Average balance sheet and related interest

  2007 2006
  Average
balance
£m		 Interest
£m		 Rate
%		 Average
balance
£m		 Interest
£m		 Rate
%
Assets            
Treasury bills and other eligible bills – UK 357 16 4.48 2,059 90 4.37
                                                          – Overseas 131 5 3.82 70 3 4.29
Loans and advances to banks – UK 20,999 1,028 4.90 15,850 697 4.40
                                                  – Overseas 13,795 626 4.54 7,440 282 3.79
Loans and advances to customers – UK 269,460 18,541 6.88 239,469 15,204 6.35
                                                         – Overseas 183,799 11,090 6.03 121,093 6,977 5.76
Debt securities – UK 14,197 898 6.33 13,143 662 5.04
                         – Overseas 32,420 1,614 4.98 22,012 1,051 4.77
Total interest-earning assets – banking business (2, 3) 535,158 33,818 6.32 421,136 24,966 5.93
                                                       – trading business (4) 313,204     202,408    
Total interest-earning assets 848,362     623,544    
Non-interest-earning assets (2, 3) 311,914     210,358    
Total assets 1,160,276     833,902    
Percentage of assets applicable to overseas operations 38.0%     35.2%    
           
Liabilities and owners' equity            
Deposits by banks – UK 52,951 2,234 4.22 35,998 1,393 3.87
                               – Overseas 34,559 1,417 4.10 28,813 1,228 4.26
Customer accounts: demand deposits – UK 93,764 3,296 3.52 86,207 2,428 2.82
                                                              – Overseas 30,739 1,035 3.37 13,127 441 3.36
Customer accounts: savings deposits – UK 36,334 1,658 4.56 30,933 1,058 3.42
                                                              – Overseas 29,908 1,005 3.36 19,766 529 2.68
Customer accounts: other time deposits – UK 88,702 4,202 4.74 67,806 2,807 4.14
                                                                 – Overseas 47,056 2,283 4.85 36,839 1,636 4.44
Debt securities in issue – UK 67,310 3,582 5.32 55,912 2,670 4.78
                                      – Overseas 50,064 2,650 5.29 25,249 1,076 4.26
Subordinated liabilities – UK 23,752 1,312 5.52 24,008 1,231 5.13
                                    – Overseas 4,763 242 5.08 2,639 160 6.06
Internal funding of trading business – UK (68,395) (3,307) 4.84 (44,475) (1,893) 4.26
                                                          – Overseas (7,454) (321) 4.31 (4,930) (207) 4.20
Total interest-bearing liabilities – banking business (2, 3) 484,053 21,288 4.40 377,892 14,557 3.85
                                                          – trading business (4) 316,540     204,810    
Total interest-bearing liabilities 800,593     582,702    
Non-interest-bearing liabilities            
Demand deposits – UK 18,416     17,909    
                             – Overseas 14,455     11,668    
Other liabilities (3, 4) 283,453     184,747    
Owners' equity 43,359     36,876    
Total liabilities and owners' equity 1,160,276     833,902    
             
Percentage of liabilities applicable to overseas operations 35.9%     32.3%    

Notes:

(1)The analysis into UK and Overseas has been compiled on the basis of location of office.

(2) Interest-earning assets and interest-bearing liabilities exclude the Retail bancassurance assets and liabilities attributable to policyholders, in view of their distinct nature. As a result, net interest income has been adjusted by £85 million (2006 – £63 million).

(3)Interest income has been adjusted by £313 million (2006 – £215 million) and interest expense by £536 million (2006 – £465 million) to record interest on financial assets and liabilities designated as at fair value through profit or loss. Related interest-earning assets and interest-bearing liabilities have also been adjusted.

(4)Interest receivable and interest payable on trading assets and liabilities are included in income from trading activities.

  2005
  Average
balance
£m		 Interest
£m		 Rate
%
Assets      
Treasury bills and other eligible bills – UK 3,160 138 4.37
                                                          – Overseas 63 2 3.17
Loans and advances to banks – UK 15,338 649 4.23
                                                  – Overseas 9,465 308 3.25
Loans and advances to customers – UK 212,991 13,510 6.34
                                                         – Overseas 104,594 5,207 4.98
Debt securities – UK 15,553 697 4.48
                         – Overseas 22,526 994 4.41
Total interest-earning assets – banking business (2, 3) 383,690 21,505 5.60
                                                       – trading business (4) 172,990    
Total interest-earning assets 556,680    
Non-interest-earning assets (2, 3) 180,368    
Total assets 737,048    
Percentage of assets applicable to overseas operations 35.3%    
 
Liabilities and owners' equity      
Deposits by banks – UK 34,742 1,192 3.43
                               – Overseas 27,383 891 3.25
Customer accounts: demand deposits – UK 73,653 2,056 2.79
                                                              – Overseas 13,858 299 2.16
Customer accounts: savings deposits – UK 26,727 778 2.91
                                                              – Overseas 21,700 381 1.76
Customer accounts: other time deposits – UK 60,454 2,328 3.85
                                                                 – Overseas 32,024 979 3.06
Debt securities in issue – UK 52,672 2,071 3.93
                                      – Overseas 19,621 633 3.23
Subordinated liabilities – UK 23,948 1,122 4.69
                                    – Overseas 2,642 154 5.83
Internal funding of trading business – UK (37,628) (1,125) 2.99
                                                         – Overseas (2,186) (39) 1.78
Total interest-bearing liabilities – banking business (2, 3) 349,610 11,720 3.35
                                                           – trading business (4) 172,744    
Total interest-bearing liabilities 522,354    
Non-interest-bearing liabilities      
Demand deposits – UK 17,484    
                             – Overseas 11,181    
Other liabilities (3, 4) 153,081    
Owners' equity 32,948    
Total liabilities and owners' equity 737,048    
       
Percentage of liabilities applicable to overseas operations 33.5%    

Notes:

(1) The analysis into UK and Overseas has been compiled on the basis of location of office.

(2) Interest-earning assets and interest-bearing liabilities exclude the Retail bancassurance assets and liabilities attributable to policyholders, in view of their distinct nature. As a result, net interest income has been adjusted by £59 million.

(3) Interest income has been adjusted by £115 million and interest expesnse by £307 million to record interest on financial assets and liabilities designated as at fair value through profit or loss. Related interest-earning assets and interest-bearing liabilities have also been adjusted.

(4) Interest receivable and interest payable on trading assets and liabilities are included in income from trading activities.