Proforma reconciliation of group operating profit to profit after tax – IFRS
6. Group debt costs and other interests
| 6 months 2009 £m |
6 months 2008 £m |
Full year 2008 £m |
|
|---|---|---|---|
| External | |||
| Subordinated debt | (139) | (94) | (229) |
| Other | (26) | (34) | (57) |
| Internal | (121) | (95) | (197) |
| Net finance (charge)/income on UK pension schemes | (32) | 22 | 104 |
| Total | (318) | (201) | (379) |
Group debt costs and other interest of £318 million (six months to 30 June 2008: £201 million) comprise internal and external interest on borrowings, subordinated debt and intra-group loans not allocated to local business operations. External interest costs increased to £165 million (six months to 30 June 2008: £128 million) reflecting higher interest on subordinated debt, due to the hybrid debt issued in 2008 and 2009, offset by lower commercial paper interest as proceeds from the issue were used to repay some commercial paper. Internal interest costs increased to £121 million (six months to 30 June 2008: £95 million) driven by changes to our internal loan balances.
The UK pension scheme net charge which represents the difference between the expected return on pension scheme assets and the interest charged on pension scheme liabilities. The net pension charge increased to £32 million (six months to 30 June 2008: £22 million income) reflecting lower rates of return on asset values offset by higher discount rates on liabilities.
