v3.25.4
Derivative financial instruments and hedge accounting (Tables)
 12 Months Ended
Dec. 31, 2025
Statements [Line Items]  
Summary of Outstanding Derivative Financial Instruments
The Group’s approach to the management of financial risks is set out in note 19. The Group’s outstanding derivative financial instruments are as follows:
 
                   
2025
                  
2024
  
  All figures in £ millions
   
Gross
notional
  amounts
     
  Assets
     
  Liabilities
    
Gross
notional
  amounts
     
  Assets
     
  Liabilities
  
Interest rate derivatives – in a fair value hedge relationship
     
–
       
–
       
–
 
      166        –        (1 ) 
Interest rate derivatives – not in a hedge relationship
     
375
       
14
       
(2
)
 
      779        22        (6 ) 
Cross-currency rate derivatives – in a hedge relationship
     
–
       
–
       
–
 
      342        21        (32 ) 
Cross-currency rate derivatives – not in a hedge relationship
     
–
       
–
       
–
 
      83        –        (4 ) 
FX derivatives – in a hedge relationship
     
993
       
2
       
(1
)
      1,049        –        (15 ) 
FX derivatives – not in a hedge relationship
     
163
       
–
       
–
 
      711        8        –  
 
 
          
Total
     
1,531
       
16
       
(3
)
      3,130        51        (58 ) 
Analysed as expiring:
                                    
In less than one year
     
1,156
 
     
2
 
     
(1
)
      2,505        31        (54 ) 
Later than one year and not later than five years
     
75
 
     
–
 
     
(1
)
      325        3        (1 ) 
In greater than five years
     
300
 
     
14
 
     
(1
)
      300        17        (3 ) 
 
 
 
 
      
Total
     
1,531
 
     
16
 
     
(3
)
      3,130        51        (58 ) 
Summary of Instruments to Hedge Exposures to Changes in Interest Rates and Foreign Currency Risk Associated with Borrowings
The Group held the following instruments to hedge exposures to changes in interest rates and foreign currency risk associated with borrowings:
 
                  
2025
  
  All figures in £ millions
   
Carrying
amount of
hedging
instruments
     
Change in fair
value of hedging
instrument used to
determine hedge
ineffectiveness
    
Nominal
amounts of
hedging
instruments
  
Derivative financial instruments for interest rate risk
   
 
–
 
   
 
1
 
  
 
–
  
Derivative financial instruments for currency risk
   
 
–
 
   
 
(21
) 
  
 
–
 
                 
2024
  
  All figures in £ millions
  
Carrying
amount of
hedging
instruments
 
 
Change in fair value
of hedging
instrument used to
determine hedge
ineffectiveness
 
 
Nominal
amounts of
hedging
instruments
  
Derivative financial instruments for interest rate risk
      (1 )      5       166   
Derivative financial instruments for currency risk
      21       (8 )      166  
Summary of Amounts at the Reporting Rate Relating to Items Designated as Hedge Items
The amounts at the reporting date relating to items designated as hedge items were as follows:
 
                                 
2025
  
  All figures in £ millions
   
Carrying
amount
of
hedged
items
     
Accumulated
amount of fair value
hedge adjustments
on the hedged item
included in the
carrying amount
     
Change in fair
value of hedged
item used to
determine
hedge
ineffectiveness
     
Hedge
ineffectiveness
     
Line item in
profit or loss
that includes
hedge
ineffectiveness
  
Interest rate risk
               
 
 
 
 
 
 
Financial liabilities – borrowings
     
–
       
–
       
–
       
–
     
 
Finance

costs
  
Currency risk
               
 
 
 
 
 
 
Financial liabilities – borrowings
     
–
       
–
       
–
       
–
     
 
Finance

costs

 
                               
2024
  
  All figures in £ millions
   
 Carrying
amount
of
hedged
items
    
Accumulated
 amount of fair value
hedge adjustments
on the hedged item
included in the
carrying amount
     
Change in fair
 value of hedged
item used to
determine
hedge
ineffectiveness
    
Hedge
  ineffectiveness
     
Line item in
profit or loss
that includes
hedge
 ineffectiveness
  
Interest rate risk
             
Financial liabilities – borrowings
      (166 )      1        (5 )      –       
Finance
costs
   
Currency risk
             
Financial liabilities – borrowings
      (166 )      n/a        8       –       
Finance
costs
  
Summary of Amounts Related to Items Designated as Hedging Instruments
The amounts related to items designated as hedging instruments were as follows:
 
                                
2025
  
  All figures in £ millions
  
Carrying
amount of
hedging
instruments
 
 
Change in value of
hedging instrument
used to determine
hedge
ineffectiveness
 
  
Nominal
amounts
of hedging
instruments
 
  
Hedging
gains/
(losses)
recognised
in OCI
 
  
Hedge
ineffectiveness
recognised in
profit or loss
  
Derivative financial instruments
     
1
 
 
48
  
 
993
 
  
 
48
  
 
–
  
Financial liabilities – borrowings
     
–
      
–
       
–
       
–
       
–
  
 
                              
2024
  
  All figures in £ millions
  
Carrying
amount of
hedging
 instruments
 
 
Change in value of
 hedging instrument
used to determine
hedge
ineffectiveness
 
 
Nominal
amounts
of hedging
 instruments
 
  
Hedging
gains/
(losses)
 recognised
in OCI
 
 
Hedge
 ineffectiveness
recognised in
profit or loss
  
Derivative financial instruments
      (47 )      (29 )      1,225        (29 )      –   
Financial liabilities – borrowings
      –       –       –        –       –  
Disclosure of Derivative Financial Assets and Liabilities Subject to Offsetting Arrangements Derivative financial assets and liabilities subject to offsetting arrangements are as follows:
 
                
2025
                
2024
  
  All figures in £ millions
  
Gross
  derivative
assets
    
Gross
 derivative
liabilities
    
 Net derivative
assets/
liabilities
    
Gross
 derivative
assets
    
Gross
 derivative
liabilities
    
 Net assets/
liabilities
  
Counterparties in an asset position
    
16
      
(3
)
 
    
13
       24       (7 )      17  
Counterparties in a liability position
    
–
      
–
      
–
       27       (51 )      (24 ) 
             
Total as presented in the balance sheet
    
16
      
(3
)
    
13
       51       (58 )      (7 )