EXHIBIT 7.1
Explanation of ratio calculations
Other financial data | ||||||||||
2004 | 2003 | 2002 | 2001 | 2000 | ||||||
Other financial data based upon UK GAAP (1): | ||||||||||
Return on average total assets (2) | 1.30 | % | 1.21 | % | 1.02 | % | 0.95 | % | 1.10 | % |
Return on average ordinary shareholders' equity (3) | 28.8 | % | 25.6 | % | 21.9 | % | 24.3 | % | 26.6 | % |
Average shareholders' equity as a percentage of average total assets | 4.8 | % | 5.0 | % | 5.0 | % | 4.2 | % | 4.3 | % |
Risk asset ratio | ||||||||||
Tier 1 | 8.0 | % | 9.2 | % | 8.9 | % | 7.9 | % | 7.1 | % |
Total | 11.6 | % | 13.3 | % | 13.0 | % | 12.3 | % | 12.2 | % |
Ratio of earnings to combined fixed charges and | ||||||||||
preference share dividends (4) | ||||||||||
Including interest on deposits | 2.20 | 2.52 | 2.04 | 1.58 | 1.52 | |||||
Excluding interest on deposits | 6.10 | 6.92 | 3.82 | 4.30 | 4.88 | |||||
Ratio of earnings to fixed charges only (4) | ||||||||||
Including interest on deposits | 2.23 | 2.57 | 2.07 | 1.60 | 1.53 | |||||
excluding interest on deposits | 6.44 | 7.48 | 4.00 | 4.56 | 5.16 | |||||
Other financial data based upon US GAAP: | ||||||||||
Return on average total assets (2) | 1.02 | % | 1.18 | % | 1.18 | % | 1.11 | % | 1.40 | % |
Return on average ordinary shareholders' equity (3) | 23.7 | % | 25.7 | % | 27.5 | % | 30.5 | % | 39.5 | % |
Average shareholders' equity as a percentage of average total assets | 4.5 | % | 4.9 | % | 4.6 | % | 3.9 | % | 3.8 | % |
Ratio of earnings to combined fixed charges and | ||||||||||
preference share dividends (4) | ||||||||||
Including interest on deposits | 1.99 | 2.50 | 2.28 | 1.73 | 1.67 | |||||
Excluding interest on deposits | 5.19 | 6.82 | 4.48 | 5.12 | 5.97 | |||||
Ratio of earnings to fixed charges only (4) | ||||||||||
Including interest on deposits | 2.01 | 2.55 | 2.32 | 1.75 | 1.68 | |||||
Excluding interest on deposits | 5.48 | 7.37 | 4.69 | 5.42 | 6.32 |
Notes: | |
(1) | The years ended 31 December 2003 and 2002 have been restated following the implementation of FRS 17. It is not practicable torestate prior years. |
(2) | Return on average total assets represents profit attributable to ordinary shareholders as a percentage of average total assets. |
(3) | Return on average ordinary shareholders' equity represents profit attributable to ordinary shareholders expressed as a percentage ofaverage ordinary shareholders' equity. |
(4) | For this purpose, earnings consist of income before taxes and minority interests, plus fixed charges less the unremitted income ofassociated undertakings (share of profits less dividends received). Fixed charges consist of total interest expense, including orexcluding interest on deposits and debt securities in issue, as appropriate, and the proportion of rental expense deemed representativeof the interest factor (one third of total rental expenses). |