Five Year Summary

For the years ended 31 December


	2004 £m	2003 £m	2002 ⁽¹⁾ £m	2001 ⁽²⁾ £m	2000 £m

Profit and Loss Account
Net operating income ⁽³⁾	10,227	8,946	7,546	6,507	6,244
Operating expenses ⁽³⁾	4,144	3,968	3,609	3,331	2,858
Provisions for bad and doubtful debts	1,201	1,025	832	608	471
Profit before tax and exceptional items	4,770	3,885	3,062	2,515	2,925

Balance Sheet
Total assets (excluding long term assurance assets attributable to policyholders)	393,318	364,599	317,732	274,470	235,085
Total assets	442,881	408,413	355,030	312,071	266,143
Subordinated liabilities	14,633	12,882	9,127	7,923	5,985
Share capital	1,381	1,363	1,346	1,292	1,278
Reserves	16,242	14,005	12,373	10,121	9,260

	%	%	%	%	%

Performance Ratios
Post tax return on mean equity ^{(3) (4)}	19.7	17.7	15.9	15.1	19.5
Group Target post-tax return on mean equity ^{(3) (4) (5)}	19.5	17.7	17.5	16.8
Cost:income ratio ⁽⁶⁾	37.9	41.6	45.2	49.2	43.3
Net interest margin ⁽⁷⁾	1.70	1.77	1.83	1.87	1.95
	per ordinary share

	pence	pence	pence	pence	pence

Shareholder Information
Dividends	32.95	30.9	29.4	28.0	22.4
Underlying earnings excluding exceptional items and goodwill amortisation	84.3	68.5	56.1	47.7	55.6

⁽¹⁾ 2002 numbers are restated from those that were published in the 2002 Annual Report and Accounts to reflect the implementation from 2003 onwards of UITF37 “Purchases and sales of own shares” and UITF38 “Accounting for ESOP trusts”. Prior years are not restated as the effect is not material.

⁽²⁾ 2001 numbers are restated from those that were published in the 2001 Annual Report and Accounts to reflect the use from 2002 onwards of unsmoothed asset values for the purposes of determining the income from long term assurance business, the implementation of FRS19 “Deferred Tax” and UITF33 “Obligations in capital instruments”. 2000 is presented on the previous basis.

⁽³⁾ Excluding exceptional items.

⁽⁴⁾ From 2002 onwards, mean equity is calculated on a monthly average basis. Prior to this date, mean equity was calculated on a simple average basis.

⁽⁵⁾ Excluding short term fluctuations in investment returns and changes to economic assumptions in our investment businesses.

⁽⁶⁾ The cost:income ratio is calculated excluding exceptional items, goodwill amortisation and after netting operating lease depreciation, amounts written off fixed asset investments and general insurance claims against operating income.

⁽⁷⁾ The net interest margin from 2001 onwards is calculated excluding trading assets and from 2002 onwards is calculated before the deduction of average loans and advances subject to non-returnable finance.