A final dividend of 21.3p per share will be paid on 2 May 2001. This makes a total of 30.6p for the year, an increase of 15 per cent.
Yet, the basic financial needs of our customers do not change that much. They want to save, borrow, invest, transact and be insured. They want value, convenience, security and trust. They want sound financial advice. They want access to financial services when, where and how it is most convenient for them. If the value they are offered is clear and compelling, if the service and advice they receive is good, they will give us more of their business.
We have risen to the challenges which the increasingly competitive environment presents by widening our product range, greatly expanding our distribution capabilities and by offering our customers more value.
I will retire at this year’s annual general meeting in April and I am delighted that Maarten van den Bergh, formerly President of Royal Dutch Petroleum Company, has agreed to succeed me as Chairman. I have every confidence that the company is in safe hands and that it is well equipped to meet the challenges of the future. I thank you, our owners, for your support over many years and I especially thank our great team of talented people for being the best at what they do.
Going forward, the thrust of our strategy is about the continuing investment in our growth businesses to deliver organic revenue growth through customer relationship management, leveraging the strength of our brands and our multichannel distribution capability, reducing our day-to-day unit costs and driving forward our e-commerce strategy. We also intend to participate in the further consolidation of financial services, both in the UK and overseas.
In addition, they have access to a further 27,000 cash machines via LINK in the UK and to cash machines worldwide through the
UK. The Agricultural Mortgage Corporation provides long-term finance for the agricultural sector.
Operating profit* 816 390afffffffffffffffffffffffffff afffffffffffffffffffffffffff * * including ‘normalised’ investment returns based on long-term rates of investment return
Lloyds TSB General Insurance also holds investments to support its underwriting business; these are carried at market value and gains and losses included within dealing profits. Consistent with the approach adopted for the life and pensions business, an operating profit for the general insurance business has been calculated including investment earnings normalised using the same long-term rates of return.
Responsibility for the implementation of risk policy and for ensuring that there is an effective top level control framework is delegated to the Director of Group Risk Management and Compliance, who reports to the Group Chief Executive. The board in turn receives regular reports on risk issues prepared by Group Risk Management and Compliance.
In the UK, the Group supports Opportunity Now and Race for
Assets Cash and balances at central banks 1,027 1,276 Items in course of collection from banks 1,533 1,743 Treasury bills and other eligible bills 13 1,709 2,065 Loans and advances to banks 14 15,290 16,963 Loans and advances to customers 114,855 102,149 Non-returnable finance (400) –
Other contingent liabilities 1,541 1,479 aaaaaaaaffffffffffffffffffffffffff aaaaaaaaffffffffffffffffffffffffff 5,147 4,423aafffffffffffffffffffffffffff aafffffffffffffffffffffffffff Commitments: Commitments arising out of sale and option to resell transactions 3 14
The accounts of the Company are prepared under the historical cost convention as modified by the revaluation of shares in group undertakings (see h), in compliance with Section 226, Schedule 4 and other requirements of the Companies Act 1985 and in accordance with applicable accounting standards and pronouncements of the Urgent Issues Task Force.
5 Amounts written off fixed asset investments 2000 1999 £m £m aaaaaffffffffffffffffffffffffff aaaaaffffffffffffffffffffffffff
The UK corporation tax charge includes £171 million (1999: £67 million) in respect of notional tax on the shareholders’ interest in the increase in the value of the long-term assurance business.
Total loans and advances to banks 15,346 17,019 Provisions for bad and doubtful debts (56) (56)
notes to the accounts 41 Other provisions for liabilities and charges Post- Vacant Provision Pension Insurance retirement leasehold for closure obligations provisions health care property of business Other Total £m £m £m £m £m £m £m aaaaaffffffffffffffffffffffffff aaaaaffffffffffffffffffffffffff aaaaaffffffffffffffffffffffffff aaaaaffffffffffffffffffffffffff aaaaaffffffffffffffffffffffffff aaaaaffffffffffffffffffffffffff aaaaaffffffffffffffffffffffffff
As at 31 December 1999 £m £m £m £m £m £m £m aaaaaffffffffffffffffffffffffff aaaaaffffffffffffffffffffffffff aaaaaffffffffffffffffffffffffff aaaaaffffffffffffffffffffffffff aaaaaffffffffffffffffffffffffff aaaaaffffffffffffffffffffffffff aaaaaffffffffffffffffffffffffff
Substantial shareholdings At the date of this report notification had been received that The Capital Group Companies, Inc has an interest in 4% of the nominal value of the issued share capital. No other notification had been received that anyone has an interest in 3% or more of the nominal value of the issued share capital.