EXHIBIT 7.1
Explanation of ratio calculations



Other financial data

                                                                                                  
Other financial data in accordance with                          2002        2001        2000        1999        1998
                                                                 ----        ----        ----        ----        ----
UK GAAP (1):

Return on average total assets (2)                              1.02%       0.95%       1.10%       0.86%       0.81%
Return on average ordinary shareholders' equity (3)             21.9%       24.3%       26.6%       19.4%       20.4%
Average shareholders' equity as a percentage of average
  total assets                                                   4.9%        4.2%        4.3%        4.7%        4.3%

Risk asset ratio
     Tier 1                                                      8.9%        7.9%        7.1%        9.2%        8.3%
     Total                                                      13.0%       12.3%       12.2%       16.2%       13.2%
Ratio of earnings to combined fixed charges
  and preference share dividends (4)
     Including interest on deposits                              2.04        1.58        1.52        1.45        1.28
     Excluding interest on deposits                              3.82        4.30        4.88        3.82        2.16
Ratio of earnings to fixed charges only (4)
     Including interest on deposits                              2.07        1.60        1.53        1.47        1.29
     excluding interest on deposits                              4.00        4.56        5.16        4.05        2.24

Other financial data in accordance with US GAAP:

Return on average total assets (2)                              1.18%       1.11%       1.40%       0.86%       0.83%
Return on average ordinary shareholders' equity (3)             27.5%       30.5%       39.5%       22.6%       24.7%
Average shareholders' equity as a percentage
 of average total assets                                         4.6%        3.9%        3.8%        4.1%        3.7%

Ratio of earnings to combined fixed charges
 and preference share dividends (4)
     Including interest on deposits                              2.28        1.73        1.67        1.46        1.29
     Excluding interest on deposits                              4.48        5.12        5.97        3.86        2.18
Ratio of earnings to fixed charges only (4)
     Including interest on deposits                              2.32        1.75        1.68        1.46        1.29
     Excluding interest on deposits                              4.69        5.42        6.32        4.03        2.24


Notes:

(1)  All prior years have been restated following the implementation of FRS 19
     in 2002.

(2)  Return on average total assets represents profit attributable to ordinary
     shareholders as a percentage of average total assets.

(3)  Return on average ordinary shareholders' equity represents profit
     attributable to ordinary shareholders expressed as a percentage of average
     ordinary shareholders' equity.

(4)  For this purpose, earnings consist of income before taxes and minority
     interests, plus fixed charges less the unremitted income of associated
     undertakings (share of profits less dividends received). Fixed charges
     consist of total interest expense, including or excluding interest on
     deposits and debt securities in issue, as appropriate, and the proportion
     of rental expense deemed representative of the interest factor (one third
     of total rental expenses).