Financial review
| For the year ended 31st December | |||||
|---|---|---|---|---|---|
| 2008 £m |
2007 £m |
2006 £m |
2005 £m |
2004 £ma |
|
| Net interest income | 11,469 | 9,610 | 9,143 | 8,075 | 6,833 |
| Net fee and commission income | 8,407 | 7,708 | 7,177 | 5,705 | 4,847 |
| Principal transactions | 2,009 | 4,975 | 4,576 | 3,179 | 2,514 |
| Net premiums from insurance contracts | 1,090 | 1,011 | 1,060 | 872 | 1,042 |
| Other income | 377 | 188 | 214 | 147 | 131 |
| Total income | 23,352 | 23,492 | 22,170 | 17,978 | 15,367 |
| Net claims and benefits incurred on insurance contracts | (237) | (492) | (575) | (645) | (1,259) |
| Total income net of insurance claims | 23,115 | 23,000 | 21,595 | 17,333 | 14,108 |
| Impairment charges and other credit provisions | (5,419) | (2,795) | (2,154) | (1,571) | (1,093) |
| Net income | 17,696 | 20,205 | 19,441 | 15,762 | 13,015 |
| Operating expenses | (14,366) | (13,199) | (12,674) | (10,527) | (8,536) |
| Share of post-tax results of associates and joint ventures | 14 | 42 | 46 | 45 | 56 |
| Profit before business acquisitions and disposals | 3,344 | 7,048 | 6,813 | 5,280 | 4,535 |
| Profit on disposal of subsidiaries, associates and joint ventures | 327 | 28 | 323 | – | 45 |
| Gains on acquisitions | 2,406 | – | – | – | – |
| Profit before tax | 6,077 | 7,076 | 7,136 | 5,280 | 4,580 |
| Tax | (790) | (1,981) | (1,941) | (1,439) | (1,279) |
| Profit after tax | 5,287 | 5,095 | 5,195 | 3,841 | 3,301 |
| Profit attributable to minority interests | 905 | 678 | 624 | 394 | 47 |
| Profit attributable to equity holders of the parent | 4,382 | 4,417 | 4,571 | 3,447 | 3,254 |
| 5,287 | 5,095 | 5,195 | 3,841 | 3,301 | |
| Selected financial statistics | |||||
| Basic earnings per share | 59.3p | 68.9p | 71.9p | 54.4p | 51.0p |
| Diluted earnings per share | 57.5p | 66.7p | 69.8p | 52.6p | 49.8p |
| Dividends per ordinary share | 11.5p | 34.0p | 31.0p | 26.6p | 24.0p |
| Dividend payout ratio | 19.4% | 49.3% | 43.1% | 48.9% | 47.1% |
| Profit attributable to the equity holders of the parent as a percentage of: | |||||
| average shareholders’ equity | 16.5% | 20.3% | 24.7% | 21.1% | 21.7% |
| average total assets | 0.2% | 0.3% | 0.4% | 0.4% | 0.5% |
| Cost:income ratio | 62% | 57% | 59% | 61% | 61% |
| Cost:net income ratio | 81% | 65% | 65% | 67% | 66% |
| Average United States Dollar exchange rate used in the accounts | 1.86 | 2.00 | 1.84 | 1.82 | 1.83 |
| Average Euro exchange rate used in preparing the accounts | 1.26 | 1.46 | 1.47 | 1.46 | 1.47 |
| Average Rand exchange rate used in preparing the accounts | 15.17 | 14.11 | 12.47 | 11.57 | 11.83 |
The financial information above is extracted from the published accounts for the last three years. This information should be read together with, and is qualified by reference to, the accounts and notes included in this report.
