24 Subordinated liabilities
|
|
|
Group |
|
Bank |
||||
|
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
|
|
£m |
|
£m |
|
£m |
|
£m |
|
Dated loan capital |
|
3,321 |
|
4,626 |
|
3,313 |
|
3,324 |
|
Undated loan capital |
|
2,291 |
|
2,331 |
|
2,184 |
|
2,228 |
|
Preference shares |
|
143 |
|
338 |
|
143 |
|
338 |
|
|
|
|
|
|
|
|
|
|
|
|
|
5,755 |
|
7,295 |
|
5,640 |
|
5,890 |
|
|
|
|
|
|
|
|
|
|
The following tables analyse the remaining contractual maturity of subordinated liabilities by the final redemption date and by the next call date.
|
|
|
|
|
Group |
||||||||||||
|
|
|
|
|
2018 |
|
2019 |
|
2020-2022 |
|
2023-2027 |
|
Thereafter |
|
Perpetual |
|
Total |
|
2017 - final redemption |
|
|
|
£m |
|
£m |
|
£m |
|
£m |
|
£m |
|
£m |
|
£m |
|
Sterling |
|
|
|
18 |
|
1,000 |
|
299 |
|
1,998 |
|
— |
|
1,632 |
|
4,947 |
|
US dollar |
|
|
|
2 |
|
— |
|
— |
|
— |
|
— |
|
524 |
|
526 |
|
Euro |
|
|
|
1 |
|
— |
|
— |
|
— |
|
— |
|
273 |
|
274 |
|
Other |
|
|
|
— |
|
— |
|
— |
|
— |
|
— |
|
8 |
|
8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
21 |
|
1,000 |
|
299 |
|
1,998 |
|
— |
|
2,437 |
|
5,755 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Group |
||||||||||||||
|
|
|
Currently |
|
2018 |
|
2019 |
|
2020-2022 |
|
2023-2027 |
|
Thereafter |
|
Perpetual |
|
Total |
|
2017 - call date |
|
£m |
|
£m |
|
£m |
|
£m |
|
£m |
|
£m |
|
£m |
|
£m |
|
Sterling |
|
701 |
|
3,718 |
|
— |
|
387 |
|
— |
|
— |
|
141 |
|
4,947 |
|
US dollar |
|
— |
|
526 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
526 |
|
Euro |
|
— |
|
158 |
|
9 |
|
— |
|
— |
|
— |
|
107 |
|
274 |
|
Other |
|
— |
|
— |
|
8 |
|
— |
|
— |
|
— |
|
— |
|
8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
701 |
|
4,402 |
|
17 |
|
387 |
|
— |
|
— |
|
248 |
|
5,755 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Group |
||||||||||||||
|
|
|
|
|
2017 |
|
2018 |
|
2019-2021 |
|
2022-2026 |
|
Thereafter |
|
Perpetual |
|
Total |
|
2016 - final redemption |
|
|
|
£m |
|
£m |
|
£m |
|
£m |
|
£m |
|
£m |
|
£m |
|
Sterling |
|
|
|
19 |
|
— |
|
1,408 |
|
2,030 |
|
— |
|
1,617 |
|
5,074 |
|
US dollar |
|
|
|
6 |
|
325 |
|
— |
|
— |
|
— |
|
777 |
|
1,108 |
|
Euro |
|
|
|
344 |
|
— |
|
154 |
|
343 |
|
— |
|
264 |
|
1,105 |
|
Other |
|
|
|
— |
|
— |
|
— |
|
— |
|
— |
|
8 |
|
8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
369 |
|
325 |
|
1,562 |
|
2,373 |
|
— |
|
2,666 |
|
7,295 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Group |
||||||||||||||
|
|
|
Currently |
|
2017 |
|
2018 |
|
2019-2021 |
|
2022-2026 |
|
Thereafter |
|
Perpetual |
|
Total |
|
2016 - call date |
|
£m |
|
£m |
|
£m |
|
£m |
|
£m |
|
£m |
|
£m |
|
£m |
|
Sterling |
|
1,689 |
|
18 |
|
2,700 |
|
408 |
|
89 |
|
— |
|
170 |
|
5,074 |
|
US dollar |
|
1,108 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
1,108 |
|
Euro |
|
162 |
|
343 |
|
— |
|
154 |
|
326 |
|
— |
|
120 |
|
1,105 |
|
Other |
|
8 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,967 |
|
361 |
|
2,700 |
|
562 |
|
415 |
|
— |
|
290 |
|
7,295 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank |
||||||||||||
|
|
|
2018 |
|
2019 |
|
2020-2022 |
|
2023-2027 |
|
Thereafter |
|
Perpetual |
|
Total |
|
2017 - final redemption |
|
£m |
|
£m |
|
£m |
|
£m |
|
£m |
|
£m |
|
£m |
|
Sterling |
|
18 |
|
1,000 |
|
299 |
|
2,000 |
|
— |
|
1,630 |
|
4,947 |
|
US dollar |
|
2 |
|
— |
|
— |
|
— |
|
— |
|
524 |
|
526 |
|
Euro |
|
1 |
|
— |
|
— |
|
— |
|
— |
|
166 |
|
167 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
21 |
|
1,000 |
|
299 |
|
2,000 |
|
— |
|
2,320 |
|
5,640 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank |
||||||||||||||
|
|
|
Currently |
|
2018 |
|
2019 |
|
2020-2022 |
|
2023-2027 |
|
Thereafter |
|
Perpetual |
|
Total |
|
2017 - call date |
|
£m |
|
£m |
|
£m |
|
£m |
|
£m |
|
£m |
|
£m |
|
£m |
|
Sterling |
|
701 |
|
3,718 |
|
— |
|
388 |
|
— |
|
— |
|
140 |
|
4,947 |
|
US dollar |
|
— |
|
526 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
526 |
|
Euro |
|
— |
|
167 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
167 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
701 |
|
4,411 |
|
— |
|
388 |
|
— |
|
— |
|
140 |
|
5,640 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank |
||||||||||||
|
|
|
|
|
2017 |
|
2018 |
|
2019-2021 |
|
2022-2026 |
|
Thereafter |
|
Perpetual |
|
Total |
|
2016 - final redemption |
|
|
|
£m |
|
£m |
|
£m |
|
£m |
|
£m |
|
£m |
|
£m |
|
Sterling |
|
|
|
18 |
|
— |
|
1,310 |
|
2,001 |
|
— |
|
1,628 |
|
4,957 |
|
US dollar |
|
|
|
6 |
|
— |
|
— |
|
— |
|
— |
|
765 |
|
771 |
|
Euro |
|
|
|
1 |
|
— |
|
— |
|
— |
|
— |
|
161 |
|
162 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
25 |
|
— |
|
1,310 |
|
2,001 |
|
— |
|
2,554 |
|
5,890 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank |
||||||||||||||
|
|
|
Currently |
|
2017 |
|
2018 |
|
2019-2021 |
|
2022-2026 |
|
Thereafter |
|
Perpetual |
|
Total |
|
2016 - call date |
|
£m |
|
£m |
|
£m |
|
£m |
|
£m |
|
£m |
|
£m |
|
£m |
|
Sterling |
|
1,700 |
|
18 |
|
2,701 |
|
309 |
|
89 |
|
— |
|
140 |
|
4,957 |
|
US dollar |
|
771 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
771 |
|
Euro |
|
162 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
162 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,633 |
|
18 |
|
2,701 |
|
309 |
|
89 |
|
— |
|
140 |
|
5,890 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital |
|
2017 |
|
2016 |
|
Transfers from fellow subsidiaries |
|
treatment |
|
£m |
|
£m |
|
National Westminster Bank Plc |
|
|
|
|
|
|
|
SEK 3 million dated notes (1) |
|
Tier 1 |
|
— |
|
8 |
|
Note: |
|
|
|
|
|
|
|
(1) |
Nordisk Issuance - transferred from RBS to NatWest in 2016 in preparation for ring-fencing. |
|
|
|
Capital |
|
2017 |
|
2016 |
|
Redemptions in the period (values as at date of transaction) |
|
treatment |
|
£m |
|
£m |
|
National Westminster Bank Plc |
|
|
|
|
|
|
|
US$ 300 million 8.6250% non-cumulative preference shares (callable) |
|
Tier 1 |
|
178 |
|
— |
|
|
|
|
|
|
|
|
|
Coutts & Company |
|
|
|
|
|
|
|
€20 million floating rate subordinated loan capital 2023 |
|
Tier 2 |
|
18 |
|
— |
|
£30 million floating rate subordinated loan capital - 2023 |
|
Tier 2 |
|
30 |
|
— |
|
£13.3 million 0.7294% undated subordinated notes |
|
Tier 2 |
|
13 |
|
— |
|
US$ 15 million 0.4691% undated subordinated notes |
|
Tier 2 |
|
11 |
|
— |
|
|
|
|
|
|
|
|
|
Ulster Bank Limited |
|
|
|
|
|
|
|
£100 million floating rate subordinated loan capital 2019 |
|
Tier 2 |
|
100 |
|
— |
|
€120 million perpetual floating rate notes 2020 |
|
Tier 2 |
|
107 |
|
— |
|
€60 million perpetual floating rate notes 2020 |
|
Tier 2 |
|
53 |
|
— |
|
€280 million subordinated loan capital December 2022 |
|
Tier 2 |
|
249 |
|
— |
|
€400 million subordinated loan December 2017 |
|
Tier 2 |
|
355 |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
1,114 |
|
— |
|
|
|
|
|
|
|
|
|
|
|
Capital |
|
2017 |
|
2016 |
|
Dated loan capital |
|
treatment |
|
£m |
|
£m |
|
National Westminster Bank Plc |
|
|
|
|
|
|
|
£300 million 6.50% notes 2021 (not callable) |
|
Tier 2 |
|
305 |
|
315 |
|
£2,000 million floating rate notes 2023 (callable January 2018) |
|
Tier 2 |
|
2,008 |
|
2,009 |
|
£1,000 million floating rate notes 2019 (callable quarterly) |
|
Tier 2 |
|
1,000 |
|
1,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
3,313 |
|
3,324 |
|
|
|
|
|
|
|
|
Notes:
|
(1) |
In the event of certain changes in tax laws, dated loan capital issues may be redeemed in whole, but not in part, at the option of the issuer, at the principal amount thereof plus accrued interest, subject to prior regulatory approval. |
|
(2) |
Except as stated above, claims in respect of the Group’s dated loan capital are subordinated to the claims of other creditors. None of the Group’s dated loan capital is secured. |
|
(3) |
Interest on all floating rate subordinated notes is calculated by reference to market rates. |
|
|
|
Capital |
|
2017 |
|
2016 |
|
Undated loan capital |
|
treatment |
|
£m |
|
£m |
|
National Westminster Bank Plc |
|
|
|
|
|
|
|
US$193 million floating rate notes (callable semi-annually) |
|
Tier 2 |
|
144 |
|
157 |
|
US$229 million floating rate notes (callable semi-annually) |
|
Tier 2 |
|
171 |
|
187 |
|
US$285 million floating rate notes (callable semi-annually) |
|
Tier 2 |
|
211 |
|
232 |
|
€178 million floating rate notes (callable quarterly) |
|
Tier 2 |
|
158 |
|
153 |
|
€100 million floating rate notes (callable quarterly) |
|
Tier 2 |
|
9 |
|
9 |
|
£53 million 7.125% notes (callable every five years from October 2022) |
|
Tier 2 |
|
55 |
|
55 |
|
£35 million 11.50% notes (callable December 2022) (1) |
|
Tier 2 |
|
35 |
|
35 |
|
£700 million floating rate notes (callable every five years from January 2018) |
|
Tier 2 |
|
700 |
|
700 |
|
£700 million floating rate notes (callable quarterly from September 2016) |
|
Tier 2 |
|
701 |
|
700 |
|
|
|
|
|
|
|
|
|
|
|
|
|
2,184 |
|
2,228 |
|
|
|
|
|
|
|
|
Notes:
|
(1) |
Exchangeable at the option of the issuer into 8.392% (gross) non-cumulative preference shares of £1 each of National Westminster Bank Plc at any time. |
|
(2) |
The company can satisfy interest payment obligations by issuing sufficient ordinary shares to appointed Trustees to enable them, on selling these shares, to settle the interest payment. |
|
(3) |
Except as stated above, claims in respect of the Group’s undated loan capital are subordinated to the claims of other creditors. None of the Group’s undated loan capital is secured. |
|
(4) |
In the event of certain changes in tax laws, undated loan capital issues may be redeemed in whole, but not in part, at the option of the Group, at the principal amount thereof plus accrued interest, subject to prior regulatory approval. |
|
(5) |
Interest on all floating rate subordinated notes is calculated by reference to market rates. |
|
|
|
Capital |
|
2017 |
|
2016 |
|
Preference shares (1) |
|
treatment |
|
£m |
|
£m |
|
National Westminster Bank Plc |
|
|
|
|
|
|
|
£140 million 9.00% Series A non-cumulative preference shares of £1 (not callable) |
|
Tier 1 |
|
143 |
|
143 |
|
US$300 million 8.625% Series C non-cumulative preference shares of US$25 |
|
|
|
|
|
|
|
(callable quarterly) |
|
Tier 1 |
|
— |
|
195 |
|
|
|
|
|
|
|
|
|
|
|
|
|
143 |
|
338 |
|
|
|
|
|
|
|
|
Note:
|
(1) |
Further details of the contractual terms of the preference shares are given in Note 25. |
The Group has now resumed payments on all discretionary non-equity capital instruments following the end of the European Commission ban in 2012. Future coupons and dividends on hybrid capital instruments will only be paid subject to, and in accordance with, the terms of the relevant instruments.
The preference shares issued by the company are classified as liabilities; these securities remain subject to the capital maintenance rules of the Companies Act 2006.