IFRS condensed financial statements
A6 - Earnings per share
(a) Basic earnings per share
(i) The profit attributable to ordinary shareholders is:
| 6 months 2009 | Restated 6 months 2008 | Full year 2008 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Operating profit £m |
Adjusting items £m |
Total £m |
Operating profit £m |
Adjusting items £m |
Total £m |
Operating profit £m |
Adjusting items £m |
Total £m |
|
| Profit/(loss) before tax attributable to shareholders’ profits | 1,049 | (109) | 940 | 1,223 | (1,244) | (21) | 2,297 | (3,597) | 1,300 |
| Tax attributable to shareholders’ profit/(loss) | (235) | 42 | (193) | (351) | 288 | (63) | (487) | 902 | 415 |
| Profit/(loss) for the year | 814 | (67) | 747 | 872 | (956) | (84) | 1,810 | (2,695) | (885) |
| Amount attributable to minority interests | (87) | 15 | (72) | (78) | 65 | (13) | (91) | 61 | (30) |
| Cumulative preference dividends for the year | (9) | - | (9) | (9) | - | (9) | (17) | - | (17) |
| Coupon payments in respect of direct capital instruments (DCI) (net of tax) |
- | - | - | - | - | - | (40) | - | (40) |
| Profit/(loss) attributable to ordinary shareholders | 718 | (52) | 666 | 785 | (891) | (106) | 1,662 | (2,634) | (972) |
(ii) Basic earnings per share is calculated as follows:
| 6 months 2009 | Restated 6 months 2008 | Full year 2008 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Before tax £m |
Net of tax, minorities, preference dividends and DCI £m |
Per share p |
Before tax £m |
Net of tax, minorities, preference dividends and DCI £m |
Per share p |
Before tax £m |
Net of tax, minorities, preference dividends and DCI £m |
Per share p |
|
| Operating profit attributable to ordinary shareholders | 1,049 | 718 | 26.9 | 1,223 | 785 | 29.9 | 2,297 | 1,662 | 62.9 |
| Non-operating items: | |||||||||
| Investment return variances and economic assumption changes on long-term business | 155 | 36 | 1.3 | (636) | (426) | (16.2) | (1,631) | (1,280) | (48.4) |
| Short-term fluctuation in return on investments non-long-term business | (125) | (34) | (1.3) | (314) | (235) | (9.0) | (819) | (553) | (20.9) |
| Economic assumption changes on general insurance and health business | 52 | 37 | 1.4 | 6 | 4 | 0.2 | (94) | (67) | (2.5) |
| Impairment of goodwill | (5) | (5) | (0.2) | (42) | (38) | (1.4) | (66) | (66) | (2.5) |
| Amortisation and net impairment of intangibles | (58) | 11 | 0.4 | (51) | (36) | (1.4) | 117) | (89) | (3.4) |
| Profit on the disposal of subsidiaries and associates | 20 | 20 | 0.7 | 9 | 9 | 0.3 | 7 | 7 | 0.3 |
| Integration and restructuring costs and exceptional items | (148) | (117) | (4.3) | (216) | (169) | (6.4) | (877) | (586) | (22.3) |
| Profit/(loss) attributable to ordinary shareholders | 940 | 666 | 24.9 | (21) | (106) | (4.0) | (1,300) | (972) | (36.8) |
(iii) The calculation of basic earnings per share uses a weighted average of 2,672 million (30 June 2008: 2,632 million; 31 December 2008: 2,643 million) ordinary shares in issue, after deducting shares owned by the employee share trusts. The actual number of shares in issue at 30 June 2009 was 2,739 million (30 June 2008: 2,658 million; 31 December 2008: 2,658 million).
(b) Diluted earnings per share
(i) Diluted earnings per share is calculated as follows:
| 6 months 2009 | Restated 6 months 2008 | Full year 2008 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Total £m |
Weighted average number of shares m |
Per share p |
Total £m |
Weighted average number of shares m |
Per share p |
Total £m |
Weighted average number of shares m |
Per share p |
|
| Profit/(loss) attributable to ordinary shareholders | 666 | 2,672 | 24.9 | (106) | 2,632 | (4.0) | (972) | 2,643 | (36.8) |
| Dilutive effect of share awards and options | - | 14 | (0.1) | - | 21 | - | - | 24 | - |
| Diluted earnings/(loss) per share | 666 | 2,686 | 24.8 | (106) | 2,653 | (4.0) | (972) | 2,667 | (36.8) |
(ii) Diluted earnings per share on operating profit attributable to ordinary shareholders is calculated as follows:
| 6 months 2009 | Restated 6 months 2008 | Full year 2008 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Total £m |
Weighted average number of shares m |
Per share p |
Total £m |
Weighted average number of shares m |
Per share p |
Total £m |
Weighted average number of shares m |
Per share p |
|
| Operating profit attributable to ordinary shareholders | 718 | 2,672 | 26.9 | 785 | 2632 | 29.9 | 1,662 | 2,643 | 62.9 |
| Dilutive effect of share awards and options | - | 14 | (0.2) | - | 21 | (0.3) | - | 24 | (0.6) |
| Diluted earnings per share | 718 | 2,686 | 26.7 | 785 | 2,653 | 29.6 | 1,662 | 2,667 | 62.3 |
