Underlying earnings per share increased 6% to 106.2p from 100.5p in 2006, after recording negative fair value adjustments on traded investment securities of £227m and claims of £135m arising from the 2007 summer floods.

Customer lending in 2007 rose 14% to £430 billion and customer deposits in 2007 increased 15% to £243.2 billion. Tier 1 capital ratio declined to 7.4% from 8.1% and total ratio fell 11.1% from 12% in 2006.

Advances to customers increased by 14% to £430.0 billion from £376.8 billion in 2006 reflecting the growth of 22% in corporate loans and 38% in international loans, and 7% growth in retail loans.

The company proposed a final dividend of 32.3p resulting in a full year dividend up 18% to 48.9p from 41.4p in 2006.

Impairment losses on loans and advances in 2007 were £1.3 billion compared to £1.1 billion in 2006 as reported in the preliminary financial statement.


Gainers & Losers

Vedanta Resources led gainers in the FTSE 100 stocks with a rise of 6.13% followed by increases in Admiral Group of 4.01%, in Schroders Plc of 2.95%, in Unilever Plc of 2.65%, and in Kazakhmys Plc of 2.52%.

Commodity stocks continue to rally as investors sought the metals to hedge against a falling U.S. dollar.

HBOS led decliners in the FTSE 100 stocks with a decline of 6.81% followed by losses in Yell Group of 4.46%, in Old Mutual Plc of 3.50%, in London Stock Exchange of 2.98%, and in Standard Life of 2.67%.

HBOS fell after the mortgage lender’s annual profit posted a lower-than-expected profit increase.

Dividend for the year rose to 48.9p, an 18% rise from a year ago. The lender also forecasted that 2008 will be a challenging financial year.

Other financial stocks fell as well. Alliance & Leicester tumbled 1% and Royal Bank of Scotland shed 0.85% despite a block trade of 50 million shares that prompted speculation of an investment from Qatar Investment Authority.

Old Mutual declined after it posted a 5% drop in annual profit.