Consolidated Balance Sheet

at 31 December 2004

			£m
	Notes	At 31 December 2004	At 31 December 2003 (Restated)*
Intangible assets
Goodwill	18	1,152	1,264
Insurance and other assets
Investments
Land and buildings	19	773	677
Other financial investments	20	25,840	22,756
		26,613	23,433
Assets held to cover linked liabilities	20	7,977	5,860
	5(i)	34,590	29,293
Reinsurers’ share of technical provisions
Provision for unearned premiums		14	19
Long term business provision		269	301
Claims outstanding		70	54
	31	353	374
Debtors
Debtors arising from direct insurance operations	21	173	225
Debtors arising from reinsurance operations		22	7
Other debtors		305	470
		500	702
Other assets
Tangible fixed assets	22	74	81
Cash at bank and in hand		504	695
Present value of acquired in-force business	23	164	194
Other assets	24	425	332
		1,167	1,302
Prepayments and accrued income
Accrued interest and rent		210	184
Deferred acquisition costs	25	665	427
Other prepayments and accrued income		123	127
		998	738
Total insurance and other assets		37,608	32,409
Banking assets
Cash and balances at central banks		926	1,025
Treasury bills and other eligible bills	26(a)	1,485	888
Loans and advances to banks	26(b)	2,522	2,092
Loans and advances to customers	26(c)	17,174	15,136
Debt securities	26(f)	1,934	1,420
Equity shares and other variable yield securities	26(g)	259	317
Interests in associated undertakings	26(h)	91	144
Tangible fixed assets	22	223	221
Land and buildings	19	160	141
Other assets	24	2,456	2,396
Prepayments and accrued income		270	262
Total banking assets		27,500	24,042
Total assets		66,260	57,715

			£m
	Notes	At 31 December 2004	At 31 December 2003 (Restated)*
Capital and reserves
Called up share capital	27	386	384
Share premium account	27	600	587
Merger reserve	27	184	184
Profit and loss account	27	2,444	2,000
		3,614	3,155
Reserve in respect of own shares held in policyholders’ funds	27	(369)	(401)
Equity shareholders’ funds		3,245	2,754
Minority interests
Equity	27	869	652
Non-equity	27	658	658
		1,527	1,310
Subordinated liabilities	27	–	15
Insurance and other liabilities
Technical provisions
Provision for unearned premiums		77	80
Long term business provision		23,138	20,660
Claims outstanding		680	417
	31	23,895	21,157
Technical provisions for linked liabilities		7,977	5,860
Provisions for other risks and charges	32	639	551
Creditors
Creditors arising from direct insurance operations	33(a)	305	478
Creditors arising from reinsurance operations		10	3
Other creditors including tax and social security	33(b)	1,783	1,806
Amounts owed to credit institutions	34	467	377
Convertible loan stock	34(a)(i)	332	357
		2,897	3,021
Accruals and deferred income		181	135
Total insurance and other liabilities		35,589	30,724
Banking liabilities
Deposits by banks	35	2,821	4,381
Customer accounts	36	17,508	13,976
Debt securities in issue	37	1,563	468
Other liabilities	38	3,228	3,200
Provisions for deferred tax	39	95	229
Subordinated liabilities	30	678	648
Convertible loan stock	34(a)(ii)	6	10
Total banking liabilities		25,899	22,912
Total liabilities		66,260	57,715
Commitments	44	1,072	1,017
Contingent liabilities	45	1,907	2,422

* Comparative figures have been restated to reflect the adoption of Urgent Issues Taskforce Abstract 38 “Accounting for ESOP Trusts”. Details of the changes are set out in notes 1, 3 and 27.

FINANCIAL STATEMENTS:

Consolidated Balance Sheet

at 31 December 2004