2007 Financial Summary
Group Income Statement for the year ended 31 December 2007
|
|
2007
£m |
2006
£m |
|
Net interest income |
188.2 |
164.8 |
|
Net (losses)/gains from fair value volatility |
(43.6) |
13.6 |
|
Net losses arising on disposal of available-for-sale assets |
(1.8) |
- |
|
Other income and charges |
40.9 |
32.4 |
|
Total income |
183.7 |
210.8 |
|
Administrative expenses |
(120.2) |
(116.9) |
|
|
63.5 |
93.9 |
| Provisions* |
(8.9) |
(16.0) |
| Profit before tax |
54.6 |
77.9 |
|
Taxation |
(15.4) |
(24.2) |
|
Profit for the financial year |
39.2 |
53.7 |
*"Provisions" encompasses provisions for impairment of loans and advances and debt securities and provisions for liabilities.
Group Statement of recognised income and expense for the year ended 31 December 2007
|
|
2007
£m |
2006
£m |
|
Available-for-sale investments: |
|
|
|
Valuation losses taken to equity |
(17.2) |
(18.1) |
| Cash Flow hedges: |
|
|
|
(losses)/gains taken to equity |
(8.1) |
2.8 |
| Actuarial gain on retirement benefit obligations |
33.8 |
22.0 |
| Tax on items taken directly to or transferred from equity |
(5.0) |
(1.0) |
| Net income not recognised directly in the income statement |
3.5 |
5.7 |
|
Net profit for the financial year |
39.2 |
53.7 |
|
Total recognised income and expense for the year |
42.7 |
59.4 |
Group Balance Sheet as at 31 December 2007
|
|
2007
£m |
2006
£m |
ASSETS |
|
|
|
Liquid assets |
4,721.9 |
4,072.0 |
|
Mortgages |
15,362.0 |
13,269.0 |
|
Derivative financial instruments |
294.9 |
95.4 |
|
Other assets |
119.5 |
129.2 |
|
Total Assets |
20,498.3 |
17,565.6 |
LIABILITIES |
|
|
|
Shares |
12,448.2 |
11,286.3 |
|
Borrowings |
6,640.3 |
4,930.9 |
|
Derivative financial instruments |
94.0 |
42.0 |
|
Other liabilities |
111.1 |
144.9 |
|
Subordinated liabilities |
105.0 |
105.3 |
|
Subscribed capital |
146.0 |
145.2 |
|
Reserves |
953.7 |
911.0 |
|
Total Liabilities |
20,498.3 |
17,565.6 |
Group cash flow statement for the year ended 31 December 2007
|
|
2007
£m |
2006
£m |
|
Net cash flows from operating activities |
160.5 |
(413.6) |
| Net cash flows from investing activities |
516.5 |
(389.2) |
| Net cash flows from financing activities |
526.7 |
598.8 |
| Taxation paid |
(14.3) |
(13.9) |
| Net increase/(decrease) in cash and cash equivalents |
1,189.4 |
(217.9) |
| Cash and cash equivalents at start of year |
792.9 |
1,010.8 |
| Cash and cash equivalents at end of year |
1,982.3 |
792.9 |
Analysis of cash and cash equivalents included in the balance sheet
|
|
2007
£m |
2006
£m |
|
Cash and cash equivalents comprise: |
|
|
| Cash and balances with central banks |
434.9 |
36.2 |
| Loans and advances to banks |
756.8 |
167.8 |
| Debt securities |
790.6 |
588.9 |
| Cash and cash equivalents |
1,982.3 |
792.9 |
Key ratios
|
|
2007
% |
2006
% |
|
Group net interest margin |
0.99 |
0.97 |
| Society net interest margin |
0.57 |
0.61 |
| Group management expenses/mean assets |
0.63 |
0.69 |
| Society management expenses/mean assets |
0.56 |
0.65 |
| Group asset growth |
16.7 |
7.8 |
| Society asset growth |
22.7 |
16.6 |
| Group loans and advances growth |
15.1 |
10.4 |
| Member balances growth |
10.3 |
10.6 |
| Liquidity ratio |
24.7 |
25.1 |
| Funding ratio |
32.3 |
30.4 |
| Gross capital ratio |
6.3 |
7.2 |
| Free capital ratio |
5.9 |
6.6 |
| Solvency ratio* |
11.8 |
14.9 |
*The fall in 2007 reflects, in part, transitional changes to the rules governing the calculation. This figure becomes at least 13.5% on 01/01/08 as further changes to the basis of calculation were implemented.
Reconciliation of core operating profits
|
Profit before tax |
2007
£m |
2006
£m |
| Core operating profit |
91.1 |
76.8 |
| Treasury investments |
|
|
| losses from fair value volatility |
(32.5) |
(0.4) |
|
impairment provisions |
(6.9) |
- |
|
(39.4) |
(0.4) |
| Other fair value volatility |
(11.1) |
14.0 |
| Other non-recurring items |
14.0 |
(12.5) |
| Profit before tax |
54.6 |
77.9 |
|
