Summary consolidated income statementfor the year ended 31 December 2006
The income statement set out below shows amortisation of purchased intangible assets, integration costs and net gain on sale of strategic investments and subsidiaries separately. In the statutory summary consolidated income statement, these items are included in total income and operating expenses, as appropriate.
| 2006 £m | 2005 £m | |
| Net interest income | 10,596 | 9,918 |
| Non-interest income (excluding net insurance premium income) | 11,433 | 9,872 |
| Net insurance premium income | 5,973 | 5,779 |
| Non-interest income | 17,406 | 15,651 |
| Total income | 28,002 | 25,569 |
| Operating expenses | 12,252 | 11,298 |
| Profit before other operating charges | 15,750 | 14,271 |
| Insurance net claims | 4,458 | 4,313 |
| Operating profit before impairment losses | 11,292 | 9,958 |
| Impairment losses | 1,878 | 1,707 |
| Profit before tax, amortisation of purchased intangible assets, integration costs and net gain on sale of strategic investments and subsidiaries | 9,414 | 8,251 |
| Amortisation of purchased intangible assets | 94 | 97 |
| Integration costs* | 134 | 458 |
| Net gain on sale of strategic investments and subsidiaries | — | 240 |
| Profit before tax | 9,186 | 7,936 |
| Tax | 2,689 | 2,378 |
| Profit after tax | 6,497 | 5,558 |
| Minority interests | 104 | 57 |
| Preference dividends | 191 | 109 |
| Profit attributable to ordinary shareholders | 6,202 | 5,392 |
| Basic earnings per ordinary share | 194.7p | 169.4p |
| Adjusted earnings per ordinary share | 200.0p | 175.9p |
* Integration costs comprise expenditure incurred in respect of cost reduction and revenue enhancement targets set in connection with the various acquisitions made by the Group.
2007