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Notes to the Group accounts
4 Net interest income
Previous 3 Segmental analysis | 5 Net fee and commission income Next
| Weighted average effective interest rate | ||||
|---|---|---|---|---|
| 2007 % |
2006 % |
2007 £m |
2006 £m |
|
| Interest receivable: | ||||
| Loans and advances to customers | 6.89 | 6.21 | 13,209 | 10,853 |
| Loans and advances to banks | 5.14 | 4.72 | 2,025 | 1,826 |
| Lease and hire purchase receivables | 6.34 | 5.97 | 602 | 622 |
| Interest receivable on loans and receivables | 6.58 | 5.94 | 15,836 | 13,301 |
| Available-for-sale financial assets | 4.83 | 4.39 | 1,038 | 807 |
| Total interest receivable | 6.44 | 5.82 | 16,874 | 14,108 |
| Interest payable: | ||||
| Deposits from banks | 5.00 | 4.67 | (1,919) | (1,680) |
| Customer accounts | 3.58 | 2.91 | (5,085) | (3,738) |
| Debt securities in issue | 5.08 | 4.67 | (2,680) | (1,983) |
| Subordinated liabilities | 5.65 | 5.72 | (741) | (694) |
| Liabilities under sale and repurchase agreements | 4.81 | 4.35 | (155) | (260) |
| Interest payable on liabilities held at amortised cost | 4.24 | 3.71 | (10,580) | (8,355) |
| Other | 4.28 | 9.68 | (195) | (424) |
| Total interest payable | 4.24 | 3.82 | (10,775) | (8,779) |
| Net interest income | 6,099 | 5,329 | ||
Included within interest receivable is £395 million (2006: £297 million) in respect of impaired financial assets. Net interest income also includes a credit of £1 million (2006: charge of £1 million) transferred from the cash flow hedging reserve (note 41).