DOCSLIB.ORG

2020-Bos-Annual-Report.Pdf

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
2020-Bos-Annual-Report.Pdf Bank of Scotland plc Report and Accounts 2020 Member of Lloyds Banking Group Bank of Scotland plc Contents Strategic report 2 Directors’ report 10 Directors 14 Forward looking statements 15 Independent auditors’ report 16 Consolidated income statement 25 Statements of comprehensive income 26 Balance sheets 28 Statements of changes in equity 30 Cash flow statements 32 Notes to the accounts 33 Subsidiaries and related undertakings 122 Registered office: The Mound, Edinburgh EH1 1YZ. Registered in Scotland No. 327000 Bank of Scotland plc Strategic report Principal activities Bank of Scotland plc (the Bank) and its subsidiaries (together, the Group) provide a wide range of banking and financial services. The Group’s revenue is earned through interest and fees on a broad range of financial services products including current and savings accounts, personal loans, credit cards and mortgages within the retail market; loans and other products to commercial, corporate and asset finance customers; and private banking. Business review In the year to 31 December 2020, the Group recorded a profit before tax of £883 million compared to £1,278 million in the year to 31 December 2019. Total income decreased by £886 million, or 15 per cent, to £5,147 million in the year ended 31 December 2020 compared to £6,033 million in 2019 with a £220 million decrease in net interest income combined with a reduction of £666 million in other income. Net interest income was £5,208 million in the year ended 31 December 2020, a decrease of £220 million, or 4 per cent compared to £5,428 million in 2019 reflecting the lower rate environment, actions taken during the year to support customers and reduced levels of customer activity and demand during the coronavirus pandemic. Other income was £666 million lower at a net loss of £61 million in the year ended 31 December 2020 compared to a net gain of £605 million in 2019. Net fee and commission income was £121 million lower at £199 million in the year ended 31 December 2020 compared to £320 million in 2019, reflecting lower levels of customer activity, largely due to the coronavirus pandemic. Net trading income was £614 million lower at a net loss of £369 million in the year ended 31 December 2020 due to losses incurred on hedging arrangements entered into with fellow Lloyds Banking Group undertakings. Other operating income was £69 million higher at £109 million in the year ended 31 December 2020 compared to a net gain of £40 million in 2019. Total operating expenses of £2,642 million were 39 per cent lower than in 2019, driven by significantly lower regulatory provisions and continued reductions in other operating expenses. Regulatory provisions benefitted from a £1,040 million reduction in charges in respect of payment protection insurance compared to 2019. Other operating expenses were down £553 million, driven by lower staff costs and ongoing cost management. Impairment losses increased by £1,172 million to £1,622 million in the year ended 31 December 2020 compared with £450 million in 2019, largely reflecting potential future losses in light of the Group’s revised economic outlook for the UK as a consequence of the coronavirus pandemic. The tax credit for the year ended 31 December 2020 was £30 million representing an effective negative tax rate of 3 per cent compared to a tax expense of £604 million in 2019 representing an effective tax rate of 47 per cent. This is primarily as a result of a credit of £182 million on remeasurement of the Group’s deferred tax balances following the UK government’s decision to maintain the corporation tax rate at 19 per cent, which was substantively enacted on 17 March 2020. Total assets were £65,446 million lower at £310,328 million at 31 December 2020 compared to £375,774 million at 31 December 2019. Loans and advances to customers increased in the year by £5,451 million to £263,766 million, compared to £258,315 million at 31 December 2019, driven by open mortgage book growth reflecting the strength of the UK housing market. Amounts due from fellow Lloyds Banking Group undertakings were £68,546 million lower at £28,988 million compared to £97,534 million at 31 December 2019 as a result of increased levels of settlement activity during 2020. Customer deposits were £11,156 million higher at £163,001 million at 31 December 2020 compared to £151,845 million at 31 December 2019 as a result of lower levels of customer spending during the pandemic and inflows to the Group’s trusted brands. Amounts due to fellow Lloyds Banking Group undertakings were £69,665 million lower at £91,953 million at 31 December 2020 compared to £161,618 million at the previous year end, as a result of increased levels of settlement activity during 2020. Total equity increased by £298 million from £13,090 million at 31 December 2019 to £13,388 million at 31 December 2020 with total comprehensive income of £929 million and the issue of £1,000 million of other equity instruments more than offsetting £1,500 million of redemptions and £164 million of distributions on other equity instruments. The Bank’s common equity tier 1 capital ratio increased to 15.5 per cent (31 December 2019: 13.5 per cent), largely reflecting profits for the year, with the impact of the impairment charge partially mitigated through the increase in IFRS 9 transitional relief for capital. The tier 1 capital ratio increased to 19.1 per cent (31 December 2019: 18.2 per cent) following the increase in common equity tier 1 capital, partially offset by a net reduction in AT1 instruments following a redemption and the subsequent issuance of a new instrument. The total capital ratio increased to 22.1 per cent (31 December 2019: 22.0 per cent) reflecting the increase in tier 1 capital, largely offset by a reduction in tier 2 capital which reflected movements in the regulatory value of tier 2 instruments, partially offset by the issuance of a new tier 2 instrument and a net increase in eligible provisions and other adjustments. Risk-weighted assets reduced by £29 million to £61,304 million at 31 December 2020 compared to £61,333 million at 31 December 2019, with reductions in operational and market risk-weighted assets broadly offset by an increase in credit risk-weighted assets driven by open mortgage book growth, credit migrations and retail model calibrations and updates. Post-tax return on average assets was stable at 0.2 per cent. 2 Bank of Scotland plc Strategic report Future developments Information about future developments is provided with the Principal risks and uncertainties section below. Capital position at 31 December 2020 Following a change in approach, the capital position of Bank of Scotland plc is now restated on the basis of the Bank where previously this was presented on the basis of the Group. Prior period comparatives reflect the position of the Bank at 31 December 2019. The Bank’s capital position as at 31 December 2020, applying transitional rules in respect of legacy capital securities subject to current grandfathering provisions and IFRS 9 transitional arrangements, is set out in the following section. Bank capital ratios (audited) At 31 December At 31 December 2020 2019 Capital resources (transitional) £m £m Common equity tier 1 Shareholders’ equity per balance sheet 10,770 9.972 Cash flow hedging reserve 45 41 Other adjustments 771 246 11,586 10,259 Less: deductions from common equity tier 1 Goodwill and other intangible assets (470) (461) Prudent valuation adjustment (79) (92) Removal of defined benefit pension surplus (50) (37) Deferred tax assets (1,477) (1,362) Common equity tier 1 capital 9,510 8,307 Additional tier 1 Additional tier 1 instruments 2,221 2,872 Total tier 1 capital 11,731 11,179 Tier 2 Tier 2 instruments 1,943 2,572 Eligible provisions and other adjustments (97) (232) Total tier 2 capital 1,846 2,340 Total capital resources 13,577 13,519 Risk-weighted assets (unaudited) 61,304 61,333 Common equity tier 1 capital ratio1 15.5% 13.5% Tier 1 capital ratio1 19.1% 18.2% Total capital ratio1 22.1% 22.0% 1 Reflecting the full impact of IFRS 9 at 31 December 2020, without the application of transitional arrangements, the Bank’s common equity tier 1 capital ratio would be 14.2 per cent, the tier 1 capital ratio would be 17.8 per cent and the total capital ratio would be 21.4 per cent. 3 Bank of Scotland plc Strategic report Table 1.2: Risk-weighted assets (unaudited)‌‌‌‌ At 31 December At 31 December 2020 2019 £m £m Risk-weighted assets (Bank) Foundation Internal Ratings Based (IRB) Approach 4,245 4,500 Retail IRB Approach 39,137 36,696 Other IRB Approach 1,958 1,778 IRB Approach 45,340 42,974 Standardised Approach 5,815 7,278 Credit risk 51,155 50,252 Counterparty credit risk 473 481 Credit valuation adjustment risk 100 78 Operational risk 8,801 9,357 Market risk 220 492 Underlying risk-weighted assets 60,749 60,660 Threshold risk-weighted assets 555 673 Total risk-weighted assets 61,304 61,333 4 Bank of Scotland plc Strategic report Section 172(1) Statement In accordance with the Companies Act 2006 (the ‘Act’), the Directors provide this statement describing how they have had regard to the matters set out in section 172(1) of the Act, when performing their duty to promote the success of the Bank, under section 172. This statement also provides details of how the Directors have engaged with and had regard to the interests of key stakeholders.
Load more

Recommended publications
  • 20Annual Report 2020 Equiniti Group
    EQUINITI GROUP PLC 20ANNUAL REPORT 2020 PURPOSEFULLY DRIVEN | DIGITALLY FOCUSED | FINANCIAL FUTURES FOR ALL Equiniti (EQ) is an international provider of technology and solutions for complex and regulated data and payments, serving blue-chip enterprises and public sector organisations. Our purpose is to care for every customer and simplify each and every transaction. Skilled people and technology-enabled services provide continuity, growth and connectivity for businesses across the world. Designed for those who need them the most, our accessible services are for everyone. Our vision is to help businesses and individuals succeed, creating positive experiences for the millions of people who rely on us for a sustainable future. Our mission is for our people and platforms to connect businesses with markets, engage customers with their investments and allow organisations to grow and transform. 2 Contents Section 01 Strategic Report Headlines 6 COVID-19: Impact And Response 8 About Us 10 Our Business Model 12 Our Technology Platforms 14 Our Markets 16 Our Strategy 18 Our Key Performance Indicators 20 Chairman’s Statement 22 Chief Executive’s Statement 24 Operational Review 26 Financial Review 34 Alternative Performance Measures 40 Environmental, Social and Governance 42 Principal Risks and Uncertainties 51 Viability Statement 56 Section 02 Governance Report Corporate Governance Report 62 Board of Directors 64 Executive Committee 66 Board 68 Audit Committee Report 78 Risk Committee Report 88 Nomination Committee Report 95 Directors' Remuneration
    [Show full text]
  • 18 February 2019 Solvency and Diversification in Insurance Remain Key Strengths Despite Change in Structure
    FINANCIAL INSTITUTIONS ISSUER IN-DEPTH Lloyds Banking Group plc 18 February 2019 Solvency and diversification in insurance remain key strengths despite change in structure Summary RATINGS In 2018, Lloyds Banking Group plc (LBG) altered its structure to comply with the UK's ring- Lloyds Banking Group plc Baseline Credit a3 fencing legislation, which requires large banks to separate their retail and SME operations, Assessment (BCA) and deposit taking in the European Economic Area (EEA) from their other activities, including Senior unsecured A3 Stable the riskier capital markets and trading business. As part of the change, LBG designated Lloyds Bank plc as the“ring-fenced” entity housing its retail, SME and corporate banking operations. Lloyds Bank plc It also assumed direct ownership of insurer Scottish Widows Limited, previously a subsidiary Baseline Credit A3 Assessment (BCA) of Lloyds Bank. The changes had little impact on the creditworthiness of LBG and Lloyds Adjusted BCA A3 Bank, leading us to affirm the deposit and senior unsecured ratings of both entities. Scottish Deposits Aa3 Stable/Prime-1 Widows' ratings were unaffected. Senior unsecured Aa3 Stable » LBG's reorganisation was less complex than that of most UK peers. The Lloyds Lloyds Bank Corporate Markets plc Banking Group is predominantly focused on retail and corporate banking, and the Baseline Credit baa3 required structural changes were therefore relatively minor. The group created a small Assessment (BCA) separate legal entity, Lloyds Bank Corporate Markets plc (LBCM), to manage its limited Adjusted BCA baa1 Deposits A1 Stable/Prime-1 capital markets and trading operations, and it transferred its offshore subsidiary, Lloyds Issuer rating A1 Stable Bank International Limited (LBIL), to LBCM from Lloyds Bank.
    [Show full text]
  • Business Banking Service Quality - Great Britain
    Business banking service quality - Great Britain Independent service quality survey results Business current accounts Published August 2019 As part of a regulatory requirement, an independent survey was conducted to ask customers of the 14 largest business current account providers if they would recommend their provider to other small and medium-sized enterprises (SMEs*). The results represent the view of customers who took part in the survey. These results are from an independent survey carried out between July 2018 and June 2019 by BVA BDRC as part of a regulatory requirement, and we have published this information at the request of the providers and the Competition and Markets Authority so you can compare the quality of service from business current account providers. In providing this information, we are not giving you any advice or making any recommendation to you. SME customers with business current accounts were asked how likely they would be to recommend their provider, their provider’s online and mobile banking services, services in branches and business centres, SME overdraft and loan services and relationship/account management services to other SMEs. The results show the proportion of customers of each provider who said they were ’extremely likely’ or ‘very likely’ to recommend each service. Participating providers: Allied Irish Bank (GB), Bank of Scotland, Barclays, Clydesdale Bank, Handelsbanken, HSBC UK, Lloyds Bank, Metro Bank, NatWest, Royal Bank of Scotland, Santander UK, The Co-operative Bank, TSB, Yorkshire Bank. Approximately 1,200 customers a year are surveyed across Great Britain for each provider; results are only published where at least 100 customers have provided an eligible score for that service in the survey period.
    [Show full text]
  • Hsbc to Acquire Lloyds Banking Group Onshore Assets in the Uae
    Ab c 29 March 2012 HSBC TO ACQUIRE LLOYDS BANKING GROUP ONSHORE ASSETS IN THE UAE HSBC Bank Middle East Ltd (‘HSBC’), an indirect wholly-owned subsidiary of HSBC Holdings plc, has entered into an agreement to acquire the onshore retail and commercial banking business of Lloyds Banking Group (‘Lloyds’) in the United Arab Emirates (‘UAE’). The value of the gross assets being acquired is US$769m as at 31 December 2011. The transaction, which is subject to regulatory approvals, is expected to complete in 2012. HSBC’s largest operations in the MENA region are based in the UAE where HSBC enjoys a market-leading trade and commercial banking presence, in addition to the largest international retail banking and wealth management business. The business being acquired from Lloyds has approximately 8,800 personal and commercial customers and a loan book of approximately US$573m as at 31 December 2011. Commenting on the acquisition, Simon Cooper, Deputy Chairman and Chief Executive Officer of HSBC in MENA, said: “HSBC is the leading international bank in the UAE and the addition of Lloyds’ strong presence in retail and commercial banking is highly complementary to our business. The acquisition underscores the strategic importance of the UAE, and of the MENA region as a whole, to HSBC.” Media enquiries to: Tim Harrison + 971 4 4235632 [email protected] Brendan McNamara +44 (0) 20 7991 0655 [email protected] ends/more Registered Office and Group Head Office: This news release is issued by 8 Canada Square, London E14 5HQ, United Kingdom Web: www.hsbc.com HSBC Holdings plc Incorporated in England with limited liability.
    [Show full text]
  • Natwest, Lloyds Bank and Barclays Pilot UK's First Business Banking Hubs
    NatWest, Lloyds Bank and Barclays pilot UK’s first business banking hubs NatWest, Lloyds Bank and Barclays have announced that they will pilot the UK’s first shared business banking hubs. The first hub will open its door in Perry Barr, Birmingham today. The pilot will also see five other shared hubs open across the UK in the coming weeks The hubs have been specifically designed to enable businesses that manage cash and cheque transactions to pay in large volumes of coins, notes and cheques and complete cash exchange transactions. They will be available on a trial basis to pre-selected business clients in each local area and will offer extended opening times (8am to 8pm) 7 days a week, providing business and corporate customers more flexibility to manage their day-to-day finances. The hubs will be branded Business Banking Hub and they have been designed to enable business customers from Natwest, Lloyds Bank and Barclays to conduct transactions through a shared facility. Commenting on the launch of the pilot, Deputy CEO of NatWest Holdings and CEO of NatWest Commercial and Private Banking Alison Rose said: “We have listened to what our business customers really want from our cash services. It is now more important than ever that we continue to offer innovative services, and we are creating an infrastructure that allows small business owners and entrepreneurs to do what they do best - run their business. I look forward to continued working with fellow banks to ensure the UK's businesses are getting the support they deserve." Commenting on the support this will provide businesses, Paul Gordon, Managing Director of SME and Mid Corporates at Lloyds Bank Commercial Banking said: “SMEs are the lifeblood of the UK economy.
    [Show full text]
  • Meet the Exco
    Meet the Exco 18th March 2021 Alison Rose Chief Executive Officer 2 Strategic priorities will drive sustainable returns NatWest Group is a relationship bank for a digital world. Simplifying our business to improve customer experience, increase efficiency and reduce costs Supporting Powering our strategy through customers at Powered by Simple to Sharpened every stage partnerships deal with capital innovation, partnership and of their lives & innovation allocation digital transformation. Our Targets Lending c.4% Cost Deploying our capital effectively growth Reduction above market rate per annum through to 20231 through to 20232 CET1 ratio ROTE Building Financial of 13-14% of 9-10% capability by 2023 by 2023 1. Comprises customer loans in our UK and RBS International retail and commercial businesses 2. Total expenses excluding litigation and conduct costs, strategic costs, operating lease depreciation and the impact of the phased 3 withdrawal from the Republic of Ireland Strategic priorities will drive sustainable returns Strengthened Exco team in place Alison Rose k ‘ k’ CEO to deliver for our stakeholders Today, introducing members of the Executive team who will be hosting a deep dive later in the year: David Lindberg 20th May: Commercial Banking Katie Murray Peter Flavel Paul Thwaite CFO CEO, Retail Banking NatWest Markets CEO, Private Banking CEO, Commercial Banking 29th June: Retail Banking Private Banking Robert Begbie Simon McNamara Jen Tippin CEO, NatWest Markets CAO CTO 4 Meet the Exco 5 Retail Banking Strategic Priorities David
    [Show full text]
  • Reference Banks / Finance Address
    Reference Banks / Finance Address B/F2 Abbey National Plc Abbey House Baker Street LONDON NW1 6XL B/F262 Abbey National Plc Abbey House Baker Street LONDON NW1 6XL B/F57 Abbey National Treasury Services Abbey House Baker Street LONDON NW1 6XL B/F168 ABN Amro Bank 199 Bishopsgate LONDON EC2M 3TY B/F331 ABSA Bank Ltd 52/54 Gracechurch Street LONDON EC3V 0EH B/F175 Adam & Company Plc 22 Charlotte Square EDINBURGH EH2 4DF B/F313 Adam & Company Plc 42 Pall Mall LONDON SW1Y 5JG B/F263 Afghan National Credit & Finance Ltd New Roman House 10 East Road LONDON N1 6AD B/F180 African Continental Bank Plc 24/28 Moorgate LONDON EC2R 6DJ B/F289 Agricultural Mortgage Corporation (AMC) AMC House Chantry Street ANDOVER Hampshire SP10 1DE B/F147 AIB Capital Markets Plc 12 Old Jewry LONDON EC2 B/F290 Alliance & Leicester Commercial Lending Girobank Bootle Centre Bridal Road BOOTLE Merseyside GIR 0AA B/F67 Alliance & Leicester Plc Carlton Park NARBOROUGH LE9 5XX B/F264 Alliance & Leicester plc 49 Park Lane LONDON W1Y 4EQ B/F110 Alliance Trust Savings Ltd PO Box 164 Meadow House 64 Reform Street DUNDEE DD1 9YP B/F32 Allied Bank of Pakistan Ltd 62-63 Mark Lane LONDON EC3R 7NE B/F134 Allied Bank Philippines (UK) plc 114 Rochester Row LONDON SW1P B/F291 Allied Irish Bank Plc Commercial Banking Bankcentre Belmont Road UXBRIDGE Middlesex UB8 1SA B/F8 Amber Homeloans Ltd 1 Providence Place SKIPTON North Yorks BD23 2HL B/F59 AMC Bank Ltd AMC House Chantry Street ANDOVER SP10 1DD B/F345 American Express Bank Ltd 60 Buckingham Palace Road LONDON SW1 W B/F84 Anglo Irish
    [Show full text]
  • FSCS Information Sheet
    FINANCIAL SERVICES COMPENSATION SCHEME INFORMATION SHEET Basic information about the protection of your eligible deposits Eligible deposits in Bank of Scotland plc are protected by: The Financial Services Compensation Scheme (“FSCS”)1 Limit of protection: £85,000 per depositor per bank2 The following trading names are part of your bank: Halifax, Intelligent Finance (IF), Birmingham Midshires (BM Savings), Bank of Scotland, Bank of Scotland Private Banking, Bank of Wales, and St. James’s Place Bank. Some savings accounts under the AA Savings and Saga brand names are also deposits with Bank of Scotland plc. If you have more eligible deposits at the same bank: All your eligible deposits at the same bank are “aggregated” and the total is subject to the limit of £85,0002 If you have a joint account with other person(s): The limit of £85,000 applies to each depositor separately3 Reimbursement period in case of bank’s failure: 20 working days4 Currency of reimbursement: Pound sterling (GBP, £) To contact Bank of Scotland plc for enquiries relating to You can visit one of our branches, call us, go online or your account: write to us at the address below: The Mound, Edinburgh, EH1 1YZ To contact the FSCS for further information Financial Services Compensation Scheme, on compensation: 10th Floor Beaufort House, 15 St Botolph Street, London, EC3A 7QU Tel: 0800 678 1100 or 020 7741 4100 Email: [email protected] More information: http://www.fscs.org.uk Additional Information 1 Scheme responsible for the protection of your eligible deposit Your eligible deposit is covered by a statutory Deposit Guarantee Scheme.
    [Show full text]
  • The Royal Bank of Scotland Group Pie File No
    UNITED STATES SECURITI ES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 DIVISION OF TRADING AND MARKETS August 3, 20 15 Ms. Connie Milonakis Davis Polk & Wardwell London LLP 5 Aldermanbury Square London EC2V 7HR England Re: The Royal Bank of Scotland Group pie File No. TP 15-17 Dear Ms. Milonakis: In your letter dated August 3, 2015, as supplemented by conversations with the staff, you request on behalf ofThe Royal Bank of Scotland Group plc, a public limited company organized under the laws of the United Kingdom and registered in Scotland ("RBSG"), an exemption from Rule 102 of Regulation Munder the Securities Exchange Act of 1934, as amended ("Exchange Act") in connection with the distribution of the ordinary shares of RBSG ("RBSG Shares") and the American Depositary Shares each representing the right to receive two RBSG Shares ("RBSG ADSs") by way of a placement of RBSG Shares (the "Placing") to interested purchasers by United Kingdom Financial Investments, which manages the shareholding of the United Kingdom Treasury in RBSG. 1 You seek an exemption to permit RBSG and RBSG Affiliates to conduct specified transactions outside the United States in RBSG Ordinary Shares during the Placing. Specifically, you request that: (i) RBSG CIB be permitted to continue to engage in derivatives and investor product market-making and hedging activities as described in your letter; (ii) the RBSG Asset Manager and RBSG Investment Managers be permitted to continue to engage in investment management activities as described in your letter; (iii) the RBSG Trustees and Personal Representatives be permitted to continue to engage in trustee and personal representative-related activities as described in your letter; (iv) the RBSG Banking Units be permitted to continue to engage in banking-related activities as described in your letter; and (v) the RBSG Stock Borrowing and Lending Units be permitted to continue to engage in stock borrowing and lending activities as described in your letter.
    [Show full text]
  • Bank of Scotland
    Bank of Scotland plc (Incorporated with limited liability in Scotland with registered number SC 327000) €60 billion Covered Bond Programme unconditionally guaranteed by HBOS plc (incorporated with limited liability in Scotland with registered number SC218813) and unconditionally and irrevocably guaranteed as to payments of interest and principal by HBOS Covered Bonds LLP (a limited liability partnership incorporated in England and Wales) Under this €60 billion covered bond programme (the “Programme”), Bank of Scotland plc (the “Issuer”) may from time to time issue bonds (the “Covered Bonds”) denominated in any currency agreed between the Issuer and the relevant Dealer(s) (as defined below). The payments of all amounts due in respect of the Covered Bonds have been unconditionally guaranteed by HBOS plc (“HBOS” in its capacity as guarantor, the “HBOS Group Guarantor”). HBOS Covered Bonds LLP (the “LLP” and, together with the HBOS Group Guarantor, the “Guarantors”) has guaranteed payments of interest and principal under the Covered Bonds pursuant to a guarantee which is secured over the Portfolio (as defined below) and its other assets. Recourse against the LLP under its guarantee is limited to the Portfolio and such assets. The Covered Bonds may be issued in bearer or registered form (respectively “Bearer Covered Bonds” and “Registered Covered Bonds”). The maximum aggregate nominal amount of all Covered Bonds from time to time outstanding under the Programme will not exceed €60 billion (or its equivalent in other currencies calculated as described in the Programme Agreement described herein), subject to increase as described herein. The Covered Bonds may be issued on a continuing basis to one or more of the Dealers specified under General Description of the Programme and any additional Dealer appointed under the Programme from time to time by the Issuer (each a “Dealer” and together the “Dealers”), which appointment may be for a specific issue or on an ongoing basis.
    [Show full text]
  • Rating Action, Barclays Bank UK
    Rating Action: Moody's takes rating actions on Barclays, Lloyds, Santander UK, Nationwide and Close Brothers, following update to banks methodology 13 Jul 2021 London, 13 July 2021 -- Moody's Investors Service (Moody's) has today taken rating actions on Barclays, Lloyds, Santander UK and Close Brothers banking groups and on Nationwide Building Society, including the upgrade of the long-term senior ratings of Lloyds Banking Group plc and Close Brothers Group plc. The rating actions were driven by revisions to Moody's Advanced Loss Given Failure (Advanced LGF) framework, which is applied to banks operating in jurisdictions with Operational Resolution Regimes, following the publication of Moody's updated Banks Methodology on 9 July 2021. This methodology is available at this link: https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1269625 . A full list of affected ratings and assessments can be found at the end of this Press Release. RATINGS RATIONALE Today's rating actions were driven by revisions to the Advanced Loss Given Failure framework within Moody's updated Banks Methodology: a revised notching guidance table, with thresholds at lower levels of subordination and volume in the liability structure have been applied to the UK banks and Additional Tier 1 (AT1) securities issued by banks domiciled in the UK have been included in the Advanced LGF framework, eliminating the previous analytical distinction between those high trigger instruments that were deemed to provide equity-like absorption of losses before the point of failure and other AT1 securities. Moody's removal of equity credit for high trigger Additional Tier 1 (AT1) instruments from banks' going concern capital means that affected banks have reduced capacity to absorb unexpected losses before the point of failure, everything else being equal.
    [Show full text]
  • Change of Name Faqs
    Change of name FAQs On 14 February 2020, The Royal Bank of Scotland Group plc (the Group) announced its intention to change the Group’s company name from ‘The Royal Bank of Scotland Group plc’ to ‘NatWest Group plc’. It’s anticipated that the name change will become effective later in 2020. 1. Why is the Group changing its name? Given the Group’s progress, the solid financial footing it is now on and the forward- looking customer focused strategy it is implementing, the Board considers this the right time for the Group name to reflect the brand under which the majority of its business is delivered: NatWest. 2. What will happen to the ordinary and/or preference shares I currently hold in the Group? The ordinary and/or preference shares you currently hold in the Group (‘RBS shares’) will continue to exist once the name is legally changed, but the RBS shares will become shares in NatWest Group plc. There will be no change to nominal value or structure of your shareholding as a result of the change of name. 3. What will happen to the share price? This is a legal name change. The share price is influenced by many factors and can go up as well as down. 4. Will I receive a new share certificate? If you hold your RBS shares in certificated form, you won’t receive a new share certificate in the new company name; your existing share certificate(s) will remain valid. Any share certificates issued following the legal change of name will be in the name of NatWest Group plc.
    [Show full text]