Parliamentary Commission on Banking StandardsCorporate Banking Advances over £20 million, for the information of the HBOS Board Approved during the period 1st September 2002 to 30th September 2002

PRESENTER: GEORGE MITCHELL, 29TH OCTOBER 2002

Connection

Description

Existing

Facilities

£000’s

Increase/

Decrease

£000’s

New Facilities

£000’s

Margin

bps

Fees

Earned

£000’s

Risk

Rating

Post Tax

ROE

%

Post Tax

RAROE

%

Other retail sale in specialised areas

0

963,000

963,000

286

11,325

6

39.20

22.10

Retail sale of clothing

0

913,000

913,000

223

14,370

5

34.50

26.40

Property investment

830,183

48,937

879,120

100

595

6

16.80

16.60

Manufacture of paints, varnishes and similar coatings

0

582,278

582,278

283

3,973

6

96.00

33.50

Retail sale of hardware, paints and glass

95,594

309,513

405,107

339

3,400

5

56.40

36.10

Property investment

338,067

300

338,367

200

58

6

30.50

29.00

Property development

268,250

13,500

281,750

150

75

6

40.50

39.20

Scheduled passenger air transport

0

272,667

272,667

53

1,494

5

61.70

57.80

Property investment

113,125

117,000

230,125

90

250

5

13.10

13.00

Gambling and betting activities

257,500

(31,502)

225,998

264

1,589

5

37.40

37.00

Property investment

0

218,701

218,701

119

675

7

16.70

16.30

Other scheduled passenger land transport

224,500

(30,000)

194,500

77

60

5

15.40

10.20

Property investment

0

174,194

174,194

95

1,181

5

15.40

14.60

Property investment

142,150

12,000

154,150

110

275

3

15.60

15.00

Construction of domestic buildings

119,250

22,450

141,700

154

215

6

18.10

17.10

Motion picture and video distribution

0

140,000

140,000

8

375

1

n/a

n/a

Manufacture of pulp, paper, publishing and printing

103,439

26,115

129,554

244

1,648

6

29.60

1.20

Extraction of crude petroleum and natural gas

0

120,667

120,667

213

435

4

34.50

17.60

Private investment company

105,306

6,410

111,716

300

64

5

37.60

37.30

Mixed property interests

105,736

(2,000)

103,736

176

10

1

19.00

18.90

Other construction work involving special trades

0

103,365

103,365

228

1,339

5

50.10

49.20

Publishing of newspapers

72,563

19,000

91,563

168

191

5

19.30

6.30

Other supporting air transport activities

0

91,065

91,065

278

1,318

5

45.60

39.70

Property investment

0

83,670

83,670

164

705

6

22.30

20.00

Extraction of crude petroleum and natural gas

59,269

23,980

83,249

246

166

4

28.30

28.00

Industrial maintenance services

0

75,251

75,251

254

1,110

4

50.90

50.10

Investing in distressed debt

71,408

0

71,408

303

481

6

41.90

41.50

Manufacture of other food products

62,870

7,200

70,070

37

0

1

Property investment

80,954

(10,924)

70,030

118

0

5

12.90

11.30

Other artistic and literary creation and interpretation

59,500

9,000

68,500

135

384

2

19.60

16.50

Property investment

41,568

21,505

63,073

175

292

4

22.50

22.40

Extraction of crude petroleum and natural gas

1,880

57,433

59,313

160

392

5

33.20

9.80

Scheduled passenger air transport

0

56,875

56,875

300

0

4

33.20

28.80

Property development

0

56,553

56,553

205

843

5

55.10

55.10

Property investment

0

56,194

56,194

218

647

7

28.50

22.30

Property development

39,772

9,010

48,782

163

85

6

26.90

25.20

Financial intermediation

0

46,178

46,178

160

332

3

24.50

24.30

Manufacture of plastics in primary forms

0

45,915

45,915

145

582

5

68.90

34.40

Manufacture of pharmaceuticals, medicines, chemicals and botanical products

0

43,600

43,600

251

800

5

41.40

24.70

Manufacture of equipment for concrete crushing and screening and roadworks

0

43,100

43,100

229

700

5

33.40

12.70

Pension fund trustees

42,000

0

42,000

100

0

4

18.10

17.80

Manufacture of cartons, boxes, cases and other containers

38,000

2,200

40,200

100

10

3

18.30

14.90

Wholesale of household goods

38,718

801

39,519

234

705

5

26.70

13.80

Manufacture of industrial process control equipment

0

39,248

39,248

282

703

5

37.70

14.60

Renting of other machinery and equipment

0

37,867

37,867

252

361

5

37.40

32.20

Fund management activities

40,600

(4,740)

35,860

100

36

4

14.50

14.40

Sale of motor vehicle parts and accessories

0

35,000

35,000

245

325

5

30.90

22.30

Hotels and motels, with restaurant

0

32,925

32,925

200

280

6

25.40

20.60

Management of real estate on a fee or contract basis

27,692

5,041

32,733

184

53

3

25.40

25.00

Manufacture of medical and surgical equipment and orthopaedic appliances

27,700

5,000

32,700

200

150

3

28.60

18.50

Sale of motor vehicle parts and accessories

29,821

1,786

31,607

235

98

3

27.60

21.60

Photographic activities

28,600

2,465

31,065

121

10

3

16.20

13.60

Property investment

0

30,740

30,740

125

135

6

18.00

16.30

Property investment

250,000

(220,000)

30,000

110

145

7

15.90

13.00

Freight sea and costal water transport

13,262

16,340

29,602

155

65

4

19.30

15.00

Extraction of crude petroleum and natural gas

0

28,213

28,213

175

78

4

21.00

20.70

Building and repairing of pleasure and sporting boats

0

28,070

28,070

222

491

5

32.70

21.60

Manufacture of cartons, boxes, cases and other containers

0

27,778

27,778

100

92

6

20.10

(21.30)

Licensed restaurants

5,147

22,059

27,206

200

138

5

24.60

22.40

Service activities incidental to oil and gas extraction

23,319

3,848

27,167

131

60

4

20.00

17.80

Processing and preserving of fish and fish products

24,426

2,300

26,726

212

30

4

32.30

17.90

Transport via pipelines

0

26,667

26,667

280

200

4

34.90

30.90

Manufacture of games and toys

12,304

14,200

26,504

75

15

1

20.20

14.20

Property investment

17,483

8,741

26,224

325

44

5

39.00

38.20

Construction of domestic buildings

0

25,000

25,000

100

0

7

14.00

8.50

Property investment

0

24,940

24,940

145

65

6

18.80

17.30

Manufacture of paper stationery

26,900

(2,250)

24,650

226

35

3

31.80

19.60

Mining and agglomeration of hard coal

20.714

3,871

24,585

483

65

7

66.30

3.20

Extraction of crude petroleum and natural gas

12,759

11,543

24,302

163

0

4

17.30

17.00

Sale of motor vehicles

27,400

(3,750)

23,650

140

0

4

19.60

11.10

Nursing home activities

0

23,474

23,474

248

1,273

5

36.80

34.10

Property development, hotels and personal lending

19,078

64

(940)

(3,000)

8,000

23,202

365

136

250

250

5

5

5

60

4

6

4

6

30.14

27.71

Supermarkets

13,150

9,863

23,013

20

218

4

10.10

10.10

Freight sea and costal water transport

16,340

6,536

22,876

150

139

3

19.90

16.70

Manufacture of electronic industrial process control equipment

19,480

3,150

22,630

221

61

7

30.30

n/a

Manufacture of parts and accessories for motor vehicles and their engines

16,241

6,369

22,610

266

101

5

36.00

21.60

Property investment

25,123

(2,643)

22,480

271

3

6

30.40

28.80

Canteens and catering

19,300

3,177

22,477

150

25

1

19.30

18.80

Wholesale of pharmaceutical goods

8,033

13,967

22,000

200

114

3

23.60

19.50

Engineering and consultative design activities

12,175

9,650

21,825

196

160

4

29.50

25.10

Property development

20,280

1,404

21,684

137

158

4

31.50

31.40

Construction of highways, roads, airfields and sports facilities

20,824

0

20,824

314

10

8

32.40

26.70

Property investment

0

20,800

20,800

150

30

6

19.20

17.80

Extraction of crude petroleum and natural gas

13,333

7,356

20,689

175

3

4

19

18.70

Retail sale of books, newspapers and stationery

20,040

0

20,040

114

0

3

15.50

6.10

Activities of venture and development capital companies

0

19,000

19,000

n/a

n/a

n/a

n/a

n/a

Construction of domestic buildings

0

18,200

18,200

175

128

5

22.30

21.90

Activities of venture and development capital companies

0

12,500

12,500

n/a

n/a

n/a

n/a

n/a

Activities of venture and development capital companies

0

10,000

10,000

n/a

n/a

n/a

n/a

n/a

Retail Division

415,000

247,000

662,000

125

Variable

n/a

n/a

n/a

Certain facilities require to be approved at a higher level due to

**Mezzanine Finance

***Equity Investment

Advances £20 million and above, for the information of the HBOS Board Approved during the period 1st September to 30th September 2002

PRESENTER: COLIN MATTHEW, 29TH OCTOBER 2002

Connection

Industry Description

Existing

Facilities

£000s

Increase/

Decrease

New Facilities

£000s

Risk

Rating

Margin

bps

Fees

£000

Motor Vehicle Retailer

60,227

4,000

64,227

122

0

Operators of Bars & Nightclubs

a*

59,211

0

59,211

3

400

0

Commercial Property Investment & Development

47,186

2,840

50,026

4

113

0

Automotive Design & Specialist Engineering

36,724

10,400

47,124

5

166

125

Residential Property Development

33,105

13,585

46,690

300

364

Operator of Dental Practices

27,650

15,675

43,325

4

134

100

Commercial Property Investment

40,969

1,136

42,105

5

137

9

Commercial Property Investment

18,190

17,420

35,610

6

125

86

Commercial Property Investment

33,799

-311

33,488

1

105

78

Commercial Property Investment

31,458

573

32,031

6

150

6

Commercial Property Investment

0

29,500

29,500

6

125

200

Commercial/Residential Property Investment

26,700

1,160

27,860

6

150

9

[illegible]

25,493

289

25,781

5

150

1

Commercial Property Investment

23,329

1,284

24,613

6

125

4

Healthcare

0

23,400

23,400

6

125

180

IT Leasing

13,388

10,000

23,388

-

175

13

Commercial Property Investment

18,100

4,300

22,400

5

178

14

Commercial Property Investment & Development

13,675

6,750

20,425

6

250

65

Art Dealers

19,813

373

20,186

2

169

1

Training & Outplacement Services

0

2,270

2,270

5

262

43

a* renewal of contract hire limit £2.1 million only

b* includes mezzanine finance of £450,000

Prepared 4th April 2013