Final Results

Consolidated Income Statement

for the year ended 31st March 2008

2008

2007

 £m 

 £m 

Interest receivable and similar income

538.6 

412.7 

Interest expense and similar charges

(466.0)

(344.8)

Net interest receivable

72.6 

67.9 

Fees and commissions receivable

20.1 

19.9 

Fees and commissions payable

(3.2)

(2.7)

Total gains on investment properties

5.9 

6.3 

Impairment of goodwill

(2.4)

-

Other operating income

9.6 

8.6 

Total operating income

102.6 

100.0 

Administrative expenses

(51.7)

(47.7)

Depreciation and amortisation

(5.6)

(5.6)

Impairment losses on loans and advances

(6.4)

(1.3)

Provisions for liabilities

2.2 

(1.3)

Profit before tax

41.1 

44.1 

Tax expense

(12.8)

(11.3)

Profit for the year attributable to members of the Society

28.3 

32.8 

Consolidated Statements of Recognised Income and Expense

for the year ended 31st March 2008

2008

2007

 £m 

 £m 

Available for sale investments:

Valuation loss taken to equity

(6.2)

(2.0)

Actuarial loss on retirement benefit obligations

(2.8)

(1.8)

Cash flow hedge gains/(losses) taken to equity

0.4 

(0.1)

Tax on items taken directly to equity

2.3 

1.1 

Net cost recognised directly in equity

(6.3)

(2.8)

Profit for the financial year

28.3 

32.8 

Total recognised income and expense for the period

22.0 

30.0 

Group Balance Sheet

at 31st March 2008

2008

2007

 £m 

 £m 

Assets

Cash and balances with the Bank of England

10.6

11.7 

Loans and advances to credit institutions

1,187.2 

207.2 

Investment securities - available-for-sale

914.1 

1,243.8 

Derivative financial instruments

32.6 

33.4 

Loans and advances to customers

7,279.3 

6,654.8 

Intangible assets

11.5 

13.4 

Investment properties

124.1 

114.2 

Property, plant and equipment

21.5 

22.3 

Deferred tax assets

10.8 

10.6 

Trade and other receivables

9.8 

7.8 

Total Assets

9,601.5 

8,319.2 

Liabilities

Shares

5,523.9 

4,521.2 

Amounts due to credit institutions

525.1 

287.7 

Amounts due to other customers

1,442.7 

870.0 

Derivative financial instruments

19.9 

14.3 

Debt securities in issue

1,442.8 

2,034.1 

Current tax liabilities

5.3 

2.5 

Deferred tax liabilities

8.3 

8.4 

Trade and other payables

35.7 

32.3 

Provisions for liabilities

0.8 

3.3 

Subordinated debt

188.1 

161.1 

Subscribed capital

74.9 

72.9 

Retirement benefit obligations

5.1 

4.5 

Total Liabilities

9,272.6 

8,012.3 

Equity

General reserves

327.9 

301.7 

Revaluation reserve

6.1 

6.1 

Available for sale reserve

 (5.3)

 (0.8)

Cashflow reserve

0.2 

 (0.1)

Total equity attributable to members

328.9 

306.9 

Total Liabilities and Equity

9,601.5 

8,319.2 

Consolidated Cash Flow Statement

for the year ended 31st March 2008

2008

2007

 £m 

 £m 

Net cash inflow/(outflow) from operating activities (see below )

1,519.0 

(69.1)

Tax paid

(8.1)

(12.1)

Cash flows from investing activities

Purchase of investment securities

(2,949.1)

(3,725.0)

Proceeds from disposal of investment securities

3,172.5 

3,501.6 

Purchase of property, plant and equipment and intangible assets

(3.0)

(3.2)

Proceeds from disposal of property, plant and equipment

0.1 

0.2 

Purchase of investment property

(6.4)

(14.2)

Proceeds from disposal of investment properties

2.4 

2.8 

Purchase of mortgage portfolios

-

(166.8)

Net cash flows from investing activities

216.5 

(404.6)

Cash flows from financing activities

Issue of subordinated liabilities

25.4 

50.3 

Interest paid on subordinated liabilities

(12.1)

(7.3)

Interest paid on subscribed capital

(4.6)

(4.6)

Issue of mortgage backed loan notes

-

643.8 

Repayment of mortgage backed loan notes

(861.5)

(65.1)

Net cash flows from financing activities

(852.8)

617.1 

Net increase in cash

874.6 

131.3 

Cash and cash equivalents at beginning of year

769.1 

637.8 

Cash and cash equivalents at end of year

1,643.7 

769.1