Analysis of change in net interest income – volume and rate analysis
Volume and rate variances have been calculated based on movements in average balances over the period and changes in interest rates on average interest-earning assets and average interest-bearing liabilities. Changes due to a combination of volume and rate are allocated pro rata to volume and rate movements.
| 2007 over 2006 | 2006 over 2005 | |||||
|---|---|---|---|---|---|---|
| Increase/(decrease) due to changes in: | Increase/(decrease) due to changes in: | |||||
| Average volume £m |
Average rate £m |
Net change £m |
Average volume £m |
Average rate £m |
Net change £m |
|
| Interest-earning assets | ||||||
| Treasury bills and other eligible bills | ||||||
| UK | (76) | 2 | (74) | (48) | – | (48) |
| Overseas | 2 | – | 2 | – | 1 | 1 |
| Loans and advances to banks | ||||||
| UK | 245 | 86 | 331 | 22 | 26 | 48 |
| Overseas | 279 | 65 | 344 | (72) | 46 | (26) |
| Loans and advances to customers | ||||||
| UK | 2,000 | 1,337 | 3,337 | 1,681 | 13 | 1,694 |
| Overseas | 3,769 | 344 | 4,113 | 886 | 884 | 1,770 |
| Debt securities | ||||||
| UK | 56 | 180 | 236 | (115) | 80 | (35) |
| Overseas | 516 | 47 | 563 | (23) | 80 | 57 |
| Total interest receivable of the banking business | ||||||
| UK | 2,225 | 1,605 | 3,830 | 1,540 | 119 | 1,659 |
| Overseas | 4,566 | 456 | 5,022 | 791 | 1,011 | 1,802 |
| 6,791 | 2,061 | 8,852 | 2,331 | 1,130 | 3,461 | |
| Interest-bearing liabilities | ||||||
| Deposits by banks | ||||||
| UK | (706) | (135) | (841) | (44) | (157) | (201) |
| Overseas | (237) | 48 | (189) | (49) | (288) | (337) |
| Customer accounts: demand deposits | ||||||
| UK | (227) | (641) | (868) | (353) | (19) | (372) |
| Overseas | (593) | (1) | (594) | 17 | (159) | (142) |
| Customer accounts: savings deposits | ||||||
| UK | (206) | (394) | (600) | (133) | (147) | (280) |
| Overseas | (318) | (158) | (476) | 37 | (185) | (148) |
| Customer accounts: other time deposits | ||||||
| UK | (950) | (445) | (1,395) | (296) | (183) | (479) |
| Overseas | (485) | (162) | (647) | (164) | (493) | (657) |
| Debt securities in issue | ||||||
| UK | (584) | (328) | (912) | (133) | (466) | (599) |
| Overseas | (1,263) | (311) | (1,574) | (209) | (234) | (443) |
| Subordinated liabilities | ||||||
| UK | 13 | (94) | (81) | (3) | (106) | (109) |
| Overseas | (111) | 29 | (82) | – | (6) | (6) |
| Internal funding of trading business | ||||||
| UK | 1,129 | 285 | 1,414 | 231 | 537 | 768 |
| Overseas | 109 | 5 | 114 | 81 | 87 | 168 |
| Total interest payable of the banking business | ||||||
| UK | (1,531) | (1,752) | (3,283) | (731) | (541) | (1,272) |
| Overseas | (2,898) | (550) | (3,448) | (287) | (1,278) | (1,565) |
| (4,429) | (2,302) | (6,731) | (1,018) | (1,819) | (2,837) | |
| Movement in net interest income | ||||||
| UK | 694 | (147) | 547 | 809 | (422) | 387 |
| Overseas | 1,668 | (94) | 1,574 | 504 | (267) | 237 |
| 2,362 | (241) | 2,121 | 1,313 | (689) | 624 | |
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