11 Financial assets - impairments
The following table shows the movement in the provision for impairment losses on loans and advances.
|
|
|
Group |
||||||||
|
|
|
Individually |
|
Collectively |
|
|
|
|
|
|
|
|
|
assessed |
|
assessed |
|
Latent |
|
2017 |
|
2016 |
|
|
|
£m |
|
£m |
|
£m |
|
£m |
|
£m |
|
At 1 January |
|
249 |
|
1,127 |
|
187 |
|
1,563 |
|
5,335 |
|
Transfers to disposal groups |
|
— |
|
— |
|
— |
|
— |
|
(1,200) |
|
Transfers from fellow subsidiaries |
|
37 |
|
49 |
|
14 |
|
100 |
|
— |
|
Currency translation and other adjustments |
|
(3) |
|
3 |
|
— |
|
— |
|
368 |
|
Amounts written-off |
|
(100) |
|
(477) |
|
— |
|
(577) |
|
(2,946) |
|
Recoveries of amounts previously written-off |
|
7 |
|
66 |
|
— |
|
73 |
|
61 |
|
Charge/(release) to income statement |
|
|
|
|
|
|
|
|
|
|
|
- from continuing operations |
|
99 |
|
203 |
|
9 |
|
311 |
|
125 |
|
- from discontinued operations |
|
— |
|
— |
|
— |
|
— |
|
(106) |
|
Unwind of discount (recognised in interest income) |
|
|
|
|
|
|
|
|
|
|
|
- from continuing operations |
|
(4) |
|
(27) |
|
— |
|
(31) |
|
(37) |
|
- from discontinued operations |
|
— |
|
— |
|
— |
|
— |
|
(37) |
|
|
|
|
|
|
|
|
|
|
|
|
|
At 31 December |
|
285 |
|
944 |
|
210 |
|
1,439 |
|
1,563 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank |
||||||||
|
|
|
Individually |
|
Collectively |
|
|
|
|
|
|
|
|
|
assessed |
|
assessed |
|
Latent |
|
2017 |
|
2016 |
|
|
|
£m |
|
£m |
|
£m |
|
£m |
|
£m |
|
At 1 January |
|
201 |
|
1,004 |
|
167 |
|
1,372 |
|
1,692 |
|
Currency translation and other adjustments |
|
(2) |
|
4 |
|
— |
|
2 |
|
2 |
|
Amounts written-off |
|
(77) |
|
(431) |
|
— |
|
(508) |
|
(468) |
|
Recoveries of amounts previously written-off |
|
4 |
|
63 |
|
— |
|
67 |
|
26 |
|
Charge/(release) to income statement |
|
59 |
|
187 |
|
9 |
|
255 |
|
155 |
|
Unwind of discount (recognised in interest income) |
|
(3) |
|
(26) |
|
— |
|
(29) |
|
(35) |
|
|
|
|
|
|
|
|
|
|
|
|
|
At 31 December |
|
182 |
|
801 |
|
176 |
|
1,159 |
|
1,372 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Group |
||||
|
Impairment charge/(release) to the income statement |
|
2017 |
|
2016 |
|
2015 |
|
|
£m |
|
£m |
|
£m |
|
|
Loans and advances to customers |
|
311 |
|
125 |
|
(54) |
|
|
|
|
|
|
|
|
|
Charge/(release) to the income statement for continuing operations |
|
311 |
|
125 |
|
(54) |
|
|
|
|
|
|
|
|
There was no release to the income statement in relation to discontinued operations (2016 - £106 million: 2015 - £675 million)
|
|
|
Group |
||||
|
|
|
2017 |
|
2016 |
|
2015 |
|
|
|
£m |
|
£m |
|
£m |
|
Gross income not recognised but which would have been recognised under the original terms of the impaired loans |
|
|
|
|
|
|
|
Domestic |
|
145 |
|
161 |
|
202 |
|
Foreign |
|
1 |
|
1 |
|
1 |
|
|
|
|
|
|
|
|
|
Total |
|
146 |
|
162 |
|
203 |
|
|
|
|
|
|
|
|
The gross income not recognised but which would have been recognised under the original terms of the impaired loans within discontinued operations nil (2016 - £68 million: 2015 - £59 million).
|
|
|
Group |
||||
|
|
|
2017 |
|
2016 |
|
2015 |
|
|
|
£m |
|
£m |
|
£m |
|
Interest on impaired loans included in net interest income |
|
|
|
|
|
|
|
Domestic |
|
31 |
|
38 |
|
51 |
|
|
|
|
|
|
|
|
|
Total |
|
31 |
|
38 |
|
51 |
|
|
|
|
|
|
|
|
Interest on impaired loans included in net interest income for discontinued operations nil (2016 - £37 million: 2015 - £46 million)
The following tables analyse impaired financial assets.
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|
|
Group |
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|
|
|
2017 |
|
2016 |
||||||||
|
|
|
|
|
|
|
Carrying |
|
|
|
|
|
Carrying |
|
|
|
Cost |
|
Provision |
|
value |
|
Cost |
|
Provision |
|
value |
|
|
|
£m |
|
£m |
|
£m |
|
£m |
|
£m |
|
£m |
|
Loans and receivables |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and advances to customers (1) |
|
1,798 |
|
1,229 |
|
569 |
|
1,961 |
|
1,376 |
|
585 |
|
|
|
Group |
||
|
|
|
Carrying |
|
Carrying |
|
|
|
value |
|
value |
|
|
|
2017 |
|
2016 |
|
|
|
£m |
|
£m |
|
Available-for-sale securities |
|
|
|
|
|
Equity shares |
|
1 |
|
1 |
|
|
|
Bank |
||||||||||
|
|
|
2017 |
|
2016 |
||||||||
|
|
|
|
|
|
|
Carrying |
|
|
|
|
|
Carrying |
|
|
|
Cost |
|
Provision |
|
value |
|
Cost |
|
Provision |
|
value |
|
|
|
£m |
|
£m |
|
£m |
|
£m |
|
£m |
|
£m |
|
Loans and receivables |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and advances to customers (2) |
|
1,325 |
|
983 |
|
342 |
|
1,689 |
|
1,205 |
|
484 |
Notes:
|
(1) |
Impairment provisions individually assessed on balances of £951 million (2016 - £535 million). |
|
(2) |
Impairment provisions individually assessed on balances of £647 million (2016 - £425 million). |
Financial and non-financial assets recognised on the balance sheet, obtained during the year by taking possession of collateral or calling on other credit enhancements, were £20 million (2016 - £21 million) for the Group and £20 million (2016 - £21 million) for the Bank.
In general, the Group seeks to dispose of property and other assets not readily convertible into cash, obtained by taking possession of collateral, as rapidly as the market for the individual asset permits.