| Assets and liabilities held at fair value disaggregated by valuation technique (fair value hierarchy) and Level 3 assets and liabilities held at fair value disaggregated by product type |
The following table shows the Group’s assets and liabilities that are held at fair value disaggregated by valuation technique (fair value hierarchy) and balance sheet classification: | | | | | | | | | | | | | | | | Valuation technique using | | | Quoted market prices | Observable inputs | Significant unobservable inputs | | | (Level 1) | (Level 2) | (Level 3) | Total | As at 30.06.25 | £m | £m | £m | £m | | Trading portfolio assets | 87,555 | 89,789 | 9,879 | 187,223 | | Financial assets at fair value through the income statement | 7,702 | 202,019 | 8,831 | 218,552 | | Derivative financial instruments | 108 | 278,097 | 1,989 | 280,194 | | Financial assets at fair value through other comprehensive income | 24,755 | 49,378 | 3,178 | 77,311 | | Investment property | — | — | 42 | 42 | | Total assets | 120,120 | 619,283 | 23,919 | 763,322 | | Trading portfolio liabilities | (39,606) | (29,275) | (424) | (69,305) | | Financial liabilities designated at fair value | (1,576) | (313,061) | (2,848) | (317,485) | | Derivative financial instruments | (93) | (262,422) | (2,861) | (265,376) | | Total liabilities | (41,275) | (604,758) | (6,133) | (652,166) | | | | | | As at 31.12.24 | | | | | | Trading portfolio assets | 77,761 | 78,577 | 10,115 | 166,453 | | Financial assets at fair value through the income statement | 3,526 | 181,784 | 8,424 | 193,734 | | Derivative financial instruments | 101 | 291,352 | 2,077 | 293,530 | | Financial assets at fair value through other comprehensive income | 25,913 | 48,407 | 3,739 | 78,059 | | Investment property | — | — | 9 | 9 | | Total assets | 107,301 | 600,120 | 24,364 | 731,785 | | Trading portfolio liabilities | (27,694) | (28,819) | (395) | (56,908) | | Financial liabilities designated at fair value | (181) | (278,785) | (3,258) | (282,224) | | Derivative financial instruments | (86) | (276,148) | (3,181) | (279,415) | | Total liabilities | (27,961) | (583,752) | (6,834) | (618,547) |
The following table shows the Group’s Level 3 assets and liabilities that are held at fair value disaggregated by product type: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | As at 30.06.25 | Loans | Corporate debt | Asset backed securities | Government debt | Private equity investments | Issued debt | Reverse repurchase and repurchase agreements | Interest rate derivatives | Equity derivatives | Other products1 | Total | | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | | Trading portfolio assets | 5,468 | | 1,843 | | 883 | | 1,199 | | — | | — | | — | | — | | — | | 486 | | 9,879 | | | Financial assets at fair value through the income statement | 6,096 | | 835 | | 178 | | 32 | | 1,187 | | — | | 402 | | — | | — | | 101 | | 8,831 | | | Derivative financial instruments | — | | — | | — | | — | | — | | — | | — | | 915 | | 617 | | 457 | | 1,989 | | | Financial assets at fair value through other comprehensive income | 2,350 | | 67 | | 757 | | — | | 4 | | — | | — | | — | | — | | — | | 3,178 | | | Investment property | — | | — | | — | | — | | — | | — | | — | | — | | — | | 42 | | 42 | | | Total assets | 13,914 | | 2,745 | | 1,818 | | 1,231 | | 1,191 | | — | | 402 | | 915 | | 617 | | 1,086 | | 23,919 | | | Trading portfolio liabilities | — | | (36) | | — | | (325) | | — | | — | | — | | — | | — | | (63) | | (424) | | | Financial liabilities designated at fair value | — | | — | | — | | — | | (17) | | (1,575) | | (1,240) | | — | | — | | (16) | | (2,848) | | | Derivative financial instruments | — | | — | | — | | — | | — | | — | | — | | (774) | | (1,349) | | (738) | | (2,861) | | | Total liabilities | — | | (36) | | — | | (325) | | (17) | | (1,575) | | (1,240) | | (774) | | (1,349) | | (817) | | (6,133) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | As at 31.12.24 | Loans | Corporate debt | Asset backed securities | Government debt | Private equity investments | Issued debt | Reverse repurchase and repurchase agreements | Interest rate derivatives | Equity derivatives | Other products1 | Total | | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | | Trading portfolio assets | 6,146 | | 1,590 | | 991 | | 1,018 | | — | | — | | — | | — | | — | | 370 | | 10,115 | | | Financial assets at fair value through the income statement | 5,455 | | 913 | | 139 | | 35 | | 1,166 | | — | | 539 | | — | | — | | 177 | | 8,424 | | | Derivative financial instruments | — | | — | | — | | — | | — | | — | | — | | 1,193 | | 481 | | 403 | | 2,077 | | | Financial assets at fair value through other comprehensive income | 2,858 | | 108 | | 757 | | 12 | | 4 | | — | | — | | — | | — | | — | | 3,739 | | | Investment property | — | | — | | — | | — | | — | | — | | — | | — | | — | | 9 | | 9 | | | Total assets | 14,459 | | 2,611 | | 1,887 | | 1,065 | | 1,170 | | — | | 539 | | 1,193 | | 481 | | 959 | | 24,364 | | | Trading portfolio liabilities | — | | (374) | | (6) | | — | | — | | — | | — | | — | | — | | (15) | | (395) | | | Financial liabilities designated at fair value | — | | — | | — | | — | | (17) | | (1,842) | | (1,379) | | — | | — | | (20) | | (3,258) | | | Derivative financial instruments | — | | — | | — | | — | | — | | — | | — | | (1,013) | | (1,219) | | (949) | | (3,181) | | | Total liabilities | — | | (374) | | (6) | | — | | (17) | | (1,842) | | (1,379) | | (1,013) | | (1,219) | | (984) | | (6,834) | |
1 Other products include funds and fund-linked products, equity cash products, investment property, credit derivatives and foreign exchange derivatives.
|
| Analysis of movements in Level 3 assets and liabilities |
The following table summarises the movements in the balances of Level 3 assets and liabilities during the six-month period. Transfers have been reflected as if they had taken place at the beginning of the period. Asset and liability transfers between Level 2 and Level 3 are primarily due to i) an increase or decrease in observable market activity related to an input or ii) a change in the significance of the unobservable input, with assets and liabilities classified as Level 3 if an unobservable input is deemed significant. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Analysis of movements in Level 3 assets and liabilities | | | | | | | | As at 01.01.25 | | | | | Total gains and (losses) in the period recognised in the income statement | Total gains and (losses) in the period recognised in OCI | Transfers | As at 30.06.25 | | Purchases | Sales | Issues | Settlements | Trading income2 | Other income | In | Out | | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | | Trading portfolio assets | 10,115 | | 4,125 | | (3,524) | | — | | (1,147) | | 136 | | — | | — | | 439 | | (265) | | 9,879 | | | Financial assets at fair value through the income statement | 8,424 | | 2,469 | | (1,200) | | — | | (573) | | (75) | | 8 | | — | | 63 | | (285) | | 8,831 | | | Financial assets at fair value through other comprehensive income | 3,739 | | 566 | | (1,447) | | — | | (6) | | 2 | | 29 | | — | | 307 | | (12) | | 3,178 | | | Investment property | 9 | | 33 | | — | | — | | — | | — | | — | | — | | — | | — | | 42 | | | Trading portfolio liabilities | (395) | | (46) | | 28 | | — | | — | | 37 | | — | | — | | (57) | | 9 | | (424) | | | Financial liabilities designated at fair value | (3,258) | | — | | 91 | | (617) | | 31 | | 88 | | — | | — | | (179) | | 996 | | (2,848) | | Net derivative financial instruments1 | (1,104) | | (17) | | 249 | | — | | — | | 166 | | 3 | | — | | (34) | | (135) | | (872) | | | Total | 17,530 | | 7,130 | | (5,803) | | (617) | | (1,695) | | 354 | | 40 | | — | | 539 | | 308 | | 17,786 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Analysis of movements in Level 3 assets and liabilities | | | | | | | | As at 01.01.24 | | | | | Total gains and (losses) in the period recognised in the income statement | Total gains and (losses) in the period recognised in OCI | Transfers | As at 30.06.24 | | Purchases | Sales | Issues | Settlements | Trading income2 | Other income | In | Out | | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | | Trading portfolio assets | 6,509 | | 3,113 | | (1,007) | | — | | (714) | | (7) | | — | | — | | 1,046 | | (214) | | 8,726 | | | Financial assets at fair value through the income statement | 8,249 | | 2,804 | | (1,484) | | — | | (380) | | (19) | | 174 | | — | | 291 | | (118) | | 9,517 | | | Financial assets at fair value through other comprehensive income | 1,078 | | 1,854 | | (42) | | — | | — | | 1 | | 11 | | — | | — | | (448) | | 2,454 | | | Investment property | 2 | | — | | (1) | | — | | — | | — | | — | | — | | — | | — | | 1 | | | Trading portfolio liabilities | (368) | | (24) | | 17 | | — | | — | | 18 | | — | | — | | (34) | | 6 | | (385) | | | Financial liabilities designated at fair value | (1,222) | | (6) | | 28 | | (627) | | 16 | | (27) | | (21) | | — | | (881) | | 248 | | (2,492) | | Net derivative financial instruments1 | (1,113) | | (182) | | 32 | | (19) | | (169) | | (181) | | — | | — | | 21 | | 109 | | (1,502) | | | Total | 13,135 | | 7,559 | | (2,457) | | (646) | | (1,247) | | (215) | | 164 | | — | | 443 | | (417) | | 16,319 | |
1Derivative financial instruments are presented on a net basis. On a gross basis, derivative financial assets were £1,989m (June 2024: £2,833m) and derivative financial liabilities were £(2,861)m (June 2024: £(4,335)m). 2Trading income represents gains and losses on Level 3 financial instruments which in the majority are offset by losses and gains on financial instruments disclosed in Level 2.
|
| Comparison of carrying amounts and fair values for assets and liabilities not held at fair value |
The following table summarises the fair value of financial assets and liabilities measured at amortised cost on the Group’s balance sheet: | | | | | | | | | | | | | | | | As at 30.06.25 | As at 31.12.24 | | Carrying amount | Fair value | Carrying amount | Fair value | | Financial assets | £m | £m | £m | £m | | Debt securities at amortised cost | 69,936 | 69,528 | 68,210 | 67,354 | | Loans and advances at amortised cost | 347,828 | 345,952 | 346,273 | 343,016 | | Reverse repurchase agreements and other similar secured lending | 7,917 | 7,917 | 4,734 | 4,734 | | | | | | | Financial liabilities | | | | | | Deposits at amortised cost | (564,535) | (564,669) | (560,663) | (560,393) | | Repurchase agreements and other similar secured borrowing | (35,469) | (35,469) | (39,415) | (39,415) | | Debt securities in issue | (104,910) | (106,837) | (92,402) | (94,463) | | Subordinated liabilities | (12,529) | (12,978) | (11,921) | (12,434) |
|