Just Annual Report and Accounts 2023

206 | Just Group PLC | Annual Report and Accounts 2023

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued

28. LOANS AND BORROWINGS continued Movements in borrowings during the year were as follows:

Year ended 31 December 2023 £m

Year ended 31 December 2022 £m

699

At 1 January

774

(48) (24) (72)

Coupon payments

(44) (76)

Repayment of Just Group plc Tier 2 subordinated debt

Financing cash flows

(120)

10 48

Transfer brought forward interest from accruals Interest charged at the effective interest rate

–

Amortisation of issue costs Non-cash movements

At 31 December

686

699

During the year the Company redeemed a further £24m of the 2026 9% Tier 2 subordinated debt (2022: £76m). A loss of £2m (2022: £5m) was recognised on redemption.

29. OTHER FINANCIAL LIABILITIES

31 December 2022 (restated) £m

31 December 2023 £m

2,487 2,569

Derivative financial liabilities

3,046

Repurchase obligation

–

532

Obligations for repayment of cash collateral received

623

Total

5,588

3,669

Derivative financial liabilities are classified as mandatorily FVTPL and are analysed in note 30 below. The restatement of Other financial liabilities including the treatment of reinsurance deposit-back monies under IFRS 17 and commitments for future investments is explained in note 1.2. As described in note 19, the Group has entered into a number of repurchase agreements whereby a fixed amount is repayable at a certain date. At the inception of these agreements they had durations of between 12 and 21 months. The repurchase agreements are measured at amortised cost in the financial statements. The fair value of these agreements is £2,569m (2022 not applicable). Obligations to repay cash collateral is measured at amortised cost and there is no material difference between the fair value and amortised cost of the instruments. 30. DERIVATIVE FINANCIAL INSTRUMENTS The Group uses various derivative financial instruments to manage its exposure to interest rates, counterparty credit risk, inflation and foreign exchange risk.

31 December 2022 (restated) Liability fair value £m

31 December 2023

Asset fair value £m

Liability fair value £m

Notional amount £m

Asset Fair value £m

Notional Amount £m

Derivatives

515

857

16,607 26,995

Foreign currency swaps

413

1,320 1,580

12,663 13,648

1,435

1,512

Interest rate swaps Inflation swaps Forward swaps Total return swaps

1,408

409

102

5,681

438

80 10 14 19

4,293

4 – – –

1 –

630

546

–

380 100

Put options on property index (NNEG hedges)

– – –

705

1 –

Interest rate options

–

Investment asset derivatives

149

Total

2,377

2,487

50,393

2,277

3,046

32,004

As explained in note 1.2.2, derivative liabilities are restated by £23m in respect of future funding commitments. The Group’s derivative financial instruments are not designated as hedging instruments and changes in their fair value are included in profit or loss. All over-the-counter derivative transactions are conducted under standardised International Swaps and Derivatives Association Inc. master agreements, and the Group has collateral agreements between the individual Group entities and relevant counterparties in place under each of these market master agreements.