- Home
- >
- Investor Relations
- >
- Key financial data
- >
- Reconciliation of adjusted operating profit to profit after tax
RECONCILIATION OF ADJUSTED OPERATING PROFIT TO PROFIT AFTER TAX
For the year ended 31 December 2008
Reconciliation of adjusted operating profit to profit after tax
|
Notes
|
Year ended
31 December £m 2008 |
Year ended
31 December Restated* £m 2007 |
|
| Europe |
3(ii)
|
266
|
268
|
| South Africa |
3(ii)
|
1,191
|
1,254
|
| United States |
3(ii)
|
(270)
|
260
|
| Other |
3(ii)
|
(17)
|
2
|
|
1,170
|
1,784
|
||
| Finance costs |
(140)
|
(119)
|
|
| Other shareholders' expenses |
(31)
|
(41)
|
|
| Adjusted operating profit2 before tax |
999
|
1,624
|
|
| Adjusting items |
4(i)
|
(168)
|
66
|
| Profit for the financial year before tax (excluding policyholder tax) |
831
|
1,690
|
|
| Income tax attributable to policyholder returns |
3(ii)
|
(236)
|
60
|
| Profit for the financial year before tax |
595
|
1,750
|
|
| Total income tax expense |
5(i)
|
88
|
(504)
|
| Profit after tax for the financial year |
683
|
1,246
|
Adjusted operating profit after tax attributable to ordinary equity holders
|
Notes
|
Year ended
31 December £m 2008 |
Year ended
31 December Restated* £m 2007 |
|
| Adjusted operating profit2 before tax |
999
|
1,624
|
|
| Tax on adjusted operating profit |
5(iii)
|
(86)
|
(418)
|
| Adjusted operating profit2 after tax |
913
|
1,206
|
|
| Minority interest - ordinary shares |
6(iii)
|
(218)
|
(242)
|
| Minority interest - preferred securities |
6(ii)
|
(54)
|
(50)
|
| Adjusted operating profit2 after tax attributable to ordinary equity holders |
641
|
914
|
|
| Adjusted weighted average number of shares - (millions) |
7(i)
|
5,230
|
5,411
|
| Adjusted operating earnings per share3 - (pence) |
7(ii)
|
12.2
|
16.9
|
Basis of preparation
1 The reconciliation of adjusted operating profit has been prepared so as to reflect the Directors' view of the underlying long-term performance of the Group. The statement reconciles adjusted operating profit to profit after tax as reported under IFRS as adopted by the EU.
2 For long-term business and general insurance businesses, adjusted operating profit is based on a long-term investment return, includes investment returns on life funds' investments in Group equity and debt instruments, and is stated net of income tax attributable to policyholder returns. For the US Asset Management business it includes compensation costs in respect of certain long-term incentive schemes defined as minority interests in accordance with IFRS. For all businesses, adjusted operating profit excludes goodwill impairment, the impact of acquisition accounting, revaluations of put options related to long-term incentive schemes, the impact of closure of unclaimed shares trusts, profit/(loss) on disposal of subsidiaries, associated undertakings and strategic investments, dividends declared to holders of perpetual preferred callable securities, and fair value profits/(losses) on certain Group debt movements.
3 Adjusted operating earnings per ordinary share is calculated on the same basis as adjusted operating profit. It is stated after tax attributable to adjusted operating profit and minority interests. It excludes income attributable to Black Economic Empowerment trusts of listed subsidiaries. The calculation of the adjusted weighted average number of shares includes own shares held in policyholders' funds and Black Economic Empowerment trusts.
