Consolidated income statement

For the year ended 31st December
	Notes	2008 £m	2007 £m	2006 £m
Continuing operations
Interest income	2	28,010	25,308	21,805
Interest expense	2	(16,541)	(15,698)	(12,662)
Net interest income		11,469	9,610	9,143
Fee and commission income	3	9,489	8,678	8,005
Fee and commission expense	3	(1,082)	(970)	(828)
Net fee and commission income		8,407	7,708	7,177
Net trading income	4	1,329	3,759	3,614
Net investment income	4	680	1,216	962
Principal transactions		2,009	4,975	4,576
Net premiums from insurance contracts	5	1,090	1,011	1,060
Other income	6	377	188	214
Total income		23,352	23,492	22,170
Net claims and benefits incurred on insurance contracts	5	(237)	(492)	(575)
Total income net of insurance claims		23,115	23,000	21,595
Impairment charges and other credit provisions	7	(5,419)	(2,795)	(2,154)
Net income		17,696	20,205	19,441
Staff costs	8	(7,779)	(8,405)	(8,169)
Administration and general expenses	9	(5,666)	(4,141)	(3,914)
Depreciation of property, plant and equipment	23	(630)	(467)	(455)
Amortisation of intangible assets	22	(291)	(186)	(136)
Operating expenses		(14,366)	(13,199)	(12,674)
Share of post-tax results of associates and joint ventures	20	14	42	46
Profit on disposal of subsidiaries, associates and joint ventures	38	327	28	323
Gains on acquisitions	39	2,406	–	–
Profit before tax		6,077	7,076	7,136
Tax	10	(790)	(1,981)	(1,941)
Profit after tax		5,287	5,095	5,195
Profit attributable to minority interests	33	905	678	624
Profit attributable to equity holders of the parent		4,382	4,417	4,571
		5,287	5,095	5,195

		p	p	p
Earnings per share
Basic earnings per share	11	59.3	68.9	71.9
Diluted earnings per share	11	57.5	66.7	69.8

Interim dividend per ordinary share		11.5	11.50	10.50
Proposed final dividend per ordinary share	1	–	22.50	20.50

The Board of Directors approved the accounts on 5th March 2009.

The accompanying notes form an integral part of the Consolidated accounts.