The Group only measures loans and advances and other financial investments at amortised cost if both of the following conditions are met:

• The financial asset is held within a business model with the objective to hold the financial assets in order to collect contractual cash flows;

• The contractual terms of the financial asset give rise, on specified dates, to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

Loans and advances to customers are non-derivative financial assets with fixed or determinable payments and are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, loans and receivables are measured at amortised cost using the effective interest method.