International
Australia
Underlying profit before tax in Australia increased by 11% to £308m (2006 £278m) despite further acceleration of investment in people, technology and branches to support our national expansion. Lending increased by 36% to £33.2bn (2006 £24.5bn) (local currency growth of 24%) with deposits up by 41% to £16.2bn (2006 £11.5bn) (local currency growth of 30%).
| Income Statement | Year ended 31.12.2007 £m |
Year ended 31.12.2006 £m |
| Net interest income | 620 | 501 |
| Underlying non-interest income | 178 | 142 |
| Fees and commission income | 158 | 120 |
| Fees and commission expense | (19) | (13) |
| Net income from long term business | 17 | 13 |
| Other operating income | 16 | 18 |
| Operating lease rental income | 7 | 9 |
| Operating lease depreciation | (5) | (7) |
| Share of profits of associates and jointly controlled entities | 4 | 2 |
| Underlying net operating income | 798 | 643 |
| Underlying operating expenses | (409) | (306) |
| Staff | (242) | (171) |
| Accommodation, repairs and maintenance | (28) | (21) |
| Technology | (39) | (24) |
| Marketing and communication | (27) | (21) |
| Depreciation: Property and equipment and intangible assets | (21) | (16) |
| Other | (52) | (53) |
| Underlying operating profit before provisions | 389 | 337 |
| Impairment losses on loans and advances | (81) | (59) |
| Underlying profit before tax | 308 | 278 |
| Net interest margin | 2.15% | 2.33% |
| Impairment losses as a % of average advances | 0.28% | 0.27% |
| Cost:income ratio | 51.3% | 47.6% |
| Loans and advances to customers | £33.2bn | £24.5bn |
| Risk weighted assets | £28.1bn | £21.0bn |
| Customer deposits | £16.2bn | £11.5bn |