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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Osb Group Plc | LSE:OSB | London | Ordinary Share | GB00BLDRH360 | ORD 1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 392.40 | 393.80 | 394.40 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
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41. Reconciliation of cash flows for financing activities
The tables below show a reconciliation of the Group's and Bank's
liabilities classified as financing activities within the Statement of
Cash Flows:
Amounts
Group owed to Debt
credit securities in Subordinated
institutions issue liabilities
PSBs
(see note 32) (see note 35) (see
note 39) (see note 40) Total
GBPm GBPm GBPm GBPm GBPm
--------------------------------------
At 31 December 2017 Cash movements: Principal 1,250.3 -- 10.9 37.6 1,298.8
drawdowns Principal repayments Non-cash 330.7 -- -- -- 330.7
movement: -- -- (0.1) -- (0.1)
Accrued interest movement 3.0 -- -- -- 3.0
At 31 December 2018 Cash movements: Principal 1,584.0 -- 10.8 37.6 1,632.4
drawdowns Principal repayments 587.7 285.0 -- -- 872.7
Non-cash movements: (273.7) (64.6) (0.2) -- (338.5)
CCFS Combination 1,168.4 75.1 -- -- 1,243.5
Accrued interest movement 2.4 0.8 -- -- 3.2
--------------------------------------
At 31 December 2019 3,068.8 296.3 10.6 37.6 3,413.3
--------------------------------------
Amounts
owed to
credit Subordinated
Deemed
institutions loan liabilities PSBs
(see
note (see note (see note
(see note 32) 21) 39) 40) Total
Bank GBPm GBPm GBPm GBPm GBPm
At 31 December 2017 1,250.3 -- 10.9 37.6 1,298.8
Cash movements:
Principal drawdowns 330.7 -- -- -- 330.7
Principal repayments -- -- (0.1) -- (0.1)
Non-cash movement:
Accrued interest
movement 3.0 -- -- -- 3.0
At 31 December 2018 1,584.0 -- 10.8 37.6 1,632.4
Cash movements:
Principal drawdowns 316.8 285.0 -- -- 601.8
Principal repayments (230.0) (44.8) (0.2) -- (275.0)
Non-cash movements:
CCFS Combination -- -- -- -- --
Accrued interest
movement 0.3 -- -- -- 0.3
At 31 December 2019 1,671.1 240.2 10.6 37.6 1,959.5
42. Share capital
Number of shares authorised Nominal
and value Premium
Ordinary shares -- par value GBP0.01: fully paid GBPm GBPm
--------------------------------- ----------
At 1 January 2018 243,464,688 2.4 158.4
Shares issued under OSB employee share
plans 1,022,849 -- 0.4
At 31 December 2018 244,487,537 2.4 158.8
Shares issued under OSB employee share plans CCFS 1,312,862 0.1 0.3
Combination 199,643,055 2.0 705.1
---------
At 31 December 2019 445,443,454 4.5 864.2
------------- --------- --------
The holders of ordinary shares are entitled to receive dividends as
declared from time to time, and are entitled to one vote per share at
meetings of the Bank. All ordinary shares rank equally with regard to
the Bank's residual assets.
43. Other reserves
The Group's and Bank's other reserves are as follows:
Group Group
2019 2018 Bank 2019 Bank 2018
GBPm GBPm GBPm GBPm
----------- ----------- --------------- -------------
Distributable:
Share-based payment 5.6 4.7 5.3 4.7
Non-distributable:
Capital contribution 6.5 6.5 6.2 6.2
Transfer (12.8) (12.8) (15.2) (15.2)
Own shares (3.7) -- (3.7) --
FVOCI 0.5 (0.1) -- (0.1)
Foreign exchange (1.0) (0.4) -- --
Equity bonds 60.0 60.0 60.0 60.0
55.1 57.9 52.6 55.6
Capital contribution
The capital contribution reserve relates to one-off nil price share
awards of shares in the Bank granted to certain senior managers on its
admission to the London Stock Exchange in June 2014. The awards were
granted by the Bank's major shareholder at the time of the IPO.
Transfer reserve
The transfer reserve represents the difference between the value of net
assets transferred to the Group from Kent Reliance Building Society in
2011 and the value of shares issued to the A ordinary shareholders.
Own shares
Following the Combination, the Bank has adopted the look-through
approach for the CCFS EBT, including the EBT within the Bank. As at 31
December 2019 the CCFS EBT held 862,555 OSB shares which were acquired
at a cost of GBP3.7m. The Group and Bank have shown these shares as a
deduction from equity.
FVOCI reserve
The FVOCI reserve represents the cumulative net change in the fair value
of investment securities measured at FVOCI.
Foreign exchange
The foreign exchange reserve relates to the revaluation of the Bank's
Indian subsidiary, OSB India Private Limited.
Equity bonds
Equity bonds comprise GBP60.0m of Fixed Rate Resetting Perpetual
Subordinated Contingent Convertible Securities ('AT1 securities') that
qualify as Additional Tier 1 capital under the Capital Requirements
Directive and Regulation ('CRD IV'). The securities will be subject to
full conversion into ordinary shares of OSB in the event that its CET1
capital ratio falls below 7%. The AT1 securities will pay interest at a
rate of 9.125% per annum until the first reset date of 25 May 2022, with
the reset interest rate equal to 835.9 basis points over the five-year
semi-annual mid-swap rate for such a period. Interest is paid
semi-annually on 25 May and 25 November. OSB may, at any time, cancel
any interest payment at its full discretion and must cancel interest
payments in certain circumstances specified in the terms and conditions
of the AT1 securities. The AT1 securities are perpetual with no fixed
redemption date. OSB may, in its discretion and subject to satisfying
certain conditions, redeem all (but not some) of the AT1 securities at
the principal amount outstanding plus any accrued but unpaid interest
from the first reset date and on any interest payment date thereafter
Financial commitments and guarantees
1. As at 31 December 2019, the Group's contracted or anticipated capital
expenditure commitments not provided for amounted to nil (2018: GBP0.2m).
2018 consisted of refurbishment and fixture costs for the relocation of
the Interbay office.
2. The Group's minimum lease commitments under operating leases not subject
to IFRS 16 (2018: all operating leases) are summarised in the table
below:
Group Group
2019 2018 Bank 2019 Bank 2018
GBPm GBPm GBPm GBPm
----------- ----------- --------------- -------------
0.6 0.7 0.1 0.5
Land and buildings: due within: One year -- 2.3 -- 1.5
Two to five years More than five years -- 1.5 -- 0.5
0.6 4.5 0.1 2.5
----------- ----------- --------------- -------------
c) Undrawn loan facilities:
Group Group
2019 2018 Bank 2019 Bank 2018
GBPm GBPm GBPm GBPm
----------- ----------- --------------- -------------
OSB mortgages 639.2 704.6 459.7 487.8
CCFS mortgages 568.1 -- -- --
Asset Finance 3.6 6.1 -- --
1,210.9 710.7 459.7 487.8
Undrawn loan facilities are approved loan applications which have not
yet been exercised. They are payable on demand and are usually drawn
down or expire within three months.
1. The Group did not have any issued financial guarantees as at 31 December
2019 (2018: nil).
45. Risk Management
Overview
Financial instruments form the vast majority of the Group's and Bank's
assets and liabilities. The Group manages risk on a consolidated basis,
and risk disclosures that follow are provided on this basis.
Types of financial instrument
Financial instruments are a broad definition which includes financial
assets, financial liabilities and equity instruments. The main financial
assets of the Group are loans to customers and liquid assets, which in
turn consist of cash in the BoE call accounts, call accounts with other
credit institutions and UK and EU sovereign debt. These are funded by a
combination of financial liabilities and equity instruments. Financial
liability funding comes predominantly from retail deposits and drawdowns
under the BoE TFS and ILTR, supported by debt securities, subordinated
debt, wholesale and other funding. Equity instruments include own shares
and AT1
securities meeting the equity classification criteria. The Group's main
activity is mortgage lending; it raises funds or invests in particular
types of financial assets to meet customer demand and manage the risks
arising from its operations. The Group does not trade in financial
instruments for speculative purposes.
The Group uses derivative instruments to manage its financial risks.
Derivative financial instruments ('derivatives') are financial
instruments whose value changes in response to changes in underlying
variables such as interest rates. The most common derivatives are
futures, forwards and swaps. Of these, the Group only uses swaps.
Derivatives are used by the Group solely to reduce ('hedge') the risk of
loss arising from changes in market rates. Derivatives are not used for
speculative purposes.
Types of derivatives and uses
The derivative instruments used by the Group in managing its risk
exposures are interest rate swaps. Interest rate swaps convert fixed
interest rates to floating or vice versa. As with other derivatives, the
underlying product is not sold and payments are based on notional
principal amounts.
Unhedged fixed rate liabilities create the risk of paying
above-the-market rate if interest rates subsequently decrease. Unhedged
fixed rate mortgages and liquid assets bear the opposite risk of income
below-the-market rate when rates go up. While fixed rate assets and
liabilities naturally hedge each other to a certain extent, this hedge
is usually never perfect because of maturity mismatches and principal
amounts.
The Group uses swaps to convert its instruments, such as mortgages,
deposits and liquid assets, from fixed or base rate-linked rates to
LIBOR-linked variable rates. This ensures a guaranteed margin between
the interest income and interest expense, regardless
of changes in the market rates.
The PRA and FCA have continued to encourage banks to transition away
from using LIBOR as a benchmark in all operations before the end of
2021. Throughout the UK banking sector LIBOR remains a key benchmark and
for each market impacted solutions to this issue are progressing through
various industry bodies.
In 2019 the Group set up an internal working group comprised of all of
the key business lines that are involved with this change with strong
oversight from the Compliance and Risk departments. Risk assessments are
currently underway to ensure this process is managed in a measured and
controlled fashion.
Types of risk
The principal financial risks to which the Group is exposed are credit,
liquidity and market risks, the latter comprising interest and exchange
rate risk. In addition to financial risks, the Group is exposed to
various other risks, most notably operational, conduct and regulatory,
which are covered in the Risk review on pages 52 to 57.
Credit risk
Credit risk is the risk that losses may arise as a result of the Group's
borrowers or market counterparties failing to meet their obligations to
repay.
The Group has adopted the Standardised Approach for assessment of credit
risk regulatory capital requirements. This approach considers risk
weightings as defined under Basel II and Basel III principles.
The classes of financial instruments to which the Group is most exposed
are loans and advances to customers, loans and advances to credit
institutions, cash in the BoE call account, call and current accounts
with other credit institutions and investment securities. The maximum
credit risk exposure equals the total carrying amount of the above
categories plus off-balance sheet undrawn committed mortgage facilities.
Credit risk -- loans and advances to customers
Credit risk associated with mortgage lending is largely driven by the
housing market and level of unemployment. A recession and/or high
interest rates could cause pressure within the market, resulting in
rising levels of arrears and repossessions.
All loan applications are assessed with reference to the Group's lending
policy. Changes to the policy are approved by the Board, with mandates
set for the approval of loan applications.
The Credit Committee and the ALCO regularly monitor lending activity,
taking appropriate actions to reprice products and adjust lending
criteria in order to control risk and manage exposure. Where necessary
and appropriate, changes to the lending policy are recommended to the
Group Risk Committee and the Board.
The following tables show the Group's and Bank's maximum exposure to
credit risk and the impact of collateral held as security, capped at the
gross exposure amount, by impairment stage. Capped collateral excludes
the impact of forced sale discounts and costs to sell.
Group 2019
---------------------------------------------------------------------------------------------------------
OSB CCFS Total
---------------------------------
Gross Capped Capped Gross Capped
carrying collateral Gross carrying collateral carrying collateral
amount held amount held amount held
GBPm GBPm GBPm GBPm GBPm GBPm
--------------- ---------------- -------------------- ------------- --------------- ----------------
Stage 1 10,046.9 9,987.1 7,240.0 7,239.5 17,286.9 17,226.6
Stage 2 442.4 441.8 307.1 307.0 749.5 748.8
Stage 3 277.7 275.2 16.7 16.7 294.4 291.9
Stage 3
(POCI) 53.6 50.1 83.2 83.1 136.8 133.2
--------------------
10,820.6 10,754.2 7,647.0 7,646.3 18,467.6 18,400.5
--------------------
2018
OSB CCFS
Gross Capped Gross Capped Gross Capped
carrying collateral carrying collateral carrying collateral
amount held amount held amount held
Group GBPm GBPm GBPm GBPm GBPm GBPm
Stage 1 8,286.8 8,274.5 -- -- 8,286.8 8,274.5
Stage 2 436.8 436.8 -- -- 436.8 436.8
Stage 3 225.4 224.2 -- -- 225.4 224.2
Stage 3
(POCI) 56.2 56.1 -- -- 56.2 56.1
9,005.2 8,991.6 -- -- 9,005.2 8,991.6
Bank 2019 2018
-------------------------------- ------------------------
Gross Capped Gross Capped
carrying collateral carrying collateral
amount held amount held
GBPm GBPm GBPm GBPm
--------------- ---------------
Stage 1 7,785.0 7,774.3 6,657.0 6,653.2
Stage 2 371.3 370.8 346.6 346.5
Stage 3 211.1 209.2 164.8 164.7
Stage 3 (POCI) 53.4 49.9 55.9 55.8
8,420.8 8,404.2 7,224.3 7,220.2
The Group's and Bank's main form of collateral held is property, based
in the UK and the Channel Islands.
The Group uses indexed loan-to-value ('LTV') ratios to assess the
quality of the uncapped collateral held. Property values are updated to
reflect changes in the HPI. A breakdown of loans and advances to
customers by indexed LTV is as follows:
Group 2019
-----------------------------------------
OSB CCFS Total
GBPm GBPm GBPm %
----------- ----------- ---------------
Band
0% -- 50% 1,732.6 567.8 2,300.4 12
50% -- 60% 1,301.8 612.3 1,914.1 10
60% -- 70% 2,435.7 1,588.5 4,024.2 22
70% -- 80% 4,182.1 4,236.3 8,418.4 46
80% -- 90% 946.0 641.5 1,587.5 9
90% -- 100% 91.1 0.6 91.7 --
>100% 131.3 -- 131.3 1
Total loans before provisions 10,820.6 7,647.0 18,467.6 100
OSB CCFS Total
Group GBPm GBPm GBPm %
Band
0% -- 50% 1,720.2 -- 1,720.2 19
50% -- 60% 1,355.6 -- 1,355.6 15
60% -- 70% 2,215.5 -- 2,215.5 25
70% -- 80% 3,041.8 -- 3,041.8 34
80% -- 90% 576.3 -- 576.3 6
90% -- 100% 65.2 -- 65.2 1
>100% 30.6 -- 30.6 --
Total loans before provisions 9,005.2 -- 9,005.2 100
The table below shows the LTV banding for the OSB
segments' two major lending streams:
OSB 2019 2018
----------------------------------------- -----------------------------------------
BTL/SME Residential Total BTL/SME Residential Total
GBPm GBPm GBPm % GBPm GBPm GBPm %
----------- --------------- ----------- ---------------
Band
0% -- 50% 905.9 826.7 1,732.6 16 935.8 784.4 1,720.2 19
50% -- 60% 1,062.8 239.0 1,301.8 12 1,105.9 249.7 1,355.6 15
60% -- 70% 2,240.2 195.5 2,435.7 23 2,021.4 194.1 2,215.5 25
70% -- 80% 3,993.5 188.6 4,182.1 38 2,864.5 177.3 3,041.8 34
80% -- 90% 621.4 324.6 946.0 9 414.1 162.2 576.3 6
90% -- 100% 45.1 46.0 91.1 1 32.9 32.3 65.2 1
>100% 114.3 17.0 131.3 1 14.6 16.0 30.6 --
Total loans
before
provisions 8,983.2 1,837.4 10,820.6 100 7,389.2 1,616.0 9,005.2 100
The tables below show the sub-segment LTV analysis of the OSB BTL/SME
lending stream:
OSB 2019
---------------------------------------------------------------
Residential Funding
Buy-to-Let Commercial development lines Total
GBPm GBPm GBPm GBPm GBPm
---------------
Band
0% -- 50% 579.9 96.5 125.7 103.8 905.9
50% -- 60% 894.3 119.8 5.0 43.7 1,062.8
60% -- 70% 1,994.1 210.2 5.0 30.9 2,240.2
70% -- 80% 3,514.5 445.7 -- 33.3 3,993.5
80% -- 90% 603.3 7.7 10.4 -- 621.4
90% -- 100% 38.9 1.4 -- 4.8 45.1
>100% 102.0 6.7 -- 5.6 114.3
Total loans
before
provisions 7,727.0 888.0 146.1 222.1 8,983.2
2018
-----------
Residential
Funding
Buy-to-Let Commercial development lines Total
OSB GBPm GBPm GBPm GBPm GBPm
Band
0% -- 50% 663.9 71.2 108.7 92.0 935.8
50% -- 60% 964.8 72.2 38.8 30.1 1,105.9
60% -- 70% 1,843.9 163.1 7.3 7.1 2,021.4
70% -- 80% 2,617.1 233.5 -- 13.9 2,864.5
80% -- 90% 408.3 4.8 1.0 -- 414.1
90% -- 100% 7.5 0.4 -- 25.0 32.9
>100% 12.0 2.6 -- -- 14.6
Total loans before
provisions 6,517.5 547.8 155.8 168.1 7,389.2
The tables below show the sub-segment LTV analysis of the OSB
Residential lending stream:
OSB 2019
----------------------------------------------
First Second Funding
charge charge lines Total
GBPm GBPm GBPm GBPm
------------- ---------- ----------
Band
0% -- 50% 708.0 115.4 3.3 826.7
50% -- 60% 158.1 77.5 3.4 239.0
60% -- 70% 122.3 70.9 2.3 195.5
70% -- 80% 137.0 49.5 2.1 188.6
80% -- 90% 291.7 32.3 0.6 324.6
90% -- 100% 40.0 5.7 0.3 46.0
>100% 9.5 7.3 0.2 17.0
----------
Total loans before provisions 1,466.6 358.6 12.2 1,837.4
----------
First Second Funding
charge charge lines Total
OSB GBPm GBPm GBPm GBPm
----------
Band
0% -- 50% 651.9 123.2 9.3 784.4
50% -- 60% 160.9 81.8 7.0 249.7
60% -- 70% 117.2 74.3 2.6 194.1
70% -- 80% 125.2 48.3 3.8 177.3
80% -- 90% 137.1 24.4 0.7 162.2
90% -- 100% 25.1 6.8 0.4 32.3
>100% 6.5 9.2 0.3 16.0
----------
Total loans before
provisions 1,223.9 368.0 24.1 1,616.0
----------
The table below shows the LTV banding for the CCFS segments' four major
lending streams:
CCFS 2019
---------------------------------------------------------------
Second
Buy-to- charge
let Residential Bridging lending Total
GBPm GBPm GBPm GBPm GBPm %
-----------
Band
0% -- 50% 144.7 261.8 121.1 40.2 567.8 7
50% -- 60% 283.9 253.1 29.4 45.9 612.3 8
60% -- 70% 957.0 538.6 26.6 66.3 1,588.5 21
70% -- 80% 3,246.6 897.7 37.5 54.5 4,236.3 56
80% -- 90% 321.5 301.4 1.2 17.4 641.5 8
90% -- 100% 0.2 0.4 -- -- 0.6 --
Total loans
before
provisions 4,953.9 2,253.0 215.8 224.3 7,647.0 100
The table below shows the LTV banding for the Bank's segments' two major
lending streams:
Bank 2019 2018
----------------------------------------- ------------------------------------------
BTL/SME Residential Total BTL/SME Residential Total
GBPm GBPm GBPm % GBPm GBPm GBPm %
----------- --------------- ------------ ---------------
Band
0% -- 50% 670.7 763.6 1,434.3 17 738.6 717.6 1,456.2 20
50% -- 60% 816.4 215.0 1,031.4 12 882.4 219.5 1,101.9 15
60% -- 70% 1,639.5 175.9 1,815.4 22 1,547.3 168.3 1,715.6 24
70% -- 80% 2,925.4 179.1 3,104.5 37 2,201.9 158.3 2,360.2 33
80% -- 90% 560.7 321.0 881.7 10 368.1 156.5 524.6 7
90% -- 100% 40.0 45.1 85.1 1 27.7 26.9 54.6 1
>100% 54.9 13.5 68.4 1 -- 11.2 11.2 --
Total loans
before
provisions 6,707.6 1,713.2 8,420.8 100 5,766.0 1,458.3 7,224.3 100
The tables below show the sub-segment LTV analysis of the Bank's BTL/SME
lending stream:
Bank 2019
----------------------------------------------------------------
Residential Funding
Buy-to-Let Commercial development lines Total
GBPm GBPm GBPm GBPm GBPm
--------------- ----------
Band
0% -- 50% 438.9 2.3 125.7 103.8 670.7
50% -- 60% 765.2 2.5 5.0 43.7 816.4
60% -- 70% 1,601.1 2.5 5.0 30.9 1,639.5
70% -- 80% 2,886.3 5.8 -- 33.3 2,925.4
80% -- 90% 549.8 0.5 10.4 -- 560.7
90% -- 100% 35.2 -- -- 4.8 40.0
>100% 45.8 3.5 -- 5.6 54.9
Total loans
before
provisions 6,322.3 17.1 146.1 222.1 6,707.6
2018
Residential Funding
Buy-to-Let Commercial development lines Total
Bank GBPm GBPm GBPm GBPm GBPm
Band
0% -- 50% 532.5 5.4 108.7 92.0 738.6
50% -- 60% 810.9 2.6 38.8 30.1 882.4
60% -- 70% 1,527.0 5.9 7.3 7.1 1,547.3
70% -- 80% 2,180.6 7.4 -- 13.9 2,201.9
80% -- 90% 367.0 0.1 1.0 -- 368.1
90% -- 100% 2.7 -- -- 25.0 27.7
Total loans before
provisions 5,420.7 21.4 155.8 168.1 5,766.0
For the year ended 31 December 2019
The tables below show the sub-segment LTV analysis of the Bank's
Residential lending stream:
Bank 2019
----------------------------------------------
First Second Funding
charge charge lines Total
GBPm GBPm GBPm GBPm
------------- ---------- ----------
Band
0% -- 50% 644.9 115.4 3.3 763.6
50% -- 60% 134.1 77.5 3.4 215.0
60% -- 70% 102.7 70.9 2.3 175.9
70% -- 80% 127.5 49.5 2.1 179.1
80% -- 90% 288.1 32.3 0.6 321.0
90% -- 100% 39.1 5.7 0.3 45.1
>100% 6.0 7.3 0.2 13.5
----------
Total loans before provisions 1,342.4 358.6 12.2 1,713.2
----------
First Second Funding
charge charge lines Total
Bank GBPm GBPm GBPm GBPm
----------
Band
0% -- 50% 585.1 123.2 9.3 717.6
50% -- 60% 130.7 81.8 7.0 219.5
60% -- 70% 91.4 74.3 2.6 168.3
70% -- 80% 106.2 48.3 3.8 158.3
80% -- 90% 131.4 24.4 0.7 156.5
90% -- 100% 19.7 6.8 0.4 26.9
>100% 1.7 9.2 0.3 11.2
----------
Total loans before
provisions 1,066.2 368.0 24.1 1,458.3
----------
Analysis of mortgage portfolio by arrears and collateral held
The tables below provide further information on collateral, capped at
the value of each individual mortgage, over the mortgage portfolio by
payment due status and IFRS 9 stage.
Group 2019
---------------------------------------------------------------------------------------------------------
OSB CCFS Total
------------------------------------
Capped Capped Loan Capped
Loan balance collateral Loan balance collateral balance collateral
GBPm GBPm GBPm GBPm GBPm GBPm
------------------ ---------------- ------------------ ------------- -------------- ----------------
Stage 1
Not past due 9,964.3 9,904.5 7,236.2 7,235.7 17,200.5 17,140.2
Past due < 1
month 82.6 82.6 3.8 3.8 86.4 86.4
------------------
10,046.9 9,987.1 7,240.0 7,239.5 17,286.9 17,226.6
------------------
Stage 2
Not past due 261.0 260.7 239.1 239.0 500.1 499.7
Past due < 1
month 118.9 118.9 38.1 38.1 157.0 157.0
Past due 1 to 3
months 62.5 62.2 29.9 29.9 92.4 92.1
------------------
442.4 441.8 307.1 307.0 749.5 748.8
------------------
Stage 3
Not past due 71.3 71.0 4.8 4.8 76.1 75.8
Past due < 1
month 36.3 36.1 1.4 1.4 37.7 37.5
Past due 1 to 3
months 28.8 28.5 6.0 6.0 34.8 34.5
Past due 3 to 6
months 45.9 45.3 4.5 4.5 50.4 49.8
Past due 6 to
12 months 27.4 27.2 -- -- 27.4 27.2
Past due over
12 months 25.3 24.7 -- -- 25.3 24.7
Possessions 42.7 42.4 -- -- 42.7 42.4
277.7 275.2 16.7 16.7 294.4 291.9
------------------
Stage 3 (POCI)
Not past due 20.8 20.2 30.6 30.5 51.4 50.7
Past due < 1
month 6.1 5.9 8.5 8.5 14.6 14.4
Past due 1 to 3
months 4.9 4.6 21.9 21.9 26.8 26.5
Past due 3 to 6
months 6.5 6.1 10.5 10.5 17.0 16.6
Past due 6 to
12 months 5.7 5.3 5.5 5.5 11.2 10.8
Past due over
12 months 8.3 7.2 1.2 1.2 9.5 8.4
Possessions 1.3 0.8 5.0 5.0 6.3 5.8
------------------
53.6 50.1 83.2 83.1 136.8 133.2
------------------
Total loans
before
provisions 10,820.6 10,754.2 7,647.0 7,646.3 18,467.6 18,400.5
------------------
2018
OSB CCFS
Loan Capped Loan Capped Loan Capped
balance collateral balance collateral balance collateral
Group GBPm GBPm GBPm GBPm GBPm GBPm
Stage 1
Not past due 8,225.3 8,213.3 -- -- 8,225.3 8,213.3
Past due < 1
month 61.5 61.2 -- -- 61.5 61.2
8,286.8 8,274.5 -- -- 8,286.8 8,274.5
Stage 2
Not past due 241.9 241.9 -- -- 241.9 241.9
Past due < 1
month 124.9 124.9 -- -- 124.9 124.9
Past due 1
to 3
months 70.0 70.0 -- -- 70.0 70.0
436.8 436.8 -- -- 436.8 436.8
Stage 3
Not past due 67.8 67.2 -- -- 67.8 67.2
Past due < 1
month 16.2 16.2 -- -- 16.2 16.2
Past due 1
to 3
months 30.4 30.4 -- -- 30.4 30.4
Past due 3
to 6
months 57.2 57.2 -- -- 57.2 57.2
Past due 6
to 12
months 32.0 31.9 -- -- 32.0 31.9
Past due
over 12
months 13.9 13.6 -- -- 13.9 13.6
Possessions 7.9 7.7 -- -- 7.9 7.7
225.4 224.2 -- -- 225.4 224.2
Stage 3
(POCI)
Not past due 18.6 18.6 -- -- 18.6 18.6
Past due < 1
month 6.7 6.6 -- -- 6.7 6.6
Past due 1
to 3
months 6.6 6.6 -- -- 6.6 6.6
Past due 3
to 6
months 7.4 7.4 -- -- 7.4 7.4
Past due 6
to 12
months 7.7 7.7 -- -- 7.7 7.7
Past due
over 12
months 9.2 9.2 -- -- 9.2 9.2
56.2 56.1 -- -- 56.2 56.1
Total loans
before
provisions 9,005.2 8,991.6 -- -- 9,005.2 8,991.6
Bank 2019 Bank 2018
----------------------------------- -----------------------------------
Capped Capped
Loan balance collateral Loan balance collateral
GBPm GBPm GBPm GBPm
------------------ --------------- ------------------ ---------------
Stage 1
Not past due 7,732.1 7,721.4 6,603.2 6,599.4
Past due < 1
month 52.9 52.9 53.8 53.8
7,785.0 7,774.3 6,657.0 6,653.2
Stage 2
Not past due 207.2 207.0 162.6 162.5
Past due < 1
month 109.2 109.2 117.9 117.9
Past due 1 to 3
months 54.9 54.6 66.1 66.1
371.3 370.8 346.6 346.5
Stage 3
Not past due 50.1 49.9 32.2 32.1
Past due < 1
month 26.2 26.0 11.4 11.4
Past due 1 to 3
months 27.7 27.4 27.2 27.2
Past due 3 to 6
months 40.4 39.9 54.7 54.7
Past due 6 to
12 months 23.3 23.1 24.7 24.7
Past due over
12 months 12.2 12.0 9.4 9.4
Possessions 31.2 30.9 5.2 5.2
211.1 209.2 164.8 164.7
Stage 3 (POCI)
Not past due 20.6 20.0 18.5 18.5
Past due < 1
month 6.1 5.9 6.5 6.4
Past due 1 to 3
months 4.9 4.6 6.6 6.6
Past due 3 to 6
months 6.5 6.1 7.4 7.4
Past due 6 to
12 months 5.7 5.3 7.7 7.7
Past due over
12 months 8.3 7.2 9.2 9.2
Possessions 1.3 0.8 -- --
53.4 49.9 55.9 55.8
Total loans
before
provisions 8,420.8 8,404.2 7,224.3 7,220.2
The table below shows the analysis of mortgage portfolio by arrears for
the OSB segments' two major lending streams:
OSB 2019 2018
----------------------------------- --------------------------------------
BTL/SME Residential Total BTL/SME Residential Total
GBPm GBPm GBPm GBPm GBPm GBPm
----------- ------------ -----------
Stage 1
Not past due 8,514.9 1,449.4 9,964.3 7,019.0 1,206.3 8,225.3
Past due < 1
month 48.7 33.9 82.6 20.3 41.2 61.5
8,563.6 1,483.3 10,046.9 7,039.3 1,247.5 8,286.8
Stage 2
Not past due 156.9 104.1 261.0 141.9 100.0 241.9
Past due < 1
month 80.0 38.9 118.9 75.7 49.2 124.9
Past due 1 to 3
months 32.3 30.2 62.5 30.0 40.0 70.0
269.2 173.2 442.4 247.6 189.2 436.8
Stage 3
Not past due 39.6 31.7 71.3 43.1 24.7 67.8
Past due < 1
month 22.5 13.8 36.3 3.7 12.5 16.2
Past due 1 to 3
months 9.8 19.0 28.8 12.1 18.3 30.4
Past due 3 to 6
months 17.0 28.9 45.9 24.6 32.6 57.2
Past due 6 to
12 months 9.1 18.3 27.4 11.0 21.0 32.0
Past due over
12 months 13.5 11.8 25.3 3.1 10.8 13.9
Possessions 38.7 4.0 42.7 4.4 3.5 7.9
150.2 127.5 277.7 102.0 123.4 225.4
Stage 3 (POCI)
Not past due 0.2 20.6 20.8 0.1 18.5 18.6
Past due < 1
month -- 6.1 6.1 0.2 6.5 6.7
Past due 1 to 3
months -- 4.9 4.9 -- 6.6 6.6
Past due 3 to 6
months -- 6.5 6.5 -- 7.4 7.4
Past due 6 to
12 months -- 5.7 5.7 -- 7.7 7.7
Past due over
12 months -- 8.3 8.3 -- 9.2 9.2
Possessions -- 1.3 1.3 -- -- --
0.2 53.4 53.6 0.3 55.9 56.2
Total loans
before
provisions 8,983.2 1,837.4 10,820.6 7,389.2 1,616.0 9,005.2
The tables below show the sub-segment analysis of mortgage portfolio by
arrears of the OSB BTL/SME lending stream:
OSB 2019
-------------------------------------------------------------------
Residential Funding
Buy-to-Let Commercial development lines Total
GBPm GBPm GBPm GBPm GBPm
--------------- ----------
Stage 1
Not past due 7,317.3 829.4 146.1 222.1 8,514.9
Past due < 1 month 32.8 15.9 -- -- 48.7
7,350.1 845.3 146.1 222.1 8,563.6
Stage 2 128.6 28.3 -- -- 156.9
Not past due 78.5 1.5 -- -- 80.0
Past due < 1 month Past due 1 to 3 months 29.2 3.1 -- -- 32.3
236.3 32.9 -- -- 269.2
2.5 -- --
Stage 3 1.5 -- -- 39.6
Not past due -- -- -- 22.5
Past due < 1 month Past due 1 to 3 months 37.1 21.0 0.9 -- -- 9.8
Past due 3 to 6 months 9.8 16.1 1.1 -- -- 17.0
Past due 6 to 12 months Past due over 12 8.0 13.1 0.4 -- -- 9.1 13.5
months Possessions 35.5 3.2 -- -- 38.7
140.6 9.6 -- -- 150.2
Stage 3 (POCI)
Not past due -- 0.2 -- -- 0.2
-- 0.2 -- -- 0.2
Total loans before provisions 7,727.0 888.0 146.1 222.1 8,983.2
2018
Residential Funding
Buy-to-Let Commercial development lines Total
OSB GBPm GBPm GBPm GBPm GBPm
Stage 1
Not past due 6,193.4 501.7 155.8 168.1 7,019.0
Past due < 1 month 18.5 1.8 -- -- 20.3
6,211.9 503.5 155.8 168.1 7,039.3
Stage 2
Not past due 102.8 39.1 -- -- 141.9
Past due < 1 month 74.7 1.0 -- -- 75.7
Past due 1 to 3
months 29.3 0.7 -- -- 30.0
206.8 40.8 -- -- 247.6
Stage 3
Not past due 40.6 2.5 -- -- 43.1
Past due < 1 month 3.3 0.4 -- -- 3.7
Past due 1 to 3
months 12.0 0.1 -- -- 12.1
Past due 3 to 6
months 24.5 0.1 -- -- 24.6
Past due 6 to 12
months 10.9 0.1 -- -- 11.0
Past due over 12
months 3.1 -- -- -- 3.1
Possessions 4.4 -- -- -- 4.4
98.8 3.2 -- -- 102.0
Stage 3 (POCI)
Not past due -- 0.1 -- -- 0.1
Past due < 1 month -- 0.2 -- -- 0.2
-- 0.3 -- -- 0.3
Total loans before
provisions 6,517.5 547.8 155.8 168.1 7,389.2
For the year ended 31 December 2019
The tables below show the sub-segment analysis of mortgage portfolio by
arrears of the OSB Residential mortgages lending stream:
OSB 2019
------------------------------------------------
First Second Funding
charge charge lines Total
GBPm GBPm GBPm GBPm
------------- ---------- ----------
Stage 1
Not past due 1,164.8 272.4 12.2 1,449.4
Past due < 1 month 27.7 6.2 -- 33.9
1,192.5 278.6 12.2 1,483.3
Stage 2
Not past due 86.1 18.0 -- 104.1
Past due < 1 month 34.4 4.5 -- 38.9
Past due 1 to 3 months 24.4 5.8 -- 30.2
144.9 28.3 -- 173.2
Stage 3
Not past due 28.1 3.6 -- 31.7
Past due < 1 month 11.2 2.6 -- 13.8
Past due 1 to 3 months 13.8 5.2 -- 19.0
Past due 3 to 6 months 20.7 8.2 -- 28.9
Past due 6 to 12 months 14.5 3.8 -- 18.3
Past due over 12 months 9.8 2.0 -- 11.8
Possessions 3.3 0.7 -- 4.0
101.4 26.1 -- 127.5
Stage 3 (POCI)
Not past due 13.4 7.2 -- 20.6
Past due < 1 month 4.2 1.9 -- 6.1
Past due 1 to 3 months 2.0 2.9 -- 4.9
Past due 3 to 6 months 3.2 3.3 -- 6.5
Past due 6 to 12 months 2.6 3.1 -- 5.7
Past due over 12 months 2.3 6.0 -- 8.3
Possessions 0.1 1.2 -- 1.3
27.8 25.6 -- 53.4
Total loans before
provisions 1,466.6 358.6 12.2 1,837.4
2018
First Second Funding
charge charge lines Total
OSB GBPm GBPm GBPm GBPm
----------
Stage 1
Not past due 906.6 275.6 24.1 1,206.3
Past due < 1 month 32.5 8.7 -- 41.2
----------
939.1 284.3 24.1 1,247.5
----------
Stage 2
Not past due 80.8 19.2 -- 100.0
Past due < 1 month 43.2 6.0 -- 49.2
Past due 1 to 3 months 32.7 7.3 -- 40.0
----------
156.7 32.5 -- 189.2
----------
Stage 3
Not past due 22.2 2.5 -- 24.7
Past due < 1 month 10.2 2.3 -- 12.5
Past due 1 to 3 months 13.0 5.3 -- 18.3
Past due 3 to 6 months 23.8 8.8 -- 32.6
Past due 6 to 12 months 16.9 4.1 -- 21.0
Past due over 12 months 8.8 2.0 -- 10.8
Possessions 3.5 -- -- 3.5
----------
98.4 25.0 -- 123.4
----------
Stage 3 (POCI)
Not past due 12.1 6.4 -- 18.5
Past due < 1 month 4.4 2.1 -- 6.5
Past due 1 to 3 months 4.1 2.5 -- 6.6
Past due 3 to 6 months 3.5 3.9 -- 7.4
Past due 6 to 12 months 3.4 4.3 -- 7.7
Past due over 12 months 2.2 7.0 -- 9.2
----------
29.7 26.2 -- 55.9
----------
Total loans before provisions 1,223.9 368.0 24.1 1,616.0
----------
For the year ended 31 December 2019
The table below shows the analysis of mortgage portfolio by arrears for
the CCFS segments' four major lending streams:
CCFS 2019
---------------------------------------------------------------
Second
charge
Buy-to-let Residential Bridging lending Total
GBPm GBPm GBPm GBPm GBPm
-----------
Stage 1
Not past due 4,767.9 2,056.4 195.5 216.4 7,236.2
Past due < 1
month 0.5 1.1 -- 2.2 3.8
4,768.4 2,057.5 195.5 218.6 7,240.0
Stage 2
Not past due 139.6 83.6 14.6 1.3 239.1
Past due < 1
month 10.1 27.1 0.8 0.1 38.1
Past due 1 to 3
months 6.3 22.4 0.3 0.9 29.9
156.0 133.1 15.7 2.3 307.1
Stage 3
Not past due 1.1 3.2 0.2 0.3 4.8
Past due < 1
month 0.5 0.9 -- -- 1.4
Past due 1 to 3
months 1.6 4.4 -- -- 6.0
Past due 3 to 6
months 3.2 1.2 0.1 -- 4.5
6.4 9.7 0.3 0.3 16.7
Stage 3 (POCI)
Not past due 10.9 16.6 1.7 1.4 30.6
Past due < 1
month 2.5 5.4 0.4 0.2 8.5
Past due 1 to 3
months 2.6 16.8 1.8 0.7 21.9
Past due 3 to 6
months 1.3 8.8 -- 0.4 10.5
Past due 6 to
12 months 1.0 3.9 0.2 0.4 5.5
Past due over
12 months 0.9 0.3 -- -- 1.2
Possessions 3.9 0.9 0.2 -- 5.0
23.1 52.7 4.3 3.1 83.2
Total loans
before
provisions 4,953.9 2,253.0 215.8 224.3 7,647.0
The table below shows the analysis of mortgage portfolio by arrears for
the Bank's two major lending streams:
Bank 2019 2018
----------------------------------- --------------------------------------
BTL/SME Residential Total BTL/SME Residential Total
GBPm GBPm GBPm GBPm GBPm GBPm
----------- ------------ -----------
Stage 1
Not past due 6,374.7 1,357.4 7,732.1 5,512.3 1,090.9 6,603.2
Past due < 1
month 20.3 32.6 52.9 16.5 37.3 53.8
6,395.0 1,390.0 7,785.0 5,528.8 1,128.2 6,657.0
Stage 2
Not past due 111.0 96.2 207.2 65.0 97.6 162.6
Past due < 1
month 72.7 36.5 109.2 72.3 45.6 117.9
Past due 1 to 3
months 27.1 27.8 54.9 29.3 36.8 66.1
210.8 160.5 371.3 166.6 180.0 346.6
Stage 3
Not past due 27.5 22.6 50.1 18.3 13.9 32.2
Past due < 1
month 13.2 13.0 26.2 2.6 8.8 11.4
Past due 1 to 3
months 9.3 18.4 27.7 11.1 16.1 27.2
Past due 3 to 6
months 12.8 27.6 40.4 24.5 30.2 54.7
Past due 6 to
12 months 7.6 15.7 23.3 7.4 17.3 24.7
Past due over
12 months 2.9 9.3 12.2 2.3 7.1 9.4
Possessions 28.5 2.7 31.2 4.4 0.8 5.2
101.8 109.3 211.1 70.6 94.2 164.8
Stage 3 (POCI)
Not past due -- 20.6 20.6 -- 18.5 18.5
Past due < 1
month -- 6.1 6.1 -- 6.5 6.5
Past due 1 to 3
months -- 4.9 4.9 -- 6.6 6.6
Past due 3 to 6
months -- 6.5 6.5 -- 7.4 7.4
Past due 6 to
12 months -- 5.7 5.7 -- 7.7 7.7
Past due over
12 months -- 8.3 8.3 -- 9.2 9.2
Possessions -- 1.3 1.3 -- -- --
-- 53.4 53.4 -- 55.9 55.9
Total loans
before
provisions 6,707.6 1,713.2 8,420.8 5,766.0 1,458.3 7,224.3
The table below shows the analysis of mortgage portfolio by arrears for
the Bank's BTL/SME lending stream:
Bank 2019
------------------------------------------------------------------
Residential Funding
Buy-to-Let Commercial development lines Total
GBPm GBPm GBPm GBPm GBPm
--------------- ----------
Stage 1
Not past due 5,993.2 13.3 146.1 222.1 6,374.7
Past due < 1
month 19.9 0.4 -- -- 20.3
6,013.1 13.7 146.1 222.1 6,395.0
Stage 2
Not past due 110.0 1.0 -- -- 111.0
Past due < 1
month 72.3 0.4 -- -- 72.7
Past due 1 to
3 months 27.0 0.1 -- -- 27.1
209.3 1.5 -- -- 210.8
Stage 3
Not past due 27.5 -- -- -- 27.5
Past due < 1
month 12.2 1.0 -- -- 13.2
Past due 1 to
3 months 9.3 -- -- -- 9.3
Past due 3 to
6 months 12.4 0.4 -- -- 12.8
Past due 6 to
12 months 7.5 0.1 -- -- 7.6
Past due over
12 months 2.8 0.1 -- -- 2.9
Possessions 28.2 0.3 -- -- 28.5
99.9 1.9 -- -- 101.8
Total loans
before
provisions 6,322.3 17.1 146.1 222.1 6,707.6
2018
-----------
Residential Funding
Buy-to-Let Commercial development lines Total
Bank GBPm GBPm GBPm GBPm GBPm
Stage 1
Not past due 5,170.6 17.8 155.8 168.1 5,512.3
Past due < 1 month 16.2 0.3 -- -- 16.5
5,186.8 18.1 155.8 168.1 5,528.8
Stage 2
Not past due 63.3 1.7 -- -- 65.0
Past due < 1 month 71.3 1.0 -- -- 72.3
Past due 1 to 3
months 29.3 -- -- -- 29.3
163.9 2.7 -- -- 166.6
Stage 3
Not past due 17.9 0.4 -- -- 18.3
Past due < 1 month 2.6 -- -- -- 2.6
Past due 1 to 3
months 11.0 0.1 -- -- 11.1
Past due 3 to 6
months 24.4 0.1 -- -- 24.5
Past due 6 to 12
months 7.4 -- -- -- 7.4
Past due over 12
months 2.3 -- -- -- 2.3
Possessions 4.4 -- -- -- 4.4
70.0 0.6 -- -- 70.6
Total loans before
provisions 5,420.7 21.4 155.8 168.1 5,766.0
The table below shows the analysis of mortgage portfolio by arrears for
the Bank's Residential mortgages lending stream:
Bank 2019
------------------------------------------------
First Second Funding
charge charge lines Total
GBPm GBPm GBPm GBPm
------------- ---------- ----------
Stage 1
Not past due 1,072.7 272.5 12.2 1,357.4
Past due < 1 month 26.4 6.2 -- 32.6
----------
1,099.1 278.7 12.2 1,390.0
----------
Stage 2
Not past due 78.2 18.0 -- 96.2
Past due < 1 month 32.1 4.4 -- 36.5
Past due 1 to 3 months 22.0 5.8 -- 27.8
----------
132.3 28.2 -- 160.5
----------
Stage 3
Not past due 19.0 3.6 -- 22.6
Past due < 1 month 10.4 2.6 -- 13.0
Past due 1 to 3 months 13.2 5.2 -- 18.4
Past due 3 to 6 months 19.4 8.2 -- 27.6
Past due 6 to 12 months 11.9 3.8 -- 15.7
Past due over 12 months 7.3 2.0 -- 9.3
Possessions 2.0 0.7 -- 2.7
----------
83.2 26.1 -- 109.3
----------
Stage 3 (POCI)
Not past due 13.4 7.2 -- 20.6
Past due < 1 month 4.2 1.9 -- 6.1
Past due 1 to 3 months 2.0 2.9 -- 4.9
Past due 3 to 6 months 3.2 3.3 -- 6.5
Past due 6 to 12 months 2.6 3.1 -- 5.7
Past due over 12 months 2.3 6.0 -- 8.3
Possessions 0.1 1.2 -- 1.3
----------
27.8 25.6 -- 53.4
----------
Total loans before
provisions 1,342.4 358.6 12.2 1,713.2
----------
First Second Funding
charge charge lines Total
Bank GBPm GBPm GBPm GBPm
Stage 1
Not past due 791.2 275.6 24.1 1,090.9
Past due < 1 month 28.6 8.7 -- 37.3
819.8 284.3 24.1 1,128.2
Stage 2
Not past due 78.4 19.2 -- 97.6
Past due < 1 month 39.6 6.0 -- 45.6
Past due 1 to 3 months 29.5 7.3 -- 36.8
147.5 32.5 -- 180.0
Stage 3
Not past due 11.4 2.5 -- 13.9
Past due < 1 month 6.5 2.3 -- 8.8
Past due 1 to 3 months 10.8 5.3 -- 16.1
Past due 3 to 6 months 21.4 8.8 -- 30.2
Past due 6 to 12 months 13.2 4.1 -- 17.3
Past due over 12 months 5.1 2.0 -- 7.1
Possessions 0.8 -- -- 0.8
69.2 25.0 -- 94.2
Stage 3 (POCI)
Not past due 12.1 6.4 -- 18.5
Past due < 1 month 4.4 2.1 -- 6.5
Past due 1 to 3 months 4.1 2.5 -- 6.6
Past due 3 to 6 months 3.5 3.9 -- 7.4
Past due 6 to 12 months 3.4 4.3 -- 7.7
Past due over 12 months 2.2 7.0 -- 9.2
29.7 26.2 -- 55.9
Total loans before
provisions 1,066.2 368.0 24.1 1,458.3
Forbearance measures undertaken
The Group has a range of options available where borrowers experience
financial difficulties which impact their ability to service their
financial commitments under the loan agreement. These are explained in
the Principal risks and uncertainties on page 70.
A summary of the forbearance measures undertaken during the year, where
CCFS forbearance is included post Combination, is shown below. The
balances disclosed reflect the year end balance of the accounts where a
forbearance measure was undertaken during
the year.
At 31 At 31
Number December Number December
of accounts 2019 of accounts 2018
Group 2019 GBPm 2018 GBPm
Forbearance type
Interest-only switch 59 8.4 26 3.7
Interest rate reduction 35 1.6 5 0.8
Term extension 30 6.6 33 3.5
Payment holiday 87 4.1 31 0.6
Voluntary assisted sale 26 1.0 4 0.1
Payment concession (reduced
monthly payments) 73 3.6 75 3.5
Full or partial debt
forgiveness 6 -- -- --
Total 316 25.3 174 12.2
Loan type
First charge owner-occupier 85 10.5 40 3.4
Second charge owner-occupier 198 7.4 106 2.9
Buy-to-Let 32 7.4 28 5.9
Commercial 1 -- -- --
Total 316 25.3 174 12.2
At 31 At 31
Number December Number December
of accounts 2019 of accounts 2018
Bank 2019 GBPm 2018 GBPm
Forbearance type
Interest-only switch 48 7.2 21 2.9
Interest rate reduction 34 1.3 2 0.2
Term extension 19 6.1 28 2.7
Payment holiday 72 1.7 31 0.6
Voluntary assisted sale 24 0.5 4 0.1
Payment concession (reduced
monthly payments) 69 2.5 75 3.6
Full or partial debt
forgiveness 6 -- -- --
Total 272 19.3 161 10.1
Loan type
First charge owner-occupier 59 7.0 22 1.6
Second charge owner-occupier 185 5.8 112 2.9
Buy-to-Let 28 6.5 27 5.6
Total 272 19.3 161 10.1
Geographical analysis by region
An analysis of loans by region is provided below:
Region Group 2019 Group 2018
------------------------------------ ------------------
OSB CCFS Total OSB
-------- ------------------
GBPm GBPm GBPm % GBPm %
-------------- ------------------
East Anglia 391.9 810.9 1,202.8 7 316.4 4
East Midlands 415.2 410.3 825.5 4 325.4 4
Greater London 4,738.7 2,713.7 7,452.4 41 3,965.5 43
Guernsey 45.3 -- 45.3 -- 61.7 1
Jersey 141.4 -- 141.4 1 176.0 2
North East 136.7 179.5 316.2 2 115.6 1
North West 587.3 605.4 1,192.7 6 447.6 5
Northern Ireland 14.2 -- 14.2 -- 14.6 --
Scotland 48.5 190.9 239.4 1 45.2 1
South East 2,375.2 1,209.6 3,584.8 20 1,955.1 22
South West 747.5 466.0 1,213.5 7 634.2 7
Wales 239.3 202.6 441.9 2 187.1 2
West Midlands 702.2 496.0 1,198.2 6 557.5 6
Yorks and Humberside 237.2 362.1 599.3 3 203.3 2
Total loans before
provisions 10,820.6 7,647.0 18,467.6 100 9,005.2 100
Region Bank 2019 Bank 2018
----------------- -----------------
GBPm % GBPm %
----------------- -----------------
East Anglia 319.3 4 267.3 4
East Midlands 297.1 4 245.5 3
Greater London 3,737.7 44 3,270.7 45
North East 109.3 1 94.7 1
North West 448.1 5 346.9 5
Northern Ireland 14.1 -- 14.4 --
Scotland 44.0 1 44.0 1
South East 1,921.3 23 1,667.9 24
South West 601.4 7 515.5 7
Wales 191.1 2 151.3 2
West Midlands 556.8 7 454.9 6
Yorks and Humberside 180.6 2 151.2 2
Total loans before provisions 8,420.8 100 7,224.3 100
Approach to measurement of credit quality
The Group categorises the credit quality of loans and advances to
customers into internal risk grades based on the 12-month PD calculated
at the reporting date. The PDs include a combination of internal
behavioural and credit bureau characteristics. The risk grades are
further grouped into the following credit quality segments:
} Excellent quality -- where there is a very high likelihood the asset
will be recovered in full with a negligible or very low risk of default.
} Good quality -- where there is a high likelihood the asset will be
recovered in full with a low risk of default.
} Satisfactory quality -- where the assets demonstrate a moderate
default risk.
} Lower quality -- where the assets require closer monitoring and the
risk of default is of greater concern.
The credit grade for the Group's investment securities and loans and
advances to credit institutions is based on the external credit rating
of the counterparty.
The following tables disclose the credit risk quality ratings of Loans
and advances to customers by IFRS 9 stage:
Stage Stage Stage Stage
1 2 3 3 (POCI) Total
Group 2019 GBPm GBPm GBPm GBPm GBPm
------------
Loans and advances to customers -- OSB
Excellent 4,985.9 11.0 -- -- 4,996.9
Good 4,859.3 200.5 -- -- 5,059.8
Satisfactory 147.3 154.8 -- -- 302.1
Lower 6.7 76.1 -- -- 82.8
Impaired -- -- 277.7 -- 277.7
POCI -- -- -- 53.6 53.6
Loans and advances to customers -- CCFS
Excellent 3,632.7 20.5 -- -- 3,653.2
Good 3,359.7 93.7 -- -- 3,453.4
Satisfactory 222.8 39.1 -- -- 261.9
Lower 24.8 153.8 -- -- 178.6
Impaired -- -- 16.7 -- 16.7
POCI -- -- -- 83.2 83.2
17,239.2 749.5 294.4 136.8 18,419.9
Group 2018
Loans and advances to customers
-- OSB
Excellent 4,351.9 8.7 -- -- 4,360.6
Good 3,755.1 188.6 -- -- 3,943.7
Satisfactory 163.1 164.8 -- -- 327.9
Lower 9.5 74.7 -- -- 84.2
Impaired -- -- 225.4 -- 225.4
POCI -- -- -- 56.2 56.2
8,279.6 436.8 225.4 56.2 8,998.0
Stage Stage Stage Stage
1 2 3 3 (POCI) Total
Bank 2019 GBPm GBPm GBPm GBPm GBPm
------------
Loans and advances to customers
Excellent 3,565.3 10.3 -- -- 3,575.6
Good 4,086.1 148.0 -- -- 4,234.1
Satisfactory 127.3 147.0 -- -- 274.3
Lower 6.3 66.0 -- -- 72.3
Impaired -- -- 211.1 -- 211.1
POCI -- -- -- 53.4 53.4
7,785.0 371.3 211.1 53.4 8,420.8
Bank 2018
Loans and advances to customers
Excellent 3,321.1 3.4 -- -- 3,324.5
Good 3,189.2 126.8 -- -- 3,316.0
Satisfactory 138.6 149.9 -- -- 288.5
Lower 8.1 66.5 -- -- 74.6
Impaired -- -- 164.8 -- 164.8
POCI -- -- -- 55.9 55.9
6,657.0 346.6 164.8 55.9 7,224.3
The tables below show the Group's and Bank's other financial assets by
credit risk rating grade:
Excellent Good Satisfactory Total
Group 2019 GBPm GBPm GBPm GBPm
Investment securities 635.3 -- -- 635.3
Loans and advances to credit
institutions 2,047.8 146.1 10.7 2,204.6
Derivative assets 11.6 9.5 -- 21.1
2,694.7 155.6 10.7 2,861.0
Excellent Good Satisfactory Total
Group 2018 GBPm GBPm GBPm GBPm
-----------
Investment securities 58.9 -- -- 58.9
Loans and advances to credit
institutions 1,315.2 25.4 6.7 1,347.3
Derivative assets 1.3 10.4 -- 11.7
1,375.4 35.8 6.7 1,417.9
Excellent Good Satisfactory Total
Bank 2019 GBPm GBPm GBPm GBPm
Investment securities 149.8 -- 149.8
Loans and advances to credit institutions Derivative 1,140.7 -- 55.3 -- 1,196.0
assets 7.2 1.5 -- 8.7
-------------
1,297.7 56.8 -- 1,354.5
----------- ------------- ----------
Excellent Good Satisfactory Total
Bank 2018 GBPm GBPm GBPm GBPm
-----------
Investment securities 58.9 -- -- 58.9
Loans and advances to credit
institutions 1,315.2 24.8 -- 1,340.0
Derivative assets 1.3 10.4 -- 11.7
1,375.4 35.2 -- 1,410.6
Credit risk -- loans and advances to credit institutions and investment
securities
The Group holds treasury instruments in order to meet liquidity
requirements and for general business purposes. The credit risk arising
from these investments is closely monitored and managed by the Group's
treasury department. In managing these assets, Group treasury operates
within guidelines laid down in the treasury policy approved by the Board
and performance is monitored and reported to ALCO monthly, including
through the use of an internally developed rating model based on
counterparty credit default swap spreads.
The Group has limited exposure to emerging markets (Indian operations)
and non-investment grade debt. ALCO is responsible for approving
treasury counterparties.
During the year, the average balance of cash in hand, loans and advances
to credit institutions and investment securities on a monthly basis was
GBP2,016.2m (2018: GBP1,296.1m).
The tables below show the industry sector of the Group's loans and
advances to credit institutions and investment securities:
Group 2019 Group 2018
------------------ ------------------
GBPm % GBPm %
------------------ ------------------
BoE1 1,957.9 69 1,315.2 94
Other banks 246.7 9 32.1 2
Central government 149.8 5 39.8 3
Supranationals -- -- 19.1 1
Securitisation 485.5 17 -- --
Total 2,839.9 100 1,406.2 100
1. Balances with the BoE include GBP41.7m (2018: GBP20.0m) held in
the cash ratio deposit.
Bank 2019 Bank 2018
----------------- -----------------
GBPm % GBPm %
----------------- -----------------
BoE1 1,109.3 83 1,315.2 94
Other banks 86.7 6 24.8 2
Central government 149.8 11 39.8 3
Supranationals -- -- 19.1 1
Total 1,345.8 100 1,398.9 100
1. Balances with the BoE include GBP27.5m (2018: GBP20.0m) held in
the cash ratio deposit.
The tables below show the geographical exposure of the Group's loans and
advances to credit institutions and investment securities:
Group 2019 Group 2018
------------------ ------------------
GBPm % GBPm %
------------------ ------------------
United Kingdom 2,829.2 100 1,380.5 98
Rest of Europe -- -- 19.1 2
India 10.7 -- 6.6 --
Total 2,839.9 100 1,406.2 100
Bank 2019 Bank 2018
----------------- -----------------
GBPm % GBPm %
----------------- -----------------
United Kingdom 1,345.8 100 1,379.8 99
Rest of Europe -- -- 19.1 1
Total 1,345.8 100 1,398.9 100
The Group monitors exposure concentrations against a variety of criteria,
including asset class, sector and geography. To avoid refinancing risks
associated with any one counterparty, sector or geographical region, the
Board has set appropriate limits.
Liquidity risk
Liquidity risk is the risk of having insufficient liquid assets to
fulfil obligations as they become due or the cost of raising liquid
funds becoming too expensive.
The Group's approach to managing liquidity risk is to maintain
sufficient liquid resources to cover cash flow imbalances and
fluctuations in funding in order to retain full public confidence in the
solvency of the Group and to enable the Group to meet its financial
obligations as they fall due. This is achieved through maintaining a
prudent level of liquid assets and control of the growth of the
business.
The Group has established a call account with the BoE and has access to
its contingent liquidity facilities.
Liquidity management is the responsibility of ALCO, with day-to-day
management delegated to treasury as detailed in the treasury policy.
ALCO is responsible for setting limits over the level and maturity
profile of wholesale funding and for monitoring the composition of the
Group financial position. For each material class of financial liability
a contractual maturity analysis is provided below.
The Group also monitors a range of triggers, defined in the contingency
funding plan and recovery and resolution plan, which are designed to
capture liquidity stresses in advance in order to allow sufficient time
for management action to take effect. These are monitored daily by the
Risk team, with breaches immediately reported to the CRO, CEO, CFO and
the Head of Treasury.
The tables below provide a contractual maturity analysis of the Group's
financial assets and liabilities:
Carrying Less than 3--12 1--5 More than
Restated Group1 amount On demand 3 months months years 5 years
2018 GBPm GBPm GBPm GBPm GBPm GBPm
-----------
Financial liability by type
Amounts owed to retail
depositors 8,071.9 2,538.2 880.6 3,008.3 1,644.8 --
Amounts owed to credit
institutions 1,584.0 1.0 40.1 40.0 1,502.9 --
Amounts owed to other
customers 32.9 -- 10.5 22.4 -- --
Derivative liabilities 24.9 -- 0.1 11.3 7.0 6.5
Subordinated liabilities 10.8 -- 0.2 0.1 0.5 10.0
Perpetual Subordinated Bonds 37.6 -- 0.6 -- -- 37.0
Total liabilities 9,762.1 2,539.2 932.1 3,082.1 3,155.2 53.5
----------- -----------
Financial asset by type
Cash in hand 0.4 0.4 -- -- -- --
Loans and advances to credit
institutions 1,347.3 1,327.3 -- -- -- 20.0
Investment securities 58.9 -- -- 58.9 -- --
Loans and advances to
customers 8,983.3 -- 176.0 270.4 522.9 8,014.0
Derivative assets 11.7 -- -- -- 11.7 --
-----------
Total assets 10,401.6 1,327.7 176.0 329.3 534.6 8,034.0
----------- -----------
Cumulative liquidity gap (1,211.5) (1,967.6) (4,720.4) (7,341.0) 639.5
-----------
1. The Group has restated the prior year comparatives for the
GBP22.0m PSBs previously classified as equity (see note 1).
More
Carrying Less than 3--12 1--5 than
amount On demand 3 months months years 5 years
Bank 2019 GBPm GBPm GBPm GBPm GBPm GBPm
------------ --------------- ----------- ----------
Financial liability by type
Amounts owed to retail depositors 9,435.7 3,254.6 1,338.4 3,229.0 1,613.7 --
Amounts owed to credit institutions 1,671.1 7.8 160.5 -- 1,502.8 --
Amounts owed to other customers 8.9 -- 0.5 8.4 -- --
Derivative liabilities 54.3 -- -- 0.6 46.8 6.9
Lease liabilities 4.3 -- -- 0.2 0.4 3.7
Subordinated liabilities 10.6 -- 0.2 0.1 10.3 --
Perpetual Subordinated Bonds 37.6 -- 0.6 -- -- 37.0
Total liabilities 11,222.5 3,262.4 1,500.2 3,238.3 3,174.0 47.6
--------------- -----------
Financial asset by type
Cash in hand 0.4 0.4 -- -- -- --
Loans and advances to credit
institutions 1,196.0 1,168.5 -- -- -- 27.5
Investment securities 149.8 -- 49.9 99.9 -- --
Loans and advances to customers 8,394.2 -- 136.7 168.4 273.3 7,815.8
Derivative assets 8.7 -- 0.1 1.0 7.1 0.5
Total assets 9,749.1 1,168.9 186.7 269.3 280.4 7,843.8
--------------- -----------
Cumulative liquidity gap (2,093.5) (3,407.0) (6,376.0) (9,269.6) (1,473.4)
--------------- -----------
More
Carrying On Less than 3--12 1--5 than
Restated Bank1 amount demand 3 months months years 5 years
2018 GBPm GBPm GBPm GBPm GBPm GBPm
-----------
Financial liability by type
Amounts owed to retail
depositors 8,071.9 2,538.2 880.6 3,008.3 1,644.8 --
Amounts owed to credit
institutions 1,584.0 1.0 40.1 40.0 1,502.9 --
Amounts owed to other
customers 32.9 -- 10.5 22.4 -- --
Derivative liabilities 24.9 -- 0.1 11.3 7.0 6.5
Subordinated liabilities 10.8 -- 0.2 0.1 0.5 10.0
Perpetual Subordinated Bonds 37.6 -- 0.6 -- -- 37.0
Total liabilities 9,762.1 2,539.2 932.1 3,082.1 3,155.2 53.5
------------- -----------
Financial asset by type
Cash in hand 0.4 0.4 -- -- -- --
Loans and advances to credit
institutions 1,340.0 1,320.0 -- -- -- 20.0
Investment securities 58.9 -- -- 58.9 -- --
Loans and advances to
customers 7,208.2 -- 131.8 165.1 232.4 6,678.9
Derivative assets 11.7 -- -- -- 11.7 --
-----------
Total assets 8,619.2 1,320.4 131.8 224.0 244.1 6,698.9
------------- -----------
Cumulative liquidity gap (1,218.8) (2,019.1) (4,877.2) (7,788.3) (1,142.9)
-----------
1. The Bank has restated the prior year comparatives for the
GBP22.0m PSBs previously classified as equity (see note 1).
Liquidity risk -- contractual cash flows
The following tables provide an analysis of the Group's gross
contractual cash flows, derived using interest rates and contractual
maturities at the reporting date and excluding impacts of early payments
or non-payments:
Gross More
Carrying inflow/ Up to 3--12 1--5 than
amount outflow 3 months months years 5 years
Group 2019 GBPm GBPm GBPm GBPm GBPm GBPm
------------ --------------- ----------
Financial liability by type
Amounts owed to retail depositors 16,255.0 16,407.3 5,532.0 4,309.7 4,911.8 1,653.8
Amounts owed to credit institutions
and other customers 3,098.5 3,133.3 255.1 229.5 2,648.7 --
Derivative liabilities 92.8 91.4 5.6 20.7 61.4 3.7
Debt securities in issue 296.3 315.3 14.4 82.9 218.0 --
Lease liabilities 13.3 22.4 0.7 1.4 17.1 3.2
Subordinated liabilities 10.6 14.2 0.4 0.5 13.3 --
Perpetual Subordinated Bonds 37.6 45.5 0.4 1.3 6.8 37.0
Total liabilities 19,804.1 20,029.4 5,808.6 4,646.0 7,877.1 1,697.7
Off-balance sheet loan commitments 1,210.9 1,210.9 1,210.9 -- -- --
Financial asset by type
Cash in hand 0.4 0.4 0.4 -- -- --
Loans and advances to credit
institutions 2,204.6 2,204.6 2,162.9 -- -- 41.7
Investment securities 635.3 672.4 52.1 123.2 497.1 --
Loans and advances to customers 18,446.8 37,024.4 371.6 1,423.6 5,032.4 30,196.8
Derivative assets 21.1 23.4 2.4 5.7 15.1 0.2
Total assets 21,308.2 39,925.2 2,589.4 1,552.5 5,544.6 30,238.7
Gross Up to More
Carrying inflow/ 3 3--12 1--5 than
Restated Group1 amount outflow months months years 5 years
2018 GBPm GBPm GBPm GBPm GBPm GBPm
Financial liability by type
Amounts owed to retail depositors 8,071.9 8,479.5 3,433.0 3,236.7 1,809.8 --
Amounts owed to credit institutions
and other customers 1,616.9 1,646.2 54.5 71.2 1,520.5 --
Derivative liabilities 24.9 27.1 3.3 15.6 5.0 3.2
Subordinated liabilities 10.8 15.0 0.3 0.4 3.6 10.7
Perpetual Subordinated Bonds 37.6 46.5 0.5 1.4 7.6 37.0
Total liabilities 9,762.1 10,214.3 3,491.6 3,325.3 3,346.5 50.9
Off-balance sheet loan commitments 710.7 710.7 710.7 -- -- --
Financial asset by type
Cash in hand 0.4 0.4 0.4 -- -- --
Loans and advances to credit
institutions 1,347.3 1,347.3 1,327.3 -- -- 20.0
Investment securities 58.9 59.0 -- 59.0 -- --
Loans and advances to customers 8,983.3 18,311.2 183.6 841.5 2,649.6 14,636.5
Derivative assets 11.7 12.2 0.4 1.0 10.8 --
Total assets 10,401.6 19,730.1 1,511.7 901.5 2,660.4 14,656.5
1. The Group has restated the prior year comparatives for the
GBP22.0m PSBs previously classified as equity (see note 1).
Gross More
Carrying inflow/ Up to 3--12 1--5 than
amount outflow 3 months months years 5 years
Bank 2019 GBPm GBPm GBPm GBPm GBPm GBPm
------------ ------------- ----------
Financial liability by type
Amounts owed to retail depositors 9,435.7 9,495.9 3,657.4 917.0 3,267.7 1,653.8
Amounts owed to credit institutions
and other customers 1,680.0 1,697.6 174.6 13.8 1,509.2 --
Derivative liabilities 54.3 55.0 2.3 11.8 37.3 3.6
Lease liabilities 4.3 4.8 0.2 0.4 1.9 2.3
Subordinated liabilities 10.6 14.2 0.4 0.5 13.3 --
Perpetual Subordinated Bonds 37.6 45.5 0.4 1.3 6.8 37.0
Total liabilities 11,222.5 11,313.0 3,835.3 944.8 4,836.2 1,696.7
Off-balance sheet loan commitments 459.7 459.7 459.7 -- -- --
Financial asset by type
Cash in hand 0.4 0.4 0.4 -- -- --
Loans and advances to credit
institutions 1,196.0 1,196.0 1,168.5 -- -- 27.5
Investment securities 149.8 150.0 50.0 100.0 -- --
Loans and advances to customers 8,394.2 18,218.7 114.8 717.7 2,256.2 15,130.0
Derivative assets 8.7 8.7 0.7 1.7 6.2 0.1
Total assets 9,749.1 19,573.8 1,334.4 819.4 2,262.4 15,157.6
More
carry gross up to 3 to 12 1 to than
Restated Bank1 amount inflow/outflow 3 months months 5 years 5 years
2018 GBPm GBPm GBPm GBPm GBPm GBPm
Financial liability by type
Amounts owed to retail depositors 8,071.9 8,479.5 3,433.0 3,236.7 1,809.8 --
Amounts owed to credit institutions
and other customers 1,616.9 1,646.2 54.5 71.2 1,520.5 --
Derivative liabilities 24.9 27.1 3.3 15.6 5.0 3.2
Subordinated liabilities 10.8 15.0 0.3 0.4 3.6 10.7
Perpetual Subordinated Bonds 37.6 46.5 0.5 1.4 7.6 37.0
Total liabilities 9,762.1 10,214.3 3,491.6 3,325.3 3,346.5 50.9
Off-balance sheet loan commitments 487.8 487.8 487.8 -- -- --
Financial asset by type
Cash in hand 0.4 0.4 0.4 -- -- --
Loans and advances to credit
institutions 1,340.0 1,340.1 1,320.1 -- -- 20.0
Investment securities 58.9 59.0 -- 59.0 -- --
Loans and advances to customers 7,208.2 15,496.7 107.3 647.8 1,931.3 12,810.3
Derivative assets 11.7 12.2 0.4 1.0 10.8 --
Total assets 8,619.2 16,908.4 1,428.2 707.8 1,942.1 12,830.3
1. The Bank has restated the prior year comparatives for the
GBP22.0m PSBs previously classified as equity (see note 1).
The actual repayment profile of retail deposits may differ from the
analysis above due to the option of early withdrawal with a penalty.
The actual repayment profile of loans and advances to customers may
differ from the analysis above since many mortgage loans are repaid
prior to the contractual end date.
Liquidity risk -- asset encumbrance
Asset encumbrance levels are monitored by ALCO. The following tables
provide an analysis of the Group's encumbered and unencumbered assets:
Group 2019
--------------------------------------------
Encumbered Unencumbered
----------------
Pledged Available
as collateral Other(2) as collateral Other3 Total
GBPm GBPm GBPm GBPm GBPm
----------------
Cash in hand -- -- 0.4 -- 0.4
Loans and
advances to
credit
institutions 110.4 41.7 1,916.2 136.3 2,204.6
Investment
securities 173.0 -- 462.3 -- 635.3
Loans and
advances to
customers 4,922.4 40.4 1,939.6 11,544.4 18,446.8
Derivative
assets -- -- -- 21.1 21.1
Non-financial
assets -- -- -- 108.9 108.9
----------
5,205.8 82.1 4,318.5 11,810.7 21,417.1
---------- ----------
Restated Group1 2018
Encumbered Unencumbered
Pledged Available
as collateral Other2 as collateral Other3 Total
GBPm GBPm GBPm GBPm GBPm
Cash in hand -- -- 0.4 -- 0.4
Loans and
advances to
credit
institutions 3.5 20.0 1,295.2 28.6 1,347.3
Investment
securities -- -- 58.9 -- 58.9
Loans and
advances to
customers 2,552.5 16.0 293.5 6,121.3 8,983.3
Derivative
assets -- -- -- 11.7 11.7
Non-financial
assets -- -- -- 58.6 58.6
2,556.0 36.0 1,648.0 6,220.2 10,460.2
----------
1. The 2018 comparatives have been restated to show excess collateral with
the BoE under TFS and ILTR as unencumbered available as collateral in
line with PRA guidance.
2. Represents assets that are not pledged but that the Group believes it is
restricted from using to secure funding for legal or other reasons,
3. Represents assets that are not restricted for use as collateral, but the
Group treats as available as collateral once they are readily available
to secure funding in the normal course of business.
Bank 2019
------------------------------------------
Encumbered Unencumbered
----------------
Pledged Available
as collateral Other2 as collateral Other3 Total
GBPm GBPm GBPm GBPm GBPm
----------------
Cash in hand -- -- 0.4 -- 0.4
Loans and
advances to
credit
institutions 62.2 27.5 1,081.8 24.5 1,196.0
Investment
securities -- -- 149.8 -- 149.8
Loans and
advances to
customers 3,010.0 40.4 910.1 4,433.7 8,394.2
Derivative
assets -- -- -- 8.7 8.7
Non-financial
assets -- -- -- 3,720.8 3,720.8
----------
3,072.2 67.9 2,142.1 8,187.7 13,469.9
-------- ----------
Restated Bank1
2018
Encumbered Unencumbered
----------------- ------------------------
Available as
Pledged Other2 collateral
as collateral Other 3 Total
GBPm GBPm GBPm GBPm GBPm
-----------------
Cash in hand -- -- 0.4 -- 0.4
Loans and advances to
credit institutions 3.5 20.0 1,295.2 21.3 1,340.0
Investment securities -- -- 58.9 -- 58.9
Loans and advances to
customers 2,552.5 16.0 293.5 4,346.2 7,208.2
Derivative assets -- -- -- 11.7 11.7
Non-financial assets -- -- -- 1,950.3 1,950.3
-----------------
2,556.0 36.0 1,648.0 6,329.5 10,569.5
-----------------
1. The 2018 comparatives have been restated to show excess collateral with
the BoE under TFS and ILTR as unencumbered available as collateral in
line with PRA guidance.
2. Represents assets that are not pledged but that the Group believes it is
restricted from using to secure funding for legal or other reasons.
3. Represents assets that are not restricted for use as collateral, but the
Group treats as available as collateral once they are readily available
to secure funding in the normal course of business.
Liquidity risk -- liquidity reserves
The tables below analyse the Group's liquidity reserves, where carrying
value is considered to be equal to fair value:
Group Group
2019 2018 Bank 2019 Bank 2018
GBPm GBPm GBPm GBPm
----------- ----------- --------------- -------------
Unencumbered
balances with
central banks 1,916.2 1,295.2 1,081.8 1,295.2
Unencumbered cash
and balances with
other banks 136.3 28.6 24.5 21.3
Other cash and cash
equivalents 0.4 0.4 0.4 0.4
Unencumbered
investment
securities 462.3 58.9 149.8 58.9
2,515.2 1,383.1 1,256.5 1,375.8
Market risk
Market risk is the risk of an adverse change in the Group's income or
the Group's net worth arising from movement in interest rates, exchange
rates or other market prices. Market risk exists, to some extent, in all
the Group's businesses. The Group recognises that the effective
management of market risk is essential to the maintenance of stable
earnings and preservation of shareholder value.
Interest rate risk
The primary market risk faced by the Group is interest rate risk.
Interest rate risk is the risk of loss from adverse movement in the
overall level of interest rates. It arises from mismatches in the timing
of repricing of assets and liabilities, both on and off-balance sheet.
It is most prevalent in mortgage lending where fixed rate mortgages are
not funded by fixed rate deposits of the same duration, or where the
fixed rate risk is not hedged by a fully matching interest rate
derivative. Exposure is mitigated on a continuous basis through the use
of derivatives and reserve allocations.
Currently interest rate risk is managed by separate risk appetites for
OSB and CCFS. The Group is currently looking to align measures and risk
appetites in 2020. Both banks apply an economic value at risk approach.
OSB applies an earnings at risk approach for basis risk while CCFS
applies an earnings at risk approach for both interest rate risk and
basis risk. The interest rate sensitivity is impacted by behavioural
assumptions used by the Group, the most significant of which are
prepayments and reserve allocations. Expected prepayments are modelled
based on historical analysis and current market rates. The reserve
allocation strategy is approved by ALCO and set to reflect the current
balance sheet and future plans.
OSB measures economic value at risk using the impact of six different
internally derived interest rate scenarios and a parallel 250bps rate
curve shift up and down. The internal scenarios are defined by ALCO and
are based on three 'shapes' of curve movement (shift, twist and flex).
Historical data is used to calibrate the severity of the scenarios to
the Group's risk appetite. The Board has set a limit on interest rate
risk exposure of 2.25% of CET1. After taking into account the
derivatives entered into by OSB, the maximum decrease under these
scenarios as at 31 December 2019 would have been GBP4.2m (2018: GBP5.6m)
and the maximum increase GBP4.2m (2018:
GBP1.8m). Against a parallel interest rate increase of 250bps, the
impact would have been a decrease of GBP1.9m, (2018: GBP11.6m).
For CCFS, risk appetite for economic value at risk is set against the
impact of a parallel +/-200bps shock. The down shock is floored at zero.
The Board has set a limit on interest risk exposure of 1% of CET1 as at
31 December 2019. After taking into account the
derivatives entered into by CCFS, the maximum decrease under these
scenarios as at 31 December 2019 would have been GBP1.0m and the maximum
increase GBP0.3m. Exposure for earnings at risk is measured by the
impact of a +/-50bps parallel shift in interest rates on the expected
profitability of the Group in the next 12 months. The risk appetite
limit is 2% of projected 12-month net interest income ('NII'). As at 31
December 2019 the maximum decrease would have been GBP0.9m.
The Group is also exposed to basis risk. Basis risk is the risk of loss
from an adverse divergence in interest rates. It arises where assets and
liabilities reprice from different variable rate indices. These indices
may be market rates (e.g. bank base rate, LIBOR or SONIA)
or administered (e.g. the Group's SVR, other discretionary variable
rates, or that received on call accounts with other banks).
OSB measures basis risk using the impact of five scenarios on net
interest income over a one-year period including movements such as
diverging base, LIBOR and SONIA rates. Historical data is used to
calibrate the severity of the scenarios to the Group's risk appetite.
The Board has set a limit on basis risk exposure of 2.25% of CET1 as at
31 December 2019.
CCFS measures basis risk using the impact of three scenarios on net
interest income over a one-year period including movements such as
diverging base, LIBOR and SONIA rates. The Board has set a limit on
basis risk exposure of 3% of 12-month NII as at
31 December 2019.
Foreign exchange rate risk
The Group has limited exposure to foreign exchange risk in respect of
its Indian operations. A 5% movement in exchange rates would result in a
GBP0.4m (2018: GBP0.3m) effect in profit or loss and GBP0.4m (2018:
GBP0.3m) in equity.
The Bank is not exposed to foreign exchange risk since all its assets
and liabilities are denominated in Pounds Sterling.
Structured entities
The structured entities within the Group at 31 December 2019 were
Canterbury Finance No.1 plc and Precise Mortgage Funding 2015-1 plc.
Both entities hold legal title to a pool of mortgages which are used as
a security for issued debt. The transfer of mortgages fails
derecognition criteria because the Bank retained the remaining notes and
residual certificates issued and as such did not transfer substantially
the risks and rewards of ownership of the securitised mortgages.
Therefore, the Group is exposed to credit, interest rate and other risks
on the securitised mortgages to the same extent as other mortgages. The
Group mitigates these risks consistently with non-securitised mortgages.
Cash flows generated from the structured entities are ring-fenced and
can only be used to pay interest and principal of the issued debt
securities in a waterfall order according to the seniority of the bonds.
The structured entities are self-funded and the Group is not
contractually or constructively obliged to provide further liquidity or
financial support. The maximum loss exposure at any point in time is the
amount of cash and cash equivalents held in the structured entities.
The Group had no structured entities as at 31 December 2018.
46. Financial instruments and fair values
i. Financial assets and financial liabilities
The following tables summarise the classification and carrying value of
the Group's financial assets and financial liabilities:
Group Note 2019
-----------------------------------------------
Fair value
through Total
profit Amortised carrying
or loss FVOCI cost amount
GBPm GBPm GBPm GBPm
-------------
Assets
Cash in hand -- -- 0.4 0.4
Loans and advances to credit
institutions 18 -- -- 2,204.6 2,204.6
Investment securities 19 -- 508.7 126.6 635.3
Loans and advances to
customers 20 22.1 -- 18,424.7 18,446.8
Derivative assets 25 21.1 -- -- 21.1
43.2 508.7 20,756.3 21,308.2
Liabilities
Amounts owed to retail depositors 33 -- -- 16,255.0 16,255.0
Amounts owed to credit
institutions 32 -- -- 3,068.8 3,068.8
Amounts owed to other
customers 34 -- -- 29.7 29.7
Debt securities in issue 35 -- -- 296.3 296.3
Derivative liabilities 25 92.8 -- -- 92.8
Subordinated liabilities 39 -- -- 10.6 10.6
Perpetual Subordinated Bonds 40 -- -- 37.6 37.6
92.8 -- 19,698.0 19,790.8
2018
----------
Fair
value
through Total
profit Amortised carrying
or loss FVOCI cost amount
Restated Group1 Note GBPm GBPm GBPm GBPm
----------
Assets
Cash in hand -- -- 0.4 0.4
Loans and advances to credit institutions 18 -- -- 1,347.3 1,347.3
Investment securities 19 -- 58.9 -- 58.9
Loans and advances to customers 20 -- -- 8,983.3 8,983.3
Derivative assets 25 11.7 -- -- 11.7
----------
11.7 58.9 10,331.0 10,401.6
----------
Liabilities
Amounts owed to retail depositors 33 -- -- 8,071.9 8,071.9
Amounts owed to credit institutions 32 -- -- 1,584.0 1,584.0
Amounts owed to other customers 34 -- -- 32.9 32.9
Derivative liabilities 25 24.9 -- -- 24.9
Subordinated liabilities 39 -- -- 10.8 10.8
Perpetual Subordinated Bonds 40 -- -- 37.6 37.6
----------
24.9 -- 9,737.2 9,762.1
----------
1. The Group has restated the prior year comparatives
for the GBP22.0m PSBs previously classified
as equity (see note 1).
Bank Note 2019
-----------------------------------------------
Fair value
through Total
profit Amortised carrying
or loss FVOCI cost amount
GBPm GBPm GBPm GBPm
-------------
Assets
Cash in hand -- -- 0.4 0.4
Loans and advances to credit
institutions 18 -- -- 1,196.0 1,196.0
Investment securities 19 -- 149.8 -- 149.8
Loans and advances to customers 20 -- -- 8,394.2 8,394.2
Derivative assets 25 8.7 -- -- 8.7
8.7 149.8 9,590.6 9,749.1
Liabilities
Amounts owed to retail depositors 33 -- -- 9,435.7 9,435.7
Amounts owed to credit institutions 32 -- -- 1,671.1 1,671.1
Amounts owed to other customers 34 -- -- 8.9 8.9
Derivative liabilities 25 54.3 -- -- 54.3
Subordinated liabilities 39 -- -- 10.6 10.6
Perpetual Subordinated Bonds 40 -- -- 37.6 37.6
54.3 -- 11,163.9 11,218.2
2018
----------
Fair value
through Total
profit Amortised carrying
or loss FVOCI cost amount
Restated Bank1 Note GBPm GBPm GBPm GBPm
---------- -----------
Assets
Cash in hand -- -- 0.4 0.4
Loans and advances to credit institutions 18 -- -- 1,340.0 1,340.0
Investment securities 19 -- 58.9 -- 58.9
Loans and advances to customers 20 -- -- 7,208.2 7,208.2
Derivative assets 25 11.7 -- -- 11.7
----------
11.7 58.9 8,548.6 8,619.2
----------
Liabilities
Amounts owed to retail depositors 33 -- -- 8,071.9 8,071.9
Amounts owed to credit institutions 32 -- -- 1,584.0 1,584.0
Amounts owed to other customers 34 -- -- 32.9 32.9
Derivative liabilities 25 24.9 -- -- 24.9
Subordinated liabilities 39 -- -- 10.8 10.8
Perpetual Subordinated Bonds 40 -- -- 37.6 37.6
----------
24.9 -- 9,737.2 9,762.1
----------
1. The Bank has restated the prior year comparatives
for the GBP22.0m PSBs previously classified as
equity (see note 1).
The Group has no financial assets nor financial
liabilities classified as held for trading.
ii.Fair values
The following tables summarise the carrying value and estimated fair
value of financial instruments not measured at fair value in the
Statement of Financial Position:
Group 2019 Restated 20181
-------------------------- --------------
Estimated Estimated
Carrying fair Carrying fair
value value value value
GBPm GBPm GBPm GBPm
------------ ------------ -------------- -----------
Assets
Cash in hand 0.4 0.4 0.4 0.4
Loans and advances to credit
institutions 2,204.6 2,204.6 1,347.3 1,347.3
Investment securities 126.6 126.6 -- --
Loans and advances to customers 18,424.7 18,654.2 8,983.3 9,151.1
--------------
20,756.3 20,985.8 10,331.0 10,498.8
--------------
Liabilities
Amounts owed to retail depositors 16,255.0 16,259.7 8,071.9 8,097.5
Amounts owed to credit institutions 3,068.8 3,068.8 1,584.0 1,584.0
Amounts owed to other customers 29.7 29.7 32.9 32.9
Debt securities in issue 296.3 296.3 -- --
Subordinated liabilities 10.6 10.7 10.8 10.8
Perpetual Subordinated Bonds 37.6 33.2 37.6 35.1
--------------
19,698.0 19,698.4 9,737.2 9,760.3
--------------
1. The Group has restated the prior year comparatives for the
GBP22.0m PSBs previously classified as equity (see note 1).
Bank 2019 Restated 20181
------------------------- --------------
Estimated Estimated
Carrying fair Carrying fair
value value value value
GBPm GBPm GBPm GBPm
------------ ----------- -------------- -----------
Assets
Cash in hand 0.4 0.4 0.4 0.4
Loans and advances to credit
institutions 1,196.0 1,196.0 1,340.0 1,340.0
Loans and advances to customers 8,394.2 8,566.3 7,208.2 7,340.1
--------------
9,590.6 9,762.7 8,548.6 8,680.5
--------------
Liabilities
Amounts owed to retail depositors 9,435.7 9,435.8 8,071.9 8,097.5
Amounts owed to credit institutions 1,671.1 1,671.1 1,584.0 1,584.0
Amounts owed to other customers 8.9 8.9 32.9 32.9
Subordinated liabilities 10.6 10.7 10.8 10.8
Perpetual Subordinated Bonds 37.6 33.2 37.6 35.1
--------------
11,163.9 11,159.7 9,737.2 9,760.3
--------------
1. The Bank has restated the prior year comparatives for the GBP22.0m
PSBs previously classified as equity (see note 1).
The fair values in these tables are estimated using the valuation
techniques below. The estimated fair value is stated as at 31 December
and may be significantly different from the amounts which will actually
be paid on the maturity or settlement dates of each financial
instrument.
Cash in hand
This represents physical cash across the Group's branch network where
fair value is considered to be equal to carrying value.
Loans and advances to credit institutions
This mainly represents the Group's working capital current accounts and
call accounts with central governments and other banks with an original
maturity of less than three months. Fair value is not considered to be
materially different to carrying value.
Loans and advances to customers
This mainly represents secured mortgage lending to customers. The fair
value of fixed rate mortgages has been estimated by discounting future
cash flows at current market rates of interest. Future cash flows
include the impact of expected credit losses. The interest rate on
variable rate mortgages is considered to be equal to current market
product rates and as such fair value is estimated to be equal to
carrying value.
Amounts owed to retail depositors
The fair value of fixed rate retail deposits has been estimated by
discounting future cash flows at current market rates of interest.
Retail deposits at variable rates and deposits payable on demand are
considered to be at current market rates and as such fair value is
estimated to be equal to carrying value.
Amounts owed to credit institutions
This mainly represents amounts drawn down under the BoE TFS and ILTR,
warehouse funding and commercial repos. Fair value is considered to be
equal to carrying value.
Amounts owed to other customers
This represents fixed rate saving products to corporations and local
authorities with original maturities greater than three months. The fair
value is estimated by discounting future cash flows at current market
rates of interest.
Debt securities in issue
While the Group's debt securities in issue are listed, the quoted prices
for an individual note may not be indicative of the fair value of the
issue as a whole, due to the specialised nature of the market in such
instruments and the limited number of investors participating in it.
Fair value is not considered to be materially different to carrying
value.
Subordinated liabilities and Perpetual Subordinated Bonds
The fair value of subordinated liabilities is estimated by discounting
future cash flows at current market rates of interest. The PSBs are
listed on the London Stock Exchange with fair value being the quoted
market price at the reporting date.
iii. Fair value classification
The following tables provide an analysis of financial assets and
financial liabilities measured at fair value in the Statement of
Financial Position grouped into Levels 1 to 3 based on the degree to
which the fair value is observable:
Carrying Principal Level Level Level
amount amount 1 2 3 Total
Group 2019 GBPm GBPm GBPm GBPm GBPm GBPm
------------ ------------
Financial assets
Investment securities 509.7 509.5 149.8 508.7
Loans and advances to customers Derivative 22.1 24.8 -- 358.9 -- 22.1 22.1
assets 21.1 7,795.4 -- -- 21.0 0.1 21.1
552.9 8,329.7 149.8 379.9 22.2 551.9
------------ ---------
Financial liabilities
Derivative liabilities 92.8 9,982.4 -- 92.8 -- 92.8
Carrying Principal Level Level Level
amount amount 1 2 3 Total
Group 2018 GBPm GBPm GBPm GBPm GBPm GBPm
Financial assets
Investment securities 58.9 59.0 58.9 -- -- 58.9
Derivative assets 11.7 1,999.0 -- 11.7 -- 11.7
70.6 2,058.0 58.9 11.7 -- 70.6
Financial liabilities
Derivative liabilities 24.9 4,532.2 -- 24.9 -- 24.9
Carrying Principal Level Level Level
amount amount 1 2 3 Total
Bank 2019 GBPm GBPm GBPm GBPm GBPm GBPm
------------ ------------
Financial assets Investment securities 149.8 150.0 149.8 -- -- 149.8
Derivative assets 8.7 3,080.0 -- 8.7 -- 8.7
158.5 3,230.0 149.8 8.7 -- 158.5
------------
Financial liabilities
Derivative liabilities 54.3 4,462.9 -- 54.3 -- 54.3
Carrying Principal Level Level Level
amount amount 1 2 3 Total
Bank 2018 GBPm GBPm GBPm GBPm GBPm GBPm
Financial assets
Investment securities 58.9 59.0 58.9 -- -- 58.9
Derivative assets 11.7 1,999.0 -- 11.7 -- 11.7
70.6 2,058.0 58.9 11.7 -- 70.6
Financial liabilities
Derivative liabilities 24.9 4,532.2 -- 24.9 -- 24.9
Level 1: Fair values that are based entirely on quoted market prices
(unadjusted) in an actively traded market for identical assets and
liabilities that the Group has the ability to access. Valuation
adjustments and block discounts are not applied to Level 1 instruments.
Since valuations are based on readily available observable market prices,
this makes them most reliable, reduces the need for management judgement
and estimation and also reduces the uncertainty associated with
determining fair values.
Level 2: Fair values that are based on one or more quoted prices in
markets that are not active or for which all significant inputs are
taken from directly or indirectly observable market data. These include
valuation models used to calculate the present value of
expected future cash flows and may be employed either when no active
market exists or when there are no quoted prices available for similar
instruments in active markets.
Level 3: Fair values for which any one or more significant input is not
based on observable market data and the unobservable inputs have a
significant effect on the instrument's fair value. Valuation models that
employ significant unobservable inputs require a higher degree of
management judgement and estimation in determining the fair value.
Management judgement and estimation are usually required for the
selection of the appropriate valuation model to be used, determination
of expected future cash flows on the financial instruments being valued,
determination of the probability of counterparty default and prepayments,
determination of expected volatilities and correlations and the
selection of appropriate discount rates.
The following table provides an analysis of financial assets and
financial liabilities not measured at fair value in the Statement of
Financial Position grouped into Levels 1 to 3 based on the degree to
which the fair value is observable:
Estimated fair
value
Carrying Principal Level Level 2 Level
amount amount 1 3 Total
Group 2019 GBPm GBPm GBPm GBPm GBPm GBPm
---------------------
Financial assets
Cash in hand 0.4 0.4 -- 0.4 -- 0.4
Loans and advances to credit
institutions 2,204.6 2,204.3 -- 2,204.6 -- 2,204.6
Investment securities 126.6 126.4 126.6 -- -- 126.6
Loans and advances to customers 18,424.7 18,281.3 -- 3,409.1 15,245.1 18,654.2
20,756.3 20,612.4 126.6 5,614.1 15,245.1 20,985.8
Financial liabilities
Amounts owed to retail depositors 16,255.0 16,133.5 -- 3,817.8 12,441.9 16,259.7
Amounts owed to credit institutions 3,068.8 3,063.3 -- 3,068.8 -- 3,068.8
Amounts owed to other customers 29.7 29.5 -- -- 29.7 29.7
Debt securities in issue 296.3 295.5 -- 296.3 -- 296.3
Subordinated liabilities 10.6 10.4 -- -- 10.7 10.7
Perpetual Subordinated Bonds 37.6 37.0 33.2 -- -- 33.2
19,698.0 19,569.2 33.2 7,182.9 12,482.3 19,698.4
Carrying Principal Level Level Level
Restated Group1 amount amount 1 2 3 Total
2018 GBPm GBPm GBPm GBPm GBPm GBPm
Financial assets
Cash in hand 0.4 0.4 -- 0.4 -- 0.4
Loans and advances to credit
institutions 1,347.3 1,346.9 -- 1,347.3 -- 1,347.3
Loans and advances to
customers 8,983.3 9,121.4 -- 4,195.3 4,955.8 9,151.1
10,331.0 10,468.7 -- 5,543.0 4,955.8 10,498.8
Financial liabilities
Amounts owed to retail
depositors 8,071.9 8,019.7 -- 2,916.4 5,181.1 8,097.5
Amounts owed to credit
institutions 1,584.0 1,581.0 -- 1,584.0 -- 1,584.0
Amounts owed to other
customers 32.9 32.8 -- -- 32.9 32.9
Subordinated liabilities2 10.8 10.6 -- -- 10.8 10.8
Perpetual Subordinated Bonds 37.6 37.0 35.1 -- -- 35.1
9,737.2 9,681.1 35.1 4,500.4 5,224.8 9,760.3
1. The Group has restated the prior year comparatives for the GBP22.0m PSBs
previously classified as equity (see note 1).
2. The Bank has reclassified the comparatives to disclose the fair value
level of subordinated liabilities as Level 3 as the bi-lateral nature of
the agreements means the calculation is based on unobservable inputs.
Estimated fair
value
Carrying Principal Level Level 2 Level
amount amount 1 3 Total
Bank 2019 GBPm GBPm GBPm GBPm GBPm GBPm
--------------------
Financial assets
Cash in hand 0.4 0.4 -- 0.4 -- 0.4
Loans and advances to credit
institutions 1,196.0 1,195.7 -- 1,196.0 -- 1,196.0
Loans and advances to customers 8,394.2 8,533.2 -- 2,431.5 6,134.8 8,566.3
9,590.6 9,729.3 -- 3,627.9 6,134.8 9,762.7
Financial liabilities
Amounts owed to retail depositors 9,435.7 9,364.5 -- 3,817.8 5,618.0 9,435.8
Amounts owed to credit institutions 1,671.1 1,667.8 -- 1,671.1 -- 1,671.1
Amounts owed to other customers 8.9 8.8 -- -- 8.9 8.9
Subordinated liabilities 10.6 10.4 -- -- 10.7 10.7
Perpetual Subordinated Bonds 37.6 37.0 33.2 -- -- 33.2
11,163.9 11,088.5 33.2 5,488.9 5,637.6 11,159.7
Carrying Principal Level Level Level
Restated Bank1 amount amount 1 2 3 Total
2018 GBPm GBPm GBPm GBPm GBPm GBPm
Financial assets
Cash in hand 0.4 0.4 -- 0.4 -- 0.4
Loans and advances to credit
institutions 1,340.0 1,339.7 -- 1,340.0 -- 1,340.0
Loans and advances to
customers 7,208.2 7,337.6 -- 3,123.7 4,216.4 7,340.1
8,548.6 8,677.7 -- 4,464.1 4,216.4 8,680.5
Financial liabilities
Amounts owed to retail
depositors 8,071.9 8,019.7 -- 2,916.4 5,181.1 8,097.5
Amounts owed to credit
institutions 1,584.0 1,581.0 -- 1,584.0 -- 1,584.0
Amounts owed to other
customers 32.9 32.8 -- -- 32.9 32.9
Subordinated liabilities2 10.8 10.6 -- -- 10.8 10.8
Perpetual Subordinated Bonds 37.6 37.0 35.1 -- -- 35.1
9,737.2 9,681.1 35.1 4,500.4 5,224.8 9,760.3
1. The Bank has restated the prior year comparatives for the GBP22.0m PSBs
previously classified as equity (see note 1).
2. The Bank has reclassified the comparatives to disclose the fair value
level of subordinated liabilities as Level 3 as the bi-lateral nature of
the agreements means the calculation is based on unobservable inputs.
3. Pension scheme
Defined contribution scheme
The amount charged to profit or loss in respect of contributions to the
Group's defined contribution and stakeholder pension arrangements is the
contribution payable in the period. The total pension cost in the year
amounted to GBP3.0m (2018: GBP1.7m).
Defined benefit scheme
Kent Reliance Building Society (the 'Society') operated a defined
benefit pension scheme ('the Scheme') funded by the payment
of contributions to a separately administered fund for nine retired
members. The Society's Board decided to close the Scheme with effect
from 31 December 2001 and introduced a new defined contribution scheme
to cover service for Scheme members from
1 January 2002.
The Scheme Trustees, having taken actuarial advice, decided to wind up
the Scheme rather than continue to operate it on a 'paid up' basis. The
winding up is largely complete. As at 31 December 2019 the liability to
remaining members is GBP2k (31 December 2018: GBP2k) matched by Scheme
assets.
48. Operating segments
Following the Combination, the Group segments its lending business and
operates under two segments in line with internal reporting to the
Board:
- OSB
- CCFS
In 2018, the Group operated under two segments: BTL/SME and Residential
mortgages. The 2018 comparatives have been restated. The financial
position and results of operations of the above segments are summarised
below:
OSB CCFS Total
2019 GBPm GBPm GBPm
----------- -----------
Balances at the reporting date
Gross loans and advances to customers Expected credit 10,820.6 7,669.1 18,489.7
losses (35.6) (7.3) (42.9)
Loans and advances to customers 10,785.0 7,661.8 18,446.8
Capital expenditure 10.2 1.1 11.3
Depreciation and amortisation 6.3 1.9 8.2
Profit or loss for the year
Net interest income 316.2 28.5 344.7
Other (expense)/income (12.9) 11.6 (1.3)
----------- -----------
Total income 303.3 40.1 343.4
Administrative expenses (92.3) (16.4) (108.7)
Provisions 0.1 (0.1) --
Impairment losses (11.9) (3.7) (15.6)
Gain on Combination with CCFS -- 10.8 10.8
Integration costs (2.5) (2.7) (5.2)
Exceptional items (15.6) -- (15.6)
Profit before taxation 181.8 28.0 209.1
Taxation (47.1) (3.2) (50.3)
-----------
Profit for the year 134.0 24.8 158.8
----------- -----------
OSB CCFS Total
Restated 20181 GBPm GBPm GBPm
Balances at the reporting date
Gross loans and advances to customers 9,005.2 -- 9,005.2
Expected credit losses (21.9) -- (21.9)
Loans and advances to customers 8,983.3 -- 8,983.3
Capital expenditure 6.3 -- 6.3
Depreciation and amortisation 4.7 -- 4.7
Profit or loss for the year
Net interest income 286.3 -- 286.3
Other expense (5.2) -- (5.2)
Total income 281.1 -- 281.1
Administrative expenses (79.6) -- (79.6)
Provisions (0.8) -- (0.8)
Impairment losses (8.1) -- (8.1)
Exceptional cost -- Heritable option (9.8) -- (9.8)
Profit before taxation 182.8 -- 182.8
Taxation (43.2) -- (43.2)
Profit for the year 139.6 -- 139.6
-----------
1. The Group has restated the prior year comparatives for the interest
expense and taxation on the GBP22.0m PSBs previously classified as
equity (see note 1).
Notes to the Financial Statements continued
For the year ended 31 December 2019
49. Country by country reporting
Country by Country Reporting ('CBCR') was introduced through Article 89
of CRD IV, aimed at the banking and capital markets industry. The name,
nature of activities and geographic location of the Group's companies
are presented below:
Jurisdiction Country Name Activities
-------------- ----------------------------------- ----------------
UK1 England OneSavings Bank plc
5D Finance Limited
Broadlands Finance Limited
Charter Court Financial Services
Group plc
Charter Court Financial Services
Limited
Charter Mortgages Limited
Easioption Limited
Exact Mortgage Experts Limited
Guernsey Home Loans Limited
Heritable Development Finance
Limited
Inter Bay Financial I Limited Commercial
Inter Bay Financial II Limited banking
InterBay Asset Finance Limited
Interbay Funding, Ltd
Interbay Group Holdings Limited
InterBay Holdings Ltd
Interbay ML, Ltd
Jersey Home Loans Limited
Prestige Finance Limited
Reliance Property Loans Limited
Rochester Mortgages Limited
Guernsey Guernsey Home Loans Limited
Jersey Jersey Home Loans Limited
-------------- -----------------------------------
1. Guernsey Home Loans Limited (Guernsey) and Jersey Home Loans
Limited (Jersey) are incorporated in Guernsey and Jersey respectively
but are considered to be located in the UK as they are managed and
controlled in the UK with no permanent establishments in Guernsey or
Jersey.
Jurisdiction Country Name Activities
------------- ------------------------------------ ----------------
UK England Canterbury Finance No.1 plc
CMF 2020-1 plc
CML Warehouse Number 1 Limited
CML Warehouse Number 2 Limited
Precise Mortgage Funding 2014-1 Special
plc purpose
Precise Mortgage Funding 2014-2 vehicle
plc
Precise Mortgage Funding 2015-1
plc
Precise Mortgage Funding 2015-3R
plc
Precise Mortgage Funding 2020-1B
plc
------------------------------------
India India OSB India Private Limited Back
office
processing
------------- ------------------------------------ ----------------
Other disclosures required by the CBCR directive are provided below:
2019 UK India Consolidation2 Total
Average number of employees 1,335 454 -- 1,789
Turnover1, GBPm 343.1 8.9 (8.6) 343.4
Profit/(loss) before tax, GBPm 208.8 1.6 (1.3) 209.1
Corporation tax paid, GBPm 52.6 0.4 -- 53.0
Restated 20183 UK India Consolidation2 Total
---------
Average number of employees 588 401 -- 989
Turnover1, GBPm 280.7 7.2 (6.8) 281.1
Profit/(loss) before tax, GBPm 182.4 1.1 (0.7) 182.8
Corporation tax paid, GBPm 38.9 0.2 -- 39.1
---------
1. Turnover represents total income before impairment losses, regulatory
provisions and operating costs, but after net interest, net commissions
and fees, gains and losses on financial instruments and external
servicing fees.
2. Relates to a management fee from Indian subsidiaries to OneSavings Bank
plc for providing back office processing.
3. The Group has restated the prior year comparatives for the interest
expense and taxation on the GBP22.0m PSBs previously classified as equity
(see note 1).
The tables below reconcile tax charged and tax paid during the year.
UK India Total
2019 GBPm GBPm GBPm
-----------
Tax charge 49.8 0.5 50.3
Effects of:
Other timing differences 4.3 (0.1) 4.2
Tax outside of profit or loss (0.9) -- (0.9)
Prior year tax paid during the year 22.1 -- 22.1
Current year tax to be paid after the
reporting date (22.7) -- (22.7)
-------- ----------
Tax paid 52.6 0.4 53.0
-------- ----------
UK India Total
Restated 20181 GBPm GBPm GBPm
--------- ----------
Tax charge 43.0 0.2 43.2
Effects of:
Other timing differences (0.8) -- (0.8)
Tax outside of profit or loss (3.1) -- (3.1)
Prior year tax paid during the year 19.5 -- 19.5
Current year tax to be paid after the reporting date (19.7) -- (19.7)
-------
Tax paid 38.9 0.2 39.1
-------
1. The Group has restated the prior year comparatives
for the taxation on the interest expense on the PSBs
previously classified as equity (see note 1).
50. Adjustments for non-cash items and changes in operating assets and
liabilities
Restated Restated
Group Group1 Bank1
2019 2018 Bank 2019 2018
GBPm GBPm GBPm GBPm
----------- ------------ --------------- ------------
Adjustments for non-cash items:
Depreciation and amortisation 8.2 4.7 5.4 4.0
Interest on subordinated liabilities 0.7 0.7 0.7 0.7
Interest on Perpetual Subordinated Bonds 1.8 1.9 1.8 1.9
Interest on securitised debt 0.8 -- -- --
Interest on financing debt2 2.4 3.0 0.3 3.0
Impairment charge on loans 15.6 8.1 7.5 7.1
Loss on sale of financial instruments 0.1 0.1 0.1 0.1
Provisions -- 0.8 -- 0.8
Interest on lease liabilities 0.1 -- 0.1 --
Fair value losses on financial instruments 3.3 5.1 13.3 5.1
Share-based payments 4.0 2.5 4.0 2.6
Gain on combination with CCFS (10.8) -- -- --
Exceptional items -- 9.8 -- 9.8
Total adjustments for non-cash items 26.2 36.7 33.2 35.1
---------------
Changes in operating assets and liabilities:
Increase in loans and advances to credit institutions (36.8) (1.7) (66.2) (1.7)
Increase in loans to customers (2,230.8) (1,689.5) (1,193.5) (1,166.1)
Increase in intercompany balances -- -- (644.0) (475.2)
Increase in retail deposits 1,637.8 1,421.6 1,363.8 1,421.6
Net increase in other assets (4.8) (0.8) (1.9) (0.8)
Net decrease in derivatives and hedged items (20.1) (5.3) (14.0) (5.3)
Net (decrease)/increase in credit institutions
and other customers' deposits2 (19.2) 7.2 (24.0) 7.2
Net (decrease)/increase in other liabilities (37.3) 2.9 2.4 1.3
Exchange differences on working capital (0.6) (0.2) -- --
Total changes in operating assets and liabilities (711.8) (265.8) (577.4) (219.0)
1. The Group and Bank have restated the prior year comparatives for the
interest expense on the GBP22.0m PSBs previously classified as equity
(see note 1).
2. The Group has reclassified the prior year comparatives to include all
components of amounts owed to credit institutions as financing
activities. Previously the Group only classified the Bank of England Term
Funding Scheme and Indexed Long-Term Repo scheme as financing
activities.
3. Events after the reporting date
On 17 January 2020, the Bank sold the Canterbury A2 note for proceeds of
GBP 225.4m. After incurring costs of GBP0.2m, the Bank recognised a gain
on sale of GBP1.9m.
On 23 January 2020, the Bank sold the F note and residual certificates
of the Canterbury securitisation for proceeds of GBP23.6m. The sale
resulted in the Bank having no remaining interest in the Canterbury
securitisation, with consolidation of Canterbury into the OSB Group
ceasing on disposal. The Group recognised a gain on sale of GBP16.5m
upon deconsolidation.
On 23 January 2020, the Group securitised GBP375.5m of mortgage loans
through Precise Mortgage Funding 2020-1B plc ('PMF 2020-1B'), issuing
GBP388.9m of Sterling floating rate notes. The Group retained the class
A2 notes, with all other note classes and the residual certificates
being sold to the external market. As such, the Group has not
consolidated PMF 2020-1B as the risks and rewards have been transferred.
The Group recognised a gain on sale of GBP2.0m upon deconsolidation.
52. Controlling party
As at 31 December 2019 there was no controlling party of OSB.
53. Capital management
The Group's prime objectives in relation to the management of capital
are to provide a sufficient capital base to cover business risks and
support future business development. The Group is compliant with the
requirements set out by the PRA, the Group's primary prudential
supervisor.
Capital management is based on the three 'pillars' of Basel II. Under
Pillar 1, the Group calculates its minimum capital requirements based on
8% of risk-weighted assets. The PRA then applies a multiplier to this
amount to cover risks under Pillar 2 of Basel II
and generates an individual capital guidance ('ICG'). The Group manages
and reports its capital both at a Group level and on a solo consolidated
basis for the two regulated entities within the Group. The capital
position of the two regulated entities are not disclosed separately.
To comply with Pillar 2, the Group, and the two regulated entities,
complete an annual self-assessment of risks known as the internal
capital adequacy assessment process ('ICAAP') reviewed by the PRA.
Pillar 3 requires firms to publish a set of disclosures which allow
market participants to assess information on that firm's capital, risk
exposures and risk assessment process. The Group's Pillar 3 disclosures
can be found on the Group's website.
Basel III came into force through CRD IV. Basel III complements and
enhances Basel I and II with additional safety measures. Basel III
changed definitions of regulatory capital, introduced new capital
buffers and liquidity ratios, and modified the way regulatory capital is
calculated.
The ultimate responsibility for capital adequacy rests with the Board of
Directors. The Group's ALCO is responsible for the management of the
capital process within the risk appetite defined by the Board, including
approving policy, overseeing internal controls and setting internal
limits over capital ratios.
The Group actively manages its capital position and reports this on a
regular basis to the Board and senior management via the ALCO and other
governance committees. Capital requirements are included within budgets,
forecasts and strategic plans with initiatives being executed against
this plan.
The Group's Pillar 1 capital information is presented below:
(Unaudited) (Unaudited)
2019 2018
GBPm GBPm
Common Equity Tier 1 capital
Called up share capital 4.5 2.4
Share premium, capital contribution and share-based payment
reserve 876.3 170.0
Retained earnings 553.2 439.6
Transfer reserve (12.8) (12.8)
Other reserves (4.2) (0.5)
Total equity excluding equity bonds 1,417.0 598.7
Foreseeable dividends (49.9) (25.2)
Solo consolidation adjustments(1) -- (5.4)
IFRS 9 transitional adjustment(2) 5.3 2.7
Deductions from Common Equity Tier 1 capital
Prudent valuation adjustment(3) (0.5) (0.1)
Intangible assets (31.4) (7.7)
Deferred tax asset (0.9) (1.4)
Common Equity Tier 1 capital 1,339.6 561.6
-----------
Additional Tier 1 capital
AT1 securities 60.0 60.0
Total Tier 1 capital 1,399.6 621.6
-----------
Tier 2 capital
Subordinated debt and PSBs 47.4 47.4
Deductions from Tier 2 capital (0.7) (3.3)
Total Tier 2 capital 46.7 44.1
-----------
Total regulatory capital 1,446.3 665.7
-----------
Risk-weighted assets (unaudited) 8,383.0 4,211.8
-----------
1. Prior to the Combination the Bank had solo consolidation waivers for most
of its subsidiaries. The equity for unconsolidated entities has been
removed from CET1 for the 2018 comparatives.
2. The regulatory capital includes a GBP5.3m add-back under IFRS 9
transitional arrangements. This represents 85% of the IFRS 9 transitional
adjustment booked directly to retained earnings of GBP6.5m. The full
impact of IFRS 9, if applied, would reduce total regulatory capital to
GBP1,441.0m.
3. The Group has adopted the simplified approach under the Prudent Valuation
rules, recognising a deduction equal to 0.1% of fair value assets and
liabilities.
The movement in CET1 during the year was as follows:
Group Group
(Unaudited) (Unaudited)
2019 2018
GBPm GBPm
------------------ ------------------
At 1 January 561.6 460.1
Movement in retained earnings 113.6 102.1
Share premium from Sharesave Scheme
vesting 0.3 0.4
Shares issued on Combination with CCFS 707.1 --
Movement in other reserves (2.7) (0.6)
Movement in foreseeable dividends (24.7) (2.6)
Movement in solo consolidation
adjustment 5.4 (0.6)
IFRS 9 transitional adjustment 2.6 2.7
Movement in prudent valuation
adjustment (0.4) (0.1)
Net increase in intangible assets (23.7) (0.9)
Movement in deferred tax asset for
carried forward losses 0.5 1.1
At 31 December 1,339.6 561.6
------------------
Appendix
1. Alternative performance measures
In this Annual report, the Group used alternative performance measures
('APMs') when presenting pro forma underlying results as management
believe they provide a more consistent basis for comparing the Group's
performance between financial periods.
Pro forma underlying results assume that the Combination with CCFS
occurred on 1 January 2018, and include 12 months of results from CCFS.
They also exclude exceptional items, integration costs and other
acquisition related items.
APMs reflect an important aspect of the way in which operating targets
are defined and performance is monitored by the Board. However, any APMs
in this Annual report are not a substitute for IFRS measures and readers
should consider the IFRS measures as well.
Below we provide definitions and the calculation methodology of ratios
used throughout this Annual report both a on statutory and pro forma
underlying basis.
Key performance indicators
Net interest margin ('NIM')
NIM is defined as net interest income as a percentage of a 13 point
average1 of interest earning assets (cash, investment securities, loans
and advances to customers and credit institutions). It represents the
margin earned on loans and advances and liquid assets after swap
expense/income and cost of funds.
2019 2018
GBPm GBPm
Net interest income -- statutory A 344.7 286.32
CCFS 2018 results -- 180.5
CCFS 2019 pre-acquisition results 152.1 --
Add back: acquisition-related items3 21.6 --
Net interest income -- pro forma underlying B 518.4 466.8
13 point average of interest earning assets -- statutory
C 14,163.5 9,383.8
13 point average of interest earning assets -- pro forma
underlying D* 19,484.3 16,301.2
NIM statutory equals A/C 2.43% 3.05%4
NIM pro forma underlying equals B/D 2.66% 2.86%
* Pro forma underlying average interest earning assets assume that
the Combination completed on 1 January 2018 and exclude the impact of
average acquisition related items. Acquisition related items comprise
the fair value uplift to CCFS' loan book, the amortisation of the fair
value uplift and the recognition of expected credit losses.
Cost to income ratio
The cost to income ratio is defined as administrative expenses as a
percentage of total income. It is a measure of operational efficiency.
2019 2018
GBPm GBPm
Administrative expenses -- statutory A 108.7 79.6
CCFS 2018 results -- 64.6
CCFS 2019 pre-acquisition results 57.7 --
Add back: acquisition-related items3 (1.3) --
Administrative expenses -- pro forma underlying B 165.1 144.2
----------
Total income -- statutory C 343.4 281.1
CCFS 2018 results -- 224.9
CCFS 2019 pre-acquisition results 200.8 --
Add back: acquisition-related items3 18.3 --
----------
Total income -- pro forma underlying D 562.5 506.0
----------
Cost to income statutory equals A/C 32% 28%
Cost to income pro forma underlying equals B/D 29% 28%
----------
Management expense ratio
The management expense ratio is defined as administrative expenses as a
percentage of a 13 point average1 of total assets.
2019 2018
GBPm GBPm
Administrative expenses -- statutory (as in cost to income
ratio above) A 108.7 79.6
Administrative expenses -- pro forma underlying (as in cost
to income ratio above) B 165.1 144.2
13 point average of total assets -- statutory C 14,298.0 9,445.1
13 point average of total assets -- pro forma underlying
D* 19,752.6 16,373.5
Management expense ratio statutory equals A/C 0.76% 0.84%
Management expense ratio pro forma underlying equals B/D 0.84% 0.88%
* Pro forma underlying average total assets assume that the Combination
completed on 1 January 2018 and exclude the impact of average
acquisition related items. Acquisition related items comprise the net
fair value uplift to CCFS' loan book, adjustment to fair value on hedged
assets, recognition of acquired intangibles on Combination and deferred
tax assets arising on Combination.
Loan loss ratio
The loan loss ratio is defined as impairment losses as a percentage of a
13 point average1 of gross loans and advances. It is a measure of the
credit performance of the loan book.
2019 2018
GBPm GBPm
Impairment losses -- statutory A 15.6 8.1
CCFS 2018 results -- 2.1
CCFS 2019 pre-acquisition results 4.3 --
Add back: acquisition-related items3 (3.6) --
Impairment losses -- pro forma underlying B 16.3 10.2
13 point average of gross loans -- statutory C 12,171.5 8,117.5
13 point average of gross loans -- pro forma
underlying D* 16,684.6 13,981.8
Loan loss ratio statutory equals A/C 0.13% 0.10%4
Loan loss ratio pro forma underlying equals B/D 0.10% 0.07%
---------- -----------
* Pro forma underlying average gross loans assume that the Combination
completed on 1 January 2018 and exclude the impact of average
acquisition related items. Acquisition related items comprise the fair
value uplift to CCFS' loan book recognised on Combination.
Return on equity ('RoE')
RoE is defined as profit attributable to ordinary shareholders, which is
profit after tax and after deducting coupons on AT1 securities, as a
percentage of a 13 point average1 of shareholders' equity (excluding
GBP60m of AT1 securities).
2019 2018
GBPm GBPm
158.8 139.62
Profit after tax -- statutory Coupons on AT1 securities (5.5) (5.5)
Tax on coupons on AT1 securities -- 1.5
Profit attributable to ordinary shareholders -- statutory
A 153.3 135.6
Add back: Heritable option 7.2
CCFS 2018 results -- 120.8
CCFS 2019 pre-acquisition results 92.5 --
Add back: acquisition-related items3 42.9 --
Profit attributable to ordinary shareholders -- pro forma
underlying B 288.7 263.6
----------
13 point average of shareholders' equity (excluding AT1 securities)
-- statutory C 866.6 551.2
13 point average of shareholders' equity (excluding AT1 securities)
-- pro forma underlying D* 1,147.1 948.7
Return on equity statutory equals A/C 18% 25%4
Return on equity pro forma underlying equals B/D 25% 28%
* Pro forma underlying average shareholders' equity assumes that the
Combination completed on 1 January 2018 and excludes the impact of
average acquisition-related items.
Basic earnings per share
Basic earnings per share is defined as profit attributable to ordinary
shareholders, which is profit after tax and after deducting coupons on
AT1 securities, gross of tax, divided by the weighted average number of
ordinary shares in issue.
2019 2018
GBPm GBPm
Profit attributable to ordinary shareholders -- statutory
(as in return on equity ratio above) A
Profit attributable to ordinary shareholders -- pro forma 153.3 135.6
underlying (as in return on equity ratio above) B* 288.7 263.6
----------- ------------
Weighted average number of ordinary shares in issue -- statutory
C 291.6 244.2
Weighted average number of ordinary shares in issue -- pro
forma underlying D 444.8 443.9
Basic earnings per share statutory equals A/C 52.6 55.5
Basic earnings per share pro forma underlying equals B/D 64.9 59.4
1. Pro forma underlying average shareholders' equity assumes that the
Combination completed on 1 January 2018 and excludes the impact of
average acquisition-related items.
2. 13 point average is calculated as an average of opening balance and
closing balances for 12 months of the financial year.
3. In 2019, the Group restated the prior year comparatives to recognise
interest expense on the GBP22m Perpetual Subordinated Bonds previously
classified as equity.
4. The acquisition-related items are detailed in the Financial review on
page 51.
5. To align calculation methods post Combination, OSB amended NIM, loan loss
ratio and return on equity calculations to include average interest
earning assets for NIM, average gross loans for loan loss ratio and
average shareholders' equity for return on equity on a 13 point average
from a simple average. The comparative ratios were restated accordingly.
2. Calculation of 2019 final dividend
The table below shows the basis of calculation of the Bank's proposed
final dividend for 2019:
2019 2018
GBPm GBPm
Statutory profit after tax 158.8 139.61
Less: Coupons on AT1 Securities classified as equity Tax (5.5) (5.5)
on coupons -- 1.5
153.3 135.6
Statutory profit attributable to ordinary shareholders 92.5 --
Add: CCFS pre-acquisition profits 15.7 --
Add back: CCFS pre-acquisition exceptional items Add back: 5.2 --
CCFS pre-acquisition integration costs Tax on CCFS pre-acquisition (1.6) --
integration costs Add back: Group's exceptional items 15.6 9.8
Add back: Tax on Heritable option 2.6 (2.6)
Add back: Amortisation of fair value adjustment Add back: 21.6 --
Inception adjustment (3.3) --
Add back: Amortisation of intangible assets acquired 1.3 --
Release of deferred taxation on the above amortisation adjustments (7.0) --
Less: gain on Combination (10.8) --
Add back: ECL on Combination 3.6 --
Pro forma underlying profit attributable to ordinary shareholders 288.7
Total dividend: 25% of pro forma underlying profit attributable 72.2 142.8
to ordinary shareholders Less interim dividends paid: (10.3) 35.7
CCFS (pre-acquisition) OSB (12.0) (10.5)
------------ -------------
Proposed final dividend 49.9 25.2
------------ -------------
1. In 2019, the Group restated the prior year comparatives to recognise
interest expense and taxation on the GBP22m Perpetual Subordinated Bonds
previously classified as equity.
Glossary
AGM Annual General Meeting
ALCO Assets and Liabilities Committee AT1 Additional
Tier 1 Capital
BoE Bank of England
CCFS Charter Court Financial Services Group plc CEO Chief
Executive Officer
CFO Chief Financial Officer
CRD IV Capital Requirement Directive and Regulation CRO Chief
Risk Officer
DSBP Deferred Share Bonus Plan EAD Exposure at
Default
ECL Expected Credit Loss EIR Effective Interest Rate EPS
Earnings Per Share
EU European Union
FCA Financial Conduct Authority FRC Financial
Reporting Council
FSCS Financial Services Compensation Scheme FSD Forced
Sale Discount
FTSE Financial Times Stock Exchange HMRC Her Majesty Revenue
and Customs HPI House Price Inflation
IAS International Accounting Standards
ICAAP Internal Capital Adequacy Assessment Process ICR Interest
Coverage Ratio
IFRS International Financial Reporting Standards ILAAP
Internal Liquidity Adequacy Assessment Process ILTR Indexed
Long-Term Repo
IPO Initial Public Offering
IRB Internal Ratings-Based approach to credit risk ISA
Individual Savings Account
KRPS Kent Reliance Provident Society LCR Liquidity Coverage Ratio
LGD Loss Given Default
LIBOR London Inter Bank Offered Rate LTIP Long-Term Incentive
Plan
LTV Loan to value
NIM Net Interest Margin NPS Net Promoter Score OSB
OneSavings Bank plc PD Probability of Default
PPD Propensity to go to Possession Given Default PRA
Prudential Regulation Authority
PSBs Perpetual Subordinated Bonds PSP Performance Share Plan
RMBS Residential Mortgage Backed Securities RoE Return on
equity
RWA Risk weighted assets
SAYE Save As You Earn or Sharesave SDLT Stamp Duty Land Tax
SICR Significant Increase in Credit Risk SID Senior
Independent Director SME Small Medium Enterprises SONIA
Sterling Overnight Index Average
SRMF Strategic Risk Management Framework TFS Term Funding
Scheme
Company information
Registered office and head office
Reliance House Sun Pier Chatham
Kent ME4 4ET
United Kingdom
Registered in England no: 07312896 www.osb.co.uk
Registrars Equiniti Limited Aspect House Spencer Road Lancing
West Sussex BN99 8LU
United Kingdom
Telephone: 0371 384 2030
International: +44 121 415 7047
Investor relations
Email: osbrelations@osb.co.uk
https://www.globenewswire.com/Tracker?data=KLwY4RkDfVtIeG5TvdLx4i8-5a9S02lZvnHBUZvQCoIyugHsk6SJuSWSLUysR07PfntITtkZwpDZ5DXL1CtQYESNEut4Gdn25gzuIRRqwTY=
Telephone: 01634 838973
Private shareholders are welcome to contact the Company Secretary if
they have any questions or concerns they wish to be raised with the
Board.
(END) Dow Jones Newswires
March 31, 2020 13:05 ET (17:05 GMT)
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