Group financial statements

Balance sheet of the parent company
31 December 2006

	Note	2006 £m	2005 £m
Fixed assets
Investments:
Shares in subsidiary undertakings	4	6,085	5,175
Loans to subsidiary undertakings	4	2,841	2,697
		8,926	7,872

Current assets
Debtors:
Derivative assets		2,057	1,577
Amounts owed by subsidiary undertakings	7	17	41
Other debtors		42	56
Cash at bank and in hand		255	121
		2,371	1,795

Less liabilities: amounts falling due within one year
Commercial paper	6	(2,017)	(1,461)
Other borrowings	6	(5)	–
Derivative liabilities	7	(100)	(144)
Amounts owed to subsidiary undertakings		(667)	(805)
Tax payable		(290)	(171)
Sundry creditors		(26)	(37)
Accruals and deferred income		(42)	(41)
		(3,147)	(2,659)

Net current liabilities		(776)	(864)
Total assets less current liabilities		8,150	7,008

Less liabilities: amounts falling due after more than one year
Subordinated liabilities	6	(1,533)	(1,646)
Debenture loans	6	(797)	(798)
Other borrowings	6	(10)	(11)
Amounts owed to subsidiary undertakings		(2,532)	(2,016)
		(4,872)	(4,471)
Total net assets (excluding pensions)		3,278	2,537
Pension assets (liabilities) (net of related deferred tax)	8	34	(80)
Total net assets (including pensions)		3,312	2,457

Capital and reserves
Share capital	9	122	119
Share premium	9	1,822	1,564
Profit and loss account	10	1,368	774
Shareholders’ funds	10	3,312	2,457

The financial statements of the parent company were approved by the Board of directors on 14 March 2007.

Sir David Clementi
Chairman

Mark Tucker
Group Chief Executive

Signature of Philip Broadley

Philip Broadley
Group Finance Director