EX-7.1 5 dp13330_ex0701.htm EXHIBIT 7.1
 
EXHIBIT 7.1
 
7.1 Explanation of ratio calculations
The information presented in the table below is based upon IFRS.
 
Financial data based upon IFRS:
2008
    
2007
     2006      2005      2004   
Return on average total assets(1)
0.14
 %  
0.71
 %  
0.94
 %   0.99 %   1.21 %
       
 
                    
Return on average ordinary shareholders’ equity(2)  
3.9
 %   
21.9
%
  
26.1
 %   29.6 %   30.7 %
       
 
 
                  
Average shareholders’ equity as a percentage of average total assets
3.5
 %   
3.2
%
  
3.6
 %   3.3 %   4.2 %
Risk asset ratio      
 
                    
     Tier 1
10.1
 %   
9.8
 %  
9.9
 %    10.1 %   n/a (4)
     Total
14.5
 %  
13.2
 %  
12.9
 %   14.1 %   n/a (4)
       
 
                    
Ratio of earnings to combined fixed charges and preference share dividends(3)
     Including interest on deposits
     Excluding interest on deposits		  
1.16
1.51
    
1.43
2.50
 
 
  
1.64
3.09

  1.84
4.02		     2.11
5.62		  
       
 
                    
Ratio of earnings to fixed charges only(3)
     Including interest on deposits
     Excluding interest on deposits
1.16
1.51
    
1.43
2.50
    
1.64
3.09
     1.84
4.02		     2.14
5.92		  
 
Notes:  
(1)
Return on average total assets represents profit attributable to ordinary shareholders as a percentage of average total assets.
(2)
Return on average ordinary shareholders’ equity represents profit attributable to ordinary shareholders expressed as a percentage of average ordinary shareholders’ equity.
(3)
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).
(4)
Upon adoption of IFRS by listed banks in the UK on 1 January 2005, the Financial Services Authority changed its regulatory requirements such that the measurement of capital adequacy was based on IFRS subject to a number of prudential filters. The Risk Asset Ratios as at 31 December 2008, 2007, 2006 and 2005 have been presented in compliance with these revised FSA requirements.