However, that is history. It has no relevance except as an indicator that a proven track record will help us to deliver in the future. Our vision of the future is about a business which understands and meets the needs of our customers better and more effectively than any of our competitors. It is a vision of a business which creates value for all our customers, thus encouraging them to give us the privilege of looking after more of their business. If we continue to create value for the customer the natural outcome will be to maximise value for our shareholders, and the scope for growth remains substantial.
Operating profit from Insurance and Investments increased by 12 per cent to £1,601 million from £1,425 million.
Net interest income 3,115 2,951 Other income 1,141 1,143 aaaaaffffffffffffffffffffffffff aaaaaffffffffffffffffffffffffff
Group funds under management Scottish Widows Investment Partnership 78 87 UK Wealth Management 11 12 aaaaaffffffffffffffffffffffffff aaaaaffffffffffffffffffffffffff 109 122afffffffffffffffffffffffffff afffffffffffffffffffffffffff * the Group disposed of the new business capability of Abbey Life on 1 February 2000 and weighted sales totalling £5.9 million are therefore excluded from 2000 comparatives
number of employees (full-time equivalent) Staff numbers increased by 3,860 to 81,400 during the year, partly as a result of the conversion of some 1,000 staff from temporary status to permanent staff. Within UK Retail Banking staff numbers increased by 3,221 as we continue planned improvements to customer service, increased call centre capacity and a substantial increase in our branch sales activities. In Wholesale Markets staff numbers increased by 529, again largely as a result of increasing staff numbers to support higher levels of business, and in International Banking staff numbers decreased by 87.
short-term fluctuations in investment returns In accordance with generally accepted accounting practice in the UK, it is the Group’s accounting policy to carry the investments comprising the reserves held by its life companies at market value. In the past, this has not had a significant impact upon the Group’s results because of the limited reserves necessary to support the predominantly unit-linked business of Lloyds TSB Life and Abbey Life. However, the reserves held to support the with-profits business of Scottish Widows are substantial and changes in market values will result in significant volatility in the
In entering into this business, the Group’s objective is to secure a margin between the interest paid to customers on their deposits and interest received on amounts advanced. In order to do this, more complex financial instruments, such as derivatives, are used as a means of reducing risk by hedging exposures to movements in exchange rates, interest rates or other market variables.
• Provision of a Group rating system. All business units are required to operate an authorised rating system that complies with the Group’s standard methodology. The Group uses a ‘Master Scale’ rating structure with nine ratings, each corresponding to a probability of future default.
The general insurance portfolio comprises funds that form the capital and reserves for that business. These reserves are invested in a mixture of assets: cash, bonds and equities.
• If, within 18 months of his employment, there were to be a change of circumstances of the company such that there was, in his reasonable judgement, a material and adverse effect on his prospects or a material diminution of his status.
Group for the year then ended and have been properly prepared in accordance with the Companies Act 1985.
Items in course of transmission to banks 534 420 Debt securities in issue 34 24,420 17,899
A provision of £21 million was made in 2000 to cover the cost of integrating Chartered Trust Group plc and ACL Autolease Holdings Limited following their acquisition in September 2000.
Movements in investment Cost Provisions Total securities comprise: £m £m £m aaaaaffffffffffffffffffffffffff aaaaaffffffffffffffffffffffffff aaaaaffffffffffffffffffffffffff
The embedded value included in the consolidated balance sheet comprises: £m £m aaaaaffffffffffffffffffffffffff aaaaaffffffffffffffffffffffffff
(Deficit retained) surplus emerging (53) 175 Value of in-force business 168 266 aaaaaffffffffffffffffffffffffff aaaaaffffffffffffffffffffffffff
Balances arising from off-balance sheet financial instruments 2,688 2,346afffffffffffffffffffffffffff afffffffffffffffffffffffffff 80 LLOYDS TSB GROUP
The Company also provides a telephone dealing service through Lloyds TSB Stockbrokers for the purchase and sale of Lloyds TSB shares on preferential commission terms. The current rate for both purchases and sales is 0.75%, minimum £18.50 maximum £75, for transactions up to £75,000. For full details please contact Lloyds TSB Stockbrokers. Telephone 0845 7888100.