Achieved Profits Basis Supplementary Information
for the year ended 31 December 2004
1 CONSOLIDATED PROFIT AND LOSS ACCOUNT ON AN ACHIEVED PROFITS BASIS
| £m | ||
| Year to 31 December 2004 |
Year to 31 December 2003 (Restated)*** |
|
| South Africa | ||
| Life assurance | 623 |
475 |
| Asset management | 53 |
55 |
| Banking | 177 |
(10) |
| General insurance | 89 |
73 |
942 |
593 |
|
| United States | ||
| Life assurance | 104 |
127 |
| Asset management | 89 |
81 |
193 |
208 |
|
| United Kingdom and Rest of World | ||
| Life assurance | 22 |
(2) |
| Asset management | 10 |
(8) |
| Banking | 14 |
4 |
46 |
(6) |
|
1,181 |
795 |
|
| Other shareholders' income/(expenses) | (33) |
(40) |
| Debt service costs | (37) |
(48) |
| Adjusted operating profit* | 1,111 |
707 |
| Goodwill amortisation and impairment | (110) |
(206) |
| Loss on disposal of investment in Dimension Data Holdings plc | - |
(5) |
| Restructuring and integration costs | (21) |
(32) |
| Change in credit provisioning methodology | - |
(87) |
| Fines and penalties | (49) |
- |
| Short term fluctuations in investment return (including economic assumption changes) | ||
| Life assurance | 256 |
71 |
| Other | 38 |
- |
| Investment return adjustment for own shares held in policyholders' funds | (94) |
12 |
| Other life assurance changes** | (119) |
(86) |
| Operating profit on ordinary activities before tax | 1,012 |
374 |
| Non-operating items | (35) |
(32) |
| Profit on ordinary activities before tax | 977 |
342 |
| Tax on profit on ordinary activities | (327) |
(211) |
| Profit on ordinary activities after tax | 650 |
131 |
| Minority interests - equity | (44) |
115 |
| - non-equity | (59) |
(46) |
| Profit for the financial year | 547 |
200 |
| Dividends paid and proposed | (182) |
(166) |
| Retained profit for the financial year | 365 |
34 |
The adjusted operating profit on an after-tax and minority interests basis is determined as follows:
| £m | ||
| Year to 31 December 2004 |
Year to 31 December 2003 (Restated)*** |
|
| Adjusted operating profit* | 1,111 |
707 |
| Tax on adjusted operating profit | (254) |
(250) |
857 |
457 |
|
| Minority interests - equity | (83) |
(9) |
| - non-equity | (59) |
(46) |
| Adjusted operating profit after tax and minority interests | 715 |
402 |
| Earnings per share - achieved profits basis | p |
|
| Adjusted operating earnings per share* | 19.1 |
10.8 |
| Basic earnings per share | 15.9 |
5.9 |
| Adjusted weighted average number of shares - millions | 3,748 |
3,727 |
| Weighted average number of shares - millions | 3,432 |
3,411 |
* For life assurance and general insurance businesses, the adjusted operating profit is based on a long term investment return and includes investment returns on own shares held within the policyholders’ funds. For banking business, adjusted operating profit excludes the loss on disposal of investment in Dimension Data Holdings plc, restructuring and integration costs and the transitional impact of the change of credit provisioning methodology. For all businesses, adjusted operating profit excludes goodwill amortisation and impairment and fines and penalties.
Adjusted operating earnings per share is similarly based, but is stated after tax and minority interests, with the calculation of the weighted average number of shares including own shares held in policyholders’ funds. The segmental analysis within the achieved profits consolidated profit and loss account has been prepared on a gross of inter-segment transactions basis.
** Refer to segmental analysis of results in section 7.
***2003 comparatives have been restated to be consistent with the current year segmental presentation.
