International
Europe & North America (‘ENA’)
Underlying profit before tax in ENA increased by 39% to £265m (2006 £190m), reflecting the continuing expansion of our corporate banking activities in North America, increased distribution in our European Financial Services business (‘EFS’), actuarial benefits and realisations. Our European retail businesses continued to grow through ongoing expansion in the Banco Halifax Hispania (‘BHH’) branch retail network in Spain and expanded distribution channels in our market leading online mortgage product in BoS Netherlands (‘BoSNL’).
| Income Statement | Year ended 31.12.2007 £m |
Year ended 31.12.2006 £m |
| Net interest income | 138 | 113 |
| Underlying non-interest income | 290 | 220 |
| Fees and commission income | 32 | 21 |
| Fees and commission expense | (204) | (176) |
| Change in value of in-force long term assurance business | 112 | 104 |
| Net income from long term business | 300 | 258 |
| Investment earnings on surplus assets attributable to shareholders using long term assumptions | 6 | 3 |
| Other operating income | 31 | 12 |
| Share of profits/(losses) of associates and jointly controlled entities | 13 | (2) |
| Underlying net operating income | 428 | 333 |
| Underlying operating expenses | (150) | (134) |
| Staff | (74) | (57) |
| Accommodation, repairs and maintenance | (7) | (10) |
| Technology | (6) | (5) |
| Marketing and communication | (9) | (7) |
| Depreciation: Property and equipment and intangible assets | (11) | (10) |
| Other | (37) | (43) |
| Sub total | (144) | (132) |
| Recharges: | ||
| Technology | (5) | (1) |
| Accommodation | (1) | (1) |
| Underlying operating profit before provisions | 278 | 199 |
| Impairment losses on loans and advances | (13) | (9) |
| Underlying profit before tax | 265 | 190 |
| Net interest margin | 1.47% | 1.46% |
| Impairment losses as a % of average advances | 0.13% | 0.12% |
| Cost:income ratio | 35.0% | 40.2% |
| Loans and advances to customers | £12.0bn | £8.3bn |
| Risk weighted assets | £9.1bn | £5.9bn |
| Customer deposits | £0.3bn | £0.2bn |