Monetary financial institutions' annual profit and loss (Table B3.2) contains selected annual profit and loss data of Monetary Financial Institutions (MFIs) operating in the UK that feed into the UK National Accounts. It comprises data series on interest, fees and commissions, dividends, trading income, other operating income and expenses and provisions. These data are unconsolidated and cover only the UK based operations of the MFI. As such they differ from the institutions' own published accounts that will comprise the global activity of the group as a whole. For this reason and some definitional variations needed for the National Accounts, information contained in this table is frequently very different from that published in the institutions' own published accounts and direct comparison should not be attempted.
Data are available from 2004. Publication of annual data for the preceding year will usually occur on the 21st working day of the June release in Monetary financial institutions' annual profit and loss (Table B3.2). The annual dataset will be updated on a quarterly basis to ensure consistency with that provided for use in the UK National Accounts.
Following the transition of building societies statistical reporting from the FSA to the Bank of England on 1st January 2008, all figures in Monetary financial institutions' annual profit and loss (Table B3.2) include building society data from 2008 data onwards.
Data are derived from the Form PL which was introduced in 2004 as a replacement for Forms A3 and BP. Annual data were reported by all UK-resident banks up to 2006. There is now around 98 per cent coverage from institutions reporting on an annual basis, based on gross assets/liabilities as reported quarterly on Form BT. Coverage from institutions reporting on a quarterly basis is around 95 per cent, with estimates derived for the other banks.
Building society data reported on Form PL are included from 2008 Q1, with coverage similar to that for banks. Estimates are derived for other building societies.
All data are subject to revision if and when new information becomes available. For more information on revisions practices see further details about revisions.
Interest receivable/payable: includes interest on money market instruments, loans and advances, deposits, repos, reverse repos, bonds and floating rate notes.
Dividends received/paid: cash dividends received or paid during the period. This includes any bonus/scrip issues (i.e. issues of new fully-paid shares to existing shareholders on a basis pro rata to existing holdings) and manufactured dividends (i.e. dividends paid on stock lending and short selling).
Fees and commissions receivable/payable: direct receipts/payments on services relating for example to the issue of new securities, investment management services, arrangement of loans and advances and current account services.
Trading income: includes all profits or losses (including revaluation profits or losses) arising from both the purchase and sale of tradable instruments such as foreign exchange, securities and derivatives.
Other operating income and expenditure: includes rent received/paid on land and buildings, receipts/payments on finance leases, and all other income and current expenditure (such as staff costs, occupancy costs, intragroup cost recharges and depreciation). Expenditure excludes tax and provisions.
Net new provision charges: are defined as provisions made against impaired financial assets, including interest, less releases and recoveries. This includes financial assets (including income) assessed individually and/or collectively as impaired.
Other items: including those which may be deemed as exceptional or extraordinary. This can include items that are derived from events or transactions that fall outside the ordinary activities of the company and which are therefore expected not to recur frequently or regularly.
Tax: comprises all items treated as tax in financial accounts as well as payments to the Financial Services Compensation Scheme.
Other transfers: comprise all transfers affecting post-tax profit that are not included elsewhere on the Form PL.
Valuation and Breaks
Data are collected on an accruals accounting basis except for dividends which are collected on a cash basis. Data are collected according to the international statistical standards, which may not be comparable to data prepared in accordance with International Financial Reporting Standards.
Building societies are included with effect from 2008 Q1.
From 2009 Q2 data on banks and building societies' covered bond entities are included on a consolidated basis.
From 2010 Q1 data on banks' and building societies' securitisation special purpose entities are included on a consolidated basis.
Revisions to UK GDP and the Balance of Payments current account sourced from Bank of England by Lauren Bowers and Katrina Farrell, (2014), Statistics article, September
Analysis of UK resident monetary financial institutions’ profit and loss statistics by Lauren Bowers, (2014), Statistics article, June
Annual profit and loss of UK resident monetary financial institutions by Perry Francis, (2011), Statistics article, April
Transition of building society statistical reporting by Pat O'Connor, (2008), Statistics article, January
UK banks' income and expenditure by Will Kerry and Daniel Wallace, (2001), Statistics article, March