Interim Results-Part 2

Lloyds TSB Group PLC
28 July 2000

PART 2

LLOYDS TSB GROUP

                      PERFORMANCE BY SECTOR

Profit before tax by main businesses

                                      Half-year to  Half-year to
                                        30 June     31 December
                                     2000     1999      1999  
                                      £m       £m        £m

UK Retail Banking                     391      368       421
Mortgages                             429      445       423
Insurance and Investments*            612      413       460
UK Retail Financial Services        1,432    1,226     1,304
Wholesale Markets                     380      356       372
International Banking                 263      223       221
Central group items                    (1)      36        83
Operating profit - excluding        2,074    1,841     1,980
short-term fluctuations in
investment returns, changes in
economic assumptions,
exceptional restructuring costs,
pension provision and loss on
sale and closure of businesses
Short-term fluctuations in
investment returns (page 36,
note 7)                               (59)      12        16     
Changes in economic assumptions 
(page 36, note 8)                     127        -         -
Exceptional restructuring costs 
(page 36, note 9)                     (74)       -         -
Pension provision                       -        -      (102)
Loss on sale and closure of
businesses                              -        -      (126)
Profit before tax                   2,068    1,853     1,768

* including 'normalised' investment returns based on long-term
rates of investment return (page 36, note 7)

1999  figures have been restated to take account of a number  of
organisational changes and changes in internal cost allocation.

Historically it has been the Group's practice for central income
items  such  as  the earnings on surplus Group capital  and  the
profit  on  the sale of investments to be allocated to  business
units  for  statutory reporting purposes.  To avoid  unnecessary
volatility  in business unit earnings, as a result of  decisions
at  the Group Centre on the build up and use of surplus capital,
these central income items will in the future be reported within
central  group  items.  The effect on 1999 first  half  figures,
which  have been restated, is an increase in central group items
of  £53  million offset by a commensurate reduction in  business
unit earnings.

                          Page 12 of 39

LLOYDS TSB GROUP

UK Retail Financial Services

Total  profit  before tax, excluding short-term fluctuations  in
investment returns, changes in the economic assumptions  applied
to    our   long-term   assurance   business   and   exceptional
restructuring  costs,  from UK Retail Financial  Services  which
encompasses  UK  Retail Banking, Mortgages,  and  Insurance  and
Investments,  increased by £206 million,  or  17  per  cent,  to
£1,432 million from £1,226 million in the first half of 1999.

UK Retail Banking and Mortgages

Total  profit  before tax from UK Retail Banking  and  Mortgages
rose  by  £7  million, or 1 per cent, to  £820  million.  Total  
income increased  by 2 per cent  and costs  increased by 5 per 
cent,  largely as a result of e-commerce  investment  costs
totalling  £40  million.  Bad debt provisions decreased  by  
£13 million, or  6 per cent, to £197 million.

                                      Half-year to  Half-year to
                                        30 June     31 December
                                     2000     1999      1999
                                      £m       £m        £m

Net interest income                 1,477    1,452     1,491
Other income                          557      542       548
Total income                        2,034    1,994     2,039
Operating expenses                  1,017      971       980
Trading surplus                     1,017    1,023     1,059
Provisions for bad and doubtful 
debts                                 197      210       215
Profit before tax                     820      813       844

Profit before tax
Retail Banking                        391      368       421
Mortgages                             429      445       423
                                      820      813       844

Efficiency ratio                    50.0%    48.7%     48.1%
Total assets (period-end)         £68.4bn  £62.3bn   £64.3bn
Total risk-weighted assets 
(period-end)                      £42.0bn  £38.6bn   £39.7bn

                          Page 13 of 39

LLOYDS TSB GROUP

UK Retail Banking
(the UK retail businesses of Lloyds TSB, providing banking and
financial services to personal and small business customers;
private banking; and stockbroking)

Pre-tax profit from UK Retail Banking rose by £23 million, or  
6 per cent, to £391 million.  Total income increased  by  4  per
cent,  costs increased by 5 per cent largely as a result  of  e-
commerce  investment costs, and there was a reduction of  2  per
cent in bad debt provisions.

Personal  loans and credit card lending increased by 8 per  cent
since the end of June 1999 and balances on current accounts  and
savings  and  investment accounts grew by 11 per cent  over  the
same  period,  supported  by  the launch  of  a  number  of  new
products.   The  popularity of the Group's Added  Value  current
accounts  continued  with  Lloyds  TSB  maintaining  its  market
leadership  in  this  area  with   over 1.7 million accounts  in
operation.   The Group also continues to maintain market-leading
positions in all of its core markets, including personal current
accounts, savings and business banking.

We   have   continued  to  develop  a  number   of   alternative
distribution  channels in order to offer the  broadest  possible
range  of  access points for our customers in order  to  improve
service and to enhance revenue growth.  PhoneBank, our telephone
banking  operation,  is one of the largest in  Europe  with  1.2
million  customers.  It handled some 7 million calls during  the
half-year.   PhoneBank  Express, our  leading  edge  interactive
voice recognition system, now has some 630,000 registered users.
Our supermarket banking operation, branded 'easibank', continues
to  expand and we now have 18 branches in ASDA stores  or  large
shopping centres.

We  continue to make substantial progress in the four main areas
of  focus  in our e-commerce strategy.  We are on target  for  1
million  online customers of LloydsTSB.com by the  end  of  this
year and we now have nearly 500,000 customers registered to  use
our  online banking service, 62 per cent of whom are  using  the
service  at  least once a week.  We will launch  our  standalone
internet bank, evolvebank.com later this year in both Spain  and
the UK.

We   have  also  made  substantial  progress  on  a  number   of
initiatives  for  business customers.  The  Group  has  recently
launched  Success4business.com, an internet portal  designed  to
help  small  business  customers maximise  opportunities  in  e-
commerce  and  LloydsTSBMarketplace, a  trade  facilitation  web
service, which is currently being piloted, that allows suppliers
and  buyers access to a secure e-enabled environment to  conduct
business  with a wide variety of companies within their specific
market place.

Major  efficiency  improvements  are  being  achieved  by  using
internet  and intranet technology throughout our business.   Our
new  e-procurement system has recently been launched  throughout
the  Group  and staff can now make purchases from their  desktop
PCs, saving substantial time and money as all purchases are made
using  the Group's preferred suppliers with whom discounts  have
been negotiated.

                          Page 14 of 39

LLOYDS TSB GROUP

UK Retail Banking (continued)

Internet  customers  generally tend to be high  value  customers
and,  because access via the internet is so easy and offers  new
ways  of  managing  their finances, internet customers  tend  to
contact  their bank more often once on the internet.  We believe
that within 3-4 years we will see more customer contact via  the
internet  than  via  branches, even if only a  minority  of  our
customers are banking on the internet by then.  This will enable
us  to understand much better, and interact more often with, our
most  valuable customers.  We are thus committed  to  being  the
leader  in  this market - the latest step in this process  being
the launch of a greatly enhanced website in July 2000.

On  20 July 2000 the Group announced a mobile banking offer,  in
association  with  BT  Cellnet, that  will  provide  Lloyds  TSB
customers with access to the Bank's internet banking service, as
well  as  a range of other online services, from November  2000.
The  unique  package  will also include a  free  mobile  banking
handset,  a discounted mobile call tariff, free fixed  line  off
peak  PC  internet access and online shopping services.   It  is
anticipated that over the next two years a significant number of
customers  will take advantage of this offer which forms  a  key
part  of  the Group's commitment to enable its customers  to  do
their banking where, when and how they choose.

On  24 July 2000 the Group announced that it is launching a  £20
million  joint  venture with antfactory, a leading  European  e-
commerce  investment  company.  The new  joint  venture,  called
Valuefactory Ventures, aims to identify, invest in  and  develop
global  new  economy  businesses as  standalone,  value-creating
companies.  The focus will be on investment opportunities  which
can  benefit from the resources and capabilities of  Lloyds  TSB
and antfactory.

Business  Banking continues to attract a substantial  number  of
new customers, and has further consolidated the Group's position
as  a  market  leader in the recruitment of start-up businesses.
Some  62,000 new business customers chose Lloyds TSB during  the
half-year.  Revenue growth and profitability has again  improved
and bad debts continued at a very low level.

UK  Private  Banking had another successful  half-year.   Profit
before  tax  increased  by  15 per cent to   £53 million,  from
£46  million  in  the first half of 1999.  £0.7 billion  of  new
funds were gained in the first half and total funds managed  and
administered now stand at some £12.1 billion.

Lloyds  TSB Stockbrokers, one of the largest retail stockbrokers
in  the  UK,  continued to perform well  as  a  result  of  high
transaction   levels  and  efficiency  gains.   Pre-tax   profit
increased to £12 million compared with £10 million in the  first
half of last year.

                          Page 15 of 39

LLOYDS TSB GROUP

Mortgages
(covering  the  Group's  total  UK  mortgage  business   through
Cheltenham  &  Gloucester,  Lloyds  TSB,  Lloyds  TSB  Scotland,
Scottish Widows Bank and C&G Mortgage Direct)

                                      Half-year to  Half-year to
                                        30 June     31 December
                                     2000     1999      1999  
                                      £m       £m        £m

Profit before tax                   £429m    £445m     £423m   
Efficiency ratio                    23.7%    22.0%     23.1%   

Gross new mortgage lending         £5.4bn   £4.7bn    £6.0bn   
Market share of gross new 
mortgage lending                     9.5%     9.4%      9.3%   
Net new mortgage lending           £2.1bn   £1.1bn    £1.7bn   
Market share of net new 
mortgage lending                    10.7%     7.0%      7.8%   
Mortgages outstanding 
(period-end)                      £50.2bn  £45.8bn   £47.5bn   
Market share of mortgages 
outstanding                          9.7%     9.6%      9.5%   

Competition  in  the mortgage market was evident throughout  the
half-year  leading,  as anticipated, to  a  lower  net  interest
margin   which   resulted  in  pre-tax  profit  from   Mortgages
decreasing by £16 million, or   4 per cent, to £429 million from
the  first half of 1999, but increasing by £6 million, or 1  per
cent, compared to the second half of 1999.  In comparison to the
second  half  of last year margins were stable.  The  efficiency
ratio  of the Group's total mortgage business was 23.7 per  cent
compared  with  22.0 per cent in the first half  of  1999.   The
Group  continues  to  be  one  of the  most  efficient  mortgage
providers in the United Kingdom.

Against the competitive background, the Group achieved in excess
of  its  natural  market share of net new  lending.   Gross  new
lending increased by 15 per cent to £5.4 billion, compared  with
£4.7  billion a year ago, and net new lending was £2.1  billion,
significantly higher than £1.1 billion in the first half of last
year.   This  represented an estimated market share of  net  new
lending of 10.7 per cent, higher   than  our 9.7 per cent  share
of   mortgages  outstanding.   Our  pipeline  of  new   business
continues  at  high levels and we are confident that  this  will
translate into strong gross lending over the next few months.

C&G  continues  to  benefit  from  mortgage  sales  distribution
through  the Lloyds TSB branch network, the IFA market and  from
the  strength of the C&G brand.  Once again the provision  of  a
first   class  service  has  been  a  significant  factor   with
independent   financial   advisers  awarding   C&G   its   fifth
consecutive 5-star rating in the 1999 Financial Adviser  service
awards.   Business  levels  sourced from  intermediaries  remain
strong.

A  relatively low arrears position and the beneficial effect  of
house  price  increases  have meant  that  bad  debt  provisions
remained at a low level.  New provisions were offset by releases
and  recoveries resulting in a net credit of £5 million for  the
half-year,  compared with a charge of £4 million  in  the  first
half  of 1999.  The quality of our mortgage lending remains very
satisfactory.

                          Page 16 of 39

LLOYDS TSB GROUP

Insurance and Investments
(the life, pensions and unit trust businesses of Scottish Widows
and  Abbey Life; general insurance underwriting and broking; and
Scottish Widows Investment Partnership)

                                      Half-year to  Half-year to
                                        30 June     31 December
                                     2000     1999      1999  
                                      £m       £m        £m

Life and pensions
Scottish Widows (including
bancassurance)                        230      103       131
Abbey Life                             73       80        76
                                      303      183       207
General insurance                     289      218       243
Operating profit from Insurance*      592      401       450
Scottish Widows Investment 
Partnership                            20       12        10
Total operating profit*               612      413       460

Short-term fluctuations in 
investment returns (page 36, 
note 7)                               (59)      12        16

Changes in economic assumptions 
(page 36, note 8)                     127        -         -

*  including 'normalised' investment returns based on long-term
rates of investment return and excluding changes in the economic 
assumptions applied to our long-term assurance business

Operating  profit, including investment returns based  on  long-
term  rates of investment return, from Insurance and Investments
increased  by  48  per cent to £612 million from  £413  million,
largely  as  a result of the inclusion, since 3 March  2000,  of
Scottish Widows within our life and pensions business.

Profit  before tax from our life and pensions business increased
by  £120  million,     or 66 per  cent,   to  £303  million.
Weighted sales of life, pensions and unit trusts increased by 
28 per  cent as  the  sale, on 1 February 2000,  of  the  new
business  capability of Abbey Life was offset by the  inclusion,
from 3 March 2000, of Scottish Widows.

Pre-tax  profit  from  general insurance operations,  comprising
underwriting and broking, rose by  £71 million, or 33 per  cent,  
to  £289  million, mainly as a result  of  continued  strong   
revenue  growth  and  an  improvement  in   our    claims 
experience.   The  Group  has maintained  its  position  as  the
leading  distributor of personal lines insurance in  the  United
Kingdom.

The  merger  of Scottish Widows Investment Management  and  Hill
Samuel  Asset Management was completed on 30 June 2000, and  the
enlarged  asset management operation was launched  under  a  new
brand, Scottish Widows Investment Partnership.  The creation  of
Scottish  Widows Investment Partnership, with in excess  of   
£89 billion  of  funds under management, will enable  the Group  
to become a leading player in the asset management industry. 
Pre-tax  profit from investment management for the half-year was 
£20 million,  up 67 per cent from £12 million in the first  half  
of 1999.

                          Page 17 of 39

LLOYDS TSB GROUP

Insurance and Investments (continued)

Life and pensions (including unit trusts)

                                      Half-year to  Half-year to
                                        30 June     31 December
                                     2000     1999      1999  
                                      £m       £m        £m

New business                          100       67        67
Existing business                     187      127       133
Investment earnings                    90       16        22
Life and pensions distribution costs  (88)     (48)      (51)
                                      289      162       171
Unit trusts                            73       57        81
Unit trust distribution costs         (59)     (36)      (45)
                                       14       21        36
Operating profit*                     303      183       207

* including 'normalised' investment returns based on long-term
rates of investment return (page 36, note 7)

Weighted sales of life, pensions and unit trusts increased by 
28  per cent   to  £352.5 million   from  £275.2 million in  the
first  half of 1999 as a result of the inclusion, from  3  March
2000, of Scottish Widows.  The withdrawal from sale of mortgage-
related  endowment policies slowed the sales of regular  premium
life policies.

Scottish Widows is now the sole assurance brand in the Group and
we  expect to see a significant improvement in both branch sales
and  in sales derived via independent financial advisers, in the
second half of the year.

In  the  second half of 1999, the Group's results were adversely
affected by an increase in the pension provision of £102 million
for redress to past purchasers of pension policies, which raised
the total provisions made for this purpose to £802 million.   At
30 June 2000 £543 million of the £802 million provision had been
used.   We remain satisfied that no further provision should  be
made  at this stage but will continue to review the adequacy  of
this provision.

In addition, a £114 million provision was made within Abbey Life
in  1998 for liabilities under certain unit-linked products with
guaranteed annuity options written in the mid-1960s to the  mid-
1980s.   We continually review the adequacy of the provision  at
Abbey  Life  and remain satisfied that no further  provision  is
necessary at this stage.  Scottish Widows' approach to  pensions
with  the  option  of  a guaranteed annuity  rate  is  fully  in
accordance  with  the  contract  terms  of  those  policies  and
Scottish  Widows has assets to match its liabilities in  respect
of guaranteed annuity options.  Moreover, the assets are held in
such  a way that should the liabilities increase then the assets
will also increase to reflect this.

                          Page 18 of 39

LLOYDS TSB GROUP

Insurance and Investments (continued)

                                      Half-year to  Half-year to
                                        30 June     31 December
                                     2000     1999      1999  
                                      £m       £m        £m

Total new business premium income 
and unit trust sales:
Regular premiums                     71.2     69.5      59.9
Single premiums                   1,298.8    790.2   1,085.5
Unit trusts                       1,057.7    911.9     858.3

Weighted sales (regular + 
1/10 single)                        352.5    275.2     290.0

Scottish Widows (including
bancassurance)
Regular premiums:
Life - mortgage related              11.1     16.5      14.9
     - non-mortgage related           8.4      4.7       5.1
Pensions                             44.4     17.3      10.9
Fund management                       1.3        -         -
Health                                2.7      2.6       2.3
Total regular premiums               67.9     41.1      33.2
Single premiums:
Life                                437.8    198.4     131.2
Annuities                           126.1     47.7      54.0
Pensions                            140.3     34.5      44.8
Fund management                     572.9    382.0     697.0
Total single premiums             1,277.1    662.6     927.0
External unit trust sales:
Regular payments                     50.6     38.5      38.2
Single amounts                    1,003.8    832.0     792.5
Total external unit trust sales   1,054.4    870.5     830.7

Abbey Life
Regular premiums:
Life - mortgage related               0.4      4.2       5.1
     - non-mortgage related           0.7      5.7       6.8
Pensions                              2.2     17.7      14.4
Health                                  -      0.8       0.4
Total regular premiums                3.3     28.4      26.7
Single premiums:
Life                                  3.5     14.8      32.2
Annuities                             8.4     58.9      50.0
Pensions                              9.8     53.9      76.3
Total single premiums                21.7    127.6     158.5
External unit trust sales:
Regular payments                      0.1      0.9       1.5
Single amounts                        3.2     40.5      26.1
Total external unit trust sales       3.3     41.4      27.6

Total life funds under management  49,910   25,080    26,542

                          Page 19 of 39

LLOYDS TSB GROUP

Insurance and Investments (continued)

General Insurance

                                      Half-year to  Half-year to
                                        30 June     31 December
                                     2000     1999      1999  
                                      £m       £m        £m

Premium income from underwriting
Creditor                               69       65        71
Home                                  108       98       105
Health                                 26       28        27
Other                                   -        1         -
Re-insurance premiums                  (3)      (2)       (3)
                                      200      190       200

Commissions from insurance broking
Creditor                              105       80        95
Home                                   17       18        17
Health                                 10       10        11
Other                                  59       42        54
                                      191      150       177

Operating profit*                     289      218       243

* including 'normalised' investment returns based on long-term
rates of investment return (page 36, note 7)

Operating   profit,   excluding   short-term   fluctuations   in
investment   returns,   from   general   insurance   operations,
comprising underwriting and broking, rose by £71 million, or  33
per cent, to £289 million.

Income  from  creditor  insurance  increased  by  20  per  cent,
reflecting  higher personal sector loan values and higher  sales
of  business  loan  protection.   Sales  of  household  policies
increased by 8 per cent.

The  overall increase in sales, together with renewal  business,
produced  a  27  per  cent  increase in commission  income  from
broking and a 5 per cent increase in earned premium income  from
underwriting.  Investment income increased by 7 per cent to  £30
million.

The  overall claims ratio of 35.0 per cent was lower than in the
first half of 1999 (43.8 per cent).  Claims were £13 million, or
15 per cent, lower at £71 million than in the first half of last
year.   This reflected lower weather related claims following  a
mild winter, and lower unemployment claims.

                          Page 20 of 39

LLOYDS TSB GROUP

Wholesale Markets
(banking,   treasury,  large  value  lease  finance,   long-term
agricultural  finance,  share  registration,  venture   capital,
factoring  and  invoice discounting, and other related  services
for  major  UK and multinational companies, banks and  financial
institutions, and medium-sized UK businesses; and Lloyds UDT)

                                      Half-year to  Half-year to
                                        30 June     31 December
                                     2000     1999      1999  
                                      £m       £m        £m

Net interest income                   426      469       461
Other income                          277      216       228
Total income                          703      685       689
Operating expenses                    285      275       289
Trading surplus                       418      410       400
Provisions for bad and doubtful debts  34       50        25
Amounts written off fixed asset
investments                             4        4         3
Profit before tax                     380      356       372
Efficiency ratio                    40.5%    40.1%     41.9%   
Total assets (period-end)         £61.7bn  £62.3bn   £61.5bn

Total risk-weighted assets
(period-end)                      £32.1bn  £31.4bn   £31.6bn

Wholesale Markets pre-tax profit increased by £24 million, or  7
per  cent,  to  £380 million.  Provisions for bad  and  doubtful
debts  fell  by £16 million to £34 million.  Total  assets  were
flat and risk-weighted assets grew by 2 per cent.

Our  Corporate  and Financial Institutions' businesses,  serving
the larger corporate market and financial institutions, achieved
record results.  Corporate Banking's continuing focus on quality
income  growth  ensured  another strong performance.   Bad  debt
provisions  remained  at a relatively  low  level.   Lloyds  TSB
Leasing  maintained  its position as the  largest  'big  ticket'
leasing  company  in  the UK and Lloyds TSB  Registrars  further
consolidated  its  market leadership position and  continued  to
perform strongly as a result of higher corporate activity.

Commercial  Banking,  serving  the  commercial  middle   market,
continued  to perform well, with revenue increases,  tight  cost
control   and   lower  provisions,  all  contributing   to   the
achievement  of record profits for the half-year.   Agricultural
Mortgage  Corporation continued to expand its  activity  in  the
provision of long-term finance to farmers.

Higher  short-dated  funding costs resulted  in  slightly  lower
income  from  Treasury  sterling money market  operations.   The
Group's  activity in the derivative markets continues to  remain
focused on straight cash based products.

                          Page 21 of 39

LLOYDS TSB GROUP

International Banking
(banking and financial services overseas in four main areas: The
Americas, New Zealand, Europe and Offshore Banking; and Emerging
Markets Debt)

                                      Half-year to  Half-year to
                                        30 June     31 December
                                     2000     1999      1999  
                                      £m       £m        £m

Net interest income                   379      368       366    
Other income                          194      199       179    
Total income                          573      567       545    
Operating expenses                    294      289       291    
Trading surplus                       279      278       254    
Provisions for bad and doubtful
debts                                  16       55        33     
Profit before tax                     263      223       221    

Efficiency ratio                    51.3%    51.0%     53.4%   
Total assets (period-end)         £19.2bn  £19.3bn   £19.4bn   
Total risk-weighted assets
(period-end)                      £11.7bn  £11.7bn   £11.6bn

International Banking pre-tax profit was £40 million, or 18  per
cent,  higher  at £263 million compared with the first  half  of
1999.   Excluding  the Emerging Markets Debt portfolio,  pre-tax
profit  increased  by    £19 million, or 9  per  cent,  to  £220
million.   Excluding  the  EMD portfolio,  pre-tax  profit  from
International  Banking represented 11 per cent of Group  pre-tax
profit  of which 4 per cent related to our New Zealand business,
5  per cent to our Europe and offshore banking operations and  2
per cent to Latin America.

Profits from New Zealand in local currency terms increased by 19
per   cent.   International  private  banking  and  the  Group's
offshore  banking operations both showed improvements  over  the
first half of 1999.

Our  consumer  finance  business  in  Brazil,  Losango  Consumer
Finance,  made  a pre-tax profit of  £22  million, compared with 
a profit of £13 million in the first half of 1999.

The  Emerging  Markets Debt portfolio contributed  £43  million,
which  included a release of provisions of £36 million following
the repayment of debt by certain borrowers and some asset sales.
This  compared with a contribution of £22 million in  the  first
half  of  1999,  which  included  a  release  of  provisions  of
£15 million.

At  the  end of June 2000 the Group's provisionable exposure  to
Emerging  Market  economies  which  is  included  in  loans  and
advances  was  £1,350  million (December 1999:  £1,328  million)
against    which   provisions   of   £849   million    (December
1999:  £799  million) were held, giving cover  of  63  per  cent
(December 1999: 60 per cent).  Based on secondary market prices,
the  surplus  of market value over net book value of  the  total
Emerging  Markets Debt portfolio (including advances,  unapplied
interest and collateralised bonds held as investments) was  more
than £700 million (December 1999: £700 million).

                          Page 22 of 39

LLOYDS TSB GROUP

Central group items
(earnings on surplus capital, central costs and other
unallocated items)

                                      Half-year to  Half-year to
                                        30 June     31 December
                                     2000     1999      1999  
                                      £m       £m        £m

Accrual for payment to Lloyds 
TSB Foundations                       (18)     (15)      (16)
Earnings on surplus capital, 
central costs and other 
unallocated items                      17       51        99
                                       (1)      36        83

The  reduction in earnings on surplus capital, central costs and
other  unallocated items in the first half of 2000 reflects  the
incorporation, for the first time, of the funding  cost  of  the
purchase of Scottish Widows (page 12).

                          Page 23 of 39


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