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 -8-

07/29/2021 | 10:26am EDT
Tax credit                                                    55           169 

The Finance Act 2021, which was substantively enacted on 24 May 2021, increases the rate of corporation tax from 19 per cent to 25 per cent with effect from 1 April 2023. The impact of this rate change is an increase in the Group's net deferred tax asset as at 30 June 2021 of GBP432 million, comprising a GBP433 million credit included in the income statement and a GBP1 million charge included in equity. The tax credit in the half-year to 30 June 2020 included an uplift in deferred tax assets following the announcement by the UK Government that it would maintain the corporation tax rate at 19 per cent.

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

Note 7: Financial assets at amortised cost

Half-year to 30 June 2021

                             Gross carrying amount                             Allowance for expected credit losses 
                             Stage 1      Stage 2     Stage 3     Total        Stage 1   Stage 2    Stage 3    Total 
                             GBPm           GBPm          GBPm          GBPm           GBPm        GBPm         GBPm         GBPm 
 
Loans and advances to banks  98           -           -           98           -         -          -          - 
Allowance for impairment     -            -           -           - 
losses 
Net carrying amount          98           -           -           98 
 
Loans and advances to 
customers 
At 1 January 2021            226,746      34,437      5,775       266,958      486       1,146      1,560      3,192 
Exchange and other           (17)         -           (31)        (48)         1         -          66         67 
adjustments 
Transfers to Stage 1         4,371        (4,366)     (5)         -            111       (110)      (1)        - 
Transfers to Stage 2         (5,934)      6,404       (470)       -            (23)      78         (55)       - 
Transfers to Stage 3         (122)        (951)       1,073       -            (4)       (91)       95         - 
Impact of transfers between  (1,685)      1,087       598         -            (78)      94         72         88 
stages 
                                                                               6         (29)       111        88 
Other changes in credit                                                        (24)      (126)      (49)       (199) 
quality 
Additions (repayments)       14,236       (1,809)     (440)       11,987       (4)       (57)       (51)       (112) 
(Credit) charge to the                                                         (22)      (212)      11         (223) 
income statement 
Advances written off                                  (203)       (203)                             (203)      (203) 
Recoveries of advances 
written off in previous                               28          28                                28         28 
years 
Discount unwind                                                                                     (71)       (71) 
At 30 June 2021              239,280      33,715      5,727       278,722      465       934        1,391      2,790 
Allowance for impairment     (465)        (934)       (1,391)     (2,790) 
losses 
Net carrying amount          238,815      32,781      4,336       275,932 
Due from fellow Lloyds Banking Group           23,425       -           -          23,425       5      -      -      5 
undertakings 
Allowance for impairment losses                (5)          -           -          (5) 
Net carrying amount                            23,420       -           -          23,420 
Total financial assets at amortised cost       262,333      32,781      4,336      299,450 

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

Note 7: Financial assets at amortised cost (continued)

Movements in allowance for expected credit losses in respect of undrawn balances were as follows:

                                             Allowance for expected credit losses 
                                             Stage 1   Stage 2   Stage 3   Total 
                                             GBPm        GBPm        GBPm        GBPm 
 
Undrawn balances 
At 1 January 2021                            54        69        6         129 
Transfers to Stage 1                         14        (14)      -         - 
Transfers to Stage 2                         (3)       3         -         - 
Transfers to Stage 3                         -         (1)       1         - 
Impact of transfers between stages           (11)      10        (1)       (2) 
                                             -         (2)       -         (2) 
Other items credited to the income statement (7)       (11)      (5)       (23) 
Credit to the income statement               (7)       (13)      (5)       (25) 
At 30 June 2021                              47        56        1         104 

The Group's total impairment allowances were as follows:

                                                                    Allowance for expected credit losses 
                                                                    Stage 1   Stage 2   Stage 3    Total 
                                                                    GBPm        GBPm        GBPm         GBPm 
 
In respect of: 
Loans and advances to customers                                     465       934       1,391      2,790 
Debt securities                                                     -         -         1          1 
Due from fellow Lloyds Banking Group undertakings                   5         -         -          5 
Financial assets at amortised cost                                  470       934       1,392      2,796 
Provisions in relation to loan commitments and financial guarantees 47        56        1          104 
Total                                                               517       990       1,393      2,900 

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

Note 7: Financial assets at amortised cost (continued)

Year ended 31 December 2020

                                    Gross carrying amount                    Allowance for expected credit losses 
                                    Stage 1     Stage 2   Stage 3   Total    Stage 1   Stage 2   Stage 3   Total 
                                    GBPm          GBPm        GBPm        GBPm       GBPm        GBPm        GBPm        GBPm 
 
Loans and advances to banks         207         -         -         207      -         -         -         - 
Allowance for impairment losses     -           -         -         - 
Net carrying amount                 207         -         -         207 
 
Loans and advances to 
customers 
At 1 January 2020             229,741      24,996      5,663       260,400      149      749        1,187      2,085 
Exchange and other            94           1           (2)         93           (2)      1          24         23 
adjustments 
Transfers to Stage 1          3,011        (3,004)     (7)         -            52       (51)       (1)        - 
Transfers to Stage 2          (15,009)     15,731      (722)       -            (63)     120        (57)       - 
Transfers to Stage 3          (401)        (1,598)     1,999       -            (6)      (108)      114        - 
Impact of transfers between   (12,399)     11,129      1,270       -            (33)     372        197        536 
stages 
                                                                                (50)     333        253        536 
Other changes in credit                                                         367      88         587        1,042 
quality 
Additions (repayments)        10,106       (1,665)     (702)       7,739        22       (25)       (28)       (31) 
Charge to the income                                                            339      396        812        1,547 
statement 
Disposal of business          (796)        (24)        -           (820)        -        -          -          - 
Advances written off                                   (552)       (552)                            (552)      (552) 
Recoveries of advances                                 98          98                               98         98 
written off in previous years 
Discount unwind                                                                                     (9)        (9) 
At 31 December 2020           226,746      34,437      5,775       266,958      486      1,146      1,560      3,192 
Allowance for impairment      (486)        (1,146)     (1,560)     (3,192) 
losses 
Net carrying amount           226,260      33,291      4,215       263,766 
Due from fellow Lloyds Banking Group           28,997       -           -          28,997       9      -      -      9 
undertakings 
Allowance for impairment losses                (9)          -           -          (9) 
Net carrying amount                            28,988       -           -          28,988 
Total financial assets at amortised cost       255,455      33,291      4,215      292,961 

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

Note 7: Financial assets at amortised cost (continued)

(MORE TO FOLLOW) Dow Jones Newswires

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

Latest news "Companies"
05:31pSAM BREAKING NEWS : ROSEN, A LEADING AND LONGSTANDING LAW FIRM, Encourages The Boston Beer Company, Inc. Investors with Losses Exceeding $100K to Secure Counsel Before Important Deadline in Securities Class Action – SAM
GL
05:25pMODERNA : U.S. administers about 384.9 mln doses of COVID-19 vaccines -CDC
RE
05:22pINSURANCE AUSTRALIA : NRMA Insurance reveals wild weather data, as Storm Season begins
PU
05:14pMODERNA : U.S. CDC Says Administered 384,911,290 Doses Of COVID-19 Vaccine As Of Sept 18
RE
05:02pGENERAL MOTORS : Cadillac Statement on 2023 Cadillac LYRIQ Debut Edition Reservations
PU
05:01pROSEN, NATIONAL TRIAL LAWYERS, Reminds Tyson Foods, Inc. Investors with Losses of the New September 30 Deadline in Securities Class Action – TSN
GL
05:00pHong Kong's first 'patriots-only' election kicks off
RE
04:58pALPHABET : Navalny allies accuse YouTube, Telegram of censorship in Russian election
RE
04:52pMAGNORA ASA : Mandatory notification of trade
AQ
04:52pENTERGY : Hurricane Ida - Supporting Residents in the Lockport Area
PU
Latest news "Companies"