INTERIM RESULTS FOR THE 6 MONTHS ENDING 30 JUNE 2008
1 August 2008
SUMMARY
On 14 July 2008 the recommended acquisition of Alliance & Leicester plc (Alliance & Leicester) by Banco Santander S.A. (Santander) was announced. Under the terms of the acquisition, Alliance & Leicester ordinary shareholders will receive one Santander share for every three Alliance & Leicester ordinary shares. It is anticipated that further information will be sent to shareholders in August 2008 and subject to, amongst other things, Alliance & Leicester shareholder approval being granted, the transaction is expected to complete in or around October 2008. This proposed transaction has had no impact on Alliance & Leicester plc’s reported results for the first six months of 2008.
FINANCIAL RESULTS
Core operating profit of £22m (June 2007: £295m). Core operating profit excluding changes in the fair value and impairment of certain treasury investments, strategic funding and liquidity holding costs in the first six months of 2008 was £301m, higher than the £295m reported in the same period in 2007.
Statutory profit before tax of £2m (June 2007: £290m).
| | Six months
ended
30.06.08
£m | | Six months
ended
30.06.07
£m |
Core operating profit excluding the changes in the fair value and impairment of certain treasury investments, strategic funding and liquidity holding costs
| | 301
| | 295
|
Reduction in the fair value of certain treasury investments
| | (66)
| | –
|
Impairment of certain treasury investments
| | (143)
| | –
|
Strategic funding and liquidity holding costs
| | (70)
| | –
|
Core operating profit
| | 22
| | 295
|
Redundancy costs
| | (14)
| | (1)
|
Hedge ineffectiveness
| | (6)
| | (4)
|
Statutory profit before tax
| | 2
| | 290
|
Retail Banking core operating profit up £4m to £211m (June 2007: £207m)
Commercial Banking:
- Commercial Bank core operating profit up £11m to £89m (June 2007: £78m);
- Treasury core operating loss of £272m (June 2007: profit £24m).
Interim cash dividend of 18.0p per share (June 2007: 18.8p).
To read the full announcement please see the documents above
