For the year ended 31st December
| 2007 | 2006 | 2005 | ||||||||||||
| Notes | £m | £m | £m | |||||||||||
| Continuing operations | ||||||||||||||
| Interest income | a | 25,308 | 21,805 | 17,232 | ||||||||||
| Interest expense | a | (15,707) | (12,662) | (9,157) | ||||||||||
| Net interest income | 9,601 | 9,143 | 8,075 | |||||||||||
| Fee and commission income | b | 8,682 | 8,005 | 6,430 | ||||||||||
| Fee and commission expense | b | (970) | (828) | (725) | ||||||||||
| Net fee and commission income | 7,712 | 7,177 | 5,705 | |||||||||||
| Net trading income | c | 3,759 | 3,632 | 2,321 | ||||||||||
| Net investment income | c | 1,216 | 962 | 858 | ||||||||||
| Principal transactions | 4,975 | 4,594 | 3,179 | |||||||||||
| Net premiums from insurance contracts | 5 | 1,011 | 1,060 | 872 | ||||||||||
| Other income | d | 224 | 257 | 178 | ||||||||||
| Total income | 23,523 | 22,231 | 18,009 | |||||||||||
| Net claims and benefits incurred on insurance contracts | 5 | (492) | (575) | (645) | ||||||||||
| Total income net of insurance claims | 23,031 | 21,656 | 17,364 | |||||||||||
| Impairment charges | 7 | (2,795) | (2,154) | (1,571) | ||||||||||
| Net income | 20,236 | 19,502 | 15,793 | |||||||||||
| Staff costs | 8 | (8,405) | (8,169) | (6,318) | ||||||||||
| Administration and general expenses | 9 | (4,141) | (3,914) | (3,768) | ||||||||||
| Depreciation of property, plant and equipment | 23 | (467) | (455) | (362) | ||||||||||
| Amortisation of intangible assets | 22 | (186) | (136) | (79) | ||||||||||
| Operating expenses | (13,199) | (12,674) | (10,527) | |||||||||||
| Share of post-tax results of associates and joint ventures | 20 | 42 | 46 | 45 | ||||||||||
| Profit on disposal of subsidiaries, associates and joint ventures | 28 | 323 | – | |||||||||||
| Profit before tax | 7,107 | 7,197 | 5,311 | |||||||||||
| Tax | 10 | (1,981) | (1,941) | (1,439) | ||||||||||
| Profit after tax | 5,126 | 5,256 | 3,872 | |||||||||||
| Profit attributable to minority interests | 377 | 342 | 177 | |||||||||||
| Profit attributable to equity holders | 4,749 | 4,914 | 3,695 | |||||||||||
| 5,126 | 5,256 | 3,872 | ||||||||||||
The note numbers refer to the notes on pages 182 to 265, whereas the note letters refer to those on pages 270 to 278.
As at 31st December
| 2007 | 2006 | |||||||||||||
| Notes | £m | £m | ||||||||||||
| Assets | ||||||||||||||
| Cash and balances at central banks | 5,801 | 6,795 | ||||||||||||
| Items in the course of collection from other banks | 1,836 | 2,408 | ||||||||||||
| Trading portfolio assets | e | 193,726 | 177,884 | |||||||||||
| Financial assets designated at fair value: | ||||||||||||||
| – held on own account | 13 | 56,629 | 31,799 | |||||||||||
| – held in respect of linked liabilities to customers under investment contracts | 13 | 90,851 | 82,798 | |||||||||||
| Derivative financial instruments | 14 | 248,088 | 138,353 | |||||||||||
| Loans and advances to banks | 15 | 40,120 | 30,926 | |||||||||||
| Loans and advances to customers | 15 | 345,398 | 282,300 | |||||||||||
| Available for sale financial investments | f | 43,256 | 51,952 | |||||||||||
| Reverse repurchase agreements and cash collateral on securities borrowed | 17 | 183,075 | 174,090 | |||||||||||
| Other assets | g | 5,153 | 5,850 | |||||||||||
| Current tax assets | 19 | 518 | 557 | |||||||||||
| Investments in associates and joint ventures | 20 | 377 | 228 | |||||||||||
| Goodwill | 21 | 7,014 | 6,092 | |||||||||||
| Intangible assets | 22 | 1,282 | 1,215 | |||||||||||
| Property, plant and equipment | 23 | 2,996 | 2,492 | |||||||||||
| Deferred tax assets | 19 | 1,463 | 764 | |||||||||||
| Total assets | 1,227,583 | 996,503 | ||||||||||||
| Liabilities | ||||||||||||||
| Deposits from banks | 90,546 | 79,562 | ||||||||||||
| Items in the course of collection due to other banks | 1,792 | 2,221 | ||||||||||||
| Customer accounts | 295,849 | 256,754 | ||||||||||||
| Trading portfolio liabilities | e | 65,402 | 71,874 | |||||||||||
| Financial liabilities designated at fair value | 24 | 74,489 | 53,987 | |||||||||||
| Liabilities to customers under investment contracts | 13 | 92,639 | 84,637 | |||||||||||
| Derivative financial instruments | 14 | 248,288 | 140,697 | |||||||||||
| Debt securities in issue | 120,228 | 111,137 | ||||||||||||
| Repurchase agreements and cash collateral on securities lent | 17 | 169,429 | 136,956 | |||||||||||
| Other liabilities | h | 10,514 | 10,337 | |||||||||||
| Current tax liabilities | 19 | 1,311 | 1,020 | |||||||||||
| Insurance contract liabilities, including unit-linked liabilities | 26 | 3,903 | 3,878 | |||||||||||
| Subordinated liabilities | 27 | 18,150 | 13,786 | |||||||||||
| Deferred tax liabilities | 19 | 855 | 282 | |||||||||||
| Provisions | 28 | 830 | 462 | |||||||||||
| Retirement benefit liabilities | 30 | 1,537 | 1,807 | |||||||||||
| Total liabilities | 1,195,762 | 969,397 | ||||||||||||
| Shareholders’ equity | ||||||||||||||
| Called up share capital | i | 2,382 | 2,363 | |||||||||||
| Share premium account | i | 10,751 | 9,452 | |||||||||||
| Other reserves | j | (170) | (484) | |||||||||||
| Other shareholders’ equity | k | 2,687 | 2,534 | |||||||||||
| Retained earnings | j | 14,222 | 11,556 | |||||||||||
| Shareholders’ equity excluding minority interests | 29,872 | 25,421 | ||||||||||||
| Minority interests | l | 1,949 | 1,685 | |||||||||||
| Total shareholders’ equity | 31,821 | 27,106 | ||||||||||||
| Total liabilities and shareholders’ equity | 1,227,583 | 996,503 | ||||||||||||
The note numbers refer to the notes on pages 182 to 265, whereas the note letters refer to those on pages 270 to 278.
These financial statements have been approved for issue by the Board of Directors on 7th March 2008.