Group Highlights
* Profit before tax up 21% to £2,161m.
* Profit before tax and exceptional items up 20% to £2,183m.
* Profit before tax, exceptional items and short-term fluctuations in investment returns, up 22% to £2,244m.
* Underlying earnings per share up 19% to 38.7p.
* Basic earnings per share up 22% to 36.9p.
* Interim dividend up 5% to 10.8p as cover increases in line with dividend policy.
* Group RoE increases to 18.6% (17.2% H1 2003). Group Target RoE 19.1% (17.4% H1 2003). Allowing for the estimated reduction in profit arising from the commencement of household insurance underwriting, Target RoE would have been 19.4%.
* Group net interest margin 168bps; (172bps H2 2003, 177bps full year 2003).
* Loans and advances to customers grow 6% in the half year to £299bn; Group customer deposit balances grow 8% in the half year to £187bn.
* Non-performing assets as a percentage of customer advances 1.74% (1.75% end 2003); closing provisions 0.81% of customer advances (0.79% end 2003).
* Underlying operating income 11% higher at £4,500m; underlying operating expenses 2% higher at £1,750m.
* Cost: income ratio 38.9% (42.1% H1 2003).
* Tier 1 capital ratio 8.1%, total capital ratio 11.7% (7.6% and 11.1% end 2003).
* Target for merger synergies achieved.
