Balance sheet at 31 December 2006

	2006 £m	2005 £m
Assets
Cash and balances at central banks	6,121	4,759
Treasury and other eligible bills	5,491	5,538
Loans and advances to banks	82,606	70,587
Loans and advances to customers	466,893	417,226
Debt securities	127,251	120,965
Equity shares	13,504	9,301
Intangible assets	18,904	19,932
Property, plant and equipment	18,420	18,053
Settlement balances	7,425	6,005
Derivatives	116,681	95,663
Prepayments, accrued income and other assets	8,136	8,798
Total assets	871,432	776,827

Liabilities
Deposits by banks	132,143	110,407
Customer accounts	384,222	342,867
Debt securities in issue	85,963	90,420
Settlement balances and short positions	49,476	43,988
Derivatives	118,112	96,438
Accruals, deferred income and other liabilities	15,660	14,247
Retirement benefit liabilities	1,992	3,735
Deferred taxation	3,264	1,695
Insurance liabilities	7,456	7,212
Subordinated liabilities	27,654	28,274
Total liabilities	825,942	739,283
Equity
Minority interests	5,263	2,109
Shareholders' equity
Called up share capital	815	826
Reserves	39,412	34,609
Total equity	45,490	37,544
Total liabilities and equity	871,432	776,827

Memorandum items
Contingent liabilities and commitments	257,834	225,197

At 31 December 2006, provisions for loan impairment amounted to £3,935 million (2005 – £3,887 million).

The summary financial statement on pages 53 to 57 was approved by the Board of directors on 28 February 2007.

Sir Tom McKillop Chairman

Sir Fred Goodwin Group Chief Executive

Guy Whittaker Group Finance Director