Regulatory announcement (RNS) · Miscellaneous

31 December 25 Pillar 3 Disclosures

Skipton Building Society · published 20 March 2026 10:35 UTC · Skipton Building Society credit rating and record

Rating moves in this announcement

Agency	From	To	Context
Fitch	Aaa	Baa3	Investment grade The range of credit ratings

Pillar 3 Disclosures

31 December 2025

SKIPTON

BUILDING SOCIETY

Since 1853

CONTENTS

INTRODUCTION................................................................................................................................................ 5

1.1

Scope of application ................................................................................................................................................................... 5

1.2

Basis of presentation .................................................................................................................................................................. 5

1.3

Frequency of disclosure.............................................................................................................................................................. 5

1.4

Non-material, proprietary or confidential information ............................................................................................................... 5

1.5

Pillar 3 Policy ............................................................................................................................................................................... 6

1.6

Verification and sign off ............................................................................................................................................................. 6

KEY METRICS AND OVERVIEW OF RISK-WEIGHTED EXPOSURE AMOUNTS ................................................... 7

2.1

UK KM1 - Key metrics template .................................................................................................................................................. 7

2.2

UK OV1 – Overview of risk weighted assets .............................................................................................................................. 8

2.3

UK OVC – ICAAP information ..................................................................................................................................................... 9

2.4

UK INS1 – Insurance participation ............................................................................................................................................. 9

2.5

UK INS2 – Financial conglomerates information on own funds and capital adequacy ratio ................................................... 9

RISK MANAGEMENT POLICIES AND OBJECTIVES ........................................................................................ 10

3.1

UK OVA – Risk management approach ................................................................................................................................... 10

3.2

UK OVB – Governance arrangements ...................................................................................................................................... 14

SCOPE OF APPLICATION ............................................................................................................................... 17

4.1

UK LI1 – Differences between accounting and regulatory scopes of consolidation and mapping of financial statement

categories with regulatory risk categories ............................................................................................................................... 17

4.2

UK LI2 – Main sources of differences between regulatory exposure amounts and carrying values in financial statements

................................................................................................................................................................................................... 21

4.3

UK LI3 – Outline of the differences in the scopes of consolidation (entity by entity) ............................................................. 22

4.4

UK LIA – Explanations of differences between accounting and regulatory exposure amounts ............................................ 23

4.5

UK LIB – Other qualitative information on the scope of application ....................................................................................... 23

4.6

UK PV1 – Prudent valuation adjustments (PVA) ..................................................................................................................... 24

OWN FUNDS ................................................................................................................................................... 25

5.1

UK CC1 – Composition of regulatory own funds ..................................................................................................................... 25

5.2

UK CC2 – Reconciliation of regulatory own funds to balance sheet in the audited financial statements ............................. 27

5.3

UK CCA – Main features of regulatory own funds instruments and eligible liabilities instruments....................................... 28

COUNTERCYCLICAL CAPITAL BUFFER .......................................................................................................... 30

6.1

UK CCyB1 – Geographical distribution of credit exposures relevant for the calculation of the countercyclical buffer ........ 30

6.2

UK CCyB2 – Amount of institution-specific countercyclical capital buffer ............................................................................. 33

LEVERAGE RATIO ........................................................................................................................................... 34

7.1

UK LR1 – LRSum: summary reconciliation of accounting assets and leverage ratio exposures ........................................... 34

7.2

UK LR2 – LRCom: Leverage ratio common disclosure ............................................................................................................ 35

7.3

UK LR3 – LRSpl: Split-up of on balance sheet exposures (excluding derivatives, SFTs and exempted exposures) ............. 36

7.4

UK LRA – Disclosure of leverage ratio qualitative information ............................................................................................... 36

LIQUIDITY REQUIREMENTS ............................................................................................................................ 37

8.1

UK LIQA – Liquidity risk management...................................................................................................................................... 37

8.2

UK LIQ1 – Quantitative information of LCR.............................................................................................................................. 40

8.3

UK LIQB – Qualitative information on LCR, which complements template UK LIQ1 .............................................................. 41

8.4

UK LIQ2 – Net Stable Funding Ratio ......................................................................................................................................... 42

CREDIT RISK QUALITY ................................................................................................................................... 44

9.1

UK CRA – General qualitative information about credit risk .................................................................................................... 44

9.2

UK CRB – Additional disclosure related to the credit quality of assets .................................................................................. 45

9.3

UK CR1 – Performing and non-performing exposures and related provisions ....................................................................... 46

9.4

UK CR1-A – Maturity of exposures ........................................................................................................................................... 48

9.5

UK CR2 – Changes in the stock of non-performing loans and advances ............................................................................... 48

9.6

UK CR2-A – Changes in the stock of non-performing loans and advances and related net accumulated recoveries .......... 49

9.7

UK CQ1 – Credit quality of forborne exposure ......................................................................................................................... 49

9.8

UK CQ2 – Quality of forbearance ............................................................................................................................................. 50

9.9

UK CQ3 – Credit quality of performing and non-performing exposures by past due days ..................................................... 51

9.10

UK CQ4 – Quality of non-performing exposures by geography ............................................................................................... 53

9.11

UK CQ5 – Credit quality of loans and advances to non-financial corporations by industry ................................................... 53

9.12

UK CQ6 – Collateral valuation - loans and advances ............................................................................................................... 54

9.13

UK CQ7 – Collateral obtained by taking possession and execution processes ..................................................................... 55

9.14

UK CQ8 – Collateral obtained by taking possession and execution processes – vintage breakdown .................................. 55

CREDIT RISK MITIGATION TECHNIQUES ....................................................................................................... 56

10.1

UK CRC – Qualitative disclosure requirements related to CRM techniques ........................................................................... 56

10.2

UK CR3 – CRM techniques overview: Disclosure of the use of credit risk mitigation techniques ........................................ 58

STANDARDISED APPROACH.......................................................................................................................... 59

11.1

UK CRD – Qualitative disclosure requirements related to standardised model ..................................................................... 59

11.2

UK CR4 – Standardised approach – Credit risk exposure and CRM effects........................................................................... 60

11.3

UK CR5 – Standardised approach ............................................................................................................................................ 62

IRB APPROACH TO CREDIT RISK ................................................................................................................... 64

12.1

UK CRE – Qualitative disclosure requirements related to IRB approach ................................................................................ 64

12.2

UK CR6 – IRB approach – Credit risk exposures by exposure class and PD range ................................................................ 68

12.3

UK CR6-A – Scope of the use of IRB and SA approaches ....................................................................................................... 70

12.4

UK CR7 IRB approach – Effect on the RWEAs of credit derivatives used as CRM techniques .............................................. 71

12.5

UK CR7-A IRB approach – Disclosure of the extent of the use of CRM techniques ............................................................... 71

12.6

UK CR8 – RWEA flow statements of credit risk exposures under the IRB approach .............................................................. 72

12.7

UK CR9 – IRB approach – Back-testing of PD per exposure class (fixed PD scale) ............................................................... 73

12.8

UK CR9.1 – IRB approach – Back-testing of PD per exposure class (only for PD estimates according to point (f) of Article

180(1) CRR) ............................................................................................................................................................................... 74

SPECIALISED LENDING AND EQUITY EXPOSURES ........................................................................................ 75

13.1

Specialised lending ................................................................................................................................................................... 75

13.2

UK CR10.5 – Equity exposures under the simple risk-weighted approach ............................................................................. 75

COUNTERPARTY CREDIT RISK ....................................................................................................................... 76

14.1

UK CCRA – Qualitative disclosure related to CCR ................................................................................................................... 76

14.2

UK CCR1 – Analysis of CCR exposure by approach ................................................................................................................ 78

14.3

UK CCR2 – Transactions subject to own funds requirements for CVA risk ............................................................................ 79

14.4

UK CCR3 – Standardised approach – CCR exposures by regulatory exposure class and risk weights ................................. 80

14.5

UK CCR4 – IRB approach – CCR exposures by exposure class and PD scale ........................................................................ 82

14.6

UK CCR5 – Composition of collateral for CCR exposures ....................................................................................................... 82

14.7

UK CCR6 – Credit derivatives exposures ................................................................................................................................. 82

14.8

UK CCR7 – RWEA flow statements of CCR exposures under the IMM ................................................................................... 82

14.9

UK CCR8 – Exposures to CCPs ................................................................................................................................................ 82

SECURITISATION POSITIONS ........................................................................................................................ 84

15.1

UK-SECA – Qualitative disclosure requirements related to securitisation exposures ............................................................ 84

15.2

UK SEC1 – Securitisation exposures in the non-trading book ................................................................................................. 86

15.3

UK SEC2 – Securitisation exposures in the trading book ........................................................................................................ 87

15.4

UK SEC3 – Securitisation exposures in the non-trading book and associated regulatory capital requirements – The Group

acting as originator or as sponsor ............................................................................................................................................ 87

15.5

UK SEC4 – Securitisation exposures in the non-trading book and associated regulatory capital requirements – The Group

acting as investor ...................................................................................................................................................................... 88

15.6

UK SEC5 – Exposures securitised by the institution - Exposures in default and specific credit risk adjustments ................ 89

STANDARDISED APPROACH AND INTERNAL MODEL FOR MARKET RISK .................................................... 90

16.1

UK MRA – Qualitative disclosure requirements related to market risk ................................................................................... 90

16.2

UK MR1 – Market risk under the standardised approach ........................................................................................................ 90

16.3

Information on the internal Market Risk Models ...................................................................................................................... 91

EXPOSURES TO INTEREST RATE RISK ON POSITIONS NOT HELD IN THE TRADING BOOK (IRRBB) ............. 92

17.1

UK IRRBBA – IRRBB risk management objectives and policies .............................................................................................. 92

17.2

UK IRRBB1 – Quantitative information on IRRBB ..................................................................................................................... 95

OPERATIONAL RISK ....................................................................................................................................... 96

18.1

UK ORA – Qualitative information on operational risk ............................................................................................................. 96

18.2

UK OR1 – Operational risk own funds requirements and risk-weighted exposure amounts .................................................. 97

REMUNERATION POLICY ............................................................................................................................... 98

19.1

UK REMA – Remuneration policy ............................................................................................................................................. 98

19.2

UK REM1 – Remuneration awarded for the financial year .................................................................................................... 105

19.3

UK REM2 – Special payments to staff whose professional activities have a material impact on institutions’ risk profile

(identified staff) ...................................................................................................................................................................... 107

19.4

UK REM3 – Deferred remuneration ........................................................................................................................................ 109

19.5

UK REM4 – Remuneration of 1 million EUR or more per year ............................................................................................... 111

19.6

UK REM5 – Information on remuneration of staff whose professional activities have a material impact on institutions’ risk

profile (identified staff) ........................................................................................................................................................... 111

ENCUMBERED AND UNENCUMBERED ASSETS ........................................................................................... 112

20.1

UK AE1 – Encumbered and unencumbered assets ............................................................................................................... 112

20.2

UK AE2 – Collateral received and own debt securities issued .............................................................................................. 114

20.3

UK AE3 – Sources of encumbrance ....................................................................................................................................... 116

20.4

UK AE4 – Accompanying narrative information .................................................................................................................... 117

GLOSSARY .............................................................................................................................................................. 118

Skipton Building Society | Pillar 3 Disclosures 31 December 2025

Introduction

This document presents the Pillar 3 disclosures of Skipton Building Society (the Society) and its subsidiaries at the

prudential group level as at 31 December 2025.

These Pillar 3 disclosures are published on the Society’s website www.skipton.co.uk/about-us/pillar-3-disclosure.

1.1

Scope of application

The Society is required to calculate and maintain regulatory capital on both a prudential consolidation group

(Group) and a Society only basis. The Group comprises the Society and a small number of subsidiaries, excluding

those deemed as immaterial or not core to financial services.

The basis of consolidation for regulatory and accounting purposes are different. For an overview of the differences

between accounting and regulatory scopes of consolidation, see section 4.

1.2

Basis of presentation

The disclosures have been prepared in accordance with the Capital Requirements Directive (CRD V), the United

Kingdom’s Capital Requirements Regulation (UK CRR) and the disclosure requirements set out in the Prudential

Regulation Authority’s (PRA) Rulebook. No changes have been made to the fixed templates, unless specifically

stated above or directly beneath the relevant template.

These Pillar 3 disclosures are based upon the Group’s Financial Statements for the year ended 31 December 2025,

unless otherwise stated. As such, they should be read alongside the Group’s Annual Report and Accounts 2025,

which is available on the Society’s website on www.skipton.co.uk/about-us/financial-results. Reference to the

Group’s Annual Report and Accounts 2025 has been set out clearly in the relevant sections of this document to

avoid duplication of information.

The Group’s Annual Report and Accounts 2025 are prepared in line with International Financial Reporting Standards

(IFRS), whilst the balances within the Pillar 3 disclosures are disclosed at a prudential group level (see section 1.1

above). The differences between the two documents are set out in sections 4 and 5.

All figures and narratives are as at 31 December 2025. Comparative analysis is provided as required in the PRA

Rulebook.

1.3

Frequency of disclosure

The Society is required to publish Pillar 3 disclosures quarterly in accordance with the requirements set out in

Article 433a of the PRA Rulebook.

1.4

Non-material, proprietary or confidential information

The Society is required to publish Pillar 3 disclosures in accordance with Article 432 of the PRA Rulebook, which

allows an institution to omit disclosures if the information provided is not considered material or if it is regarded

as proprietary or confidential.

In accordance with Article 440 of the PRA Rulebook, the Countercyclical Capital Buffer template UK CCyB1 sets

out a geographical breakdown of the obligors for relevant exposure types. For materiality reasons, only those

countries where a countercyclical buffer rate has been set or which individually have an own funds requirement

weighting of equal to or more than one percent are listed. Exposures in countries where these criteria are not met

have been presented in aggregate as ‘other countries’.

In template UK OVA, point (a), the Group does not disclose key ratios, limits, and figures relating to its Board risk

appetite statements, as they are considered proprietary information.

There have been no other omissions based on non-materiality, proprietary or confidentiality.

Skipton Building Society | Pillar 3 Disclosures 31 December 2025

1.5

Pillar 3 Policy

The Board has adopted a formal policy for the production of the Pillar 3 disclosures. The Pillar 3 Policy (Policy)

sets out the principles which ensure that the Pillar 3 disclosures satisfy the regulatory reporting requirements in

respect of the basis, frequency, verification and appropriateness of disclosures, and the governance and control

framework applied in the preparation of the disclosures. The Policy also ensures that the Group’s risk profile is

comprehensively disclosed and that our disclosures are comparable to other market participants.

1.6

Verification and sign off

These disclosures have been verified and approved in line with the Policy and contain the following key elements

to comply with the disclosure requirements:

•

Compliance with regulatory requirements, as set out in the PRA Rulebook, has been documented and has

been subject to risk-based review activities by the Society’s second line risk management function to

provide assurance over the reviewed areas of disclosures.

•

The Pillar 3 governance and control framework has been applied to the production of the disclosures; and

•

The standard of internal controls applied to the Pillar 3 disclosures is consistent with that applied to other

statutory reporting requirements.

These Pillar 3 disclosures have been reviewed and approved by the Board Audit Committee (BAC) on behalf of the

Board in accordance with the Policy.

“We attest that, to the best of our knowledge, the Pillar 3 disclosures have been prepared in accordance with the

Policy and the principles described within it”.

Paul Chambers

Steve O’Regan

Group Chief Financial Officer

Group Chief Risk Officer

Skipton Building Society | Pillar 3 Disclosures 31 December 2025

Key metrics and overview of risk-weighted exposure

amounts

2.1

UK KM1 - Key metrics template

Further details on the movement in key metrics are available in the Strategic Report on pages 35 and 44 of the

Group’s Annual Report and Accounts 2025.

31 Dec 25 30 Sep 25

30 Jun 25 31 Mar 25 31 Dec 24

£m

Available own funds (amounts)

Common Equity Tier 1 (CET1) capital

2,575.0

2,462.2

2,465.7

2,360.6

2,375.1

Tier 1 capital

2,575.0

2,462.2

2,465.7

2,360.6

2,375.1

Total capital

2,590.0

2,502.2

2,505.7

2,400.6

2,415.1

Risk-weighted exposure amounts (RWEAs)

Total risk-weighted exposure amount

9,141.4

8,802.3

8,559.3

8,504.3

8,277.4

Capital ratios (as a % of RWEAs)

Common Equity Tier 1 ratio (%)

28.2

28.0

28.8

27.8

28.7

Tier 1 ratio (%)

28.2

28.0

28.8

27.8

28.7

Total capital ratio (%)

28.3

28.4

29.3

28.2

29.2

Additional own funds requirements based on SREP

(as a % of RWEAs)

UK 7a

Additional CET1 SREP requirements (%)

1.5

1.1

1.2

UK 7b

Additional AT1 SREP requirements (%)

0.5

0.4

UK 7c

Additional T2 SREP requirements (%)

0.6

0.5

UK 7d

Total SREP own funds requirements (%)

10.6

10.0

10.1

Combined buffer requirement (as a % of RWEAs) 1

Capital conservation buffer (%)

2.5

Institution specific countercyclical capital buffer (%)

1.8

Combined buffer requirement (%)

4.3

UK 11a Overall capital requirements (%)

14.9

14.3

14.4

CET1 available after meeting the total SREP own

funds requirements (%)

17.8

19.3

18.2

19.1

Leverage ratio 2

Total exposure measure excluding claims to central

banks

38,477.2 38,439.9

37,570.0 36,793.2 35,936.9

Leverage ratio excluding claims on central banks

(%)

6.7

6.4

6.6

6.4

6.6

Liquidity Coverage Ratio 3

Total high-quality liquid assets (HQLA) (Weighted

value -average)

5,702.4

5,906.6

6,012.7

6,102.2

6,100.6

UK 16a Cash outflows - Total weighted value

3,272.0

3,311.3

3,407.3

3,511.5

3,662.4

UK 16b Cash inflows - Total weighted value

212.4

211.1

252.3

247.0

244.6

Total net cash outflows (adjusted value)

3,059.6

3,100.2

3,155.0

3,264.5

3,417.8

Liquidity coverage ratio (%)

186.7

190.8

191.0

187.4

179.0

Net Stable Funding Ratio 4

Total available stable funding

35,805.4 35,153.8

34,584.6 34,173.5 33,570.7

Total required stable funding

25,867.5 25,179.6

24,899.7 24,633.4 24,360.6

Net Stable Funding Ratio (%)

138.4

139.6

138.9

138.7

137.8

Notes

1. The buffer requirement in rows UK 8a, UK 9a to UK10a have been removed from the template as they are not applicable for

the Group.

2. The additional leverage ratio disclosure requirements only apply to financial institutions with deposits equal to or greater

than £50bn or with non-UK assets equal to or greater than £10bn. The rows UK-14a to UK-14e have been removed from the

template as the Group is not currently captured by either threshold.

3. In line with regulatory guidance, values are calculated as the simple average of the 12 month-end observations preceding

each quarter. Percentages may not sum precisely due to rounding of quarterly averages.

4. Per guidance, the values have been calculated based on a four quarter rolling average of quarter-end positions.

5. The Group applied IFRS 9 transitional arrangements for capital calculations under Article 473a of the UK CRR from 1 January

2018 to 31 December 2024. These transitional arrangements ended on 1 January 2025 but are reflected in comparatives and

did not significantly impact the Group’s capital position, as previously disclosed.

Skipton Building Society | Pillar 3 Disclosures 31 December 2025

2.2

UK OV1 – Overview of risk weighted assets

The template below provides an overview of RWAs and minimum capital requirements under the Pillar 1 capital

requirement as at 31 December 2025.

Risk weighted exposure

amounts (RWEAs)

Total Own Fund

Requirements

31 Dec 25

30 Sep 25

31 Dec 25

£m

Credit risk (excluding CCR)

8,078.8

7,784.6

646.3

Of which standardised approach

1,407.0

1,422.4

112.6

Of which the foundation IRB (FIRB) approach 1

Of which slotting approach 1

UK 4a

Of which equities under the simple risk weighted

approach

306.8

306.9

24.5

Of which the advanced IRB (AIRB) approach 2

6,365.0

6,055.3

509.2

Counterparty credit risk (CCR)

122.9

113.4

9.9

Of which the standardised approach

28.7

27.1

2.3

Of which internal model method (IMM) 1

UK 8a

Of which exposures to a CCP

8.5

8.8

0.7

UK 8b

Of which credit valuation adjustment - CVA

85.7

77.5

6.9

Of which other CCR

Settlement risk

Securitisation exposures in the non-trading book (after

the cap)

61.8

63.8

4.9

Of which SEC-IRBA approach 1

Of which SEC-ERBA (including IAA) 3

61.8

63.8

4.9

Of which SEC-SA approach 1

UK 19a

Of which 1250%/ deduction 1

Position, foreign exchange and commodities risks

(Market risk) 4

Of which the standardised approach

Of which IMA 1

UK 22a

Large exposure

Operational risk

877.9

840.5

70.2

UK 23a

Of which basic indicator approach 1

UK 23b Of which standardised approach

877.9

840.5

70.2

UK 23c

Of which advanced measurement approach 1

Amounts below the thresholds for deduction (subject to

250% risk weight) (For information) 5

11.7

11.0

0.9

Total

9,141.4

8,802.3

731.3

Notes

1. This approach is not applicable to the Group.

2. The advanced IRB approach includes £159.9m of non-credit obligation assets (30 September 2025: £56.5m), risk-weighted

at 100%. The movement is driven mainly by higher mortgage lending and additional factors, including increased RWAs due

to fair value hedge adjustments on fixed rate IRB mortgages, following a reduction in long-term interest rate expectations,

and the re-categorisation of the EIR accounting adjustment as a non-credit obligation asset.

3. The Internal Assessment Approach (IAA) is not applicable to the Group.

4. As permitted per Article 351 of the UK CRR, the Group has elected to set exposure to market risk at zero, as the overall net

foreign exchange position remains below the prescribed threshold.

5. The amount, which includes RWAs related to deferred tax assets and equity exposures subject to a 250% risk weight, is

presented for information purposes only, as these exposures are already included in rows 2 and 5.

Skipton Building Society | Pillar 3 Disclosures 31 December 2025

2.3

UK OVC – ICAAP information

a) Approach to assessing the adequacy of internal capital (Article 438(a) CRR)

The Group holds capital to absorb losses. The Internal Capital Adequacy Assessment Process (ICAAP) is the

means by which the Group ensures it has:

•

Sufficient levels of capital resources to pursue the corporate objectives as set out in the Group’s five-year

Corporate Plan in light of the risks it faces; and

•

Sufficient capital resources to trade through a variety of scenarios, including a severe recession, if

necessary, by applying appropriate management actions.

In formulating the Group’s five-year Corporate Plan, the Board takes its overall objectives into consideration and

evaluates them based on its risk appetites.

The individual component parts included in the ICAAP are challenged in the relevant executive committees before

the results are articulated in a single document which is reviewed and approved by the Board. The ICAAP is

considered by the PRA as part of its Supervisory Review and Evaluation Process, when setting the Society’s firm-

specific capital requirements.

Under the CRR framework, Pillar 1 sets out the minimum regulatory capital requirements for credit, market and

operational risks. The Pillar 2A assessment considers firm-specific risks not sufficiently captured by Pillar 1. The

Pillar 2B element provides an assessment of the additional capital required to withstand the impact of a stress

scenario.

The capital plan provides the baseline for stress testing analysis which considers the impact of alternative

scenarios on the Group’s capital resources and capital requirements and the actions we can take to manage our

capital position during periods of stress.

b) The result of the Group's Internal Capital Adequacy Assessment Process (Article 438(c) CRR)

In accordance with the PRA Rulebook, this information shall only be disclosed by institutions when required by the

relevant competent authority. This has not been requested from the Group.

2.4

UK INS1 – Insurance participation

The Group has no own funds held in insurance or reinsurance firms, and as such, this template has not been

presented.

2.5

UK INS2 – Financial conglomerates information on own funds and capital adequacy ratio

Financial conglomerates are large groups with significant activities across more than one financial sector, typically

including banking, investment and insurance. The Group does not qualify as a financial conglomerate, and as such,

this template has not been presented.

Skipton Building Society | Pillar 3 Disclosures 31 December 2025

Risk management policies and objectives

3.1

UK OVA – Risk management approach

a) Risk statement approved by the management body (Point (f) of Article 435(1) CRR)

As a mutual organisation, the Board is charged with the protection of members’ deposits and bases its risk

appetites on avoiding strategies or business practices which would threaten members’ interests.

The Board’s risk appetites express both qualitative and quantitative boundaries that provide clear guidance on the

limits of risk exposure that are acceptable and in line with the business strategy. The defined Board risk appetite

statements are supported by a comprehensive range of metrics used to assess business performance and risk

exposure against its risk appetites. A key objective of the Group is to maintain strong capital and liquidity levels

above risk appetite. These measures are monitored by Senior Executives, and the Board on an ongoing basis to

help ensure that minimum regulatory requirements are met, and that the Group has sufficient levels of capital and

liquidity for current and projected future activities, using a range of potential stress scenarios.

The Board Risk Committee (BRC) is responsible for considering and recommending the Board risk appetites, and

capital adequacy and liquidity management policies to the Board. The Board reviews and approves risk appetites

on an annual basis or more frequently in the event of changes to the operating environment, with the aim of

ensuring that the approach is consistent with the Group’s business, and its strategic and regulatory objectives.

The principal risks are those that are inherent to the Group’s business model and strategy, as well as to the

economic environment within which the Group operates. During the year, each principal risk along with the other

key risks within the taxonomy are assessed for severity and evaluated based on its likelihood and potential impact.

Risks are managed through the Group’s internal control framework. These risks are actively monitored and

reported monthly through established governance structures, providing a consolidated view of the overall risk and

control environment. Further details on the principal risks and other key risk categories that the Group is managing

to meet its strategic objectives are set out in the Strategic Report of the Group’s Annual Report and Accounts 2025

on pages 47 to 54.

The Group Risk Management Framework (GRMF) also includes the Group Risk Taxonomy, which defines the

categories of key risks across the businesses and provides consistent definitions and terminology. This ensures

that risks are effectively managed throughout the Group and that all risks are appropriately identified, assessed,

mitigated, monitored, and reported consistently.

b) Information on the risk governance structure for each type of risk (Point (b) of Article 435(1) CRR)

Board

The Board’s terms of reference clearly set out its responsibility for the overall stewardship of the Group within the

context of the Group’s ‘principles of governance’ which are set out in detail in the Strategic Report of the Group’s

Annual Report and Accounts 2025 on pages 47 to 54.

The Board has delegated certain matters to its committees in order that these can be considered in more detail.

Further details on the specific roles and responsibilities of the Board and the executive committees are set out in

in the Corporate Governance Report of the Group’s Annual Report and Accounts 2025 on pages 73 to 76 and in the

individual Committee Reports on pages 84, 92 and 96.

In accordance with the CRD regulations, the BRC’s membership comprises only Non-Executive Directors. The

responsibilities of the BRC are delegated by the Board and are set out in its written terms of reference, which are

available on Society’s website at www.skipton.co.uk/about-us/governance/board-committees.

Skipton Building Society | Pillar 3 Disclosures 31 December 2025

Group Risk Management Framework (GRMF)

The Group has a formal structure for identifying and managing risks throughout the business. This framework is

designed to enable delivery of the Corporate Plan in line with the Board’s overall risk appetite and is based upon

the best practice ‘three lines of defence’ model which is set out in detail in the Board Risk Committee Report of the

Group’s Annual Report and Accounts on page 97.

Risk Culture

The Group’s risk management is built on strong governance and a culture that guides decisions across the

organisation. The Board promotes a culture that:

•

Understands its risks and applies proportionate controls to stay within risk appetite;

•

Provides clear, timely risk insight to support informed decisions at all levels;

•

Builds a skilled, engaged workforce that delivers good customer outcomes and recognises risk‑aware

performance;

•

Ensures that incentive plans are designed to promote good customer outcomes; and

•

Has an embedded and effective Whistleblowing Policy with supporting procedures.

The risk management process adopted by the Group is based on an end-to-end process for managing risks. It is

forward-looking and comprises elements for identification, assessment, mitigation, management and reporting

risk. Everyone is responsible for managing and mitigating risks and supporting a strong risk culture.

c) Declaration approved by the management body on the adequacy of the risk management arrangements (Point

(e) of Article 435(1) CRR)

The Board, as the management body, monitors the Group’s risk management and internal control systems. The

GRMF is being embedded to strengthen and mature risk management across the Group. The Corporate

Governance Report and the Board Risk Committee Report of the Group’s Annual Report and Accounts 2025, on

pages 70 to 82 and pages 96 to 98, provide further detail on the Board’s review of the framework of internal control

and compliance with the UK Corporate Governance Code.

d) Scope and nature of risk disclosure and/or measurement systems (Point (c) of Article 435(1) CRR)

Through an established risk management framework and governance structure, the Group has a formal

mechanism for identifying and managing risks throughout the business. Day-to-day operation of the business

naturally exposes the Group to a range of potential risks. Monthly risk management reporting is in place, which

includes monitoring against risk appetite, the current risk profile, emerging risks, and outputs from Group Internal

Audit. This allows senior management to understand the overall position and take appropriate actions. Risks and

risk events are recorded and managed on the Group risk management system.

e) Information on the main features of risk disclosure and measurement systems (Point (c) of Article 435(1) CRR)

Executive directors and senior management are responsible for maintaining an effective Group risk management

framework supported by strong internal controls. Further details on the specific internal control functions are set

out in the Corporate Governance Report of the Group’s Annual Report and Accounts on pages 78 and 79.

f) Strategies and processes to manage risks for each separate category of risk (Point (a) of Article 435(1) CRR)

The GRMF sets out the strategies, processes and governance arrangements that ensure all principal risks facing

the Group are identified and managed.

The Group’s risk management strategy is to ensure robust risk management activities are in place which enable

the Group to understand and mitigate its risks and in turn, support business strategy and the achievement of

corporate objectives through informed decision making.

Skipton Building Society | Pillar 3 Disclosures 31 December 2025

To support delivery of the Group’s strategy, there is an established governance framework in place. The Board

promotes the risk management culture by overseeing the development of risk strategy, risk appetite, and

supporting frameworks. The risk culture aligns with risk appetite, awareness, proactive reporting, and willingness

to challenge and learn.

•

Board Risk Appetite Statements

The Group’s risk appetite statements articulate the amount and type of risk that the Board is willing to

take, or avoid, in order to achieve its strategic objectives. The Board reviews and approves risk appetites

and its capacity on an annual basis or more frequently in the event of changes to the risk environment.

•

Risk Management

To enable an effective and forward-looking risk management process, risks are identified, assessed,

mitigated, managed and reported in a timely and accurate manner, in line with approved policies,

processes and procedures. This framework is designed to enable the delivery of the Corporate Plan in

line with the Board’s overall risk appetites and is based upon the best practice ‘three lines of defence’

model, set out in the Board Risk Committee Report of the Group’s Annual Report and Accounts 2025 on

page 97.

Communication, Monitoring and Review

Key and emerging risks are reported to the Board and its supporting committees, which are set out in point b)

above on a regular basis. The external environment continues to experience rapid change and the Group continues

to monitor material risks to business plans.

Stress Testing

Stress testing is an integral part of the risk management process used to assess the vulnerability of financial

institutions and identify risks under adverse macroeconomic and idiosyncratic scenarios. The Group undertakes a

range of stress testing activities as follows:

•

Internal Liquidity Adequacy Assessment Process (ILAAP)

Management completes, on at least an annual basis, an ILAAP outlining the liquidity and funding risks to

which the Group is exposed and therefore the level of liquidity that it requires both in a business-as-usual

scenario and under stressed conditions throughout the corporate planning period.

Group Strategy

Governance

Skipton Group Risk Management Framework

Skipton Group Risk Taxonomy

Board Risk Appetite Statements

Risk Policies

Risk Management

Identify

Assess

People and Culture

Procedures and Guidelines

Mitigate

Manage

Group Internal Audit

Second Line Monitoring and Review

Reporting

Communication

Skipton Building Society | Pillar 3 Disclosures 31 December 2025

•

Internal Capital Adequacy Assessment Process (ICAAP)

Management complete, on at least an annual basis, an ICAAP to assess current and projected capital

requirements to support the current risks in the business and future risks arising from the Corporate Plan.

The ICAAP addresses all the Group’s material risks and includes stress scenarios which are intended, as

a minimum, to meet regulatory requirements. Further information on the ICAAP process is set out in

template UK OVC.

•

Recovery Plan

In line with regulatory requirements, management maintain a Recovery Plan detailing the steps it would

take to manage a severe stress scenario.

•

Climate Change Risk Stress and Scenario Testing

Stress testing is performed focusing on the financial risks associated with climate change and considers

how different climate-related scenarios can impact the Group’s business model.

•

Interest Rate Risk in the Banking Book (IRRBB)

A series of regulatory and internally defined measures and stress tests are used to measure, monitor, and

manage the impact of IRRBB.

•

Reverse Stress Testing

Reverse stress tests identify scenarios which could cause the business to fail, i.e. reach the point of non-

viability, and therefore inform the setting of business strategy, and the Board’s risk appetites and trigger

points. The reverse stress testing scenarios also inform which actions need to be undertaken now to

minimise the impact of the scenarios which severely and adversely impact the Group.

A dedicated first line team is in place which manages and reports on Group stress testing, with oversight provided

by the second line Group Risk function.

g) Information on the strategies and processes to manage, hedge and mitigate risks (Point (a) and (d) of Article

435(1) CRR)

The table below provides an overview of the risk framework in place to mitigate risks:

Mitigating Risks

Operational Mitigations

Financial Mitigations

Structural Mitigations

Risk

Management

and Controls

Governance

Liquidity

Capital

Recovery

Resolution

The Group has a formal risk

management

structure

for

identifying and managing risks

throughout the business.

The day-to-day responsibility for

risk

management

oversight

detailed in point b) above.

A key objective of the Group is to

maintain strong liquidity and capital

levels.

These

measures

are

monitored on an ongoing basis to

ensure that the quality and quantity

liquidity

and

capital

maintained within the Board risk

appetite. As a result, minimum

regulatory requirements are met,

and the Group has sufficient levels

of liquidity and capital for current

and projected future activities, as

well as potential stress scenarios.

Recovery and Resolution Planning

forms an integral part of the

Group’s

framework

for

risk

management and response which

includes early warning indicators,

alert levels, and risk appetites.

The Board has set overarching risk appetites which set out the parameters within which the business operates

in a business-as-usual and stress scenario. Holistic processes are in place to mitigate the risks that the Group

are exposed to which includes:

•

Stress testing;

•

Horizon scanning and monitoring of external events;

•

Corporate planning;

•

Defined and embedded policies, frameworks, and procedures;

•

Defined risk appetite statements, with early warning indicators to monitor effectiveness and

performance; and

•

Regular reporting to senior management on the risk profile and performance against appetite.

Skipton Building Society | Pillar 3 Disclosures 31 December 2025

Hedging

The Group uses derivative financial instruments to hedge its exposure to balance sheet risks. In accordance with

its Treasury Policy and the Building Societies Act 1986, the Group is prohibited from trading in derivatives as

principal.

3.2

UK OVB – Governance arrangements

The number of directorships held by members of the Board as at 31 December 2025 is listed in the table below

and have been presented in line with Article 91(3) and (4) of the CRD V. Accordingly, multiple directorships held in

companies within the same group have been grouped together and counted as one directorship, whilst

directorships held in companies that do not pursue a commercial objective have not been included in the data.

a) The number of directorships held by members of the management body (Point (a) of Article 435(2) CRR)

Name and position held Directorships

Type of Directorship

Number of

directorships

pursuant to Article

91(3) and (4) of

Directive (EU)

2013/361 (CRD)

Total

Directorships

held

G V Burr

Non-Executive Director

Chair

Skipton Building Society 1

Skipton Group Holdings Limited 1

Non-Executive Director

Metro AG

Non-Executive Director

S A Haire

Group Chief Executive

Skipton Building Society 1

Skipton Group Holdings Limited 1

Executive Director

P S Chambers

Group Chief Financial

Officer

Skipton Building Society 1

Skipton Financial Services Limited 1

Skipton Group Holdings Limited 1

Skipton Investments Limited 1

Skipton Trustees Limited 1

Executive Director

I A Cummings

Skipton Building Society 1

Non-Executive Director

Skipton Group Holdings Limited 1

Non-Executive Director

Rathbones Group Plc 2a

Non-Executive Director

Rathbones Investment Management

Limited 2a

Investec Wealth and Investment

Limited 2a

Tradition UK Holdings Limited2b

Tradition (UK) Limited 2b

TFS Derivatives Limited 2b

Tradition London Clearing Limited 2b

Tradition Financial Services Limited 2b

Tradition Management Services

Limited 2b

Non-Executive Director

S J Davis

Non-Executive Director

Skipton Building Society 1

Skipton Group Holdings Limited 1

Non-Executive Director

Peter Vardy Global

Philip Kingsley Products Limited 2c

The Trichological Clinic Limited 2c

Scottish Ballet 3

Non-Executive Director

H I Gunawickrema

Non-Executive Director

Skipton Building Society 1

Skipton Group Holdings Limited 1

HIG Advisory Limited

Countess of Chester Hospital NHS

Foundation Trust3

Non-Executive Director

Executive Director

Non-Executive Director

D A Hall

Skipton Building Society 1

Non-Executive Director

Non-Executive Director Skipton Group Holdings Limited 1

Non-Executive Director

Aareal Bank AG

Non-Executive Director

Auxmoney Europe Holding Limited

Moneta Money Bank a.s.

Non-Executive Director

H L Jackson

Non-Executive Director

Skipton Building Society 1

Skipton Group Holdings Limited 1

Ikano Bank AB

Rothesay Life PLC 2d

Rothesay Limited 2d

Admiral Long Foundation 3

Non-Executive Director

Trustee

Non-Executive Director

Skipton Building Society | Pillar 3 Disclosures 31 December 2025

Name and position held Directorships

Type of Directorship

Number of

directorships

pursuant to Article

91(3) and (4) of

Directive (EU)

2013/361 (CRD)

Total

Directorships

held

The Veterinary Defence Society

Limited

Yorkshire Cancer Research 3

Trustee

G L Lindsay 4

Non-Executive Director

Deputy Chair & Senior

Independent Director

Skipton Building Society 1

Skipton Group Holdings Limited 1

Break Charity 3

The Brain Tumour Charity 3

Gastonrange Ltd

Family Assurance Friendly Society

Limited 2e 3

Family Assurance Staff Pension

Scheme Trustees Ltd 2e 3

Vanquis Banking Group PLC 2f

Vanquis Bank Limited 2f

Non-Executive Director

Trustee

Executive Director

Non-Executive Director

Trustee Director

Non-Executive Director

Notes

1. Companies within Skipton Group.

2. Companies within the same group but not part of Skipton Group (a, b, c, d, e used to identify different groups).

3. Entity does not pursue a commercial objective, therefore not included in the number of directorships pursuant to Article 91(5)

of the CRD V.

4. G L Lindsay was appointed as a non-executive director of Skipton Building Society and Skipton Group Holdings Limited with

effect from 19 May 2025.

b) Information regarding the recruitment policy for the selection of members of the management body (Point (b)

of Article 435(2) CRR)

The NomCo, which comprises all of the Society’s non-executive directors, leads the process for the Board and

executive appointments and succession planning.

Further details on the skills, knowledge and expertise of the Society’s directors are set out in the Board of Directors

report on pages 58 to 62 in the Group’s Annual Report and Accounts 2025.

Information on the appointment of Board members, changes to Board composition and succession planning can

be found in the Corporate Governance Report of the Group’s Annual Report and Accounts 2025 on pages 77 to 78.

Our Board Composition Policy is available on the Society’s website at www.skipton.co.uk/about-

us/governance/board-composition-policy.

c) Information on the diversity policy with regard of the members of the management body (Point (c) of Article

435(2) CRR)

Ensuring Diversity, Equity and Inclusion in the Society is about building a culture in which the whole organisation

works together and in which difference is valued.

Achieving a diverse balance of skills, independence and experience shall be the key factors of any new appointment

to the Board where selection of the most suitable candidate will be paramount.

No candidate for the Board membership shall be discriminated against on grounds of gender, marital status, race,

ethnic origin, colour, nationality, disability, sexual orientation, religion, age, social circumstances or any other factor.

At 31 December 2025, three members (27%) of the Board were female. Improving this ratio and harnessing the

benefits of diversity will be a key consideration in all new recruitment to the Board. The Society is a signatory to

the Women in Finance Charter, which underlines the Board’s commitment to gender equality.

More detailed reporting on diversity and pay by gender within the Society is available on our website at

www.skipton.co.uk/about-us/our-people.

d) Information whether or not the Group has set up a separate risk committee and the frequency of the meetings

(Point (d) of Article 435(2) CRR)

The Society has an established BRC which held six scheduled meetings during 2025.

Skipton Building Society | Pillar 3 Disclosures 31 December 2025

e) Description on the information flow on risk to the management body (Point (e) of Article 435(2) CRR)

The principal risks and uncertainties are those that are inherent to the Group’s business model and strategy, as

well as the economic environment within which the Group operates. These risks are overseen by the Group Chief

Risk Officer (GCRO), who provides independent challenge and assurance, supported by input from other senior

management. They are discussed at the BRC and Executive Committees, and then presented to the Board for

further consideration and agreement, as appropriate.

The Executive Committees monitor and respond to new, emerging risks and changes in regulation or governance

standards. These are reviewed at every BRC meeting and are also assessed by the Group Chief Risk Officer through

day-to-day oversight and regular reporting.

The First line is responsible for regularly reviewing the overall risk profile, using inputs such as strategic risk

assessments, scenario analysis, risk events and losses, root cause analyses, and key risk indicators.

Both first and second line teams maintain a watching brief to identify when risk assessments require update for

new and emerging risks. The reporting process provides the BRC with continuous visibility into the Group’s risk

environment and enables timely challenge on risk-mitigation plans.

Further details on the Boards’ responsibility for risk management and the role of the BRC is set out in the Board

Risk Committee Report of the Group’s Annual Report and Accounts 2025 on pages 96 to 98 and in the Board

Committees and Terms of Reference on our website at www.skipton.co.uk/about-us/governance .

Skipton Building Society | Pillar 3 Disclosures 31 December 2025

Scope of application

4.1

UK LI1 – Differences between accounting and regulatory scopes of consolidation and mapping of financial statement categories with regulatory risk categories

31 December 2025

Carrying

values as

reported in

published

financial

statements

Carrying

values under

scope of

regulatory

consolidation

Carrying values of items

Breakdown by asset class according to the balance sheet in

the published financial statements

Subject to

the credit

risk

framework

Subject to

the CCR

framework

Subject to the

securitisation

framework

Subject to

the market

risk

framework

Not subject to

own funds

requirements

or subject to

deduction

from own

funds

£m

Cash in hand and balances with the Bank of England

1,360.2

Loans and advances to credit institutions 2

353.3

314.2

49.7

264.5

Debt securities

4,269.4

3,650.4

619.0

Derivative financial instruments

350.8

Loans and advances to customers held at amortised cost

33,378.9

33,399.4

Loans and advances to customers held at FVTPL

0.8

Equity release portfolio held at FVTPL

263.1

Assets held for sale

3.7

Current tax asset

0.2

2.1

10 Investments in subsidiary undertakings and joint ventures 3

13.1

213.5

11 Property, plant and equipment

77.1

43.7

12 Right-of-use assets

107.0

13.4

13 Deferred tax asset

0.4

5.6

14 Other assets

177.7

28.3

15 Intangible assets

377.6

12.8

16 Loan to defined benefit pension scheme held at FVTPL

10.9

17 Retirement benefit surplus

18 Total assets

40,744.2

40,291.9

39,044.8

615.3

619.0

12.8

Notes

Differences between columns (a) and (b) are explained in template UK LIA on page 23, point (a).

To better align with guidance, collateral of £264.5m has been reported under the counterparty credit risk framework.

The balance comprises £202.6m relating to investments in subsidiaries, the remaining £10.9m relates to receivables due from group companies.

Skipton Building Society | Pillar 3 Disclosures 31 December 2025

UK LI1 – Differences between accounting and regulatory scopes of consolidation and mapping of financial statement categories with regulatory risk categories

(continued)

31 December 2025

Carrying

values as

reported in

published

financial

statements

Carrying

values under

scope of

regulatory

consolidation

Carrying values of items

Breakdown by liability class according to the balance sheet

in the published financial statements

Subject to

the credit

risk

framework

Subject to

the CCR

framework

Subject to the

securitisation

framework

Subject to

the market

risk

framework

Not subject to

own funds

requirements

or subject to

deduction

from own

funds

£m

30,526.3

Amounts owed to credit institutions

327.2

Amounts owed to other customers

2,719.6

2,800.6

Debt securities in issue

3,361.9

Derivative financial instruments

186.2

Current tax liability

2.3

2.2

Lease liabilities

110.3

14.2

Other liabilities

109.3

13.7

Accruals and deferred income

124.7

36.0

10 Provisions for liabilities

32.6

5.1

11 Deferred tax liability

0.6

12 Retirement benefit obligations

7.4

1.2

13 Subordinated liabilities

356.0

14 Subscribed capital

15.2

15 Total liabilities

37,879.6

37,645.8

186.2

37,459.6

Note

Differences between columns (a) and (b) are explained in template UK LIA on page 23, point (a).

Skipton Building Society | Pillar 3 Disclosures 31 December 2025

UK LI1 – Differences between accounting and regulatory scopes of consolidation and mapping of financial statement categories with regulatory risk categories

(continued)

31 December 2024

Carrying

values as

reported in

published

financial

statements

Carrying

values under

scope of

regulatory

consolidation

Carrying values of items

Breakdown by asset class according to the balance sheet in

the published financial statements

Subject to

the credit

risk

framework

Subject to

the CCR

framework

Subject to the

securitisation

framework

Subject to

the market

risk

framework

Not subject to

own funds

requirements

or subject to

deduction

from own

funds

£m

Cash in hand and balances with the Bank of England

1,930.6

Loans and advances to credit institutions 1

414.6

381.9

91.4

290.5

Debt securities

4,349.6

3,729.7

619.9

Derivative financial instruments

752.1

Loans and advances to customers held at amortised cost

30,601.1

30,620.7

Loans and advances to customers held at FVTPL

0.9

Equity release portfolio held at FVTPL

277.2

Current tax asset

3.0

Investments in subsidiary undertakings and joint ventures

11.2

211.2

10 Property, plant and equipment

80.9

44.0

11 Right-of-use assets

90.4

10.9

12 Deferred tax asset

6.3

2.0

13 Other assets

181.2

24.1

14 Intangible assets

311.4

10.8

15 Retirement benefit surplus

4.8

16 Total assets

39,015.3

38,620.8

36,942.7

1,042.6

619.9

15.6

Notes

To better align with guidance, collateral of £290.5m included in the credit risk framework in the published disclosures as at 31 December 2024, has been reclassified under the counterparty credit

risk framework.

Skipton Building Society | Pillar 3 Disclosures 31 December 2025

UK LI1 – Differences between accounting and regulatory scopes of consolidation and mapping of financial statement categories with regulatory risk categories

(continued)

31 December 2024

Carrying

values as

reported in

published

financial

statements

Carrying

values under

scope of

regulatory

consolidation

Carrying values of items

Breakdown by liability class according to the balance sheet

in the published financial statements

Subject to

the credit

risk

framework

Subject to

the CCR

framework

Subject to the

securitisation

framework

Subject to

the market

risk

framework

Not subject to

own funds

requirements

or subject to

deduction

from own

funds

£m

28,268.5

Amounts owed to credit institutions

1,599.6

Amounts owed to other customers

2,751.1

2,834.5

Debt securities in issue

2,435.3

Derivative financial instruments

225.1

Current tax liability

2.7

5.5

Lease liabilities

92.1

11.5

Other liabilities

86.6

16.7

Accruals and deferred income

114.7

32.0

10 Provisions for liabilities

31.8

5.4

11 Deferred tax liability

12 Retirement benefit obligations

8.6

13 Subordinated liabilities

690.2

14 Subscribed capital

41.6

15 Total liabilities

36,347.9

36,165.9

225.1

35,940.8

Skipton Building Society | Pillar 3 Disclosures 31 December 2025

4.2

UK LI2 – Main sources of differences between regulatory exposure amounts and carrying values in financial statements

31 December 2025

Total

Items subject to

Credit risk

framework

Securitisation

framework

CCR

framework

Market risk

framework

£m

Assets carrying value amount under the scope of regulatory consolidation (as per template LI1)

40,279.1

39,044.9

619.0

615.2

Liabilities carrying value amount under the regulatory scope of consolidation (as per template LI1)

186.2

Total net amount under the regulatory scope of consolidation

40,092.9

39,044.9

619.0

429.0

Off-balance-sheet amounts

2,292.8

Differences in valuations

(4.6)

(3.9)

(0.6)

(0.1)

Differences due to different netting rules, other than those already included in row 2

Differences due to consideration of provisions

20.6

Differences due to the use of credit risk mitigation techniques (CRMs)

(0.2)

Differences due to credit conversion factors

(440.3)

11 Other differences

87.7

12 Exposure amounts considered for regulatory purposes

42,048.9

40,913.9

618.4

516.6

Note

Differences between regulatory exposure amounts and carrying values in financial statements are explained in template UK LIA on page 23, point (b).

UK LI2 – Main sources of differences between regulatory exposure amounts and carrying values in financial statements (continued)

31 December 2024

Total

Items subject to

Credit risk

framework

Securitisation

framework

CCR

framework

Market risk

framework

£m

Assets carrying value amount under the scope of regulatory consolidation (as per template LI1)

38,605.2

36,942.7

619.9

1,042.6

Liabilities carrying value amount under the regulatory scope of consolidation (as per template LI1)

225.1

Total net amount under the regulatory scope of consolidation

38,380.1

36,942.7

619.9

817.5

Off-balance-sheet amounts

1,966.5

Differences in valuations

(4.7)

(4.0)

(0.7)

Differences due to different netting rules, other than those already included in row 2

Differences due to consideration of provisions

12.5

Differences due to the use of credit risk mitigation techniques (CRMs)

(0.6)

Differences due to credit conversion factors

(379.2)

11 Other differences

(35.1)

275.5

(310.6)

12 Exposure amounts considered for regulatory purposes

39,939.5

38,813.4

619.2

506.9

Skipton Building Society | Pillar 3 Disclosures 31 December 2025

4.3

UK LI3 – Outline of the differences in the scopes of consolidation (entity by entity)

The template below outlines the differences in the scope of consolidation by entity as at 31 December 2025.

Name of the entity

Method of

accounting

consolidation

Method of regulatory consolidation

Full

consolidation

Proportional

consolidation

Equity

method

Neither

consolidated

nor deducted

Deducted

Description of the entity

Amber Homeloans Limited

Full consolidation

Former lending body

Connells Limited and subsidiary

undertakings

Full consolidation

Estate agency and related businesses

Darrowby No. 5 plc

Full consolidation

Funding vehicle

Darrowby No. 6 plc

Full consolidation

Funding vehicle

Jade Software Corporation Limited and

subsidiary undertakings

Full consolidation

Provider of software development

services

North Yorkshire Mortgages Limited

Full consolidation

Former lending body

Skipton Building Society

Full consolidation

Credit Institution

Skipton Business Finance Limited

Full consolidation

Provider of debt factoring services

Skipton Covered Bonds Limited Liability

Partnership

Full consolidation

Mortgage acquisition and guarantor of

covered bonds

Skipton Financial Services Limited

Full consolidation

Financial adviser

Skipton Group Holdings Limited (SGHL)

Full consolidation

Intermediate holding company

Skipton International Limited (SIL)

Full consolidation

Offshore deposit taker and lender

Skipton Investments Limited

Full consolidation

Intermediate holding company

Skipton Trustees Limited

Full consolidation

Estate administration services

Notes

1. SIL is based in Guernsey and is regulated by the Guernsey Financial Services Commission (GFSC).

2. The following entities have been dissolved during the year and are excluded from consolidation: Bailey Computer Services Limited (Dissolved: 9 July 2025), Skipton Mortgage Corporation Limited

(Dissolved: 7 July 2025), and Skipton Mortgages Limited (Dissolved: 1 November 2025).

3. On 1 January 2025, Jade Software Corporation Limited acquired Northwest Investments NZ Limited, which is now held indirectly through the Group’s investment in Jade Software Corporation

Limited.

Skipton Building Society | Pillar 3 Disclosures 31 December 2025

4.4

UK LIA – Explanations of differences between accounting and regulatory exposure amounts

a) Differences between columns (a) and (b) in template UK LI1 (Article 436(b) CRR)

The following entities are included in the accounting group but are specifically excluded from the Group prudential

consolidation on the basis that they are either not a financial institution in accordance with Article 4 of the UK CRR,

or they do not meet the own funds criteria set out in Article 19 of the UK CRR:

•

Amber Homeloans Limited;

•

Connells Limited and subsidiary undertakings;

•

Darrowby No. 5 plc;

•

Jade Software Corporation Limited and subsidiary undertakings;

•

North Yorkshire Mortgages Limited;

•

Skipton Financial Services Limited; and

•

Skipton Trustees Limited.

The above entities are neither consolidated nor deducted from own funds; instead, capital is held for the associated

cost of investment in accordance with Article 89 of the UK CRR.

b) Information on the main sources of differences between the accounting and regulatory scope of consolidation

shown in template UK LI2 (Article 436(b) CRR)

The balances within the Group’s Annual Report and Accounts 2025 are prepared in line with IFRS, whilst the

balances within the Pillar 3 disclosures are prepared in line with the UK CRR. This results in some differences

between the two documents.

The amounts considered for regulatory purposes shown in template UK LI2 differ to the accounting carrying values

under the regulatory scope of consolidation for the following key reasons:

•

Off-balance sheet amounts are included in line with Article 111 of the UK CRR, as shown in row 4. These

relate primarily to credit commitments for mortgages not yet drawn down and undrawn credit facilities

with subsidiary companies within the prudential group, and are reduced by applicable credit conversion

factors as shown in row 9;

•

Additional valuation adjustments (AVA) for prudent valuation are shown in row 5. The Group utilises the

Simplified approach to calculate prudent valuation adjustments which is 0.1% of the sum of the absolute

value of fair-valued assets and liabilities;

•

Exposures for retail mortgages measured under the IRB approach are not adjusted for accounting loan

impairment in accordance with Article 166 of the UK CRR. The accounting loan impairment is added back

in row 7 and is included in the calculation of the regulatory exposure;

•

Guarantees provided under the UK Government Bounce Back Loan Programme (BBLs) are shown in row

8; and

•

Other differences shown in row 11 are specific regulatory capital adjustments relating to the alignment of

balance sheet exposures to the regulatory exposures. These adjustments are related to the loss

attributable to effective hedge accounting on residential mortgages and the potential future credit

exposure add-ons for derivative financial instruments under SA-CCR. Also included in row 11 are certain

corporate exposures such as derivative transactions which are shown as gross in the financial statements

but are subject to collateral netting arrangements for regulatory purposes.

4.5

UK LIB – Other qualitative information on the scope of application

a) Impediment to the prompt transfer of own funds or to the repayment of liabilities within the group (Article 436(f)

CRR)

In order to ensure the greatest degree of flexibility in the allocation of capital, the Board aims to retain the optimal

level of capital in the Group. This general principle is subject to a number of regulatory, taxation and commercial

considerations which are taken into account before decisions regarding dividend payments from Group entities

are finalised. The Board considers that there are no current or foreseeable material, practical or legal impediments

to the prompt repayment of liabilities between the Society’s subsidiary undertakings within the Group. Prior consent

is required from the GFSC before any capital can be repatriated or dividends paid by SIL to the Society as the parent

entity.

Skipton Building Society | Pillar 3 Disclosures 31 December 2025

b) Subsidiaries not included in the consolidation with own funds less than required (Article 436(g) CRR)

In accordance with Article 19(1) of the UK CRR, from August 2025, certain subsidiaries have been excluded from

the Group prudential consolidation because their total assets and off-balance sheet items, individually or in

aggregate, are less than the lower of €10 million or 1% of the total assets and off-balance sheet items of the parent

undertaking.

The following subsidiaries have been excluded:

•

Amber Homeloans Limited;

•

Darrowby No. 5 plc;

•

North Yorkshire Mortgages Limited; and

•

Skipton Financial Services Limited.

c) Use of derogation referred to in Article 7 CRR or individual consolidation method laid down in Article 9 CRR

(Article 436(h) CRR)

The Group complies with the obligations set out in Article 6 of the UK CRR on an individual basis which comprises

the Society only and does not use the derogation referred to in Article 7 or the individual consolidation method in

Article 9.

d) Aggregate amount by which the actual own funds are less than required in all subsidiaries that are not included

in the consolidation (Article 436(g) CRR)

Subsidiaries excluded from the scope of consolidation are individually compliant with applicable prudential

requirements. Therefore, the aggregate amount by which actual own funds are less than required is £0.

4.6

UK PV1 – Prudent valuation adjustments (PVA)

Template UK PV1 has not been presented as it is only applicable for institutions applying the Core approach to

determine AVA for prudent valuation. The Group utilises the Simplified approach.

Skipton Building Society | Pillar 3 Disclosures 31 December 2025

Own funds

The templates in this section show the composition of regulatory capital and how the values reconcile from the Group balance sheet to the Group’s regulatory capital position as at

31 December 2025. Column ‘b’ below contains references to column ‘c’ in template UK CC2. Rows in which there is no data to report, zero values or rows not applicable in the UK, have

not been presented.

5.1

UK CC1 – Composition of regulatory own funds

Source based on reference

numbers/letters of the

balance sheet under the

regulatory scope of

consolidation

Amounts

31 Dec 25

30 Jun 25

£m

Common Equity Tier 1 (CET1) capital: instruments and reserves

Retained earnings 1

2,448.7

(c)

2,450.3

Accumulated other comprehensive income (and other reserves)

(9.6)

(d) +(e) + (g) + (h) + (i)

(11.8)

UK-5a Independently reviewed interim profits net of any foreseeable charge or dividend

207.0

(f)1

96.3

Common Equity Tier 1 (CET1) capital before regulatory adjustments

2,646.1

2,534.8

Common Equity Tier 1 (CET1) capital: regulatory adjustments

Additional value adjustments (negative amount)

(4.6)

(4.8)

Intangible assets (net of related tax liability) (negative amount)

(12.8)

(a)

(12.2)

Fair value reserves related to gains or losses on cash flow hedges of financial instruments that are not

valued at fair value

(9.8)

(h)

(9.3)

Negative amounts resulting from the calculation of expected loss amounts

(43.9)

(42.8)

Total regulatory adjustments to Common Equity Tier 1 (CET1)

(71.1)

(69.1)

Common Equity Tier 1 (CET1) capital

2,575.0

2,465.7

Additional Tier 1 (AT1) capital: regulatory adjustments

Tier 1 capital (T1 = CET1 + AT1)

2,575.0

2,465.7

Tier 2 (T2) capital: instruments

Capital instruments and the related share premium accounts 2

15.0

(b)

40.0

Tier 2 (T2) capital before regulatory adjustments

15.0

40.0

Tier 2 (T2) capital: regulatory adjustments

Tier 2 (T2) capital

15.0

40.0

Total capital (TC = T1 + T2)

2,590.0

2,505.7

Total Risk exposure amount

9,141.4

8,559.3

Capital ratios and buffers

Common Equity Tier 1 (as a percentage of total risk exposure amount) (%)

28.2

28.8

Tier 1 (as a percentage of total risk exposure amount)(%)

28.2

28.8

Skipton Building Society | Pillar 3 Disclosures 31 December 2025

Source based on reference

numbers/letters of the

balance sheet under the

regulatory scope of

consolidation

Amounts

31 Dec 25

30 Jun 25

£m

Total capital (as a percentage of total risk exposure amount)(%)

28.3

29.3

Institution CET1 overall capital requirement (CET1 requirement in accordance with Article 92 (1) CRR, plus

additional CET1 requirement which the institution is required to hold in accordance with point (a) of Article

104(1) CRD, plus combined buffer requirement in accordance with Article 128(6) CRD) expressed as a

percentage of risk exposure amount) (%)

10.3

10.0

of which: capital conservation buffer requirement (%)

2.5

of which: countercyclical buffer requirement (%)

1.8

Common Equity Tier 1 available to meet buffers (as a percentage of risk exposure amount) (%)

17.8

19.3

Amounts below the thresholds for deduction (before risk weighting)

Deferred tax assets arising from temporary differences (amount below 17,65% threshold, net of related tax

liability where the conditions in Article 38 (3) CRR are met)

9.4

8.7

Applicable caps on the inclusion of provisions in Tier 2

Cap on inclusion of credit risk adjustments in T2 under standardised approach

18.1

Cap for inclusion of credit risk adjustments in T2 under internal ratings-based approach

40.0

36.8

Notes

1. Retained earnings includes the general reserve and excludes amounts defined as other comprehensive income and independently reviewed interim profits which are included in row 3 and row UK-5a,

respectively. The movement in retained earnings since June 2025 was due to certain subsidiaries being excluded from the Group prudential consolidation on the basis of immateriality. Further details

are set out in paragraph b) UK LIB.

2. Comprises Permanent Interest Bearing Shares (PIBS) eligible as Tier 2 capital. In December 2025, the Society took the opportunity to simplify its balance sheet, by way of a liability management exercise

to buy back £25.0m 12.875% legacy Tier 2 eligible PIBS.

Skipton Building Society | Pillar 3 Disclosures 31 December 2025

5.2

UK CC2 – Reconciliation of regulatory own funds to balance sheet in the audited financial

statements

31 December 2025

Balance sheet

as in published

financial

statements

Under

regulatory

scope of

consolidation

Reference

£m

Assets - Breakdown by asset class according to the balance sheet in the published financial statements

Cash in hand and balances with the Bank of England

1,360.2

Loans and advances to credit institutions

353.3

314.2

Debt securities

4,269.4

Derivative financial instruments

350.8

Loans and advances to customers held at amortised cost

33,378.9

33,399.4

Loans and advances to customers held at FVTPL

0.8

Equity release portfolio held at FVTPL

263.1

Current tax asset

0.2

2.1

Investments in subsidiary undertakings and joint ventures

13.1

213.5

10 Assets held for sale

3.7

11 Property, plant and equipment

77.1

43.7

12 Right-of-use assets

107.0

13.4

13 Deferred tax assets

0.4

5.6

14 Other assets

177.7

28.3

15 Intangible assets

377.6

12.8

(a)

16 Loan to pension scheme held at FVTPL

10.9

17 Retirement benefit surplus

18 Total assets

40,744.2

40,291.9

Liabilities - Breakdown by liability class according to the balance sheet in the published financial statements

30,526.3

Amounts owed to credit institutions

327.2

Amounts owed to other customers

2,719.6

2,800.6

Debt securities in issue

3,361.9

Derivative financial instruments

186.2

Current tax liability

2.3

2.2

Lease liabilities

110.3

14.2

Other liabilities

109.3

13.7

Accruals and deferred income

124.7

36.0

10 Provisions for liabilities

32.6

5.1

11 Deferred tax liability

0.6

12 Retirement benefit obligations

7.4

1.2

13 Subordinated liabilities

356.0

14 Subscribed capital

15.2

of which: Permanent interest bearing shares

15.0

(b)

of which: Accrued Interest - Subscribed capital

0.2

15 Total liabilities

37,879.6

37,645.8

Members’ interests

General reserve

2,855.1

2,643.0

of which: General reserve brought forward

2,659.9

2,448.7

(c)

of which: remeasurement gains on defined benefit

obligation

(18.5)

(17.6)

(d)

of which: Tax

5.1

4.9

(e)

of which: Profits accrued in the year to date

208.6

207.0

(f)

Fair value reserve

(6.3)

(g)

Cash flow hedging reserve

9.8

(h)

Cost of hedging reserve

(0.4)

(i)

Translation reserve

2.8

Attributable to members of Skipton Building Society

2,861.0

2,646.1

Non-controlling interests

3.6

Total members' interests

2,864.6

2,646.1

Total liabilities and members' interests

40,744.2

40,291.9

Skipton Building Society | Pillar 3 Disclosures 31 December 2025

5.3

UK CCA – Main features of regulatory own funds instruments and eligible liabilities instruments

In December, the Society completed a liability management exercise to buy back £25.0m 12.875% legacy Tier 2

eligible PIBS, resulting in a one-off £27.9m charge, but delivering ongoing interest savings of £3.2m per annum in

perpetuity. The Group maintained strong capital headroom over its Minimum Requirement for Own Funds and

Eligible Liabilities (MREL), enabling £350.0m of non-preferred debt to settle at maturity during October 2025.

31 December 2025

Qualitative or quantitative

information

Issuer

Skipton Building Society 1

Unique identifier (e.g. CUSIP, ISIN or Bloomberg identifier for private placement)

GB0004440623

Public or private placement

Public

Governing law(s) of the instrument

English

Contractual recognition of write down and conversion powers of resolution

authorities

Regulatory treatment

Current treatment taking into account, where applicable, transitional CRR rules

Tier 2

Post-transitional CRR rules

Tier 2

Eligible at solo/(sub-)consolidated/ solo&(sub-)consolidated

Solo & (Sub-)Consolidated

Instrument type (types to be specified by each jurisdiction)

PIBS

Amount recognised in regulatory capital or eligible liabilities (Currency in million, as

of most recent reporting date)

£15,000,000

Nominal amount of instrument

£15,000,000

UK-9a

Issue price

100.000

UK-9b

Redemption price

100.000

Accounting classification

Liability - amortised cost

Original date of issuance

26 April 2000

Perpetual or dated

Perpetual

Original maturity date

No maturity

Issuer call subject to prior supervisory approval

Optional call date, contingent call dates and redemption amount

No Issuer Call

Subsequent call dates, if applicable

N/A

Coupons / dividends

Fixed or floating dividend/coupon

Fixed

Coupon rate and any related index

8.500%

Existence of a dividend stopper

Yes 2

UK-20a

Fully discretionary, partially discretionary or mandatory (in terms of timing)

Mandatory

UK-20b

Fully discretionary, partially discretionary or mandatory (in terms of amount)

Mandatory

Existence of step up or other incentive to redeem

Noncumulative or cumulative

Non-cumulative

Convertible or non-convertible

Non-convertible

If convertible, conversion trigger(s)

N/A

If convertible, fully or partially

N/A

If convertible, conversion rate

N/A

If convertible, mandatory or optional conversion

N/A

If convertible, specify instrument type convertible into

N/A

If convertible, specify issuer of instrument it converts into

N/A

Write-down features

Yes

If write-down, write-down trigger(s)

Non-contractual, statutory

via bail-in

If write-down, full or partial

Fully or Partially

If write-down, permanent or temporary

Permanent

If temporary write-down, description of write-up mechanism

N/A

34a

Type of subordination (only for eligible liabilities)

N/A

UK-34b

Ranking of the instrument in normal insolvency proceedings

Tier 2

Position in subordination hierarchy in liquidation (specify instrument type

immediately senior to instrument)

Senior Non-Preferred

Non-compliant transitioned features

If yes, specify non-compliant features

N/A

37a

Link to the full term and conditions of the instrument (signposting)

Web link

Notes

1. In April 2000, the Scarborough Building Society issued £15.0m of PIBS, comprising 6,000 individual shares and each one had

a nominal value of £2,500. These were assumed by the Society in 2009 following the merger with Scarborough Building

Society.

2. These are not typical dividend stoppers since, if the Society has cancelled a payment on a more senior ranking instrument

(i.e. a deposit or share investment other than a deferred share investment), it cannot pay on any of these PIBS.

Skipton Building Society | Pillar 3 Disclosures 31 December 2025

UK CCA – Main features of regulatory own funds instruments and eligible liabilities instruments

(continued)

31 December 2025

Qualitative or quantitative

information

Issuer

Skipton Building Society

Unique identifier (e.g. CUSIP, ISIN or Bloomberg identifier for private placement)

XS2600822998

Public or private placement

Public

Governing law(s) of the instrument

English

Contractual recognition of write down and conversion powers of resolution authorities

Yes

Regulatory treatment

Current treatment taking into account, where applicable, transitional CRR rules

N/A

Post-transitional CRR rules

Eligible liabilities

Eligible at solo/(sub-)consolidated/ solo&(sub-)consolidated

Solo & (Sub-)Consolidated

Instrument type (types to be specified by each jurisdiction)

Senior Non-Preferred

Amount recognised in regulatory capital or eligible liabilities (Currency in million, as of

most recent reporting date)

£350,000,000

Nominal amount of instrument

£350,000,000

UK-9a

Issue price

99.607

UK-9b

Redemption price

100.000

Accounting classification

Liability – amortised cost

Original date of issuance

25 April 2023

Perpetual or dated

Dated

Original maturity date

25 April 2029

Issuer call subject to prior supervisory approval

Yes

Optional call date, contingent call dates and redemption amount

25 April 2028 no contingent

call dates and redemption

amount in full at par

Subsequent call dates, if applicable

N/A

Coupons / dividends

Fixed or floating dividend/coupon

Fixed

Coupon rate and any related index

6.250%

Existence of a dividend stopper

UK-20a

Fully discretionary, partially discretionary or mandatory (in terms of timing)

Mandatory

UK-20b

Fully discretionary, partially discretionary or mandatory (in terms of amount)

Mandatory

Existence of step up or other incentive to redeem

Noncumulative or cumulative

Non-cumulative

Convertible or non-convertible

Non-convertible

If convertible, conversion trigger(s)

N/A

If convertible, fully or partially

N/A

If convertible, conversion rate

N/A

If convertible, mandatory or optional conversion

N/A

If convertible, specify instrument type convertible into

N/A

If convertible, specify issuer of instrument it converts into

N/A

Write-down features

Yes

If write-down, write-down trigger(s)

Contractual recognition of

statutory bail-in

If write-down, full or partial

Fully or Partially

If write-down, permanent or temporary

Permanent

If temporary write-down, description of write-up mechanism

N/A

34a

Type of subordination (only for eligible liabilities)

Contractual

UK-34b Ranking of the instrument in normal insolvency proceedings

Senior Non-Preferred

Position in subordination hierarchy in liquidation (specify instrument type immediately

senior to instrument)

Senior Preferred

Non-compliant transitioned features

If yes, specify non-compliant features

N/A

37a

Link to the full term and conditions of the instrument (signposting)

Web link

Skipton Building Society | Pillar 3 Disclosures 31 December 2025

Countercyclical capital buffer

Under the CRD V, institutions are required to hold a combined buffer requirement comprising a Capital Conservation Buffer (CCoB) and a Countercyclical Buffer (CCyB) to provide

capital that can be utilised to absorb losses in stressed conditions. As at 31 December 2025, the CCoB was 2.5% of RWAs and the CCyB rate was 2.0% of RWAs for exposures

in the UK. The Group’s specific CCyB was 1.8% of RWAs (31 December 2024: 1.8%) calculated based on the weighted average of the buffer rates in effect for the countries in

which the Group has relevant credit exposures.

The template below shows the country of residence of the obligor (borrower) for the Group general credit exposures and securitisation exposures. The diversification of countries

in the template below is primarily due to SIL providing mortgages to expatriates and non-UK citizens. The Group does not offer mortgages on properties outside of the UK or

Channel Islands.

6.1

UK CCyB1 – Geographical distribution of credit exposures relevant for the calculation of the countercyclical buffer

31 December 2025

General credit exposures

Relevant credit

exposures - Market

risk

Securitisation exposures

Exposure value for non-

trading book

Total

exposure

value

Own fund requirements

Risk-weighted exposure

amounts

Own funds requirements

weights

Countercyclical buffer rate

Exposure

value under

the

standardised

approach

Exposure

value

under the

IRB

approach

Sum of

long and

short

position

of trading

book

exposures

for SA

Value of

trading

book

exposure

for

internal

models

Relevant

credit

exposure

- Credit

risk

Relevant

credit

exposure

- Market

risk

Relevant

credit

exposures –

Securitisation

positions in

the non-

trading book

Total

£m

Breakdown by Country

010-010 United Kingdom

1,629.7

33,249.6

618.4

35,497.7

581.2

4.9

586.2

7,326.2

90.2

2.0

010-011 Jersey

474.6

0.5

475.1

13.6

169.8

2.1

010-012 Hong Kong

325.3

1.0

326.3

9.3

116.7

1.5

0.5

010-013 Guernsey

278.5

6.7

285.2

8.8

109.7

1.4

010-014 France

25.8

1.8

27.6

0.8

10.1

0.1

1.0

010-015 Germany

19.7

1.4

21.1

0.6

7.3

0.1

0.8

010-016 Spain

18.9

1.5

20.4

0.6

7.3

0.1

0.5

010-017 Ireland

18.3

1.8

20.1

0.6

7.0

0.1

1.5

010-018 Netherlands

17.9

1.0

18.9

0.5

6.6

0.1

2.0

010-019 Australia

6.5

7.7

14.2

0.4

4.7

0.1

1.0

010-020 Denmark

5.6

0.4

6.0

0.2

2.1

2.5

010-021 Luxembourg

3.7

0.4

4.1

0.1

1.5

0.5

010-022 Cyprus

3.8

0.2

4.0

0.1

1.5

1.0

Skipton Building Society | Pillar 3 Disclosures 31 December 2025

31 December 2025

General credit exposures

Relevant credit

exposures - Market

risk

Securitisation exposures

Exposure value for non-

trading book

Total

exposure

value

Own fund requirements

Risk-weighted exposure

amounts

Own funds requirements

weights

Countercyclical buffer rate

Exposure

value under

the

standardised

approach

Exposure

value

under the

IRB

approach

Sum of

long and

short

position

of trading

book

exposures

for SA

Value of

trading

book

exposure

for

internal

models

Relevant

credit

exposure

- Credit

risk

Relevant

credit

exposure

- Market

risk

Relevant

credit

exposures –

Securitisation

positions in

the non-

trading book

Total

£m

010-023 Belgium

3.7

0.2

3.9

0.1

1.3

1.0

010-024 Poland

2.6

1.3

3.9

1.3

1.0

010-025 Norway

3.4

0.1

3.5

1.3

2.5

010-026 Sweden

2.0

0.5

2.5

0.8

2.0

010-027 Republic Of Korea

1.9

0.3

2.2

0.1

0.7

1.0

010-028 Czech Republic

1.9

0.1

2.0

0.1

0.7

1.3

010-029 Chile

0.8

0.3

0.5

010-030 Hungary

0.5

0.2

0.7

0.2

1.0

010-031 Iceland

0.6

0.2

2.5

010-032 Croatia

0.5

0.1

1.5

010-033 Bulgaria

0.2

0.1

2.0

010-034 Romania

0.1

1.0

010-035 Lithuania

0.1

1.0

010-036 Other countries

833.9

30.4

864.3

27.8

347.1

020

Total

3,680.0

33,307.6

618.4

37,606.0

645.0

4.9

650.0

8,124.7

95.8

Note

For materiality reasons, only those countries where a countercyclical buffer rate has been set or which individually have an own funds requirement weighting of equal to or more than one percent

are listed. Exposures in countries where these criteria are not met have been presented in aggregate as ‘other countries’.

Skipton Building Society | Pillar 3 Disclosures 31 December 2025

UK CCyB1 – Geographical distribution of credit exposures relevant for the calculation of the countercyclical buffer (continued)

30 June 2025

General credit exposures

Relevant credit

exposures - Market risk

Securitisation exposures

Exposure value for non-

trading book

Total

exposure

value

Own fund requirements

Risk-weighted exposure

amounts

Own funds requirements

weights

Countercyclical buffer rate

Exposure

value under

the

standardised

approach

Exposure

value

under the

IRB

approach

Sum of

long and

short

position of

trading

book

exposures

for SA

Value of

trading

book

exposure

for

internal

models

Relevant

credit

exposure -

Credit risk

Relevant

credit

exposure -

Market

risk

Relevant credit

exposures –

Securitisation

positions in

the non-trading

book

Total

£m

Breakdown by Country

010-010

United Kingdom

1,639.4

31,960.5

642.2

34,242.0

541.9

5.1

547.0

6,838.1

90.1

2.0

010-011

Jersey

487.3

0.5

487.8

13.8

173.0

2.3

010-012

Guernsey

296.6

7.0

303.6

9.7

121.0

1.6

010-013

Hong Kong

320.6

1.3

321.9

9.1

114.3

1.5

0.5

010-014

France

24.2

2.7

26.9

0.8

9.5

0.1

1.0

010-015

Germany

19.8

1.5

21.4

0.6

7.3

0.1

0.8

010-016

Ireland

18.2

2.3

20.4

0.6

7.3

0.1

1.5

010-017

Netherlands

18.6

1.0

19.6

0.6

6.9

0.1

2.0

010-018

Australia

6.2

7.6

13.8

0.4

5.2

0.1

1.0

010-019

Denmark

5.8

0.1

5.9

0.2

2.1

0.0

2.5

010-020

Cyprus

3.8

0.2

4.0

0.1

1.6

0.0

1.0

010-021

Belgium

3.7

0.4

4.1

0.1

1.4

0.0

1.0

010-022

Sweden

3.2

0.7

3.9

0.1

1.3

0.0

2.0

010-023

Luxembourg

3.5

0.4

3.8

0.1

1.3

0.0

0.5

010-024

Norway

3.1

0.1

3.2

0.1

1.1

0.0

2.5

010-025

Republic of Korea

2.0

0.3

2.3

0.1

0.8

0.0

1.0

010-026

Czech Republic

1.9

0.1

2.0

0.1

0.7

0.0

1.3

010-027

Chile

0.8

0.0

0.3

0.0

0.5

010-028

Iceland

0.7

0.0

0.2

0.0

2.5

010-029

Croatia

0.5

0.0

0.1

0.0

1.5

010-030

Bulgaria

0.2

0.4

0.0

0.1

0.0

2.0

010-031

Romania

0.1

0.2

0.3

0.0

0.3

0.0

1.0

010-032

Other countries

809.9

24.1

834.0

23.7

296.6

3.9

0.0

020

Total

3,669.7

32,011.4

642.2

36,323.2

602.1

5.1

607.2

7,590.4

100.0

Skipton Building Society | Pillar 3 Disclosures 31 December 2025

6.2

UK CCyB2 – Amount of institution-specific countercyclical capital buffer

During the period, the CCyB rate remained at 2% of RWAs for exposures in the UK. The institution specific CCyB reflects the weighted average of countercyclical buffer rates

applicable to the jurisdictions in which the Group has relevant credit exposures.

31 Dec 25

30 Jun 25

Total risk exposure amount £m

9,141.4

8,559.3

Institution specific countercyclical capital buffer rate %

1.8

Institution specific countercyclical capital buffer requirement £m

166.4

155.8

Skipton Building Society | Pillar 3 Disclosures 31 December 2025

Leverage ratio

The templates below set out a reconciliation between the total assets of the published financial statements and the leverage exposure measure.

7.1

UK LR1 – LRSum: summary reconciliation of accounting assets and leverage ratio exposures

Applicable amount

31 Dec 25

30 Jun 25

£m

Total assets as per published financial statements

40,744.2

39,833.1

Adjustment for entities which are consolidated for accounting purposes but are outside the scope of

prudential consolidation

(452.3)

(480.6)

(Adjustment for exemption of exposures to central banks)

(2,105.6)

(1,711.8)

Adjustment for eligible cash pooling transactions

26.7

Adjustment for derivative financial instruments

133.7

(3.0)

Adjustment for securities financing transactions (SFTs)

32.7

7.4

Adjustment for off-balance sheet items (i.e. conversion to credit equivalent amounts of off-balance sheet

exposures)

455.5

224.6

(Adjustment for prudent valuation adjustments and specific and general provisions which have reduced tier 1

capital (leverage)) 1

(71.1)

(69.1)

Other adjustments 2

(259.9)

(257.3)

Total exposure measure

38,477.2

37,570.0

Notes

1. These adjustments primarily relate to excess expected loss over impairment provisions, cash flow hedging reserve, intangible assets, and additional value adjustments (AVA).

2. Other adjustments in row 12 primarily relate to the collateral netting provided for derivative transactions in accordance with regulatory requirements.

Skipton Building Society | Pillar 3 Disclosures 31 December 2025

7.2

UK LR2 – LRCom: Leverage ratio common disclosure

The template below sets out a breakdown of the total leverage exposure measure used to calculate the leverage

ratio for the Group pursuant to the UK CRR.

Leverage ratio

exposures

31 Dec 25

30 Jun 25

£m

On-balance sheet exposures (excluding derivatives and SFTs)

On-balance sheet items (excluding derivatives, SFTs, but including collateral)

39,945.7

38,908.3

(Deductions of receivables assets for cash variation margin provided in derivatives

transactions)

(264.5)

(266.1)

(Asset amounts deducted in determining tier 1 capital (leverage))

(71.1)

(69.1)

Total on-balance sheet exposures (excluding derivatives and SFTs)

39,610.1

38,573.1

Derivative exposures

Replacement cost associated with SA-CCR derivatives transactions (i.e. net of

eligible cash variation margin)

397.0

388.3

Add-on amounts for potential future exposure associated with SA-CCR derivatives

transactions

87.5

88.4

Total derivatives exposures

484.5

476.7

Securities financing transaction (SFT) exposures

Counterparty credit risk exposure for SFT assets

1.1

6.9

UK-16a Derogation for SFTs: counterparty credit risk exposure in accordance with Articles

429e(5) and 222 of the CRR

31.6

0.5

Total securities financing transaction exposures

32.7

7.4

Other off-balance sheet exposures

Off-balance sheet exposures at gross notional amount

2,292.8

2,218.6

(Adjustments for conversion to credit equivalent amounts)

(1,837.3)

(1,994.0)

Off-balance sheet exposures

455.5

224.6

Capital and total exposure measure

Tier 1 capital (leverage)

2,575.0

2,465.7

Total exposure measure including claims on central banks

40,582.8

39,281.8

UK-24a (-) Claims on central banks excluded

(2,105.6)

(1,711.8)

UK-24b Total exposure measure excluding claims on central banks

38,477.2

37,570.0

Leverage ratio 1

Leverage ratio excluding claims on central banks (%)

6.7

6.6

UK-25a Fully loaded ECL accounting model leverage ratio excluding claims on central

banks (%)

6.7

6.6

UK-25b Leverage ratio excluding central bank reserves as if the temporary treatment of

unrealised gains and losses measured at fair value through other comprehensive

income had not been applied (%)

6.7

6.6

UK-25c Leverage ratio including claims on central banks (%)

6.4

6.3

Note

1. The additional leverage ratio disclosure requirements only apply to financial institutions with deposits equal to or greater

than £50bn or non-UK assets equal to or greater than £10bn. The rows UK-26 to UK-34 have been removed from the template

as the Group is not currently captured by either threshold.

Skipton Building Society | Pillar 3 Disclosures 31 December 2025

7.3

UK LR3 – LRSpl: Split-up of on balance sheet exposures (excluding derivatives, SFTs and exempted

exposures)

The template below shows more detail behind the on-balance sheet exposure figures reported in the template UK

LR2.

Leverage ratio exposures

31 Dec 25

30 Jun 25

£m

UK-1

Total on-balance sheet exposures (excluding derivatives,

SFTs, and exempted exposures), of which:

39,945.7

38,908.3

UK-2

Trading book exposures

UK-3

Banking book exposures, of which:

39,945.7

38,908.3

UK-4

Covered bonds

813.5

791.5

UK-5

Exposures treated as sovereigns

4,195.1

4,300.7

UK-6

Exposures to regional governments, MDB, international

organisations and PSE not treated as sovereigns

UK-7

Institutions

326.1

377.8

UK-8

Secured by mortgages of immovable properties

33,228.2

32,132.4

UK-9

Retail exposures

18.9

12.5

UK-10

Corporates

338.1

336.7

UK-11

Exposures in default

104.7

105.6

UK-12

Other exposures (e.g. equity, securitisations, and other non-

credit obligation assets)

921.1

851.1

7.4

UK LRA – Disclosure of leverage ratio qualitative information

a) Processes used to manage the risk of excessive leverage

The Group's leverage ratio is a key financial indicator monitored closely by the Board each month. The leverage

ratio is projected for the next five years as part of the Corporate Plan. The Corporate Plan is subject to stress tests

to ensure the Group is able to operate safely and with sufficient capital and leverage during a severe downturn in

the general economy and idiosyncratic Society-specific stress events. It is recognised that such forward planning

is essential to the successful management of the Group's leverage and capital ratios. The Board are satisfied that

the risk appetite, controls and planning framework will prevent the Group from taking excessive leverage within its

balance sheet.

b) Factors that had an impact on the leverage ratio during the period

During the second half of the year, the leverage ratio increased slightly to 6.7% (30 June 2025: 6.6%). This was

largely due to the growth of the balance sheet during the period, driven primarily by an increase in mortgage lending.

Skipton Building Society | Pillar 3 Disclosures 31 December 2025

Liquidity requirements

8.1

UK LIQA – Liquidity risk management

a) Strategies and processes in the management of the liquidity risk

Liquidity risk is the risk that the Group is unable to meet its current and future financial obligations as they fall due,

or is only able to do so at excessive cost, whilst retaining public and investor confidence. Liquidity and funding

risks are managed within a comprehensive risk framework, managed within limits and risk appetites defined within

the Treasury Policy.

The Liquidity Policy is designed to ensure the maintenance of sufficient liquid assets, in terms of quality and

amount, to cover internal, regulatory, and operational requirements. This is achieved through maintaining a prudent

level of liquid assets in realisable form to ensure the Group is able to meet its liabilities as they arise and to absorb

potential cash flow requirements created by maturity mismatches within the balance sheet or under a potential

stress scenario.

The cash flows are regularly monitored, forecast and stressed and risk limits are defined in the liquidity risk appetite

to ensure adequate liquidity is maintained at all times. There are also limits defined with the funding risk appetite

to ensure the Society maintains a prudent funding profile, incorporating limits related to the management of asset

encumbrance and the Society’s maturity profile to reduce associated refinancing risk of retail and wholesale

funding.

b) Structure and organisation of the liquidity risk management function

The Board is responsible for approving the Group's liquidity and funding risk appetites and is also responsible for

the review, challenge and approval of the ILAAP document.

The Board delegates to the Group Chief Financial Officer (GCFO) the responsibility for ensuring that the Society

and Group have adequate liquid and financial resources to meet liabilities as they fall due.

The Board delegates the responsibility to ALCO to develop and maintain policies on liquidity management and to

oversee that the liquidity and funding risk appetites and policies are adhered to. The ALCO also monitors the

composition of the Group's liquidity in line with the approved strategy and policies. ALCO are supported by the

Liquidity Management Committee (LMC), who meet at least fortnightly to review early warning risk indicators,

recent cash flows, and business performance relative to expectations along with projections of risk appetite

compliance given the latest forecasts.

The day-to-day management of liquidity is delegated to Group Treasury, with oversight and challenge of these

activities provided by Group Prudential and Enterprise Risk (second line) and Group Internal Audit (third line).

c) The degree of centralisation of liquidity management and interaction between the group’s units

Liquidity risk is actively overseen across the Group, with a strong emphasis on ensuring that the Society and each

subsidiary maintain robust, standalone liquidity positions, promoting resilience and minimising reliance on intra-

Group support.

The Society, through Group Treasury, acts as the central liquidity manager, balancing cash flow positions across

subsidiaries. Subsidiaries are encouraged to place surplus funds with the Society on a wholesale basis aligned to

their cash flow needs, while those requiring funding, can access capped working capital facilities approved by the

Group Wholesale Credit Committee (GWCC), a sub-committee of the ALCO.

The Society holds liquidity to support these facilities and to cover the risk of deposit repayment placed by

subsidiaries.

d) Scope and nature of liquidity risk reporting and measurement systems

The monitoring and forecasting of the Group's position against internal and regulatory liquidity risk metrics is

undertaken on a weekly basis, with the capability to monitor the position daily if required.

Skipton Building Society | Pillar 3 Disclosures 31 December 2025

e) Policies for hedging and mitigating the liquidity risk and strategies and processes for monitoring the continuing

effectiveness of hedges and mitigants

The Group has a range of limits and risk appetite requirements, defined within the Treasury Policy and approved

by the Board, to mitigate liquidity and funding risks arising from its business model.

This includes minimum requirements on liquidity and contingent liquidity resources which reflect the potential

impact of severe but plausible stress scenarios and the time needed to successfully realise liquidity resources

through the invocation of the Group's Recovery Plan. This ensures sufficient pre-positioned eligible assets are

maintained at all times with the Bank of England to access funding schemes under the Sterling Monetary

Framework, both from a business-as-usual perspective and also under a potential stressed scenario.

There are also limits on the types of assets which Group Treasury can invest in for liquidity purposes, both HQLA

which are eligible under the LCR and non-HQLA. The policy also defines a minimum limit of reserves required to be

held on call with the Bank of England to ensure the Group can meet its cash flow obligations, including intra-day

requirements, in a timely manner. The Group's liquidity comprises a diversified mix of Gilts and Treasury Bills,

securities issued by high quality Multilateral Development Banks, Covered Bonds and Residential Mortgage-Backed

Securities (RMBS).

f) An outline of the bank`s contingency funding plans

The Liquidity Contingency Plan is integrated into the Group's Recovery Plan. The Recovery Plan sets out the

management actions available to the Group to raise incremental liquidity and capital, the time horizon over which

this could be achieved, and the operational steps needed to execute the actions and associated risks. It also

contains the escalation process along with the roles and responsibilities of individuals and sets out how the

document links to the liquidity and capital risk frameworks, specifically its risk appetites, and the wider Business

Continuity Framework.

The Recovery Plan also sets out the early warning indicators used to identify a potential stress scenario which may

threaten the Group's liquidity resources or sources of funding. Scenario analysis is also undertaken as part of the

annual update of the Recovery Plan to demonstrate how the invocation of actions defined within the plan recovers

liquidity adequacy and risk appetite compliance in a timely manner.

g) An explanation of how stress testing is used

Stress testing is key as it is used to demonstrate the adequacy of current and planned liquidity resources, and also

the effectiveness of the Recovery Plan. Weekly stress testing is performed to ensure compliance against risk

appetite and additional monthly stress and scenario tests are performed across a wide range of situations to

assess the impact of a particular stress scenario occurring.

The ILAAP defines a series of internally developed stress scenarios, which assess the impact of a range of

scenarios of differing severities. These scenarios, which measures survival to the Board's minimum risk appetite,

include 90-day idiosyncratic, market-wide, and combined stresses. These scenarios, along with the regulatory LCR

scenario (30-day horizon), are run on a weekly basis to reflect the latest business forecasts and can be run daily if

required, such as if the Group were in a stress.

h) A declaration approved by the management body on the adequacy of liquidity risk management arrangements

The Group's prudent liquidity and funding risk profile, as demonstrated through the internal assessment of liquidity

adequacy and stress testing undertaken for the ILAAP, is commensurate for our low risk business model.

The ILAAP outlines the governance framework and the systems and controls used for managing liquidity risk and

how we prove to ourselves and the regulator that we hold adequate liquidity for our risks. The Group demonstrates

through the ILAAP and its liquidity and funding risk appetites, which are approved annually by the Board, that it

satisfies the Overall Liquidity Adequacy Rule (OLAR).

Skipton Building Society | Pillar 3 Disclosures 31 December 2025

i) A concise liquidity risk statement approved by the management body

The Group’s liquidity and funding risk appetites and management framework ensure that sufficient liquidity and

contingent resources are maintained at all times to meet current and future obligations, including under stress.

The Group meets the minimum 100% LCR and NSFR requirements, as shown in UK LIQ1 and UK LIQ2. Internal

liquidity appetites ensure adequate buffers to support forecast needs and maintain a minimum survival period

aligned to Recovery Plan actions and the thresholds required to avoid failure or resolution. Funding composition

and tenor are managed with the Board’s funding risk appetite, which sets limits to avoid reliance on concentrated

or unstable funding sources and to control refinancing risk.

Skipton Building Society | Pillar 3 Disclosures 31 December 2025

8.2

UK LIQ1 – Quantitative information of LCR

The template below shows the Group’s breakdown of the components used to calculate the LCR. Percentages may not sum up precisely due to rounding of quarterly averages.

Total unweighted value (average)

Total weighted value (average)

UK 1a

Quarter ending on (DD Month YY)

31 Dec 25

30 Sep 25

30 Jun 25

31 Mar 25

31 Dec 25

30 Sep 25

30 Jun 25

31 Mar 25

UK 1b

Number of data points used in the calculation of averages

£m

HIGH-QUALITY LIQUID ASSETS

Total high-quality liquid assets (HQLA)

5,702.4

5,906.6

6,012.7

6,102.2

CASH - OUTFLOWS

Retail deposits and deposits from small business customers, of

which:

31,239.6

30,677.7

30,150.0

29,624.6

1,883.2

1,919.3

1,936.9

1,961.3

Stable deposits

17,067.8

16,026.2

15,168.0

14,383.8

853.4

801.3

758.4

719.2

Less stable deposits

7,648.1

8,127.3

8,397.2

8,664.2

988.9

1,078.9

1,138.9

1,196.6

Unsecured wholesale funding

253.9

278.6

296.6

298.5

196.5

216.6

230.4

227.9

Operational deposits (all counterparties) and deposits in networks

of cooperative banks

Non-operational deposits (all counterparties)

213.2

225.5

237.7

240.9

155.8

163.5

171.5

170.3

Unsecured debt

40.7

53.1

58.9

57.6

40.7

53.1

58.9

57.6

Secured wholesale funding

Additional requirements

497.5

510.7

617.6

723.6

497.5

510.7

617.6

723.6

Outflows related to derivative exposures and other collateral

requirements

406.1

428.1

539.4

649.2

406.1

428.1

539.4

649.2

Outflows related to loss of funding on debt products

Credit and liquidity facilities

91.4

82.6

78.2

74.4

91.4

82.6

78.2

74.4

Other contractual funding obligations

30.5

27.6

24.6

22.3

Other contingent funding obligations

1,985.2

1,899.2

1,778.2

1,710.5

694.8

664.7

622.4

598.7

TOTAL CASH OUTFLOWS

3,272.0

3,311.3

3,407.3

3,511.5

CASH - INFLOWS

Secured lending (e.g. reverse repos)

Inflows from fully performing exposures

231.5

228.4

224.2

220.2

191.2

188.4

184.5

180.6

Other cash inflows

21.2

22.7

67.8

66.4

21.2

22.7

67.8

66.4

TOTAL CASH INFLOWS

252.7

251.1

292.0

286.6

212.4

211.1

252.3

247.0

UK-20a

Fully exempt inflows

UK-20b

Inflows subject to 90% cap

UK-20c

Inflows subject to 75% cap

252.7

251.1

292.0

286.6

212.4

211.1

252.3

247.0

TOTAL ADJUSTED VALUE

UK-21

LIQUIDITY BUFFER

5,702.4

5,906.6

6,012.7

6,102.2

TOTAL NET CASH OUTFLOWS

3,059.6

3,100.2

3,155.0

3,264.5

LIQUIDITY COVERAGE RATIO (%)

186.7

190.8

191.0

187.4

Skipton Building Society | Pillar 3 Disclosures 31 December 2025

8.3

UK LIQB – Qualitative information on LCR, which complements template UK LIQ1

(a) The main drivers of LCR results and the evolution of the contribution of inputs to the LCR’s calculation over

time

The LCR, which is prepared in accordance with the PRA Rulebook, aims to ensure that the Group holds sufficient

HQLA to survive a period of liquidity stress lasting 30 calendar days.

The Group LCR is driven by the size of the HQLA buffer, stressed retail outflows, mortgages which have been

offered but are yet to complete, wholesale funding maturities and potential stressed collateral outflows. Given the

Society is predominantly funded by deposits, withdrawals by retail customers continue to be a main factor affecting

net outflow LCR.

(b) Explanations on the changes in the LCR over time

Overall, the LCR has reduced slightly in the quarter, with an average of 186.7% as of 31 December 2025 (30

September 2025: 190.8%), with the main reason for the reduction being the repayment of a senior non preferred

issuance maturity in the quarter. The Group has seen continued growth in customer deposits which has supported

new mortgage lending, including greater commitments to support more customers to own their own homes. These

increased mortgage commitments result in higher potential outflows under the LCR calculation.

The Group’s funding position is predominantly supported by its retail customer deposit base, which has historically

provided a highly stable source of funding and aligns with the Society’s strategy as a mutual organisation.

The Group also raises both unsecured and secured wholesale funding to diversify funding sources and to support

the Group’s liquidity position. Sources of funding include deposits, certificates of deposits, medium-term notes,

capital, drawings from the Bank of England's Sterling Monetary Framework facilities, repos, covered bonds and

Residential Mortgage Backed Securities (RMBS).

Funding concentration by counterparty, currency and tenor is monitored on an ongoing basis as part of the Group's

internal liquidity and funding risk management frameworks.

(d) High-level description of the composition of the Group’s liquidity buffer

The Group’s liquidity buffer consists of Level 1 assets. Level 1 assets are primarily held as central bank reserves,

UK government bonds and high-quality supranational debt securities, with a smaller holding of Level 1 eligible

extremely high-quality covered bonds. The liquidity buffer also includes a portfolio of Level 2B assets, which are

high quality UK issued RMBS.

(e) Derivative exposures and potential collateral calls

The Group actively manages its derivative exposures and potential collateral calls, including both due collateral

and excess collateral, with derivative outflows under stress captured under the Historical Look Back Approach

which considers the impact of an adverse market scenario on derivatives. Potential collateral calls due to a

deterioration in the Society’s credit rating are also captured.

(f) Currency mismatch in the LCR

The LCR is calculated on a GBP equivalent basis only as this is the Group's only significant currency.

The currency risk appetite of the Group is low and any wholesale funding issuances denominated in foreign

currency are immediately swapped into GBP. Currency risk is monitored through the internal liquidity and funding

risk management frameworks.

(g) Other items in the LCR calculation that are not captured in the LCR disclosure

We do not consider anything else of material relevance for disclosure.

Skipton Building Society | Pillar 3 Disclosures 31 December 2025

8.4

UK LIQ2 – Net Stable Funding Ratio

The template below sets out the NSFR calculated as the average of the latest and the three previous quarters.

31 December 2025

Unweighted value by residual maturity (average)

Weighted

value

(average)

maturity

< 6 months

6 months

to < 1yr

≥ 1yr

£m

Available stable funding (ASF) Items

Capital items and instruments

2,571.8

Own funds

2,571.8

Other capital instruments

Retail deposits

27,284.0

2,259.2

1,808.8

29,401.2

Stable deposits

18,765.1

1,304.5

1,166.4

20,232.5

Less stable deposits

8,518.9

954.7

642.4

9,168.7

Wholesale funding:

825.4

525.3

3,372.2

3,832.4

Operational deposits

Other wholesale funding

825.4

525.3

3,372.2

3,832.4

Interdependent liabilities

Other liabilities:

15.4

903.8

NSFR derivative liabilities

15.4

All other liabilities and capital instruments not

included in the above categories

903.8

Total available stable funding (ASF)

35,805.4

Required stable funding (RSF) Items

Total high-quality liquid assets (HQLA)

215.0

UK-15a

Assets encumbered for more than 12m in cover

pool

61.1

58.2

3,962.0

3,469.2

Deposits held at other financial institutions for

operational purposes

Performing loans and securities:

330.3

278.6

27,936.3

20,464.6

Performing securities financing transactions

with financial customers collateralised by

Level 1 HQLA subject to 0% haircut

Performing securities financing transactions

with financial customer collateralised by other

assets and loans and advances to financial

institutions

46.2

6.4

11.0

Performing loans to non- financial corporate

clients, loans to retail and small business

customers, and loans to sovereigns, and PSEs,

of which:

9.0

9.6

273.6

227.2

With a risk weight of less than or equal to 35%

under the Basel II Standardised Approach for

credit risk

0.6

0.9

73.1

48.3

Performing residential mortgages, of which:

275.1

269.0

27,656.3

20,226.4

With a risk weight of less than or equal to 35%

under the Basel II Standardised Approach for

credit risk

212.1

207.8

18,778.1

12,587.5

Other loans and securities that are not in

default and do not qualify as HQLA, including

exchange-traded equities and trade finance

on-balance sheet products

Interdependent assets

Other assets:

283.6

2.0

1.6

1,006.2

1,229.3

Physical traded commodities

Assets posted as initial margin for derivative

contracts and contributions to default funds of

CCPs

254.5

216.4

NSFR derivative assets

1.6

NSFR derivative liabilities before deduction of

variation margin posted

27.5

1.4

All other assets not included in the above