EX-1 2 c68945_ex1.htm

Exhibit 1

Ratio of earnings to fixed charges

The table below shows the ratio of earnings to fixed charges and ratio of earnings to combined fixed charges and preference dividends:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended

 

 

 

    

Earnings (1)

 

31 Dec
2011

 

31 Dec
2010 

 

31 Dec
2009

 

31 Dec
2008

(2)

31 Dec
2007

(2)

 

 

£m

 

£m

 

£m

 

£m

 

£m

 

(Loss) profit before tax

 

 

(342

)

 

(2,919

)

 

1,042

 

 

760

 

 

3,999

 

Add: Share of losses / (profits) from joint ventures and associates

 

 

(31

)

 

88

 

 

752

 

 

(4

)

 

(10

)

Add: Dividends received from joint ventures and associates

 

 

6

 

 

1

 

 

21

 

 

2

 

 

2

 

Add: Fixed charges

 

 

14,221

 

 

17,173

 

 

19,866

 

 

10,352

 

 

11,208

 

 

 

                              

Earnings

 

 

13,854

 

 

14,343

 

 

21,681

 

 

11,110

 

 

15,199

 

 

 

                              

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expensed and capitalised (3)

 

 

14,097

 

 

17,034

 

 

19,730

 

 

10,277

 

 

11,138

 

Estimated interest included within rental expense (4)

 

 

124

 

 

139

 

 

136

 

 

75

 

 

70

 

 

 

                              

Fixed charges

 

 

14,221

 

 

17,173

 

 

19,866

 

 

10,352

 

 

11,208

 

 

 

                              

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preference dividends (5)

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                              

Combined fixed charges and preference dividends

 

 

14,221

 

 

17,173

 

 

19,866

 

 

10,352

 

 

11,208

 

 

 

                              

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings to fixed charges

 

 

N/A

 

 

N/A

 

 

1.09

 

 

1.07

 

 

1.36

 

Ratio of earnings to combined fixed charges and preference dividends

 

 

N/A

 

 

N/A

 

 

1.09

 

 

1.07

 

 

1.36

 

In the year ended 31 December 2011 earnings were inadequate to cover fixed charges by £367 million and to cover combined fixed charges and preference dividends by £367 million.

In the year ended 31 December 2010 earnings were inadequate to cover fixed charges by £2,830 million and to cover combined fixed charges and preference dividends by £2,830 million.


 

 

Notes

 

(1)

For the purposes of these ratios, earnings consist of profit before tax, less the unremitted income of joint ventures and associates plus fixed charges. Unremitted income is calculated as the share of profits / losses from joint ventures and associates less dividends received.

 

 

(2)

The profit before tax for 2008 and 2007 was restated in 2009 to show the impact of amendment to IFRS 2 Share-based Payment, which was adopted in the Group’s 2009 consolidated financial statements, as disclosed in note 1 on page F-11 of the Group’s 2010 Annual Report on Form 20-F.

 

 

(3)

Interest expensed and capitalised includes the amortisation of debt issuance costs, discounts and premiums and includes interest expense from the banking book included within “interest and similar expense” as well as interest expense from the trading book included within “other operating income”.

 

 

(4)

Fixed charges consist of total interest expensed and capitalised plus an estimate for the proportion of rental expenses deemed to represent interest cost. This has been estimated at 30% of rental expenses, as a reasonable approximation of the interest factor.

 

 

(5)

There are no preference shares accounted for as equity; all preference shares being accounted for as debt and therefore preference share dividends are already included within interest costs. As a result, the ratios calculated using fixed charges and combined fixed charges plus preference dividends are the same.