Credit risk (Tables)
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6 Months Ended |
Jun. 30, 2025 |
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| Disclosure of credit risk exposure [abstract] |
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| Disclosure of loans and advances at amortised cost by product |
| | | | | | | | | | | | | | | | | | | | | | | | | | | Stage 2 | | | | As at 30.06.25 | Stage 1 | Not past due | <=30 days past due | >30 days past due | Total | Stage 3 | Total1 | | Gross exposure | £m | £m | £m | £m | £m | £m | £m | | Retail mortgages | 4,605 | 59 | — | 42 | 101 | 254 | 4,960 | | Retail credit cards | 15,975 | 2,231 | 227 | 205 | 2,663 | 1,615 | 20,253 | | Retail other | 3,582 | 126 | 108 | 26 | 260 | 194 | 4,036 | | Corporate loans | 106,426 | 7,651 | 72 | 92 | 7,815 | 1,864 | 116,105 | | Total loans and advances at amortised cost | 130,588 | 10,067 | 407 | 365 | 10,839 | 3,927 | 145,354 | | Debt securities at amortised cost | 53,918 | 708 | — | — | 708 | — | 54,626 | | Total loans and advances at amortised cost including debt securities | 184,506 | 10,775 | 407 | 365 | 11,547 | 3,927 | 199,980 | | | | | | | | | | Impairment allowance | | | | | | | | | Retail mortgages | 5 | — | — | — | — | 22 | 27 | | Retail credit cards | 297 | 541 | 91 | 119 | 751 | 1,323 | 2,371 | | Retail other | 12 | 3 | — | — | 3 | 20 | 35 | | Corporate loans | 150 | 249 | 4 | 8 | 261 | 407 | 818 | | Total loans and advances at amortised cost | 464 | 793 | 95 | 127 | 1,015 | 1,772 | 3,251 | | Debt securities at amortised cost | 10 | 11 | — | — | 11 | — | 21 | | Total loans and advances at amortised cost including debt securities | 474 | 804 | 95 | 127 | 1,026 | 1,772 | 3,272 | | | | | | | | | | Net exposure | | | | | | | | | Retail mortgages | 4,600 | 59 | — | 42 | 101 | 232 | 4,933 | | Retail credit cards | 15,678 | 1,690 | 136 | 86 | 1,912 | 292 | 17,882 | | Retail other | 3,570 | 123 | 108 | 26 | 257 | 174 | 4,001 | | Corporate loans | 106,276 | 7,402 | 68 | 84 | 7,554 | 1,457 | 115,287 | | Total loans and advances at amortised cost | 130,124 | 9,274 | 312 | 238 | 9,824 | 2,155 | 142,103 | | Debt securities at amortised cost | 53,908 | 697 | — | — | 697 | — | 54,605 | | Total loans and advances at amortised cost including debt securities | 184,032 | 9,971 | 312 | 238 | 10,521 | 2,155 | 196,708 | | | | | | | | | | Coverage ratio | % | % | % | % | % | % | % | | Retail mortgages | 0.1 | | — | | — | | — | | — | | 8.7 | | 0.5 | | | Retail credit cards | 1.9 | | 24.2 | | 40.1 | | 58.0 | | 28.2 | | 81.9 | | 11.7 | | | Retail other | 0.3 | | 2.4 | | — | | — | | 1.2 | | 10.3 | | 0.9 | | | Corporate loans | 0.1 | | 3.3 | | 5.6 | | 8.7 | | 3.3 | | 21.8 | | 0.7 | | | Total loans and advances at amortised cost | 0.4 | | 7.9 | | 23.3 | | 34.8 | | 9.4 | | 45.1 | | 2.2 | | | Debt securities at amortised cost | — | | 1.6 | | — | | — | | 1.6 | | — | | — | | | Total loans and advances at amortised cost including debt securities | 0.3 | | 7.5 | | 23.3 | | 34.8 | | 8.9 | | 45.1 | | 1.6 | | | | | | | | | |
1Other financial assets subject to impairment excluded in the table above include cash collateral and settlement balances, reverse repurchase agreements and other similar secured lending, financial assets at fair value through other comprehensive income and other assets. These have a total gross exposure of £201.2bn and an impairment allowance of £144m. This comprises £21m impairment allowance on £200.2bn Stage 1 exposure, £4m on £0.9bn Stage 2 exposure and £119m on £124m Stage 3 exposure. Loan commitments and financial guarantee contracts have total impairment allowance of £405m. | | | | | | | | | | | | | | | | | | | | | | | | | | Stage 2 | | | | As at 31.12.24 | Stage 1 | Not past due | <=30 days past due | >30 days past due | Total | Stage 3 | Total1 | | Gross exposure | £m | £m | £m | £m | £m | £m | £m | | Retail mortgages | 4,537 | 9 | — | 141 | 150 | 310 | 4,997 | | Retail credit cards | 17,629 | 2,449 | 256 | 248 | 2,953 | 1,724 | 22,306 | | Retail other | 3,329 | 177 | 157 | 70 | 404 | 216 | 3,949 | | Corporate loans | 107,194 | 7,944 | 137 | 66 | 8,147 | 1,654 | 116,995 | | Total loans and advances at amortised cost | 132,689 | 10,579 | 550 | 525 | 11,654 | 3,904 | 148,247 | | Debt securities at amortised cost | 47,077 | 3,170 | — | — | 3,170 | — | 50,247 | | Total loans and advances at amortised cost including debt securities | 179,766 | 13,749 | 550 | 525 | 14,824 | 3,904 | 198,494 | | | | | | | | | | Impairment allowance | | | | | | | | | Retail mortgages | 8 | 1 | — | — | 1 | 32 | 41 | | Retail credit cards | 334 | 552 | 105 | 150 | 807 | 1,416 | 2,557 | | Retail other | 5 | 1 | — | — | 1 | 25 | 31 | | Corporate loans | 144 | 240 | 6 | 8 | 254 | 393 | 791 | | Total loans and advances at amortised cost | 491 | 794 | 111 | 158 | 1,063 | 1,866 | 3,420 | | Debt securities at amortised cost | 9 | 11 | — | — | 11 | — | 20 | | Total loans and advances at amortised cost including debt securities | 500 | 805 | 111 | 158 | 1,074 | 1,866 | 3,440 | | | | | | | | | | Net exposure | | | | | | | | | Retail mortgages | 4,529 | 8 | — | 141 | 149 | 278 | 4,956 | | Retail credit cards | 17,295 | 1,897 | 151 | 98 | 2,146 | 308 | 19,749 | | Retail other | 3,324 | 176 | 157 | 70 | 403 | 191 | 3,918 | | Corporate loans | 107,050 | 7,704 | 131 | 58 | 7,893 | 1,261 | 116,204 | | Total loans and advances at amortised cost | 132,198 | 9,785 | 439 | 367 | 10,591 | 2,038 | 144,827 | | Debt securities at amortised cost | 47,068 | 3,159 | — | — | 3,159 | — | 50,227 | | Total loans and advances at amortised cost including debt securities | 179,266 | 12,944 | 439 | 367 | 13,750 | 2,038 | 195,054 | | | | | | | | | | Coverage ratio | % | % | % | % | % | % | % | | Retail mortgages | 0.2 | | 11.1 | | — | | — | | 0.7 | | 10.3 | | 0.8 | | | Retail credit cards | 1.9 | | 22.5 | | 41.0 | | 60.5 | | 27.3 | | 82.1 | | 11.5 | | | Retail other | 0.2 | | 0.6 | | — | | — | | 0.2 | | 11.6 | | 0.8 | | | Corporate loans | 0.1 | | 3.0 | | 4.4 | | 12.1 | | 3.1 | | 23.8 | | 0.7 | | | Total loans and advances at amortised cost | 0.4 | | 7.5 | | 20.2 | | 30.1 | | 9.1 | | 47.8 | | 2.3 | | | Debt securities at amortised cost | — | | 0.3 | | — | | — | | 0.3 | | — | | — | | | Total loans and advances at amortised cost including debt securities | 0.3 | | 5.9 | | 20.2 | | 30.1 | | 7.2 | | 47.8 | | 1.7 | |
1Other financial assets subject to impairment excluded in the table above include cash collateral and settlement balances, reverse repurchase agreements and other similar secured lending, financial assets at fair value through other comprehensive income and other assets. These have a total gross exposure of £169.6bn and an impairment allowance of £150m. This comprises £17m impairment allowance on £168.3bn Stage 1 exposure, £7m on £1.1bn Stage 2 exposure and £126m on £130m Stage 3 exposure. Loan commitments and financial guarantee contracts have total impairment allowance of £420m.
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| Disclosure of movement in gross exposures and impairment allowance including provisions for loan commitments and financial guarantees |
The following tables present a reconciliation of the opening to the closing balance of the gross exposure and impairment allowance.
Transfers between stages in the tables have been reflected as if they had taken place at the beginning of the period. 'Net drawdowns, repayments, net re-measurement and movements due to exposure and risk parameter changes' includes additional drawdowns and partial repayments from existing facilities. Additionally, the below tables do not include other financial assets subject to impairment such as debt securities at amortised cost, reverse repurchase agreements and other similar secured lending, cash collateral and settlement balances, financial assets at fair value through other comprehensive income and other assets.
The movements are measured over a six-month period. | | | | | | | | | | | | | | | | | | | | | | | | | | | | Loans and advances at amortised cost | | Stage 1 | Stage 2 | Stage 3 | Total | | Gross exposure | ECL | Gross exposure | ECL | Gross exposure | ECL | Gross exposure | ECL | | £m | £m | £m | £m | £m | £m | £m | £m | | Retail mortgages | | | | | | | | | | As at 1 January 2025 | 4,537 | | 8 | | 150 | | 1 | | 310 | | 32 | | 4,997 | | 41 | | | Transfers from Stage 1 to Stage 2 | (82) | | — | | 82 | | — | | — | | — | | — | | — | | | Transfers from Stage 2 to Stage 1 | 117 | | — | | (117) | | — | | — | | — | | — | | — | | | Transfers to Stage 3 | (19) | | — | | (20) | | — | | 39 | | — | | — | | — | | | Transfers from Stage 3 | 47 | | 2 | | 13 | | — | | (60) | | (2) | | — | | — | | | Business activity in the period | 275 | | — | | — | | — | | 22 | | — | | 297 | | — | | | Refinements to models used for calculation | — | | — | | — | | — | | — | | — | | — | | — | | | Net drawdowns, repayments, net re-measurement and movement due to exposure and risk parameter changes | 66 | | (5) | | 2 | | — | | (11) | | 6 | | 57 | | 1 | | | Final repayments | (336) | | — | | (8) | | — | | (29) | | (1) | | (373) | | (1) | | Disposals1 | — | | — | | (1) | | (1) | | (9) | | (5) | | (10) | | (6) | | Write-offs | — | | — | | — | | — | | (8) | | (8) | | (8) | | (8) | | As at 30 June 2025 | 4,605 | | 5 | | 101 | | — | | 254 | | 22 | | 4,960 | | 27 | | | | | | | | | | | | Retail credit cards | | As at 1 January 2025 | 17,629 | 334 | 2,953 | 807 | 1,724 | 1,416 | 22,306 | 2,557 | | Transfers from Stage 1 to Stage 2 | (1,181) | (40) | 1,181 | 40 | — | — | — | — | | | Transfers from Stage 2 to Stage 1 | 884 | 198 | (884) | (198) | — | — | — | — | | | Transfers to Stage 3 | (195) | (9) | (524) | (231) | 719 | 240 | — | — | | | Transfers from Stage 3 | 5 | 4 | 5 | 4 | (10) | (8) | — | — | | | Business activity in the period | 625 | 12 | 29 | 9 | — | — | 654 | 21 | | Refinements to models used for calculation2 | — | 14 | — | (47) | — | 1 | — | (32) | | | Net drawdowns, repayments, net re-measurement and movement due to exposure and risk parameter changes | (1,760) | (214) | (91) | 368 | (204) | 257 | (2,055) | 411 | | | Final repayments | (32) | (2) | (6) | (1) | — | — | (38) | (3) | | Disposals1 | — | — | — | — | (173) | (142) | (173) | (142) | Write-offs | — | — | — | — | (441) | (441) | (441) | (441) | As at 30 June 2025 | 15,975 | 297 | 2,663 | 751 | 1,615 | 1,323 | 20,253 | 2,371 |
1The £10m of gross disposals reported within Retail mortgages relate to sale of the Italian mortgage loans. The £173m of gross disposals reported within Retail credit cards relate to debt sale undertaken during the period. 2Refinements to models used for calculation reported within Retail credit cards include a £(32)m movement in the calculated ECL for the US Cards portfolio. These reflect model enhancements made during the period. Barclays continually reviews the output of models to determine accuracy of the ECL calculation including review of model monitoring, external benchmarking and experience of model operation over an extended period of time. This helps to ensure that the models used continue to reflect the risks inherent across the businesses. | | | | | | | | | | | | | | | | | | | | | | | | | | | | Stage 1 | Stage 2 | Stage 3 | Total | | Gross exposure | ECL | Gross exposure | ECL | Gross exposure | ECL | Gross exposure | ECL | | £m | £m | £m | £m | £m | £m | £m | £m | | Retail other | | | | | | | | | | As at 1 January 2025 | 3,329 | | 5 | | 404 | | 1 | | 216 | | 25 | | 3,949 | | 31 | | | Transfers from Stage 1 to Stage 2 | (112) | | — | | 112 | | — | | — | | — | | — | | — | | | Transfers from Stage 2 to Stage 1 | 63 | | — | | (63) | | — | | — | | — | | — | | — | | | Transfers to Stage 3 | (22) | | — | | (30) | | — | | 52 | | — | | — | | — | | | Transfers from Stage 3 | 23 | | 1 | | — | | — | | (23) | | (1) | | — | | — | | | Business activity in the period | 895 | | — | | — | | — | | 5 | | — | | 900 | | — | | | Refinements to models used for calculation | — | | — | | — | | — | | — | | — | | — | | — | | | Net drawdowns, repayments, net re-measurement and movement due to exposure and risk parameter changes | 774 | | 8 | | 86 | | 2 | | 58 | | 4 | | 918 | | 14 | | | Final repayments | (1,368) | | (2) | | (249) | | — | | (111) | | (5) | | (1,728) | | (7) | | | Disposals | — | | — | | — | | — | | — | | — | | — | | — | | Write-offs | — | | — | | — | | — | | (3) | | (3) | | (3) | | (3) | | As at 30 June 2025 | 3,582 | | 12 | | 260 | | 3 | | 194 | | 20 | | 4,036 | | 35 | | | | | | | | | | | | Corporate loans | | As at 1 January 2025 | 107,194 | 144 | 8,147 | 254 | 1,654 | 393 | 116,995 | 791 | | Transfers from Stage 1 to Stage 2 | (1,916) | (9) | 1,916 | 9 | — | — | — | — | | Transfers from Stage 2 to Stage 1 | 1,582 | 32 | (1,582) | (32) | — | — | — | — | | Transfers to Stage 3 | (263) | (2) | (317) | (22) | 580 | 24 | — | — | | Transfers from Stage 3 | 63 | 1 | 11 | 1 | (74) | (2) | — | — | | Business activity in the period | 16,262 | 22 | 1,236 | 26 | 290 | 20 | 17,788 | 68 | Refinements to models used for calculation1 | — | (8) | — | (6) | — | — | — | (14) | | Net drawdowns, repayments, net re-measurement and movement due to exposure and risk parameter changes | 267 | (16) | (166) | 66 | (174) | 158 | (73) | 208 | | Final repayments | (16,762) | (13) | (1,428) | (33) | (166) | (40) | (18,356) | (86) | Disposals2 | (1) | (1) | (2) | (2) | (121) | (21) | (124) | (24) | Write-offs | — | — | — | — | (125) | (125) | (125) | (125) | As at 30 June 2025 | 106,426 | 150 | 7,815 | 261 | 1,864 | 407 | 116,105 | 818 |
1Refinements to models used for calculation reported within Corporate loans include a £(14)m movement in the calculated ECL for the IB portfolio. These reflect model enhancements made during the period. Barclays continually reviews the output of models to determine accuracy of the ECL calculation including review of model monitoring, external benchmarking and experience of model operation over an extended period of time. This helps to ensure that the models used continue to reflect the risks inherent across the businesses. 2The £124m of gross disposals reported within Corporate loans relate to debt sales undertaken during the period. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Reconciliation of ECL movement to impairment charge/(release) for the period | | | | | | Stage 1 | Stage 2 | Stage 3 | Total | | | | | | £m | £m | £m | £m | | Retail mortgages | (3) | | — | | 3 | | — | | | Retail credit cards | (37) | | (56) | | 490 | | 397 | | | Retail other | 7 | | 2 | | (2) | | 7 | | | Corporate loans | 7 | | 9 | | 160 | | 176 | ECL movement excluding disposals and write-offs1 | (26) | | (45) | | 651 | | 580 | | | ECL movement on loan commitments and other financial guarantees | (4) | | (7) | | (4) | | (15) | | ECL movement on other financial assets | 4 | | (3) | | (7) | | (6) | | ECL movement on debt securities at amortised cost | 1 | | — | | — | | 1 | | Recoveries and reimbursements2 | (3) | | (16) | | (54) | | (73) | | ECL charge on assets held for sale3 | | | | 105 | | Total exchange and other adjustments | | | | 283 | | | Total income statement charge for the period | | | | 875 | |
1In H125, gross write-offs amounted to £577m (H124: £585m) and post write-off recoveries amounted to £21m (H124: £14m). Net write-offs represent gross write-offs less post write-off recoveries and amounted to £556m (H124: £571m). 2Recoveries and reimbursements include £52m (H124: £18m) for reimbursements expected to be received under the arrangement where Barclays Bank Group has entered into financial guarantee contracts which provide credit protection over certain assets with third parties and cash recoveries of previously written off amounts £21m (H124: £14m). 3ECL charge on assets held for sale relate to the charges on a co-branded card portfolio in USCB and the German consumer finance business. | | | | | | | | | | | | | | | | | | | | | | | | | | | Loan commitments and financial guarantees1 | | | | | | | Stage 1 | Stage 2 | Stage 3 | Total | | Gross exposure | ECL | Gross exposure | ECL | Gross exposure | ECL | Gross exposure | ECL | | £m | £m | £m | £m | £m | £m | £m | £m | | Retail mortgages | | | | | | | | | | As at 1 January 2025 | 18 | — | — | — | 1 | — | 19 | — | | Net transfers between stages | — | — | — | — | — | — | — | — | | Business activity in the year | — | — | — | — | 5 | — | 5 | — | | Net drawdowns, repayments, net re-measurement and movement due to exposure and risk parameter changes | (8) | — | — | — | — | — | (8) | — | | Limit management and final repayments | (2) | — | — | — | — | — | (2) | — | | As at 30 June 2025 | 8 | — | — | — | 6 | — | 14 | — | | | | | | | | | | | Retail credit cards | | As at 1 January 2025 | 112,645 | 34 | 1,648 | 15 | 10 | 1 | 114,303 | 50 | | Net transfers between stages | (989) | 6 | 989 | (6) | — | — | — | — | | Business activity in the year | 7,095 | 5 | 36 | 1 | — | — | 7,131 | 6 | | Net drawdowns, repayments, net re-measurement and movement due to exposure and risk parameter changes | (7,716) | (11) | (1,071) | 9 | — | (1) | (8,787) | (3) | | Limit management and final repayments | (5,887) | (4) | (110) | (3) | — | — | (5,997) | (7) | Disposals2 | (5,203) | — | (217) | — | (10) | — | (5,430) | — | | As at 30 June 2025 | 99,945 | 30 | 1,275 | 16 | — | — | 101,220 | 46 | | | | | | | | | | | Retail other | | | | | | | | | | As at 1 January 2025 | 3,970 | 5 | 103 | — | 11 | — | 4,084 | 5 | | Net transfers between stages | (13) | — | 12 | — | 1 | — | — | — | | Business activity in the year | 363 | — | — | — | — | — | 363 | — | | Net drawdowns, repayments, net re-measurement and movement due to exposure and risk parameter changes | 196 | (3) | (1) | — | (6) | — | 189 | (3) | | Limit management and final repayments | (565) | — | (25) | — | (3) | — | (593) | — | Disposals2 | (743) | — | (30) | — | (1) | — | (774) | — | | As at 30 June 2025 | 3,208 | 2 | 59 | — | 2 | — | 3,269 | 2 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | Corporate loans | | As at 1 January 2025 | 229,565 | 116 | 15,079 | 225 | 954 | 24 | 245,598 | 365 | | Net transfers between stages | (70) | 23 | (98) | (22) | 168 | (1) | — | — | | Business activity in the year | 52,611 | 23 | 1,166 | 31 | 68 | — | 53,845 | 54 | | Net drawdowns, repayments, net re-measurement and movement due to exposure and risk parameter changes | (4,388) | (29) | (1,178) | 21 | (261) | — | (5,827) | (8) | | Limit management and final repayments | (49,930) | (14) | (1,983) | (38) | (163) | (2) | (52,076) | (54) | | As at 30 June 2025 | 227,788 | 119 | 12,986 | 217 | 766 | 21 | 241,540 | 357 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
1 Loan commitments reported also include financial assets classified as held for sale. 2The gross disposals reported within Retail credit card and Retail other relate to the German consumer finance business; sale of which was completed in Q125.
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| Disclosure of management adjustment to models for impairment |
Management adjustments to models for impairment allowance presented by product1 | | | | | | | | | | | | | | | | | | | | | | Impairment allowance pre management adjustments2 | Economic uncertainty adjustments | Other adjustments | Management adjustments3 | Total impairment allowance4 | Proportion of Management adjustments to Total impairment allowance | | | (a) | (b) | (a+b) | | | | As at 30.06.2025 | £m | £m | £m | £m | £m | % | | Retail mortgages | 24 | — | 3 | 3 | 27 | 11.1 | | Retail credit cards5 | 2,387 | 30 | — | 30 | 2,417 | 1.2 | | | Retail other | 37 | — | — | — | 37 | — | | Corporate loans5 | 1,187 | 48 | (60) | (12) | 1,175 | (1.0) | | | Total | 3,635 | 78 | (57) | 21 | 3,656 | 0.6 | | | Debt securities at amortised cost | 20 | 1 | — | 1 | 21 | 4.8 | | | Total including debt securities at amortised cost | 3,655 | 79 | (57) | 22 | 3,677 | 0.6 | | | | | | | | | | As at 31.12.2024 | £m | £m | £m | £m | £m | % | | Retail mortgages | 38 | — | 3 | 3 | 41 | 7.3 | | | Retail credit cards | 2,630 | — | (23) | (23) | 2,607 | (0.9) | | | Retail other | 32 | — | 4 | 4 | 36 | 11.1 | | | Corporate loans | 1,162 | — | (6) | (6) | 1,156 | (0.5) | | | Total | 3,862 | — | (22) | (22) | 3,840 | (0.6) | | | Debt securities at amortised cost | 27 | — | (7) | (7) | 20 | (35.0) | | | Total including debt securities at amortised cost | 3,889 | — | (29) | (29) | 3,860 | (0.8) | |
Economic uncertainty adjustments presented by stage
| | | | | | | | | | | | | | | | Stage 1 | Stage 2 | Stage 3 | Total | | As at 30.06.2025 | £m | £m | £m | £m | | Retail mortgages | — | — | — | — | | Retail credit cards | — | 30 | — | 30 | | Retail other | — | — | — | — | | Corporate loans | 15 | 33 | — | 48 | | Total | 15 | 63 | — | 78 | | Debt securities at amortised cost | 1 | — | — | 1 | | Total including debt securities at amortised cost | 16 | 63 | — | 79 |
1Positive values reflect an increase in impairment allowance and negative values reflect a reduction in the impairment allowance. 2Includes £3.4bn (December 2024: £3.7bn) of modelled ECL, £0.4bn (December 2024: £0.3bn) of individually assessed impairments, £(0.2)bn (December 2024: £(0.3)bn) of ECL from assets held for sale (co-branded card portfolio) and £0.1bn (December 2024: £0.1bn) of ECL from non-modelled exposures and debt securities. 3Management adjustments related to other financial assets subject to impairment not included in the table above include cash collateral and settlement balances £nil (December 2024: £(1)m), reverse repurchase agreements £1m (December 2024: £(2)m) and financial assets at fair value through other comprehensive income £nil (December 2024: £(2)m) within the IB portfolio. 4Total impairment allowance consists of ECL stock on drawn and undrawn exposure. 5Economic uncertainty adjustment of £87m is split £36m in USCB (including £6m in HFS) and £51m in IB, primarily reported within Corporate loans. Management adjustments to models for impairment
| | | | | | | | | | | | | | | | | | | | | | Management adjustments to models for impairment | | Impairment allowance pre management adjustments | Economic uncertainty adjustments1 (a) | Other adjustments (b) | Management adjustments (a+b) | Total impairment allowance | Proportion of Management adjustments to Total impairment allowance | | | As at 30.06.2025 | £m | £m | £m | £m | £m | % | | Retail credit cards - US | 235 | 6 | — | 6 | 241 | 2.5 | | | Retail credit cards - Germany | — | — | — | — | — | — | | | Retail other - Germany | — | — | — | — | — | — | | | Corporate loans - US | 4 | — | — | — | 4 | — | | | Total | 239 | 6 | — | 6 | 245 | 2.4 | | | As at 31.12.2024 | £m | £m | £m | £m | £m | % | | Retail credit cards - US | 277 | — | — | — | 277 | — | | | Retail credit cards - Germany | 101 | — | 16 | 16 | 117 | 13.7 | | | Retail other - Germany | 80 | — | 17 | 17 | 97 | 17.5 | | | Corporate loans - US | 5 | — | — | — | 5 | — | | | Total | 463 | — | 33 | 33 | 496 | 6.7 | |
1 Economic uncertainty adjustment of £6m (December 2024: £nil) reflects an adjustment introduced during the year to provide for the elevated US macroeconomic uncertainty and reported in Stage 2.
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| Disclosure of macroeconomic variables |
| | | | | | | | | | | | | | | | | | Macroeconomic variables used in the calculation of ECL | | As at 30 June 2025 | 2025 | 2026 | 2027 | 2028 | 2029 | | Baseline | % | % | % | % | % | UK GDP1 | 0.7 | | 1.2 | | 1.5 | | 1.6 | | 1.7 | | UK unemployment2 | 4.6 | | 4.7 | | 4.7 | | 4.6 | | 4.6 | | UK HPI3 | 2.1 | | 2.3 | | 2.3 | | 3.5 | | 3.9 | | UK bank rate6 | 4.1 | | 3.8 | | 3.8 | | 3.8 | | 3.9 | | US GDP1 | 1.9 | | 1.4 | | 2.0 | | 2.0 | | 2.0 | | US unemployment4 | 4.4 | | 4.6 | | 4.6 | | 4.6 | | 4.6 | | US HPI5 | 2.8 | | 2.0 | | 2.0 | | 2.0 | | 2.0 | | US federal funds rate6 | 4.3 | | 3.6 | | 3.6 | | 3.8 | | 3.8 | | | | | | | | | Downside 2 | | | | | | UK GDP1 | (0.2) | | (3.4) | | 1.7 | | 2.6 | | 1.8 | | UK unemployment2 | 4.9 | | 7.6 | | 7.5 | | 5.9 | | 5.3 | | UK HPI3 | (9.4) | | (20.6) | | 1.2 | | 18.1 | | 10.0 | | UK bank rate6 | 4.0 | | 1.4 | | 0.2 | | 0.8 | | 1.5 | | US GDP1 | 0.9 | | (4.7) | | (0.2) | | 2.3 | | 2.3 | | US unemployment4 | 4.6 | | 7.3 | | 7.8 | | 6.4 | | 5.8 | | US HPI5 | (1.6) | | (6.6) | | 3.6 | | 9.1 | | 4.7 | | US federal funds rate6 | 4.5 | | 4.1 | | 2.4 | | 1.4 | | 1.2 | | | | | | | | | Downside 1 | | | | | | UK GDP1 | 0.2 | | (1.1) | | 1.6 | | 2.1 | | 1.8 | | UK unemployment2 | 4.8 | | 6.2 | | 6.1 | | 5.2 | | 4.9 | | UK HPI3 | (3.7) | | (9.6) | | 1.7 | | 10.7 | | 7.0 | | UK bank rate6 | 4.1 | | 3.1 | | 2.2 | | 2.3 | | 2.7 | | US GDP1 | 1.4 | | (1.6) | | 0.9 | | 2.1 | | 2.1 | | US unemployment4 | 4.5 | | 5.9 | | 6.2 | | 5.5 | | 5.2 | | US HPI5 | 0.5 | | (2.4) | | 2.8 | | 5.5 | | 3.4 | | US federal funds rate6 | 4.3 | | 3.9 | | 2.9 | | 2.6 | | 2.6 | | | | | | | | | Upside 2 | | | | | | UK GDP1 | 1.1 | | 3.9 | | 3.2 | | 2.6 | | 2.3 | | UK unemployment2 | 4.4 | | 4.0 | | 3.8 | | 3.7 | | 3.7 | | UK HPI3 | 4.4 | | 14.2 | | 6.8 | | 2.7 | | 3.8 | | UK bank rate6 | 4.1 | | 3.1 | | 2.5 | | 2.6 | | 2.9 | | US GDP1 | 2.3 | | 3.1 | | 2.9 | | 2.8 | | 2.8 | | US unemployment4 | 4.2 | | 3.9 | | 3.9 | | 3.9 | | 3.9 | | US HPI5 | 5.2 | | 4.3 | | 5.3 | | 4.9 | | 4.9 | | US federal funds rate6 | 4.1 | | 2.9 | | 2.8 | | 2.8 | | 2.8 | | | | | | | | | Upside 1 | | | | | | UK GDP1 | 0.9 | | 2.5 | | 2.4 | | 2.1 | | 2.0 | | UK unemployment2 | 4.5 | | 4.3 | | 4.3 | | 4.2 | | 4.2 | | UK HPI3 | 3.2 | | 8.1 | | 4.5 | | 3.1 | | 3.9 | | UK bank rate6 | 4.1 | | 3.4 | | 3.3 | | 3.3 | | 3.4 | | US GDP1 | 2.1 | | 2.3 | | 2.4 | | 2.4 | | 2.4 | | US unemployment4 | 4.3 | | 4.2 | | 4.2 | | 4.2 | | 4.2 | | US HPI5 | 4.0 | | 3.1 | | 3.7 | | 3.4 | | 3.4 | | US federal funds rate6 | 4.3 | | 3.3 | | 3.3 | | 3.5 | | 3.5 | |
1.Average Real GDP seasonally adjusted change in year. 2.Average UK unemployment rate 16-year+. 3.Change in year end UK HPI = Halifax HPI Meth2 All Houses, All Buyers index. 4.Average US civilian unemployment rate 16-year+. 5.Change in year end US HPI = FHFA House Price Index, relative to prior year end. 6.Average rate. | | | | | | | | | | | | | | | | | | Macroeconomic variables used in the calculation of ECL | | As at 31 December 2024 | 2024 | 2025 | 2026 | 2027 | 2028 | | Baseline | % | % | % | % | % | UK GDP1 | 1.0 | | 1.4 | | 1.5 | | 1.6 | | 1.5 | | UK unemployment2 | 4.3 | | 4.4 | | 4.5 | | 4.4 | | 4.4 | | UK HPI3 | 2.8 | | 3.3 | | 1.6 | | 4.5 | | 3.0 | | UK bank rate6 | 5.1 | | 4.3 | | 4.0 | | 4.0 | | 3.8 | | US GDP1 | 2.7 | | 2.0 | | 2.0 | | 2.0 | | 2.0 | | US unemployment4 | 4.1 | | 4.3 | | 4.2 | | 4.2 | | 4.2 | | US HPI5 | 6.5 | | 2.6 | | 2.7 | | 3.0 | | 3.0 | | US federal funds rate6 | 5.1 | | 4.1 | | 4.0 | | 3.8 | | 3.8 | | | | | | | | | Downside 2 | | | | | | UK GDP1 | 1.0 | | (2.3) | | (1.3) | | 2.6 | | 2.3 | | UK unemployment2 | 4.3 | | 6.2 | | 8.1 | | 6.6 | | 5.5 | | UK HPI3 | 2.8 | | (24.8) | | (5.2) | | 10.0 | | 14.6 | | UK bank rate6 | 5.1 | | 3.5 | | 1.7 | | 0.6 | | 1.1 | | US GDP1 | 2.7 | | (1.3) | | (1.3) | | 3.3 | | 2.9 | | US unemployment4 | 4.1 | | 5.8 | | 7.2 | | 6.2 | | 5.5 | | US HPI5 | 6.5 | | (8.0) | | (0.7) | | 5.2 | | 4.0 | | US federal funds rate6 | 5.1 | | 2.5 | | 0.6 | | 0.8 | | 1.5 | | | | | | | | | Downside 1 | | | | | | UK GDP1 | 1.0 | | (0.5) | | 0.1 | | 2.1 | | 1.9 | | UK unemployment2 | 4.3 | | 5.3 | | 6.3 | | 5.5 | | 5.0 | | UK HPI3 | 2.8 | | (11.6) | | (1.8) | | 7.2 | | 8.7 | | UK bank rate6 | 5.1 | | 3.9 | | 2.9 | | 2.3 | | 2.4 | | US GDP1 | 2.7 | | 0.3 | | 0.4 | | 2.7 | | 2.4 | | US unemployment4 | 4.1 | | 5.1 | | 5.7 | | 5.2 | | 4.9 | | US HPI5 | 6.5 | | (2.7) | | 1.0 | | 4.1 | | 3.5 | | US federal funds rate6 | 5.1 | | 3.4 | | 2.3 | | 2.3 | | 2.7 | | | | | | | | | Upside 2 | | | | | | UK GDP1 | 1.0 | | 3.0 | | 3.7 | | 2.9 | | 2.4 | | UK unemployment2 | 4.3 | | 3.8 | | 3.4 | | 3.5 | | 3.5 | | UK HPI3 | 2.8 | | 11.9 | | 8.4 | | 5.1 | | 4.1 | | UK bank rate6 | 5.1 | | 3.9 | | 2.9 | | 2.8 | | 2.8 | | US GDP1 | 2.7 | | 2.8 | | 3.1 | | 2.8 | | 2.8 | | US unemployment4 | 4.1 | | 3.8 | | 3.5 | | 3.5 | | 3.5 | | US HPI5 | 6.5 | | 6.2 | | 4.7 | | 4.8 | | 4.9 | | US federal funds rate6 | 5.1 | | 3.7 | | 3.3 | | 3.1 | | 2.8 | | | | | | | | | Upside 1 | | | | | | UK GDP1 | 1.0 | | 2.2 | | 2.6 | | 2.2 | | 2.0 | | UK unemployment2 | 4.3 | | 4.1 | | 4.0 | | 4.0 | | 4.0 | | UK HPI3 | 2.8 | | 7.6 | | 4.9 | | 4.8 | | 3.5 | | UK bank rate6 | 5.1 | | 4.1 | | 3.5 | | 3.4 | | 3.3 | | US GDP1 | 2.7 | | 2.4 | | 2.6 | | 2.4 | | 2.4 | | US unemployment4 | 4.1 | | 4.0 | | 3.9 | | 3.9 | | 3.9 | | US HPI5 | 6.5 | | 4.4 | | 3.7 | | 3.9 | | 3.9 | | US federal funds rate6 | 5.1 | | 4.0 | | 3.8 | | 3.6 | | 3.3 | |
1.Average Real GDP seasonally adjusted change in year. 2.Average UK unemployment rate 16-year+. 3.Change in year end UK HPI = Halifax All Houses, All Buyers index, relative to prior year end. 4.Average US civilian unemployment rate 16-year+. 5.Change in year end US HPI = FHFA House Price Index, relative to prior year end. 6.Average rate. | | | | | | | | | | | | | | | | | | | Scenario weighting | | | | | | | Upside 2 | Upside 1 | Baseline | Downside 1 | Downside 2 | | % | % | % | % | % | | As at 30 June 2025 | | | | | | | Scenario weighting | 15.5 | | 26.4 | | 34.4 | | 15.2 | | 8.5 | | | As at 31 December 2024 | | | | | | | Scenario weighting | 17.4 | | 26.8 | | 32.5 | | 14.7 | | 8.6 | |
Specific bases show the most extreme position of each variable in the context of the downside/upside scenarios. For example, the highest unemployment for downside scenarios, average unemployment for baseline scenarios and lowest unemployment for upside scenarios. GDP and HPI downside and upside scenario data represent the lowest and highest cumulative position relative to the start point in the 20 quarter period. | | | | | | | | | | | | | | | | | | Macroeconomic variables (specific bases)1 | | Upside 2 | Upside 1 | Baseline | Downside 1 | Downside 2 | | As at 30 June 2025 | % | % | % | % | % | UK GDP2 | 14.5 | | 10.9 | | 1.3 | | (1.3) | | (4.0) | | UK unemployment3 | 3.7 | | 4.2 | | 4.6 | | 6.5 | | 8.4 | | UK HPI4 | 35.8 | | 25.0 | | 2.8 | | (13.2) | | (28.1) | | UK bank rate3 | 2.5 | | 3.3 | | 3.9 | | 4.6 | | 4.6 | | US GDP2 | 14.8 | | 12.0 | | 1.8 | | (1.4) | | (5.3) | | US unemployment3 | 3.9 | | 4.1 | | 4.5 | | 6.5 | | 8.4 | | US HPI4 | 27.1 | | 19.0 | | 2.2 | | (2.2) | | (8.4) | | US federal funds rate3 | 2.8 | | 3.3 | | 3.8 | | 4.5 | | 4.5 | | | | | | | | | As at 31 December 2024 | | | | | | UK GDP2 | 15.0 | | 11.6 | | 1.4 | | 0.2 | | (2.9) | | UK unemployment3 | 3.4 | | 3.9 | | 4.4 | | 6.5 | | 8.4 | | UK HPI4 | 36.3 | | 25.9 | | 3.0 | | (11.3) | | (26.8) | | UK bank rate3 | 2.8 | | 3.3 | | 4.2 | | 5.3 | | 5.3 | | US GDP2 | 14.9 | | 12.8 | | 2.2 | | 0.4 | | (2.1) | | US unemployment3 | 3.5 | | 3.8 | | 4.2 | | 5.9 | | 7.5 | | US HPI4 | 30.1 | | 24.4 | | 3.5 | | 1.1 | | (4.0) | | US federal funds rate3 | 2.8 | | 3.3 | | 4.2 | | 5.3 | | 5.3 | |
1UK GDP = Real GDP growth seasonally adjusted; UK unemployment = UK unemployment rate 16-year+; UK HPI (31.12.24) = Halifax All Houses, All Buyers Index; UK HPI (30.06.25) = Halifax HPI Meth2 All Houses, All Buyers index; US GDP = Real GDP growth seasonally adjusted; US unemployment = US civilian unemployment rate 16-year+; US HPI = FHFA House Price Index. 20 quarter period starts from Q125 (2024: Q124). 2Maximum growth relative to Q424 (2024: Q423), based on 20 quarter period in Upside scenarios; 5-year yearly average Compound Annual Growth Rate (CAGR) in Baseline; minimum growth relative to Q424 (2024: Q423), based on 20 quarter period in Downside scenarios. 3Lowest quarter in 20 quarter period in Upside scenarios; 5-year average in Baseline; highest quarter 20 quarter period in Downside scenarios. 4Maximum growth relative to Q424 (2024: Q423), based on 20 quarter period in Upside scenarios; 5-year quarter end CAGR in Baseline; minimum growth relative to Q424 (2024: Q423), based on 20 quarter period in Downside scenarios. Average basis represents the average quarterly value of variables in the 20 quarter period with GDP and HPI based on yearly average and quarterly CAGRs respectively. | | | | | | | | | | | | | | | | | | Macroeconomic variables (5-year averages)1 | | Upside 2 | Upside 1 | Baseline | Downside 1 | Downside 2 | | As at 30 June 2025 | % | % | % | % | % | UK GDP2 | 2.6 | | 2.0 | | 1.3 | | 0.9 | | 0.5 | | UK unemployment3 | 3.9 | | 4.3 | | 4.6 | | 5.4 | | 6.2 | | UK HPI4 | 6.3 | | 4.6 | | 2.8 | | 0.9 | | (1.1) | | UK bank rate3 | 3.0 | | 3.5 | | 3.9 | | 2.9 | | 1.6 | | US GDP2 | 2.8 | | 2.3 | | 1.8 | | 1.0 | | 0.1 | | US unemployment3 | 3.9 | | 4.2 | | 4.5 | | 5.4 | | 6.4 | | US HPI4 | 4.9 | | 3.5 | | 2.2 | | 1.9 | | 1.7 | | US federal funds rate3 | 3.1 | | 3.6 | | 3.8 | | 3.3 | | 2.7 | | | | | | | | | As at 31 December 2024 | | | | | | UK GDP2 | 2.6 | | 2.0 | | 1.4 | | 0.9 | | 0.5 | | UK unemployment3 | 3.7 | | 4.0 | | 4.4 | | 5.3 | | 6.1 | | UK HPI4 | 6.4 | | 4.7 | | 3.0 | | 0.8 | | (1.6) | | UK bank rate3 | 3.5 | | 3.9 | | 4.2 | | 3.3 | | 2.4 | | US GDP2 | 2.9 | | 2.5 | | 2.2 | | 1.7 | | 1.2 | | US unemployment3 | 3.7 | | 3.9 | | 4.2 | | 5.0 | | 5.8 | | US HPI4 | 5.4 | | 4.5 | | 3.5 | | 2.4 | | 1.2 | | US federal funds rate3 | 3.6 | | 4.0 | | 4.2 | | 3.2 | | 2.1 | |
1UK GDP = Real GDP growth seasonally adjusted; UK unemployment = UK unemployment rate 16-year+; UK HPI (31.12.24) = Halifax All Houses, All Buyers Index; UK HPI (30.06.25) = Halifax HPI Meth2 All Houses, All Buyers index; US GDP = Real GDP growth seasonally adjusted; US unemployment = US civilian unemployment rate 16-year+; US HPI = FHFA House Price Index. 20 quarter period starts from Q125 (2024: Q124). 25-year yearly average CAGR, starting 2024 (2024: 2023). 35-year average. Period based on 20 quarters from Q125 (2024: Q124). 45-year quarter end CAGR, starting Q424 (2024: Q423).
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| Disclosure of non-current assets or disposal groups classified as held for sale |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Loans and advances to customers classified as assets held for sale | | Stage 1 | Stage 2 | Stage 3 | Total | | Gross | ECL | Coverage | Gross | ECL | Coverage | Gross | ECL | Coverage | Gross | ECL | Coverage | | As at 30.06.25 | £m | £m | % | £m | £m | % | £m | £m | % | £m | £m | % | | Retail credit cards - US | 4,988 | | 55 | | 1.1 | | 613 | | 139 | | 22.7 | | 52 | | 42 | | 80.8 | | 5,653 | | 236 | | 4.2 | | | Retail credit cards - Germany | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | | Retail other - Germany | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | | Corporate loans - US | 43 | | 1 | | 2.3 | | 7 | | 2 | | 28.6 | | 1 | | 1 | | 100.0 | | 51 | | 4 | | 7.8 | | Total | 5,031 | | 56 | | 1.1 | | 620 | | 141 | | 22.7 | | 53 | | 43 | | 81.1 | | 5,704 | | 240 | | 4.2 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | As at 31.12.24 | | | | | | | | | | | | | | Retail credit cards - US | 5,495 | | 64 | | 1.2 | | 689 | | 161 | | 23.4 | | 57 | | 46 | | 80.7 | | 6,241 | | 271 | | 4.3 | | | Retail credit cards - Germany | 1,908 | | 18 | | 0.9 | | 307 | | 29 | | 9.4 | | 93 | | 69 | | 74.2 | | 2,308 | | 116 | | 5.0 | | | Retail other - Germany | 1,134 | | 16 | | 1.4 | | 220 | | 33 | | 15.0 | | 71 | | 48 | | 67.6 | | 1,425 | | 97 | | 6.8 | | | Corporate loans - US | 49 | | 1 | | 2.0 | | 9 | | 3 | | 33.3 | | 1 | | 1 | | 100.0 | | 59 | | 5 | | 8.5 | | Total | 8,586 | | 99 | | 1.2 | | 1,225 | | 226 | | 18.4 | | 222 | | 164 | | 73.9 | | 10,033 | | 489 | | 4.9 | |
| | | | | | | | | | As at 30.06.25 | As at 31.12.24 | | Assets included in disposal groups classified as held for sale | £m | £m | | Loans and advances to customers | 5,464 | 9,544 | | Intangible assets | 10 | 25 | | Property, plant and equipment | — | 24 | | Other assets | 111 | 261 | | Total assets classified as held for sale | 5,585 | 9,854 | | | | | Liabilities included in disposal groups classified as held for sale | | | | Deposits from customers | — | 3,647 | | Other liabilities | — | 77 | | Provisions | — | 2 | | Total liabilities classified as held for sale | — | 3,726 | | | | | Net assets classified as held for sale | 5,585 | 6,128 |
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| Disclosure of management Value at Risk |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Management VaR (95%) by asset class | | | | | | | | | | | | | | | | | | | | Half year ended 30.06.25 | | Half year ended 31.12.24 | | Half year ended 30.06.24 | | Average | High | Low | | Average | High | Low | | Average | High | Low | | £m | £m | £m | | £m | £m | £m | | £m | £m | £m | | Credit risk | 16 | 20 | 13 | | 20 | 24 | 17 | | 22 | 27 | 19 | | Interest rate risk | 15 | 25 | 5 | | 14 | 21 | 6 | | 16 | 25 | 9 | | Equity risk | 8 | 14 | 5 | | 5 | 12 | 2 | | 6 | 9 | 4 | | Basis risk | 5 | 7 | 4 | | 5 | 6 | 4 | | 6 | 8 | 4 | | Spread risk | 5 | 7 | 4 | | 4 | 7 | 3 | | 5 | 7 | 4 | | Foreign exchange risk | 4 | 7 | 2 | | 4 | 7 | 3 | | 4 | 9 | 2 | | Commodity risk | — | 1 | — | | — | 1 | — | | — | 1 | — | | Inflation risk | 5 | 8 | 3 | | 4 | 5 | 2 | | 4 | 5 | 2 | Diversification effect1 | (39) | n/a | n/a | | (32) | n/a | n/a | | (34) | n/a | n/a | | Total management VaR | 19 | 31 | 10 | | 24 | 32 | 15 | | 29 | 36 | 20 |
1Diversification effects recognise that forecast losses from different assets or businesses are unlikely to occur concurrently, hence the expected aggregate loss is lower than the sum of the expected losses from each area. Historical correlations between losses are taken into account in making these assessments. The high and low VaR figures reported for each category did not necessarily occur on the same day as the high and low total management VaR. Consequently, a diversification effect balance for the high and low VaR figures would not be meaningful and is therefore omitted from the above table.
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