v3.26.1
ACQUISITION OF TSB (Tables)
 6 Months Ended
Jun. 30, 2026
Business Combinations [Abstract]  
Disclosure of detailed information about business combination [text block] The table below sets out the fair values of the identifiable assets and liabilities acquired.
Book value at
30 April 2026
FV Adjustments
Fair Value at
30 April 2026
£m
£m
£m
Assets
Cash and balances at central banks
4,553
–
4,553
Derivative financial instruments
1,593
–
1,593
Loans and advances to banks
193
–
193
Loans and advances to customers
36,140
(157)
35,983
Other financial assets at amortised cost
1,867
(46)
1,821
Macro hedge of interest rate risk
(116)
116
–
Financial assets at fair value through other comprehensive income
447
–
447
Intangible assets
123
246
369
Property, plant and equipment
198
(53)
145
Deferred tax assets
18
(18)
–
Other assets
121
–
121
Total assets
45,137
88
45,225
Liabilities
Deposits by banks
595
–
595
Deposits by customers
35,041
(68)
34,973
Derivative financial instruments
530
–
530
Debt securities in issue
4,831
10
4,841
Macro hedge of interest rate risk
(82)
82
–
Other liabilities
1,544
(38)
1,506
Provisions
19
(5)
14
Deferred tax liabilities
–
17
17
Subordinated liabilities
298
1
299
Total liabilities
42,776
(1)
42,775
Fair value of net assets acquired
2,361
89
2,450
Goodwill arising on acquisition
–
–
669
Non-equity securities purchased
–
–
962
Total consideration Paid/Transferred
2,361
89
4,081
Disclosure of significant unobservable inputs used in fair value measurement of assets The table below shows the impact on the valuation of applying a reasonably possible change of +/-50bps to the discount rate to reflect a reasonable range of
market participant return expectations and the inherent uncertainty in estimating the appropriate discount rate.
Funding spread assumption
Impact on mortgage fair value
Impact on CDI
Net impact on purchase price allocation
£m
£m
£m
+/-25bps
(51)
68
17
Discount Rate assumption
Impact on mortgage fair value
Impact on CDI
Net impact on purchase price allocation
+/-50bps
(12)
(3)
(15)
Disclosure of cash flow from acquisition
At 30 April 2026
£m
Cash, cash balances at central banks and other demand deposits on acquisition
4,553
Adjustments for items not classified as cash and cash equivalents 1
(750)
Cash and cash equivalents acquired
3,803
Cash paid for ordinary shares
(2,863)
Cash paid for AT1 securities
(255)
Cash paid for debt securities
(962)
Net cash flow from acquisition of TSB
(277)
1 Reserves Collateralisation Accounts (RCAs).