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English people, what does calling someone "my friend" during a conversation mean, usually?

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emmasfriend · 46-50, F
I have a neighbour whom I often meet when I am going to the shop and he is walking his dogs.
His standard greeting is "Good morning, my friend". To which I reply "How are you, Ian?"

I have usually thought that he has failed to remember my name; I do not see any other significance.
He works for Camden Council - perhaps it is a North London thing ?