1,523)</strong></td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>(91)</strong></td> <td>&#160;</td> <td><strong>(1,614)</strong></td> </tr><tr><td>Distributions on other equity instruments</td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>(251)</strong></td> <td>&#160;</td> <td><strong>(251)</strong></td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>(251)</strong></td> </tr><tr><td>Issue of ordinary shares</td> <td>&#160;</td> <td><strong>90&#160;</strong></td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>90&#160;</strong></td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>90&#160;</strong></td> </tr><tr><td>Share buyback</td> <td>&#160;</td> <td><strong>(113)</strong></td> <td>&#160;</td> <td><strong>113&#160;</strong></td> <td>&#160;</td> <td><strong>(879)</strong></td> <td>&#160;</td> <td><strong>(879)</strong></td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>(879)</strong></td> </tr><tr><td>Redemption of preference shares</td> <td>&#160;</td> <td><strong>3&#160;</strong></td> <td>&#160;</td> <td><strong>(3)</strong></td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>-&#160;</strong></td> </tr><tr><td>Issue of other equity instruments</td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>(1)</strong></td> <td>&#160;</td> <td><strong>(1)</strong></td> <td>&#160;</td> <td><strong>396&#160;</strong></td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>395&#160;</strong></td> </tr><tr><td>Redemption of other equity instruments</td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>(1,481)</strong></td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>(1,481)</strong></td> </tr><tr><td>Movement in treasury shares</td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>71&#160;</strong></td> <td>&#160;</td> <td><strong>71&#160;</strong></td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>71&#160;</strong></td> </tr><tr><td>Value of employee services:</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Share option schemes</td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>34&#160;</strong></td> <td>&#160;</td> <td><strong>34&#160;</strong></td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>34&#160;</strong></td> </tr><tr><td>Other employee award schemes</td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>88&#160;</strong></td> <td>&#160;</td> <td><strong>88&#160;</strong></td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>88&#160;</strong></td> </tr><tr><td>Changes in non-controlling interests</td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>(14)</strong></td> <td>&#160;</td> <td><strong>(14)</strong></td> </tr><tr><td><strong>Total transactions with owners</strong></td> <td>&#160;</td> <td><strong>(20)</strong></td> <td>&#160;</td> <td><strong>110&#160;</strong></td> <td>&#160;</td> <td><strong>(2,461)</strong></td> <td>&#160;</td> <td><strong>(2,371)</strong></td> <td>&#160;</td> <td><strong>(1,085)</strong></td> <td>&#160;</td> <td><strong>(105)</strong></td> <td>&#160;</td> <td><strong>(3,561)</strong></td> </tr><tr><td>Realised gains and losses on equity shares held at fair value through other comprehensive income</td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>2&#160;</strong></td> <td>&#160;</td> <td><strong>(2)</strong></td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td><strong>-&#160;</strong></td> </tr><tr><td><strong>Balance at <chron>30 June&#160;2019</chron></strong></td> <td>&#160;</td> <td><strong>24,815&#160;</strong></td> <td>&#160;</td> <td><strong>13,864&#160;</strong></td> <td>&#160;</td> <td><strong>4,769&#160;</strong></td> <td>&#160;</td> <td><strong>43,448&#160;</strong></td> <td>&#160;</td> <td><strong>5,406&#160;</strong></td> <td>&#160;</td> <td><strong>201&#160;</strong></td> <td>&#160;</td> <td><strong>49,055&#160;</strong></td> </tr></table><br/> &#160;<br/><strong>CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED) </strong>(continued)<br/> &#160; <table border="1"><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td colspan="7">Attributable&#160;to&#160;equity&#160;shareholders</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>Share&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>capital&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>Other&#160;&#160;</td> <td>&#160;</td> <td>Non-&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>and&#160;</td> <td>&#160;</td> <td>Other&#160;</td> <td>&#160;</td> <td>Retained&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>equity&#160;</td> <td>&#160;</td> <td>controlling&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>premium&#160;</td> <td>&#160;</td> <td>reserves&#160;</td> <td>&#160;</td> <td>profits&#160;</td> <td>&#160;</td> <td>Total&#160;</td> <td>&#160;</td> <td>instruments&#160;</td> <td>&#160;</td> <td>interests&#160;</td> <td>&#160;</td> <td>Total&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#163;m&#160;</td> <td>&#160;</td> <td>&#163;m&#160;</td> <td>&#160;</td> <td>&#163;m&#160;</td> <td>&#160;</td> <td>&#163;m&#160;</td> <td>&#160;</td> <td>&#163;m&#160;</td> <td>&#160;</td> <td>&#163;m&#160;</td> <td>&#160;</td> <td>&#163;m&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Balance at <chron>1 January 2018</chron></td> <td>&#160;</td> <td>&#160;24,831&#160;</td> <td>&#160;</td> <td>&#160;13,553&#160;</td> <td>&#160;</td> <td>&#160;3,976&#160;</td> <td>&#160;</td> <td>&#160;42,360&#160;</td> <td>&#160;</td> <td>&#160;5,355&#160;</td> <td>&#160;</td> <td>&#160;237&#160;</td> <td>&#160;</td> <td>&#160;47,952&#160;</td> </tr><tr><td>Comprehensive income</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Profit for the&#160;period<sup>1</sup></td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;2,280&#160;</td> <td>&#160;</td> <td>&#160;2,280&#160;</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;37&#160;</td> <td>&#160;</td> <td>&#160;2,317&#160;</td> </tr><tr><td><em>Other comprehensive income</em></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Post-retirement defined benefit scheme remeasurements, net of tax</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;702&#160;</td> <td>&#160;</td> <td>&#160;702&#160;</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;702&#160;</td> </tr><tr><td>Movements in revaluation reserve in respect of financial assets held at fair value through other comprehensive income, net of tax:</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Debt securities</td> <td>&#160;</td> <td>-&#160;</td> <td>&#160;</td> <td>(47)</td> <td>&#160;</td> <td>-&#160;</td> <td>&#160;</td> <td>(47)</td> <td>&#160;</td> <td>-&#160;</td> <td>&#160;</td> <td>-&#160;</td> <td>&#160;</td> <td>(47)</td> </tr><tr><td>Equity shares</td> <td>&#160;</td> <td>-&#160;</td> <td>&#160;</td> <td>(75)</td> <td>&#160;</td> <td>-&#160;</td> <td>&#160;</td> <td>(75)</td> <td>&#160;</td> <td>-&#160;</td> <td>&#160;</td> <td>-&#160;</td> <td>&#160;</td> <td>(75)</td> </tr><tr><td>Gains and losses attributable to own credit risk, net of tax</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>122&#160;&#160;</td> <td>&#160;</td> <td>&#160;122&#160;&#160;</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;122&#160;&#160;</td> </tr><tr><td>Movements in cash flow hedging reserve, net of tax</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>(464)</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;(464)&#160;</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;(464)&#160;</td> </tr><tr><td>Currency translation differences (tax: &#163;nil)</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;5&#160;&#160;</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;5&#160;&#160;</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;5&#160;&#160;</td> </tr><tr><td>Total other comprehensive income</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;(581)&#160;</td> <td>&#160;</td> <td>&#160;824&#160;</td> <td>&#160;</td> <td>&#160;243&#160;&#160;</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;243&#160;&#160;</td> </tr><tr><td>Total comprehensive income</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;(581)&#160;</td> <td>&#160;</td> <td>&#160;3,104&#160;</td> <td>&#160;</td> <td>&#160;2,523&#160;</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;37&#160;</td> <td>&#160;</td> <td>&#160;2,560&#160;</td> </tr><tr><td>Transactions with owners</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Dividends</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;(1,475)&#160;</td> <td>&#160;</td> <td>&#160;(1,475)&#160;</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;(26)&#160;</td> <td>&#160;</td> <td>&#160;(1,501)&#160;</td> </tr><tr><td>Distributions on other equity instruments<sup>1</sup></td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;(205)&#160;</td> <td>&#160;</td> <td>&#160;(205)&#160;</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;(205)&#160;</td> </tr><tr><td>Issue of ordinary shares</td> <td>&#160;</td> <td>&#160;142&#160;</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;142&#160;</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;142&#160;</td> </tr><tr><td>Share buyback</td> <td>&#160;</td> <td>(72)</td> <td>&#160;</td> <td>72&#160;</td> <td>&#160;</td> <td>(565)</td> <td>&#160;</td> <td>(565)</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>(565)</td> </tr><tr><td>Movement in treasury shares</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;35&#160;&#160;</td> <td>&#160;</td> <td>&#160;35&#160;&#160;</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;35&#160;&#160;</td> </tr><tr><td>Value of employee services:</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Share option schemes</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;21&#160;</td> <td>&#160;</td> <td>&#160;21&#160;</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;21&#160;</td> </tr><tr><td>Other employee award schemes</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;104&#160;</td> <td>&#160;</td> <td>&#160;104&#160;</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;104&#160;</td> </tr><tr><td>Total transactions with owners</td> <td>&#160;</td> <td>&#160;70&#160;</td> <td>&#160;</td> <td>&#160;72&#160;</td> <td>&#160;</td> <td>&#160;(2,085)&#160;</td> <td>&#160;</td> <td>&#160;(1,943)&#160;</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;(26)&#160;</td> <td>&#160;</td> <td>&#160;(1,969)&#160;</td> </tr><tr><td>Realised gains and losses on equity shares held at fair value through other comprehensive income</td> <td>&#160;</td> <td>-&#160;</td> <td>&#160;</td> <td>141&#160;</td> <td>&#160;</td> <td>(141)</td> <td>&#160;</td> <td>-&#160;</td> <td>&#160;</td> <td>- &#160;</td> <td>&#160;</td> <td>-&#160;</td> <td>&#160;</td> <td>-&#160;</td> </tr><tr><td>Balance at <chron>30 June&#160;2018</chron></td> <td>&#160;</td> <td>&#160;24,901&#160;</td> <td>&#160;</td> <td>&#160;13,185&#160;</td> <td>&#160;</td> <td>&#160;4,854&#160;</td> <td>&#160;</td> <td>&#160;42,940&#160;</td> <td>&#160;</td> <td>&#160;5,355 &#160;</td> <td>&#160;</td> <td>&#160;248&#160;</td> <td>&#160;</td> <td>&#160;48,543&#160;</td> </tr></table> &#160; <table border="0"><tr><td>&#160;</td> <td>&#160;</td> </tr><tr><td><sup>1</sup></td> <td>Restated, see note 1.</td> </tr></table> &#160;<br/><br/> &#160;<br/><strong>CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED) </strong>(continued)<br/> &#160; <table border="1"><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td colspan="7">Attributable&#160;to&#160;equity&#160;shareholders</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>Share&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>capital&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>Other&#160;&#160;</td> <td>&#160;</td> <td>Non-&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>and&#160;</td> <td>&#160;</td> <td>Other&#160;</td> <td>&#160;</td> <td>Retained&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>equity&#160;</td> <td>&#160;</td> <td>controlling&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>premium&#160;</td> <td>&#160;</td> <td>reserves&#160;</td> <td>&#160;</td> <td>profits&#160;</td> <td>&#160;</td> <td>Total&#160;</td> <td>&#160;</td> <td>instruments&#160;</td> <td>&#160;</td> <td>interests&#160;</td> <td>&#160;</td> <td>Total&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#163;m&#160;</td> <td>&#160;</td> <td>&#163;m&#160;</td> <td>&#160;</td> <td>&#163;m&#160;</td> <td>&#160;</td> <td>&#163;m&#160;</td> <td>&#160;</td> <td>&#163;m&#160;</td> <td>&#160;</td> <td>&#163;m&#160;</td> <td>&#160;</td> <td>&#163;m&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Balance at <chron>1 July 2018</chron></td> <td>&#160;</td> <td>&#160;24,901&#160;</td> <td>&#160;</td> <td>13,185&#160;</td> <td>&#160;</td> <td>&#160;4,854&#160;</td> <td>&#160;</td> <td>&#160;42,940&#160;</td> <td>&#160;</td> <td>5,355&#160;</td> <td>&#160;</td> <td>248&#160;</td> <td>&#160;</td> <td>&#160;48,543&#160;</td> </tr><tr><td>Comprehensive income</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Profit for the&#160;period<sup>1</sup></td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;2,128&#160;</td> <td>&#160;</td> <td>&#160;2,128&#160;</td> <td>&#160;</td> <td>-&#160;</td> <td>&#160;</td> <td>61&#160;</td> <td>&#160;</td> <td>&#160;2,189&#160;</td> </tr><tr><td><em>Other comprehensive income</em></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Post-retirement defined benefit scheme remeasurements, net of tax</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;(582)</td> <td>&#160;</td> <td>&#160;(582)</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>(582)</td> </tr><tr><td>Share of other comprehensive income of associates and joint ventures</td> <td>&#160;</td> <td>-&#160;</td> <td>&#160;</td> <td>-&#160;</td> <td>&#160;</td> <td>8&#160;</td> <td>&#160;</td> <td>8&#160;</td> <td>&#160;</td> <td>-&#160;</td> <td>&#160;</td> <td>-&#160;</td> <td>&#160;</td> <td>8&#160;&#160;</td> </tr><tr><td>Movements in revaluation reserve in respect of financial assets held at fair value through other comprehensive income, net of tax:</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Debt securities</td> <td>&#160;</td> <td>-&#160;</td> <td>&#160;</td> <td>(146)</td> <td>&#160;</td> <td>-&#160;</td> <td>&#160;</td> <td>(146)&#160;</td> <td>&#160;</td> <td>-&#160;</td> <td>&#160;</td> <td>-&#160;</td> <td>&#160;</td> <td>(146)&#160;</td> </tr><tr><td>Equity shares</td> <td>&#160;</td> <td>-&#160;</td> <td>&#160;</td> <td>-&#160;</td> <td>&#160;</td> <td>-&#160;</td> <td>&#160;</td> <td>-&#160;&#160;</td> <td>&#160;</td> <td>-&#160;</td> <td>&#160;</td> <td>-&#160;</td> <td>&#160;</td> <td>-&#160;&#160;</td> </tr><tr><td>Gains and losses attributable to own credit risk, net of tax</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>-&#160;</td> <td>&#160;</td> <td>267&#160;</td> <td>&#160;</td> <td>&#160;267&#160;&#160;</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;267&#160;&#160;</td> </tr><tr><td>Movements in cash flow hedging reserve, net of tax</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;110&#160;</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;110&#160;&#160;</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;110&#160;&#160;</td> </tr><tr><td>Currency translation differences (tax: &#163;nil)</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;(13)</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;(13)&#160;</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;(13)&#160;&#160;</td> </tr><tr><td>Total other comprehensive income</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;(49)</td> <td>&#160;</td> <td>&#160;(307)</td> <td>&#160;</td> <td>&#160;(356)&#160;</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;(356)&#160;</td> </tr><tr><td>Total comprehensive income</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;(49)</td> <td>&#160;</td> <td>&#160;1,821&#160;</td> <td>&#160;</td> <td>&#160;1,772&#160;</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;61&#160;</td> <td>&#160;</td> <td>&#160;1,833&#160;</td> </tr><tr><td>Transactions with owners</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Dividends</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;(765)</td> <td>&#160;</td> <td>&#160;(765)&#160;</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;(35)&#160;</td> <td>&#160;</td> <td>&#160;(800)&#160;</td> </tr><tr><td>Distributions on other equity instruments<sup>1</sup></td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;(228)</td> <td>&#160;</td> <td>&#160;(228)&#160;</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;(228)&#160;</td> </tr><tr><td>Issue of ordinary shares</td> <td>&#160;</td> <td>&#160;20&#160;</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;20&#160;</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;20&#160;</td> </tr><tr><td>Share buyback</td> <td>&#160;</td> <td>(86)</td> <td>&#160;</td> <td>86&#160;</td> <td>&#160;</td> <td>(440)</td> <td>&#160;</td> <td>(440)</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>(440)</td> </tr><tr><td>Issue of other equity instruments</td> <td>&#160;</td> <td>-&#160;</td> <td>&#160;</td> <td>-&#160;</td> <td>&#160;</td> <td>(5)</td> <td>&#160;</td> <td>(5)&#160;</td> <td>&#160;</td> <td>1,136&#160;</td> <td>&#160;</td> <td>-&#160;</td> <td>&#160;</td> <td>1,131&#160;&#160;</td> </tr><tr><td>Movement in treasury shares</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;5&#160;</td> <td>&#160;</td> <td>&#160;5&#160;&#160;</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;5&#160;&#160;</td> </tr><tr><td>Value of employee services:</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Share option schemes</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;32&#160;</td> <td>&#160;</td> <td>&#160;32&#160;</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;32&#160;</td> </tr><tr><td>Other employee award schemes</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;103&#160;</td> <td>&#160;</td> <td>&#160;103&#160;</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;-&#160;</td> <td>&#160;</td> <td>&#160;103&#160;</td> </tr><tr><td>Total transactions with owners</td> <td>&#160;</td> <td>(66)</td> <td>&#160;</td> <td>&#160;86&#160;</td> <td>&#160;</td> <td>&#160;(1,298)</td> <td>&#160;</td> <td>&#160;(1,278)&#160;</td> <td>&#160;</td> <td>&#160;1,136&#160;</td> <td>&#160;</td> <td>&#160;(35)&#160;</td> <td>&#160;</td> <td>&#160;(177)&#160;</td> </tr><tr><td>Realised gains and losses on equity shares held at fair value through other comprehensive income</td> <td>&#160;</td> <td>-&#160;</td> <td>&#160;</td> <td>(12)</td> <td>&#160;</td> <td>12&#160;</td> <td>&#160;</td> <td>-&#160;</td> <td>&#160;</td> <td>-&#160;</td> <td>&#160;</td> <td>-&#160;</td> <td>&#160;</td> <td>-&#160;</td> </tr><tr><td>Balance at <chron>31 December&#160;2018</chron></td> <td>&#160;</td> <td>&#160;24,835&#160;</td> <td>&#160;</td> <td>&#160;13,210&#160;</td> <td>&#160;</td> <td>&#160;5,389&#160;</td> <td>&#160;</td> <td>&#160;43,434&#160;</td> <td>&#160;</td> <td>6,491&#160;</td> <td>&#160;</td> <td>&#160;274&#160;</td> <td>&#160;</td> <td>&#160;50,199&#160;</td> </tr></table> &#160; <table border="0"><tr><td>&#160;</td> <td>&#160;</td> </tr><tr><td><sup>1</sup></td> <td>Restated, see note 1.</td> </tr></table> &#160;<br/><br/> &#160;<br/><strong>CONSOLIDATED CASH FLOW STATEMEN<a/>T (UNAUDITED)</strong><br/> &#160; <table border="1"><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>Half-year to</strong></td> <td>&#160;</td> <td>Half-year to</td> <td>&#160;</td> <td>Half-year to</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>30 June</strong></td> <td>&#160;</td> <td>30 June</td> <td>&#160;</td> <td>31 Dec</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>2019</strong></td> <td>&#160;&#160;&#160;&#160;</td> <td>2018</td> <td>&#160;</td> <td>2018</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>&#163;m</strong></td> <td>&#160;</td> <td>&#163;m</td> <td>&#160;</td> <td>&#163;m</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td><strong>Profit before tax</strong></td> <td>&#160;</td> <td><strong>2,897</strong></td> <td>&#160;</td> <td>3,117</td> <td>&#160;</td> <td>&#160;2,843</td> </tr><tr><td>Adjustments for:</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Change in operating assets</td> <td>&#160;</td> <td><strong>(16,318)</strong></td> <td>&#160;</td> <td>(19,056)</td> <td>&#160;</td> <td>&#160;14,584</td> </tr><tr><td>Change in operating liabilities</td> <td>&#160;</td> <td><strong>15,630</strong></td> <td>&#160;</td> <td>19,461</td> <td>&#160;</td> <td>&#160;(28,134)</td> </tr><tr><td>Non-cash and other items</td> <td>&#160;</td> <td><strong>10,060</strong></td> <td>&#160;</td> <td>1,204</td> <td>&#160;</td> <td>&#160;(4,096)</td> </tr><tr><td>Tax paid</td> <td>&#160;</td> <td><strong>(557)</strong></td> <td>&#160;</td> <td>(527)</td> <td>&#160;</td> <td>&#160;(503)</td> </tr><tr><td><strong>Net cash provided by (used in) operating activities</strong></td> <td>&#160;</td> <td><strong>11,712</strong></td> <td>&#160;</td> <td>4,199</td> <td>&#160;</td> <td>&#160;(15,306)</td> </tr><tr><td><strong>Cash flows from investing activities</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Purchase of financial assets</td> <td>&#160;</td> <td><strong>(8,618)</strong></td> <td>&#160;</td> <td>(6,050)</td> <td>&#160;</td> <td>&#160;(6,607)</td> </tr><tr><td>Proceeds from sale and maturity of financial assets</td> <td>&#160;</td> <td><strong>6,574</strong></td> <td>&#160;</td> <td>14,856</td> <td>&#160;</td> <td>11,950</td> </tr><tr><td>Purchase of fixed assets</td> <td>&#160;</td> <td><strong>(1,866)</strong></td> <td>&#160;</td> <td>(1,807)</td> <td>&#160;</td> <td>&#160;(1,707)</td> </tr><tr><td>Proceeds from sale of fixed assets</td> <td>&#160;</td> <td><strong>676</strong></td> <td>&#160;</td> <td>643</td> <td>&#160;</td> <td>691</td> </tr><tr><td>Acquisition of businesses, net of cash acquired</td> <td>&#160;</td> <td><strong>(6)</strong></td> <td>&#160;</td> <td>(37)</td> <td>&#160;</td> <td>&#160;(12)</td> </tr><tr><td>Disposal of businesses, net of cash disposed</td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td>1</td> <td>&#160;</td> <td>-</td> </tr><tr><td><strong>Net cash provided by investing activities</strong></td> <td>&#160;</td> <td><strong>(3,240)</strong></td> <td>&#160;</td> <td>&#160;7,606</td> <td>&#160;</td> <td>4,315</td> </tr><tr><td><strong>Cash flows from financing activities</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Dividends paid to ordinary shareholders</td> <td>&#160;</td> <td><strong>(1,523)</strong></td> <td>&#160;</td> <td>(1,475)</td> <td>&#160;</td> <td>&#160;(765)</td> </tr><tr><td>Distributions on other equity instruments</td> <td>&#160;</td> <td><strong>(251)</strong></td> <td>&#160;</td> <td>(205)</td> <td>&#160;</td> <td>&#160;(228)</td> </tr><tr><td>Dividends paid to non-controlling interests</td> <td>&#160;</td> <td><strong>(91)</strong></td> <td>&#160;</td> <td>(26)</td> <td>&#160;</td> <td>&#160;(35)</td> </tr><tr><td>Interest paid on subordinated liabilities</td> <td>&#160;</td> <td><strong>(666)</strong></td> <td>&#160;</td> <td>(780)</td> <td>&#160;</td> <td>&#160;(488)</td> </tr><tr><td>Proceeds from issue of subordinated liabilities</td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td>1,729</td> <td>&#160;</td> <td>&#160;-</td> </tr><tr><td>Proceeds from issue of other equity instruments</td> <td>&#160;</td> <td><strong>395</strong></td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>1,131</td> </tr><tr><td>Proceeds from issue of ordinary shares</td> <td>&#160;</td> <td><strong>20</strong></td> <td>&#160;</td> <td>85</td> <td>&#160;</td> <td>&#160;17</td> </tr><tr><td>Share buyback</td> <td>&#160;</td> <td><strong>(694)</strong></td> <td>&#160;</td> <td>(470)</td> <td>&#160;</td> <td>(535)</td> </tr><tr><td>Repayment of subordinated liabilities</td> <td>&#160;</td> <td><strong>(515)</strong></td> <td>&#160;</td> <td>(1,612)</td> <td>&#160;</td> <td>&#160;(644)</td> </tr><tr><td>Redemption of other equity instruments</td> <td>&#160;</td> <td><strong>(1,481)</strong></td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>&#160; -</td> </tr><tr><td><strong>Net cash used in financing activities</strong></td> <td>&#160;</td> <td><strong>(4,806)</strong></td> <td>&#160;</td> <td>(2,754)</td> <td>&#160;</td> <td>&#160;(1,547)</td> </tr><tr><td>Effects of exchange rate changes on cash and cash equivalents</td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td>1</td> <td>&#160;</td> <td>&#160;2</td> </tr><tr><td>Change in cash and cash equivalents</td> <td>&#160;</td> <td><strong>3,666</strong></td> <td>&#160;</td> <td>9,052</td> <td>&#160;</td> <td>&#160;(12,536)</td> </tr><tr><td>Cash and cash equivalents at beginning of&#160;period</td> <td>&#160;</td> <td><strong>55,224</strong></td> <td>&#160;</td> <td>58,708</td> <td>&#160;</td> <td>&#160;67,760</td> </tr><tr><td><strong>Cash and cash equivalents at end of&#160;period</strong></td> <td>&#160;</td> <td><strong>58,890</strong></td> <td>&#160;</td> <td>&#160;67,760</td> <td>&#160;</td> <td>&#160;55,224</td> </tr></table> &#160;<br/> Cash and cash equivalents comprise cash and balances at central banks (excluding mandatory deposits) and amounts due from banks with a maturity of less than three months. Included within cash and cash equivalents at <chron>30&#160;June 2019</chron> is <money>&#163;29&#160;million</money> (<chron>30&#160;June 2018</chron>: <money>&#163;89&#160;million</money>; <chron>31&#160;December 2018</chron>: <money>&#163;40&#160;million</money>) held within the Group&apos;s life funds, which is not immediately available for use in the business.<br/><br/> &#160;<br/><strong>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS</strong><br/> &#160;<br/><strong>1.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Accounting policies, presentation and estimate<a/><a/>s</strong><br/> &#160;<br/> These condensed consolidated interim financial statements as at and for the period to <chron>30&#160;June 2019</chron> have been prepared in accordance with the Disclosure Guidance and Transparency Rules of the <org>Financial Conduct Authority</org> (FCA) and with International Accounting Standard 34 (IAS 34), <em>Interim Financial Reporting</em> as adopted by the <org>European Union</org> and comprise the results of <org>Lloyds&#160;Banking Group plc</org> (the Company) together with its subsidiaries (the Group). They do not include all of the information required for full annual financial statements and should be read in conjunction with the Group&apos;s consolidated financial statements as at and for the year ended <chron>31&#160;December 2018</chron> which were prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the <org>European Union</org>. Copies of the 2018 Annual Report and Accounts are available on the Group&apos;s website and are available upon request from Investor Relations, <org>Lloyds&#160;Banking Group plc</org>, <location>25 Gresham Street</location>, London EC2V 7HN.<br/> &#160;<br/> The UK Finance Code for Financial Reporting Disclosure (the Disclosure Code) sets out disclosure principles together with supporting guidance in respect of the financial statements of UK banks. The Group has adopted the Disclosure Code and these condensed consolidated half-year financial statements have been prepared in compliance with the Disclosure Code&apos;s principles. Terminology used in these condensed consolidated half-year financial statements is consistent with that used in the Group&apos;s 2018 Annual Report and Accounts.<br/> &#160;<br/> The directors consider that it is appropriate to continue to adopt the going concern basis in preparing the condensed consolidated interim financial statements. In reaching this assessment, the directors have considered projections for the Group&apos;s capital and funding position and have had regard to the factors set out in Risk management: Principal risks and uncertainties on page 27.<br/> &#160;<br/> Except as noted below, the accounting policies are consistent with those applied by the Group in its 2018 Annual Report and Accounts.<br/> &#160;<br/><strong><em>Changes in accounting policy</em></strong><br/> The Group adopted IFRS 16 <em>Leases</em> from <chron>1 January 2019</chron>. IFRS 16 replaces IAS 17 <em>Leases</em> and addresses the classification and measurement of all leases. The Group&apos;s accounting as a lessor under IFRS 16 is substantially unchanged from its approach under IAS 17; however for lessee accounting there is no longer a distinction between finance and operating leases.<br/> &#160;<br/> As lessee, under IFRS 16, in respect of leased properties previously accounted for as operating leases the Group now recognises a right-of-use asset and a corresponding liability at the date at which the leased asset is available for use. Assets and liabilities arising from a lease are initially measured on a present value basis. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be determined, or the Group&apos;s incremental borrowing rate. Lease payments are allocated between the liability and finance cost. The finance cost is charged to profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The right-of-use asset is depreciated over the shorter of the asset&apos;s useful life and the lease term on a straight-line basis. Payments associated with leases with a lease term of 12 months or less and leases of low-value assets are recognised as an expense in profit or loss on a straight-line basis.<br/> &#160;<br/> Details of the impact of adoption of IFRS 16 are provided in note 22.<br/> &#160;<br/> The Group has also implemented the amendments to IAS 12 <em>Income Taxes</em> with effect from <chron>1 January 2019</chron> and as a result tax relief on distributions on other equity instruments, previously taken directly to retained profits, is now reported within tax expense in the income statement. Comparatives have been restated. Adoption of these amendments to IAS&#160;12 has resulted in a reduction in tax expense and an increase in profit for the period in the half-year to <chron>30 June 2019</chron> of <money>&#163;60&#160;million</money> (half-year to <chron>30 June 2018</chron>: <money>&#163;50 million</money>). There is no impact on total shareholders&apos; equity or on earnings per share.<br/><br/> &#160;<br/><strong>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS </strong>(continued)<br/> &#160;<br/><strong>1.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Accounting policies, presentation and estimates </strong>(continued)<br/> &#160;<br/><strong><em>Future accounting developments</em></strong><br/> Details of those IFRS pronouncements which will be relevant to the Group but which will not be effective at <chron>31&#160;December 2019</chron> and which have not been applied in preparing these financial statements are set out in note&#160;23.<br/> &#160;<br/><strong><em>Related party transactions</em></strong><br/> The Group has had no material or unusual related party transactions during the six months to <chron>30&#160;June 2019</chron>. Related party transactions for the six months to <chron>30&#160;June 2019</chron> are similar in nature to those for the year ended <chron>31&#160;December 2018</chron>. Full details of the Group&apos;s related party transactions for the year to <chron>31&#160;December 2018</chron> can be found in the Group&apos;s 2018 Annual Report and Accounts.<br/> &#160;<br/><strong><em>Critical accounting estimates and judgements</em></strong><br/> The preparation of the Group&apos;s financial statements requires management to make judgements, estimates and assumptions that impact the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Due to the inherent uncertainty in making estimates, actual results reported in future periods may include amounts which differ from those estimates. Estimates, judgements and assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The Group&apos;s significant judgements, estimates and assumptions are unchanged compared to those applied at <chron>31&#160;December 2018</chron>, except as detailed below.<br/> &#160;<br/><strong><em>Allowance for impairment losses</em></strong><br/> At <chron>30 June 2019</chron> the Group&apos;s allowance for expected credit losses (ECL) was <money>&#163;3,511 million</money> (<chron>31 December 2018</chron>: <money>&#163;3,362&#160;million</money>), of which <money>&#163;3,338 million</money> (<chron>31 December 2018</chron>: <money>&#163;3,169 million</money>) was in respect of drawn balances.<br/> &#160;<br/> The measurement of expected credit losses is required to reflect an unbiased probability-weighted range of possible future outcomes. The approach to generating the economic scenarios used in the calculation of the Group&apos;s ECL allowances is little changed since <chron>31 December 2018</chron>. The central scenario reflects the Group&apos;s updated base case assumptions used for medium-term planning purposes. Additional model-generated upside, downside and severe downside scenarios are identified to represent a typical scenario from specified points along an estimated loss distribution, with the scenario weightings unchanged since <chron>31&#160;December 2018</chron>. The key UK economic assumptions made by the Group as at <chron>30 June 2019</chron> averaged over a five year period are shown below.<br/> &#160;<br/><em>Economic assumptions</em> <table border="1"><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>Base case</strong></td> <td>&#160;</td> <td><strong>Upside</strong></td> <td>&#160;</td> <td><strong>Downside</strong></td> <td>&#160;</td> <td><strong>Severe</strong><br/><strong>downside</strong></td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>%</strong></td> <td>&#160;</td> <td><strong>%</strong></td> <td>&#160;</td> <td><strong>%</strong></td> <td>&#160;</td> <td><strong>%</strong></td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td><strong>Scenario weighting</strong></td> <td>&#160;</td> <td><strong>30</strong></td> <td>&#160;</td> <td><strong>30</strong></td> <td>&#160;</td> <td><strong>30</strong></td> <td>&#160;</td> <td><strong>10</strong></td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td><strong>At <chron>30 June 2019</chron></strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td><org>Bank of England</org> base rate</td> <td>&#160;</td> <td><strong>1.25</strong></td> <td>&#160;</td> <td><strong>2.05</strong></td> <td>&#160;</td> <td><strong>0.49</strong></td> <td>&#160;</td> <td><strong>0.11</strong></td> </tr><tr><td>Unemployment rate</td> <td>&#160;</td> <td><strong>4.3</strong></td> <td>&#160;</td> <td><strong>3.8</strong></td> <td>&#160;</td> <td><strong>5.7</strong></td> <td>&#160;</td> <td><strong>7.0</strong></td> </tr><tr><td>House price growth</td> <td>&#160;</td> <td><strong>1.5</strong></td> <td>&#160;</td> <td><strong>5.2</strong></td> <td>&#160;</td> <td><strong>(2.3)</strong></td> <td>&#160;</td> <td><strong>(7.4)</strong></td> </tr><tr><td>Commercial real estate price growth</td> <td>&#160;</td> <td><strong>(0.2)</strong></td> <td>&#160;</td> <td><strong>1.6</strong></td> <td>&#160;</td> <td><strong>(4.9)</strong></td> <td>&#160;</td> <td><strong>(9.5)</strong></td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>At <chron>31 December 2018</chron></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td><org>Bank of England</org> base rate</td> <td>&#160;</td> <td>1.25</td> <td>&#160;</td> <td>2.34</td> <td>&#160;</td> <td>1.30</td> <td>&#160;</td> <td>0.71</td> </tr><tr><td>Unemployment rate</td> <td>&#160;</td> <td>4.5</td> <td>&#160;</td> <td>3.9</td> <td>&#160;</td> <td>5.3</td> <td>&#160;</td> <td>6.9</td> </tr><tr><td>House price growth</td> <td>&#160;</td> <td>2.5</td> <td>&#160;</td> <td>6.1</td> <td>&#160;</td> <td>(4.8)</td> <td>&#160;</td> <td>(7.5)</td> </tr><tr><td>Commercial real estate price growth</td> <td>&#160;</td> <td>0.4</td> <td>&#160;</td> <td>5.3</td> <td>&#160;</td> <td>(4.7)</td> <td>&#160;</td> <td>(6.4)</td> </tr></table> &#160;<br/><br/> &#160;<br/><strong>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS </strong>(continued)<br/> &#160;<br/><strong>1.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Accounting policies, presentation and estimates </strong>(continued)<br/> &#160;<br/><em>Economic assumptions - start to peak</em> <table border="1"><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>Base case</strong></td> <td>&#160;</td> <td><strong>Upside</strong></td> <td>&#160;</td> <td><strong>Downside</strong></td> <td>&#160;</td> <td><strong>Severe</strong><br/><strong>downside</strong></td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>%</strong></td> <td>&#160;</td> <td><strong>%</strong></td> <td>&#160;</td> <td><strong>%</strong></td> <td>&#160;</td> <td><strong>%</strong></td> </tr><tr><td><strong>At <chron>30 June 2019</chron></strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td><org>Bank of England</org> base rate</td> <td>&#160;</td> <td><strong>1.75</strong></td> <td>&#160;</td> <td><strong>2.70</strong></td> <td>&#160;</td> <td><strong>0.75</strong></td> <td>&#160;</td> <td><strong>0.75</strong></td> </tr><tr><td>Unemployment rate</td> <td>&#160;</td> <td><strong>4.7</strong></td> <td>&#160;</td> <td><strong>4.5</strong></td> <td>&#160;</td> <td><strong>7.0</strong></td> <td>&#160;</td> <td><strong>8.1</strong></td> </tr><tr><td>House price growth</td> <td>&#160;</td> <td><strong>7.3</strong></td> <td>&#160;</td> <td><strong>28.8</strong></td> <td>&#160;</td> <td><strong>(1.6)</strong></td> <td>&#160;</td> <td><strong>(2.2)</strong></td> </tr><tr><td>Commercial real estate price growth</td> <td>&#160;</td> <td><strong>(0.6)</strong></td> <td>&#160;</td> <td><strong>8.4</strong></td> <td>&#160;</td> <td><strong>(1.0)</strong></td> <td>&#160;</td> <td><strong>(1.6)</strong></td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>At <chron>31 December 2018</chron></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td><org>Bank of England</org> base rate</td> <td>&#160;</td> <td>1.75</td> <td>&#160;</td> <td>4.00</td> <td>&#160;</td> <td>1.75</td> <td>&#160;</td> <td>1.25</td> </tr><tr><td>Unemployment rate</td> <td>&#160;</td> <td>4.8</td> <td>&#160;</td> <td>4.3</td> <td>&#160;</td> <td>6.3</td> <td>&#160;</td> <td>8.6</td> </tr><tr><td>House price growth</td> <td>&#160;</td> <td>13.7</td> <td>&#160;</td> <td>34.9</td> <td>&#160;</td> <td>0.6</td> <td>&#160;</td> <td>(1.6)</td> </tr><tr><td>Commercial real estate price growth</td> <td>&#160;</td> <td>0.1</td> <td>&#160;</td> <td>26.9</td> <td>&#160;</td> <td>(0.5)</td> <td>&#160;</td> <td>(0.5)</td> </tr></table> &#160;<br/><em>Economic assumptions - start to trough</em> <table border="1"><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>Base case</strong></td> <td>&#160;</td> <td><strong>Upside</strong></td> <td>&#160;</td> <td><strong>Downside</strong></td> <td>&#160;</td> <td><strong>Severe</strong><br/><strong>downside</strong></td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>%</strong></td> <td>&#160;</td> <td><strong>%</strong></td> <td>&#160;</td> <td><strong>%</strong></td> <td>&#160;</td> <td><strong>%</strong></td> </tr><tr><td><strong>At <chron>30 June 2019</chron></strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td><org>Bank of England</org> base rate</td> <td>&#160;</td> <td><strong>0.75</strong></td> <td>&#160;</td> <td><strong>0.75</strong></td> <td>&#160;</td> <td><strong>0.31</strong></td> <td>&#160;</td> <td><strong>0.01</strong></td> </tr><tr><td>Unemployment rate</td> <td>&#160;</td> <td><strong>3.8</strong></td> <td>&#160;</td> <td><strong>3.4</strong></td> <td>&#160;</td> <td><strong>3.8</strong></td> <td>&#160;</td> <td><strong>3.9</strong></td> </tr><tr><td>House price growth</td> <td>&#160;</td> <td><strong>(1.1)</strong></td> <td>&#160;</td> <td><strong>(0.5)</strong></td> <td>&#160;</td> <td><strong>(12.0)</strong></td> <td>&#160;</td> <td><strong>(33.2)</strong></td> </tr><tr><td>Commercial real estate price growth</td> <td>&#160;</td> <td><strong>(1.5)</strong></td> <td>&#160;</td> <td><strong>0.0</strong></td> <td>&#160;</td> <td><strong>(23.8)</strong></td> <td>&#160;</td> <td><strong>(40.7)</strong></td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>At <chron>31 December 2018</chron></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td><org>Bank of England</org> base rate</td> <td>&#160;</td> <td>0.75</td> <td>&#160;</td> <td>0.75</td> <td>&#160;</td> <td>0.75</td> <td>&#160;</td> <td>0.25</td> </tr><tr><td>Unemployment rate</td> <td>&#160;</td> <td>4.1</td> <td>&#160;</td> <td>3.5</td> <td>&#160;</td> <td>4.3</td> <td>&#160;</td> <td>4.2</td> </tr><tr><td>House price growth</td> <td>&#160;</td> <td>0.4</td> <td>&#160;</td> <td>2.3</td> <td>&#160;</td> <td>(26.5)</td> <td>&#160;</td> <td>(33.5)</td> </tr><tr><td>Commercial real estate price growth</td> <td>&#160;</td> <td>(0.1)</td> <td>&#160;</td> <td>0.0</td> <td>&#160;</td> <td>(23.8)</td> <td>&#160;</td> <td>(33.8)</td> </tr></table> &#160;<br/> The Group&apos;s base-case economic scenario has changed little over the year and reflects a broadly stable outlook for the economy. Although there remains considerable uncertainty about the economic consequences of the UK&apos;s planned exit from the <org>European Union</org>, the Group considers that at this stage the range of possible outcomes is adequately reflected in its choice and weighting of scenarios. The effect of the revised economic assumptions has been to increase the ECL allowance by <money>&#163;50 million</money>.<br/> &#160;<br/><em>Impact of forward looking information</em><br/> As a result of applying the assumptions set out above, the extent to which a higher ECL allowance has been recognised is shown below:<br/> &#160; <table border="1"><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="2">&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3"><strong>Probability</strong></td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="3"><strong>Base case</strong></td> <td>&#160;</td> <td colspan="3"><strong>-weighted</strong></td> <td>&#160;</td> <td colspan="3"><strong>Difference</strong></td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="3"><strong>&#163;m</strong></td> <td>&#160;</td> <td colspan="3"><strong>&#163;m</strong></td> <td>&#160;</td> <td colspan="3"><strong>&#163;m</strong></td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> </tr><tr><td>UK mortgages</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="3"><strong>501</strong></td> <td>&#160;</td> <td colspan="3"><strong>619</strong></td> <td>&#160;</td> <td colspan="3"><strong>118</strong></td> <td>&#160;</td> </tr><tr><td>Other Retail</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="3"><strong>1,365</strong></td> <td>&#160;</td> <td colspan="3"><strong>1,386</strong></td> <td>&#160;</td> <td colspan="3"><strong>21</strong></td> <td>&#160;</td> </tr><tr><td>Commercial</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="3"><strong>1,376</strong></td> <td>&#160;</td> <td colspan="3"><strong>1,433</strong></td> <td>&#160;</td> <td colspan="3"><strong>57</strong></td> <td>&#160;</td> </tr><tr><td>Other</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="3"><strong>73</strong></td> <td>&#160;</td> <td colspan="3"><strong>73</strong></td> <td>&#160;</td> <td colspan="3">-</td> <td>&#160;</td> </tr><tr><td><strong>At <chron>30 June 2019</chron></strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="3"><strong>3,315</strong></td> <td>&#160;</td> <td colspan="3"><strong>3,511</strong></td> <td>&#160;</td> <td colspan="3"><strong>196</strong></td> <td>&#160;</td> </tr><tr><td>At <chron>31 December 2018</chron></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="3">3,100</td> <td>&#160;</td> <td colspan="3">3,362</td> <td>&#160;</td> <td colspan="3">262</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr></table><br/> &#160;<br/><strong>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS </strong>(continued)<br/> &#160;<br/><strong>2.</strong>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <strong>Segmental analysis<a/></strong><br/> &#160;<br/> <org>Lloyds&#160;Banking Group</org> provides a wide range of banking and financial services in the UK and in certain locations overseas. The Group Executive Committee (GEC) remains the chief operating decision maker for the Group.<br/> &#160;<br/> The segmental results and comparatives are presented on an underlying basis, the basis reviewed by the chief operating decision maker. The effects of certain asset sales, volatile items, the insurance grossing adjustment, liability management, restructuring, payment protection insurance provisions, the amortisation of purchased intangible assets and the unwind of acquisition-related fair value adjustments are excluded in arriving at underlying profit.<br/> &#160;<br/> During the half-year to <chron>30 June 2019</chron>, the Group transferred Cardnet, its card payment acceptance service, from Retail into Commercial Banking and also transferred certain equity business from Commercial Banking into Central items. Comparatives have been restated accordingly.<br/> &#160;<br/> The Group&apos;s activities are organised into three financial reporting segments: Retail; Commercial Banking; and Insurance and Wealth. There has been no change to the descriptions of these segments as provided in note 4 to the Group&apos;s financial statements for the year ended <chron>31&#160;December 2018</chron>, neither has there been any change to the Group&apos;s segmental accounting for internal segment services or derivatives entered into by units for risk management purposes since <chron>31&#160;December 2018</chron>.<br/> &#160; <table border="1"><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>Other</strong></td> <td>&#160;</td> <td><strong>Total</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>income,</strong></td> <td>&#160;</td> <td><strong>income,</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>Net</strong></td> <td>&#160;</td> <td><strong>net of</strong></td> <td>&#160;</td> <td><strong>net of</strong></td> <td>&#160;</td> <td><strong>Profit</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>Inter-</strong></td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>interest</strong></td> <td>&#160;</td> <td><strong>insurance</strong></td> <td>&#160;</td> <td><strong>insurance</strong></td> <td>&#160;</td> <td><strong>(loss)</strong></td> <td>&#160;</td> <td><strong>External</strong></td> <td>&#160;</td> <td><strong>segment</strong></td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>income</strong></td> <td>&#160;</td> <td><strong>claims</strong></td> <td>&#160;</td> <td><strong>claims</strong></td> <td>&#160;</td> <td><strong>before tax</strong></td> <td>&#160;</td> <td><strong>revenue</strong></td> <td>&#160;</td> <td><strong>revenue</strong></td> </tr><tr><td><strong>Half-year to <chron>30 June 2019</chron></strong></td> <td>&#160;&#160;</td> <td><strong>&#163;m</strong></td> <td>&#160;&#160;</td> <td><strong>&#163;m</strong></td> <td>&#160;&#160;</td> <td><strong>&#163;m</strong></td> <td>&#160;&#160;</td> <td><strong>&#163;m</strong></td> <td>&#160;&#160;</td> <td><strong>&#163;m</strong></td> <td>&#160;&#160;</td> <td><strong>&#163;m</strong></td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td><strong>Underlying basis</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Retail</td> <td>&#160;</td> <td><strong>4,366</strong></td> <td>&#160;</td> <td><strong>1,007</strong></td> <td>&#160;</td> <td><strong>5,373</strong></td> <td>&#160;</td> <td><strong>1,983</strong></td> <td>&#160;</td> <td><strong>6,501</strong></td> <td>&#160;</td> <td><strong>(1,128)</strong></td> </tr><tr><td>Commercial Banking</td> <td>&#160;</td> <td><strong>1,460</strong></td> <td>&#160;</td> <td><strong>733</strong></td> <td>&#160;</td> <td><strong>2,193</strong></td> <td>&#160;</td> <td><strong>992</strong></td> <td>&#160;</td> <td><strong>1,770</strong></td> <td>&#160;</td> <td><strong>423</strong></td> </tr><tr><td>Insurance and Wealth</td> <td>&#160;</td> <td><strong>58</strong></td> <td>&#160;</td> <td><strong>1,183</strong></td> <td>&#160;</td> <td><strong>1,241</strong></td> <td>&#160;</td> <td><strong>677</strong></td> <td>&#160;</td> <td><strong>939</strong></td> <td>&#160;</td> <td><strong>302</strong></td> </tr><tr><td>Other</td> <td>&#160;</td> <td><strong>261</strong></td> <td>&#160;</td> <td><strong>227</strong></td> <td>&#160;</td> <td><strong>488</strong></td> <td>&#160;</td> <td><strong>542</strong></td> <td>&#160;</td> <td><strong>85</strong></td> <td>&#160;</td> <td><strong>403</strong></td> </tr><tr><td><strong>Group</strong></td> <td>&#160;</td> <td><strong>6,145</strong></td> <td>&#160;</td> <td><strong>3,150</strong></td> <td>&#160;</td> <td><strong>9,295</strong></td> <td>&#160;</td> <td><strong>4,194</strong></td> <td>&#160;</td> <td><strong>9,295</strong></td> <td>&#160;</td> <td><strong>-</strong></td> </tr><tr><td><strong>Reconciling items:</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Insurance grossing adjustment</td> <td>&#160;</td> <td><strong>(1,303)</strong></td> <td>&#160;</td> <td><strong>1,418</strong></td> <td>&#160;</td> <td><strong>115</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Market volatility and asset sales</td> <td>&#160;</td> <td><strong>(87)</strong></td> <td>&#160;</td> <td><strong>(22)</strong></td> <td>&#160;</td> <td><strong>(109)</strong></td> <td>&#160;</td> <td><strong>(296)</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Amortisation of purchased intangibles</td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>(34)</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Restructuring costs</td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>(48)</strong></td> <td>&#160;</td> <td><strong>(48)</strong></td> <td>&#160;</td> <td><strong>(182)</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Fair value unwind and other items</td> <td>&#160;</td> <td><strong>(116)</strong></td> <td>&#160;</td> <td><strong>(6)</strong></td> <td>&#160;</td> <td><strong>(122)</strong></td> <td>&#160;</td> <td><strong>(135)</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Payment protection insurance provision</td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>(650)</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td><strong>Group - statutory</strong></td> <td>&#160;</td> <td><strong>4,639</strong></td> <td>&#160;</td> <td><strong>4,492</strong></td> <td>&#160;</td> <td><strong>9,131</strong></td> <td>&#160;</td> <td><strong>2,897</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr></table> &#160;<br/><br/> &#160;<br/><strong>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS </strong>(continued)<br/> &#160;<br/><strong>2.</strong>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <strong>Segmental analysis</strong> (continued)<br/> &#160;<br/> &#160; <table border="1"><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>Other</td> <td>&#160;</td> <td>Total</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>income,</td> <td>&#160;</td> <td>income,</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>Net</td> <td>&#160;</td> <td>net of</td> <td>&#160;</td> <td>net of</td> <td>&#160;</td> <td>Profit</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>Inter-</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>interest</td> <td>&#160;</td> <td>insurance</td> <td>&#160;</td> <td>insurance</td> <td>&#160;</td> <td>(loss)</td> <td>&#160;</td> <td>External</td> <td>&#160;</td> <td>segment</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>income</td> <td>&#160;</td> <td>claims</td> <td>&#160;</td> <td>claims</td> <td>&#160;</td> <td>before tax</td> <td>&#160;</td> <td>revenue</td> <td>&#160;</td> <td>revenue</td> </tr><tr><td>Half-year to <chron>30 June 2018</chron><sup>1</sup></td> <td>&#160;&#160;</td> <td>&#163;m</td> <td>&#160;&#160;</td> <td>&#163;m</td> <td>&#160;&#160;</td> <td>&#163;m</td> <td>&#160;&#160;</td> <td>&#163;m</td> <td>&#160;&#160;</td> <td>&#163;m</td> <td>&#160;&#160;</td> <td>&#163;m</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Underlying basis</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Retail</td> <td>&#160;</td> <td>4,511</td> <td>&#160;</td> <td>1,052</td> <td>&#160;</td> <td>5,563</td> <td>&#160;</td> <td>2,134</td> <td>&#160;</td> <td>6,399</td> <td>&#160;</td> <td>(836)</td> </tr><tr><td>Commercial Banking</td> <td>&#160;</td> <td>1,501</td> <td>&#160;</td> <td>842</td> <td>&#160;</td> <td>2,343</td> <td>&#160;</td> <td>1,181</td> <td>&#160;</td> <td>1,818</td> <td>&#160;</td> <td>525</td> </tr><tr><td>Insurance and Wealth</td> <td>&#160;</td> <td>60</td> <td>&#160;</td> <td>979</td> <td>&#160;</td> <td>1,039</td> <td>&#160;</td> <td>480</td> <td>&#160;</td> <td>1,202</td> <td>&#160;</td> <td>(163)</td> </tr><tr><td>Other</td> <td>&#160;</td> <td>272</td> <td>&#160;</td> <td>251</td> <td>&#160;</td> <td>523</td> <td>&#160;</td> <td>439</td> <td>&#160;</td> <td>49</td> <td>&#160;</td> <td>474</td> </tr><tr><td>Group</td> <td>&#160;</td> <td>6,344</td> <td>&#160;</td> <td>3,124</td> <td>&#160;</td> <td>9,468</td> <td>&#160;</td> <td>4,234</td> <td>&#160;</td> <td>9,468</td> <td>&#160;</td> <td>-</td> </tr><tr><td>Reconciling items:</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Insurance grossing adjustment</td> <td>&#160;</td> <td>(244)</td> <td>&#160;</td> <td>321</td> <td>&#160;</td> <td>77</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Market volatility and asset sales</td> <td>&#160;</td> <td>54</td> <td>&#160;</td> <td>128</td> <td>&#160;</td> <td>182</td> <td>&#160;</td> <td>34</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Amortisation of purchased intangibles</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>(53)</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Restructuring costs</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>(377)</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Fair value unwind and other items</td> <td>&#160;</td> <td>(147)</td> <td>&#160;</td> <td>(9)</td> <td>&#160;</td> <td>(156)</td> <td>&#160;</td> <td>(171)</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Payment protection insurance provision</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>(550)</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Group - statutory</td> <td>&#160;</td> <td>6,007</td> <td>&#160;</td> <td>3,564</td> <td>&#160;</td> <td>9,571</td> <td>&#160;</td> <td>3,117</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr></table> &#160; <table border="0"><tr><td>&#160;</td> <td>&#160;</td> </tr><tr><td><sup>1</sup></td> <td>Restated, see page 70.</td> </tr></table> &#160; <table border="1"><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>Other</td> <td>&#160;</td> <td>Total</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>income,</td> <td>&#160;</td> <td>income,</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>Net</td> <td>&#160;</td> <td>net of</td> <td>&#160;</td> <td>net of</td> <td>&#160;</td> <td>Profit</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>Inter-</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>interest</td> <td>&#160;</td> <td>insurance</td> <td>&#160;</td> <td>insurance</td> <td>&#160;</td> <td>(loss)</td> <td>&#160;</td> <td>External</td> <td>&#160;</td> <td>segment</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>income</td> <td>&#160;</td> <td>claims</td> <td>&#160;</td> <td>claims</td> <td>&#160;</td> <td>before tax</td> <td>&#160;</td> <td>revenue</td> <td>&#160;</td> <td>revenue</td> </tr><tr><td>Half-year to <chron>31 December 2018</chron><sup>1</sup></td> <td>&#160;&#160;</td> <td>&#163;m</td> <td>&#160;&#160;</td> <td>&#163;m</td> <td>&#160;&#160;</td> <td>&#163;m</td> <td>&#160;&#160;</td> <td>&#163;m</td> <td>&#160;&#160;</td> <td>&#163;m</td> <td>&#160;&#160;</td> <td>&#163;m</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Underlying basis</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Retail</td> <td>&#160;</td> <td>4,549</td> <td>&#160;</td> <td>1,045</td> <td>&#160;</td> <td>5,594</td> <td>&#160;</td> <td>2,077</td> <td>&#160;</td> <td>6,623</td> <td>&#160;</td> <td>(1,029)</td> </tr><tr><td>Commercial Banking</td> <td>&#160;</td> <td>1,512</td> <td>&#160;</td> <td>828</td> <td>&#160;</td> <td>2,340</td> <td>&#160;</td> <td>1,002</td> <td>&#160;</td> <td>3,071</td> <td>&#160;</td> <td>(731)</td> </tr><tr><td>Insurance and Wealth</td> <td>&#160;</td> <td>63</td> <td>&#160;</td> <td>886</td> <td>&#160;</td> <td>949</td> <td>&#160;</td> <td>447</td> <td>&#160;</td> <td>693</td> <td>&#160;</td> <td>256</td> </tr><tr><td>Other</td> <td>&#160;</td> <td>246</td> <td>&#160;</td> <td>127</td> <td>&#160;</td> <td>373</td> <td>&#160;</td> <td>306</td> <td>&#160;</td> <td>(1,130)</td> <td>&#160;</td> <td>1,504</td> </tr><tr><td>Group</td> <td>&#160;</td> <td>6,370</td> <td>&#160;</td> <td>2,886</td> <td>&#160;</td> <td>9,256</td> <td>&#160;</td> <td>3,832</td> <td>&#160;</td> <td>9,257</td> <td>&#160;</td> <td>-</td> </tr><tr><td>Reconciling items:</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Insurance grossing adjustment</td> <td>&#160;</td> <td>1,078</td> <td>&#160;</td> <td>(994)</td> <td>&#160;</td> <td>84</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Market volatility and asset sales</td> <td>&#160;</td> <td>73</td> <td>&#160;</td> <td>(171)</td> <td>&#160;</td> <td>(98)</td> <td>&#160;</td> <td>(84)</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Amortisation of purchased intangibles</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>(55)</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Restructuring costs</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>(54)</td> <td>&#160;</td> <td>(54)</td> <td>&#160;</td> <td>(502)</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Fair value unwind and other items</td> <td>&#160;</td> <td>(132)</td> <td>&#160;</td> <td>(1)</td> <td>&#160;</td> <td>(133)</td> <td>&#160;</td> <td>(148)</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Payment protection insurance provision</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>(200)</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Group - statutory</td> <td>&#160;</td> <td>7,389</td> <td>&#160;</td> <td>1,666</td> <td>&#160;</td> <td>9,055</td> <td>&#160;</td> <td>2,843</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr></table> &#160; <table border="0"><tr><td>&#160;</td> <td>&#160;</td> </tr><tr><td><sup>1</sup></td> <td>Restated, see page 70.</td> </tr></table> &#160;<br/><br/> &#160;<br/><strong>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS </strong>(continued)<br/> &#160;<br/><strong>2.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Segmental analysis </strong>(continued)<br/> &#160; <table border="1"><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td colspan="3"><strong>Segment external</strong></td> <td>&#160;</td> <td colspan="3"><strong>Segment customer</strong></td> <td>&#160;</td> <td colspan="3"><strong>Segment external</strong></td> </tr><tr><td>&#160;</td> <td>&#160;&#160;</td> <td colspan="3"><strong>assets</strong></td> <td>&#160;</td> <td colspan="3"><strong>deposits</strong></td> <td>&#160;</td> <td colspan="3"><strong>liabilities</strong></td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>At 30&#160;June</strong></td> <td>&#160;</td> <td>At 31&#160;Dec</td> <td>&#160;&#160;</td> <td><strong>At 30&#160;June</strong></td> <td>&#160;</td> <td>At 31&#160;Dec</td> <td>&#160;&#160;</td> <td><strong>At 30&#160;June</strong></td> <td>&#160;</td> <td>At 31&#160;Dec</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>2019</strong></td> <td>&#160;</td> <td>2018</td> <td>&#160;</td> <td><strong>2019</strong></td> <td>&#160;</td> <td>2018</td> <td>&#160;</td> <td><strong>2019</strong></td> <td>&#160;</td> <td>2018</td> </tr><tr><td>&#160;</td> <td>&#160;&#160;</td> <td><strong>&#163;m</strong></td> <td>&#160;&#160;</td> <td>&#163;m</td> <td>&#160;</td> <td><strong>&#163;m</strong></td> <td>&#160;&#160;</td> <td>&#163;m</td> <td>&#160;</td> <td><strong>&#163;m</strong></td> <td>&#160;&#160;</td> <td>&#163;m</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Retail</td> <td>&#160;</td> <td><strong>346,979</strong></td> <td>&#160;</td> <td>349,412</td> <td>&#160;</td> <td><strong>252,400</strong></td> <td>&#160;</td> <td>252,808</td> <td>&#160;</td> <td><strong>259,372</strong></td> <td>&#160;</td> <td>259,778</td> </tr><tr><td>Commercial Banking</td> <td>&#160;</td> <td><strong>158,234</strong></td> <td>&#160;</td> <td>165,030</td> <td>&#160;</td> <td><strong>150,553</strong></td> <td>&#160;</td> <td>148,635</td> <td>&#160;</td> <td><strong>191,275</strong></td> <td>&#160;</td> <td>191,687</td> </tr><tr><td>Insurance and Wealth</td> <td>&#160;</td> <td><strong>151,165</strong></td> <td>&#160;</td> <td>140,487</td> <td>&#160;</td> <td><strong>13,832</strong></td> <td>&#160;</td> <td>14,063</td> <td>&#160;</td> <td><strong>158,272</strong></td> <td>&#160;</td> <td>147,673</td> </tr><tr><td>Other</td> <td>&#160;</td> <td><strong>165,870</strong></td> <td>&#160;</td> <td>142,669</td> <td>&#160;</td> <td><strong>4,907</strong></td> <td>&#160;</td> <td>2,560</td> <td>&#160;</td> <td><strong>164,274</strong></td> <td>&#160;</td> <td>148,261</td> </tr><tr><td><strong><org>Total Group</org></strong></td> <td>&#160;</td> <td><strong>822,248</strong></td> <td>&#160;</td> <td>797,598</td> <td>&#160;</td> <td><strong>421,692</strong></td> <td>&#160;</td> <td>418,066</td> <td>&#160;</td> <td><strong>773,193</strong></td> <td>&#160;</td> <td>747,399</td> </tr></table> &#160;<br/> &#160;<br/><strong>3.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Net fee and commission income</strong><br/> &#160; <table border="1"><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>Half-year to</strong></td> <td>&#160;</td> <td>Half-year to</td> <td>&#160;</td> <td>Half-year to</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>30 June</strong></td> <td>&#160;</td> <td>30 June</td> <td>&#160;</td> <td>31 Dec</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>2019</strong></td> <td>&#160;&#160;&#160;&#160;</td> <td>2018</td> <td>&#160;</td> <td>2018</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>&#163;m</strong></td> <td>&#160;</td> <td>&#163;m</td> <td>&#160;</td> <td>&#163;m</td> </tr><tr><td><strong>Fee and commission income:</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Current accounts</td> <td>&#160;</td> <td><strong>325</strong></td> <td>&#160;</td> <td>315</td> <td>&#160;</td> <td>335</td> </tr><tr><td>Credit and debit card fees</td> <td>&#160;</td> <td><strong>469</strong></td> <td>&#160;</td> <td>487</td> <td>&#160;</td> <td>506</td> </tr><tr><td>Commercial banking and treasury fees</td> <td>&#160;</td> <td><strong>138</strong></td> <td>&#160;</td> <td>152</td> <td>&#160;</td> <td>153</td> </tr><tr><td>Unit trust and insurance broking</td> <td>&#160;</td> <td><strong>114</strong></td> <td>&#160;</td> <td>105</td> <td>&#160;</td> <td>116</td> </tr><tr><td>Private banking and asset management</td> <td>&#160;</td> <td><strong>46</strong></td> <td>&#160;</td> <td>49</td> <td>&#160;</td> <td>48</td> </tr><tr><td>Factoring</td> <td>&#160;</td> <td><strong>53</strong></td> <td>&#160;</td> <td>39</td> <td>&#160;</td> <td>44</td> </tr><tr><td>Other</td> <td>&#160;</td> <td><strong>283</strong></td> <td>&#160;</td> <td>225</td> <td>&#160;</td> <td>274</td> </tr><tr><td><strong>Total fee and commission income</strong></td> <td>&#160;</td> <td><strong>1,428</strong></td> <td>&#160;</td> <td>1,372</td> <td>&#160;</td> <td>1,476</td> </tr><tr><td>Fee and commission expense</td> <td>&#160;</td> <td><strong>(694)</strong></td> <td>&#160;</td> <td>(674)</td> <td>&#160;</td> <td>(712)</td> </tr><tr><td><strong>Net fee and commission income</strong></td> <td>&#160;</td> <td><strong>734</strong></td> <td>&#160;</td> <td>698</td> <td>&#160;</td> <td>764</td> </tr></table> &#160;<br/> Current account and credit and debit card fees principally arise in Retail; commercial banking, treasury and factoring fees arise in Commercial Banking; and private banking, unit trust, insurance broking and asset management fees arise in Insurance and Wealth.<br/> &#160;<br/><br/> &#160;<br/><strong>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS </strong>(continued)<br/> &#160;<br/><strong>4.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Operating expenses<a/></strong><br/> &#160; <table border="1"><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>Half-year to</strong></td> <td>&#160;</td> <td>Half-year to</td> <td>&#160;</td> <td>Half-year to</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>30 June</strong></td> <td>&#160;</td> <td>30 June</td> <td>&#160;</td> <td>31 Dec</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>2019</strong></td> <td>&#160;&#160;&#160;&#160;</td> <td>2018</td> <td>&#160;</td> <td>2018</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>&#163;m</strong></td> <td>&#160;</td> <td>&#163;m</td> <td>&#160;</td> <td>&#163;m</td> </tr><tr><td><strong>Administrative expenses</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Salaries and social security costs</td> <td>&#160;</td> <td><strong>1,627</strong></td> <td>&#160;</td> <td>1,663</td> <td>&#160;</td> <td>1,671</td> </tr><tr><td>Pensions and other post-retirement benefit schemes&#160; (note 13)</td> <td>&#160;</td> <td><strong>280</strong></td> <td>&#160;</td> <td>405</td> <td>&#160;</td> <td>300</td> </tr><tr><td>Restructuring and other staff costs</td> <td>&#160;</td> <td><strong>250</strong></td> <td>&#160;</td> <td>444</td> <td>&#160;</td> <td>279</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>2,157</strong></td> <td>&#160;</td> <td>&#160;2,512</td> <td>&#160;</td> <td>2,250</td> </tr><tr><td>Premises and equipment</td> <td>&#160;</td> <td><strong>242</strong></td> <td>&#160;</td> <td>&#160;367</td> <td>&#160;</td> <td>362</td> </tr><tr><td>Other expenses:</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>IT, data processing and communications</td> <td>&#160;</td> <td><strong>535</strong></td> <td>&#160;</td> <td>&#160;563</td> <td>&#160;</td> <td>558</td> </tr><tr><td>UK bank levy</td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td>&#160;-</td> <td>&#160;</td> <td>225</td> </tr><tr><td>Operations, marketing and other&#160;</td> <td>&#160;</td> <td><strong>626</strong></td> <td>&#160;</td> <td>&#160;534</td> <td>&#160;</td> <td>603</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>1,161</strong></td> <td>&#160;</td> <td>&#160;1,097</td> <td>&#160;</td> <td>1,386</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>3,560</strong></td> <td>&#160;</td> <td>&#160;3,976</td> <td>&#160;</td> <td>3,998</td> </tr><tr><td>Depreciation and amortisation</td> <td>&#160;</td> <td><strong>1,302</strong></td> <td>&#160;</td> <td>&#160;1,215</td> <td>&#160;</td> <td>1,190</td> </tr><tr><td><strong>Total operating expenses, excluding regulatory provisions</strong></td> <td>&#160;</td> <td><strong>4,862</strong></td> <td>&#160;</td> <td>&#160;5,191</td> <td>&#160;</td> <td>5,188</td> </tr><tr><td>Regulatory provisions (note 17):</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Payment protection insurance provision</td> <td>&#160;</td> <td><strong>650</strong></td> <td>&#160;</td> <td>&#160;550</td> <td>&#160;</td> <td>200</td> </tr><tr><td>Other regulatory provisions</td> <td>&#160;</td> <td><strong>143</strong></td> <td>&#160;</td> <td>&#160;257</td> <td>&#160;</td> <td>343</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>793</strong></td> <td>&#160;</td> <td>&#160;807</td> <td>&#160;</td> <td>543</td> </tr><tr><td><strong>Total operating expenses</strong></td> <td>&#160;</td> <td><strong>5,655</strong></td> <td>&#160;</td> <td>&#160;5,998</td> <td>&#160;</td> <td>5,731</td> </tr></table> &#160;<br/><br/> &#160;<br/><strong>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS </strong>(continued)<br/> &#160;<br/><strong>5.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Impairment<a/></strong><br/> &#160; <table border="1"><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>Half-year to </strong></td> <td>&#160;</td> <td>Half-year to</td> <td>&#160;</td> <td>Half-year to</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>30 June</strong></td> <td>&#160;</td> <td>30 June</td> <td>&#160;</td> <td>31 Dec</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>2019</strong></td> <td>&#160;</td> <td>2018</td> <td>&#160;</td> <td>2018</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>&#163;m</strong></td> <td>&#160;</td> <td>&#163;m</td> <td>&#160;</td> <td>&#163;m</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Impact of transfers between stages</td> <td>&#160;</td> <td><strong>379&#160;</strong></td> <td>&#160;</td> <td>352&#160;</td> <td>&#160;</td> <td>133&#160;</td> </tr><tr><td>Other changes in credit quality</td> <td>&#160;</td> <td><strong>223&#160;</strong></td> <td>&#160;</td> <td>242&#160;</td> <td>&#160;</td> <td>283&#160;</td> </tr><tr><td>Additions (repayments)</td> <td>&#160;</td> <td><strong>(64)</strong></td> <td>&#160;</td> <td>(70)</td> <td>&#160;</td> <td>(20)</td> </tr><tr><td>Methodology changes</td> <td>&#160;</td> <td><strong>16&#160;</strong></td> <td>&#160;</td> <td>(61)</td> <td>&#160;</td> <td>41&#160;</td> </tr><tr><td>Model changes</td> <td>&#160;</td> <td><strong>27&#160;</strong></td> <td>&#160;</td> <td>-&#160;</td> <td>&#160;</td> <td>-&#160;</td> </tr><tr><td>Other items</td> <td>&#160;</td> <td><strong>(2)</strong></td> <td>&#160;</td> <td>(7)</td> <td>&#160;</td> <td>44&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>200&#160;</strong></td> <td>&#160;</td> <td>104&#160;</td> <td>&#160;</td> <td>348&#160;</td> </tr><tr><td><strong>Total impairment charge</strong></td> <td>&#160;</td> <td><strong>579&#160;</strong></td> <td>&#160;</td> <td>456&#160;</td> <td>&#160;</td> <td>481&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>In respect of:</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Loans and advances to banks</td> <td>&#160;</td> <td><strong>1&#160;</strong></td> <td>&#160;</td> <td>-&#160;</td> <td>&#160;</td> <td>1&#160;</td> </tr><tr><td>Loans and advances to customers</td> <td>&#160;</td> <td><strong>598&#160;</strong></td> <td>&#160;</td> <td>470&#160;</td> <td>&#160;</td> <td>552&#160;</td> </tr><tr><td>Debt securities</td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td>-&#160;</td> <td>&#160;</td> <td>-&#160;</td> </tr><tr><td>Financial assets at amortised cost</td> <td>&#160;</td> <td><strong>599&#160;</strong></td> <td>&#160;</td> <td>470&#160;</td> <td>&#160;</td> <td>553&#160;</td> </tr><tr><td>Other assets</td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td>-&#160;</td> <td>&#160;</td> <td>1&#160;</td> </tr><tr><td>Impairment charge on drawn balances</td> <td>&#160;</td> <td><strong>599&#160;</strong></td> <td>&#160;</td> <td>470&#160;</td> <td>&#160;</td> <td>554&#160;</td> </tr><tr><td>Loan commitments and financial guarantees</td> <td>&#160;</td> <td><strong>(19)</strong></td> <td>&#160;</td> <td>(15)</td> <td>&#160;</td> <td>(58)</td> </tr><tr><td>Financial assets at fair value through other comprehensive income</td> <td>&#160;</td> <td><strong>(1)</strong></td> <td>&#160;</td> <td>1&#160;</td> <td>&#160;</td> <td>(15)</td> </tr><tr><td><strong>Total impairment charge</strong></td> <td>&#160;</td> <td><strong>579&#160;</strong></td> <td>&#160;</td> <td>456&#160;</td> <td>&#160;</td> <td>481&#160;</td> </tr></table> &#160;<br/> The Group&apos;s impairment charge comprises the following:<br/> &#160;<br/><em>Transfers between stages</em><br/> The net impact on the impairment charge of transfers between stages.<br/> &#160;<br/><em>Other changes in credit quality</em><br/> Changes in loss allowance as a result of movements in risk parameters that reflect changes in customer credit quality, but which have not resulted in a transfer to a different stage. This also contains the impact on the impairment charge of write-offs and recoveries, where the related loss allowances are reassessed to reflect ultimate realisable or recoverable value.<br/> &#160;<br/><em>Additions (repayments)</em><br/> Expected loss allowances are recognised on origination of new loans or further drawdowns of existing facilities. Repayments relate to the reduction of allowances as a result of repayments of outstanding balances.<br/> &#160;<br/><em>Methodology changes</em><br/> Increase or decrease in impairment charge as a result of adjustments to the models used for expected credit loss calculations; either as changes to the model inputs (risk parameters) or to the underlying assumptions.<br/> &#160;<br/><em>Model changes</em><br/> The impact on the impairment charge of changing the models used to calculate expected credit losses.<br/><br/> &#160;<br/><strong>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS </strong>(continued)<br/> &#160;<br/><strong>6.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Tax<a/>ation</strong><br/> &#160;<br/> In accordance with IAS 34, the Group&apos;s income tax expense for the half-year to <chron>30&#160;June 2019</chron> is based on the best estimate of the weighted-average annual income tax rate expected for the full financial year. The tax effects of one-off items are not included in the weighted-average annual income tax rate, but are recognised in the relevant period.<br/> &#160;<br/> An explanation of the relationship between tax expense and accounting profit is set out below:<br/> &#160; <table border="1"><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;&#160;&#160;&#160;</td> <td><strong>Half-year to</strong></td> <td>&#160;</td> <td>Half-year to</td> <td>&#160;</td> <td>Half-year to</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>30 June</strong></td> <td>&#160;</td> <td>30 June</td> <td>&#160;</td> <td>31 Dec</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>2019</strong></td> <td>&#160;</td> <td>2018<sup>1</sup></td> <td>&#160;</td> <td>2018<sup>1</sup></td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>&#163;m</strong></td> <td>&#160;</td> <td>&#163;m</td> <td>&#160;</td> <td>&#163;m</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Profit before tax</td> <td>&#160;</td> <td><strong>2,897</strong></td> <td>&#160;</td> <td>&#160;3,117</td> <td>&#160;</td> <td>2,843</td> </tr><tr><td>UK corporation tax thereon at 19 per cent (2018:19 per cent)</td> <td>&#160;</td> <td><strong>(550)</strong></td> <td>&#160;</td> <td>&#160;(592)</td> <td>&#160;</td> <td>(540)</td> </tr><tr><td>Impact of surcharge on banking profits</td> <td>&#160;</td> <td><strong>(221)</strong></td> <td>&#160;</td> <td>&#160;(175)</td> <td>&#160;</td> <td>(234)</td> </tr><tr><td>Non-deductible costs: conduct charges</td> <td>&#160;</td> <td><strong>(103)</strong></td> <td>&#160;</td> <td>&#160;(92)</td> <td>&#160;</td> <td>(9)</td> </tr><tr><td>Non-deductible costs: bank levy</td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td>&#160;-</td> <td>&#160;</td> <td>(43)</td> </tr><tr><td>Other non-deductible costs</td> <td>&#160;</td> <td><strong>(39)</strong></td> <td>&#160;</td> <td>&#160;(44)</td> <td>&#160;</td> <td>(46)</td> </tr><tr><td>Non-taxable income</td> <td>&#160;</td> <td><strong>45</strong></td> <td>&#160;</td> <td>&#160;51</td> <td>&#160;</td> <td>36</td> </tr><tr><td>Tax relief on coupons on other equity instruments</td> <td>&#160;</td> <td><strong>47</strong></td> <td>&#160;</td> <td>39</td> <td>&#160;</td> <td>44</td> </tr><tr><td>Tax-exempt gains on disposals</td> <td>&#160;</td> <td><strong>10</strong></td> <td>&#160;</td> <td>&#160;38</td> <td>&#160;</td> <td>86</td> </tr><tr><td>(Derecognition) recognition of losses that arose in prior years</td> <td>&#160;</td> <td><strong>12</strong></td> <td>&#160;</td> <td>&#160;(10)</td> <td>&#160;</td> <td>1</td> </tr><tr><td>Remeasurement of deferred tax due to rate changes</td> <td>&#160;</td> <td><strong>14</strong></td> <td>&#160;</td> <td>&#160;10</td> <td>&#160;</td> <td>22</td> </tr><tr><td>Differences in overseas tax rates</td> <td>&#160;</td> <td><strong>(15)</strong></td> <td>&#160;</td> <td>&#160;3</td> <td>&#160;</td> <td>3</td> </tr><tr><td>Policyholder tax</td> <td>&#160;</td> <td><strong>(38)</strong></td> <td>&#160;</td> <td>&#160;(36)</td> <td>&#160;</td> <td>(26)</td> </tr><tr><td>Policyholder deferred tax asset in respect of life assurance expenses</td> <td>&#160;</td> <td>-&#160;</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>73</td> </tr><tr><td>Adjustments in respect of prior&#160;years</td> <td>&#160;</td> <td><strong>166</strong></td> <td>&#160;</td> <td>&#160;8</td> <td>&#160;</td> <td>(21)</td> </tr><tr><td><strong>Tax expense</strong></td> <td>&#160;</td> <td><strong>(672)</strong></td> <td>&#160;</td> <td>&#160;(800)</td> <td>&#160;</td> <td>(654)</td> </tr></table> &#160; <table border="0"><tr><td>&#160;</td> <td>&#160;</td> </tr><tr><td><sup>1</sup></td> <td>Restated, see note 1.</td> </tr></table> &#160;<br/><strong>7.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Earnings per share<a/></strong><br/> &#160; <table border="1"><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;&#160;&#160;&#160;</td> <td><strong>Half-year to</strong></td> <td>&#160;</td> <td>Half-year to</td> <td>&#160;</td> <td>Half-year to</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>30 June</strong></td> <td>&#160;</td> <td>30 June</td> <td>&#160;</td> <td>31 Dec</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>2019</strong></td> <td>&#160;&#160;&#160;&#160;</td> <td>2018<sup>1</sup></td> <td>&#160;</td> <td>2018<sup>1</sup></td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Profit attributable to ordinary shareholders&#160;- basic and diluted (&#163;m)</td> <td>&#160;</td> <td><strong>1,942</strong></td> <td>&#160;</td> <td>&#160;2,075</td> <td>&#160;</td> <td>&#160;1,900</td> </tr></table> &#160; <table border="0"><tr><td>&#160;</td> <td>&#160;</td> </tr><tr><td><sup>1</sup></td> <td>Restated, see note 1.</td> </tr></table> &#160; <table border="1"><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Weighted average number of ordinary shares in issue&#160;- basic (m)</td> <td>&#160;</td> <td><strong>71,053</strong></td> <td>&#160;</td> <td>&#160;72,025</td> <td>&#160;</td> <td>&#160;71,257</td> </tr><tr><td>Adjustment for share options and awards (m)</td> <td>&#160;</td> <td><strong>663</strong></td> <td>&#160;</td> <td>&#160;670</td> <td>&#160;</td> <td>&#160;612</td> </tr><tr><td>Weighted average number of ordinary shares in issue&#160;- diluted (m)</td> <td>&#160;</td> <td><strong>71,716</strong></td> <td>&#160;</td> <td>&#160;72,695</td> <td>&#160;</td> <td>&#160;71,869</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Basic earnings per share</td> <td>&#160;</td> <td><strong>2.7p</strong></td> <td>&#160;</td> <td>2.9p</td> <td>&#160;</td> <td>2.6p</td> </tr><tr><td>Diluted earnings per share</td> <td>&#160;</td> <td><strong>2.7p</strong></td> <td>&#160;</td> <td>2.9p</td> <td>&#160;</td> <td>2.6p</td> </tr></table> &#160;<br/><br/> &#160;<br/><strong>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS </strong>(continued)<br/> &#160;<br/><strong>8.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <a/>Financial assets at fair value through profit or loss</strong><br/> &#160; <table border="1"><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>At 30 June</strong></td> <td>&#160;</td> <td>At 31&#160;Dec</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>2019</strong></td> <td>&#160;</td> <td>2018</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>&#163;m</strong></td> <td>&#160;</td> <td>&#163;m</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Trading assets</td> <td>&#160;</td> <td><strong>23,867</strong></td> <td>&#160;</td> <td>35,246</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Other financial assets at fair value through profit or loss:</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Treasury and other bills</td> <td>&#160;</td> <td><strong>20</strong></td> <td>&#160;</td> <td>20</td> </tr><tr><td>Loans and advances to customers</td> <td>&#160;</td> <td><strong>10,787</strong></td> <td>&#160;</td> <td>10,964</td> </tr><tr><td>Loans and advances to banks</td> <td>&#160;</td> <td><strong>2,033</strong></td> <td>&#160;</td> <td>2,178</td> </tr><tr><td>Debt securities</td> <td>&#160;</td> <td><strong>33,512</strong></td> <td>&#160;</td> <td>32,636</td> </tr><tr><td>Equity shares</td> <td>&#160;</td> <td><strong>84,889</strong></td> <td>&#160;</td> <td>77,485</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>131,241</strong></td> <td>&#160;</td> <td>123,283</td> </tr><tr><td><strong>Financial assets at fair value through profit or loss</strong></td> <td>&#160;</td> <td><strong>155,108</strong></td> <td>&#160;</td> <td>158,529</td> </tr></table> &#160;<br/> Included in the above is <money>&#163;125,272&#160;million</money> (<chron>31&#160;December 2018</chron>: <money>&#163;116,903 million</money>) of assets relating to the insurance businesses.<br/> &#160;<br/><strong>9.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Derivative financial instruments<a/></strong><br/> &#160; <table border="1"><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td colspan="3"><strong><chron>30 June 2019</chron></strong></td> <td>&#160;</td> <td colspan="3"><chron>31 December 2018</chron></td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>Fair value</strong></td> <td>&#160;</td> <td><strong>Fair value</strong></td> <td>&#160;</td> <td>Fair value</td> <td>&#160;</td> <td>Fair value</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>of assets</strong></td> <td>&#160;</td> <td><strong>of liabilities</strong></td> <td>&#160;</td> <td>of assets</td> <td>&#160;</td> <td>of liabilities</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>&#163;m</strong></td> <td>&#160;</td> <td><strong>&#163;m</strong></td> <td>&#160;</td> <td>&#163;m</td> <td>&#160;</td> <td>&#163;m</td> </tr><tr><td><strong>Hedging</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Derivatives designated as fair value hedges</td> <td>&#160;</td> <td><strong>949</strong></td> <td>&#160;</td> <td><strong>223</strong></td> <td>&#160;</td> <td>950</td> <td>&#160;</td> <td>216</td> </tr><tr><td>Derivatives designated as cash flow hedges</td> <td>&#160;</td> <td><strong>598</strong></td> <td>&#160;</td> <td><strong>965</strong></td> <td>&#160;</td> <td>613</td> <td>&#160;</td> <td>892</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>1,547</strong></td> <td>&#160;</td> <td><strong>1,188</strong></td> <td>&#160;</td> <td>1,563</td> <td>&#160;</td> <td>1,108</td> </tr><tr><td><strong>Trading</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Exchange rate contracts</td> <td>&#160;</td> <td><strong>5,718</strong></td> <td>&#160;</td> <td><strong>4,324</strong></td> <td>&#160;</td> <td>5,797</td> <td>&#160;</td> <td>4,753</td> </tr><tr><td>Interest rate contracts</td> <td>&#160;</td> <td><strong>18,560</strong></td> <td>&#160;</td> <td><strong>16,653</strong></td> <td>&#160;</td> <td>15,747</td> <td>&#160;</td> <td>14,632</td> </tr><tr><td>Credit derivatives</td> <td>&#160;</td> <td><strong>64</strong></td> <td>&#160;</td> <td><strong>137</strong></td> <td>&#160;</td> <td>99</td> <td>&#160;</td> <td>181</td> </tr><tr><td>Equity and other contracts</td> <td>&#160;</td> <td><strong>259</strong></td> <td>&#160;</td> <td><strong>724</strong></td> <td>&#160;</td> <td>389</td> <td>&#160;</td> <td>699</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>24,601</strong></td> <td>&#160;</td> <td><strong>21,838</strong></td> <td>&#160;</td> <td>22,032</td> <td>&#160;</td> <td>20,265</td> </tr><tr><td><strong>Total recognised derivative assets/liabilities</strong></td> <td>&#160;</td> <td><strong>26,148</strong></td> <td>&#160;</td> <td><strong>23,026</strong></td> <td>&#160;</td> 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colspan="3"><strong>Purchased&#160;</strong></td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3"><strong>or&#160; </strong><br/><strong>originated&#160;</strong></td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3"><strong>credit-&#160;</strong></td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3"><strong>Stage 1&#160;</strong></td> <td>&#160;</td> <td colspan="3"><strong>Stage 2&#160;</strong></td> <td>&#160;</td> <td colspan="3"><strong>Stage 3&#160;</strong></td> <td>&#160;</td> <td colspan="3"><strong>impaired&#160;</strong></td> <td>&#160;</td> <td colspan="3"><strong>Total&#160;</strong></td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3"><strong>&#163;m&#160;</strong></td> <td>&#160;</td> <td colspan="3"><strong>&#163;m&#160;</strong></td> <td>&#160;</td> <td colspan="3"><strong>&#163;m&#160;</strong></td> <td>&#160;</td> <td colspan="3"><strong>&#163;m&#160;</strong></td> <td>&#160;</td> <td colspan="3"><strong>&#163;m&#160;</strong></td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> </tr><tr><td>At <chron>1 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colspan="3"><strong>14,982&#160;</strong></td> <td>&#160;</td> <td colspan="3"><strong>(2,815)&#160;</strong></td> <td>&#160;</td> <td colspan="3"><strong>(149)&#160;</strong></td> <td>&#160;</td> <td colspan="3"><strong>(999)&#160;</strong></td> <td>&#160;</td> <td colspan="3"><strong>11,019&#160;</strong></td> <td>&#160;</td> </tr><tr><td>Transfers to Stage 1</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3"><strong>5,432&#160;</strong></td> <td>&#160;</td> <td colspan="3"><strong>(5,417)&#160;</strong></td> <td>&#160;</td> <td colspan="3"><strong>(15)&#160;</strong></td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">-&#160;</td> <td>&#160;</td> </tr><tr><td>Transfers to Stage 2</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3"><strong>(12,982)&#160;</strong></td> <td>&#160;</td> <td colspan="3"><strong>13,241&#160;</strong></td> <td>&#160;</td> <td colspan="3"><strong>(259)&#160;</strong></td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">-&#160;</td> <td>&#160;</td> </tr><tr><td>Transfers to Stage 3</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3"><strong>(741)&#160;</strong></td> <td>&#160;</td> <td colspan="3"><strong>(1,069)&#160;</strong></td> <td>&#160;</td> <td colspan="3"><strong>1,810&#160;</strong></td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">-&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3"><strong>(8,291)&#160;</strong></td> <td>&#160;</td> <td colspan="3"><strong>6,755&#160;</strong></td> <td>&#160;</td> <td colspan="3"><strong>1,536&#160;</strong></td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">-&#160;</td> <td>&#160;</td> </tr><tr><td>Recoveries</td> <td>&#160;</td> <td colspan="3">&#160;</td> 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</tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr></table> &#160;<br/><em>(B) Loans and advances to banks</em><br/> &#160; <table border="1"><tr><td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="2">&#160;</td> </tr><tr><td>At <chron>1 January 2019</chron></td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3"><strong>6,282</strong></td> <td>&#160;</td> <td colspan="3"><strong>3</strong></td> <td>&#160;</td> <td colspan="3"><strong>-</strong></td> <td>&#160;</td> <td colspan="3"><strong>-</strong></td> <td>&#160;</td> <td colspan="3"><strong>6,285</strong></td> <td>&#160;</td> </tr><tr><td>Exchange and other adjustments</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3"><strong>(23)</strong></td> <td>&#160;</td> <td colspan="3"><strong>2</strong></td> <td>&#160;</td> <td colspan="3"><strong>-</strong></td> <td>&#160;</td> <td colspan="3"><strong>-</strong></td> <td>&#160;</td> <td colspan="3"><strong>(21)</strong></td> <td>&#160;</td> </tr><tr><td>Transfers to Stage 2</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3"><strong>(10)</strong></td> <td>&#160;</td> <td colspan="3"><strong>10</strong></td> <td>&#160;</td> <td colspan="3"><strong>-</strong></td> <td>&#160;</td> <td colspan="3"><strong>-</strong></td> <td>&#160;</td> <td colspan="3"><strong>-</strong></td> <td>&#160;</td> </tr><tr><td>Additions (repayments)</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3"><strong>2,113</strong></td> <td>&#160;</td> <td colspan="3"><strong>-</strong></td> <td>&#160;</td> <td colspan="3"><strong>-</strong></td> <td>&#160;</td> <td colspan="3"><strong>-</strong></td> <td>&#160;</td> <td colspan="3"><strong>2,113</strong></td> <td>&#160;</td> </tr><tr><td><strong>At <chron>30 June 2019</chron></strong></td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3"><strong>8,362</strong></td> <td>&#160;</td> <td colspan="3"><strong>15</strong></td> <td>&#160;</td> <td colspan="3"><strong>-</strong></td> <td>&#160;</td> <td colspan="3"><strong>-</strong></td> <td>&#160;</td> <td colspan="3"><strong>8,377</strong></td> <td>&#160;</td> </tr><tr><td colspan="5"><strong>Allowance for impairment losses</strong></td> <td>&#160;</td> <td colspan="3"><strong>(3)</strong></td> <td>&#160;</td> <td colspan="3"><strong>-</strong></td> <td>&#160;</td> <td colspan="3"><strong>-</strong></td> <td>&#160;</td> <td colspan="3"><strong>-</strong></td> <td>&#160;</td> <td colspan="3"><strong>(3)</strong></td> <td>&#160;</td> </tr><tr><td colspan="5"><strong>Total loans and advances to banks</strong></td> <td>&#160;</td> <td colspan="3"><strong>8,359</strong></td> <td>&#160;</td> <td colspan="3"><strong>15</strong></td> <td>&#160;</td> <td colspan="3"><strong>-</strong></td> <td>&#160;</td> <td colspan="3"><strong>-</strong></td> <td>&#160;</td> <td colspan="3"><strong>8,374</strong></td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr></table> &#160;<br/><em>(C) Debt securities</em><br/> &#160; <table border="1"><tr><td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="2">&#160;</td> </tr><tr><td>At <chron>1 January 2019</chron></td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3"><strong>5,238</strong></td> <td>&#160;</td> <td colspan="3"><strong>-</strong></td> <td>&#160;</td> <td colspan="3"><strong>6</strong></td> <td>&#160;</td> <td colspan="3"><strong>-</strong></td> <td>&#160;</td> <td colspan="3"><strong>5,244</strong></td> <td>&#160;</td> </tr><tr><td>Exchange and other adjustments</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3"><strong>(6)</strong></td> <td>&#160;</td> <td colspan="3"><strong>-</strong></td> <td>&#160;</td> <td colspan="3"><strong>-</strong></td> <td>&#160;</td> <td colspan="3"><strong>-</strong></td> <td>&#160;</td> <td colspan="3"><strong>(6)</strong></td> <td>&#160;</td> </tr><tr><td>Additions (repayments)</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3"><strong>202</strong></td> <td>&#160;</td> <td colspan="3"><strong>-</strong></td> <td>&#160;</td> <td colspan="3"><strong>-</strong></td> <td>&#160;</td> <td colspan="3"><strong>-</strong></td> <td>&#160;</td> <td colspan="3"><strong>202</strong></td> <td>&#160;</td> </tr><tr><td colspan="5">Assets which have been derecognised</td> <td>&#160;</td> <td colspan="3"><strong>-</strong></td> <td>&#160;</td> <td colspan="3"><strong>-</strong></td> <td>&#160;</td> <td colspan="3"><strong>(2)</strong></td> <td>&#160;</td> <td colspan="3"><strong>-</strong></td> <td>&#160;</td> <td colspan="3"><strong>(2)</strong></td> <td>&#160;</td> </tr><tr><td colspan="5">Financial assets that have been written off</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3"><strong>(1)</strong></td> <td>&#160;</td> <td colspan="3"><strong>-</strong></td> <td>&#160;</td> <td colspan="3"><strong>(1)</strong></td> <td>&#160;</td> </tr><tr><td><strong>At <chron>30 June 2019</chron></strong></td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3"><strong>5,434</strong></td> <td>&#160;</td> <td colspan="3"><strong>-</strong></td> <td>&#160;</td> <td colspan="3"><strong>3</strong></td> <td>&#160;</td> <td colspan="3"><strong>-</strong></td> <td>&#160;</td> <td colspan="3"><strong>5,437</strong></td> <td>&#160;</td> </tr><tr><td colspan="5"><strong>Allowance for impairment losses</strong></td> <td>&#160;</td> <td colspan="3"><strong>-</strong></td> <td>&#160;</td> <td colspan="3"><strong>-</strong></td> <td>&#160;</td> <td colspan="3"><strong>(3)</strong></td> 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<td>&#160;</td> <td colspan="3"><strong>28,233</strong></td> <td>&#160;</td> <td colspan="3"><strong>4,862</strong></td> <td>&#160;</td> <td colspan="3"><strong>14,433</strong></td> <td>&#160;</td> <td colspan="3"><strong>508,946</strong></td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr></table> &#160;<br/> Exchange and other adjustments includes certain adjustments, prescribed by IFRS 9, in respect of purchased or originated credit-impaired financial assets<br/><br/> &#160;<br/><strong>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS </strong>(continued)<br/> &#160;<br/><strong>10.&#160;&#160;&#160;&#160;&#160;&#160; Financial assets at amortised cost </strong>(continued)<br/> &#160;<br/> Year ended <chron>31 December 2018</chron><br/> &#160;<br/><em>(A) Loans and advances to customers</em><br/> &#160; <table border="1"><tr><td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="2">&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">Purchased&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">or&#160;<br/> originated&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">credit-&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">Stage 1&#160;</td> <td>&#160;</td> <td colspan="3">Stage 2&#160;</td> <td>&#160;</td> <td colspan="3">Stage 3&#160;</td> <td>&#160;</td> <td colspan="3">impaired&#160;</td> <td>&#160;</td> <td colspan="3">Total&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#163;m&#160;</td> <td>&#160;</td> <td colspan="3">&#163;m&#160;</td> <td>&#160;</td> <td colspan="3">&#163;m&#160;</td> <td>&#160;</td> <td colspan="3">&#163;m&#160;</td> <td>&#160;</td> <td colspan="3">&#163;m&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> </tr><tr><td>At <chron>1 January 2018</chron></td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">403,881&#160;</td> <td>&#160;</td> <td colspan="3">37,245&#160;</td> <td>&#160;</td> <td colspan="3">5,140&#160;</td> <td>&#160;</td> <td colspan="3">17,973&#160;</td> <td>&#160;</td> <td colspan="3">464,239&#160;</td> <td>&#160;</td> </tr><tr><td>Exchange and other adjustments</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">958&#160;</td> <td>&#160;</td> <td colspan="3">32&#160;</td> <td>&#160;</td> <td colspan="3">-&#160;</td> <td>&#160;</td> <td colspan="3">-&#160;</td> <td>&#160;</td> <td colspan="3">990&#160;</td> <td>&#160;</td> </tr><tr><td>Additions (repayments)</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">34,942&#160;</td> <td>&#160;</td> <td colspan="3">(2,187)</td> <td>&#160;</td> <td colspan="3">(2,074)</td> <td>&#160;</td> <td colspan="3">(2,609)</td> <td>&#160;</td> <td colspan="3">28,072&#160;</td> <td>&#160;</td> </tr><tr><td>Transfers to Stage 1</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">19,524&#160;</td> <td>&#160;</td> <td colspan="3">(19,501)</td> <td>&#160;</td> <td colspan="3">(23)</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">-&#160;</td> <td>&#160;</td> </tr><tr><td>Transfers to Stage 2</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">(15,743)</td> <td>&#160;</td> <td colspan="3">15,996&#160;</td> <td>&#160;</td> <td colspan="3">(253)</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">-&#160;</td> <td>&#160;</td> </tr><tr><td>Transfers to Stage 3</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">(2,031)</td> <td>&#160;</td> <td colspan="3">(2,220)</td> <td>&#160;</td> <td colspan="3">4,251&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">-&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">1,750&#160;</td> <td>&#160;</td> <td colspan="3">(5,725)</td> <td>&#160;</td> <td colspan="3">3,975&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">-&#160;</td> <td>&#160;</td> </tr><tr><td>Recoveries</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">-</td> <td>&#160;</td> <td colspan="3">-&#160;</td> <td>&#160;</td> <td colspan="3">553&#160;</td> <td>&#160;</td> <td colspan="3">27&#160;</td> <td>&#160;</td> <td colspan="3">580&#160;</td> <td>&#160;</td> </tr><tr><td>Disposal of businesses</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">-</td> <td>&#160;</td> <td colspan="3">(4,020)</td> <td>&#160;</td> <td colspan="3">(277)</td> <td>&#160;</td> <td colspan="3">-&#160;</td> <td>&#160;</td> <td colspan="3">(4,297)</td> <td>&#160;</td> </tr><tr><td colspan="5">Financial assets that have been written off</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">(1,576)</td> <td>&#160;</td> <td colspan="3">-&#160;</td> <td>&#160;</td> <td colspan="3">(1,576)</td> <td>&#160;</td> </tr><tr><td>At <chron>31 December 2018</chron></td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">441,531&#160;</td> <td>&#160;</td> <td colspan="3">25,345&#160;</td> <td>&#160;</td> <td colspan="3">5,741&#160;</td> <td>&#160;</td> <td colspan="3">15,391&#160;</td> <td>&#160;</td> <td colspan="3">488,008&#160;</td> <td>&#160;</td> </tr><tr><td>Allowance for impairment losses</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">(525)</td> <td>&#160;</td> <td colspan="3">(994)</td> <td>&#160;</td> <td colspan="3">(1,553)</td> <td>&#160;</td> <td colspan="3">(78)</td> <td>&#160;</td> <td colspan="3">(3,150)</td> <td>&#160;</td> </tr><tr><td colspan="5">Total loans and advances to customers</td> <td>&#160;</td> <td colspan="3">441,006&#160;</td> <td>&#160;</td> <td colspan="3">24,351&#160;</td> <td>&#160;</td> <td colspan="3">4,188&#160;</td> <td>&#160;</td> <td colspan="3">15,313&#160;</td> <td>&#160;</td> <td colspan="3">484,858&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr></table> &#160;<br/><em>(B) Loans and advances to banks</em><br/> &#160; <table border="1"><tr><td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="2">&#160;</td> </tr><tr><td>At <chron>1 January 2018</chron></td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">4,245&#160;</td> <td>&#160;</td> <td colspan="3">2&#160;</td> <td>&#160;</td> <td colspan="3">-&#160;</td> <td>&#160;</td> <td colspan="3">-&#160;</td> <td>&#160;</td> <td colspan="3">4,247&#160;</td> <td>&#160;</td> </tr><tr><td>Exchange and other adjustments</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">(29)</td> <td>&#160;</td> <td colspan="3">1&#160;</td> <td>&#160;</td> <td colspan="3">-&#160;</td> <td>&#160;</td> <td colspan="3">-&#160;</td> <td>&#160;</td> <td colspan="3">(28)</td> <td>&#160;</td> </tr><tr><td>Additions (repayments)</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">2,066&#160;</td> <td>&#160;</td> <td colspan="3">-&#160;</td> <td>&#160;</td> <td colspan="3">-&#160;</td> <td>&#160;</td> <td colspan="3">-&#160;</td> <td>&#160;</td> <td colspan="3">2,066&#160;</td> <td>&#160;</td> </tr><tr><td>At <chron>31 December 2018</chron></td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">6,282&#160;</td> <td>&#160;</td> <td colspan="3">3&#160;</td> <td>&#160;</td> <td colspan="3">-&#160;</td> <td>&#160;</td> <td colspan="3">-&#160;</td> <td>&#160;</td> <td colspan="3">6,285&#160;</td> <td>&#160;</td> </tr><tr><td>Allowance for impairment losses</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">(2)</td> <td>&#160;</td> <td colspan="3">-&#160;</td> <td>&#160;</td> <td colspan="3">-&#160;</td> <td>&#160;</td> <td colspan="3">-&#160;</td> <td>&#160;</td> <td colspan="3">(2)</td> <td>&#160;</td> </tr><tr><td colspan="5">Total loans and advances to banks</td> <td>&#160;</td> <td colspan="3">6,280&#160;</td> <td>&#160;</td> <td colspan="3">3&#160;</td> <td>&#160;</td> <td colspan="3">-&#160;</td> <td>&#160;</td> <td colspan="3">-&#160;</td> <td>&#160;</td> <td colspan="3">6,283&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr></table> &#160;<br/><em>(C) Debt securities</em><br/> &#160; <table border="1"><tr><td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="2">&#160;</td> </tr><tr><td>At <chron>1 January 2018</chron></td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">3,291&#160;</td> <td>&#160;</td> <td colspan="3">-&#160;</td> <td>&#160;</td> <td colspan="3">49&#160;</td> <td>&#160;</td> <td colspan="3">-&#160;</td> <td>&#160;</td> <td colspan="3">3,340&#160;</td> <td>&#160;</td> </tr><tr><td>Exchange and other adjustments</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">77&#160;</td> <td>&#160;</td> <td colspan="3">-&#160;</td> <td>&#160;</td> <td colspan="3">(14)</td> <td>&#160;</td> <td colspan="3">-&#160;</td> <td>&#160;</td> <td colspan="3">63&#160;</td> <td>&#160;</td> </tr><tr><td>Additions (repayments)</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">1,870&#160;</td> <td>&#160;</td> <td colspan="3">-&#160;</td> <td>&#160;</td> <td colspan="3">-&#160;</td> <td>&#160;</td> <td colspan="3">-&#160;</td> <td>&#160;</td> <td colspan="3">1,870&#160;</td> <td>&#160;</td> </tr><tr><td colspan="5">Financial assets that have been written off</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">(29)</td> <td>&#160;</td> <td colspan="3">-&#160;</td> <td>&#160;</td> <td colspan="3">(29)</td> <td>&#160;</td> </tr><tr><td>At <chron>31 December 2018</chron></td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">5,238&#160;</td> <td>&#160;</td> <td colspan="3">-&#160;</td> <td>&#160;</td> <td colspan="3">6&#160;</td> <td>&#160;</td> <td colspan="3">-&#160;</td> <td>&#160;</td> <td colspan="3">5,244&#160;</td> <td>&#160;</td> </tr><tr><td>Allowance for impairment losses</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">-&#160;</td> <td>&#160;</td> <td colspan="3">-&#160;</td> <td>&#160;</td> <td colspan="3">(6)</td> <td>&#160;</td> <td colspan="3">-&#160;</td> <td>&#160;</td> <td colspan="3">(6)</td> <td>&#160;</td> </tr><tr><td>Total debt securities</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">5,238&#160;</td> <td>&#160;</td> <td colspan="3">-&#160;</td> <td>&#160;</td> <td colspan="3">-&#160;</td> <td>&#160;</td> <td colspan="3">-&#160;</td> <td>&#160;</td> <td colspan="3">5,238&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> </tr><tr><td colspan="5">Total financial assets at amortised cost</td> <td>&#160;</td> <td colspan="3">452,524&#160;</td> <td>&#160;</td> <td colspan="3">24,354&#160;</td> <td>&#160;</td> <td colspan="3">4,188&#160;</td> <td>&#160;</td> <td colspan="3">15,313&#160;</td> <td>&#160;</td> <td colspan="3">496,379&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr></table> &#160;<br/><br/> &#160;<br/><strong>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS </strong>(continued)<br/> &#160;<br/><strong>10.&#160;&#160;&#160;&#160;&#160;&#160; Financial assets at amortised cost </strong>(continued)<br/> &#160;<br/> 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 <chron>30 June 2019</chron>, with the exception of those held within Purchased or originated credit-impaired, which are not transferrable. Net increase and decrease in balances 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 write-off.<br/> &#160;<br/> Loans and advances to customers include advances securitised under the Group&apos;s securitisation and covered bond programmes (see note 12).<br/><br/> &#160;<br/><strong>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS </strong>(continued)<br/> &#160;<br/><strong>1</strong><strong>1.&#160;&#160;&#160;&#160;&#160;&#160; Allowance for impairment losses</strong><br/> &#160;<br/><strong>Half-year to <chron>30 June 2019</chron></strong><br/> &#160; <table border="1"><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3"><strong>Purchased&#160;</strong></td> <td>&#160;</td> <td colspan="3">&#160;</td> </tr><tr><td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3"><strong>or&#160;</strong><br/><strong>originated&#160;</strong></td> <td>&#160;</td> <td colspan="3">&#160;</td> </tr><tr><td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3"><strong>credit-&#160;&#160;</strong></td> <td>&#160;</td> <td colspan="3">&#160;</td> </tr><tr><td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3"><strong>Stage 1&#160;&#160;</strong></td> <td>&#160;</td> <td colspan="3"><strong>Stage 2&#160;&#160;</strong></td> <td>&#160;</td> <td colspan="3"><strong>Stage 3&#160;&#160;&#160;</strong></td> <td>&#160;</td> <td colspan="3"><strong>impaired&#160;&#160;</strong></td> <td>&#160;</td> <td colspan="3"><strong>Total&#160;</strong></td> </tr><tr><td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3"><strong>&#163;m&#160;&#160;</strong></td> <td>&#160;</td> <td colspan="3"><strong>&#163;m&#160;&#160;</strong></td> <td>&#160;</td> <td colspan="3"><strong>&#163;m&#160;&#160;&#160;</strong></td> <td>&#160;</td> <td colspan="3"><strong>&#163;m&#160;&#160;</strong></td> <td>&#160;</td> <td colspan="3"><strong>&#163;m&#160;</strong></td> </tr><tr><td><em>In respect of drawn balances</em></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>At <chron>1 January 2019</chron></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>527&#160;&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>994&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>1,570&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>78&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>3,169&#160;</strong></td> <td>&#160;</td> </tr><tr><td>Exchange and other adjustments</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>5&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>(86)&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>324&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>195&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>438&#160;</strong></td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Transfers to Stage 1</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>329&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>(323)&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>(6)&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> </tr><tr><td>Transfers to Stage 2</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>(50)&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>86&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>(36)&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> </tr><tr><td>Transfers to Stage 3</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>(7)&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>(36)&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>43&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> </tr><tr><td>Impact of transfers between stages</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>(280)&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>373&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>276&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>369&#160;</strong></td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>(8)&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>100&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>277&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>369&#160;</strong></td> <td>&#160;</td> </tr><tr><td>Other items charged to the income statement</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>100&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>(55)&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>305&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>(120)&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>230&#160;</strong></td> <td>&#160;</td> </tr><tr><td>Charge to the income statement (note 5)</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>92&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>45&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>582&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>(120)&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>599&#160;</strong></td> <td>&#160;</td> </tr><tr><td>Advances written off</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>(1,069)&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>(1,069)&#160;</strong></td> <td>&#160;</td> </tr><tr><td>Recoveries of advances written off in previous years</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>201&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>28&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>229&#160;&#160;</strong></td> <td>&#160;</td> </tr><tr><td>Discount unwind</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>(28)&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>(28)&#160;</strong></td> <td>&#160;</td> </tr><tr><td><strong>At <chron>30 June 2019</chron></strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>624&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>953&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>1,580&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>181&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>3,338&#160;&#160;</strong></td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td><em>In respect of undrawn balances</em></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>At <chron>1 January 2019</chron></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>123&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>64&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>6&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>193&#160;</strong></td> <td>&#160;</td> </tr><tr><td>Exchange and other adjustments</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>(1)&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>(1)&#160;</strong></td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;&#160;&#160;&#160;&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Transfers to Stage 1</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>17&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>(17)&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> </tr><tr><td>Transfers to Stage 2</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>(5)&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>5&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> </tr><tr><td>Transfers to Stage 3</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>(2)&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>2&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> </tr><tr><td>Impact of transfers between stages</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>(14)&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>25&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>(1)&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>10&#160;&#160;</strong></td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>(2)&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>11&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>1&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>10&#160;&#160;</strong></td> <td>&#160;</td> </tr><tr><td>Other items charged to the income statement</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>(32)&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>5&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>(2)&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>(29)&#160;</strong></td> <td>&#160;</td> </tr><tr><td>Charge to the income statement</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>(34)&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>16&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>(1)&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>(19)&#160;</strong></td> <td>&#160;</td> </tr><tr><td><strong>At <chron>30 June 2019</chron></strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>89&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>79&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>5&#160;&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>173&#160;&#160;</strong></td> <td>&#160;</td> </tr><tr><td><strong>Total allowance for impairment losses</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>713&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>1,032&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>1,585&#160;&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>181&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>3,511&#160;&#160;</strong></td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td><em>In respect of:</em></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Loans and advances to banks</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>3&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>3&#160;&#160;</strong></td> <td>&#160;</td> </tr><tr><td>Loans and advances to customers</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>621&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>953&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>1,558&#160;&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>181&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>3,313&#160;&#160;</strong></td> <td>&#160;</td> </tr><tr><td>Debt securities</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>3&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>3&#160;&#160;</strong></td> <td>&#160;</td> </tr><tr><td>Other assets</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>19&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>19&#160;&#160;</strong></td> <td>&#160;</td> </tr><tr><td>Drawn balances</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>624&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>953&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>1,580&#160;&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>181&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>3,338&#160;&#160;</strong></td> <td>&#160;</td> </tr><tr><td>Provisions in relation&#160; to loan commitments and<br/> financial guarantees</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>89&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>79&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>5&#160;&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>173&#160;&#160;</strong></td> <td>&#160;</td> </tr><tr><td><strong>Total allowance for impairment losses</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>713&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>1,032&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>1,585&#160;&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>181&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>3,511&#160;&#160;</strong></td> <td>&#160;</td> </tr><tr><td colspan="3">Expected credit loss in respect of financial assets at fair<br/> value through other comprehensive income<br/> (memorandum item)</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>1&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>-&#160;&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>-&#160;</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>1&#160;&#160;</strong></td> <td>&#160;</td> </tr></table> &#160;<br/> Exchange and other adjustments includes certain adjustments, prescribed by IFRS 9, in respect of purchased or originated credit-impaired financial assets.<br/><br/> &#160;<br/><strong>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS </strong>(continued)<br/> &#160;<br/><strong>1</strong><strong>1.&#160;&#160;&#160;&#160;&#160;&#160; Allowance for impairment losses </strong>(continued)<br/> &#160;<br/><strong>Year ended <chron>31 December 2018</chron></strong><br/> &#160; <table border="1"><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">Purchased&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> </tr><tr><td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">or&#160;<br/> &#160;originated&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> </tr><tr><td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">credit-&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> </tr><tr><td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">Stage 1&#160;&#160;</td> <td>&#160;</td> <td colspan="3">Stage 2&#160;&#160;</td> <td>&#160;</td> <td colspan="3">Stage 3&#160;&#160;&#160;</td> <td>&#160;</td> <td colspan="3">Impaired&#160;</td> <td>&#160;</td> <td colspan="3">Total</td> </tr><tr><td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#163;m&#160;&#160;</td> <td>&#160;</td> <td colspan="3">&#163;m&#160;&#160;</td> <td>&#160;</td> <td colspan="3">&#163;m&#160;&#160;&#160;</td> <td>&#160;</td> <td colspan="3">&#163;m&#160;</td> <td>&#160;</td> <td colspan="3">&#163;m</td> </tr><tr><td><em>In respect of drawn balances</em></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>At <chron>1 January 2018</chron></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>590&#160;&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>1,147&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>1,491&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>32&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>3,260&#160;</td> <td>&#160;</td> </tr><tr><td>Exchange and other adjustments</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>2&#160;&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>-&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>133&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>-&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>135&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Transfers to Stage 1</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>304&#160;&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>(299)</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>(5)</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>-&#160;</td> <td>&#160;</td> </tr><tr><td>Transfers to Stage 2</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>(46)&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>85&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>(39)</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>-&#160;</td> <td>&#160;</td> </tr><tr><td>Transfers to Stage 3</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>(32)&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>(131)</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>163&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>-&#160;</td> <td>&#160;</td> </tr><tr><td>Impact of transfers between stages</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>(233)&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>401&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>325&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>493&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>(7)</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>56&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>444&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>493&#160;</td> <td>&#160;</td> </tr><tr><td>Other items charged to the income statement</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>(58)</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>(107)</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>696&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>-&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>531&#160;</td> <td>&#160;</td> </tr><tr><td>Charge to the income statement (note 5)</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>(65)</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>(51)</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>1,140&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>-&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>1,024&#160;</td> <td>&#160;</td> </tr><tr><td>Advances written off</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>(1,605)</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>-&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>(1,605)</td> <td>&#160;</td> </tr><tr><td>Disposal of businesses</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>-&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>(102)</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>(79)</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>-&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>(181)</td> <td>&#160;</td> </tr><tr><td>Recoveries of advances written off in previous years</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>553&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>27&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>580&#160;</td> <td>&#160;</td> </tr><tr><td>Discount unwind</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>(63)</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>19&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>(44)</td> <td>&#160;</td> </tr><tr><td>At <chron>31 December 2018</chron></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>527&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>994&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>1,570&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>78&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>3,169&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td><em>In respect of undrawn balances</em></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>At <chron>1 January 2018</chron></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>147&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>126&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>-&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>-&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>273&#160;</td> <td>&#160;</td> </tr><tr><td>Exchange and other adjustments</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>(5)</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>(14)</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>12&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>-&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>(7)</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Transfers to Stage 1</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>28&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>(28)</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>-&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>-&#160;</td> <td>&#160;</td> </tr><tr><td>Transfers to Stage 2</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>(6)</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>6&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>-&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>-&#160;</td> <td>&#160;</td> </tr><tr><td>Transfers to Stage 3</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>(2)</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>(5)</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>7&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>-&#160;</td> <td>&#160;</td> </tr><tr><td>Impact of transfers between stages</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>(25)</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>22&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>(5)</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>(8)&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>(5)</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>(5)</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>2&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>(8)&#160;</td> <td>&#160;</td> </tr><tr><td>Other items charged to the income statement</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>(14)</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>(43)</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>(8)</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>-&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>(65)</td> <td>&#160;</td> </tr><tr><td>Charge to the income statement</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>(19)</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>(48)</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>(6)</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>-&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>(73)</td> <td>&#160;</td> </tr><tr><td>At <chron>31 December 2018</chron></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>123&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>64&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>6&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>-&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>193&#160;</td> <td>&#160;</td> </tr><tr><td>Total allowance for impairment losses</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>650&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>1,058&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>1,576&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>78&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>3,362&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td><em>In respect of:</em></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Loans and advances to banks</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>2&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>-&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>-&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>-&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>2&#160;</td> <td>&#160;</td> </tr><tr><td>Loans and advances to customers</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>525&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>994&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>1,553&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>78&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>3,150&#160;</td> <td>&#160;</td> </tr><tr><td>Debt securities</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>-&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>-&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>6&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>-&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>6&#160;</td> <td>&#160;</td> </tr><tr><td>Other assets</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>-&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>-&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>11&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>-&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>11&#160;</td> <td>&#160;</td> </tr><tr><td>Drawn balances</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>527</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>994&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>1,570</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>78&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>3,169&#160;</td> <td>&#160;</td> </tr><tr><td>Provisions in relation&#160; to loan commitments and<br/> financial guarantees</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>123&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>64&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>6&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>-&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>193&#160;</td> <td>&#160;</td> </tr><tr><td>Total allowance for impairment losses</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>650&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>1,058&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>1,576&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>78&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>3,362&#160;</td> <td>&#160;</td> </tr><tr><td colspan="3">Expected credit loss in respect of financial assets at fair<br/> value through other comprehensive income<br/> (memorandum item)</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>1&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>-&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>-&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>-&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>1&#160;</td> <td>&#160;</td> </tr></table><br/> &#160;<br/><strong>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS </strong>(continued)<br/> &#160;<br/><strong>1</strong><strong>1.&#160;&#160;&#160;&#160;&#160;&#160; Allowance for impairment losses </strong>(continued)<br/> &#160;<br/> The Group&apos;s income statement charge comprises: <table border="1"><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>Half-year </strong></td> <td>&#160;</td> <td><strong>Year ended </strong></td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>to 30 June</strong></td> <td>&#160;</td> <td><strong>31 Dec</strong></td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>2019</strong></td> <td>&#160;</td> <td><strong>2018</strong></td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>&#163;m</strong></td> <td>&#160;</td> <td><strong>&#163;m</strong></td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Drawn balances</td> <td>&#160;</td> <td><strong>599</strong></td> <td>&#160;</td> <td>1,024</td> </tr><tr><td>Undrawn balances</td> <td>&#160;</td> <td><strong>(19)</strong></td> <td>&#160;</td> <td>(73)</td> </tr><tr><td>Financial assets at fair value through other comprehensive income</td> <td>&#160;</td> <td><strong>(1)</strong></td> <td>&#160;</td> <td>(14)</td> </tr><tr><td><strong>Total</strong></td> <td>&#160;</td> <td><strong>579</strong></td> <td>&#160;</td> <td>937</td> </tr></table> &#160;<br/> 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 <chron>30 June 2019</chron>, with the exception of those held within purchased or originated credit-impaired, which are not transferable. As assets are transferred between stages, the resulting change in expected credit loss of <money>&#163;369 million</money> for drawn balances, and <money>&#163;10 million</money> for undrawn balances, is presented separately, in the stage in which the allowance is recognised at the end of the reporting period.<br/> &#160;<br/> Net increase and decrease in balances comprise the movements in the expected credit loss as a result of 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 write-off. Consequently, recoveries on assets previously written-off will also occur in Stage 3 only.<br/> &#160;<br/><br/> &#160;<br/><strong>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS </strong>(continued)<br/> &#160;<br/><strong>12.&#160;&#160;&#160;&#160;&#160;&#160; Debt securities in issue<a/></strong><br/> &#160; <table border="1"><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td colspan="5"><strong><chron>30 June 2019</chron></strong></td> <td>&#160;</td> <td colspan="5"><chron>31 December 2018</chron></td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>At fair </strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>At fair</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>value</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>value</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>through</strong></td> <td>&#160;</td> <td><strong>At </strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>through</td> <td>&#160;</td> <td>At</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>profit or </strong></td> <td>&#160;</td> <td><strong>amortised</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>profit or</td> <td>&#160;</td> <td>amortised</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>loss</strong></td> <td>&#160;</td> <td><strong>cost</strong></td> <td>&#160;</td> <td><strong>Total</strong></td> <td>&#160;</td> <td>loss</td> <td>&#160;</td> <td>cost</td> <td>&#160;</td> <td>Total</td> </tr><tr><td>&#160;</td> <td>&#160;&#160;&#160;</td> <td><strong>&#163;m</strong></td> <td>&#160;&#160;&#160;</td> <td><strong>&#163;m</strong></td> <td>&#160;&#160;&#160;</td> <td><strong>&#163;m</strong></td> <td>&#160;&#160;&#160;</td> <td>&#163;m</td> <td>&#160;&#160;&#160;</td> <td>&#163;m</td> <td>&#160;&#160;&#160;</td> <td>&#163;m</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Medium-term notes issued</td> <td>&#160;</td> <td><strong>7,930</strong></td> <td>&#160;</td> <td><strong>39,404</strong></td> <td>&#160;</td> <td><strong>47,334</strong></td> <td>&#160;</td> <td>&#160;7,032</td> <td>&#160;</td> <td>37,490</td> <td>&#160;</td> <td>44,522</td> </tr><tr><td>Covered bonds</td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>30,479</strong></td> <td>&#160;</td> <td><strong>30,479</strong></td> <td>&#160;</td> <td>&#160;-</td> <td>&#160;</td> <td>28,194</td> <td>&#160;</td> <td>28,194</td> </tr><tr><td>Certificates of deposit</td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>12,167</strong></td> <td>&#160;</td> <td><strong>12,167</strong></td> <td>&#160;</td> <td>&#160;-</td> <td>&#160;</td> <td>12,020</td> <td>&#160;</td> <td>12,020</td> </tr><tr><td>Securitisation notes</td> <td>&#160;</td> <td><strong>52</strong></td> <td>&#160;</td> <td><strong>5,261</strong></td> <td>&#160;</td> <td><strong>5,313</strong></td> <td>&#160;</td> <td>53</td> <td>&#160;</td> <td>5,426</td> <td>&#160;</td> <td>5,479</td> </tr><tr><td>Commercial paper</td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>10,504</strong></td> <td>&#160;</td> <td><strong>10,504</strong></td> <td>&#160;</td> <td>&#160;-</td> <td>&#160;</td> <td>8,038</td> <td>&#160;</td> <td>8,038</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>7,982</strong></td> <td>&#160;</td> <td><strong>97,815</strong></td> <td>&#160;</td> <td><strong>105,797</strong></td> <td>&#160;</td> <td>&#160;7,085</td> <td>&#160;</td> <td>91,168</td> <td>&#160;</td> <td>98,253</td> </tr></table> &#160;<br/> The notes issued by the Group&apos;s securitisation and covered bond programmes are held by external parties and by subsidiaries of the Group.<br/> &#160;<br/><em>Securitisation programmes</em><br/> At <chron>30&#160;June 2019</chron>, external parties held <money>&#163;5,313&#160;million</money> (<chron>31&#160;December 2018</chron>: <money>&#163;5,479&#160;million</money>) and the Group&apos;s subsidiaries held <money>&#163;30,139&#160;million</money> (<chron>31&#160;December 2018</chron>: <money>&#163;31,701&#160;million</money>) of total securitisation notes in issue of <money>&#163;35,452&#160;million</money> (<chron>31&#160;December 2018</chron>: <money>&#163;37,180&#160;million</money>). The notes are secured on loans and advances to customers and debt securities held at amortised cost amounting to <money>&#163;38,604&#160;million</money> (<chron>31&#160;December 2018</chron>: <money>&#163;41,674&#160;million</money>), the majority of which have been sold by subsidiary companies to bankruptcy remote structured entities. The structured entities are consolidated fully and all of these loans are retained on the Group&apos;s balance sheet.<br/> &#160;<br/><em>Covered bond programmes</em><br/> At <chron>30&#160;June 2019</chron>, external parties held <money>&#163;30,479&#160;million</money> (<chron>31&#160;December 2018</chron>: <money>&#163;28,194&#160;million</money>) and the Group&apos;s subsidiaries held <money>&#163;700&#160;million</money> (<chron>31&#160;December 2018</chron>: <money>&#163;700&#160;million</money>) of total covered bonds in issue of <money>&#163;31,179&#160;million</money> (<chron>31&#160;December 2018</chron>: <money>&#163;28,894&#160;million</money>). The bonds are secured on certain loans and advances to customers amounting to <money>&#163;41,049&#160;million</money> (<chron>31&#160;December 2018</chron>: <money>&#163;36,802 million</money>) that have been assigned to bankruptcy remote limited liability partnerships. These loans are retained on the Group&apos;s balance sheet.<br/> &#160;<br/> Cash deposits of <money>&#163;4,049&#160;million</money> (<chron>31&#160;December 2018</chron>: <money>&#163;4,102&#160;million</money>) which support the debt securities issued by the structured entities, the term advances related to covered bonds and other legal obligations are held by the Group.<br/><br/> &#160;<br/><strong>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS </strong>(continued)<br/> &#160;<br/><strong>13.&#160;&#160;&#160;&#160;&#160;&#160; Post-retirement defined benefit schemes<a/></strong><br/> &#160;<br/> The Group&apos;s post-retirement defined benefit scheme obligations are comprised as follows:<br/> &#160; <table border="1"><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>At 30 June</strong></td> <td>&#160;</td> <td>At 31 Dec</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>2019</strong></td> <td>&#160;</td> <td>2018</td> </tr><tr><td>&#160;</td> <td>&#160;&#160;&#160;&#160;</td> <td><strong>&#163;m</strong></td> <td>&#160;&#160;&#160;&#160;</td> <td>&#163;m</td> </tr><tr><td>Defined benefit pension schemes:</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Fair value of scheme assets</td> <td>&#160;</td> <td><strong>45,763</strong></td> <td>&#160;</td> <td>42,238</td> </tr><tr><td>Present value of funded obligations</td> <td>&#160;</td> <td><strong>(44,375)</strong></td> <td>&#160;</td> <td>(41,092)</td> </tr><tr><td>Net pension scheme asset</td> <td>&#160;</td> <td><strong>1,388</strong></td> <td>&#160;</td> <td>1,146</td> </tr><tr><td>Other post-retirement schemes</td> <td>&#160;</td> <td><strong>(129)</strong></td> <td>&#160;</td> <td>(124)</td> </tr><tr><td><strong>Net retirement benefit asset</strong></td> <td>&#160;</td> <td><strong>1,259</strong></td> <td>&#160;</td> <td>1,022</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Recognised on the balance sheet as:</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Retirement benefit assets</td> <td>&#160;</td> <td><strong>1,509</strong></td> <td>&#160;</td> <td>1,267</td> </tr><tr><td>Retirement benefit obligations</td> <td>&#160;</td> <td><strong>(250)</strong></td> <td>&#160;</td> <td>(245)</td> </tr><tr><td><strong>Net retirement benefit asset</strong></td> <td>&#160;</td> <td><strong>1,259</strong></td> <td>&#160;</td> <td>1,022</td> </tr></table> &#160;<br/> The movement in the Group&apos;s net post-retirement defined benefit scheme asset during the period was as follows:<br/> &#160; <table border="1"><tr><td colspan="2">&#160;</td> <td colspan="2">&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td colspan="2">&#160;&#160;&#160;</td> <td colspan="2"><strong>&#163;m</strong></td> </tr><tr><td>&#160;</td> <td colspan="2">&#160;</td> <td colspan="2">&#160;</td> </tr><tr><td>Asset at <chron>1 January 2019</chron></td> <td colspan="2">&#160;</td> <td colspan="2"><strong>1,022</strong></td> </tr><tr><td>Exchange and other adjustments</td> <td colspan="2">&#160;</td> <td colspan="2"><strong>11</strong></td> </tr><tr><td>Income statement charge</td> <td colspan="2">&#160;</td> <td colspan="2"><strong>(139)</strong></td> </tr><tr><td>Employer contributions</td> <td colspan="2">&#160;</td> <td colspan="2"><strong>538</strong></td> </tr><tr><td>Remeasurement</td> <td colspan="2">&#160;</td> <td colspan="2"><strong>(173)</strong></td> </tr><tr><td><strong>Asset at <chron>30 June 2019</chron></strong></td> <td colspan="2">&#160;</td> <td colspan="2"><strong>1,259</strong></td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr></table> &#160;<br/> The charge to the income statement in respect of pensions and other post-retirement benefit schemes is comprised as follows:<br/> &#160; <table border="1"><tr><td>9</td> <td>&#160;</td> <td colspan="2">&#160;</td> <td colspan="2">&#160;</td> <td colspan="2">&#160;</td> <td colspan="2">&#160;</td> <td colspan="2">&#160;</td> </tr><tr><td colspan="2">&#160;</td> <td>&#160;</td> <td colspan="2"><strong>Half-year to</strong></td> <td colspan="2">&#160;</td> <td colspan="2">Half-year to</td> <td colspan="2">&#160;</td> <td>Half-year to</td> </tr><tr><td colspan="2">&#160;</td> <td>&#160;</td> <td colspan="2"><strong>30 June</strong></td> <td colspan="2">&#160;</td> <td colspan="2">30 June</td> <td colspan="2">&#160;</td> <td>31 Dec</td> </tr><tr><td colspan="2">&#160;</td> <td>&#160;</td> <td colspan="2"><strong>2019</strong></td> <td colspan="2">&#160;&#160;&#160;&#160;</td> <td colspan="2">2018</td> <td colspan="2">&#160;</td> <td>2018</td> </tr><tr><td colspan="2">&#160;</td> <td>&#160;</td> <td colspan="2"><strong>&#163;m</strong></td> <td colspan="2">&#160;</td> <td colspan="2">&#163;m</td> <td colspan="2">&#160;</td> <td>&#163;m</td> </tr><tr><td colspan="2">&#160;</td> <td>&#160;</td> <td colspan="2">&#160;</td> <td colspan="2">&#160;</td> <td colspan="2">&#160;</td> <td colspan="2">&#160;</td> <td>&#160;</td> </tr><tr><td colspan="2">Defined benefit pension schemes</td> <td>&#160;</td> <td colspan="2"><strong>139</strong></td> <td colspan="2">&#160;</td> <td colspan="2">271</td> <td colspan="2">&#160;</td> <td>134</td> </tr><tr><td colspan="2">Defined contribution schemes</td> <td>&#160;</td> <td colspan="2"><strong>141</strong></td> <td colspan="2">&#160;</td> <td colspan="2">134</td> <td colspan="2">&#160;</td> <td>166</td> </tr><tr><td colspan="2"><strong>Total charge to the income statement (note 4)</strong></td> <td>&#160;</td> <td colspan="2"><strong>280</strong></td> <td colspan="2">&#160;</td> <td colspan="2">405</td> <td colspan="2">&#160;</td> <td>300</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr></table> &#160;<br/> The principal assumptions used in the valuations of the defined benefit pension schemes were as follows:<br/> &#160; <table border="1"><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>At 30 June</strong></td> <td>&#160;</td> <td>At 31 Dec</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>2019</strong></td> <td>&#160;</td> <td>2018</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>%</strong></td> <td>&#160;</td> <td>%</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Discount rate</td> <td>&#160;</td> <td><strong>2.33</strong></td> <td>&#160;</td> <td>2.90</td> </tr><tr><td>Rate of inflation:</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Retail Prices Index</td> <td>&#160;</td> <td><strong>3.19</strong></td> <td>&#160;</td> <td>3.20</td> </tr><tr><td>Consumer Price Index</td> <td>&#160;</td> <td><strong>2.14</strong></td> <td>&#160;</td> <td>2.15</td> </tr><tr><td>Rate of salary increases</td> <td>&#160;</td> <td><strong>0.00</strong></td> <td>&#160;</td> <td>0.00</td> </tr><tr><td>Weighted-average rate of increase for pensions in payment</td> <td>&#160;</td> <td><strong>2.73</strong></td> <td>&#160;</td> <td>2.73</td> </tr></table><br/> &#160;<br/><strong>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS </strong>(continued)<br/> &#160;<br/><strong>14.&#160;&#160;&#160;&#160;&#160;&#160; Subordinated liabilities</strong><br/> &#160;<br/> The Group&apos;s subordinated liabilities are comprised as follows:<br/> &#160; <table border="1"><tr><td>9</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>At 30 June</strong></td> <td>&#160;</td> <td>At 31 Dec</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>2019</strong></td> <td>&#160;</td> <td>2018</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>&#163;m</strong></td> <td>&#160;</td> <td>&#163;m</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Preference shares</td> <td>&#160;</td> <td><strong>919</strong></td> <td>&#160;</td> <td>803</td> </tr><tr><td>Preferred securities</td> <td>&#160;</td> <td><strong>3,314</strong></td> <td>&#160;</td> <td>3,205</td> </tr><tr><td>Undated subordinated liabilities</td> <td>&#160;</td> <td><strong>587</strong></td> <td>&#160;</td> <td>588</td> </tr><tr><td>Dated subordinated liabilities</td> <td>&#160;</td> <td><strong>12,989</strong></td> <td>&#160;</td> <td>13,060</td> </tr><tr><td><strong>Total subordinated liabilities</strong></td> <td>&#160;</td> <td><strong>17,809</strong></td> <td>&#160;</td> <td>17,656</td> </tr></table> &#160;<br/><strong>15.&#160;&#160;&#160;&#160;&#160;&#160; Share capital</strong>&#160;<br/> &#160;<br/> Movements in share capital during the period were as follows:<br/> &#160; <table border="1"><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>Number</strong></td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>of&#160; shares</strong></td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>(million)</strong></td> <td>&#160;</td> <td><strong>&#163;m</strong></td> </tr><tr><td><strong>Ordinary shares of 10p each</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>At <chron>1&#160;January 2019</chron></td> <td>&#160;</td> <td><strong>71,164</strong></td> <td>&#160;</td> <td><strong>7,116</strong></td> </tr><tr><td>Issued in the period<sup>1</sup></td> <td>&#160;</td> <td><strong>725</strong></td> <td>&#160;</td> <td><strong>73</strong></td> </tr><tr><td>Share buybacks</td> <td>&#160;</td> <td><strong>(1,125)</strong></td> <td>&#160;</td> <td><strong>(113)</strong></td> </tr><tr><td><strong>At period end</strong></td> <td>&#160;</td> <td><strong>70,764</strong></td> <td>&#160;</td> <td><strong>7,076</strong></td> </tr></table> &#160; <table border="0"><tr><td><sup>1</sup></td> <td>The ordinary shares issued in the period were in respect of employee share schemes.</td> </tr></table> &#160;<br/> On <chron>20 February 2019</chron> the Group announced the launch of a share buyback programme to repurchase up to <money>&#163;1.75&#160;billion</money> of its outstanding ordinary shares; the programme commenced on <chron>1 March 2019</chron>. The Group entered into an agreement with <org>Morgan Stanley &amp; Co.</org> <org>International plc</org> and <org>UBS AG</org>, London Branch (the joint brokers) to conduct the share buyback programme on its behalf and to make trading decisions under the programme independently of the Group. The joint brokers are purchasing the Group&apos;s ordinary shares as principal and selling them to the Group in accordance with the terms of their engagement. The Group cancels the shares that it purchases through the programme. By <chron>30&#160;June 2019</chron>, the Group had bought back and cancelled 1,125 million shares under the programme, for a total cost of <money>&#163;694&#160;million</money>.<br/> &#160;<br/><br/> &#160;<br/><strong>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS </strong>(continued)<br/> &#160;<br/><strong>16.&#160;&#160;&#160;&#160;&#160;&#160; Other equity instruments</strong><br/> &#160; <table border="1"><tr><td>&#160;</td> <td colspan="2">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> </tr><tr><td colspan="2">&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td><strong>&#163;m&#160;</strong></td> <td>&#160;</td> </tr><tr><td colspan="2">&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td colspan="2">At <chron>1 January 2019</chron></td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td><strong>6,491&#160;</strong></td> <td>&#160;</td> </tr><tr><td colspan="2">Redemption of Additional Tier 1 securities</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td><strong>(1,481)</strong></td> <td>&#160;</td> </tr><tr><td colspan="2">Additional Tier 1 securities issued in the period:</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td colspan="2">US dollar notes (<money>$500 million</money> nominal)</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td><strong>396&#160;</strong></td> <td>&#160;</td> </tr><tr><td colspan="2">At <chron>30 June 2019</chron></td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td><strong>5,406&#160;</strong></td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr></table> &#160;<br/> On <chron>27 June 2019</chron> the Group redeemed, at par, <money>&#163;1,481 million</money> of Additional Tier 1 securities at their first call date.<br/> &#160;<br/> During the half-year to <chron>30 June 2019</chron> the Group issued <money>&#163;396 million</money> (<money>US$500 million</money>) of Additional Tier 1 (AT1) securities; issue costs of <money>&#163;1 million</money>, net of tax, have been charged to retained profits.<br/> &#160;<br/> The AT1 securities are <org>Fixed Rate Resetting Perpetual Subordinated Contingent Convertible Securities</org> with no fixed maturity or redemption date.<br/> &#160;<br/> The principal terms of the AT1 securities are described below:<br/> &#160; <ul><li>The securities rank behind the claims against <org>Lloyds Banking Group plc</org> of (a) unsubordinated creditors, (b) claims which are, or are expressed to be, subordinated to the claims of unsubordinated creditors of <org>Lloyds Banking Group plc</org> but not further or otherwise or (c) whose claims are, or are expressed to be, junior to the claims of other creditors of <org>Lloyds Banking Group</org>, whether subordinated or unsubordinated, other than those whose claims rank, or are expressed to rank, pari passu with, or junior to, the claims of the holders of the <org>AT1 Securities</org> in a winding-up occurring prior to a conversion event being triggered.</li> <li>The securities bear a fixed rate of interest until the first call date. After the initial call date, in the event that they are not redeemed, the AT1 securities will bear interest at rates fixed periodically in advance for five year periods based on market rates.</li> <li>Interest on the securities will be due and payable only at the sole discretion of <org>Lloyds Banking Group plc</org>, and <org>Lloyds Banking Group plc</org> may at any time elect to cancel any Interest Payment (or any part thereof) which would otherwise be payable on any Interest Payment Date. There are also certain restrictions on the payment of interest as specified in the terms.</li> <li>The securities are undated and are repayable, at the option of <org>Lloyds Banking Group plc</org>, in whole at the first call date, or on any fifth anniversary after the first call date. In addition, the AT1 securities are repayable, at the option of <org>Lloyds Banking Group plc</org>, in whole for certain regulatory or tax reasons. Any repayments require the prior consent of the PRA.</li> <li>The securities convert into ordinary shares of <org>Lloyds Banking Group plc</org>, at a pre-determined price, should the fully loaded Common Equity Tier 1 ratio of the Group fall below 7.0 per cent.</li> </ul><br/> &#160;<br/><strong>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS </strong>(continued)<br/> &#160;<br/><strong>17.&#160;&#160;&#160;&#160;&#160;&#160; Provisions for liabilities and charges</strong><a/><br/> &#160; <table border="1"><tr><td>&#160;</td> <td colspan="2">&#160;</td> <td>&#160;</td> <td colspan="2">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td colspan="2">&#160;</td> <td>&#160;</td> <td colspan="3">Provisions</td> <td>&#160;</td> <td colspan="3">Payment</td> <td>&#160;</td> <td 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</tr><tr><td>&#160;</td> <td>&#160;</td> <td colspan="2">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> <td>&#160;</td> <td colspan="3">&#160;</td> </tr><tr><td>Balance at <chron>31 December 2018</chron></td> <td>&#160;</td> <td colspan="2">&#160;</td> <td>&#160;</td> <td colspan="3">193</td> <td>&#160;</td> <td colspan="3">1,524</td> <td>&#160;</td> <td colspan="3">861</td> <td>&#160;</td> <td colspan="3">969</td> <td>&#160;</td> <td colspan="3">3,547</td> </tr><tr><td colspan="4">Adjustment on implementation of IFRS 16</td> <td>&#160;</td> <td colspan="3"><strong>-</strong></td> <td>&#160;</td> <td colspan="3"><strong>-</strong></td> <td>&#160;</td> <td colspan="3"><strong>-</strong></td> <td>&#160;</td> <td colspan="3"><strong>(97)</strong></td> <td>&#160;</td> <td colspan="3"><strong>(97)</strong></td> </tr><tr><td>Exchange and other adjustments</td> <td>&#160;</td> <td colspan="2">&#160;</td> <td>&#160;</td> <td colspan="3"><strong>(1)</strong></td> <td>&#160;</td> <td colspan="3"><strong>32</strong></td> <td>&#160;</td> <td colspan="3"><strong>-</strong></td> <td>&#160;</td> <td colspan="3"><strong>1</strong></td> <td>&#160;</td> <td colspan="3"><strong>32</strong></td> </tr><tr><td>Provisions applied</td> <td>&#160;</td> <td colspan="2">&#160;</td> <td>&#160;</td> <td colspan="3"><strong>-</strong></td> <td>&#160;</td> <td colspan="3"><strong>(992)</strong></td> <td>&#160;</td> <td colspan="3"><strong>(412)</strong></td> <td>&#160;</td> <td colspan="3"><strong>(204)</strong></td> <td>&#160;</td> <td colspan="3"><strong>(1,608)</strong></td> </tr><tr><td>Charge for the period</td> <td>&#160;</td> <td colspan="2">&#160;</td> <td>&#160;</td> <td colspan="3"><strong>(19)</strong></td> <td>&#160;</td> <td colspan="3"><strong>650</strong></td> <td>&#160;</td> <td colspan="3"><strong>143</strong></td> <td>&#160;</td> <td colspan="3"><strong>210</strong></td> <td>&#160;</td> <td colspan="3"><strong>984</strong></td> </tr><tr><td><strong>At <chron>30 June 2019</chron></strong></td> <td>&#160;</td> <td colspan="2">&#160;</td> <td>&#160;</td> <td colspan="3"><strong>173</strong></td> <td>&#160;</td> <td colspan="3"><strong>1,214</strong></td> <td>&#160;</td> <td colspan="3"><strong>592</strong></td> <td>&#160;</td> <td colspan="3"><strong>879</strong></td> <td>&#160;</td> <td colspan="3"><strong>2,858</strong></td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr></table> &#160;<br/><strong>Payment protection insurance (excluding MBNA)</strong><br/> The Group increased the provision for PPI costs by a further <money>&#163;650 million</money> in the half-year to <chron>30 June 2019</chron>, of which <money>&#163;550&#160;million</money> was in the second quarter, bringing the total amount provided to <money>&#163;20,075 million</money>.<br/> &#160;<br/> The charge in the second quarter is largely driven by the significant increase in PPI information requests (PIRs) which is likely to lead to higher total complaints and associated administration costs. The Group has historically received around 70,000 PIRs per week, of which around 9,000 converted into a complaint. Through the second quarter, the number of PIRs received increased to around 150,000 per week and in recent weeks around 190,000 per week and the Group has assumed that PIRs remain at this elevated level until the industry deadline at the end of <chron>August 2019</chron>. At the same time, the quality of PIRs has deteriorated and the Group expects this to continue. While PIR and complaint volumes remain uncertain, the impact of these additional volumes is expected to generate around 200,000&#160;extra complaints, increasing the total expected complaint volumes from 5.6 million to 5.8 million.<br/> &#160;<br/> At <chron>30 June 2019</chron>, a provision of <money>&#163;1,083 million</money> remained unutilised relating to complaints and associated administration costs. Total cash payments were <money>&#163;896 million</money> during the six months to <chron>30 June 2019</chron>.<br/> &#160;<br/><em>Sensitivities</em><br/> The Group estimates that it has sold approximately 16 million PPI policies since 2000. These include policies that were not mis-sold and those that have been successfully claimed upon. Since the commencement of the PPI redress programme in 2011 the Group estimates that it has contacted, settled or provided for approximately 54 per cent of the policies sold since 2000.<br/> &#160;<br/> The total amount provided for PPI represents the Group&apos;s best estimate of the likely future cost. A number of risks and uncertainties remain including with respect to future complaint volumes, however the potential impact of these risks has reduced due to the proximity of the industry deadline. The cost could differ from the Group&apos;s estimates and the assumptions underpinning them, and could result in a further provision being required. These may also be impacted by any further regulatory changes, the final stage of the <org>Financial Conduct Authority</org> (FCA) media campaign and <org>Claims Management Company</org> and customer activity, and potential additional remediation arising from the continuous improvement of the Group&apos;s operational practices.<br/> &#160;<br/> <org>Deloitte LLP</org> has been appointed to assist the Official Receiver with the submission of PPI queries to providers to establish whether any mis-sold PPI redress is due to creditors of bankrupts&apos; estates. The Group has not made any provision in relation to this matter, which will remain under review.<br/> &#160;<br/> For every additional 1,000 reactive complaints per week from <chron>July 2019</chron> through to the industry deadline of the end of <chron>August 2019</chron>, the Group would expect an additional charge of approximately <money>&#163;20 million</money>.<br/><br/><strong>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS </strong>(continued)<br/> &#160;<br/><strong>17.&#160;&#160;&#160;&#160;&#160;&#160; Provisions for liabilities and charges </strong>(continued)<br/> &#160;<br/><strong>Payment protection insurance (MBNA)</strong><br/> As announced in <chron>December 2016</chron>, the Group&apos;s exposure is capped at <money>&#163;240 million</money>, which is already provided for, through an indemnity received from <org>Bank of America</org>. MBNA increased its PPI provision by <money>&#163;32 million</money> in the half-year to <chron>30&#160;June 2019</chron> but the Group&apos;s exposure continues to remain capped at <money>&#163;240 million</money> under the arrangement with <org>Bank of America</org>, notwithstanding this increase by MBNA.<br/> &#160;<br/><strong><em>Other provisions for legal actions and regulatory matters</em></strong><br/> In the course of its business, the Group is engaged in discussions with the PRA, FCA and other UK and overseas regulators and other governmental authorities on a range of matters. The Group also receives complaints in connection with its past conduct and claims brought by or on behalf of current and former employees, customers, investors and other third parties and is subject to legal proceedings and other legal actions. Where significant, provisions are held against the costs expected to be incurred in relation to these matters and matters arising from related internal reviews. During the six months to <chron>30 June 2019</chron> the Group charged a further <money>&#163;143 million</money> in respect of legal actions and other regulatory matters, and the unutilised balance at <chron>30 June 2019</chron> was <money>&#163;592&#160;million</money> (<chron>31 December 2018</chron>: <money>&#163;861 million</money>). The most significant items are as follows.<br/> &#160;<br/><em>Arrears handling related activities</em><br/> The Group has provided an additional <money>&#163;55 million</money> in the half-year to <chron>30 June 2019</chron> for the costs of identifying and rectifying certain arrears management fees and activities, taking the total provided to date to <money>&#163;848 million</money>. The Group has put in place a number of actions to improve its handling of customers in these areas and has made good progress in reimbursing arrears fees to impacted customers.<br/> &#160;<br/><em>Packaged bank accounts</em><br/> The Group had provided a total of <money>&#163;795 million</money> up to <chron>31 December 2018</chron> in respect of complaints relating to alleged mis-selling of packaged bank accounts, with no further amounts provided during the six months to <chron>30 June 2019</chron>. A number of risks and uncertainties remain particularly with respect to future volumes.<br/> &#160;<br/><em>Customer claims in relation to insurance branch business in Germany</em><br/> The Group continues to receive claims in Germany from customers relating to policies issued by <org>Clerical Medical Investment Group Limited</org> (subsequently renamed <org>Scottish Widows Limited</org>), with smaller numbers received from customers in Austria and Italy. The industry-wide issue regarding notification of contractual &apos;cooling off&apos; periods continued to lead to an increasing number of claims in 2016 and 2017 levelling out in 2018 and into 2019. Up to <chron>31 December 2018</chron> the Group had provided a total of <money>&#163;639 million</money>, with no further amounts provided in 2019. The validity of the claims facing the Group depends upon the facts and circumstances in respect of each claim. As a result the ultimate financial effect, which could be significantly different from the current provision, will be known only once all relevant claims have been resolved.<br/> &#160;<br/><em>HBOS Reading - customer review</em><br/> The Group has now completed its compensation assessment for all 71 business customers within the customer review, with more than 98 per cent of these offers to individuals accepted. In total, more than <money>&#163;98 million</money> has been offered of which <money>&#163;84 million</money> has so far been accepted, in addition to <money>&#163;9 million</money> for ex-gratia payments and <money>&#163;6 million</money> for the re-imbursements of legal fees.<br/> &#160;<br/> The review follows the conclusion of a criminal trial in which a number of individuals, including two former HBOS employees, were convicted of conspiracy to corrupt, fraudulent trading and associated money laundering offences which occurred prior to the acquisition of HBOS by the Group in 2009. The Group provided a further <money>&#163;15 million</money> in the year ended <chron>31 December 2018</chron> for customer settlements, raising the total amount provided to <money>&#163;115 million</money> and is now nearing the end of the process of paying compensation to the victims of the fraud, including ex-gratia payments and re-imbursements of legal fees.<br/><br/> &#160;<br/><strong>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS </strong>(continued)<br/> &#160;<br/><strong>18.&#160;&#160;&#160;&#160;&#160;&#160; Contingent liabilities and commitments<a/></strong><br/> &#160;<br/><strong><em>Interchange fees </em></strong><br/> With respect to multi-lateral interchange fees (MIFs), the Group is not directly involved in the ongoing litigation (as described below) which involve card schemes such as Visa and Mastercard. However, the Group is a member / licensee of Visa and Mastercard and other card schemes: <ul><li>Litigation brought by retailers continues in the English Courts against both Visa and Mastercard</li> <li>Litigation brought on behalf of UK consumers is also proceeding in the English Courts against Mastercard</li> <li>Any ultimate impact on the Group of the litigation against Visa and Mastercard remains uncertain at this time</li> </ul> &#160;<br/> <org>Visa Inc</org> completed its acquisition of Visa Europe on <chron>21 June 2016</chron>. As part of this transaction, the Group and certain other UK banks also entered into a Loss Sharing Agreement (LSA) with <org>Visa Inc</org>, which clarifies the allocation of liabilities between the parties should the litigation referred to above result in <org>Visa Inc</org> being liable for damages payable by Visa Europe. The maximum amount of liability to which the Group may be subject under the LSA is capped at the cash consideration which was received by the Group at completion. <org>Visa Inc</org> may also have recourse to a general indemnity, previously in place under Visa Europe&apos;s Operating Regulations, for damages claims concerning inter or intra-regional MIF setting activities.<br/> &#160;<br/><strong><em>LIBOR and other trading rates</em></strong><br/> In <chron>July 2014</chron>, the Group announced that it had reached settlements totalling <money>&#163;217 million</money> (at <chron>30 June 2014</chron> exchange rates) to resolve with UK and US federal authorities legacy issues regarding the manipulation several years ago of Group companies&apos; submissions to the <org>British Bankers&apos; Association</org> (BBA) London Interbank Offered Rate (LIBOR) and Sterling Repo Rate. <org>The Swiss Competition Commission</org> concluded its investigation against Lloyds in <chron>June 2019</chron>. The Group continues to cooperate with various other government and regulatory authorities, including a number of US State Attorneys General, in conjunction with their investigations into submissions made by panel members to the bodies that set LIBOR and various other interbank offered rates.<br/> &#160;<br/> <org>Certain Group</org> companies, together with other panel banks, have also been named as defendants in private lawsuits, including purported class action suits, in the US in connection with their roles as panel banks contributing to the setting of US Dollar, Japanese Yen and Sterling LIBOR and the Australian BBSW Reference Rate. Certain of the plaintiffs&apos; claims, have been dismissed by the US Federal Court for <location>Southern District</location> of New York (subject to appeals).<br/> &#160;<br/> <org>Certain Group</org> companies are also named as defendants in (i) UK based claims; and (ii) two Dutch class actions, raising LIBOR manipulation allegations. A number of the claims against the Group in relation to the alleged mis-sale of interest rate hedging products also include allegations of LIBOR manipulation.<br/> &#160;<br/> It is currently not possible to predict the scope and ultimate outcome on the Group of the various outstanding regulatory investigations not encompassed by the settlements, any private lawsuits or any related challenges to the interpretation or validity of any of the Group&apos;s contractual arrangements, including their timing and scale.<br/> &#160;<br/><strong><em>UK shareholder litigation</em></strong><br/> In <chron>August 2014</chron>, the Group and a number of former directors were named as defendants in a claim by a number of claimants who held shares in <org>Lloyds TSB Group plc</org> (LTSB) prior to the acquisition of <org>HBOS plc</org>, alleging breaches of duties in relation to information provided to shareholders in connection with the acquisition and the recapitalisation of LTSB. The defendants refute all claims made. A trial commenced in the <org>English High Court</org> on <chron>18 October 2017</chron> and concluded on <chron>5 March 2018</chron> with judgment to follow. It is currently not possible to determine the ultimate impact on the Group (if any).<br/> &#160;<br/><br/> &#160;<br/><strong>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS </strong>(continued)<br/> &#160;<br/><strong>18.&#160;&#160;&#160;&#160;&#160;&#160; Contingent liabilities and commitments </strong>(continued)<br/> &#160;<br/><strong><em>Tax authorities</em></strong><br/> The Group has an open matter in relation to a claim for group relief of losses incurred in its former Irish banking subsidiary, which ceased trading on <chron>31 December 2010</chron>. In 2013 HMRC informed the Group that their interpretation of the UK rules which allow the offset of such losses denies the claim. If HMRC&apos;s position is found to be correct management estimate that this would result in an increase in current tax liabilities of approximately <money>&#163;770 million</money> (including interest) and a reduction in the Group&apos;s deferred tax asset of approximately <money>&#163;250 million</money>. The Group does not agree with HMRC&apos;s position and, having taken appropriate advice, does not consider that this is a case where additional tax will ultimately fall due. There are a number of other open matters on which the Group is in discussion with HMRC (including the tax treatment of certain costs arising from the divestment of <org>TSB Banking Group plc</org>), none of which is expected to have a material impact on the financial position of the Group.<br/> &#160;<br/><strong><em>Mortgage arrears handling activities</em></strong><br/> On <chron>26 May 2016</chron>, the Group was informed that an enforcement team at the FCA had commenced an investigation in connection with the Group&apos;s mortgage arrears handling activities. This investigation is ongoing and the Group continues to cooperate with the FCA. It is not currently possible to make a reliable assessment of any liability that may result from the investigation including any financial penalty or public censure.<br/> &#160;<br/><strong><em>HBOS Reading - FCA investigation </em></strong><br/> The FCA&apos;s investigation into the events surrounding the discovery of misconduct within the Reading-based Impaired Assets team of HBOS has concluded. The FCA issued a final notice on <chron>21 June 2019</chron> announcing that the Group had agreed to settle the matter and pay a fine of <money>&#163;45.5 million</money>.<br/> &#160;<br/><strong><em>Other legal actions and regulatory matters</em></strong><br/> In addition, during the ordinary course of business the Group is subject to other complaints and threatened or actual legal proceedings (including class or group action claims) brought by or on behalf of current or former employees, customers, investors or other third parties, as well as legal and regulatory reviews, challenges, investigations and enforcement actions, both in the UK and overseas. All such material matters are periodically reassessed, with the assistance of external professional advisers where appropriate, to determine the likelihood of the Group incurring a liability. In those instances where it is concluded that it is more likely than not that a payment will be made, a provision is established to management&apos;s best estimate of the amount required at the relevant balance sheet date. In some cases it will not be possible to form a view, for example because the facts are unclear or because further time is needed properly to assess the merits of the case, and no provisions are held in relation to such matters. In these circumstances, specific disclosure in relation to a contingent liability will be made where material. However the Group does not currently expect the final outcome of any such case to have a material adverse effect on its financial position, operations or cash flows.<br/> &#160;<br/><br/> &#160;<br/><strong>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS </strong>(continued)<br/> &#160;<br/><strong>18.&#160;&#160;&#160;&#160;&#160;&#160; Contingent liabilities and commitments</strong> (continued)<br/> &#160;<br/><strong>Contingent liabilities and commitments arising from the banking business</strong> <table border="1"><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>At&#160;30 June</strong></td> <td>&#160;</td> <td>At&#160;31&#160;Dec</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>2019</strong></td> <td>&#160;</td> <td>2018</td> </tr><tr><td>&#160;</td> <td>&#160;&#160;&#160;&#160;</td> <td><strong>&#163;m</strong></td> <td>&#160;</td> <td>&#163;m</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td><strong>Contingent liabilities</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Acceptances and endorsements</td> <td>&#160;</td> <td><strong>74</strong></td> <td>&#160;</td> <td>194</td> </tr><tr><td>Other:</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Other items serving as direct credit substitutes</td> <td>&#160;</td> <td><strong>1,042</strong></td> <td>&#160;</td> <td>632</td> </tr><tr><td>Performance bonds and other transaction-related contingencies</td> <td>&#160;</td> <td><strong>2,462</strong></td> <td>&#160;</td> <td>2,425</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>3,504</strong></td> <td>&#160;</td> <td>3,057</td> </tr><tr><td><strong>Total contingent liabilities</strong></td> <td>&#160;</td> <td><strong>3,578</strong></td> <td>&#160;</td> <td>3,251</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td><strong>Commitments and guarantees</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Documentary credits and other short-term trade-related transactions</td> <td>&#160;</td> <td><strong>1</strong></td> <td>&#160;</td> <td>1</td> </tr><tr><td>Forward asset purchases and forward deposits placed</td> <td>&#160;</td> <td><strong>171</strong></td> <td>&#160;</td> <td>731</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Undrawn formal standby facilities, credit lines and other commitments to lend:</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Less than 1 year original maturity:</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Mortgage offers made</td> <td>&#160;</td> <td><strong>15,011</strong></td> <td>&#160;</td> <td>11,594</td> </tr><tr><td>Other commitments and guarantees</td> <td>&#160;</td> <td><strong>84,322</strong></td> <td>&#160;</td> <td>85,060</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>99,333</strong></td> <td>&#160;</td> <td>96,654</td> </tr><tr><td>1 year or over original maturity</td> <td>&#160;</td> <td><strong>37,599</strong></td> <td>&#160;</td> <td>37,712</td> </tr><tr><td><strong>Total commitments and guarantees</strong></td> <td>&#160;</td> <td><strong>137,104</strong></td> <td>&#160;</td> <td>135,098</td> </tr></table> &#160;<br/> Of the amounts shown above in respect of undrawn formal standby facilities, credit lines and other commitments to lend, <money>&#163;67,814 million</money> (<chron>31&#160;December 2018</chron>: <money>&#163;64,884&#160;million</money>) was irrevocable.<br/><br/> &#160;<br/><strong>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS </strong>(continued)<br/> &#160;<br/><strong>19.&#160;&#160;&#160;&#160;&#160;&#160; Fair values of financial assets and liabilities<a/></strong><br/> &#160;<br/> The valuations of financial instruments have been classified into three levels according to the quality and reliability of information used to determine those fair values. Note 49 to the Group&apos;s 2018 financial statements describes the definitions of the three levels in the fair value hierarchy.<br/> &#160;<br/><strong>Valuation control framework</strong><br/> Key elements of the valuation control framework, which covers processes for all levels in the fair value hierarchy including level&#160;3 portfolios, include model validation (incorporating pre-trade and post-trade testing), product implementation review and independent price verification. Formal committees meet quarterly to discuss and approve valuations in more judgemental areas.<br/> &#160;<br/><strong>Transfers into and out of level 3 portfolios</strong><br/> Transfers out of level&#160;3 portfolios arise when inputs that could have a significant impact on the instrument&apos;s valuation become market observable; conversely, transfers into the portfolios arise when sources of data cease to be observable.<br/> &#160;<br/><strong>Valuation methodology</strong><br/> For level 2 and level 3 portfolios, there is no significant change to the valuation methodology (techniques and inputs) disclosed in the Group&apos;s 2018 Annual Report and Accounts applied to these portfolios.<br/> &#160;<br/> The table below summarises the carrying values of financial assets and liabilities presented on the Group&apos;s balance sheet. The fair values presented in the table are at a specific date and may be significantly different from the amounts which will actually be paid or received on the maturity or settlement date.<br/> &#160; <table border="1"><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td colspan="3"><strong><chron>30 June 2019</chron></strong></td> <td>&#160;</td> <td colspan="3"><chron>31 December 2018</chron></td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>Carrying</strong></td> <td>&#160;</td> <td><strong>Fair</strong></td> <td>&#160;</td> <td>Carrying</td> <td>&#160;</td> <td>Fair</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>value</strong></td> <td>&#160;</td> <td><strong>value</strong></td> <td>&#160;</td> <td>value</td> <td>&#160;</td> <td>value</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>&#163;m</strong></td> <td>&#160;</td> <td><strong>&#163;m</strong></td> <td>&#160;</td> <td>&#163;m</td> <td>&#160;</td> <td>&#163;m</td> </tr><tr><td><strong>Financial assets</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Financial assets at fair value through profit or loss</td> <td>&#160;</td> <td><strong>155,108</strong></td> <td>&#160;</td> <td><strong>155,108</strong></td> <td>&#160;</td> <td>158,529</td> <td>&#160;</td> <td>158,529</td> </tr><tr><td>Derivative financial instruments</td> <td>&#160;</td> <td><strong>26,148</strong></td> <td>&#160;</td> <td><strong>26,148</strong></td> <td>&#160;</td> <td>23,595</td> <td>&#160;</td> <td>23,595</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Loans and advances to banks</td> <td>&#160;</td> <td><strong>8,374</strong></td> <td>&#160;</td> <td><strong>8,363</strong></td> <td>&#160;</td> <td>6,283</td> <td>&#160;</td> <td>6,286</td> </tr><tr><td>Loans and advances to customers</td> <td>&#160;</td> <td><strong>495,138</strong></td> <td>&#160;</td> <td><strong>496,768</strong></td> <td>&#160;</td> <td>484,858</td> <td>&#160;</td> <td>484,660</td> </tr><tr><td>Debt securities</td> <td>&#160;</td> <td><strong>5,434</strong></td> <td>&#160;</td> <td><strong>5,427</strong></td> <td>&#160;</td> <td>5,238</td> <td>&#160;</td> <td>5,244</td> </tr><tr><td>Financial assets at amortised cost</td> <td>&#160;</td> <td><strong>508,946</strong></td> <td>&#160;</td> <td><strong>510,558</strong></td> <td>&#160;</td> <td>496,379</td> <td>&#160;</td> <td>496,190</td> </tr><tr><td>Financial assets at fair value through other comprehensive income</td> <td>&#160;</td> <td><strong>27,078</strong></td> <td>&#160;</td> <td><strong>27,078</strong></td> <td>&#160;</td> <td>24,815</td> <td>&#160;</td> <td>24,815</td> </tr><tr><td><strong>Financial liabilities</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Deposits from banks</td> <td>&#160;</td> <td><strong>34,777</strong></td> <td>&#160;</td> <td><strong>34,761</strong></td> <td>&#160;</td> <td>30,320</td> <td>&#160;</td> <td>30,322</td> </tr><tr><td>Customer deposits</td> <td>&#160;</td> <td><strong>421,692</strong></td> <td>&#160;</td> <td><strong>422,277</strong></td> <td>&#160;</td> <td>418,066</td> <td>&#160;</td> <td>418,450</td> </tr><tr><td>Financial liabilities at fair value through profit or loss</td> <td>&#160;</td> <td><strong>24,754</strong></td> <td>&#160;</td> <td><strong>24,754</strong></td> <td>&#160;</td> <td>30,547</td> <td>&#160;</td> <td>30,547</td> </tr><tr><td>Derivative financial instruments</td> <td>&#160;</td> <td><strong>23,026</strong></td> <td>&#160;</td> <td><strong>23,026</strong></td> <td>&#160;</td> <td>21,373</td> <td>&#160;</td> <td>21,373</td> </tr><tr><td>Debt securities in issue</td> <td>&#160;</td> <td><strong>97,815</strong></td> <td>&#160;</td> <td><strong>100,102</strong></td> <td>&#160;</td> <td>91,168</td> <td>&#160;</td> <td>93,233</td> </tr><tr><td>Liabilities arising from non-participating investment contracts</td> <td>&#160;</td> <td><strong>14,706</strong></td> <td>&#160;</td> <td><strong>14,706</strong></td> <td>&#160;</td> <td>13,853</td> <td>&#160;</td> <td>13,853</td> </tr><tr><td>Subordinated liabilities</td> <td>&#160;</td> <td><strong>17,809</strong></td> <td>&#160;</td> <td><strong>20,200</strong></td> <td>&#160;</td> <td>17,656</td> <td>&#160;</td> <td>19,564</td> </tr></table> &#160;<br/> The carrying amount of the following financial instruments is a reasonable approximation of fair value: cash and balances at central banks, items in the course of collection from banks, items in course of transmission to banks and notes in circulation.<br/><br/> &#160;<br/><strong>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS </strong>(continued)<br/> &#160;<br/><strong>19.&#160;&#160;&#160;&#160;&#160;&#160; Fair values of financial assets and liabilities </strong>(continued)<br/> &#160;<br/> The Group manages valuation adjustments for its derivative exposures on a net basis; the Group determines their fair values on the basis of their net exposures. In all other cases, fair values of financial assets and liabilities measured at fair value are determined on the basis of their gross exposures.<br/> &#160;<br/> The following tables provide an analysis of the financial assets and liabilities of the Group that are carried at fair value in the Group&apos;s consolidated balance sheet, grouped into levels 1 to 3 based on the degree to which the fair value is observable.<br/> &#160;<br/><strong>Financial assets</strong> <table border="1"><tr><td>&#160;</td> <td colspan="2">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td colspan="2">&#160;</td> <td><strong>Level 1</strong></td> <td>&#160;</td> <td><strong>Level 2</strong></td> <td>&#160;</td> <td><strong>Level 3</strong></td> <td>&#160;</td> <td><strong>Total</strong></td> </tr><tr><td>&#160;</td> <td colspan="2">&#160;</td> <td><strong>&#163;m</strong></td> <td>&#160;</td> <td><strong>&#163;m</strong></td> <td>&#160;</td> <td><strong>&#163;m</strong></td> <td>&#160;</td> <td><strong>&#163;m</strong></td> </tr><tr><td><strong>At <chron>30 June 2019</chron></strong></td> <td colspan="2">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Financial assets at fair value through profit or loss:</td> <td colspan="2">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Loans and advances to customers</td> <td colspan="2">&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>14,907</strong></td> <td>&#160;</td> <td><strong>11,042</strong></td> <td>&#160;</td> <td><strong>25,949</strong></td> </tr><tr><td>Loans and advances to banks</td> <td colspan="2">&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>3,082</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>3,082</strong></td> </tr><tr><td>Debt securities</td> <td colspan="2">&#160;</td> <td><strong>17,931</strong></td> <td>&#160;</td> <td><strong>21,459</strong></td> <td>&#160;</td> <td><strong>1,778</strong></td> <td>&#160;</td> <td><strong>41,168</strong></td> </tr><tr><td>Equity shares</td> <td colspan="2">&#160;</td> <td><strong>82,833</strong></td> <td>&#160;</td> <td><strong>13</strong></td> <td>&#160;</td> <td><strong>2,043</strong></td> <td>&#160;</td> <td><strong>84,889</strong></td> </tr><tr><td>Treasury and other bills</td> <td colspan="2">&#160;</td> <td><strong>20</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>20</strong></td> </tr><tr><td colspan="2">Total financial assets at fair value through profit or loss</td> <td>&#160;</td> <td><strong>100,784</strong></td> <td>&#160;</td> <td><strong>39,461</strong></td> <td>&#160;</td> <td><strong>14,863</strong></td> 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assets at fair value through other comprehensive income</td> <td colspan="2">&#160;</td> <td><strong>15,799</strong></td> <td>&#160;</td> <td><strong>11,083</strong></td> <td>&#160;</td> <td><strong>196</strong></td> <td>&#160;</td> <td><strong>27,078</strong></td> </tr><tr><td>Derivative financial instruments</td> <td colspan="2">&#160;</td> <td><strong>83</strong></td> <td>&#160;</td> <td><strong>24,881</strong></td> <td>&#160;</td> <td><strong>1,184</strong></td> <td>&#160;</td> <td><strong>26,148</strong></td> </tr><tr><td><strong>Total financial assets carried at fair value</strong></td> <td colspan="2">&#160;</td> <td><strong>116,666</strong></td> <td>&#160;</td> <td><strong>75,425</strong></td> <td>&#160;</td> <td><strong>16,243</strong></td> <td>&#160;</td> <td><strong>208,334</strong></td> </tr><tr><td>&#160;</td> <td colspan="2">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>At <chron>31 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colspan="2">&#160;</td> <td>&#160;75,701</td> <td>&#160;</td> <td>&#160;26</td> <td>&#160;</td> <td>&#160;1,758</td> <td>&#160;</td> <td>&#160;77,485</td> </tr><tr><td>Treasury and other bills</td> <td colspan="2">&#160;</td> <td>&#160;20</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>&#160;20</td> </tr><tr><td>Total financial assets at fair value through profit or loss</td> <td colspan="2">&#160;</td> <td>&#160;93,731</td> <td>&#160;</td> <td>&#160;50,881</td> <td>&#160;</td> <td>&#160;13,917</td> <td>&#160;</td> <td>&#160;158,529</td> </tr><tr><td>Financial assets at fair value through other comprehensive income:</td> <td colspan="2">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Debt securities</td> <td colspan="2">&#160;</td> <td>&#160;18,879</td> <td>&#160;</td> <td>&#160;5,366</td> <td>&#160;</td> <td>246</td> <td>&#160;</td> <td>&#160;24,491</td> </tr><tr><td>Treasury and other bills</td> <td colspan="2">&#160;</td> <td>303</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>303</td> </tr><tr><td>Equity shares</td> <td colspan="2">&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>21</td> <td>&#160;</td> <td>&#160;21</td> </tr><tr><td>Total financial assets at fair value through other comprehensive income</td> <td colspan="2">&#160;</td> <td>&#160;19,182</td> <td>&#160;</td> <td>&#160;5,366</td> <td>&#160;</td> <td>267</td> <td>&#160;</td> <td>&#160;24,815</td> </tr><tr><td>Derivative financial instruments</td> <td colspan="2">&#160;</td> <td>&#160;93</td> <td>&#160;</td> <td>&#160;22,575</td> <td>&#160;</td> <td>&#160;927</td> <td>&#160;</td> <td>&#160;23,595</td> </tr><tr><td>Total financial assets carried at fair value</td> <td colspan="2">&#160;</td> <td>113,006</td> <td>&#160;</td> <td>78,822</td> <td>&#160;</td> <td>15,111</td> <td>&#160;</td> <td>206,939</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr></table> &#160;<br/><br/> &#160;<br/><strong>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS </strong>(continued)<br/> &#160;<br/><strong>19.&#160;&#160;&#160;&#160;&#160;&#160; Fair values of financial assets and liabilities</strong> (continued)<br/> &#160;<br/><strong>Financial liabilities</strong> <table border="1"><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>Level 1</strong></td> <td>&#160;</td> <td><strong>Level 2</strong></td> <td>&#160;</td> <td><strong>Level 3</strong></td> <td>&#160;</td> <td><strong>Total</strong></td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>&#163;m</strong></td> <td>&#160;</td> <td><strong>&#163;m</strong></td> <td>&#160;</td> <td><strong>&#163;m</strong></td> <td>&#160;</td> <td><strong>&#163;m</strong></td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td><strong>At <chron>30 June 2019</chron></strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Financial liabilities at fair value through profit or loss:</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Liabilities held at fair value through profit or loss</td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>7,930</strong></td> <td>&#160;</td> <td><strong>52</strong></td> <td>&#160;</td> <td><strong>7,982</strong></td> </tr><tr><td>Trading liabilities</td> <td>&#160;</td> <td><strong>2,672</strong></td> <td>&#160;</td> <td><strong>14,100</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>16,772</strong></td> </tr><tr><td>Total financial liabilities at fair value through profit or loss</td> <td>&#160;</td> <td><strong>2,672</strong></td> <td>&#160;</td> <td><strong>22,030</strong></td> <td>&#160;</td> <td><strong>52</strong></td> <td>&#160;</td> <td><strong>24,754</strong></td> </tr><tr><td>Derivative financial instruments</td> <td>&#160;</td> <td><strong>274</strong></td> <td>&#160;</td> <td><strong>21,479</strong></td> <td>&#160;</td> <td><strong>1,273</strong></td> <td>&#160;</td> <td><strong>23,026</strong></td> </tr><tr><td><strong>Total financial liabilities carried at fair value</strong></td> <td>&#160;</td> <td><strong>2,946</strong></td> <td>&#160;</td> <td><strong>43,509</strong></td> <td>&#160;</td> <td><strong>1,325</strong></td> <td>&#160;</td> <td><strong>47,780</strong></td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>At 31 December 2018</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Financial liabilities at fair value through profit or loss:</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Liabilities held at fair value through profit or loss</td> <td>&#160;</td> <td>&#160;-</td> <td>&#160;</td> <td>&#160;7,085</td> <td>&#160;</td> <td>11</td> <td>&#160;</td> <td>&#160;7,096</td> </tr><tr><td>Trading liabilities</td> <td>&#160;</td> <td>&#160;1,464</td> <td>&#160;</td> <td>&#160;21,987</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>&#160;23,451</td> </tr><tr><td>Total financial liabilities at fair value through profit or loss</td> <td>&#160;</td> <td>&#160;1,464</td> <td>&#160;</td> <td>&#160;29,072</td> <td>&#160;</td> <td>11</td> <td>&#160;</td> <td>&#160;30,547</td> </tr><tr><td>Derivative financial instruments</td> <td>&#160;</td> <td>132</td> <td>&#160;</td> <td>&#160;20,525</td> <td>&#160;</td> <td>&#160;716</td> <td>&#160;</td> <td>&#160;21,373</td> </tr><tr><td>Total financial liabilities carried at fair value</td> <td>&#160;</td> <td>1,596</td> <td>&#160;</td> <td>49,597</td> <td>&#160;</td> <td>727</td> <td>&#160;</td> <td>51,920</td> </tr></table> &#160;<br/><br/> &#160;<br/><strong>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS </strong>(continued)<br/> &#160;<br/><strong>19.&#160;&#160;&#160;&#160;&#160;&#160; Fair values of financial assets and liabilities</strong> (continued)<br/> &#160;<br/><strong>Movements in level 3 portfolio</strong><br/> The tables below analyse movements in the level 3 financial assets portfolio.<br/> &#160; <table border="1"><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>Financial </strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>Financial </strong></td> <td>&#160;</td> <td><strong>assets at </strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>Total</strong></td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>assets at </strong></td> <td>&#160;</td> <td><strong>fair value</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>financial</strong></td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>fair value</strong></td> <td>&#160;</td> <td><strong>through other</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>assets</strong></td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>through profit</strong></td> <td>&#160;</td> <td><strong>comprehensive</strong></td> <td>&#160;</td> <td><strong>Derivative</strong></td> <td>&#160;</td> <td><strong>carried at</strong></td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>&#160;or loss</strong></td> <td>&#160;</td> <td><strong>income</strong></td> <td>&#160;</td> <td><strong>assets</strong></td> <td>&#160;</td> <td><strong>&#160;fair value</strong></td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>&#163;m</strong></td> <td>&#160;</td> <td><strong>&#163;m</strong></td> <td>&#160;</td> <td><strong>&#163;m</strong></td> <td>&#160;</td> <td><strong>&#163;m</strong></td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>At 1 January 2019</td> <td>&#160;</td> <td><strong>13,917</strong></td> <td>&#160;</td> <td><strong>267</strong></td> <td>&#160;</td> <td><strong>927</strong></td> <td>&#160;</td> <td><strong>15,111</strong></td> </tr><tr><td>Exchange and other adjustments</td> <td>&#160;</td> <td><strong>3</strong></td> <td>&#160;</td> <td><strong>1</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>4</strong></td> </tr><tr><td>Gains recognised in the income statement within other income</td> <td>&#160;</td> <td><strong>489</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>251</strong></td> <td>&#160;</td> <td><strong>740</strong></td> </tr><tr><td>Gains (losses) recognised in other comprehensive income within the revaluation reserve in respect of financial assets carried at fair value through other comprehensive income</td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>8</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>8</strong></td> </tr><tr><td>Purchases/ increases to customer loans</td> <td>&#160;</td> <td><strong>1,511</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>2</strong></td> <td>&#160;</td> <td><strong>1,513</strong></td> </tr><tr><td>Sales/ repayments</td> <td>&#160;</td> <td><strong>(1,522)</strong></td> <td>&#160;</td> <td><strong>(80)</strong></td> <td>&#160;</td> <td><strong>(16)</strong></td> <td>&#160;</td> <td><strong>(1,618)</strong></td> </tr><tr><td>Transfers into the level 3 portfolio</td> <td>&#160;</td> <td><strong>563</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>22</strong></td> <td>&#160;</td> <td><strong>585</strong></td> </tr><tr><td>Transfers out of the level 3 portfolio</td> <td>&#160;</td> <td><strong>(98)</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>(2)</strong></td> <td>&#160;</td> <td><strong>(100)</strong></td> </tr><tr><td><strong>At 30 June 2019</strong></td> <td>&#160;</td> <td><strong>14,863</strong></td> <td>&#160;</td> <td><strong>196</strong></td> <td>&#160;</td> <td><strong>1,184</strong></td> <td>&#160;</td> <td><strong>16,243</strong></td> </tr><tr><td><strong>Gains (losses) recognised in the income statement within other income relating to those assets held at 30 June 2019</strong></td> <td>&#160;</td> <td><strong>189</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>285</strong></td> <td>&#160;</td> <td><strong>474</strong></td> </tr></table> &#160; <table border="1"><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>Financial</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>Financial</td> <td>&#160;</td> <td>assets held</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>Total</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>assets at</td> <td>&#160;</td> <td>at fair value</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>financial</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>fair value</td> <td>&#160;</td> <td>through other</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>assets</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>through profit</td> <td>&#160;</td> <td>comprehensive</td> <td>&#160;</td> <td>Derivative</td> <td>&#160;</td> <td>carried at</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;or loss</td> <td>&#160;</td> <td>income</td> <td>&#160;</td> <td>assets</td> <td>&#160;</td> <td>&#160;fair value</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#163;m</td> <td>&#160;&#160;&#160;</td> <td>&#163;m</td> <td>&#160;&#160;&#160;</td> <td>&#163;m</td> <td>&#160;&#160;&#160;</td> <td>&#163;m</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>At 1 January 2018</td> <td>&#160;</td> <td>14,152</td> <td>&#160;</td> <td>302</td> <td>&#160;</td> <td>1,056</td> <td>&#160;</td> <td>15,510</td> </tr><tr><td>Exchange and other adjustments</td> <td>&#160;</td> <td>3</td> <td>&#160;</td> <td>(1)</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>2</td> </tr><tr><td>Gains recognised in the income statement within other income</td> <td>&#160;</td> <td>111</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>2</td> <td>&#160;</td> <td>113</td> </tr><tr><td>Gains recognised in other comprehensive income within the revaluation reserve in respect of financial assets held at fair value through other comprehensive income</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>1</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>1</td> </tr><tr><td>Purchases/ increases to customer loans</td> <td>&#160;</td> <td>206</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>206</td> </tr><tr><td>Sales/ repayments</td> <td>&#160;</td> <td>(491)</td> <td>&#160;</td> <td>(91)</td> <td>&#160;</td> <td>(90)</td> <td>&#160;</td> <td>(672)</td> </tr><tr><td>Transfers into the level 3 portfolio</td> <td>&#160;</td> <td>532</td> <td>&#160;</td> <td>334</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>866</td> </tr><tr><td>Transfers out of the level 3 portfolio</td> <td>&#160;</td> <td>(320)</td> <td>&#160;</td> <td>(193)</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>(513)</td> </tr><tr><td>At 30 June 2018</td> <td>&#160;</td> <td>14,193</td> <td>&#160;</td> <td>352</td> <td>&#160;</td> <td>968</td> <td>&#160;</td> <td>15,513</td> </tr><tr><td>Gains (losses) recognised in the income statement within other income relating to those assets held at 30 June 2018</td> <td>&#160;</td> <td>160</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>2</td> <td>&#160;</td> <td>162</td> </tr></table><br/> &#160;<br/><strong>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS </strong>(continued)<br/> &#160;<br/><strong>19.&#160;&#160;&#160;&#160;&#160;&#160; Fair values of financial assets and liabilities</strong> (continued)<br/> &#160;<br/> The tables below analyse movements in the level 3 financial liabilities portfolio.<br/> &#160; <table border="1"><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>Financial</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>Total</strong></td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>liabilities at</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>financial</strong></td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>fair value</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>liabilities</strong></td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>through</strong></td> <td>&#160;</td> <td><strong>Derivative</strong></td> <td>&#160;</td> <td><strong>carried at</strong></td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>profit or loss</strong></td> <td>&#160;</td> <td><strong>liabilities</strong></td> <td>&#160;</td> <td><strong>fair value</strong></td> </tr><tr><td>&#160;</td> <td>&#160;&#160;&#160;</td> <td><strong>&#163;m</strong></td> <td>&#160;&#160;&#160;</td> <td><strong>&#163;m</strong></td> <td>&#160;&#160;&#160;</td> <td><strong>&#163;m</strong></td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>At 1 January 2019</td> <td>&#160;</td> <td><strong>11</strong></td> <td>&#160;</td> <td><strong>716</strong></td> <td>&#160;</td> <td><strong>727</strong></td> </tr><tr><td>Exchange and other adjustments</td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> </tr><tr><td>Losses recognised in the income statement within other income</td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>204</strong></td> <td>&#160;</td> <td><strong>204</strong></td> </tr><tr><td>Additions</td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>1</strong></td> <td>&#160;</td> <td><strong>1</strong></td> </tr><tr><td>Redemptions</td> <td>&#160;</td> <td><strong>(1)</strong></td> <td>&#160;</td> <td><strong>(12)</strong></td> <td>&#160;</td> <td><strong>(13)</strong></td> </tr><tr><td>Transfers into the level 3 portfolio</td> <td>&#160;</td> <td><strong>53</strong></td> <td>&#160;</td> <td><strong>364</strong></td> <td>&#160;</td> <td><strong>417</strong></td> </tr><tr><td>Transfers out of the level 3 portfolio</td> <td>&#160;</td> <td><strong>(11)</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>(11)</strong></td> </tr><tr><td><strong>At 30 June 2019</strong></td> <td>&#160;</td> <td><strong>52</strong></td> <td>&#160;</td> <td><strong>1,273</strong></td> <td>&#160;</td> <td><strong>1,325</strong></td> </tr><tr><td><strong>Losses recognised in the income statement within other income relating to those liabilities held at 30 June 2019</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>249</strong></td> <td>&#160;</td> <td><strong>249</strong></td> </tr></table> &#160; <table border="1"><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>Financial</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>Total</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>liabilities at</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>financial</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>fair value</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>liabilities</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>through</td> <td>&#160;</td> <td>Derivative</td> <td>&#160;</td> <td>carried at</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>profit or loss</td> <td>&#160;</td> <td>liabilities</td> <td>&#160;</td> <td>fair value</td> </tr><tr><td>&#160;</td> <td>&#160;&#160;&#160;</td> <td>&#163;m</td> <td>&#160;&#160;&#160;</td> <td>&#163;m</td> <td>&#160;&#160;&#160;</td> <td>&#163;m</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>At 1 January 2018</td> <td>&#160;</td> <td>&#160;-</td> <td>&#160;</td> <td>&#160;804</td> <td>&#160;</td> <td>&#160;804</td> </tr><tr><td>Exchange and other adjustments</td> <td>&#160;</td> <td>&#160;-</td> <td>&#160;</td> <td>&#160;-</td> <td>&#160;</td> <td>&#160;-</td> </tr><tr><td>Gains recognised in the income statement within other income</td> <td>&#160;</td> <td>&#160;-</td> <td>&#160;</td> <td>&#160;(30)</td> <td>&#160;</td> <td>&#160;(30)</td> </tr><tr><td>Additions</td> <td>&#160;</td> <td>&#160;-</td> <td>&#160;</td> <td>&#160;-</td> <td>&#160;</td> <td>&#160;-</td> </tr><tr><td>Redemptions</td> <td>&#160;</td> <td>&#160;-</td> <td>&#160;</td> <td>&#160;(2)</td> <td>&#160;</td> <td>&#160;(2)</td> </tr><tr><td>Transfers into the level 3 portfolio</td> <td>&#160;</td> <td>10</td> <td>&#160;</td> <td>&#160;-</td> <td>&#160;</td> <td>&#160;10</td> </tr><tr><td>Transfers out of the level 3 portfolio</td> <td>&#160;</td> <td>&#160;-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>&#160;-</td> </tr><tr><td>At 30 June 2018</td> <td>&#160;</td> <td>&#160;10</td> <td>&#160;</td> <td>&#160;772</td> <td>&#160;</td> <td>&#160;782</td> </tr><tr><td>Gains recognised in the income statement within other income relating to those liabilities held at 30 June 2018</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>&#160;(30)</td> <td>&#160;</td> <td>&#160;(30)</td> </tr></table><br/> &#160;<br/><strong>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS </strong>(continued)<br/> &#160;<br/><strong>19.&#160;&#160;&#160;&#160;&#160;&#160; Fair values of financial assets and liabilities</strong> (continued)<br/> &#160;<br/> The tables below set out the effects of reasonably possible alternative assumptions for categories of level 3 financial assets and financial liabilities which have an aggregated carrying value greater than &#163;500&#160;million.<br/> &#160; <table border="0"><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2">&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="5"><strong>At 30 June 2019</strong></td> <td colspan="2">&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="3"><strong>Effect of reasonably</strong></td> <td colspan="2">&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="3"><strong>possible alternative</strong></td> <td colspan="2">&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="3"><strong>assumptions<sup>1</sup></strong></td> <td colspan="2">&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>Significant</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2">&#160;</td> </tr><tr><td>&#160;</td> <td><strong>Valuation</strong></td> <td><strong>unobservable</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>Carrying</strong></td> <td>&#160;</td> <td><strong>Favourable</strong></td> <td>&#160;</td> <td><strong>Unfavourable</strong></td> <td colspan="2">&#160;</td> </tr><tr><td>&#160;</td> <td><strong>technique(s)</strong></td> <td><strong>inputs</strong></td> <td>&#160;</td> <td><strong>Range<sup>2</sup></strong></td> <td>&#160;</td> <td><strong>value</strong></td> <td>&#160;</td> <td><strong>changes</strong></td> <td>&#160;</td> <td><strong>changes</strong></td> <td colspan="2">&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>&#163;m</strong></td> <td>&#160;</td> <td><strong>&#163;m</strong></td> <td>&#160;</td> <td><strong>&#163;m</strong></td> <td colspan="2">&#160;</td> </tr><tr><td colspan="3"><em>Financial assets at fair value through profit or loss</em></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2">&#160;</td> </tr><tr><td>Loans and advances to customers</td> <td>Discounted<br/> &#160;cash flows</td> <td>Gross interest rates, inferred spreads (bps)</td> <td>&#160;</td> <td><strong>76 bps /</strong><br/><strong>208 bps</strong></td> <td>&#160;</td> <td><strong>11,042</strong></td> <td>&#160;</td> <td><strong>347</strong></td> <td>&#160;</td> <td><strong>(406)</strong></td> <td colspan="2">&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2">&#160;</td> </tr><tr><td>Equity and venture capital investments</td> <td>Market approach</td> <td>Earnings multiple</td> <td>&#160;</td> <td><strong>0.9 /</strong><br/><strong>14.6</strong></td> <td>&#160;</td> <td><strong>1,786</strong></td> <td>&#160;</td> <td><strong>102</strong></td> <td>&#160;</td> <td><strong>(96)</strong></td> <td colspan="2">&#160;</td> </tr><tr><td>Equity and venture capital investments</td> <td>Underlying asset/net asset value (incl. property prices)&#179;</td> <td>n/a</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>524</strong></td> <td>&#160;</td> <td><strong>51</strong></td> <td>&#160;</td> <td><strong>(74)</strong></td> <td colspan="2">&#160;</td> </tr><tr><td>Unlisted equities and debt securities, property partnerships in the life funds</td> <td>Underlying asset/net asset value (incl. property prices)&#179;</td> <td>n/a</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>1,153</strong></td> <td>&#160;</td> <td><strong>16</strong></td> <td>&#160;</td> <td><strong>(40)</strong></td> <td colspan="2">&#160;</td> </tr><tr><td>Other</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>358</strong></td> <td>&#160;</td> <td><strong>47</strong></td> <td>&#160;</td> <td><strong>(47)</strong></td> <td colspan="2">&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>14,863</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2">&#160;</td> </tr><tr><td colspan="3"><em>Financial assets at fair value through other comprehensive income</em></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>196</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td><em>Derivative financial assets</em></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2">&#160;</td> </tr><tr><td>Interest rate derivatives</td> <td>Option pricing model</td> <td>Interest rate volatility</td> <td>&#160;</td> <td><strong>7% /</strong><br/><strong>121%</strong></td> <td>&#160;</td> <td><strong>1,184</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2">&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>1,184</strong></td> <td>&#160;</td> <td><strong>8</strong></td> <td>&#160;</td> <td><strong>(4)</strong></td> <td colspan="2">&#160;</td> </tr><tr><td colspan="3">Financial assets carried at fair value</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>16,243</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2">&#160;</td> </tr><tr><td colspan="3">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2">&#160;</td> </tr><tr><td colspan="3"><em>Financial liabilities at fair value through profit or loss</em></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>52</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2">&#160;</td> </tr><tr><td colspan="3">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2">&#160;</td> </tr><tr><td><em>Derivative financial liabilities</em></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2">&#160;</td> </tr><tr><td>Interest rate derivatives</td> <td>Option pricing model</td> <td>Interest rate volatility</td> <td>&#160;</td> <td><strong>7% /</strong><br/><strong>121%</strong></td> <td>&#160;</td> <td><strong>1,273</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td colspan="2">&#160;</td> </tr><tr><td colspan="3">Financial liabilities carried at fair value</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>1,325</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2">&#160;</td> </tr></table> &#160; <table border="0"><tr><td>&#160;</td> <td>&#160;</td> </tr><tr><td><sup>1</sup></td> <td>Where the exposure to an unobservable input is managed on a net basis, only the net impact is shown in the table.</td> </tr><tr><td><sup>2</sup></td> <td>The range represents the highest and lowest inputs used in the level 3 valuations.</td> </tr><tr><td><sup>3</sup></td> <td>Underlying asset/net asset values represent fair value.</td> </tr></table> &#160;<br/><br/> &#160;<br/><strong>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS </strong>(continued)<br/> &#160;<br/><strong>19.&#160;&#160;&#160;&#160;&#160;&#160; Fair values of financial assets and liabilities</strong> (continued)<br/> &#160; <table border="0"><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="5">At 31 December 2018</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="3">Effect of reasonably</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="3">possible alternative</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="3">assumptions<sup>1</sup></td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>Significant</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>Valuation</td> <td>unobservable</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>Carrying</td> <td>&#160;</td> <td>Favourable</td> <td>&#160;</td> <td>Unfavourable</td> </tr><tr><td>&#160;</td> <td>technique(s)</td> <td>inputs</td> <td>&#160;</td> <td>Range<sup>2</sup></td> <td>&#160;</td> <td>value</td> <td>&#160;</td> <td>changes</td> <td>&#160;</td> <td>changes</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#163;m</td> <td>&#160;</td> <td>&#163;m</td> <td>&#160;</td> <td>&#163;m</td> </tr><tr><td colspan="3"><em>Financial assets at fair value through profit or loss:</em></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Loans and advances to customers</td> <td>Discounted<br/> cash flows</td> <td>Gross interest rates, inferred spreads (bps)<br/> &#160;</td> <td>&#160;</td> <td>97bps / 208bps</td> <td>&#160;</td> <td>10,565</td> <td>&#160;</td> <td>380</td> <td>&#160;</td> <td>(371)</td> </tr><tr><td>Equity and venture capital investments</td> <td>Market approach</td> <td>Earnings multiple</td> <td>&#160;</td> <td>0.9 /<br/> 14.6</td> <td>&#160;</td> <td>1,657</td> <td>&#160;</td> <td>54</td> <td>&#160;</td> <td>(55)</td> </tr><tr><td>&#160;</td> <td>Underlying assets/net asset value (incl. property prices)&#179;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>523</td> <td>&#160;</td> <td>48</td> <td>&#160;</td> <td>(57)</td> </tr><tr><td>Unlisted equities and debt securities, property partnerships in the life funds</td> <td>Underlying asset/net asset value (incl. property prices, broker quotes or discounted cash flows)<sup>3</sup></td> <td>n/a</td> <td>&#160;</td> <td>n/a</td> <td>&#160;</td> <td>898</td> <td>&#160;</td> <td>2</td> <td>&#160;</td> <td>(45)</td> </tr><tr><td>Other</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>274</td> <td>&#160;</td> <td>92</td> <td>&#160;</td> <td>(21)</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>13,917</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td colspan="2"><em>Financial assets at fair value through other comprehensive income</em></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>267</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td><em>Derivative financial assets:</em></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Interest rate derivatives</td> <td>Option pricing model</td> <td>Interest rate volatility</td> <td>&#160;</td> <td>19% /<br/> &#160;80%</td> <td>&#160;</td> <td>927</td> <td>&#160;</td> <td>7</td> <td>&#160;</td> <td>(5)</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>927</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td colspan="2">Financial assets carried at fair value</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>15,111</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td colspan="2"><em>Financial liabilities at fair value through profit or loss</em></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>11</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td colspan="2"><em>Derivative financial liabilities:</em></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Interest rate derivatives</td> <td>Option pricing model</td> <td>Interest rate volatility</td> <td>&#160;</td> <td>19% /<br/> 80%</td> <td>&#160;</td> <td>716</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>716</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td colspan="2">Financial liabilities carried at fair value</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>727</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr></table> &#160; <table border="0"><tr><td><sup>1</sup></td> <td>Where the exposure to an unobservable input is managed on a net basis, only the net impact is shown in the table.</td> </tr><tr><td><sup>2</sup></td> <td>The range represents the highest and lowest inputs used in the level 3 valuations.</td> </tr><tr><td><sup>3</sup></td> <td>Underlying asset/net asset values represent fair value.</td> </tr></table> &#160;<br/><strong>Unobservable inputs</strong><br/> Significant unobservable inputs affecting the valuation of debt securities, unlisted equity investments and derivatives are unchanged from those described in the Group&apos;s 2018 financial statements.<br/> &#160;<br/><strong>Reasonably possible alternative assumptions</strong><br/> Valuation techniques applied to many of the Group&apos;s level 3 instruments often involve the use of two or more inputs whose relationship is interdependent. The calculation of the effect of reasonably possible alternative assumptions included in the table above reflects such relationships and are unchanged from those described in note 49 to the Group&apos;s 2018 financial statements.<br/><br/><strong>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS </strong>(continued)<br/> &#160;<br/><strong>20.&#160;&#160;&#160;&#160;&#160;&#160; Credit quality of loans and advances to banks and customers</strong><br/> &#160;<br/><strong>Gross drawn exposures</strong><br/> &#160; <table border="1"><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td><strong>At 30 June 2019</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>P</strong><strong>urchased</strong></td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>or</strong></td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>originated</strong></td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>credit-</strong></td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>PD</strong></td> <td>&#160;</td> <td><strong>Stage 1</strong></td> <td>&#160;</td> <td><strong>Stage 2</strong></td> <td>&#160;</td> <td><strong>Stage 3</strong></td> <td>&#160;</td> <td><strong>impaired</strong></td> <td>&#160;</td> <td><strong>Total</strong></td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>range</strong></td> <td>&#160;</td> <td><strong>&#163;m</strong></td> <td>&#160;</td> <td><strong>&#163;m</strong></td> <td>&#160;</td> <td><strong>&#163;m</strong></td> <td>&#160;</td> <td><strong>&#163;m</strong></td> <td>&#160;</td> <td><strong>&#163;m&#160;</strong></td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td colspan="3"><strong>Loans and advances to banks:</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>CMS 1-10</td> <td>&#160;</td> <td>0.00-0.50%</td> <td>&#160;</td> <td><strong>8,170</strong></td> <td>&#160;</td> <td><strong>15</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>8,185</strong></td> </tr><tr><td>CMS 11-14</td> <td>&#160;</td> <td>0.51-3.00%</td> <td>&#160;</td> <td><strong>192</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>192</strong></td> </tr><tr><td>CMS 15-18</td> <td>&#160;</td> <td>3.01-20.00%</td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> </tr><tr><td>CMS 19</td> <td>&#160;</td> <td>20.01-99.99%</td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> </tr><tr><td>CMS 20-23</td> <td>&#160;</td> <td>100%</td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>8,362</strong></td> <td>&#160;</td> <td><strong>15</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>8,377</strong></td> </tr><tr><td colspan="3"><strong>Loans and advances to customers:</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td><em>Retail - mortgages</em></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>RMS 1-6</td> <td>&#160;</td> <td>0.00-4.50%</td> <td>&#160;</td> <td><strong>252,238</strong></td> <td>&#160;</td> <td><strong>13,585</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>265,823</strong></td> </tr><tr><td>RMS 7-9</td> <td>&#160;</td> <td>4.51-14.00%</td> <td>&#160;</td> <td><strong>22</strong></td> <td>&#160;</td> <td><strong>1,842</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>1,864</strong></td> </tr><tr><td>RMS 10</td> <td>&#160;</td> <td>14.01-20.00%</td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>421</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>421</strong></td> </tr><tr><td>RMS 11-13</td> <td>&#160;</td> <td>20.01-99.99%</td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>1,028</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>1,028</strong></td> </tr><tr><td>RMS 14</td> <td>&#160;</td> <td>100.00%</td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>1,543</strong></td> <td>&#160;</td> <td><strong>14,614</strong></td> <td>&#160;</td> <td><strong>16,157</strong></td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>252,260</strong></td> <td>&#160;</td> <td><strong>16,876</strong></td> <td>&#160;</td> <td><strong>1,543</strong></td> <td>&#160;</td> <td><strong>14,614</strong></td> <td>&#160;</td> <td><strong>285,293</strong></td> </tr><tr><td><em>Retail - unsecured</em></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>RMS 1-6</td> <td>&#160;</td> <td>0.00-4.50%</td> <td>&#160;</td> <td><strong>22,749</strong></td> <td>&#160;</td> <td><strong>1,213</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>23,962</strong></td> </tr><tr><td>RMS 7-9</td> <td>&#160;</td> <td>4.51-14.00%</td> <td>&#160;</td> <td><strong>1,782</strong></td> <td>&#160;</td> <td><strong>738</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>2,520</strong></td> </tr><tr><td>RMS 10</td> <td>&#160;</td> <td>14.01-20.00%</td> <td>&#160;</td> <td><strong>36</strong></td> <td>&#160;</td> <td><strong>143</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>179</strong></td> </tr><tr><td>RMS 11-13</td> <td>&#160;</td> <td>20.01-99.99%</td> <td>&#160;</td> <td><strong>11</strong></td> <td>&#160;</td> <td><strong>545</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>556</strong></td> </tr><tr><td>RMS 14</td> <td>&#160;</td> <td>100.00%</td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>678</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>678</strong></td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>24,578</strong></td> <td>&#160;</td> <td><strong>2,639</strong></td> <td>&#160;</td> <td><strong>678</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>27,895</strong></td> </tr><tr><td><em>Retail - UK Motor Finance</em></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>RMS 1-6</td> <td>&#160;</td> <td>0.00-4.50%</td> <td>&#160;</td> <td><strong>14,013</strong></td> <td>&#160;</td> <td><strong>881</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>14,894</strong></td> </tr><tr><td>RMS 7-9</td> <td>&#160;</td> <td>4.51-14.00%</td> <td>&#160;</td> <td><strong>327</strong></td> <td>&#160;</td> <td><strong>236</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>563</strong></td> </tr><tr><td>RMS 10</td> <td>&#160;</td> <td>14.01-20.00%</td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>93</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>93</strong></td> </tr><tr><td>RMS 11-13</td> <td>&#160;</td> <td>20.01-99.99%</td> <td>&#160;</td> <td><strong>3</strong></td> <td>&#160;</td> <td><strong>192</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>195</strong></td> </tr><tr><td>RMS 14</td> <td>&#160;</td> <td>100.00%</td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>137</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>137</strong></td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>14,343</strong></td> <td>&#160;</td> <td><strong>1,402</strong></td> <td>&#160;</td> <td><strong>137</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>15,882</strong></td> </tr><tr><td><em>Retail - other</em></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>RMS 1-6</td> <td>&#160;</td> <td>0.00-4.50%</td> <td>&#160;</td> <td><strong>8,252</strong></td> <td>&#160;</td> <td><strong>370</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>8,622</strong></td> </tr><tr><td>RMS 7-9</td> <td>&#160;</td> <td>4.51-14.00%</td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>107</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>107</strong></td> </tr><tr><td>RMS 10</td> <td>&#160;</td> <td>14.01-20.00%</td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>10</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>10</strong></td> </tr><tr><td>RMS 11-13</td> <td>&#160;</td> <td>20.01-99.99%</td> <td>&#160;</td> <td><strong>167</strong></td> <td>&#160;</td> <td><strong>28</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>195</strong></td> </tr><tr><td>RMS 14</td> <td>&#160;</td> <td>100.00%</td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>132</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>132</strong></td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>8,419</strong></td> <td>&#160;</td> <td><strong>515</strong></td> <td>&#160;</td> <td><strong>132</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>9,066</strong></td> </tr><tr><td>CMS 1-10</td> <td>&#160;</td> <td>0.00-0.50%</td> <td>&#160;</td> <td><strong>1,538</strong></td> <td>&#160;</td> <td><strong>275</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>1,813</strong></td> </tr><tr><td>CMS 11-14</td> <td>&#160;</td> <td>0.51-3.00%</td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> </tr><tr><td>CMS 15-18</td> <td>&#160;</td> <td>3.01-20.00%</td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> </tr><tr><td>CMS 19</td> <td>&#160;</td> <td>20.01-99.99%</td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> </tr><tr><td>CMS 20-23</td> <td>&#160;</td> <td>100%</td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>29</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>29</strong></td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>1,538</strong></td> <td>&#160;</td> <td><strong>275</strong></td> <td>&#160;</td> <td><strong>29</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>1,842</strong></td> </tr><tr><td><strong>Total Retail</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>301,138</strong></td> <td>&#160;</td> <td><strong>21,707</strong></td> <td>&#160;</td> <td><strong>2,519</strong></td> <td>&#160;</td> <td><strong>14,614</strong></td> <td>&#160;</td> <td><strong>339,978</strong></td> </tr></table><strong>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS </strong>(continued)<br/> &#160;<br/><strong>20.&#160;&#160;&#160;&#160;&#160;&#160; Credit quality of loans and advances to banks and customers</strong> (continued)<br/> &#160;<br/><strong>Gross drawn exposures </strong>(continued)<br/> &#160; <table border="1"><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td><strong>At 30 June 2019</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>P</strong><strong>urchased</strong></td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>or</strong></td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>originated</strong></td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>credit-</strong></td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>PD</strong></td> <td>&#160;</td> <td><strong>Stage 1</strong></td> <td>&#160;</td> <td><strong>Stage 2</strong></td> <td>&#160;</td> <td><strong>Stage 3</strong></td> <td>&#160;</td> <td><strong>impaired</strong></td> <td>&#160;</td> <td><strong>Total</strong></td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>range</strong></td> <td>&#160;</td> <td><strong>&#163;m</strong></td> <td>&#160;</td> <td><strong>&#163;m</strong></td> <td>&#160;</td> <td><strong>&#163;m</strong></td> <td>&#160;</td> <td><strong>&#163;m</strong></td> <td>&#160;</td> <td><strong>&#163;m&#160;</strong></td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td><em>Commercial</em></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>CMS 1-10</td> <td>&#160;</td> <td>0.00-0.50%</td> <td>&#160;</td> <td><strong>68,151</strong></td> <td>&#160;</td> <td><strong>344</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>68,495</strong></td> </tr><tr><td>CMS 11-14</td> <td>&#160;</td> <td>0.51-3.00%</td> <td>&#160;</td> <td><strong>21,584</strong></td> <td>&#160;</td> <td><strong>4,661</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>26,245</strong></td> </tr><tr><td>CMS 15-18</td> <td>&#160;</td> <td>3.01-20.00%</td> <td>&#160;</td> <td><strong>598</strong></td> <td>&#160;</td> <td><strong>2,334</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>2,932</strong></td> </tr><tr><td>CMS 19</td> <td>&#160;</td> <td>20.01-99.99%</td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>74</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>74</strong></td> </tr><tr><td>CMS 20-23</td> <td>&#160;</td> <td>100%</td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>3,777</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>3,777</strong></td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>90,333</strong></td> <td>&#160;</td> <td><strong>7,413</strong></td> <td>&#160;</td> <td><strong>3,777</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>101,523</strong></td> </tr><tr><td><em>Other</em></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>RMS 1-6</td> <td>&#160;</td> <td>0.00-4.50%</td> <td>&#160;</td> <td><strong>789</strong></td> <td>&#160;</td> <td><strong>50</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>839</strong></td> </tr><tr><td>RMS 7-9</td> <td>&#160;</td> <td>4.51-14.00%</td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> </tr><tr><td>RMS 10</td> <td>&#160;</td> <td>14.01-20.00%</td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> </tr><tr><td>RMS 11-13</td> <td>&#160;</td> <td>20.01-99.99%</td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> </tr><tr><td>RMS 14</td> <td>&#160;</td> <td>100.00%</td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>56</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>56</strong></td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>789</strong></td> <td>&#160;</td> <td><strong>50</strong></td> <td>&#160;</td> <td><strong>56</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>895</strong></td> </tr><tr><td>CMS 1-10</td> <td>&#160;</td> <td>0.00-0.50%</td> <td>&#160;</td> <td><strong>55,986</strong></td> <td>&#160;</td> <td><strong>1</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>55,987</strong></td> </tr><tr><td>CMS 11-14</td> <td>&#160;</td> <td>0.51-3.00%</td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> </tr><tr><td>CMS 15-18</td> <td>&#160;</td> <td>3.01-20.00%</td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> </tr><tr><td>CMS 19</td> <td>&#160;</td> <td>20.01-99.99%</td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> </tr><tr><td>CMS 20-23</td> <td>&#160;</td> <td>100%</td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>68</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>68</strong></td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>55,986</strong></td> <td>&#160;</td> <td><strong>1</strong></td> <td>&#160;</td> <td><strong>68</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>56,055</strong></td> </tr><tr><td colspan="3"><strong>Total loans and advances to customers</strong></td> <td>&#160;</td> <td><strong>448,246</strong></td> <td>&#160;</td> <td><strong>29,171</strong></td> <td>&#160;</td> <td><strong>6,420</strong></td> <td>&#160;</td> <td><strong>14,614</strong></td> <td>&#160;</td> <td><strong>498,451</strong></td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td><em>In respect of:</em></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Retail</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>301,138</strong></td> <td>&#160;</td> <td><strong>21,707</strong></td> <td>&#160;</td> <td><strong>2,519</strong></td> <td>&#160;</td> <td><strong>14,614</strong></td> <td>&#160;</td> <td><strong>339,978</strong></td> </tr><tr><td>Commercial</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>90,333</strong></td> <td>&#160;</td> <td><strong>7,413</strong></td> <td>&#160;</td> <td><strong>3,777</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>101,523</strong></td> </tr><tr><td>Other</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>56,775</strong></td> <td>&#160;</td> <td><strong>51</strong></td> <td>&#160;</td> <td><strong>124</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>56,950</strong></td> </tr><tr><td colspan="3"><strong>Total loans and advances to customers</strong></td> <td>&#160;</td> <td><strong>448,246</strong></td> <td>&#160;</td> <td><strong>29,171</strong></td> <td>&#160;</td> <td><strong>6,420</strong></td> <td>&#160;</td> <td><strong>14,614</strong></td> <td>&#160;</td> <td><strong>498,451</strong></td> </tr></table> &#160;<br/><br/> &#160;<br/><strong>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS </strong>(continued)<br/> &#160;<br/><strong>20.&#160;&#160;&#160;&#160;&#160;&#160; Credit quality of loans and advances to banks and customers</strong> (continued)<br/> &#160;<br/><strong>Expected credit losses</strong><br/> &#160; <table border="1"><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td><strong>At 30 June 2019</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>P</strong><strong>urchased</strong></td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>or</strong></td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>originated</strong></td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>credit-</strong></td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>PD</strong></td> <td>&#160;</td> <td><strong>Stage 1</strong></td> <td>&#160;</td> <td><strong>Stage 2</strong></td> <td>&#160;</td> <td><strong>Stage 3</strong></td> <td>&#160;</td> <td><strong>impaired</strong></td> <td>&#160;</td> <td><strong>Total</strong></td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>range</strong></td> <td>&#160;</td> <td><strong>&#163;m</strong></td> <td>&#160;</td> <td><strong>&#163;m</strong></td> <td>&#160;</td> <td><strong>&#163;m</strong></td> <td>&#160;</td> <td><strong>&#163;m</strong></td> <td>&#160;</td> <td><strong>&#163;m&#160;</strong></td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td colspan="3"><strong>Loans and advances to banks:</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>CMS 1-10</td> <td>&#160;</td> <td>0.00-0.50%</td> <td>&#160;</td> <td><strong>2</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>2</strong></td> </tr><tr><td>CMS 11-14</td> <td>&#160;</td> <td>0.51-3.00%</td> <td>&#160;</td> <td><strong>1</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>1</strong></td> </tr><tr><td>CMS 15-18</td> <td>&#160;</td> <td>3.01-20.00%</td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> </tr><tr><td>CMS 19</td> <td>&#160;</td> <td>20.01-99.99%</td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> </tr><tr><td>CMS 20-23</td> <td>&#160;</td> <td>100%</td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>3</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>3</strong></td> </tr><tr><td colspan="3"><strong>Loans and advances to customers:</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td colspan="3"><em>Retail - mortgages</em></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>RMS 1-6</td> <td>&#160;</td> <td>0.00-4.50%</td> <td>&#160;</td> <td><strong>37</strong></td> <td>&#160;</td> <td><strong>168</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>205</strong></td> </tr><tr><td>RMS 7-9</td> <td>&#160;</td> <td>4.51-14.00%</td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>36</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>36</strong></td> </tr><tr><td>RMS 10</td> <td>&#160;</td> <td>14.01-20.00%</td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>15</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>15</strong></td> </tr><tr><td>RMS 11-13</td> <td>&#160;</td> <td>20.01-99.99%</td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>47</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>47</strong></td> </tr><tr><td>RMS 14</td> <td>&#160;</td> <td>100.00%</td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>134</strong></td> <td>&#160;</td> <td><strong>181</strong></td> <td>&#160;</td> <td><strong>315</strong></td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>37</strong></td> <td>&#160;</td> <td><strong>266</strong></td> <td>&#160;</td> <td><strong>134</strong></td> <td>&#160;</td> <td><strong>181</strong></td> <td>&#160;</td> <td><strong>618</strong></td> </tr><tr><td><em>Retail - unsecured</em></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>RMS 1-6</td> <td>&#160;</td> <td>0.00-4.50%</td> <td>&#160;</td> <td><strong>184</strong></td> <td>&#160;</td> <td><strong>48</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>232</strong></td> </tr><tr><td>RMS 7-9</td> <td>&#160;</td> <td>4.51-14.00%</td> <td>&#160;</td> <td><strong>70</strong></td> <td>&#160;</td> <td><strong>76</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>146</strong></td> </tr><tr><td>RMS 10</td> <td>&#160;</td> <td>14.01-20.00%</td> <td>&#160;</td> <td><strong>4</strong></td> <td>&#160;</td> <td><strong>26</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>30</strong></td> </tr><tr><td>RMS 11-13</td> <td>&#160;</td> <td>20.01-99.99%</td> <td>&#160;</td> <td><strong>3</strong></td> <td>&#160;</td> <td><strong>180</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>183</strong></td> </tr><tr><td>RMS 14</td> <td>&#160;</td> <td>100.00%</td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>215</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>215</strong></td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>261</strong></td> <td>&#160;</td> <td><strong>330</strong></td> <td>&#160;</td> <td><strong>215</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>806</strong></td> </tr><tr><td colspan="3"><em>Retail - UK Motor Finance</em></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>RMS 1-6</td> <td>&#160;</td> <td>0.00-4.50%</td> <td>&#160;</td> <td><strong>187</strong></td> <td>&#160;</td> <td><strong>19</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>206</strong></td> </tr><tr><td>RMS 7-9</td> <td>&#160;</td> <td>4.51-14.00%</td> <td>&#160;</td> <td><strong>13</strong></td> <td>&#160;</td> <td><strong>11</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>24</strong></td> </tr><tr><td>RMS 10</td> <td>&#160;</td> <td>14.01-20.00%</td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>9</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>9</strong></td> </tr><tr><td>RMS 11-13</td> <td>&#160;</td> <td>20.01-99.99%</td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>31</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>31</strong></td> </tr><tr><td>RMS 14</td> <td>&#160;</td> <td>100.00%</td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>77</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>77</strong></td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>200</strong></td> <td>&#160;</td> <td><strong>70</strong></td> <td>&#160;</td> <td><strong>77</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>347</strong></td> </tr><tr><td><em>Retail - other</em></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>RMS 1-6</td> <td>&#160;</td> <td>0.00-4.50%</td> <td>&#160;</td> <td><strong>6</strong></td> <td>&#160;</td> <td><strong>8</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>14</strong></td> </tr><tr><td>RMS 7-9</td> <td>&#160;</td> <td>4.51-14.00%</td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>3</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>3</strong></td> </tr><tr><td>RMS 10</td> <td>&#160;</td> <td>14.01-20.00%</td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> </tr><tr><td>RMS 11-13</td> <td>&#160;</td> <td>20.01-99.99%</td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>1</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>1</strong></td> </tr><tr><td>RMS 14</td> <td>&#160;</td> <td>100.00%</td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>46</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>46</strong></td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>6</strong></td> <td>&#160;</td> <td><strong>12</strong></td> <td>&#160;</td> <td><strong>46</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>64</strong></td> </tr><tr><td>CMS 1-10</td> <td>&#160;</td> <td>0.00-0.50%</td> <td>&#160;</td> <td><strong>20</strong></td> <td>&#160;</td> <td><strong>19</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>39</strong></td> </tr><tr><td>CMS 11-14</td> <td>&#160;</td> <td>0.51-3.00%</td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> </tr><tr><td>CMS 15-18</td> <td>&#160;</td> <td>3.01-20.00%</td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> </tr><tr><td>CMS 19</td> <td>&#160;</td> <td>20.01-99.99%</td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> </tr><tr><td>CMS 20-23</td> <td>&#160;</td> <td>100%</td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>6</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>6</strong></td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>20</strong></td> <td>&#160;</td> <td><strong>19</strong></td> <td>&#160;</td> <td><strong>6</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>45</strong></td> </tr><tr><td><strong>Total Retail</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>524</strong></td> <td>&#160;</td> <td><strong>697</strong></td> <td>&#160;</td> <td><strong>478</strong></td> <td>&#160;</td> <td><strong>181</strong></td> <td>&#160;</td> <td><strong>1,880</strong></td> </tr></table><strong>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS </strong>(continued)<br/> &#160;<br/><strong>20.&#160;&#160;&#160;&#160;&#160;&#160; Credit quality of loans and advances to banks and customers</strong> (continued)<br/> &#160;<br/><strong>Expected credit losses </strong>(continued)<br/> &#160; <table border="1"><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td><strong>At 30 June 2019</strong></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>P</strong><strong>urchased</strong></td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>or</strong></td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>originated</strong></td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>credit-</strong></td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>PD</strong></td> <td>&#160;</td> <td><strong>Stage 1</strong></td> <td>&#160;</td> <td><strong>Stage 2</strong></td> <td>&#160;</td> <td><strong>Stage 3</strong></td> <td>&#160;</td> <td><strong>impaired</strong></td> <td>&#160;</td> <td><strong>Total</strong></td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td><strong>range</strong></td> <td>&#160;</td> <td><strong>&#163;m</strong></td> <td>&#160;</td> <td><strong>&#163;m</strong></td> <td>&#160;</td> <td><strong>&#163;m</strong></td> <td>&#160;</td> <td><strong>&#163;m</strong></td> <td>&#160;</td> <td><strong>&#163;m&#160;</strong></td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td><em>Commercial</em></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>CMS 1-10</td> <td>&#160;</td> <td>0.00-0.50%</td> <td>&#160;</td> <td><strong>35</strong></td> <td>&#160;</td> <td><strong>1</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>36</strong></td> </tr><tr><td>CMS 11-14</td> <td>&#160;</td> <td>0.51-3.00%</td> <td>&#160;</td> <td><strong>46</strong></td> <td>&#160;</td> <td><strong>110</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>156</strong></td> </tr><tr><td>CMS 15-18</td> <td>&#160;</td> <td>3.01-20.00%</td> <td>&#160;</td> <td><strong>3</strong></td> <td>&#160;</td> <td><strong>135</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>138</strong></td> </tr><tr><td>CMS 19</td> <td>&#160;</td> <td>20.01-99.99%</td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>8</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>8</strong></td> </tr><tr><td>CMS 20-23</td> <td>&#160;</td> <td>100%</td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>1,046</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>1,046</strong></td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>84</strong></td> <td>&#160;</td> <td><strong>254</strong></td> <td>&#160;</td> <td><strong>1,046</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>1,384</strong></td> </tr><tr><td><em>Other</em></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>RMS 1-6</td> <td>&#160;</td> <td>0.00-4.50%</td> <td>&#160;</td> <td><strong>4</strong></td> <td>&#160;</td> <td><strong>1</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>5</strong></td> </tr><tr><td>RMS 7-9</td> <td>&#160;</td> <td>4.51-14.00%</td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> </tr><tr><td>RMS 10</td> <td>&#160;</td> <td>14.01-20.00%</td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> </tr><tr><td>RMS 11-13</td> <td>&#160;</td> <td>20.01-99.99%</td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> </tr><tr><td>RMS 14</td> <td>&#160;</td> <td>100.00%</td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>11</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>11</strong></td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>4</strong></td> <td>&#160;</td> <td><strong>1</strong></td> <td>&#160;</td> <td><strong>11</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>16</strong></td> </tr><tr><td>CMS 1-10</td> <td>&#160;</td> <td>0.00-0.50%</td> <td>&#160;</td> <td><strong>9</strong></td> <td>&#160;</td> <td><strong>1</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>10</strong></td> </tr><tr><td>CMS 11-14</td> <td>&#160;</td> <td>0.51-3.00%</td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> </tr><tr><td>CMS 15-18</td> <td>&#160;</td> <td>3.01-20.00%</td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> </tr><tr><td>CMS 19</td> <td>&#160;</td> <td>20.01-99.99%</td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> </tr><tr><td>CMS 20-23</td> <td>&#160;</td> <td>100%</td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>23</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>23</strong></td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>9</strong></td> <td>&#160;</td> <td><strong>1</strong></td> <td>&#160;</td> <td><strong>23</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>33</strong></td> </tr><tr><td colspan="3"><strong>Total loans and advances to customers</strong></td> <td>&#160;</td> <td><strong>621</strong></td> <td>&#160;</td> <td><strong>953</strong></td> <td>&#160;</td> <td><strong>1,558</strong></td> <td>&#160;</td> <td><strong>181</strong></td> <td>&#160;</td> <td><strong>3,313</strong></td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td><em>In respect of:</em></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Retail</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>524</strong></td> <td>&#160;</td> <td><strong>697</strong></td> <td>&#160;</td> <td><strong>478</strong></td> <td>&#160;</td> <td><strong>181</strong></td> <td>&#160;</td> <td><strong>1,880</strong></td> </tr><tr><td>Commercial</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>84</strong></td> <td>&#160;</td> <td><strong>254</strong></td> <td>&#160;</td> <td><strong>1,046</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>1,384</strong></td> </tr><tr><td>Other</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td><strong>13</strong></td> <td>&#160;</td> <td><strong>2</strong></td> <td>&#160;</td> <td><strong>34</strong></td> <td>&#160;</td> <td><strong>-</strong></td> <td>&#160;</td> <td><strong>49</strong></td> </tr><tr><td colspan="3"><strong>Total loans and advances to customers</strong></td> <td>&#160;</td> <td><strong>621</strong></td> <td>&#160;</td> <td><strong>953</strong></td> <td>&#160;</td> <td><strong>1,558</strong></td> <td>&#160;</td> <td><strong>181</strong></td> <td>&#160;</td> <td><strong>3,313</strong></td> </tr></table> &#160;<br/><br/> &#160;<br/><strong>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS </strong>(continued)<br/> &#160;<br/><strong>20.&#160;&#160;&#160;&#160;&#160;&#160; Credit quality of loans and advances to banks and customers</strong> (continued)<br/> &#160;<br/><strong>Gross drawn exposures</strong><br/> &#160; <table border="1"><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>At 31 December 2018</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>Purchased</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>or</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>originated</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>credit-</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>PD</td> <td>&#160;</td> <td>Stage 1</td> <td>&#160;</td> <td>Stage 2</td> <td>&#160;</td> <td>Stage 3</td> <td>&#160;</td> <td>impaired</td> <td>&#160;</td> <td>Total</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>range</td> <td>&#160;</td> <td>&#163;m</td> <td>&#160;</td> <td>&#163;m</td> <td>&#160;</td> <td>&#163;m</td> <td>&#160;</td> <td>&#163;m</td> <td>&#160;</td> <td>&#163;m&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td colspan="3">Loans and advances to banks:</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>CMS 1-10</td> <td>&#160;</td> <td>0.00-0.50%</td> <td>&#160;</td> <td>6,177</td> <td>&#160;</td> <td>3</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>6,180</td> </tr><tr><td>CMS 11-14</td> <td>&#160;</td> <td>0.51-3.00%</td> <td>&#160;</td> <td>105</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>105</td> </tr><tr><td>CMS 15-18</td> <td>&#160;</td> <td>3.01-20.00%</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> </tr><tr><td>CMS 19</td> <td>&#160;</td> <td>20.01-99.99%</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> </tr><tr><td>CMS 20-23</td> <td>&#160;</td> <td>100%</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>6,282</td> <td>&#160;</td> <td>3</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>6,285</td> </tr><tr><td colspan="3">Loans and advances to customers:</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td colspan="3"><em>Retail - mortgages</em></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>RMS 1-6</td> <td>&#160;</td> <td>0.00-4.50%</td> <td>&#160;</td> <td>257,740</td> <td>&#160;</td> <td>10,784</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>268,524</td> </tr><tr><td>RMS 7-9</td> <td>&#160;</td> <td>4.51-14.00%</td> <td>&#160;</td> <td>57</td> <td>&#160;</td> <td>1,709</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>1,766</td> </tr><tr><td>RMS 10</td> <td>&#160;</td> <td>14.01-20.00%</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>262</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>262</td> </tr><tr><td>RMS 11-13</td> <td>&#160;</td> <td>20.01-99.99%</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>899</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>899</td> </tr><tr><td>RMS 14</td> <td>&#160;</td> <td>100.00%</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>1,393</td> <td>&#160;</td> <td>15,391</td> <td>&#160;</td> <td>16,784</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>257,797</td> <td>&#160;</td> <td>13,654</td> <td>&#160;</td> <td>1,393</td> <td>&#160;</td> <td>15,391</td> <td>&#160;</td> <td>288,235</td> </tr><tr><td><em>Retail - unsecured</em></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>RMS 1-6</td> <td>&#160;</td> <td>0.00-4.50%</td> <td>&#160;</td> <td>22,363</td> <td>&#160;</td> <td>1,079</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>23,442</td> </tr><tr><td>RMS 7-9</td> <td>&#160;</td> <td>4.51-14.00%</td> <td>&#160;</td> <td>2,071</td> <td>&#160;</td> <td>774</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>2,845</td> </tr><tr><td>RMS 10</td> <td>&#160;</td> <td>14.01-20.00%</td> <td>&#160;</td> <td>72</td> <td>&#160;</td> <td>167</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>239</td> </tr><tr><td>RMS 11-13</td> <td>&#160;</td> <td>20.01-99.99%</td> <td>&#160;</td> <td>199</td> <td>&#160;</td> <td>687</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>886</td> </tr><tr><td>RMS 14</td> <td>&#160;</td> <td>100.00%</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>703</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>703</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>24,705</td> <td>&#160;</td> <td>2,707</td> <td>&#160;</td> <td>703</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>28,115</td> </tr><tr><td colspan="3"><em>Retail - UK Motor Finance</em></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>RMS 1-6</td> <td>&#160;</td> <td>0.00-4.50%</td> <td>&#160;</td> <td>12,918</td> <td>&#160;</td> <td>954</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>13,872</td> </tr><tr><td>RMS 7-9</td> <td>&#160;</td> <td>4.51-14.00%</td> <td>&#160;</td> <td>301</td> <td>&#160;</td> <td>318</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>619</td> </tr><tr><td>RMS 10</td> <td>&#160;</td> <td>14.01-20.00%</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>111</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>111</td> </tr><tr><td>RMS 11-13</td> <td>&#160;</td> <td>20.01-99.99%</td> <td>&#160;</td> <td>5</td> <td>&#160;</td> <td>197</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>202</td> </tr><tr><td>RMS 14</td> <td>&#160;</td> <td>100.00%</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>129</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>129</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>13,224</td> <td>&#160;</td> <td>1,580</td> <td>&#160;</td> <td>129</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>14,933</td> </tr><tr><td><em>Retail - other</em></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>RMS 1-6</td> <td>&#160;</td> <td>0.00-4.50%</td> <td>&#160;</td> <td>7,428</td> <td>&#160;</td> <td>473</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>7,901</td> </tr><tr><td>RMS 7-9</td> <td>&#160;</td> <td>4.51-14.00%</td> <td>&#160;</td> <td>190</td> <td>&#160;</td> <td>60</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>250</td> </tr><tr><td>RMS 10</td> <td>&#160;</td> <td>14.01-20.00%</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>7</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>7</td> </tr><tr><td>RMS 11-13</td> <td>&#160;</td> <td>20.01-99.99%</td> <td>&#160;</td> <td>211</td> <td>&#160;</td> <td>23</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>234</td> </tr><tr><td>RMS 14</td> <td>&#160;</td> <td>100.00%</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>136</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>136</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>7,829</td> <td>&#160;</td> <td>563</td> <td>&#160;</td> <td>136</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>8,528</td> </tr><tr><td>CMS 1-10</td> <td>&#160;</td> <td>0.00-0.50%</td> <td>&#160;</td> <td>1,605</td> <td>&#160;</td> <td>231</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>1,836</td> </tr><tr><td>CMS 11-14</td> <td>&#160;</td> <td>0.51-3.00%</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>6</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>6</td> </tr><tr><td>CMS 15-18</td> <td>&#160;</td> <td>3.01-20.00%</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> </tr><tr><td>CMS 19</td> <td>&#160;</td> <td>20.01-99.99%</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> </tr><tr><td>CMS 20-23</td> <td>&#160;</td> <td>100%</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>29</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>29</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>1,605</td> <td>&#160;</td> <td>237</td> <td>&#160;</td> <td>29</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>1,871</td> </tr><tr><td>Total Retail</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>305,160</td> <td>&#160;</td> <td>18,741</td> <td>&#160;</td> <td>2,390</td> <td>&#160;</td> <td>15,391</td> <td>&#160;</td> <td>341,682</td> </tr></table><strong>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS </strong>(continued)<br/> &#160;<br/><strong>20.&#160;&#160;&#160;&#160;&#160;&#160; Credit quality of loans and advances to banks and customers</strong> (continued)<br/> &#160;<br/><strong>Gross drawn exposures </strong>(continued)<br/> &#160; <table border="1"><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>At 31 December 2018</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>Purchased</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>or</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>originated</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>credit-</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>PD</td> <td>&#160;</td> <td>Stage 1</td> <td>&#160;</td> <td>Stage 2</td> <td>&#160;</td> <td>Stage 3</td> <td>&#160;</td> <td>impaired</td> <td>&#160;</td> <td>Total</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>range</td> <td>&#160;</td> <td>&#163;m</td> <td>&#160;</td> <td>&#163;m</td> <td>&#160;</td> <td>&#163;m</td> <td>&#160;</td> <td>&#163;m</td> <td>&#160;</td> <td>&#163;m&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td><em>Commercial</em></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>CMS 1-10</td> <td>&#160;</td> <td>0.00-0.50%</td> <td>&#160;</td> <td>65,089</td> <td>&#160;</td> <td>100</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>65,189</td> </tr><tr><td>CMS 11-14</td> <td>&#160;</td> <td>0.51-3.00%</td> <td>&#160;</td> <td>25,472</td> <td>&#160;</td> <td>3,450</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>28,922</td> </tr><tr><td>CMS 15-18</td> <td>&#160;</td> <td>3.01-20.00%</td> <td>&#160;</td> <td>1,441</td> <td>&#160;</td> <td>2,988</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>4,429</td> </tr><tr><td>CMS 19</td> <td>&#160;</td> <td>20.01-99.99%</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>54</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>54</td> </tr><tr><td>CMS 20-23</td> <td>&#160;</td> <td>100%</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>3,230</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>3,230</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>92,002</td> <td>&#160;</td> <td>6,592</td> <td>&#160;</td> <td>3,230</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>101,824</td> </tr><tr><td><em>Other</em></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>RMS 1-6</td> <td>&#160;</td> <td>0.00-4.50%</td> <td>&#160;</td> <td>804</td> <td>&#160;</td> <td>6</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>810</td> </tr><tr><td>RMS 7-9</td> <td>&#160;</td> <td>4.51-14.00%</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> </tr><tr><td>RMS 10</td> <td>&#160;</td> <td>14.01-20.00%</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> </tr><tr><td>RMS 11-13</td> <td>&#160;</td> <td>20.01-99.99%</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> </tr><tr><td>RMS 14</td> <td>&#160;</td> <td>100.00%</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>55</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>55</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>804</td> <td>&#160;</td> <td>6</td> <td>&#160;</td> <td>55</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>865</td> </tr><tr><td>CMS 1-10</td> <td>&#160;</td> <td>0.00-0.50%</td> <td>&#160;</td> <td>43,565</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>43,565</td> </tr><tr><td>CMS 11-14</td> <td>&#160;</td> <td>0.51-3.00%</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>6</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>6</td> </tr><tr><td>CMS 15-18</td> <td>&#160;</td> <td>3.01-20.00%</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> </tr><tr><td>CMS 19</td> <td>&#160;</td> <td>20.01-99.99%</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> </tr><tr><td>CMS 20-23</td> <td>&#160;</td> <td>100%</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>66</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>66</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>43,565</td> <td>&#160;</td> <td>6</td> <td>&#160;</td> <td>66</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>43,637</td> </tr><tr><td colspan="3">Total loans and advances to customers</td> <td>&#160;</td> <td>441,531</td> <td>&#160;</td> <td>25,345</td> <td>&#160;</td> <td>5,741</td> <td>&#160;</td> <td>15,391</td> <td>&#160;</td> <td>488,008</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td><em>In respect of:</em></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Retail</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>305,160</td> <td>&#160;</td> <td>18,741</td> <td>&#160;</td> <td>2,390</td> <td>&#160;</td> <td>15,391</td> <td>&#160;</td> <td>341,682</td> </tr><tr><td>Commercial</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>92,002</td> <td>&#160;</td> <td>6,592</td> <td>&#160;</td> <td>3,230</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>101,824</td> </tr><tr><td>Other</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>44,369</td> <td>&#160;</td> <td>12</td> <td>&#160;</td> <td>121</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>44,502</td> </tr><tr><td colspan="3">Total loans and advances to customers</td> <td>&#160;</td> <td>441,531</td> <td>&#160;</td> <td>25,345</td> <td>&#160;</td> <td>5,741</td> <td>&#160;</td> <td>15,391</td> <td>&#160;</td> <td>488,008</td> </tr></table> &#160;<br/><br/> &#160;<br/><strong>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS </strong>(continued)<br/> &#160;<br/><strong>20.&#160;&#160;&#160;&#160;&#160;&#160; Credit quality of loans and advances to banks and customers</strong> (continued)<br/> &#160;<br/><strong>Expected credit losses</strong><br/> &#160; <table border="1"><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>At 31 December 2018</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>Purchased</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>or</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>originated</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>credit-</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>PD</td> <td>&#160;</td> <td>Stage 1</td> <td>&#160;</td> <td>Stage 2</td> <td>&#160;</td> <td>Stage 3</td> <td>&#160;</td> <td>impaired</td> <td>&#160;</td> <td>Total</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>range</td> <td>&#160;</td> <td>&#163;m</td> <td>&#160;</td> <td>&#163;m</td> <td>&#160;</td> <td>&#163;m</td> <td>&#160;</td> <td>&#163;m</td> <td>&#160;</td> <td>&#163;m&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td colspan="3">Loans and advances to banks:</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>CMS 1-10</td> <td>&#160;</td> <td>0.00-0.50%</td> <td>&#160;</td> <td>2</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>2</td> </tr><tr><td>CMS 11-14</td> <td>&#160;</td> <td>0.51-3.00%</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> </tr><tr><td>CMS 15-18</td> <td>&#160;</td> <td>3.01-20.00%</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> </tr><tr><td>CMS 19</td> <td>&#160;</td> <td>20.01-99.99%</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> </tr><tr><td>CMS 20-23</td> <td>&#160;</td> <td>100%</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>2</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>2</td> </tr><tr><td colspan="3">Loans and advances to customers:</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td colspan="3"><em>Retail - mortgages</em></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>RMS 1-6</td> <td>&#160;</td> <td>0.00-4.50%</td> <td>&#160;</td> <td>37</td> <td>&#160;</td> <td>141</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>178</td> </tr><tr><td>RMS 7-9</td> <td>&#160;</td> <td>4.51-14.00%</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>34</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>34</td> </tr><tr><td>RMS 10</td> <td>&#160;</td> <td>14.01-20.00%</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>9</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>9</td> </tr><tr><td>RMS 11-13</td> <td>&#160;</td> <td>20.01-99.99%</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>42</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>42</td> </tr><tr><td>RMS 14</td> <td>&#160;</td> <td>100.00%</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>118</td> <td>&#160;</td> <td>78</td> <td>&#160;</td> <td>196</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>37</td> <td>&#160;</td> <td>226</td> <td>&#160;</td> <td>118</td> <td>&#160;</td> <td>78</td> <td>&#160;</td> <td>459</td> </tr><tr><td><em>Retail - unsecured</em></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>RMS 1-6</td> <td>&#160;</td> <td>0.00-4.50%</td> <td>&#160;</td> <td>135</td> <td>&#160;</td> <td>45</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>180</td> </tr><tr><td>RMS 7-9</td> <td>&#160;</td> <td>4.51-14.00%</td> <td>&#160;</td> <td>57</td> <td>&#160;</td> <td>83</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>140</td> </tr><tr><td>RMS 10</td> <td>&#160;</td> <td>14.01-20.00%</td> <td>&#160;</td> <td>4</td> <td>&#160;</td> <td>29</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>33</td> </tr><tr><td>RMS 11-13</td> <td>&#160;</td> <td>20.01-99.99%</td> <td>&#160;</td> <td>3</td> <td>&#160;</td> <td>172</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>175</td> </tr><tr><td>RMS 14</td> <td>&#160;</td> <td>100.00%</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>228</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>228</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>199</td> <td>&#160;</td> <td>329</td> <td>&#160;</td> <td>228</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>756</td> </tr><tr><td colspan="3"><em>Retail - 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</tr><tr><td>RMS 14</td> <td>&#160;</td> <td>100.00%</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>78</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>78</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>121</td> <td>&#160;</td> <td>79</td> <td>&#160;</td> <td>78</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>278</td> </tr><tr><td><em>Retail - other</em></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>RMS 1-6</td> <td>&#160;</td> <td>0.00-4.50%</td> <td>&#160;</td> <td>10</td> <td>&#160;</td> <td>8</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>18</td> </tr><tr><td>RMS 7-9</td> <td>&#160;</td> <td>4.51-14.00%</td> <td>&#160;</td> <td>2</td> <td>&#160;</td> <td>2</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>4</td> </tr><tr><td>RMS 10</td> <td>&#160;</td> <td>14.01-20.00%</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> </tr><tr><td>RMS 11-13</td> <td>&#160;</td> <td>20.01-99.99%</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>1</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>1</td> </tr><tr><td>RMS 14</td> <td>&#160;</td> <td>100.00%</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>53</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>53</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>12</td> <td>&#160;</td> <td>11</td> <td>&#160;</td> <td>53</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>76</td> </tr><tr><td>CMS 1-10</td> <td>&#160;</td> <td>0.00-0.50%</td> <td>&#160;</td> <td>20</td> <td>&#160;</td> <td>17</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>37</td> </tr><tr><td>CMS 11-14</td> <td>&#160;</td> <td>0.51-3.00%</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> </tr><tr><td>CMS 15-18</td> <td>&#160;</td> <td>3.01-20.00%</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> </tr><tr><td>CMS 19</td> <td>&#160;</td> <td>20.01-99.99%</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> </tr><tr><td>CMS 20-23</td> <td>&#160;</td> <td>100%</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>7</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>7</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>20</td> <td>&#160;</td> <td>17</td> <td>&#160;</td> <td>7</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>44</td> </tr><tr><td>Total Retail</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>389</td> <td>&#160;</td> <td>662</td> <td>&#160;</td> <td>484</td> <td>&#160;</td> <td>78</td> <td>&#160;</td> <td>1,613</td> </tr></table><strong>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS </strong>(continued)<br/> &#160;<br/><strong>20.&#160;&#160;&#160;&#160;&#160;&#160; Credit quality of loans and advances to banks and customers</strong> (continued)<br/> &#160;<br/><strong>Expected credit losses </strong>(continued)<br/> &#160; <table border="1"><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>At 31 December 2018</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>Purchased</td> <td>&#160;</td> <td>&#160;</td> 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<td>&#160;</td> <td>&#163;m</td> <td>&#160;</td> <td>&#163;m</td> <td>&#160;</td> <td>&#163;m&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td><em>Commercial</em></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>CMS 1-10</td> <td>&#160;</td> <td>0.00-0.50%</td> <td>&#160;</td> <td>32</td> <td>&#160;</td> <td>1</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>33</td> </tr><tr><td>CMS 11-14</td> <td>&#160;</td> <td>0.51-3.00%</td> <td>&#160;</td> <td>50</td> <td>&#160;</td> <td>86</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>136</td> </tr><tr><td>CMS 15-18</td> <td>&#160;</td> <td>3.01-20.00%</td> <td>&#160;</td> <td>11</td> <td>&#160;</td> <td>231</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>242</td> </tr><tr><td>CMS 19</td> <td>&#160;</td> <td>20.01-99.99%</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>7</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>7</td> </tr><tr><td>CMS 20-23</td> <td>&#160;</td> <td>100%</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>1,031</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>1,031</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>93</td> <td>&#160;</td> <td>325</td> <td>&#160;</td> <td>1,031</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>1,449</td> </tr><tr><td><em>Other</em></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>RMS 1-6</td> <td>&#160;</td> <td>0.00-4.50%</td> <td>&#160;</td> <td>43</td> <td>&#160;</td> <td>1</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>44</td> </tr><tr><td>RMS 7-9</td> <td>&#160;</td> <td>4.51-14.00%</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> </tr><tr><td>RMS 10</td> <td>&#160;</td> <td>14.01-20.00%</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> </tr><tr><td>RMS 11-13</td> <td>&#160;</td> <td>20.01-99.99%</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> </tr><tr><td>RMS 14</td> <td>&#160;</td> <td>100.00%</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>11</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>11</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>43</td> <td>&#160;</td> <td>1</td> <td>&#160;</td> <td>11</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>55</td> </tr><tr><td>CMS 1-10</td> <td>&#160;</td> <td>0.00-0.50%</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> </tr><tr><td>CMS 11-14</td> <td>&#160;</td> <td>0.51-3.00%</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>6</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>6</td> </tr><tr><td>CMS 15-18</td> <td>&#160;</td> <td>3.01-20.00%</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> </tr><tr><td>CMS 19</td> <td>&#160;</td> <td>20.01-99.99%</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> </tr><tr><td>CMS 20-23</td> <td>&#160;</td> <td>100%</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>27</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>27</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>6</td> <td>&#160;</td> <td>27</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>33</td> </tr><tr><td colspan="3">Total loans and advances to customers</td> <td>&#160;</td> <td>525</td> <td>&#160;</td> <td>994</td> <td>&#160;</td> <td>1,553</td> <td>&#160;</td> <td>78</td> <td>&#160;</td> <td>3,150</td> </tr><tr><td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td><em>In respect of:</em></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr><tr><td>Retail</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>389</td> <td>&#160;</td> <td>662</td> <td>&#160;</td> <td>484</td> <td>&#160;</td> <td>78</td> <td>&#160;</td> <td>1,613</td> </tr><tr><td>Commercial</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>93</td> <td>&#160;</td> <td>325</td> <td>&#160;</td> <td>1,031</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>1,449</td> </tr><tr><td>Other</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>43</td> <td>&#160;</td> <td>7</td> <td>&#160;</td> <td>38</td> <td>&#160;</td> <td>-</td> <td>&#160;</td> <td>88</td> </tr><tr><td colspan="3">Total loans and advances to customers</td> <td>&#160;</td> <td>525</td> <td>&#160;</td> <td>994</td> <td>&#160;</td> <td>1,553</td> <td>&#160;</td> <td>78</td> <td>&#160;</td> <td>3,150</td> </tr></table> &#160;<br/><br/> &#160;<br/><strong>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS </strong>(continued)<br/> &#160;<br/><strong>21.&#160;&#160;&#160;&#160;&#160;&#160; Dividends on ordinary shares<a/></strong><br/> &#160;<br/> On 21 May 2019, a final dividend in respect of 2018 of 2.14 pence per share, totalling &#163;1,523 million was paid to shareholders. An interim dividend for 2019 of 1.12&#160;pence per ordinary share (half-year to 30&#160;June 2018: 1.07&#160;pence) will be paid on 13&#160;September 2019. The total amount of this dividend is &#163;789&#160;million (half-year to 30&#160;June 2018: &#163;765&#160;million).<br/> &#160;<br/><strong>22.&#160;&#160;&#160;&#160;&#160;&#160; Implementation of IFRS 16</strong><br/> &#160;<br/> The Group adopted IFRS 16 Leases from 1 January 2019 and elected to apply the standard retrospectively with the cumulative effect of initial application being recognised at that date; comparative information has therefore not been restated.<br/> &#160;<br/> Lease liabilities amounting to &#163;1,813 million in respect of leased properties previously accounted for as operating leases were recognised at 1 January 2019. These liabilities were measured at the present value of the remaining lease payments, discounted using the Group&apos;s incremental borrowing rate as at that date, adjusted to exclude short-term leases and leases of low-value assets. The weighted-average borrowing rate applied to these lease liabilities was 2.43&#160;per cent in the UK, where the majority of the obligations arise, and 5.10 per cent in the US. The corresponding right-of-use asset of &#163;1,716 million was measured at an amount equal to the lease liabilities, adjusted for lease liabilities recognised at 31 December 2018 of &#163;97&#160;million. The right-of-use asset and lease liabilities are included within Property, plant and equipment and Other liabilities respectively. There was no impact on shareholders&apos; equity.<br/> &#160;<br/> In applying IFRS 16 for the first time, the Group has used a number of practical expedients permitted by the standard; the most significant of which were the use of a single discount rate to a portfolio of leases with reasonably similar characteristics; reliance on previous assessments of whether a lease is onerous; and the use of hindsight in determining the lease term where the contract contains options to extend or terminate the lease. The Group has also elected not to apply IFRS 16 to contracts that were not identified as containing a lease under IAS 17 and IFRIC 4 <em>Determining whether an Arrangement contains a Lease</em>.<br/> &#160;<br/> &#160;<br/> &#160;<br/><br/> &#160;<br/><strong>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS </strong>(continued)<br/> &#160;<br/><strong>23.&#160;&#160;&#160;&#160;&#160;&#160; Future accounting developments<a/></strong><br/> &#160;<br/> The following pronouncements are not applicable for the year ending 31 December 2019 and have not been applied in preparing these interim financial statements. Save as disclosed below, the impact of these accounting changes is still being assessed by the Group and reliable estimates cannot be made at this stage.<br/> &#160;<br/> IFRS 17 <em>Insurance Contracts</em> and certain minor amendments to other accounting standards have not been endorsed by the EU as at 30 July 2019.<br/> &#160;<br/><strong>IFRS 17 Insurance Contracts</strong><br/> IFRS 17 replaces IFRS 4 <em>Insurance Contracts</em> and is currently effective for annual periods beginning on or after 1&#160;January 2021 although the International Accounting Standards Board has proposed delaying implementation until 1&#160;January 2022.<br/> &#160;<br/> IFRS 17 requires insurance contracts and participating investment contracts to be measured on the balance sheet as the total of the fulfilment cash flows and the contractual service margin. Changes to estimates of future cash flows from one reporting date to another are recognised either as an amount in profit or loss or as an adjustment to the expected profit for providing insurance coverage, depending on the type of change and the reason for it. The effects of some changes in discount rates can either be recognised in profit or loss or in other comprehensive income as an accounting policy choice. The risk adjustment is released to profit and loss as an insurer&apos;s risk reduces. Profits which are currently recognised through a value-in-force asset will no longer be recognised at inception of an insurance contract. Instead, the expected profit for providing insurance coverage is recognised in profit or loss over time as the insurance coverage is provided.<br/> &#160;<br/> The Group&apos;s IFRS 17 project is progressing to plan.&#160; Work has focused on interpreting the requirements of the standard to support the development of future accounting policy and methodology, and to help understand the financial and reporting impacts of IFRS 17. Further, build of the Group&apos;s data warehousing and actuarial liability calculation processes has progressed to enable readiness for reporting to required pace and granularity when IFRS 17 is implemented. The updated IFRS 17 Exposure Draft was published by the IASB on 26 June 2019, and the Group is currently assessing the implications of changes proposed.<br/> &#160;<br/><strong>Minor amendments to other accounting standards</strong><br/> The IASB has issued a number of minor amendments to IFRSs effective 1 January 2020 (including IFRS 3 <em>Business Combinations</em> and IAS 1 <em>Presentation of Financial Statements</em>). These amendments are not expected to have a significant impact on the Group.<br/> &#160;<br/><strong>24.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Other information<a/></strong><br/> &#160;<br/> The financial information included in these condensed consolidated financial statements does not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006. Statutory accounts for the year ended 31&#160;December 2018 were approved by the directors on 19&#160;February 2019 and were delivered to the Registrar of Companies on 31 May 2019. The auditors&apos; report on those accounts was unqualified and did not include a statement under sections&#160;498(2) (accounting records or returns inadequate or accounts not agreeing with records and returns) or 498(3) (failure to obtain necessary information and explanations) of the Companies Act 2006.<br/><br/> &#160;<br/><strong>STATEMENT OF DIRECTORS&apos; RESPONSIBILITIES</strong><br/> &#160;<br/> The directors listed below (being all the directors of Lloyds&#160;Banking Group plc) confirm that to the best of their knowledge these condensed consolidated half-year financial statements have been prepared in accordance with International Accounting Standard 34, <em>Interim Financial Reporting</em>, as adopted by the European Union, and that the half-year management report herein includes a fair review of the information required by DTR 4.2.7R and DTR 4.2.8R, namely: <ul><li>an indication of important events that have occurred during the six months ended 30&#160;June 2019 and their impact on the condensed consolidated half-year financial statements, and a description of the principal risks and uncertainties for the remaining six months of the financial year; and</li> <li>material related party transactions in the six months ended 30&#160;June 2019 and any material changes in the related party transactions described in the last annual report.</li> </ul> &#160;<br/> Signed on behalf of the Board by<br/> &#160;<br/> &#160;<br/> &#160;<br/> &#160;<br/> &#160;<br/> Ant&#243;nio Horta-Os&#243;rio<br/> Group Chief Executive<br/> 30&#160;July 2019<br/> &#160;<br/> Lloyds&#160;Banking Group plc Board of directors:<br/> &#160;<br/><strong>Executive directors:</strong><br/> Ant&#243;nio Horta-Os&#243;rio (Group Chief Executive)<br/> George Culmer (Chief Financial Officer)<br/> Juan Colomb&#225;s (Chief Operating Officer)<br/> &#160;<br/><strong>Non-executive directors:</strong><br/> Lord Blackwell (Chairman)<br/> Anita Frew (Deputy Chairman and Senior Independent Director)<br/> Alan Dickinson<br/> Simon Henry<br/> Lord Lupton CBE<br/> Amanda Mackenzie OBE<br/> Nicholas Prettejohn<br/> Stuart Sinclair<br/> Sara Weller CBE<br/><br/> &#160;<br/><strong>INDEPENDENT REVIEW REPORT TO LLOYDS BANKING GROUP PLC</strong><br/> &#160;<br/><strong>Report on the condensed consolidated half-year financial statements</strong><br/> &#160;<br/><strong><em>Our conclusion</em></strong><br/> We have reviewed Lloyds Banking Group plc&apos;s condensed consolidated half-year financial statements (the &apos;interim financial statements&apos;) in the 2019 Half-Year Results of Lloyds Banking Group plc (the &apos;Company&apos;) for the six month period ended 30&#160;June 2019. Based on our review, nothing has come to our attention that causes us to believe that the interim financial statements are not prepared, in all material respects, in accordance with International Accounting Standard 34, &apos;Interim Financial Reporting&apos;, as adopted by the European Union and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom&apos;s Financial Conduct Authority.<br/> &#160;<br/><strong><em>What we have reviewed</em></strong><br/> The interim financial statements comprise: <ul><li>the consolidated balance sheet as at 30 June 2019;</li> <li>the consolidated income statement and consolidated statement of comprehensive income for the period then ended;</li> <li>the consolidated cash flow statement for the period then ended;</li> <li>the consolidated statement of changes in equity for the period then ended; and</li> <li>the explanatory notes to the interim financial statements</li> </ul> &#160;<br/> The interim financial statements included in the 2019 Half-Year Results have been prepared in accordance with International Accounting Standard 34, &apos;Interim Financial Reporting&apos;, as adopted by the European Union and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom&apos;s Financial Conduct Authority.<br/> &#160;<br/> As disclosed in note 1 to the interim financial statements, the financial reporting framework that has been applied in the preparation of the full annual financial statements of the Group is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the European Union.<br/> &#160;<br/><strong>Responsibilities for the interim financial statements and the review</strong><br/> &#160;<br/><a><strong><em>Our responsibilities and those of the directors</em></strong></a><br/> The 2019 Half-Year Results, including the interim financial statements, is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the 2019 Half-Year Results in accordance with the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom&apos;s Financial Conduct Authority.<br/> &#160;<br/> Our responsibility is to express a conclusion on the interim financial statements in the 2019 Half-Year Results based on our review. This report, including the conclusion, has been prepared for and only for the Company for the purpose of complying with the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom&apos;s Financial Conduct Authority and for no other purpose.&#160; We do not, in giving this conclusion, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.<br/> &#160;<br/><br/> &#160;<br/><strong>INDEPENDENT REVIEW REPORT TO LLOYDS BANKING GROUP PLC </strong>(continued)<br/> &#160;<br/><strong><em>What a review of interim financial statements involves</em></strong><br/> We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, &apos;Review of Interim Financial Information Performed by the Independent Auditor of the Entity&apos; issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures.<br/> &#160;<br/> A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.<br/> We have read the other information contained in the 2019 Half-Year Results and considered whether it contains any apparent misstatements or material inconsistencies with the information in the interim financial statements.<br/> &#160;<br/> &#160;<br/> &#160;<br/> &#160;<br/> &#160;<br/> PricewaterhouseCoopers LLP<br/> Chartered Accountants<br/> London<br/> 30&#160;July 2019<br/> &#160;<br/> &#160;<br/><br/> &#160;<br/><strong>Summary of alternative performance measure<a/>s</strong><br/> &#160;<br/> The Group calculates a number of metrics that are used throughout the banking and insurance industries on an underlying basis. A description of these measures and their calculation is set out below.<br/> &#160; <table border="1"><tr><td>&#160;</td> <td>&#160;</td> </tr><tr><td>Asset quality ratio</td> <td>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</td> </tr><tr><td>Banking net interest margin</td> <td>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</td> </tr><tr><td>Business as usual costs</td> <td>Operating costs, less investment expensed and depreciation</td> </tr><tr><td>Cost:income ratio</td> <td>Total costs as a percentage of net income calculated on an underlying basis</td> </tr><tr><td>Gross asset quality ratio</td> <td>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</td> </tr><tr><td>Loan to deposit ratio</td> <td>Loans and advances to customers net of allowance for impairment losses and excluding reverse repurchase agreements divided by customer deposits excluding repurchase agreements</td> </tr><tr><td>Jaws</td> <td>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</td> </tr><tr><td>Present value of new business premium</td> <td>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</td> </tr><tr><td>Return on<br/> risk-weighted assets</td> <td>Underlying profit before tax divided by average risk-weighted assets</td> </tr><tr><td>Return on tangible equity</td> <td>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</td> </tr><tr><td>Tangible net assets per share</td> <td>Net assets excluding intangible assets such as goodwill and acquisition-related intangibles divided by the weighted average number of ordinary shares in issue</td> </tr><tr><td>Underlying, &apos;or above the line&apos; profit</td> <td>Statutory profit adjusted for certain items as detailed in the Basis of Presentation</td> </tr><tr><td>Underlying return on tangible equity</td> <td>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</td> </tr></table><div>&#160;</div> &#160;<br/> &#160;<br/><strong>KEY DATES FOR THE PAYMENT OF THE DIVIDENDS</strong><br/> &#160; <table border="0"><tr><td>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</td> <td>&#160;</td> </tr><tr><td>Shares quoted ex-dividend</td> <td>8 August 2019&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> </tr><tr><td>Record date</td> <td>9 August 2019&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> </tr><tr><td>Final date for joining or leaving the dividend reinvestment plan</td> <td>23 August 2019&#160;</td> </tr><tr><td>&#160;</td> <td>&#160;</td> </tr><tr><td>Interim dividend paid</td> <td>13 September 2019&#160;</td> </tr></table> &#160;<br/> &#160;<br/><br/> &#160;<br/><strong>CONTACTS<a/></strong><br/> &#160;<br/> &#160;<br/> For further information please contact:<br/> &#160;<br/><strong>INVESTORS AND ANALYSTS</strong><br/> Douglas Radcliffe<br/> Group Investor Relations Director<br/> 020 7356 1571<br/> douglas.radcliffe@lloydsbanking.com<br/> &#160;<br/> Edward Sands<br/> Director of Investor Relations<br/> 020 7356 1585<br/> edward.sands@lloydsbanking.com<br/> &#160;<br/> Nora Thoden<br/> Director of Investor Relations<br/> 020 7356 2334<br/> nora.thoden@lloydsbanking.com<br/> &#160;<br/> &#160;<br/><strong>CORPORATE AFFAIRS</strong><br/> Grant Ringshaw<br/> Director of Media Relations<br/> 020 7356 2362<br/> grant.ringshaw@lloydsbanking.com<br/> &#160;<br/> Matt Smith<br/> Head of Corporate Media<br/> 020 7356 3522<br/> matt.smith@lloydsbanking.com<br/> &#160;<br/> &#160;<br/> &#160;<br/> &#160;<br/> &#160;<br/> &#160;<br/> &#160;<br/> &#160;<br/> &#160;<br/> &#160;<br/> &#160;<br/> &#160;<br/> &#160;<br/> &#160;<br/> Copies of this news release may be obtained from:<br/> Investor Relations, Lloyds Banking Group plc, 25&#160;Gresham&#160;Street, London EC2V 7HN<br/> The statement can also be found on the Group&apos;s website - www.lloydsbankinggroup.com<br/> &#160;<br/> Registered office: Lloyds Banking Group plc, The Mound, Edinburgh, EH1 1YZ<br/> Registered in Scotland No. 95000<br/> &#160;<br/> &#160;<br/> &#160;<br/> This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact&#160;<a href="mailto:rns@lseg.com">rns@lseg.com</a>&#160;or visit&#160;<a href="https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&amp;url=045b54e0f10227971bc659c2b6137e6c&amp;application_id=849257&amp;site_id=acquiremedia_html&amp;application_name=news">www.rns.com</a>.</div> <br/><hr/><p> 31.07.2019 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.<br/>The issuer is solely responsible for the content of this announcement.<br/><br/>The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. <br/>Archive at www.dgap.de<br/></p> <hr/></td> </tr></table><table><tr><td align="left" valign="top">Language:</td> <td align="left" valign="top">English</td> </tr><tr><td align="left" valign="top">Company:</td> <td align="left" valign="top">Lloyds Banking Group</td> </tr><tr><td align="left" valign="top"/> <td align="left" valign="top">Gresham Street</td> </tr><tr><td align="left" valign="top"/> <td align="left" valign="top">EC2V 7HN London</td> </tr><tr><td align="left" valign="top"/> <td align="left" valign="top">United Kingdom</td> </tr><tr><td align="left" valign="top">Phone:</td> <td align="left" valign="top">020 7626 1500</td> </tr><tr><td align="left" valign="top">Internet:</td> <td align="left" valign="top">www.lloydsbankinggroup.com</td> </tr><tr><td align="left" valign="top">ISIN:</td> <td align="left" valign="top">GB0008706128</td> </tr><tr><td align="left" valign="top">WKN:</td> <td align="left" valign="top">871784 </td> </tr><tr><td align="left" valign="top">Listed:</td> <td align="left" valign="top">Regulated Unofficial Market in Berlin, Dusseldorf, Frankfurt, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange; London, BX, SIX</td> </tr><tr><td align="left" valign="top">EQS News ID:</td> <td align="left" valign="top">849257</td> </tr></table><br/><table border="0"><tr><td align="left" valign="top" colspan="2"/> </tr></table><table border="0"><tr><td align="left" valign="top" colspan="2">&#160;</td> </tr><tr><td align="left" valign="top">End of News</td> <td align="left" valign="top">DGAP News Service</td> </tr></table><table border="0"><tr><td> <hr/></td> </tr></table><p> 849257&#160;&#160;31.07.2019&#160; </p> <img src="https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=show_t_gif&amp;application_id=849257&amp;application_name=news&amp;site_id=acquiremedia_html" alt="fncls.ssp?fn=show_t_gif&amp;application_id=849257&amp;application_name=news&amp;site_id=acquiremedia_html" width="0" height="0" border="0"/></body></html>
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