Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors

PRESS RELEASE : BoS half-year news release -12-

07/29/2021 | 10:26am EDT
At 1 January 2020                                           47                          297           344 
Losses recognised in the income statement within other      1                           8             9 
income 
Redemptions                                                 (1)                         (8)           (9) 
At 30 June 2020                                             47                          297           344 
Gains recognised in the income statement, within other 
income, relating to the change in fair value of those       -                           -             - 
liabilities held at 30 June 2020 

NOTES TO THE CONDENSED CONSOLIDATED HALF-YEAR FINANCIAL STATEMENTS (continued)

Note 12: Fair values of financial assets and liabilities (continued)

The tables below set out the effects of reasonably possible alternative assumptions for categories of level 3 financial assets and financial liabilities.

                                                                                                Effect of reasonably 
                                                                                                possible alternative 
                                                                                                assumptions2 
                                                           Significant unobservable             Favourable Unfavourable 
At 30 June 2021              Valuation techniques          inputs1                              changes 
                                                                                                           changes 
                                                                                                GBPm         GBPm 
 
Financial assets at fair value through profit or loss 
Loans and advances to                                      Interest rate spreads 
customers                    Discounted cash flows                                       400    38         (35) 
                                                           (+/- 6%) 
Derivative financial assets 
Interest rate derivatives    Option pricing model          Interest rate volatility (28% 11     -          - 
                                                           /56%) 
Level 3 financial assets carried at fair value                                           411 
 
Financial liabilities at fair value through profit or loss 
                                                           Interest rate spreads 
Securitisation notes         Discounted cash flows                                       38     2          (1) 
                                                           (+/- 50bps) 
Derivative financial 
liabilities 
Shared appreciation rights   Market values - property      HPI (+/- 1%)                  206    25         (23) 
                             valuation 
Level 3 financial liabilities carried at fair value                                      244 
At 31 December 2020 
 
Financial assets at fair value through profit or loss 
                                                                  Interest rate spreads 
Loans and advances to customers Discounted cash flows                                               477    36    (34) 
                                                                  (-50bps/+106bps) 
Derivative financial assets 
Interest rate derivatives       Option pricing model              Interest rate volatility (30%/    12     -     - 
                                                                  60%) 
Level 3 financial assets carried at fair value                                                      489 
 
Financial liabilities at fair value through profit or loss 
                                                                  Interest rate spreads 
Securitisation notes            Discounted cash flows                                               45     1     (1) 
                                                                  (+/- 50bps) 
Derivative financial 
liabilities 
Shared appreciation rights      Market values - property          HPI (+/- 1%)                      271    24    (22) 
                                valuation 
Level 3 financial liabilities carried at fair value                                                 316 

1 Ranges represent the highest and lowest inputs used in the level 3 valuations.

2 Where the exposure to an unobservable input is managed on a net basis, only the net impact is shown in the table.

Unobservable inputs

Significant unobservable inputs affecting the valuation of debt securities and derivatives are unchanged from those described in the Group's 2020 financial statements.

Reasonably possible alternative assumptions

Valuation techniques applied to many of the Group's level 3 instruments often involve the use of two or more inputs whose relationship is interdependent. The calculation of the effect of reasonably possible alternative assumptions included in the table above reflects such relationships and are unchanged from those described in note 39 to the Group's 2020 financial statements.

NOTES TO THE CONDENSED CONSOLIDATED HALF-YEAR FINANCIAL STATEMENTS (continued)

Note 13: Ultimate parent undertaking

Bank of Scotland plc's ultimate parent undertaking and controlling party is Lloyds Banking Group plc which is incorporated in Scotland. Lloyds Banking Group plc has published consolidated accounts for the year to 31 December 2020 and copies may be obtained from Investor Relations, Lloyds Banking Group, 25 Gresham Street, London EC2V 7HN and available for download from www.lloydsbankinggroup.com.

Note 14: Other information

The financial information contained in this document does not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006 (the Act). The statutory accounts for the year ended 31 December 2020 were approved by the directors on 11 March 2021 and were delivered to the Registrar of Companies on 28 April 2021. The auditors' report on those accounts was unqualified and did not include a statement under sections 498(2) (accounting records or returns inadequate or accounts not agreeing with records and returns) or 498(3) (failure to obtain necessary information and explanations) of the Act.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors listed below (being all the directors of Bank of Scotland plc) confirm that to the best of their knowledge these condensed consolidated half-year financial statements have been prepared in accordance with UK adopted International Accounting Standard 34, Interim Financial Reporting, and that the half-year management report herein includes a fair review of the information required by DTR 4.2.7R and DTR 4.2.8R, namely:

* an indication of important events that have occurred during the six months ended 30 June 2021 and their impact on the condensed consolidated half-year financial statements, and a description of the principal risks and uncertainties for the remaining six months of the financial year; and

* material related party transactions in the six months ended 30 June 2021 and any material changes in the related party transactions described in the last annual report.

Signed on behalf of the Board by

William Chalmers

Interim Group Chief Executive

28 July 2021

Bank of Scotland plc Board of directors:

Executive director:

William Chalmers (Interim Group Chief Executive and Chief Financial Officer)

Non-executive directors:

Robin Budenberg CBE (Chair)

Alan Dickinson (Deputy Chair)

Sarah Bentley

Brendan Gilligan

Nigel Hinshelwood

Sarah Legg

Lord Lupton CBE

Amanda Mackenzie OBE

Nicholas Prettejohn

Stuart Sinclair

Catherine Woods

FORWARD LOOKING STATEMENTS

This document contains certain forward looking statements within the meaning of Section 21E of the US Securities Exchange Act of 1934, as amended, and section 27A of the US Securities Act of 1933, as amended, with respect to the business, strategy, plans and/or results of Bank of Scotland plc together with its subsidiaries (the Group) and its current goals and expectations relating to its future financial condition and performance. Statements that are not historical or current facts, including statements about the Group's or its directors' and/or management's beliefs and expectations, are forward looking statements. Words such as 'believes', 'achieves', 'anticipates', 'estimates', 'expects', 'targets', 'should', 'intends', 'aims', 'projects', 'plans', 'potential', 'will', 'would', 'could', 'considered', 'likely', 'may', 'seek', 'estimate', 'probability', 'goal', 'objective', 'endeavour', 'prospects', 'optimistic' and variations of these words and similar future or conditional expressions are intended to identify forward looking statements but are not the exclusive means of identifying such statements. Examples of such forward looking statements include, but are not limited to, statements or guidance relating to: projections or expectations of the Group's future financial position including profit attributable to shareholders, provisions, economic profit, dividends, capital structure, portfolios, net interest margin, capital ratios, liquidity, risk-weighted assets (RWAs), expenditures or any other financial items or ratios; litigation, regulatory and governmental investigations; the Group's future financial performance; the level and extent of future impairments and write-downs; the Group's ESG targets and/or commitments; statements of plans, objectives or goals of the Group or its management including in respect of statements about the future business and economic environments in the UK and elsewhere including, but not limited to, future trends in interest rates, foreign exchange rates, credit and equity market levels and demographic developments; statements about competition, regulation, disposals and consolidation or technological developments in the financial services industry; and statements of assumptions underlying such statements. By their nature, forward looking statements involve risk and uncertainty because

(MORE TO FOLLOW) Dow Jones Newswires

July 29, 2021 10:25 ET (14:25 GMT)

Latest news "Companies"
01:07pIndia unveils new rice variety to cut down on use of water, labour
RE
01:06pBrent dips after topping $80 a barrel, highest since Oct 2018
RE
01:06pVALE S A : Germany's TÜV Süd "shirking responsibility" over 2019 Brazil dam burst, court hears
RE
01:06pTOTALENERGIES : RBC keeps its Buy rating
MD
01:05pARGENTINA LITHIUM & ENERGY : Enters Agreement to Acquire Rincon West and Pocitos Properties in Salta Province
AQ
01:05pLEARFIELD : And Electronic Arts Announce Return Of LevelNext Featuring EA Sports Madden NFL 22
PR
01:05pHOME BANCSHARES ALERT : Bragar Eagel & Squire, P.C. Investigates Sale of HOMB and Encourages Investors to Contact the Firm
GL
01:05pHOME BANCSHARES ALERT : Bragar Eagel & Squire, P.C. Investigates Sale of HOMB and Encourages Investors to Contact the Firm
GL
01:05pHASBRO : to Webcast Third Quarter 2021 Earnings Conference Call
BU
01:04pBANCO SANTANDER S A : Santander announces interim shareholder remuneration of 1.7 bln euros
RE
Latest news "Companies"