TIDM68FF
RNS Number : 9437D
HBOS PLC
30 March 2011
47/10 30 March 2011
HBOS PLC
ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDING
31 DECEMBER 2010
In accordance with Listing Rule 9.6.1, HBOS plc has submitted
today the above document to the National Storage Mechanism.
The document will shortly be available for inspection at
www.hemscott.com/nsm.do
Copies of the document are also available on the Lloyds Banking
Group plc website www.lloydsbankinggroup.com
This announcement also contains additional information for the
purposes of compliance with the Disclosure and Transparency Rules,
including principal risk factors, details of related party
transactions and a responsibility statement. This information is
extracted,in full unedited text, from the HBOS plc 2010 Annual
Report (the 'Annual Report'). References to page numbers and notes
to the accounts made in the following Appendices, refer to page
numbers and notes to the accounts in the Annual Report.
- END -
For further information:
Investor Relations
Kate O'Neill +44 (0) 20 7356 3520
Managing Director, Investor Relations
Email: kate.o'neill@ltsb-finance.co.uk
Michael Oliver +44 (0) 20 7356 2167
Director of Investor Relations
Email: michael.oliver@ltsb-finance.co.uk
Charles King +44 (0) 20 7356 3537
Director of Investor Relations
Email: charles.king@ltsb-finance.co.uk
Corporate Affairs
Matthew Young +44 (0) 20 7356 2231
Director of Corporate Affairs
Email: matt.young@lloydsbanking.com
Media Relations
Mark Elliott +44 (0) 20 7356 1164
Head of Media Relations
Email: mark.elliott2@lloydsbanking.com
FORWARD LOOKING STATEMENTS
This announcement contains forward looking statements with
respect to the business, strategy and plans of the Lloyds Banking
Group, its current goals and expectations relating to its future
financial condition and performance. Statements that are not
historical facts, including statements about the Group or the
Group's management's beliefs and expectations, are forward looking
statements. By their nature, forward looking statements involve
risk and uncertainty because they relate to events and depend on
circumstances that will occur in the future. The Group's actual
future business, strategy, plans and/or results may differ
materially from those expressed or implied in these forward looking
statements as a result of a variety of risks, uncertainties and
other factors, including, without limitation, UK domestic and
global economic and business conditions; the ability to derive cost
savings and other benefits, as well as the ability to integrate
successfully the acquisition of HBOS; the ability to access
sufficient funding to meet the Group's liquidity needs; changes to
the Group's credit ratings; risks concerning borrower or
counterparty credit quality; market related trends and
developments; changing demographic trends; changes in customer
preferences; changes to regulation, accounting standards or
taxation, including changes to regulatory capital or liquidity
requirements; the policies and actions of Governmental or
regulatory authorities in the UK, the European Union, or
jurisdictions outside the UK, including other European countries
and the US; the ability to attract and retain senior management and
other employees; requirements or limitations imposed on the Group
as a result of HM Treasury's investment in the Group; the ability
to complete satisfactorily the disposal of certain assets as part
of the Group's EU State Aid obligations; the extent of any future
impairment charges or write-downs caused by depressed asset
valuations; exposure to regulatory scrutiny, legal proceedings or
complaints, actions of competitors and other factors. Please refer
to the latest Annual Report on form 20-F filed with the US
Securities and Exchange Commission for a discussion of such factors
together with examples of forward looking statements. The forward
looking statements contained in this announcement are made as at
the date of this announcement, and the Group undertakes no
obligation to update any of its forward looking statements.
Appendix 1 - Risk Factors
The principal risks and uncertainties relating to HBOS plc are
set out on pages 7 to 10 of the Annual Report. The following is
extracted in full and unedited form from the Annual Report.
At present the most significant risks faced by the Group
are:
Credit
Definition: The risk of reductions in earnings and/or value,
through financial loss, as a result of the failure of the party
with whom the Group has contracted to meet its obligations (both on
and off balance sheet).
Features: Arising in the retail, wholesale and wealth and
international operations, reflecting the risks inherent in the
Group's lending activities and to a much lesser extent in the
insurance operations in respect of investment of own funds. Adverse
changes in the credit quality of the Group's UK and/or
international borrowers and counterparties, or in their behaviour,
would be expected to reduce the value of the Group's assets and
materially increase the Group's write-downs and allowances for
impairment losses. Credit risk can be affected by a range of
factors, including, inter alia, increased unemployment, reduced
asset values, increased personal or corporate insolvency levels,
reduced corporate profits, increased interest rates or higher
tenant defaults. Over the last three years, the global banking
crisis and economic downturn has driven cyclically high bad debt
charges. These have arisen from the Group's lending to:
- Wholesale customers (including those in wealth and international
operations): where companies continue to face difficult business
conditions, resulting in elevated corporate default levels, illiquid
commercial property markets and heightened impairment charges.
The Group has high levels of exposure in both the UK and internationally,
including Ireland, USA, and Australia. There are particular concentrations
to financial institutions and commercial real estate, including
secondary and tertiary locations.
- Retail customers: this portfolio will remain strongly linked to
the economic environment, with inter alia house prices falls, unemployment
increases, consumer over-indebtedness and rising interest rates
all likely to impact both secured and unsecured retail exposures.
The Group follows a through the economic cycle, relationship
based, business model with risk management processes, appetites and
experienced staff in place.
Legal and regulatory
Definition: Legal and regulatory risk is the risk of reductions
in earnings and/ or value, through financial or reputational loss,
from failing to comply with the laws, regulations or codes
applicable.
Features: Legal and regulatory exposure is driven by the
significant volume of current legislation and regulation within the
UK and
overseas with which the Group has to comply, along with new or
proposed legislation and regulation which needs to be reviewed,
assessed and embedded into day-to-day operational and business
practices across the Group as a whole. This is particularly the
case in the current market environment, which is witnessing
increased levels of government and regulatory intervention in the
banking sector.
At the time of the acquisition of the Company by Lloyds Banking
Group the Office of Fair Trading (OFT) identified some competition
concerns in the UK personal current accounts and mortgages markets
and for SME banking in Scotland. The OFT reiterated that it would
keep these under review and consider whether to refer any banking
markets to the Competition Commission if it identifies any
prevention, restriction or distortion of competition.
The UK Government appointed an Independent Commission on Banking
to review possible structural measures to reform the banking system
and promote stability and competition. That commission will publish
its final report by the end of September 2011. The Treasury Select
Committee is conducting an examination of competition in retail
banking. It is too early to quantify the potential impact of these
developments on the Group.
From April 2011, lead regulation and supervision of the Group's
activities will begin transitioning from the FSA to the new
Financial Conduct Authority for conduct of business supervision
and the Prudential Regulatory Authority for capital and liquidity
supervision. In addition, from 2011, the European Banking
Authority, the European Insurance and Occupational Pensions
Authority and the European Securities and Markets Authority as new
EU Supervisory Authorities are likely to have greater influence on
regulatory approaches across the EU. These could lead to changes in
how the Group is regulated and supervised on a day-to-day
basis.
Evolving capital and liquidity requirements continue to be a
priority for the Group. In September 2010 and further clarified in
December 2010, the Basel Committee on Banking Supervision put
forward proposals for a reform package which changes the regulatory
capital and liquidity standards, the definition of 'capital',
introduces new definitions for the calculation of counterparty
credit risk and leverage ratios, additional capital buffers and
development of a global liquidity standard. Implementation of these
changes is expected to be phased in between 2012 and 2018.
Lloyds Banking Group is currently assessing the impacts of these
regulatory developments and will participate in the consultation
and calibration processes to be undertaken by the various
regulatory bodies during 2011. The insurance operations are
progressing its plans to achieve Solvency II compliance. Lloyds
Banking Group continues to work closely with the regulatory
authorities and industry associations to ensure that it is able to
identify and respond to proposed regulatory changes and mitigate
against risks to the Group and its stakeholders.
There is a risk that certain aspects of the Group's business may
be determined by the authorities or the courts as not being
conducted in accordance with applicable laws or regulations, or
with what is fair and reasonable in their opinion. The Group may
also be liable for damages to third parties harmed by the conduct
of its business.
Liquidity and funding
Definition: Liquidity risk is defined as the risk that the Group
has insufficient financial resources to meet its commitments as
they fall due, or can only secure them at excessive cost.
Funding risk is defined as the risk that the Group does not have
sufficiently stable and diverse sources of funding or the funding
structure is inefficient.
Features: Arising in the banking business of the Group through
its retail, wholesale and wealth and international operations
reflecting the risk that the Group is unable to attract and retain
either retail, wholesale or corporate deposits or issue debt
securities. Like all major banks, the Group is dependent on
confidence in the short and longer term wholesale funding markets;
should the Group, due to exceptional circumstances, be unable to
continue to source sustainable funding and provide liquidity when
necessary, the Group's ability to fund its financial obligations
could be impacted.
The key dependencies for successfully funding the Group's
balance sheet include the continued functioning of the money and
capital markets; successful right sizing of the Lloyds Banking
Group balance sheet; the continuation of HM Treasury and Bank of
England facilities to Lloyds Banking Group in accordance with the
terms agreed; limited further deterioration in the UK's, Lloyds
Banking Group's and the Group's credit ratings and no significant
or sudden withdrawal of deposits resulting in increased reliance on
wholesale funding markets. A return to the extreme market
conditions of 2008 would place a strain on the Group's ability to
meet its financial commitments.
Additionally, the Lloyds Banking Group has entered into a number
of EU state aid related obligations to achieve reductions in
certain parts of its balance sheet by the end of 2014. The
requirement to meet this deadline may result in the Group having to
provide funding to support these asset reductions and/or disposals
and may also result in a lower price being achieved. Liquidity and
funding risks are managed within a board approved framework using a
range of metrics to monitor the Group's profile against its stated
appetite and potential market conditions.
Market Risk
Definition: The risk of reductions in earnings and/or value,
through financial or reputational loss, from unfavourable market
moves; including changes in, and increased volatility of, interest
rates, market-implied inflation rates, credit spreads, foreign
exchange rates, equity, property and commodity prices.
Features: Market risk is managed within a Board approved
framework using a range of metrics to monitor the Group's profile
against its stated appetite and potential market conditions.
The principal market risks are as follows:
There is a risk to the Group's banking income arising from the
level of interest rates and the margin of interbank rates over
central bank rates. A further banking risk arises from competitive
pressures on product terms in existing loans and deposits, which
sometimes restrict the Group in its ability to change interest
rates applying to customers in response to changes in interbank and
central bank rates.
The main equity market risks arise in the life assurance
companies and staff pension schemes. Credit spread risk arises in
the life assurance companies, pension schemes and banking
businesses. Equity market movements and changes in credit spreads
impact the Group's results.
Continuing concerns about the scale of deficits in Ireland and
southern European countries resulted in increased credit spreads in
the areas affected, and fears of contagion affected the Euro and
widened spreads between central bank and interbank rates.
The Group's trading activity is small relative to its peers and
is not considered to be a principal risk.
Insurance Risk
Definition: The risk of reductions in earnings and/or value,
through financial or reputational loss, due to fluctuations in the
timing, frequency and severity of insured/underwritten events and
to fluctuations in the timing and amount of claims settlements.
Features: The major sources of insurance risk are within the
insurance businesses and the staff defined benefit pension
schemes.
Insurance risk is inherent in the insurance business and can be
affected by customer behaviour. Insurance risks accepted relate
primarily to mortality, longevity, morbidity, persistency,
expenses, property and unemployment.
The prime insurance risk carried by the Group's defined benefit
pension schemes is related to longevity.
Insurance risks typically, and longevity in particular, may
crystallise gradually over time. Actuarial assumption setting for
financial reporting and liability management requires expert
judgement as to when evidence of an emerging trend is sufficient to
require an alteration to long-run assumptions.
Customer treatment
Definition: The risk of regulatory censure and/or a reduction in
earnings/value, through financial or reputational loss, from
inappropriate or poor customer treatment.
Features: Customer treatment and how the Group manages its
customer relationships affects all aspects of the Group's
operations and is closely aligned with achievement of the Group's
strategic aim - to create deep long lasting relationships with its
customers. There is currently a high level of scrutiny regarding
the treatment of customers by financial institutions from the
press, politicians and regulatory bodies.
The FSA continues to drive focus on conduct of business
activities and has established a new approach to supervision of
Conduct Risk, replacing the previous 'Treating Customers Fairly'
initiative for retail customers. Under this new regime the FSA has
indicated that it will seek to place greater emphasis on product
governance and contract terms in general, and will seek to
intervene much earlier in the product lifecycle to prevent customer
detriment. The FSA also continues to carry out thematic reviews on
a variety of issues across the industry as a whole, for example
complaints handling. Lloyds Banking Group actively engages with the
regulatory authorities and other stakeholders on these key customer
treatment challenges, which includes for example, PPI (see note 51
of the financial statements).
The Group has policies, procedures and governance arrangements
in place to facilitate the fair treatment of customers. Since the
acquisition of HBOS, the Group has made significant progress in
aligning its approach to Treating Customers Fairly across both
heritages. In addition the Group has aligned its Treating Customers
Fairly governance and management information arrangements, with
customer impact being a key factor in assessing every integration
proposition. The Group regularly reviews its product range to
ensure that it meets regulatory requirements and is competitive in
the market place.
People
Definition: The risk of reductions in earnings and/or value,
through financial or reputational loss, from inappropriate
colleague actions and behaviour, industrial action, legal action in
relation to people, or health and safety issues. Loss can also be
incurred through failure to recruit, retain, train, reward and
incentivise appropriately skilled staff to achieve business
objectives and through failure to take appropriate action as a
result of staff underperformance.
Features: The Group aims to attract, retain, and develop high
calibre talent. Failure to do so presents a significant risk to
delivering the Group's overall strategy and is affected by a range
of factors including:
- Ongoing regulatory and public interest in remuneration practices;
- Delivery of Lloyds Banking Group's integration commitments; and
- Uncertainty about EU state aid requirements and the Independent
Commission on Banking's proposals for banking reform.
The Group's remuneration arrangements encourage compliant and
appropriate behaviour from colleagues, in line with group policies,
values and short and long term people risk priorities. The Group
has continued to work closely with regulators to seek to ensure
compliance with our obligations. However, there is recognition that
international consensus must be achieved to avoid UK institutions
being significantly disadvantaged in attracting and retaining the
highest calibre talent.
The Group continues to manage union relationships actively and
the majority of colleagues are now on harmonised Terms and
Conditions. There is strong ongoing commitment to support and
retain colleagues throughout a period of significant integration
and organisational change. Active monitoring of the Colleague
Engagement Survey, allows the Group to understand engagement
levels. These continue to increase and are now exceeding industry
benchmarking for high performing organisations.
The Lloyds Banking Group is closely engaged with the UK
Government and regulators on reform proposals, and with the EU on
disposal arrangements, to influence and manage colleague
uncertainty.
Integration
Definition: The risk that the Group fails to realise the
business growth opportunities, revenue benefits, cost synergies,
operational efficiencies and other benefits anticipated from, or
incurs unanticipated costs and losses associated with, the
acquisition of HBOS plc by Lloyds Banking Group plc.
Features: The integration of the two heritage organisations
continues to be one of the largest integration challenges that has
been seen in the UK financial services industry. While there
continue to be delivery risks to the programme, not least the risk
of new regulatory requirements which may have an effect on
resourcing, the Group is now two years into the integration
programme and has a fully developed and functioning governance
framework to manage these risks. There is a clear understanding of
the phased deliverables to ensure effective delivery through to
2012.
Appendix 2 - Related Party Transactions
The following statements regarding related party transactions of
HBOS plc are set out on pages 79 to 81 of the Annual Report. The
following is extracted in full and unedited form from the Annual
Report.
50 RELATED PARTY TRANSACTIONS
Key management personnel
Key management personnel are those persons having authority and
responsibility for planning, directing and controlling the
activities of an entity. At 31 December 2010, the Group's key
management personnel are the members of the Lloyds Banking Group
plc group executive committee together with its non-executive
directors.
The table below details, on an aggregated basis, key management
personnel compensation. The compensation of key management
personnel has been allocated to the Company on an estimated
basis.
2010 2009
GBPm GBPm
Compensation
Salaries and other short-term benefits 8 8
Post-employment benefits 1 1
Share-based payments - -
----- -----
Total compensation 9 9
----- -----
The aggregate of the emoluments of the directors was GBP5.3
million (2009: GBP5.0 million). The total for the highest paid
director (J E Daniels) was GBP1,286,000 (2009: (G T Tate)
GBP903,000).
As a result of the acquisition of HBOS plc by Lloyds Banking
Group on 16 January 2009, the Board of the Group changed in its
entirety. Accordingly, the disclosures for 2009 begin with the
balances of key management personnel on 16 January 2009.
2010 2009
million million
Share options over Lloyds Banking Group plc shares
At 1 January 2010/16 January 2009 2 2
Granted, including certain adjustments (includes
entitlements of appointed directors)(1) 4 -
-------- --------
At 31 December 6 2
-------- --------
(1 ) Adjustments have been made, using a standard HMRC formula,
to negate the dilutionary impact of the Lloyds Banking Group's 2009
capital raising activities.
2010 2009
million million
Share plans settled in Lloyds Banking Group plc
shares
At 1 January 2010/16 January 2009 19 7
Granted, including certain adjustments (includes
entitlements of appointed directors)(1) 39 17
Exercised/lapsed (includes entitlements of former
directors) (2) (5)
-------- --------
At 31 December 56 19
-------- --------
(1 ) Adjustments have been made, using a standard HMRC formula,
to negate the dilutionary impact of the Lloyds Banking Group's 2009
capital raising activities.
The tables below detail, on an aggregated basis, balances
outstanding at the year end and related income and expense,
together with information relating to other transactions between
Lloyds Banking Group and its key management personnel:
2010 2009
GBPm GBPm
Loans
At 1 January 2010/16 January 2009 2 3
Advanced (includes loans of appointed directors) 2 -
Repayments (includes loans of former directors) (1) (1)
----- -----
At 31 December 3 2
----- -----
The loans are on both a secured and unsecured basis and are
expected to be settled in cash. The loans attracted interest rates
of between 0.50 per cent and 17.90 per cent in 2010 (2009: 1.28 per
cent and 24.90 per cent).
No provisions have been recognised in respect of loans given to
key management personnel (2009: GBPnil).
2010 2009
GBPm GBPm
Deposits
At 1 January 2010/16 January 2009 4 6
Placed (includes deposits of appointed directors) 12 12
Withdrawn (includes deposits of former directors) (12) (14)
----- -----
At 31 December 4 4
----- -----
Deposits placed by key management personnel attracted interest
rates of up to 4.25 per cent (2009: 6.50 per cent).
At 31 December 2010 and 2009, the Group did not provide any
guarantees in respect of key management personnel.
At 31 December 2010, transactions, arrangements and agreements
entered into by the Group and its banking subsidiaries with
directors and connected persons included amounts outstanding in
respect of loans and credit card transactions of GBP2 million with
six directors and four connected persons (2009: GBP2 million with
seven directors and four connected persons).
Balances and transactions with fellow Lloyds Banking Group
undertakings
Balances and transactions between members of the HBOS group
In accordance with IAS 27, transactions and balances between the
Company and its subsidiary undertakings, and between those
subsidiary undertakings, have all been eliminated on consolidation
and thus are not reported as related party transactions of the
Group.
The Company has a significant number of transactions with
various of its subsidiary undertakings; these are included on the
balance sheet of the Company as follows:
2010 2009
GBPm GBPm
Assets, included within:
Amounts owed by Group entities 41,818 46,186
Derivative financial instruments 2,061 301
43,879 46,487
------ ------
Liabilities included within:
Amounts owed to Group entities 33,749 37,450
------ ------
Due to the size and volume of transactions passing through these
accounts, it is neither practical nor meaningful to disclose
information on gross inflows and outflows. During 2010 the Company
earned interest income on the above asset balances of GBP1,551
million (2009: GBP1,952 million) and incurred interest expense on
the above liability balances of GBP573 million (2009: GBP888
million).
Balances and transactions with Lloyds Banking Group plc and
fellow subsidiaries of the Lloyds Banking Group
The Company and its subsidiaries have balances due to and from
the Company's ultimate parent company, Lloyds Banking Group plc,
and fellow subsidiaries of the Lloyds Banking Group. These are
included on the balance sheet as follows:
Group Company
---------------- ------------
2010 2009 2010 2009
GBPm GBPm GBPm GBPm
Assets, included within:
Derivative financial instruments 1,437 663 - -
Loans and receivable:
Loans and advances to banks 55,053 85,498 - -
Loans and advances to customers 10,205 5,647 7,869 3,121
Other 4,241 1,835 - 1,805
------- ------- ----- -----
70,936 93,643 7,869 4,926
------- ------- ----- -----
Liabilities included within:
Deposits from banks 131,133 150,338 - -
Customer deposits 16,489 4,672 7,862 4,643
Derivative financial instruments 1,853 853 - -
Subordinated liabilities 312 2,445 273 -
Other liabilities 5,831 1,644 - -
------- ------- ----- -----
155,618 159,952 8,135 4,643
------- ------- ----- -----
These balances include Lloyds Banking Group plc's banking
arrangements and, due to the size and volume of transactions
passing through these accounts, it is neither practical nor
meaningful to disclose information on gross inflows and outflows.
During 2010 the Group earned GBP658 million and the Company earned
GBP32 million of interest income on the above asset balances (2009:
Group GBP1,551 million; Company GBP4 million); the Group incurred
GBP1,249 million and the Company incurred GBP245 million of
interest expense on the above liability balances (2009: Group
GBP573 million; Company GBP135 million).
HM Treasury
In January 2009, HM Treasury became a related party of Lloyds
Banking Group plc, the Company's ultimate parent company, following
its subscription for ordinary shares issued under a placing and
open offer. As at 31 December 2010, HM Treasury held a 41 per cent
interest (December 2009: 43 per cent) in Lloyds Banking Group plc's
ordinary share capital and consequently HM Treasury remained a
related party of the Company and its subsidiaries throughout
2010.
Capital transactions
During 2010 there were no further subscriptions by HM Treasury
for Lloyds Banking Group plc's ordinary or preference share
capital, with the decline in the percentage of ordinary shares held
by HM Treasury reflecting the issuance by Lloyds Banking Group plc
of ordinary shares.
Lending commitments
On 23 March 2010, Lloyds Banking Group plc entered into a deed
poll in favour of HM Treasury, the Department for Business,
Innovation and Skills and the Departments for Communities and Local
Government confirming its lending commitments for the 12 month
period commencing 1 March 2010. Lloyds Banking Group plc agreed,
subject to, amongst other things, sufficient customer demand, to
provide gross new lending to UK businesses of GBP44,000 million and
to adjust
the undertakings (but not the level of lending agreed in 2009)
given in connection with lending to homeowners for the 12 month
period. This additional lending is expressed to be subject to the
Group's prevailing commercial terms and conditions (including
pricing and risk assessment) and, in relation to mortgage lending,
the Group's standard credit and other acceptance criteria.
Credit Guarantee Scheme
HM Treasury launched the Credit Guarantee Scheme in October 2008
as part of a range of measures announced by the UK Government
intended to ease the turbulence in the UK banking system. It
charges a commercial fee for the guarantee of new short and
medium-term debt issuance. The fee payable to HM Treasury on
guaranteed issues is based on a per annum rate of 50 basis points
plus the median five-year credit default swap spread. At 31
December 2010, the Group had GBP6,030 million (2009: GBP8,725
million) of debt issued under the Credit Guarantee Scheme. During
2010, the Group redeemed GBP2,695 million of bonds. The Group's
income statement includes fees of GBP89 million (2009: GBP236
million) payable to HM Treasury in respect of guaranteed
funding.
There were no other material transactions between the Group and
HM Treasury during 2010 that were not made in the ordinary course
of business or that were unusual in their nature or conditions.
Other related party disclosures
At 31 December 2010 there were customer deposits of GBP35
million (2009: GBP39 million) and investment and insurance contract
liabilities of GBP850 million (2009: GBP320 million) related to the
Group's pension arrangements.
The Group manages 291 (2009: 273) Open Ended Investment
Companies (OEICs), and of these 65 (2009: 61) are consolidated. The
Group invested GBP613 million (2009: GBP859 million) and redeemed
GBP239 million (2009: GBP714 million) in the unconsolidated OEICs
during the year and had investments, at fair value, of GBP4,317
million (2009: GBP3,589 million) at 31 December. The Group earned
fees of GBP42 million from the unconsolidated OEICs (2009: GBP30
million). The Company held no investments in OEICs at any time
during 2009 or 2010.
The Group provides both administration and processing services
to its principal joint venture, Sainsbury's Bank plc. The amounts
receivable by the Group during the year were GBP31 million (2009:
GBP34 million), of which GBP8 million is outstanding at the year
end (2009: GBP10 million). At 31 December 2010, Sainsbury's Bank
plc also had balances with the Group that were included in loans
and advances to banks of GBP1,277 million (2009: GBP1,218 million)
and deposits by banks of
GBP1,358 million (2009: GBP1,405 million).
At 31 December 2010 there were loans and advances to customers
of GBP5,660 million (2009: GBP12,235 million) outstanding and
balances within customer deposits of GBP151 million (2009: GBP254
million) relating to joint ventures and associates.
The Group has a number of associates held by its venture capital
business that it accounts for at fair value through profit or loss.
At 31 December 2010, these companies had total assets of
approximately GBP4,713 million (2009: GBP11,816 million), total
liabilities of approximately GBP4,199 million (2009: GBP12,106
million) and for the year ended 31 December 2010 had turnover of
approximately GBP744 million (2009: GBP8,766 million) and made a
net profit of approximately GBP164 million (2009: net loss of
GBP557 million). In addition, the Group has provided GBP1,406
million (2009: GBP5,245 million) of financing to these companies on
which it received GBP19 million (2009: GBP140 million) of interest
income in the year.
Taxation: Group relief was surrendered for no payment, as per
note 14.
Appendix 3 - Directors' Responsibility Statement
The following statement is extracted from page 4 of the Annual
Report. This statement relates solely to the Annual Report and is
not connected to the extracted information set out in this
announcement or the 2010 Results Announcement dated 25 February
2011.
Each of the current directors, whose names are shown on page 6
of this annual report, confirms that, to the best of his or her
knowledge:
- the financial statements, prepared in accordance with International
Financial Reporting Standards as adopted by the European Union,
give a true and fair view of the assets, liabilities and financial
position of the Bank and Group and the profit or loss of the Group;
- the business review includes a fair review of the development and
performance of the business and the position of the Bank and Group;
and
- the principal risks and uncertainties faced by the Bank and the
Group are set out on pages 7 to 10.
This information is provided by RNS
The company news service from the London Stock Exchange
END
ACSURSSRAAAOOAR
Hbos 5.75% Nts (LSE:68FF)
Gráfica de Acción Histórica
De Ago 2024 a Sep 2024
Hbos 5.75% Nts (LSE:68FF)
Gráfica de Acción Histórica
De Sep 2023 a Sep 2024