REG - Royal Bk Scot.Grp. - Half-year Report <Origin Href="QuoteRef">RBS.L</Origin> - Part 7
04/08/2017 07:08
- Part 7: For the preceding part double click ID:nRSD0890Nf
(448) (392)
Net fees and commissions 1,218 1,284
Foreign exchange 228 570
Interest rate 652 (628)
Credit 58 (181)
Own credit adjustments (73) 250
Other 19 (28)
Income from trading activities 884 (17)
Loss on redemption of own debt (7) (130)
Operating lease and other rental income 142 139
Changes in the fair value of own debt designated as at fair value through profit or loss
attributable to own credit risk - 200
Other changes in the fair value of financial assets and liabilities designated as at fair
value through profit or loss and related derivatives 41 (90)
Changes in fair value of investment properties (10) (9)
Profit on sale of securities 33 34
Profit on sale of property plant equipment 3 18
Profit on sale of subsidiaries and associates 206 224
Loss on disposal or settlement loans and receivables (150) (14)
Share of profits of associated undertakings 60 68
Other income 27 24
Other operating income 352 594
Total non-interest income 2,447 1,731
Total income 6,919 6,064
Notes
2. Analysis of income, expenses and impairment losses
Half year ended
30 June 30 June
2017 2016
£m £m
Staff costs (2,447) (2,695)
Premises and equipment (678) (652)
Other (1) (1,208) (2,139)
Administrative expenses (4,333) (5,486)
Depreciation and amortisation (511) (354)
Write down of other intangible assets (8) (89)
Operating expenses (4,852) (5,929)
Loan impairment losses (152) (412)
Securities 36 3
Impairment losses (116) (409)
Note:
(1) Includes costs relating to customer redress, residential mortgage back securities, litigation and other regulatory - refer to Note 3 for further details.
3. Provisions for liabilities and charges
Payment Other Residential Litigation
protection customer mortgage and other
insurance redress (1) backed securities regulatory Other (2) Total
£m £m £m £m £m £m
At 1 January 2017 1,253 1,105 6,752 1,918 1,808 12,836
Currency translation and other movements - (1) (114) (13) 10 (118)
Charge to income statement - - - 32 204 236
Releases to income statement - (2) - (3) (39) (44)
Provisions utilised (78) (99) - (950) (164) (1,291)
At 31 March 2017 1,175 1,003 6,638 984 1,819 11,619
Currency translation and other movements - 5 (237) (17) 38 (211)
Charge to income statement - 55 222 59 371 707
Releases to income statement - (38) - (4) (96) (138)
Provisions utilised (81) (114) (44) (113) (398) (750)
At 30 June 2017 1,094 911 6,579 909 1,734 11,227
Note:
(1) Closing provision primarily relates to investment advice and packaged accounts.
(2) The Group recognised a £750 million provision in 2016 as a consequence of the announcement that HM Treasury is seeking a revised package of remedies that would conclude its remaining State Aid commitments. An additional charge of £50 million was taken in the second quarter of 2017 following further revisions to the package, taking the total provision to £800 million.
Notes
3. Provisions for liabilities and charges (continued)
Payment Protection Insurance (PPI)
The cumulative charge in respect of PPI is £4.9 billion, of which £3.8 billion (78%) in redress and expenses had been
utilised by 30 June 2017. Of the £4.9 billion cumulative charge, £4.5 billion relates to redress and £0.4 billion to
administrative expenses.
The table below shows the sensitivity of the provision to changes in the principal assumptions (all other assumptions
remaining the same).
Sensitivity
Actual to date Current assumption Change in assumption Consequential change in provision
Assumption % £m
Single premium book past business review take-up rate 58% 59% +/-5 +/-60
Uphold rate (1) 90% 91% +/-5 +/-40
Average redress £1,688 £1,679 +/-5 +/-35
Note:
(1) Uphold rate excludes claims where no PPI policy was held.
Interest payable on successful complaints has been included in the provision as has the estimated cost of administration.
There are uncertainties as to the eventual cost of redress which will depend on actual complaint volumes, take-up and
uphold rates and average redress costs. Assumptions relating to these are inherently uncertain and the ultimate financial
impact may be different from the amount provided. We continue to monitor the position closely and refresh the underlying
assumptions. Background information in relation to PPI claims is given in Note 12.
Residential mortgage backed securities (RMBS)
RBS has reached a settlement with the Federal Housing Finance Agency (FHFA) as conservator of Fannie Mae and Freddie Mac,
to resolve claims by FHFA in relation to RBS's issuance and underwriting of approximately US$32 billion (£25 billion) of
RMBS in the US. As part of the settlement, FHFA's outstanding litigation against RBS relating to those securities has been
withdrawn.
Under the settlement, RBS has paid FHFA US$5.5 billion (£4.2 billion), of which US$754 million (£581 million) has been
reimbursed to RBS under indemnification agreements with third parties. The cost to RBS (net of the indemnity mentioned
above) of US$4.75 billion (£3.65 billion) is largely covered by existing provisions. An incremental charge of US$196
million (£151 million) was recorded in Q2 2017 in relation to the FHFA case. RBS held a provision of US$8.5 billion (£6.6
billion) against RMBS litigations and investigations at 30 June 2017, of which $4.75 billion (£3.7 billion) related to the
FHFA case that has now been resolved. For further information refer to Note 12.
Litigation and other regulatory
RBS is party to certain legal proceedings and regulatory and governmental investigations and continues to co-operate with a
number of regulators. All such matters are periodically reassessed with the assistance of external professional advisers,
where appropriate, to determine the likelihood of RBS incurring a liability and to evaluate the extent to which a reliable
estimate of any liability can be made.
Notes
4. Loan impairment provisions and risk elements in lending
Operating profit/(loss) is stated after net loan impairment charge of £152 million for the half year ended 30 June 2017 (H1
2016 - £412 million losses). The balance sheet loan impairment provisions decreased in the half year ended 30 June 2017
from £4,455 million to £3,945 million and the movements thereon were:
Half year ended
30 June 30 June
2017 2016
£m £m
At beginning of period 4,455 7,119
Currency translation and other adjustments 4 458
Amounts written-off (732) (1,532)
Recoveries of amounts previously written-off 112 57
Charges to income statement 152 412
Unwind of discount (recognised in interest income) (46) (58)
At end of period 3,945 6,456
As at 30 June 2017 there were no provisions for loans and advances to banks (30 June 2016 - nil).
Risk elements in lending (REIL) comprise impaired loans and accruing loans past due 90 days or more as to principal or
interest. Impaired loans are all loans (including loans subject to forbearance) for which an impairment provision has been
established; for collectively assessed loans, impairment loss provisions are not allocated to individual loans and the
entire portfolio is included in impaired loans. Accruing loans past due 90 days or more comprise loans past due 90 days
where no impairment loss is expected.
REIL decreased by £1,014 million in the half year ended 30 June 2017 to £9,296 million and the movements thereon were:
Half year ended
30 June 30 June
2017 2016
£m £m
At beginning of period 10,310 12,137
Currency translation and other adjustments 46 832
Additions 1,535 2,193
Transfers (1) (59) (108)
Transfer to performing book (391) (519)
Repayments and disposals (1,413) (1,214)
Amounts written-off (732) (1,532)
At end of period 9,296 11,789
Note:
(1) Represents transfers between REIL and potential problem loans.
Provision coverage of REIL was 42% at 30 June 2017 (30 June 2016 - 55%).
Notes
5. Tax
The actual tax charge differs from the expected tax charge computed by applying the standard UK corporation tax rate of
19.25% (2016 - 20.00%), as analysed below.
Half year ended
30 June 30 June
2017 2016
£m £m
Profit/(loss) before tax 1,951 (274)
Expected tax (charge)/credit (376) 55
Losses and temporary differences in period where no
deferred tax asset recognised (156) (107)
Foreign profits taxed at other rates 72 32
Items not allowed for tax
- losses on disposals and write-downs (59) (13)
- UK bank levy (20) (24)
- regulatory and legal actions (21) (216)
- other disallowable items (34) (45)
Non-taxable items 62 59
Taxable foreign exchange movements 9 (10)
Losses brought forward and utilised 3 6
Banking surcharge (199) (86)
Adjustments in respect of prior periods (8) 9
Actual tax charge (727) (340)
At 30 June 2017, the Group has recognised a deferred tax asset of £1,677 million (31 December 2016 - £1,803 million) and a
deferred tax liability of £585 million (31 December 2016 - £662 million). These include amounts recognised in respect of UK
trading losses of £725 million (31 December 2016 - £801 million). Under UK tax legislation, these UK losses can be carried
forward indefinitely to be utilised against profits arising in the future. The Group has considered the carrying value of
this asset as at 30 June 2017 and concluded that it is recoverable based on future profit projections.
6. Profit attributable to non-controlling interests
Half year ended
30 June 30 June
2017 2016
£m £m
RFS Holdings BV Consortium Members 27 28
Other 2 2
Profit attributable to non-controlling interests 29 30
7. Dividends
In the context of macro-prudential policy discussions, the Board decided to partially neutralise any impact on CET1 capital
of coupon and dividend payments for 2017 and 2016. £300 million of new ordinary shares were allotted and issued during the
course of 2016 and £150 million of new ordinary shares have been allotted and issued in H1 2017. The Board intends to issue
£300 million of new ordinary shares in total during 2017 to achieve this aim.
Notes
8. Earnings per ordinary share
Half year ended
30 June 30 June
2017 2016
Earnings
Profit/(loss) attributable to ordinary shareholders (£m) 939 (2,045)
Weighted average number of ordinary shares outstanding
during the period (millions) 11,817 11,639
Effect of dilutive share options and convertible securities (millions) 80 41
Diluted weighted average number of ordinary shares outstanding
during the period (millions) 11,897 11,680
Basic earnings/(loss) per ordinary share 7.9p (17.6p)
Restructuring costs 5.9p 4.0p
Litigation and conduct costs 3.4p 11.3p
Own credit adjustments 0.5p (3.0p)
Loss on redemption of own debt 0.0p 1.0p
Strategic disposals (1.3p) (1.2p)
Adjusted earnings/(loss) per ordinary share 16.4p (5.5p)
Basic earnings/(loss) per ordinary share 7.9p (17.6p)
Note:
(1) There is no dilutive impact in any period.
Notes
9. Segmental analysis
The business is organised into the following franchises and reportable segments:
● Personal & Business Banking (PBB), comprising two reportable segments, UK Personal & Business Banking (UK PBB) and Ulster Bank RoI;
● Commercial & Private Banking (CPB), which comprises three reportable segments: Commercial Banking, Private Banking and RBS International (RBSI);
● NatWest Markets (NWM), which is a single reportable segment;
● Capital Resolution which consists of non-strategic markets, portfolios and banking assets;
● Williams & Glyn (W&G) which is a single reportable segment; and
● Central items & other which comprises corporate functions.
Analysis of operating profit\(loss)
The following tables provide a segmental analysis of operating profit/(loss) by main income statement captions.
Net Non- Impairment
interest interest Total Operating (losses)/ Operating
income income income expenses releases profit/(loss)
Half year ended 30 June 2017 £m £m £m £m £m £m
UK Personal & Business Banking 2,231 524 2,755 (1,586) (72) 1,097
Ulster Bank RoI 206 87 293 (293) 11 11
Personal & Business Banking 2,437 611 3,048 (1,879) (61) 1,108
Commercial Banking 1,141 609 1,750 (996) (94) 660
Private Banking 226 95 321 (232) (7) 82
RBS International 161 34 195 (94) (5) 96
Commercial & Private Banking 1,528 738 2,266 (1,322) (106) 838
NatWest Markets 42 890 932 (775) (1) 156
Capital Resolution 24 (126) (102) (539) 78 (563)
Williams & Glyn 333 84 417 (158) (25) 234
Central items & other 108 250 358 (179) (1) 178
Total 4,472 2,447 6,919 (4,852) (116) 1,951
Half year ended 30 June 2016
UK Personal & Business Banking 2,109 506 2,615 (2,042) (40) 533
Ulster Bank RoI 198 95 293 (312) 27 8
Personal & Business Banking 2,307 601 2,908 (2,354) (13) 541
Commercial Banking 1,067 632 1,699 (984) (103) 612
Private Banking 226 105 331 (278) (2) 51
RBS International 151 34 185 (71) (11) 103
Commercial & Private Banking 1,444 771 2,215 (1,333) (116) 766
NatWest Markets 43 775 818 (729) - 89
Capital Resolution 168 (340) (172) (478) (263) (913)
Williams & Glyn 324 87 411 (242) (17) 152
Central items & other 47 (163) (116) (793) - (909)
Total 4,333 1,731 6,064 (5,929) (409) (274)
Notes
9. Segmental analysis (continued)
Total revenue
Half year ended
30 June 2017 30 June 2016
Inter Inter
External segment Total External segment Total
£m £m £m £m £m £m
UK Personal & Business Banking 3,154 17 3,171 3,114 27 3,141
Ulster Bank RoI 330 (1) 329 328 1 329
Personal & Business Banking 3,484 16 3,500 3,442 28 3,470
Commercial Banking 1,767 30 1,797 1,817 33 1,850
Private Banking 273 70 343 285 92 377
RBS International 156 62 218 151 79 230
Commercial & Private Banking 2,196 162 2,358 2,253 204 2,457
NatWest Markets 1,113 135 1,248 961 351 1,312
Capital Resolution (21) 322 301 (51) 644 593
Williams & Glyn 435 - 435 455 - 455
Central items & other 1,150 (635) 515 755 (1,227) (472)
Total 8,357 - 8,357 7,815 - 7,815
Total assets and liabilities
30 June 2017 31 December 2016
Assets Liabilities Assets Liabilities
£m £m £m £m
UK Personal & Business Banking 161,595 152,645 155,551 148,811
Ulster Bank RoI 24,854 19,264 24,111 19,299
Personal & Business Banking 186,449 171,909 179,662 168,110
Commercial Banking 151,939 107,794 150,453 104,441
Private Banking 19,600 26,196 18,758 26,673
RBS International 24,735 25,641 23,240 25,280
Commercial & Private Banking 196,274 159,631 192,451 156,394
NatWest Markets 230,939 211,781 239,963 222,494
Capital Resolution 102,239 88,423 132,533 117,977
Williams & Glyn 25,965 24,949 25,806 24,229
Central items & other 40,788 75,912 28,241 60,048
Total 782,654 732,605 798,656 749,252
Notes
10. Financial instruments: classification
The following tables analyse financial assets and liabilities in accordance with the categories of financial instruments in
IAS 39. Assets and liabilities outside the scope of IAS 39 are shown within other assets and liabilities.
Other
HFT (1,2) DFV (3) AFS (4) LAR (5) HTM (6) assets Total
Assets £m £m £m £m £m £m £m
Cash and balances at central banks - - - 86,807 - 86,807
Loans and advances to banks
- reverse repos 11,444 - - 3,403 - 14,847
- other 8,290 - - 12,395 - 20,685
Loans and advances to customers
- reverse repos 25,183 - - - - 25,183
- other 16,300 332 - 309,427 - 326,059
Debt securities 34,866 - 42,857 3,898 4,548 86,169
Equity shares 47 112 359 - - 518
Settlement balances - - 12,091 12,091
Derivatives 193,531 193,531
Other assets - - - - - 16,764 16,764
30 June 2017 289,661 444 43,216 428,021 4,548 16,764 782,654
Cash and balances at central banks - - - 74,250 - 74,250
Loans and advances to banks
- reverse repos 11,120 - - 1,740 - 12,860
- other 6,780 - - 10,498 - 17,278
Loans and advances to customers
- reverse repos 26,586 - - 2,341 - 28,927
- other 17,504 82 - 305,437 - 323,023
Debt securities 24,504 27 39,254 3,968 4,769 72,522
Equity shares 166 172 365 - - 703
Settlement balances - - 5,526 5,526
Derivatives 246,981 246,981
Other assets - - - - - 16,586 16,586
31 December 2016 333,641 281 39,619 403,760 4,769 16,586 798,656
For the notes to this table refer to the following page.
Notes
10. Financial instruments: classification (continued)
Amortised Other
HFT (1,2) DFV (3) cost liabilities Total
Liabilities £m £m £m £m £m
Deposits by banks
- repos 2,841 - 2,342 5,183
- other 16,050 - 22,915 38,965
Customer accounts
- repos 28,772 - 9,083 37,855
- other 11,542 1,127 347,213 359,882
Debt securities in issue 1,354 3,919 26,724 31,997
Settlement balances - - 11,379 11,379
Short positions 29,862 - 29,862
Derivatives 184,161 184,161
Subordinated liabilities - 900 13,824 14,724
Other liabilities - - 1,938 16,659 18,597
30 June 2017 274,582 5,946 435,418 16,659 732,605
Deposits by banks
- repos 4,125 - 1,114 5,239
- other 20,756 - 12,561 33,317
Customer accounts
- repos 23,186 - 3,910 27,096
- other 12,778 1,506 339,588 353,872
Debt securities in issue 1,614 4,621 21,010 27,245
Settlement balances - - 3,645 3,645
Short positions 22,077 - 22,077
Derivatives 236,475 236,475
Subordinated liabilities - 955 18,464 19,419
Other liabilities - - 2,010 18,857 20,867
31 December 2016 321,011 7,082 402,302 18,857 749,252
Notes:
(1) Includes derivative assets held for hedging purposes (under IAS 39) of £3,621 million (31 December 2016 - £4,789 million) and derivative liabilities held for hedging purposes (under IAS 39) of £3,621 million (31 December 2016 - £4,057 million).
(2) Held-for-trading.
(3) Designated as at fair value.
(4) Available-for-sale.
(5) Loans and receivables.
(6) Held-to-maturity.
There were no other reclassifications in either the half year ended 30 June 2017 or the year ended 31 December 2016.
Notes
10. Financial instruments: valuation
Own credit
The own credit adjustments (OCA) recorded on held-for-trading (HFT) and designated at fair value through profit or loss
(DFV) debt securities in issue, subordinated liabilities and derivative liabilities are set out below. The cumulative
adjustments below represent reductions/(increases) to the balance sheet liability amounts.
Own credit adjustment (1) Debt securities Subordinated
in issue (2) liabilities
HFT DFV DFV Derivatives Total (3)
£m £m £m £m £m
30 June 2017 (50) (22) 150 9 87
31 December 2016 (34) (6) 196 81 237
30 June 2016 1 82 283 135 501
Carrying values of underlying liabilities £bn £bn £bn
30 June 2017 1.4 3.9 0.9
31 December 2016 1.6 4.6 1.0
30 June 2016 3.4 5.4 0.9
Notes:
(1) The OCA does not alter cash flows and is not used for performance management.
(2) Includes wholesale and retail note issuances.
(3) The reserve movement between periods will not equate to the reported profit or loss or other comprehensive income related to own credit. RBS has early adopted the provisions within IFRS 9 Financial Instruments in respect of the presentation of gains and
losses on financial liabilities designated at fair value through profit and loss from 1 January 2017. For further information refer to Note 1. The balance sheet reserve is stated by converting underlying currency balances at spot rates for each period,
whereas the income statement includes intra-period foreign exchange sell-offs.
(4) The cumulative adjustment for debt securities in issue is opposite to that for subordinated liabilities: debt securities in issue were issued relatively recently at wider than current spreads, whilst many of the subordinated liabilities were issued before
the financial crisis at significantly tighter spreads.
Key points
· The cumulative OCA decrease during H1 2017 was mainly due to the tightening of RBS issuance spreads. The OCA on senior debt is determined by reference to secondary debt issuance spreads; the 5 year spreads tightened by 32 basis points to 30 basis points at 30 June 2017 (31 December 2016 - 62 basis points).
· RBS 5 year subordinated debt spreads tightened by 68 basis points to 213 basis points at 30 June 2017 (31 December 2016 - 281 basis points).
· RBS 5 year CDS credit spreads tightened by 44 basis points to 81 basis points at 30 June 2017 (31 December 2016 - 125 basis points) resulting in lower own credit reserve on derivatives.
Notes
10. Financial instruments: carried at fair value - valuation hierarchy
Disclosures relating to the control environment, valuation techniques and related aspects pertaining to financial
instruments measured at fair value are included in the 2016 Annual Report and Accounts. Valuation, sensitivity
methodologies and inputs are consistent with those described in the 2016 Annual Report and Accounts Note 9 - Financial
instruments valuation.
The tables below show financial instruments carried at fair value on the balance sheet by valuation hierarchy - level 1,
level 2 and level 3 and valuation sensitivities for level 3 balances.
Level 3 sensitivity
Level 1 Level 2 Level 3 Total Favourable Unfavourable
30 June 2017 £bn £bn £bn £bn £m £m
Assets
Loans and advances - 61.1 0.4 61.5 20 -
Debt securities 63.4 13.4 0.9 77.7 30 (20)
- of which AFS 36.1 6.6 0.2 42.9 10 (10)
Equity shares - 0.1 0.4 0.5 40 (40)
- of which AFS - 0.1 0.3 0.4 30 (30)
Derivatives - 191.4 2.2 193.6 210 (220)
63.4 266.0 3.9 333.3 300 (280)
Proportion 19.0% 79.8% 1.2% 100%
31 December 2016
Assets
Loans and advances - 61.5 0.6 62.1 50 (50)
Debt securities 53.8 9.2 0.8 63.8 70 (20)
- of which AFS 35.1 4.0 0.1 39.2 20 (10)
Equity shares 0.1 0.2 0.4 0.7 40 (50)
- of which AFS - 0.1 0.3 0.4 30 (40)
Derivatives - 244.2 2.7 246.9 200 (200)
53.9 315.1 4.5 373.5 360 (320)
Proportion 14.4% 84.4% 1.2% 100%
30 June 2017
Liabilities
Deposits - 60.2 - 60.2 10 (10)
Debt securities in issue - 4.8 0.5 5.3 30 (30)
Short positions 26.4 3.5 - 29.9 - -
Derivatives - 182.2 2.0 184.2 130 (130)
Subordinated liabilities - 0.9 - 0.9 - -
26.4 251.6 2.5 280.5 170 (170)
Proportion 9.4% 89.7% 0.9% 100%
31 December 2016
Liabilities
Deposits - 62.0 0.4 62.4 10 (20)
Debt securities in issue - 5.6 0.6 6.2 40 (40)
Short positions 19.7 2.4 - 22.1 - -
Derivatives - 234.4 2.0 236.4 120 (120)
Subordinated liabilities - 1.0 - 1.0 - -
19.7 305.4 3.0 328.1 170 (180)
Proportion 6.0% 93.1% 0.9% 100%
For the notes to this table refer to the following page.
Notes
10. Financial instruments carried at fair value - valuation hierarchy (continued)
Notes:
(1) Level 1: valued using unadjusted quoted prices in active markets, for identical financial instruments. Examples include G10 government securities, listed equity shares, certain exchange-traded derivatives and certain US agency securities.Level 2: valued
using techniques based significantly on observable market data. Instruments in this category are valued using:(a) quoted prices for similar instruments or identical instruments in markets which are not considered to be active; or(b) valuation techniques
where all the inputs that have a significant effect on the valuations are directly or indirectly based on observable market data.Level 2 instruments included non-G10 government securities, most government agency securities, investment-grade corporate
bonds, certain mortgage products, most bank loans, repos and reverse repos, less liquid listed equities, state and municipal obligations, most notes issued, and certain money market securities and loan commitments and most OTC derivatives.Level 3
instruments in this category have been valued using a valuation technique where at least one input which could have a significant effect on the instrument's valuation, is not based on observable market data. Level 3 instruments primarily include cash
instruments which trade infrequently, certain syndicated mortgage loans, certain emerging markets instruments, unlisted equity shares, certain residual interests in securitisations, asset-backed products and less liquid debt securities, certain structured
debt securities in issue, and OTC derivatives where valuation depends upon unobservable inputs such as certain credit and exotic derivatives. No gain or loss is recognised on the initial recognition of a financial instrument valued using a technique
incorporating significant unobservable data.
(2) Transfers between levels are deemed to have occurred at the beginning of the quarter in which the instruments were transferred. There were no significant transfers between level 1 and level 2.
(3) For an analyses of debt securities and derivatives refer to Appendix 1 - Capital and risk management - Credit risk.
Movement in level 3 portfolios
Half year ended 2017 Half year ended 2016
FVTPL AFS Total Total FVTPL AFS Total Total
assets (2) assets assets liabilities assets (2) assets assets liabilities
£m £m £m £m £m £m £m £m
At 1 January 4,111 426 4,537 2,997 3,152 765 3,917 2,716
Amount recorded in the income statement (1) (410) 1 (409) (204) 332 1 333 634
Amount recorded in the statement of - - - - - - - -
comprehensive income - (15) (15) - - 47 47 -
Level 3 transfers in 255 266 521 292 705 27 732 592
Level 3 transfers out (404) - (404) (418) (369) (28) (397) (422)
Issuances - - - - 3 - 3 22
Purchases 810 1 811 269 493 11 504 406
Settlements (96) - (96) (117) (393) - (393) (362)
Sales (876) (156) (1,032) (323) (344) (204) (548) (16)
Foreign exchange and other adjustments (17) (1) (18) 9 12 7 19 43
At 30 June 3,373 522 3,895 2,505 3,591 626 4,217 3,613
Amounts recorded in the income statement in
respect of balances held at year end
- unrealised (96) - (96) 629 267 2 269 364
- realised 148 - 148 (262) 193 (188) 5 (85)
Notes:
(1) Net losses on HFT instruments of £197 million (H1 2016 - £285 million losses) were recorded in income from trading activities in continuing operations. Net losses on other instruments of £8 million (H1 2016 - £16 million losses) were recorded in other operating income and interest income as appropriate in continuing operations.
(2) Fair value through profit or loss comprises held-for-trading predominantly and designated at fair value through profit and loss.
Notes
10. Financial instruments: Fair value of financial instruments
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