Comparative Results Presented
71/09 22 July 2009
COMPARATIVE RESULTS PRESENTED ON A PROFORMA BASIS
In advance of the release of Lloyds Banking Group's interim results on 5 August 2009, the Group has today released its results for the half-year to 30 June 2008 and the half-year to 31 December 2008, presented on a proforma basis.
Background
Following the acquisition of HBOS in January 2009 comparisons of results on a statutory basis are of limited benefit as the 2008 statutory results do not include the results of HBOS.
In order to provide more meaningful and relevant comparisons, the 2008 comparative results of the Group will also be presented on a proforma basis in the Group's 2009 interim results announcement.
Basis of preparation of the 2008 proforma results
The 2008 comparative results, which are set out in Appendix 1, include the results of HBOS as if it had been acquired on 1 January 2008 but do not include the impact of any acquisition-related fair value adjustments. The comparative results also exclude the results of BankWest and St. Andrews which were sold in December 2008 (together with the associated loss on disposal), insurance and policyholder interests volatility, insurance grossing adjustment and the amortisation of purchased intangible assets and goodwill impairment. Reclassifications have been made to align accounting practices and to present intra-group transfer charging on a consistent basis.
Divisional structure
Following the acquisition of HBOS, the Group's activities are organised into five divisions. The comparative divisional results for the half-year to 30 June 2008 and the half-year to 31 December 2008 set out in Appendix 2 are presented using this new divisional structure.
Group Operations manages the Group’s technology platforms, branch and head office property estate, operations (including payments, banking operations and collections) and procurement services. The costs of Group Operations are predominantly recharged to the other divisions. Central items reflect other items not recharged to the divisions.
For further information:
Investor Relations
Michael Oliver +44 (0) 20 7356 2167
Director of Investor Relations
Email: michael.oliver@ltsb-finance.co.uk
Douglas Radcliffe +44 (0) 20 7356 1571
Senior Manager, Investor Relations
Email: douglas.radcliffe@ltsb-finance.co.uk
Media Relations
Shane O'Riordain +44 (0) 20 7356 1849
Group Communications Director
Email: shane.o'riordain@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. 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 results may differ materially from the results expressed or implied in these forward looking statements as a result of a variety of factors, including UK domestic and global economic and business conditions, the ability to derive cost savings and other benefits as well as to mitigate exposures from the acquisition and integration of HBOS, risks concerning borrower quality, market related trends and developments, changing demographic trends, changes in customer preferences, changes to regulation, the policies and actions of governmental and regulatory authorities in the UK or jurisdictions outside the UK, including other European countries and the US, exposure to regulatory scrutiny, legal proceedings or complaints, competition 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. 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.
Appendix 1
Reconciliation from the published Lloyds TSB statutory results
to the Lloyds Banking Group proforma results
|
Half-year to 30 June 2008
|
|
|
|
|
Removal of:
|
|
|
|||||||||
|
|
Lloyds
TSB
statutory*
|
|
HBOS
statutory
|
Reclass-
ification
of HBOS
income
statement
|
Results of
BankWest
and St.
Andrews
|
Insurance
related
volatility
|
Amort-
isation of
purchased
intangibles
and
goodwill
impairment
|
Insurance
gross up
|
|
Proforma
|
||||||
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
3,647
|
|
3,861
|
|
124
|
|
(229)
|
|
(5)
|
|
-
|
|
(356)
|
|
7,042
|
|
|
Other income
|
(367)
|
|
(1,511)
|
|
(83)
|
|
(84)
|
|
1,400
|
|
-
|
|
5,020
|
|
4,375
|
|
|
Total income
|
3,280
|
|
2,350
|
|
41
|
|
(313)
|
|
1,395
|
|
-
|
|
4,664
|
|
11,417
|
|
|
Insurance claims
|
1,344
|
|
3,098
|
|
15
|
|
-
|
|
-
|
|
-
|
|
(4,694)
|
|
(237)
|
|
|
Total income, net of insurance claims
|
4,624
|
|
5,448
|
|
56
|
|
(313)
|
|
1,395
|
|
-
|
|
(30)
|
|
11,180
|
|
|
Operating expenses
|
(2,936)
|
|
(3,177)
|
|
-
|
|
220
|
|
-
|
|
2
|
|
20
|
|
(5,871)
|
|
|
Trading surplus
|
1,688
|
|
2,271
|
|
56
|
|
(93)
|
|
1,395
|
|
2
|
|
(10)
|
|
5,309
|
|
|
Impairment
|
(1,099)
|
|
(1,455)
|
|
-
|
|
40
|
|
-
|
|
-
|
|
-
|
|
(2,514)
|
|
|
Share of results of joint ventures and associates
|
4
|
|
(24)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(20)
|
|
|
Non-operating income
|
-
|
|
56
|
|
(56)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
Profit/(loss) before tax
|
593
|
|
848
|
|
-
|
|
(53)
|
|
1,395
|
|
2
|
|
(10)
|
|
2,775
|
|
|
Half-year to 31 December 2008
|
|
|
|
Removal of:
|
|
|
||||||||||||
|
|
Lloyds
TSB
statutory*
|
HBOS
statutory
|
Reclass-
ification
of HBOS
income
statement
|
Results of
BankWest
and St.
Andrews
|
Loss on
disposal of
BankWest
and St.
Andrews
|
Insurance
related
volatility
|
Amort-
isation of
purchased
intangibles
and
goodwill
impairment
|
Insurance
gross up
|
Proforma
|
|||||||||
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
4,071
|
|
4,310
|
|
1,782
|
|
(295)
|
|
-
|
|
(4)
|
|
-
|
|
(2,003)
|
|
7,861
|
|
|
Other income
|
(342)
|
|
(3,048)
|
|
(151)
|
|
(64)
|
|
-
|
|
958
|
|
-
|
|
5,205
|
|
2,558
|
|
|
Total income
|
3,729
|
|
1,262
|
|
1,631
|
|
(359)
|
|
-
|
|
954
|
|
-
|
|
3,202
|
|
10,419
|
|
|
Insurance claims
|
1,515
|
|
3,094
|
|
(1,585)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(3,268)
|
|
(244)
|
|
|
Total income, net of insurance claims
|
5,244
|
|
4,356
|
|
46
|
|
(359)
|
|
-
|
|
954
|
|
-
|
|
(66)
|
|
10,175
|
|
|
Operating expenses
|
(3,164)
|
|
(3,703)
|
|
-
|
|
180
|
|
-
|
|
-
|
|
256
|
|
66
|
|
(6,365)
|
|
|
Trading surplus
|
2,080
|
|
653
|
|
46
|
|
(179)
|
|
-
|
|
954
|
|
256
|
|
-
|
|
3,810
|
|
|
Impairment
|
(1,913)
|
|
(10,595)
|
|
-
|
|
142
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(12,366)
|
|
|
Share of results of joint ventures and associates
|
-
|
|
(932)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(932)
|
|
|
Loss on disposal
|
-
|
|
(799)
|
|
(46)
|
|
-
|
|
845
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
Profit/(loss) before tax
|
167
|
|
(11,673)
|
|
-
|
|
(37)
|
|
845
|
|
954
|
|
256
|
|
-
|
|
(9,488)
|
|
*Restated to reflect IFRS2 (revised). The adoption of the revised requirements has had no material effect upon the HBOS 2008 results.
Appendix 2
Proforma summarised segmental analysis
|
Half-year to 30 June 2008
|
Retail
|
|
Wholesale
|
|
Insurance
|
Wealth
and
International
|
|
Group
Operations
and central
items
|
|
Group
|
|
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
4,034
|
|
2,623
|
|
(190)
|
|
645
|
|
(70)
|
|
7,042
|
|
Other income
|
1,361
|
|
766
|
|
1,708
|
|
581
|
|
(41)
|
|
4,375
|
|
Total income
|
5,395
|
|
3,389
|
|
1,518
|
|
1,226
|
|
(111)
|
|
11,417
|
|
Insurance claims
|
-
|
|
-
|
|
(237)
|
|
-
|
|
-
|
|
(237)
|
|
Total income, net of insurance claims
|
5,395
|
|
3,389
|
|
1,281
|
|
1,226
|
|
(111)
|
|
11,180
|
|
Operating expenses
|
(2,284)
|
|
(2,244)
|
|
(577)
|
|
(731)
|
|
(35)
|
|
(5,871)
|
|
Trading surplus/(deficit)
|
3,111
|
|
1,145
|
|
704
|
|
495
|
|
(146)
|
|
5,309
|
|
Impairment
|
(1,371)
|
|
(1,075)
|
|
-
|
|
(68)
|
|
-
|
|
(2,514)
|
|
Share of results of
joint ventures and associates
|
1
|
|
(33)
|
|
16
|
|
(6)
|
|
2
|
|
(20)
|
|
Profit/(loss) before tax
|
1,741
|
|
37
|
|
720
|
|
421
|
|
(144)
|
|
2,775
|
|
Half-year to 31 December 2008
|
Retail
|
|
Wholesale
|
|
Insurance
|
Wealth
and
International
|
|
Group
Operations
and central
items
|
|
Group
|
|
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
4,420
|
|
3,129
|
|
(155)
|
|
669
|
|
(202)
|
|
7,861
|
|
Other income
|
1,378
|
|
(1,068)
|
|
1,785
|
|
610
|
|
(147)
|
|
2,558
|
|
Total income
|
5,798
|
|
2,061
|
|
1,630
|
|
1,279
|
|
(349)
|
|
10,419
|
|
Insurance claims
|
-
|
|
-
|
|
(244)
|
|
-
|
|
-
|
|
(244)
|
|
Total income, net of insurance claims
|
5,798
|
|
2,061
|
|
1,386
|
|
1,279
|
|
(349)
|
|
10,175
|
|
Operating expenses
|
(2,679)
|
|
(2,347)
|
|
(552)
|
|
(745)
|
|
(42)
|
|
(6,365)
|
|
Trading surplus/(deficit)
|
3,119
|
|
(286)
|
|
834
|
|
534
|
|
(391)
|
|
3,810
|
|
Impairment
|
(2,324)
|
|
(9,319)
|
|
-
|
|
(663)
|
|
(60)
|
|
(12,366)
|
|
Share of results of
joint ventures and associates
|
6
|
|
(911)
|
|
(14)
|
|
(15)
|
|
2
|
|
(932)
|
|
Profit/(loss) before tax
|
801
|
|
(10,516)
|
|
820
|
|
(144)
|
|
(449)
|
|
(9,488)
|
This information is provided by RNS
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