2 Supplementary operating profit information

1.

Includes £650m of additional reserves for non profit annuity credit default, bringing the total reserve to £1.2bn. Non profit Risk includes individual and group protection, and individual and bulk purchase annuities.

2.

Other comprises estate agencies and housing related business conducted through our regulated mortgage network. It also includes Nationwide Life Risk business and business unit costs of £3m (2007: £4m) allocated to the Risk business.

1.

Non profit Savings businesses includes non profit investment bonds and non profit pensions (including SIPPs).

2.

With-profits business operating profit is the shareholders’ share of policyholder bonuses.

3.

Other includes Suffolk Life, operations in Ireland, Nationwide Life Savings business and business unit costs of £3m (2007: £4m), allocated to the Savings business.

1.

Other income includes £35m of profits arising from the provision of investment management services charged to the Group’s Risk and Savings businesses (2007: £23m).

2.

Investment management operating profit excludes core retail investments, of £nil (2007: £12m), which has been disclosed as part of Savings. The comparatives have been reclassified accordingly.

1.

The longer term expected investment return of £351m (2007: £387m) reflects an average return of 7% (2007: 7%) on the average balance of invested assets held within Group capital and financing (including interest bearing intra-group balances) calculated on a quarterly basis. The invested assets (including interest bearing intra-group balances) held within Group capital and financing amounted to £4.8bn at 31 December 2008 (2007: £5.7bn).

2.

Interest expense excludes interest on non recourse financing (see Note 38).

3.

The defined benefit pension scheme (expense)/income includes the actuarial gains and losses arising on annuity assets held by the schemes that have been purchased from Legal & General Assurance [Society]. Under [IFRS], these annuity assets cannot be classified as plan assets in accordance with [IAS] 19 and so the associated actuarial gains and losses cannot be taken to the statement of recognised income and expense (2008 expense: £15m; 2007 income: £4m). The 2007 comparative also includes income of £17m arising from a pension deficit reduction payment which was charged to the operating segments in 2008.

1.

Household business in 2007 includes a loss of £76m net of reinsurance as a result of flood related claims in June and July 2007.

2.

Other business in 2007 includes £6m profit following the withdrawal from the healthcare business in the first quarter.

1.

Weighted average number of shares.

2.

Earnings per share.