RBS 2005 Annual Report Download - page 156

154
Notes on the accounts
Notes on the accounts continued
6 Profit attributable to preference shareholders Group
Dividends paid Finance cost Finance
to equity included in cost of
preference interest preference
shareholders payable shares
2005 2005 2004
£m £m £m
Non-cumulative preference shares of US$0.01 58 115 105
Non-cumulative convertible preference shares of US$0.01 — 73 90
Non-cumulative convertible preference shares of €0.01 — 9 33
Non-cumulative preference shares of €0.01 51 — 4
Non-cumulative convertible preference shares of £0.01 — 15 15
Appropriation for premium payable on redemption and issue costs — 8 9
Total(3) 109 220 256
Equity 15
Non-equity 241
Notes:
(1) In the year ended 31 December 2005, dividends of £55,000 (2004 – £55,000) were paid on the 11% cumulative preference shares of £1 and dividends of £22,000
(2004 – £22,000) were paid on the 5.5% cumulative preference shares of £1.
(2) Following the implementation of IAS 32 on 1 January 2005, several of the Group’s preference share issues are now included in subordinated liabilities and the finance cost
thereon is included in interest payable.
(3) Between 1 January 2006 and the date of approval of these accounts, dividends amounting to US$39 million have been declared in respect of equity preference shareholders for
payment on 31 March 2006.
7 Ordinary dividends Group
2005 2004 2005 2004
p per share p per share £m £m
Final dividend for previous year declared during the current year 41.2 35.7 1,308 1,059
Interim dividend 19.4 16.8 619 529
Total dividends paid on ordinary equity shares 60.6 52.5 1,927 1,588
Final dividends are not accounted for until they have been ratified at the Annual General Meeting. At the meeting on 28 April 2006,
a dividend in respect of 2005 of 53.1 pence per share (2004 – 41.2 pence per share) amounting to a total of £1.7 billion (2004 –
£1.3 billion) is to be proposed. The financial statements for the year ended 31 December 2005 do not reflect this dividend which,if
approved, will be accounted for in shareholders’ equity as an appropriation of retained profits in the year ending 31 December 2006.
8 Profit dealt with in the accounts of the company
As permitted by section 230(3) of the Companies Act 1985, the primary financial statements of the company do not include an
income statement. Condensed information is set out below:
Company
2005 2004
£m £m
Dividends received from banking subsidiary 2,082 3,000
Dividends received from other subsidiaries 100 —
Total income 2,182 3,000
Interest receivable from subsidiaries 577 313
Interest payable to subsidiaries (189) (150)
Other net interest payable and operating expenses (638) (273)
Operating profit before tax 1,932 2,890
Tax 142 (16)
Profit for the year 2,074 2,874
Profit attributable to:
Ordinary shareholders 1,965 2,618
Other shareholders 109 256
2,074 2,874