lloy201110256k.htm
 
 
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.20549
 
 
FORM 6-K
 
 
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
 
 
25 October 2011
 


LLOYDS BANKING GROUP plc

(Translation of registrant's name into English)
 
5th Floor
25 Gresham Street
London
EC2V 7HN
United Kingdom
 
 
(Address of principal executive offices)
 
 
 
Indicate by check mark whether the registrant files or will file annual reports
under cover Form 20-F or Form 40-F.
 
Form 20-F..X..     Form 40-F.....
 
 
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
 
Yes .....      No ..X..
 
If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule
12g3-2(b): 82- ________
 
 
Index to Exhibits
 
 
Item
 
 
No. 1       Regulatory News Service Announcement, dated  25 October 2011
                re:   New Allocation Methodologies for Funding Costs
 

 
 
 

 
25 October 2011

 
 
NEW allocation METHODOLOGIES for funding costs AND CAPITAL
 
As part of the alignment of the business decision making framework with our strategic objectives, the Group is enhancing its allocation methodologies for funding costs and capital.
 
As has been discussed at recent results announcements, our funding transfer pricing arrangements did not result in full recovery of the costs of our successful term wholesale funding programme from divisions and certain costs have therefore been reported in Central items.  To address this, we are now implementing a new approach that ensures that the full cost of funding is reflected in each of our division's results.  At the same time, we have refined the methodology used to allocate the costs and benefits of capital across the Group.  In addition, banking volatility will now be excluded from the margin calculations and the average interest-earning assets have been adjusted to amend the treatment of offset accounts.  As a result average interest-earning assets have decreased slightly.  Together these changes will help drive enhanced commercial behaviours within our business units and ensure that our divisions' reported results better reflect their underlying performance.
 
The Group's combined businesses and statutory results are unchanged as a result of the new transfer pricing methodologies.  However, the new arrangements will affect the divisional results and the core/non-core analysis and will also result in a modest transfer of interest expense from banking to non-banking activities.
 
The new methodology is designed to ensure that funding costs are allocated to the divisions and that the allocation is more directly related to the size and behavioural duration of asset portfolios, with a similar approach applied to recognise the value to the business from the Group's growing deposit base.  Although overall Group net interest income (NII) is unchanged, this reallocation has changed the NII mix with a modest increase in banking NII and a commensurate reduction in non-banking NII.
 
As a result of these changes, the Group banking net interest margin for the three consecutive six month periods ended 30 June 2010, 31 December 2010 and 30 June 2011 has increased by 12bps, 10bps and 5bps respectively and is now reported as 2.20 per cent, 2.22 per cent and 2.12 per cent respectively.  The underlying drivers of the margin trend are unchanged from those previously shared with the market.  The adjustment for the six months ended 30 June 2011 is smaller than other periods because there was minimal net banking volatility in that period within NII.  All other things being equal, guidance on Group banking net interest margin is adjusted by a similar level to the first half of 2011 movement (5bps) and as a result we now expect Group banking net interest margin to be just above 2.05 per cent for the full year 2011.
 
The reallocation will also result in a change to NII and margins for the four banking divisions, with consequent effects on their profits or losses before tax.  The core/non-core split will also change as any interest previously unallocated and reported in Central items was treated as core and will now be appropriately split between core and non-core activities.
 
The revised approaches for funding costs and capital reallocation will be applied going forward and to ensure comparability with previous periods we have restated our divisional results for the half-years to 30 June 2010, 31 December 2010 and 30 June 2011 and also for the full-year to 31 December 2010.  The restated results, along with the revised core/non-core split, are contained within the attached appendices. 
 
- 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
 
Corporate Affairs
Matthew Young                                                                      +44 (0) 20 7356 2231
Director of Corporate Affairs
Email: matt.young@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; instability in the global financial markets; changing demographic and market related 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.
 
 
COMBINED BUSINESSES SEGMENTAL ANALYSIS - GROUP
 
APPENDIX
Half-year to 30 June 2011 - As restated
 
   
Retail 
Wholesale 
Commercial 
  
Wealth 
and Int'l 
Insurance 
Group 
Operations 
  
Central 
items 
  
Group 
 
£m 
  
£m 
  
£m 
  
£m 
  
£m 
  
£m 
  
£m 
  
£m 
                                 
Net interest income
  
3,870 
  
1,171 
  
634 
  
451 
  
(25)
  
(29)
  
306 
  
6,378 
Other income
  
884 
  
1,337 
  
218 
  
631 
  
1,319 
  
23 
  
(414)
  
3,998 
Total income
  
4,754 
  
2,508 
  
852 
  
1,082 
  
1,294 
  
(6)
  
(108)
  
10,376 
Insurance claims
  
- 
  
- 
  
- 
  
- 
  
(198)
  
- 
  
- 
  
(198)
Total income, net of insurance claims
  
4,754 
  
2,508 
  
852 
  
1,082 
  
1,096 
  
(6)
  
(108)
  
10,178 
Operating expenses
  
(2,221)
  
(1,312)
  
(471)
  
(792)
  
(415)
  
(56)
  
(65)
  
(5,332)
Trading surplus
  
2,533 
  
1,196 
  
381 
  
290 
  
681 
  
(62)
  
(173)
  
4,846 
Impairment
  
(1,173)
  
(1,557)
  
(160)
  
(2,532)
  
- 
  
- 
  
- 
  
(5,422)
Share of results of joint ventures and associates
  
3 
  
9 
  
- 
  
- 
  
- 
  
- 
  
- 
  
12 
Profit (loss) before tax and fair value unwind
  
1,363 
  
(352)
  
221 
  
(2,242)
  
681 
  
(62)
  
(173)
  
(564)
Fair value unwind
  
544 
  
1,551 
  
26 
  
104 
  
(21)
  
- 
  
(536)
  
1,668 
Profit (loss) before tax
  
1,907 
  
1,199 
  
247 
  
(2,138)
  
660 
  
(62)
  
(709)
  
1,104 
                                 
Banking net interest margin
2.14% 
  
1.64% 
  
4.27% 
  
1.31% 
              
2.12% 
Cost:income ratio1
  
46.7% 
  
52.3% 
  
55.3% 
  
73.2% 
  
37.9% 
          
52.4% 
 
Half-year to 30 June 2011 - As previously reported
 
   
Retail 
Wholesale 
Commercial 
  
Wealth 
and Int'l 
Insurance 
Group 
Operations 
  
Central 
items 
  
Group 
   
£m 
  
£m 
  
£m 
  
£m 
  
£m 
  
£m 
  
£m 
  
£m 
                                 
Net interest income
  
4,163 
  
1,401 
  
649 
  
509 
  
(142)
  
(29)
  
(173)
  
6,378 
Other income
  
884 
  
1,337 
  
218 
  
631 
  
1,319 
  
23 
  
(414)
  
3,998 
Total income
  
5,047 
  
2,738 
  
867 
  
1,140 
  
1,177 
  
(6)
  
(587)
  
10,376 
Insurance claims
  
- 
  
- 
  
- 
  
- 
  
(198)
  
- 
  
- 
  
(198)
Total income, net of insurance claims
  
5,047 
  
2,738 
  
867 
  
1,140 
  
979 
  
(6)
  
(587)
  
10,178 
Operating expenses
  
(2,221)
  
(1,312)
  
(471)
  
(792)
  
(415)
  
(56)
  
(65)
  
(5,332)
Trading surplus
  
2,826 
  
1,426 
  
396 
  
348 
  
564 
  
(62)
  
(652)
  
4,846 
Impairment
  
(1,173)
  
(1,557)
  
(160)
  
(2,532)
  
- 
  
- 
  
- 
  
(5,422)
Share of results of joint ventures and associates
  
3 
  
9 
  
- 
  
- 
  
- 
  
- 
  
- 
  
12 
Profit (loss) before tax and fair value unwind
  
1,656 
  
(122)
  
236 
  
(2,184)
  
564 
  
(62)
  
(652)
  
(564)
Fair value unwind
  
544 
  
1,551 
  
26 
  
104 
  
(21)
  
- 
  
(536)
  
1,668 
Profit (loss) before tax
  
2,200 
  
1,429 
  
262 
  
(2,080)
  
543 
  
(62)
  
(1,188)
  
1,104 
                                 
Banking net interest margin
2.26% 
  
1.64% 
  
4.35% 
  
1.47% 
              
2.07% 
Cost:income ratio1
  
44.0% 
  
47.9% 
  
54.3% 
  
69.5% 
  
42.4% 
          
52.4% 
 
 
1
Operating expenses divided by total income net of insurance claims.

 
COMBINED BUSINESSES SEGMENTAL ANALYSIS - GROUP (continued)
APPENDIX
Half-year to 30 June 2010 - As restated
 
   
Retail 
Wholesale 
Commercial 
  
Wealth 
and Int'l 
  
Insurance 
Group 
Operations 
  
Central 
items 
  
Group 
   
£m 
  
£m 
  
£m 
  
£m 
  
£m 
  
£m 
  
£m 
  
£m 
                                 
Net interest income
  
4,357 
  
1,408 
  
557 
  
545 
  
(19)
  
(31)
  
94 
  
6,911 
Other income
  
836 
  
1,988 
  
227 
  
605 
  
1,320 
  
15 
  
840 
  
5,831 
Total income
  
5,193 
  
3,396 
  
784 
  
1,150 
  
1,301 
  
(16)
  
934 
  
12,742 
Insurance claims
  
- 
  
- 
  
- 
  
- 
  
(261)
  
- 
  
- 
  
(261)
Total income, net of insurance claims
  
5,193 
  
3,396 
  
784 
  
1,150 
  
1,040 
  
(16)
  
934 
  
12,481 
Costs:
                                
Operating expenses
  
(2,233)
  
(1,401)
  
(481)
  
(744)
  
(423)
  
(36)
  
(117)
  
(5,435)
Impairment of tangible fixed assets
  
- 
  
(150)
  
- 
  
- 
  
- 
  
- 
  
- 
  
(150)
   
(2,233)
  
(1,551)
  
(481)
  
(744)
  
(423)
  
(36)
  
(117)
  
(5,585)
Trading surplus
  
2,960 
  
1,845 
  
303 
  
406 
  
617 
  
(52)
  
817 
  
6,896 
Impairment
  
(1,335)
  
(2,801)
  
(190)
  
(2,228)
  
- 
  
- 
  
- 
  
(6,554)
Share of results of joint ventures and associates
  
8 
  
(60)
  
- 
  
(2)
  
(10)
  
1 
  
1 
  
(62)
Profit (loss) before tax and fair value unwind
  
1,633 
  
(1,016)
  
113 
  
(1,824)
  
607 
  
(51)
  
818 
  
280 
Fair value unwind
  
583 
  
1,433 
  
30 
  
164 
  
(21)
  
- 
  
(866)
  
1,323 
Profit (loss) before tax
  
2,216 
  
417 
  
143 
  
(1,660)
  
586 
  
(51)
  
(48)
  
1,603 
                                 
Banking net interest margin
2.33% 
  
1.61% 
  
3.74% 
  
1.50% 
              
2.20% 
Cost:income ratio
  
43.0% 
  
41.3% 
  
61.4% 
  
64.7% 
  
40.7% 
          
43.5% 
 
Half-year to 30 June 2010 - As previously reported
 
   
Retail 
Wholesale 
Commercial 
  
Wealth 
and Int'l 
  
Insurance 
Group 
Operations 
  
Central 
items 
  
Group 
   
£m 
  
£m 
  
£m 
  
£m 
  
£m 
  
£m 
  
£m 
  
£m 
                                 
Net interest income
  
4,636 
  
1,576 
  
571 
  
596 
  
(136)
  
(36)
  
(296)
  
6,911 
Other income
  
836 
  
1,988 
  
227 
  
605 
  
1,320 
  
15 
  
840 
  
5,831 
Total income
  
5,472 
  
3,564 
  
798 
  
1,201 
  
1,184 
  
(21)
  
544 
  
12,742 
Insurance claims
  
- 
  
- 
  
- 
  
- 
  
(261)
  
- 
  
- 
  
(261)
Total income, net of insurance claims
  
5,472 
  
3,564 
  
798 
  
1,201 
  
923 
  
(21)
  
544 
  
12,481 
Costs:
                                
Operating expenses
  
(2,233)
  
(1,401)
  
(481)
  
(744)
  
(423)
  
(36)
  
(117)
  
(5,435)
Impairment of tangible fixed assets
  
- 
  
(150)
  
- 
  
- 
  
- 
  
- 
  
- 
  
(150)
   
(2,233)
  
(1,551)
  
(481)
  
(744)
  
(423)
  
(36)
  
(117)
  
(5,585)
Trading surplus
  
3,239 
  
2,013 
  
317 
  
457 
  
500 
  
(57)
  
427 
  
6,896 
Impairment
  
(1,335)
  
(2,801)
  
(190)
  
(2,228)
  
- 
  
- 
  
- 
  
(6,554)
Share of results of joint ventures and associates
  
8 
  
(60)
  
- 
  
(2)
  
(10)
  
1 
  
1 
  
(62)
Profit (loss) before tax and fair value unwind
  
1,912 
  
(848)
  
127 
  
(1,773)
  
490 
  
(56)
  
428 
  
280 
Fair value unwind
  
583 
  
1,433 
  
30 
  
164 
  
(21)
  
- 
  
(866)
  
1,323 
Profit (loss) before tax
  
2,495 
  
585 
  
157 
  
(1,609)
  
469 
  
(56)
  
(438)
  
1,603 
                                 
Banking net interest margin
2.44% 
  
1.51% 
  
3.82% 
  
1.65% 
              
2.08% 
Cost:income ratio
  
40.8% 
  
39.3% 
  
60.3% 
  
61.9% 
  
45.8% 
          
43.5% 

 
COMBINED BUSINESSES SEGMENTAL ANALYSIS - GROUP (continued)
APPENDIX
Half-year to 31 December 2010 - As restated
 
   
Retail 
Wholesale 
Commercial 
  
Wealth 
and Int'l 
  
Insurance 
Group 
Operations 
  
Central 
items 
  
Group 
   
£m 
  
£m 
  
£m 
  
£m 
  
£m 
  
£m 
  
£m 
  
£m 
                                 
Net interest income
  
4,291 
  
1,439 
  
570 
  
505 
  
(20)
  
(30)
  
156 
  
6,911 
Other income
  
771 
  
1,691 
  
230 
  
555 
  
1,494 
  
34 
  
(442)
  
4,333 
Total income
  
5,062 
  
3,130 
  
800 
  
1,060 
  
1,474 
  
4 
  
(286)
  
11,244 
Insurance claims
  
- 
  
- 
  
- 
  
- 
  
(281)
  
- 
  
- 
  
(281)
Total income, net of insurance claims
  
5,062 
  
3,130 
  
800 
  
1,060 
  
1,193 
  
4 
  
(286)
  
10,963 
Operating expenses
  
(2,411)
  
(1,351)
  
(511)
  
(792)
  
(431)
  
(7)
  
10 
  
(5,493)
Trading surplus
  
2,651 
  
1,779 
  
289 
  
268 
  
762 
  
(3)
  
(276)
  
5,470 
Impairment
  
(1,412)
  
(1,263)
  
(192)
  
(3,760)
  
- 
  
- 
  
- 
  
(6,627)
Share of results of joint ventures and associates
  
9 
  
(35)
  
- 
  
(6)
  
- 
  
2 
  
1 
  
(29)
Profit (loss) before tax and fair value unwind
  
1,248 
  
481 
  
97 
  
(3,498)
  
762 
  
(1)
  
(275)
  
(1,186)
Fair value unwind
  
522 
  
1,616 
  
51 
  
208 
  
(22)
  
- 
  
(580)
  
1,795 
Profit (loss) before tax
  
1,770 
  
2,097 
  
148 
  
(3,290)
  
740 
  
(1)
  
(855)
  
609 
                                 
Banking net interest margin
2.29% 
  
1.57% 
  
3.74% 
  
1.41% 
              
2.22% 
Cost:income ratio
  
47.6% 
  
43.2% 
  
63.9% 
  
74.7% 
  
36.1% 
          
50.1% 
 
Half-year to 31 December 2010 - As previously reported
 
   
Retail 
Wholesale 
Commercial 
  
Wealth 
and Int'l 
  
Insurance 
Group 
Operations 
  
Central 
items 
  
Group 
   
£m 
  
£m 
  
£m 
  
£m 
  
£m 
  
£m 
  
£m 
  
£m 
                                 
Net interest income
  
4,742 
  
1,675 
  
604 
  
580 
  
(127)
  
(36)
  
(527)
  
6,911 
Other income
  
771 
  
1,691 
  
230 
  
555 
  
1,494 
  
34 
  
(442)
  
4,333 
Total income
  
5,513 
  
3,366 
  
834 
  
1,135 
  
1,367 
  
(2)
  
(969)
  
11,244 
Insurance claims
  
- 
  
- 
  
- 
  
- 
  
(281)
  
- 
  
- 
  
(281)
Total income, net of insurance claims
  
5,513 
  
3,366 
  
834 
  
1,135 
  
1,086 
  
(2)
  
(969)
  
10,963 
Operating expenses
  
(2,411)
  
(1,351)
  
(511)
  
(792)
  
(431)
  
(7)
  
10 
  
(5,493)
Trading surplus
  
3,102 
  
2,015 
  
323 
  
343 
  
655 
  
(9)
  
(959)
  
5,470 
Impairment
  
(1,412)
  
(1,263)
  
(192)
  
(3,760)
  
- 
  
- 
  
- 
  
(6,627)
Share of results of joint ventures and associates
  
9 
  
(35)
  
- 
  
(6)
  
- 
  
2 
  
1 
  
(29)
Profit (loss) before tax and fair value unwind
  
1,699 
  
717 
  
131 
  
(3,423)
  
655 
  
(7)
  
(958)
  
(1,186)
Fair value unwind
  
522 
  
1,616 
  
51 
  
208 
  
(22)
  
- 
  
(580)
  
1,795 
Profit (loss) before tax
  
2,221 
  
2,333 
  
182 
  
(3,215)
  
633 
  
(7)
  
(1,538)
  
609 
                                 
Banking net interest margin
2.49% 
  
1.54% 
  
3.93% 
  
1.61% 
              
2.12% 
Cost:income ratio
  
43.7% 
  
40.1% 
  
61.3% 
  
69.8% 
  
39.7% 
          
50.1% 
 

COMBINED BUSINESSES SEGMENTAL ANALYSIS - GROUP (continued)
APPENDIX
Full-year to 31 December 2010 - As restated
 
   
Retail 
Wholesale 
Commercial 
  
Wealth 
and Int'l 
  
Insurance 
Group 
Operations 
  
Central 
items 
  
Group 
   
£m 
  
£m 
  
£m 
  
£m 
  
£m 
  
£m 
  
£m 
  
£m 
                                 
Net interest income
  
8,648 
  
2,847 
  
1,127 
  
1,050 
  
(39)
  
(61)
  
250 
  
13,822 
Other income
  
1,607 
  
3,679 
  
457 
  
1,160 
  
2,814 
  
49 
  
398 
  
10,164 
Total income
  
10,255 
  
6,526 
  
1,584 
  
2,210 
  
2,775 
  
(12)
  
648 
  
23,986 
Insurance claims
  
- 
  
- 
  
- 
  
- 
  
(542)
  
- 
  
- 
  
(542)
Total income, net of insurance claims
  
10,255 
  
6,526 
  
1,584 
  
2,210 
  
2,233 
  
(12)
  
648 
  
23,444 
Costs:
                                
Operating expenses
  
(4,644)
  
(2,752)
  
(992)
  
(1,536)
  
(854)
  
(43)
  
(107)
  
(10,928)
Impairment of tangible fixed assets
  
- 
  
(150)
  
- 
  
- 
  
- 
  
- 
  
- 
  
(150)
   
(4,644)
  
(2,902)
  
(992)
  
(1,536)
  
(854)
  
(43)
  
(107)
  
(11,078)
Trading surplus
  
5,611 
  
3,624 
  
592 
  
674 
  
1,379 
  
(55)
  
541 
  
12,366 
Impairment
  
(2,747)
  
(4,064)
  
(382)
  
(5,988)
  
- 
  
- 
  
- 
  
(13,181)
Share of results of joint ventures and associates
  
17 
  
(95)
  
- 
  
(8)
  
(10)
  
3 
  
2 
  
(91)
Profit (loss) before tax and fair value unwind
  
2,881 
  
(535)
  
210 
  
(5,322)
  
1,369 
  
(52)
  
543 
  
(906)
Fair value unwind
  
1,105 
  
3,049 
  
81 
  
372 
  
(43)
  
- 
  
(1,446)
  
3,118 
Profit (loss) before tax
  
3,986 
  
2,514 
  
291 
  
(4,950)
  
1,326 
  
(52)
  
(903)
  
2,212 
                                 
Banking net interest margin
2.31% 
  
1.59% 
  
3.74% 
  
1.46% 
              
2.21% 
Cost:income ratio
  
45.3% 
  
42.2% 
  
62.6% 
  
69.5% 
  
38.2% 
          
46.6% 
 
Full-year to 31 December 2010 - As previously reported
 
   
Retail 
Wholesale 
Commercial 
  
Wealth 
and Int'l 
  
Insurance 
Group 
Operations 
  
Central 
items 
  
Group 
   
£m 
  
£m 
  
£m 
  
£m 
  
£m 
  
£m 
  
£m 
  
£m 
                                 
Net interest income
  
9,378 
  
3,251 
  
1,175 
  
1,176 
  
(263)
  
(72)
  
(823)
  
13,822 
Other income
  
1,607 
  
3,679 
  
457 
  
1,160 
  
2,814 
  
49 
  
398 
  
10,164 
Total income
  
10,985 
  
6,930 
  
1,632 
  
2,336 
  
2,551 
  
(23)
  
(425)
  
23,986 
Insurance claims
  
- 
  
- 
  
- 
  
- 
  
(542)
  
- 
  
- 
  
(542)
Total income, net of insurance claims
  
10,985 
  
6,930 
  
1,632 
  
2,336 
  
2,009 
  
(23)
  
(425)
  
23,444 
Costs:
                                
Operating expenses
  
(4,644)
  
(2,752)
  
(992)
  
(1,536)
  
(854)
  
(43)
  
(107)
  
(10,928)
Impairment of tangible fixed assets
  
- 
  
(150)
  
- 
  
- 
  
- 
  
- 
  
- 
  
(150)
   
(4,644)
  
(2,902)
  
(992)
  
(1,536)
  
(854)
  
(43)
  
(107)
  
(11,078)
Trading surplus
  
6,341 
  
4,028 
  
640 
  
800 
  
1,155 
  
(66)
  
(532)
  
12,366 
Impairment
  
(2,747)
  
(4,064)
  
(382)
  
(5,988)
  
- 
  
- 
  
- 
  
(13,181)
Share of results of joint ventures and associates
  
17 
  
(95)
  
- 
  
(8)
  
(10)
  
3 
  
2 
  
(91)
Profit (loss) before tax and fair value unwind
  
3,611 
  
(131)
  
258 
  
(5,196)
  
1,145 
  
(63)
  
(530)
  
(906)
Fair value unwind
  
1,105 
  
3,049 
  
81 
  
372 
  
(43)
  
- 
  
(1,446)
  
3,118 
Profit (loss) before tax
  
4,716 
  
2,918 
  
339 
  
(4,824)
  
1,102 
  
(63)
  
(1,976)
  
2,212 
                                 
Banking net interest margin
2.46% 
  
1.52% 
  
3.88% 
  
1.63% 
              
2.10% 
Cost:income ratio
  
42.3% 
  
39.7% 
  
60.8% 
  
65.8% 
  
42.5% 
          
46.6% 
 

COMBINED BUSINESSES SEGMENTAL ANALYSIS - CORE (continued)
APPENDIX
Half-year to 30 June 2011 - As restated
 
   
Retail 
Wholesale 
Commercial 
  
Wealth 
and Int'l 
Insurance 
Group 
Operations 
  
Central 
items 
  
Group 
 
£m 
  
£m 
  
£m 
  
£m 
  
£m 
  
£m 
  
£m 
  
£m 
                                 
Net interest income
  
3,688 
  
819 
  
619 
  
186 
  
(30)
  
(29)
  
306 
  
5,559 
Other income
  
875 
  
1,608 
  
217 
  
504 
  
1,282 
  
23 
  
(414)
  
4,095 
Total income
  
4,563 
  
2,427 
  
836 
  
690 
  
1,252 
  
(6)
  
(108)
  
9,654 
Insurance claims
  
- 
  
- 
  
- 
  
- 
  
(198)
  
- 
  
- 
  
(198)
Total income, net of insurance claims
  
4,563 
  
2,427 
  
836 
  
690 
  
1,054 
  
(6)
  
(108)
  
9,456 
Operating expenses
  
(2,218)
  
(1,093)
  
(468)
  
(565)
  
(395)
  
(56)
  
(65)
  
(4,860)
Trading surplus
  
2,345 
  
1,334 
  
368 
  
125 
  
659 
  
(62)
  
(173)
  
4,596 
Impairment
  
(1,052)
  
(409)
  
(160)
  
(15)
  
- 
  
- 
  
- 
  
(1,636)
Share of results of joint ventures and associates
  
2 
  
- 
  
- 
  
1 
  
- 
  
- 
  
- 
  
3 
Profit (loss) before tax and fair value unwind
  
1,295 
  
925 
  
208 
  
111 
  
659 
  
(62)
  
(173)
  
2,963 
Fair value unwind
  
420 
  
10 
  
26 
  
4 
  
(21)
  
- 
  
(536)
  
(97)
Profit (loss) before tax
  
1,715 
  
935 
  
234 
  
115 
  
638 
  
(62)
  
(709)
  
2,866 
                                 
Banking net interest margin
2.23% 
  
1.79% 
  
4.39% 
  
4.11% 
              
2.43% 
Cost:income ratio1
  
48.6% 
  
45.0% 
  
56.0% 
  
81.9% 
  
37.5% 
          
51.4% 
 
Half-year to 30 June 2011 - As previously reported
 
   
Retail 
Wholesale 
Commercial 
  
Wealth 
and Int'l 
Insurance 
Group 
Operations 
  
Central 
items 
  
Group 
   
£m 
  
£m 
  
£m 
  
£m 
  
£m 
  
£m 
  
£m 
  
£m 
                                 
Net interest income
  
3,959 
  
888 
  
635 
  
221 
  
(148)
  
(29)
  
(173)
  
5,353 
Other income
  
875 
  
1,608 
  
217 
  
504 
  
1,282 
  
23 
  
(414)
  
4,095 
Total income
  
4,834 
  
2,496 
  
852 
  
725 
  
1,134 
  
(6)
  
(587)
  
9,448 
Insurance claims
  
- 
  
- 
  
- 
  
- 
  
(198)
  
- 
  
- 
  
(198)
Total income, net of insurance claims
  
4,834 
  
2,496 
  
852 
  
725 
  
936 
  
(6)
  
(587)
  
9,250 
Operating expenses
  
(2,218)
  
(1,093)
  
(468)
  
(565)
  
(395)
  
(56)
  
(65)
  
(4,860)
Trading surplus
  
2,616 
  
1,403 
  
384 
  
160 
  
541 
  
(62)
  
(652)
  
4,390 
Impairment
  
(1,052)
  
(409)
  
(160)
  
(15)
  
- 
  
- 
  
- 
  
(1,636)
Share of results of joint ventures and associates
  
2 
  
- 
  
- 
  
1 
  
- 
  
- 
  
- 
  
3 
Profit (loss) before tax and fair value unwind
  
1,566 
  
994 
  
224 
  
146 
  
541 
  
(62)
  
(652)
  
2,757 
Fair value unwind
  
420 
  
10 
  
26 
  
4 
  
(21)
  
- 
  
(536)
  
(97)
Profit (loss) before tax
  
1,986 
  
1,004 
  
250 
  
150 
  
520 
  
(62)
  
(1,188)
  
2,660 
                                 
Banking net interest margin
2.34% 
  
1.86% 
  
4.50% 
  
4.50% 
              
2.35% 
Cost:income ratio1
  
45.9% 
  
43.8% 
  
54.9% 
  
77.9% 
              
52.5% 
 
 
1
Operating expenses divided by total income net of insurance claims.
 
 

COMBINED BUSINESSES SEGMENTAL ANALYSIS - CORE (continued)
APPENDIX
Half-year to 30 June 2010 - As restated
 
   
Retail 
Wholesale 
Commercial 
  
Wealth 
and Int'l 
  
Insurance 
Group 
Operations 
  
Central 
items 
  
Group 
   
£m 
  
£m 
  
£m 
  
£m 
  
£m 
  
£m 
  
£m 
  
£m 
                                 
Net interest income
  
4,083 
  
955 
  
536 
  
145 
  
(23)
  
(31)
  
94 
  
5,759 
Other income
  
823 
  
1,524 
  
226 
  
503 
  
1,287 
  
15 
  
840 
  
5,218 
Total income
  
4,906 
  
2,479 
  
762 
  
648 
  
1,264 
  
(16)
  
934 
  
10,977 
Insurance claims
  
- 
  
- 
  
- 
  
- 
  
(261)
  
- 
  
- 
  
(261)
Total income, net of insurance claims
  
4,906 
  
2,479 
  
762 
  
648 
  
1,003 
  
(16)
  
934 
  
10,716 
Operating expenses
  
(2,229)
  
(1,108)
  
(477)
  
(531)
  
(410)
  
(36)
  
(117)
  
(4,908)
Trading surplus
  
2,677 
  
1,371 
  
285 
  
117 
  
593 
  
(52)
  
817 
  
5,808 
Impairment
  
(1,286)
  
(162)
  
(189)
  
(16)
  
- 
  
- 
  
- 
  
(1,653)
Share of results of joint ventures and associates
  
8 
  
3 
  
- 
  
(1)
  
(10)
  
1 
  
1 
  
2 
Profit (loss) before tax and fair value unwind
  
1,399 
  
1,212 
  
96 
  
100 
  
583 
  
(51)
  
818 
  
4,157 
Fair value unwind
  
513 
  
9 
  
30 
  
14 
  
(21)
  
- 
  
(866)
  
(321)
Profit (loss) before tax
  
1,912 
  
1,221 
  
126 
  
114 
  
562 
  
(51)
  
(48)
  
3,836 
                                 
Banking net interest margin
2.39% 
  
1.62% 
  
3.88% 
  
3.24% 
              
2.46% 
Cost:income ratio
  
45.4% 
  
44.7% 
  
62.6% 
  
81.9% 
  
40.9% 
          
45.8% 
 
Half-year to 30 June 2010 - As previously reported
 
   
Retail 
Wholesale 
Commercial 
  
Wealth 
and Int'l 
  
Insurance 
Group 
Operations 
  
Central 
items 
  
Group 
   
£m 
  
£m 
  
£m 
  
£m 
  
£m 
  
£m 
  
£m 
  
£m 
                                 
Net interest income
  
4,380 
  
998 
  
551 
  
158 
  
(141)
  
(36)
  
(296)
  
5,614 
Other income
  
823 
  
1,524 
  
226 
  
503 
  
1,287 
  
15 
  
840 
  
5,218 
Total income
  
5,203 
  
2,522 
  
777 
  
661 
  
1,146 
  
(21)
  
544 
  
10,832 
Insurance claims
  
- 
  
- 
  
- 
  
- 
  
(261)
  
- 
  
- 
  
(261)
Total income, net of insurance claims
  
5,203 
  
2,522 
  
777 
  
661 
  
885 
  
(21)
  
544 
  
10,571 
Operating expenses
  
(2,229)
  
(1,108)
  
(477)
  
(531)
  
(410)
  
(36)
  
(117)
  
(4,908)
Trading surplus
  
2,974 
  
1,414 
  
300 
  
130 
  
475 
  
(57)
  
427 
  
5,663 
Impairment
  
(1,286)
  
(162)
  
(189)
  
(16)
  
- 
  
- 
  
- 
  
(1,653)
Share of results of joint ventures and associates
  
8 
  
3 
  
- 
  
(1)
  
(10)
  
1 
  
1 
  
2 
Profit (loss) before tax and fair value unwind
  
1,696 
  
1,255 
  
111 
  
113 
  
465 
  
(56)
  
428 
  
4,012 
Fair value unwind
  
513 
  
9 
  
30 
  
14 
  
(21)
  
- 
  
(866)
  
(321)
Profit (loss) before tax
  
2,209 
  
1,264 
  
141 
  
127 
  
444 
  
(56)
  
(438)
  
3,691 
                                 
Banking net interest margin
2.52% 
  
1.51% 
  
3.97% 
  
3.05% 
              
2.28% 
Cost:income ratio
  
42.8% 
  
43.9% 
  
61.4% 
  
80.3% 
              
46.4% 
 
 
COMBINED BUSINESSES SEGMENTAL ANALYSIS - CORE (continued)
APPENDIX
Half-year to 31 December 2010 - As restated
 
   
Retail 
Wholesale 
Commercial 
  
Wealth 
and Int'l 
  
Insurance 
Group 
Operations 
  
Central 
items 
  
Group 
   
£m 
  
£m 
  
£m 
  
£m 
  
£m 
  
£m 
  
£m 
  
£m 
                                 
Net interest income
  
4,029 
  
822 
  
552 
  
160 
  
(24)
  
(30)
  
156 
  
5,665 
Other income
  
760 
  
1,492 
  
229 
  
487 
  
1,363 
  
34 
  
(442)
  
3,923 
Total income
  
4,789 
  
2,314 
  
781 
  
647 
  
1,339 
  
4 
  
(286)
  
9,588 
Insurance claims
  
- 
  
- 
  
- 
  
- 
  
(281)
  
- 
  
- 
  
(281)
Total income, net of insurance claims
  
4,789 
  
2,314 
  
781 
  
647 
  
1,058 
  
4 
  
(286)
  
9,307 
Operating expenses
  
(2,408)
  
(1,083)
  
(507)
  
(578)
  
(403)
  
(7)
  
10 
  
(4,976)
Trading surplus
  
2,381 
  
1,231 
  
274 
  
69 
  
655 
  
(3)
  
(276)
  
4,331 
Impairment
  
(1,343)
  
(414)
  
(192)
  
(10)
  
- 
  
- 
  
- 
  
(1,959)
Share of results of joint ventures and associates
  
9 
  
(1)
  
- 
  
1 
  
- 
  
2 
  
1 
  
12 
Profit (loss) before tax and fair value unwind
  
1,047 
  
816 
  
82 
  
60 
  
655 
  
(1)
  
(275)
  
2,384 
Fair value unwind
  
452 
  
15 
  
51 
  
16 
  
(22)
  
- 
  
(580)
  
(68)
Profit (loss) before tax
  
1,499 
  
831 
  
133 
  
76 
  
633 
  
(1)
  
(855)
  
2,316 
                                 
Banking net interest margin
2.35% 
  
1.55% 
  
3.84% 
  
3.38% 
              
2.50% 
Cost:income ratio
  
50.3% 
  
46.8% 
  
64.9% 
  
89.3% 
  
38.1% 
          
53.5% 
 
Half-year to 31 December 2010 - As previously reported
 
   
Retail 
Wholesale 
Commercial 
  
Wealth 
and Int'l 
  
Insurance 
Group 
Operations 
  
Central 
items 
  
Group 
   
£m 
  
£m 
  
£m 
  
£m 
  
£m 
  
£m 
  
£m 
  
£m 
                                 
Net interest income
  
4,464 
  
882 
  
588 
  
182 
  
(133)
  
(36)
  
(527)
  
5,420 
Other income
  
760 
  
1,492 
  
229 
  
487 
  
1,363 
  
34 
  
(442)
  
3,923 
Total income
  
5,224 
  
2,374 
  
817 
  
669 
  
1,230 
  
(2)
  
(969)
  
9,343 
Insurance claims
  
- 
  
- 
  
- 
  
- 
  
(281)
  
- 
  
- 
  
(281)
Total income, net of insurance claims
  
5,224 
  
2,374 
  
817 
  
669 
  
949 
  
(2)
  
(969)
  
9,062 
Operating expenses
  
(2,408)
  
(1,083)
  
(507)
  
(578)
  
(403)
  
(7)
  
10 
  
(4,976)
Trading surplus
  
2,816 
  
1,291 
  
310 
  
91 
  
546 
  
(9)
  
(959)
  
4,086 
Impairment
  
(1,343)
  
(414)
  
(192)
  
(10)
  
- 
  
- 
  
- 
  
(1,959)
Share of results of joint ventures and associates
  
9 
  
(1)
  
- 
  
1 
  
- 
  
2 
  
1 
  
12 
Profit (loss) before tax and fair value unwind
  
1,482 
  
876 
  
118 
  
82 
  
546 
  
(7)
  
(958)
  
2,139 
Fair value unwind
  
452 
  
15 
  
51 
  
16 
  
(22)
  
- 
  
(580)
  
(68)
Profit (loss) before tax
  
1,934 
  
891 
  
169 
  
98 
  
524 
  
(7)
  
(1,538)
  
2,071 
                                 
Banking net interest margin
2.56% 
  
1.53% 
  
4.06% 
  
3.32% 
              
2.33% 
Cost:income ratio
  
46.1% 
  
45.6% 
  
62.1% 
  
86.4% 
              
54.9% 
 
 
COMBINED BUSINESSES SEGMENTAL ANALYSIS - CORE (continued)
APPENDIX
Full-year to 31 December 2010 - As restated
 
   
Retail 
Wholesale 
Commercial 
  
Wealth 
and Int'l 
  
Insurance 
Group 
Operations 
  
Central 
items 
  
Group 
   
£m 
  
£m 
  
£m 
  
£m 
  
£m 
  
£m 
  
£m 
  
£m 
                                 
Net interest income
  
8,112 
  
1,777 
  
1,088 
  
305 
  
(47)
  
(61)
  
250 
  
11,424 
Other income
  
1,583 
  
3,016 
  
455 
  
990 
  
2,650 
  
49 
  
398 
  
9,141 
Total income
  
9,695 
  
4,793 
  
1,543 
  
1,295 
  
2,603 
  
(12)
  
648 
  
20,565 
Insurance claims
  
- 
  
- 
  
- 
  
- 
  
(542)
  
- 
  
- 
  
(542)
Total income, net of insurance claims
  
9,695 
  
4,793 
  
1,543 
  
1,295 
  
2,061 
  
(12)
  
648 
  
20,023 
Operating expenses
  
(4,637)
  
(2,191)
  
(984)
  
(1,109)
  
(813)
  
(43)
  
(107)
  
(9,884)
Trading surplus
  
5,058 
  
2,602 
  
559 
  
186 
  
1,248 
  
(55)
  
541 
  
10,139 
Impairment
  
(2,629)
  
(576)
  
(381)
  
(26)
  
- 
  
- 
  
- 
  
(3,612)
Share of results of joint ventures and associates
  
17 
  
2 
  
- 
  
- 
  
(10)
  
3 
  
2 
  
14 
Profit (loss) before tax and fair value unwind
  
2,446 
  
2,028 
  
178 
  
160 
  
1,238 
  
(52)
  
543 
  
6,541 
Fair value unwind
  
965 
  
24 
  
81 
  
30 
  
(43)
  
- 
  
(1,446)
  
(389)
Profit (loss) before tax
  
3,411 
  
2,052 
  
259 
  
190 
  
1,195 
  
(52)
  
(903)
  
6,152 
                                 
Banking net interest margin
2.37% 
  
1.59% 
  
3.86% 
  
3.31% 
              
2.48% 
Cost:income ratio
  
47.8% 
  
45.7% 
  
63.8% 
  
85.6% 
  
39.4% 
          
49.4% 
 
Full-year to 31 December 2010 - As previously reported
 
   
Retail 
Wholesale 
Commercial 
  
Wealth 
and Int'l 
  
Insurance 
Group 
Operations 
  
Central 
items 
  
Group 
   
£m 
  
£m 
  
£m 
  
£m 
  
£m 
  
£m 
  
£m 
  
£m 
                                 
Net interest income
  
8,844 
  
1,880 
  
1,139 
  
340 
  
(274)
  
(72)
  
(823)
  
11,034 
Other income
  
1,583 
  
3,016 
  
455 
  
990 
  
2,650 
  
49 
  
398 
  
9,141 
Total income
  
10,427 
  
4,896 
  
1,594 
  
1,330 
  
2,376 
  
(23)
  
(425)
  
20,175 
Insurance claims
  
- 
  
- 
  
- 
  
- 
  
(542)
  
- 
  
- 
  
(542)
Total income, net of insurance claims
  
10,427 
  
4,896 
  
1,594 
  
1,330 
  
1,834 
  
(23)
  
(425)
  
19,633 
Operating expenses
  
(4,637)
  
(2,191)
  
(984)
  
(1,109)
  
(813)
  
(43)
  
(107)
  
(9,884)
Trading surplus
  
5,790 
  
2,705 
  
610 
  
221 
  
1,021 
  
(66)
  
(532)
  
9,749 
Impairment
  
(2,629)
  
(576)
  
(381)
  
(26)
  
- 
  
- 
  
- 
  
(3,612)
Share of results of joint ventures and associates
  
17 
  
2 
  
- 
  
- 
  
(10)
  
3 
  
2 
  
14 
Profit (loss) before tax and fair value unwind
  
3,178 
  
2,131 
  
229 
  
195 
  
1,011 
  
(63)
  
(530)
  
6,151 
Fair value unwind
  
965 
  
24 
  
81 
  
30 
  
(43)
  
- 
  
(1,446)
  
(389)
Profit (loss) before tax
  
4,143 
  
2,155 
  
310 
  
225 
  
968 
  
(63)
  
(1,976)
  
5,762 
                                 
Banking net interest margin
2.54% 
  
1.52% 
  
4.02% 
  
3.18% 
              
2.31% 
Cost:income ratio
  
44.5% 
  
44.8% 
  
61.7% 
  
83.4% 
              
50.3% 
 

COMBINED BUSINESSES SEGMENTAL ANALYSIS - NON-CORE (continued)
APPENDIX
Half-year to 30 June 2011 - As restated
 
   
Retail 
Wholesale 
Commercial 
  
Wealth 
and Int'l 
Insurance 
Group 
Operations 
  
Central 
items 
  
Group 
 
£m 
  
£m 
  
£m 
  
£m 
  
£m 
  
£m 
  
£m 
  
£m 
                                 
Net interest income
  
182 
  
352 
  
15 
  
265 
  
5 
          
819 
Other income
  
9 
  
(271)
  
1 
  
127 
  
37 
          
(97)
Total income
  
191 
  
81 
  
16 
  
392 
  
42 
          
722 
Insurance claims
  
- 
  
- 
  
- 
  
- 
  
- 
          
- 
Total income, net of insurance claims
  
191 
  
81 
  
16 
  
392 
  
42 
          
722 
Operating expenses
  
(3)
  
(219)
  
(3)
  
(227)
  
(20)
          
(472)
Trading surplus
  
188 
  
(138)
  
13 
  
165 
  
22 
          
250 
Impairment
  
(121)
  
(1,148)
  
- 
  
(2,517)
  
- 
          
(3,786)
Share of results of joint ventures and associates
  
1 
  
9 
  
- 
  
(1)
  
- 
          
9 
Profit (loss) before tax and fair value unwind
  
68 
  
(1,277)
  
13 
  
(2,353)
  
22 
          
(3,527)
Fair value unwind
  
124 
  
1,541 
  
- 
  
100 
  
- 
          
1,765 
Profit (loss) before tax
  
192 
  
264 
  
13 
  
(2,253)
  
22 
          
(1,762)
                                 
Banking net interest margin
1.19% 
  
1.47% 
  
2.01% 
  
0.88% 
              
1.20% 
 
Half-year to 30 June 2011 - As previously reported
 
   
Retail 
Wholesale 
Commercial 
  
Wealth 
and Int'l 
Insurance 
Group 
Operations 
  
Central 
items 
  
Group 
   
£m 
  
£m 
  
£m 
  
£m 
  
£m 
  
£m 
  
£m 
  
£m 
                                 
Net interest income
  
204 
  
513 
  
14 
  
288 
  
6 
          
1,025 
Other income
  
9 
  
(271)
  
1 
  
127 
  
37 
          
(97)
Total income
  
213 
  
242 
  
15 
  
415 
  
43 
          
928 
Insurance claims
  
- 
  
- 
  
- 
  
- 
  
- 
          
- 
Total income, net of insurance claims
  
213 
  
242 
  
15 
  
415 
  
43 
          
928 
Operating expenses
  
(3)
  
(219)
  
(3)
  
(227)
  
(20)
          
(472)
Trading surplus
  
210 
  
23 
  
12 
  
188 
  
23 
          
456 
Impairment
  
(121)
  
(1,148)
  
- 
  
(2,517)
  
- 
          
(3,786)
Share of results of joint ventures and associates
  
1 
  
9 
  
- 
  
(1)
  
- 
          
9 
Profit (loss) before tax and fair value unwind
  
90 
  
(1,116)
  
12 
  
(2,330)
  
23 
          
(3,321)
Fair value unwind
  
124 
  
1,541 
  
- 
  
100 
  
- 
          
1,765 
Profit (loss) before tax
  
214
  
425 
  
12 
  
(2,230)
  
23 
          
(1,556)
                                 
Banking net interest margin
1.36%
  
1.36%
  
1.76%
  
1.01%
              
1.23%
 
 
COMBINED BUSINESSES SEGMENTAL ANALYSIS - NON-CORE (continued)
APPENDIX
Half-year to 30 June 2010 - As restated
 
   
Retail 
Wholesale 
Commercial 
  
Wealth 
and Int'l 
  
Insurance 
Group 
Operations 
  
Central 
items 
  
Group 
   
£m 
  
£m 
  
£m 
  
£m 
  
£m 
  
£m 
  
£m 
  
£m 
                                 
Net interest income
  
274 
  
453 
  
21 
  
400 
  
4 
          
1,152 
Other income
  
13 
  
464 
  
1 
  
102 
  
33 
          
613 
Total income
  
287 
  
917 
  
22 
  
502 
  
37 
          
1,765 
Insurance claims
  
- 
  
- 
  
- 
  
- 
  
- 
          
- 
Total income, net of insurance claims
  
287 
  
917 
  
22 
  
502 
  
37 
          
1,765 
Costs:
                                
Operating expenses
  
(4)
  
(293)
  
(4)
  
(213)
  
(13)
          
(527)
Impairment of tangible fixed assets
  
- 
  
(150)
  
- 
  
- 
  
- 
          
(150)
   
(4)
  
(443)
  
(4)
  
(213)
  
(13)
          
(677)
Trading surplus
  
283 
  
474 
  
18 
  
289 
  
24 
          
1,088 
Impairment
  
(49)
  
(2,639)
  
(1)
  
(2,212)
  
- 
          
(4,901)
Share of results of joint ventures and associates
  
- 
  
(63)
  
- 
  
(1)
  
- 
          
(64)
Profit (loss) before tax and fair value unwind
  
234 
  
(2,228)
  
17 
  
(1,924)
  
24 
          
(3,877)
Fair value unwind
  
70 
  
1,424 
  
- 
  
150 
  
- 
          
1,644 
Profit (loss) before tax
  
304 
  
(804)
  
17 
  
(1,774)
  
24 
          
(2,233)
                                 
Banking net interest margin
1.65% 
  
1.61% 
  
1.98% 
  
1.25% 
              
1.49% 
 
Half-year to 30 June 2010 - As previously reported
 
   
Retail 
Wholesale 
Commercial 
  
Wealth 
and Int'l 
  
Insurance 
Group 
Operations 
  
Central 
items 
  
Group 
   
£m 
  
£m 
  
£m 
  
£m 
  
£m 
  
£m 
  
£m 
  
£m 
                                 
Net interest income
  
256 
  
578 
  
20 
  
438 
  
5 
          
1,297 
Other income
  
13 
  
464 
  
1 
  
102 
  
33 
          
613 
Total income
  
269 
  
1,042 
  
21 
  
540 
  
38 
          
1,910 
Insurance claims
  
- 
  
- 
  
- 
  
- 
  
- 
          
- 
Total income, net of insurance claims
  
269 
  
1,042 
  
21 
  
540 
  
38 
          
1,910 
Costs:
                                
Operating expenses
  
(4)
  
(293)
  
(4)
  
(213)
  
(13)
          
(527)
Impairment of tangible fixed assets
  
- 
  
(150)
  
- 
  
- 
  
- 
          
(150)
   
(4)
  
(443)
  
(4)
  
(213)
  
(13)
          
(677)
Trading surplus
  
265 
  
599 
  
17 
  
327 
  
25 
          
1,233 
Impairment
  
(49)
  
(2,639)
  
(1)
  
(2,212)
  
- 
          
(4,901)
Share of results of joint ventures and associates
  
- 
  
(63)
  
- 
  
(1)
  
- 
          
(64)
Profit (loss) before tax and fair value unwind
  
216 
  
(2,103)
  
16 
  
(1,886)
  
25 
          
(3,732)
Fair value unwind
  
70 
  
1,424 
  
- 
  
150 
  
- 
          
1,644 
Profit (loss) before tax
  
286 
  
(679)
  
16 
  
(1,736)
  
25 
          
(2,088)
                                 
Banking net interest margin
1.57% 
  
1.51% 
  
1.85% 
  
1.44% 
              
1.50% 
 

COMBINED BUSINESSES SEGMENTAL ANALYSIS - NON-CORE (continued)
APPENDIX
Half-year to 31 December 2010 - As restated
 
   
Retail 
Wholesale 
Commercial 
  
Wealth 
and Int'l 
  
Insurance 
Group 
Operations 
  
Central 
items 
  
Group 
   
£m 
  
£m 
  
£m 
  
£m 
  
£m 
  
£m 
  
£m 
  
£m 
                                 
Net interest income
  
262 
  
617 
  
18 
  
345 
  
4 
          
1,246 
Other income
  
11 
  
199 
  
1 
  
68 
  
131 
          
410 
Total income
  
273 
  
816 
  
19 
  
413 
  
135 
          
1,656 
Insurance claims
  
- 
  
- 
  
- 
  
- 
  
- 
          
- 
Total income, net of insurance claims
  
273 
  
816 
  
19 
  
413 
  
135 
          
1,656 
Operating expenses
  
(3)
  
(268)
  
(4)
  
(214)
  
(28)
          
(517)
Trading surplus
  
270 
  
548 
  
15 
  
199 
  
107 
          
1,139 
Impairment
  
(69)
  
(849)
  
- 
  
(3,750)
  
- 
          
(4,668)
Share of results of joint ventures and associates
  
- 
  
(34)
  
- 
  
(7)
  
- 
          
(41)
Profit (loss) before tax and fair value unwind
  
201 
  
(335)
  
15 
  
(3,558)
  
107 
          
(3,570)
Fair value unwind
  
70 
  
1,601 
  
- 
  
192 
  
- 
          
1,863 
Profit (loss) before tax
  
271 
  
1,266 
  
15 
  
(3,366)
  
107 
          
(1,707)
                                 
Banking net interest margin
1.63% 
  
1.59% 
  
1.97% 
  
1.10% 
              
1.43% 
 
Half-year to 31 December 2010 - As previously reported
 
   
Retail 
Wholesale 
Commercial 
  
Wealth 
and Int'l 
  
Insurance 
Group 
Operations 
  
Central 
items 
  
Group 
   
£m 
  
£m 
  
£m 
  
£m 
  
£m 
  
£m 
  
£m 
  
£m 
                                 
Net interest income
  
278 
  
793 
  
16 
  
398 
  
6 
          
1,491 
Other income
  
11 
  
199 
  
1 
  
68 
  
131 
          
410 
Total income
  
289 
  
992 
  
17 
  
466 
  
137 
          
1,901 
Insurance claims
  
- 
  
- 
  
- 
  
- 
  
- 
          
- 
Total income, net of insurance claims
  
289 
  
992 
  
17 
  
466 
  
137 
          
1,901 
Operating expenses
  
(3)
  
(268)
  
(4)
  
(214)
  
(28)
          
(517)
Trading surplus
  
286 
  
724 
  
13 
  
252 
  
109 
          
1,384 
Impairment
  
(69)
  
(849)
  
- 
  
(3,750)
  
- 
          
(4,668)
Share of results of joint ventures and associates
  
- 
  
(34)
  
- 
  
(7)
  
- 
          
(41)
Profit (loss) before tax and fair value unwind
  
217 
  
(159)
  
13 
  
(3,505)
  
109 
          
(3,325)
Fair value unwind
  
70 
  
1,601 
  
- 
  
192 
  
- 
          
1,863 
Profit (loss) before tax
  
287 
  
1,442 
  
13 
  
(3,313)
  
109 
          
(1,462)
                                 
Banking net interest margin
1.75% 
  
1.56% 
  
1.88% 
  
1.34% 
              
1.52% 
 
 
COMBINED BUSINESSES SEGMENTAL ANALYSIS - NON-CORE (continued)
APPENDIX
Full-year to 31 December 2010 - As restated
 
   
Retail 
Wholesale 
Commercial 
  
Wealth 
and Int'l 
  
Insurance 
Group 
Operations 
  
Central 
items 
  
Group 
   
£m 
  
£m 
  
£m 
  
£m 
  
£m 
  
£m 
  
£m 
  
£m 
                                 
Net interest income
  
536 
  
1,070 
  
39 
  
745 
  
8 
          
2,398 
Other income
  
24 
  
663 
  
2 
  
170 
  
164 
          
1,023 
Total income
  
560 
  
1,733 
  
41 
  
915 
  
172 
          
3,421 
Insurance claims
  
- 
  
- 
  
- 
  
- 
  
- 
          
- 
Total income, net of insurance claims
  
560 
  
1,733 
  
41 
  
915 
  
172 
          
3,421 
Costs:
                                
Operating expenses
  
(7)
  
(561)
  
(8)
  
(427)
  
(41)
          
(1,044)
Impairment of tangible fixed assets
  
- 
  
(150)
  
- 
  
- 
  
- 
          
(150)
   
(7)
  
(711)
  
(8)
  
(427)
  
(41)
          
(1,194)
Trading surplus
  
553 
  
1,022 
  
33 
  
488 
  
131 
          
2,227 
Impairment
  
(118)
  
(3,488)
  
(1)
  
(5,962)
  
- 
          
(9,569)
Share of results of joint ventures and associates
  
- 
  
(97)
  
- 
  
(8)
  
- 
          
(105)
Profit (loss) before tax and fair value unwind
  
435 
  
(2,563)
  
32 
  
(5,482)
  
131 
          
(7,447)
Fair value unwind
  
140 
  
3,025 
  
- 
  
342 
  
- 
          
3,507 
Profit (loss) before tax
  
575 
  
462 
  
32 
  
(5,140)
  
131 
          
(3,940)
                                 
Banking net interest margin
1.64% 
  
1.60% 
  
1.97% 
  
1.18% 
              
1.46% 
 
Full-year to 31 December 2010 - As previously reported
 
   
Retail 
Wholesale 
Commercial 
  
Wealth 
and Int'l 
  
Insurance 
Group 
Operations 
  
Central 
items 
  
Group 
   
£m 
  
£m 
  
£m 
  
£m 
  
£m 
  
£m 
  
£m 
  
£m 
                                 
Net interest income
  
534 
  
1,371 
  
36 
  
836 
  
11 
          
2,788 
Other income
  
24 
  
663 
  
2 
  
170 
  
164 
          
1,023 
Total income
  
558 
  
2,034 
  
38 
  
1,006 
  
175 
          
3,811 
Insurance claims
  
- 
  
- 
  
- 
  
- 
  
- 
          
- 
Total income, net of insurance claims
  
558 
  
2,034 
  
38 
  
1,006 
  
175 
          
3,811 
Costs:
                                
Operating expenses
  
(7)
  
(561)
  
(8)
  
(427)
  
(41)
          
(1,044)
Impairment of tangible fixed assets
  
- 
  
(150)
  
- 
  
- 
  
- 
          
(150)
   
(7)
  
(711)
  
(8)
  
(427)
  
(41)
          
(1,194)
Trading surplus
  
551 
  
1,323 
  
30 
  
579 
  
134 
          
2,617 
Impairment
  
(118)
  
(3,488)
  
(1)
  
(5,962)
  
- 
          
(9,569)
Share of results of joint ventures and associates
  
- 
  
(97)
  
- 
  
(8)
  
- 
          
(105)
Profit (loss) before tax and fair value unwind
  
433 
  
(2,262)
  
29 
  
(5,391)
  
134 
          
(7,057)
Fair value unwind
  
140 
  
3,025 
  
- 
  
342 
  
- 
          
3,507 
Profit (loss) before tax
  
573 
  
763 
  
29 
  
(5,049)
  
134 
          
(3,550)
                                 
Banking net interest margin
1.66% 
  
1.53% 
  
1.87% 
  
1.39% 
              
1.51% 
 
 
 

 
 
 

 
 
Signatures
 
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
                                                                                                                                                LLOYDS BANKING GROUP plc
                                                                                                                                                (Registrant)
 
 
 
                                                                                                                                                 By: Kate O'Neill 
 
                                                                                                                                                 Name: Kate O'Neill
 
                                     Title: Managing Director
                                       Investor Relations
                                               
                                           
 
 
 
 
 
                                                                                                                                                                                         
Date:  25 October 2011