Consolidated income statement

for the year ended 31 December 2007

Note 2007
£m		 2006
£m		 2005
£m
Interest receivable 33,420 24,688 21,331
Interest payable (20,752) (14,092) (11,413)
Net interest income 12,668 10,596 9,918
Fees and commissions receivable 8,465 7,116 6,750
Fees and commissions payable (2,311) (1,922) (1,841)
Income from trading activities 1 1,327 2,675 2,343
Other operating income (excluding insurance premium income) 4,857 3,564 2,953
Insurance premium income 6,398 6,243 6,076
Reinsurers' share (289) (270) (297)
Non-interest income 18,447 17,406 15,984
Total income 31,115 28,002 25,902
Staff costs 7,552 6,723 5,992
Premises and equipment 1,766 1,421 1,313
Other administrative expenses 3,147 2,658 2,816
Depreciation and amortisation 1,970 1,678 1,825
Operating expenses 2 14,435 12,480 11,946
Profit before other operating charges and impairment losses 16,680 15,522 13,956
Insurance claims 4,770 4,550 4,413
Reinsurers' share (118) (92) (100)
Impairment losses 12 2,128 1,878 1,707
Operating profit before tax 9,900 9,186 7,936
Tax 5 2,052 2,689 2,378
Profit from continuing operations 7,848 6,497 5,558
Loss from discontinued operations, net of tax 136 – –
Profit for the year 7,712 6,497 5,558

Profit attributable to:
Minority interests 163 104 57
Other owners 6 246 191 109
Ordinary shareholders 7,303 6,202 5,392
7,712 6,497 5,558
Per 25p ordinary share:
Basic earnings 9 76.4p 64.9p 56.5p
Diluted earnings 9 75.7p 64.4p 56.1p
Dividends 7 32.2p 25.8p 20.2p