Divisional results:
CENTRAL GROUP ITEMS

The four independent Lloyds TSB Foundations support registered charities throughout the UK that enable people, particularly those disabled and disadvantaged, to play a fuller role in society. The Foundations receive 1 per cent of Lloyds Banking Group's pre-tax profit after adjusting for gains and losses on the disposal of businesses and pre-tax minority interests, averaged over three years, instead of a dividend on their shareholdings. In 2008, £27 million was accrued for payment to registered charities.

In the year ended 31 December 2008, the contribution from Central group items was a negative £552 million compared to a negative contribution of £12 million in 2007. The result in 2008 has been significantly affected by the impact of yield curve volatility on the fair value of derivatives entered into for risk management purposes after taking into account the effect of hedge accounting adjustments. In addition, there were increased central costs that were not recharged to the divisions in connection with professional advice received during the year and an impairment charge in respect of an available-for-sale investment.