Summary Consolidated Profit and Loss Account
for the year ended 31 December 2004
The following table summarises the Group’s results in the profit and loss accounts on pages 57 to 59. Adjusted operating profit represents the directors’ view of the underlying performance of the Group. This summary does not form part of the statutory financial statements.
| £m | ||||
Notes | Year to 31 December 2004 | Year to 31 December 2003 (Restated)* | ||
| Adjusted operating income | ||||
| Life assurance - gross premiums written | 5(b)(i) | 4,901 | 4,577 | |
| General insurance - gross premiums written | 5(e) | 624 | 526 | |
| Asset management - total revenue | 5(c)(i) | 639 | 688 | |
| Banking - total operating income | 5(d)(i) | 1,280 | 1,107 | |
| Adjusted profit and loss account | ||||
| South Africa | ||||
| Technical result | 313 | 260 | ||
| Long term investment return | 167 | 178 | ||
| Life assurance | 5(b)(iii) | 480 | 438 | |
| Asset management | 5(c)(i) | 53 | 55 | |
| Banking | 5(d)(i) | 177 | (10) | |
| General insurance | 5(e) | 89 | 73 | |
799 | 556 | |||
| United States | ||||
| Life assurance | 5(b)(iii) | 96 | 85 | |
| Asset management | 5(c)(i) | 89 | 81 | |
185 | 166 | |||
| United Kingdom and Rest of World | ||||
| Life assurance | 5(b)(iii) | 18 | 20 | |
| Asset management | 5(c)(i) | 10 | (8) | |
| Banking | 5(d)(i) | 14 | 4 | |
42 | 16 | |||
1,026 | 738 | |||
| Other shareholders’ income/expenses | 5(f) | (33) | (40) | |
| Debt service costs | 7 | (37) | (48) | |
| Adjusted operating profit** | 956 | 650 | ||
| Goodwill amortisation and impairment | 18 | (110) | (206) | |
| Loss on disposal of investment in Dimension Data Holdings plc | - | (5) | ||
| Restructuring and integration costs | 5(d)(ii) | (21) | (32) | |
| Change in credit provisioning methodology | 5(d)(iii) | - | (87) | |
| Fines and penalties | 11 | (49) | - | |
| Short term fluctuations in investment return | 8(a) | 226 | 143 | |
| Investment return adjustment for own shares held in policyholders’ funds | 5(b)(iv) | (94) | 12 | |
| Operating profit on ordinary activities before tax | 908 | 475 | ||
| Non-operating items | 17(b) | (35) | (32) | |
| Profit on ordinary activities before tax | 873 | 443 | ||
| Tax on profit on ordinary activities | 15(b) | (286) | (241) | |
| Profit on ordinary activities after tax | 587 | 202 | ||
| Minority interests | - equity | 29(a) | (44) | 117 |
| - non-equity | (59) | (46) | ||
| Profit for the financial year | 484 | 273 | ||
| Dividends paid and proposed | 4 | (182) | (166) | |
| Retained profit for the financial year | 302 | 107 | ||
| The adjusted operating profit after tax and minority interests is determined as follows: | ||||
| Adjusted operating profit | 956 | 650 | ||
| Tax on adjusted operating profit | 15(b) | (240) | (224) | |
716 | 426 | |||
| Minority interests | - equity | 29(a) | (83) | (7) |
| - non-equity | (59) | (46) | ||
| Adjusted operating profit after tax and minority interests | 574 | 373 | ||
p | ||||
| Earnings and dividend per share attributable to equity shareholders | Notes | Year to 31 December 2004 | Year to 31 December 2003 | |
| Earnings per share | ||||
| Adjusted operating earnings per share** | 3 | 15.3 | 10.0 | |
| Basic earnings per share | 3 | 14.1 | 8.0 | |
| Diluted earnings per share | 3 | 14.1 | 8.0 | |
| Dividend per share*** | 4 | 5.25 | 4.8 | |
| Adjusted weighted average number of shares - millions | 3 | 3,748 | 3,727 | |
| Weighted average number of shares - millions | 3 | 3,432 | 3,411 | |
* 2003 comparatives have been restated to be consistent with the current year segmental presentation.
** For life assurance and general insurance businesses, 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 in 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 summary consolidated profit and loss account has been prepared on a gross of inter-segment transactions basis. Details of the inter-segment revenue and expenses are set out in note 5.
*** Indicative only - the actual amount of the final dividend per share in Rand will be determined by reference to the exchange rate prevailing on 31 March 2005 and will be announced by the Company on 1 April 2005
