Focus on growth and efficiency
Income(£m)
The Group's total income grew by 11% to £31,115 million in 2007.
Adjusted cost:income ratio (%)
The Group's cost:income ratio was 43.9%. Excluding ABN AMRO, the Group's cost:income ratio improved by 1.4 percentage points to 40.7%. The cost:income ratio is calculated excluding purchased intangibles amortisation, integration costs and net gain on sale of strategic investments and subsidiaries in 2005, and after netting operating lease depreciation against rental income.
Group operating profit * (£m)
Group operating profit increased by 9% to £10,282 million in 2007.
* profit before tax, purchased intangibles amortisation, integration costs, and net gain on sales of strategic investments and subsidiaries in 2005
Adjusted earnings per share ** (pence)
Earnings per share increased by 18% to 78.7p for 2007, adjusted for purchased intangibles amortisation, integration costs, and net gain on sale of strategic investments and subsidiaries in 2005.
** prior year data have been restated to reflect the two for one bonus issue of ordinary shares in May 2007.
Dividend per ordinary share **(pence)
The directors have recommended a final dividend of 23.1p per ordinary share which, when added to the interim dividend of 10.1p, makes a total for 2007 of 33.2p, an increase of 10%.
** prior year data have been restated to reflect the two for one bonus issue of ordinary shares in May 2007.
Cumulative growth in ordinary dividends per share 1999 – 2007
Group operating profit *
| 2007 £m |
2006 £m |
|
|---|---|---|
| Corporate Markets | ||
| Global Banking & Markets | 3,687 | 3,779 |
| UK Corporate Banking | 1,961 | 1,762 |
| Total Corporate Markets | 5,648 | 5,541 |
| Retail Markets | ||
| Retail | 2,470 | 2,250 |
| Wealth Management | 413 | 318 |
| Total Retail Markets | 2,883 | 2,568 |
| Ulster Bank | 513 | 421 |
| Citizens | 1,323 | 1,582 |
| RBS Insurance | 683 | 749 |
| Manufacturing | – | – |
| Central items | (752) | (1,447) |
| Group operating profit (excluding ABN AMRO) | 10,298 | 9,414 |
| ABN AMRO | 128 | – |
| Central items | (144) | – |
| Group operating profit | 10,282 | 9,414 |
* operating profit for each division is profit before tax, purchased intangibles amortisation and integration costs and after allocation of Manufacturing costs where appropriate
The accounts are prepared in accordance with International Financial Reporting Standards. Certain standards relating to financial instruments were not adopted until January 2005. The Group has provided comparative information on a pro forma basis that includes the estimated effect of these standards for the year ended 31 December 2004.
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