EXHIBIT 7.1

Explanation of ratio calculations

Other financial data
	2004		2003		2002		2001		2000
Other financial data based upon UK GAAP (1):
Return on average total assets (2)	1.30	%	1.21	%	1.02	%	0.95	%	1.10	%
Return on average ordinary shareholders' equity (3)	28.8	%	25.6	%	21.9	%	24.3	%	26.6	%
Average shareholders' equity as a percentage of average total assets	4.8	%	5.0	%	5.0	%	4.2	%	4.3	%
Risk asset ratio
Tier 1	8.0	%	9.2	%	8.9	%	7.9	%	7.1	%
Total	11.6	%	13.3	%	13.0	%	12.3	%	12.2	%
Ratio of earnings to combined fixed charges and
preference share dividends (4)
Including interest on deposits	2.20		2.52		2.04		1.58		1.52
Excluding interest on deposits	6.10		6.92		3.82		4.30		4.88
Ratio of earnings to fixed charges only (4)
Including interest on deposits	2.23		2.57		2.07		1.60		1.53
excluding interest on deposits	6.44		7.48		4.00		4.56		5.16
Other financial data based upon US GAAP:
Return on average total assets (2)	1.02	%	1.18	%	1.18	%	1.11	%	1.40	%
Return on average ordinary shareholders' equity (3)	23.7	%	25.7	%	27.5	%	30.5	%	39.5	%
Average shareholders' equity as a percentage of average total assets	4.5	%	4.9	%	4.6	%	3.9	%	3.8	%
Ratio of earnings to combined fixed charges and
preference share dividends (4)
Including interest on deposits	1.99		2.50		2.28		1.73		1.67
Excluding interest on deposits	5.19		6.82		4.48		5.12		5.97
Ratio of earnings to fixed charges only (4)
Including interest on deposits	2.01		2.55		2.32		1.75		1.68
Excluding interest on deposits	5.48		7.37		4.69		5.42		6.32

Notes:
(1)	The years ended 31 December 2003 and 2002 have been restated following the implementation of FRS 17. It is not practicable to restate prior years.
(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).