REG - Royal Bk Scot.Grp. - Final Results <Origin Href="QuoteRef">RBS.L</Origin> - Part 2
26/02/2016 07:12
- Part 2: For the preceding part double click ID:nRSZ2357Qa
Derivatives 262,514 296,019 353,590
Total assets 815,408 876,684 1,051,019
Bank deposits (3) 28,030 30,543 35,806
Customer deposits (3) 343,186 346,267 354,288
Repurchase agreements and stock lending 37,378 43,355 62,210
Debt securities in issue 31,150 37,360 50,280
Subordinated liabilities 19,847 20,184 22,905
Derivatives 254,705 288,905 349,805
Liabilities of disposal groups (2) 2,980 6,401 71,320
Other liabilities 43,985 46,927 45,696
Total liabilities 761,261 819,942 992,310
Non-controlling interests 716 703 2,946
Owners' equity 53,431 56,039 55,763
Total liabilities and equity 815,408 876,684 1,051,019
Contingent liabilities and commitments 153,752 160,205 241,186
Balance sheet related key metrics and ratios
Tangible net asset value per ordinary share (4) 352p 371p 374p
Loan:deposit ratio (3,5) 89% 89% 95%
Short-term wholesale funding (3,6) £17bn £17bn £28bn
Wholesale funding (3,6) £59bn £66bn £90bn
Liquidity portfolio £156bn £164bn £151bn
Liquidity coverage ratio (LCR) (7) 136% 136% 112%
Net stable funding ratio (8) 121% 117% 112%
Tangible equity (9) £40,943m £42,937m £42,885m
Number of ordinary shares in issue (millions) (10) 11,625 11,574 11,466
Common Equity Tier 1 ratio 15.5% 12.7% 11.2%
Risk-weighted assets £242.6bn £316.0bn £355.9bn
Leverage ratio (11) 5.6% 5.0% 4.2%
*Restated, refer to page 46 for further details.
Notes:
(1) Excludes reverse repurchase agreements and stock borrowing.
(2) Primarily international private banking business at 31 December 2015 and 30 September 2015. The interest in associate in relation to Citizens is also included at 30 September 2015. Primarily Citizens at 31 December 2014.
(3) Excludes repurchase agreements and stock lending.
(4) Tangible net asset value per ordinary share represents tangible equity divided by the number of ordinary shares in issue.
(5) Includes disposal groups.
(6) Excludes derivative collateral.
(7) On 1 October 2015 the LCR became the PRA's primary regulatory liquidity standard; UK banks are required to meet a minimum standard of 80% initially, rising to 100% by 1 January 2018. The published LCR excludes Pillar 2 add-ons. RBS calculates the LCR using its own interpretation of the EU LCR Delegated Act, which may change over time and may not be fully comparable with tax of other institutions.
(8) NSFR for all periods have been calculated using RBS's current interpretations of the revised BCBS guidance on NSFR issued in late 2014. Therefore, reported NSFR will change over time with regulatory developments. Due to differences in interpretation, RBS's ratio may not be comparable with those of other financial institutions.
(9) Tangible equity is equity attributable to ordinary shareholders less intangible assets.
(10) Includes 26 million Treasury shares (30 September 2015 - 26 million; 31 December 2014 - 28 million).
(11) Based on end-point CRR Tier 1 capital and leverage exposure under the CRR Delegated Act.
Analysis of results
Year ended Quarter ended
31 December 31 December 31 December 30 September 31 December
2015 2014 2015 2015 2014
Net interest income £m £m £m £m £m
Net interest income (1) 8,767 9,258 2,162 2,187 2,382
RBS
- UK Personal & Business Banking 4,152 4,221 1,030 1,055 1,086
- Ulster Bank RoI 365 467 85 90 112
- Commercial Banking 1,997 1,976 512 504 506
- Private Banking 436 454 108 109 116
- RBS International 303 323 78 73 83
- Corporate & Institutional Banking 87 (11) 28 29 8
- Capital Resolution 365 673 6 78 162
- Williams & Glyn 658 664 165 167 167
- Central items & other 404 491 150 82 142
Average interest-earning assets (IEA)
RBS 413,345 432,935 407,061 413,778 421,244
- UK Personal & Business Banking 130,702 126,951 134,687 131,406 127,980
- Ulster Bank RoI 23,232 24,344 23,195 23,456 23,372
- Commercial Banking 106,429 103,248 111,600 105,905 102,324
- Private Banking 15,835 15,687 16,025 15,878 15,789
- RBS International 20,518 19,540 20,773 20,244 19,712
- Corporate & Institutional Banking 16,552 14,917 10,190 18,686 14,940
- Capital Resolution 60,656 100,716 39,875 51,786 90,538
- Williams & Glyn 22,940 22,678 23,327 23,020 22,681
- Central items & other 16,481 4,854 27,389 23,397 3,908
Yields, spreads and margins of the banking business
Gross yield on interest-earning assets of
banking business (3) 2.88% 3.02% 2.78% 2.84% 3.05%
Cost of interest-bearing liabilities of banking business (1.11%) (1.24%) (1.00%) (1.09%) (1.16%)
Interest spread of banking business (4) 1.77% 1.78% 1.78% 1.75% 1.89%
Benefit from interest-free funds 0.35% 0.35% 0.32% 0.34% 0.34%
Net interest margin (1,5)
RBS 2.12% 2.13% 2.10% 2.09% 2.23%
- UK Personal & Business Banking (2) 3.18% 3.32% 3.03% 3.19% 3.37%
- Ulster Bank RoI (2) 1.57% 1.92% 1.45% 1.52% 1.90%
- Commercial Banking (2) 1.88% 1.91% 1.82% 1.89% 1.96%
- Private Banking (2) 2.75% 2.89% 2.67% 2.72% 2.91%
- RBS International (2) 1.48% 1.65% 1.49% 1.43% 1.67%
- Corporate & Institutional Banking 0.53% (0.07%) 1.09% 0.62% 0.21%
- Capital Resolution 0.60% 0.67% 0.06% 0.60% 0.71%
- Williams & Glyn 2.87% 2.93% 2.81% 2.88% 2.92%
Third party customer rates (6)
Third party customer asset rate
- UK Personal & Business Banking 4.13% 4.30% 4.00% 4.15% 4.37%
- Ulster Bank RoI (7) 2.27% 2.43% 2.19% 2.26% 2.28%
- Commercial Banking 2.93% 3.03% 2.84% 2.93% 3.01%
- Private Banking 3.13% 3.24% 3.06% 3.08% 3.22%
- RBS International 3.10% 3.33% 3.09% 3.13% 3.39%
Third party customer funding rate
- UK Personal & Business Banking (0.66%) (0.85%) (0.63%) (0.65%) (0.73%)
- Ulster Bank RoI (7) (0.88%) (1.36%) (0.74%) (0.82%) (1.14%)
- Commercial Banking (0.38%) (0.45%) (0.36%) (0.36%) (0.41%)
- Private Banking (0.26%) (0.34%) (0.25%) (0.25%) (0.31%)
- RBS International (0.31%) (0.36%) (0.24%) (0.23%) (0.34%)
For the notes to this table refer to the next page.
Analysis of results
Key points
2015 compared with 2014
· Net interest income declined by £491 million, or 5% to £8,767 million compared with £9,258 million, driven principally by a 46% reduction in Capital Resolution, down from £673 million to £365 million, in line with the planned shrinkage of the balance sheet.
· Net interest margin (NIM) declined by 1 basis point to 2.12% reflecting strong new business volumes in core UK businesses, primarily mortgages, remaining under competitive margin pressures combined with an increased portion of the book shifting toward lower margin secured assets. This was partly offset by deposit repricing and the planned successful run down of low margin assets in Capital Resolution.
· UK PBB net interest income fell by £69 million, 2% to £4,152 million, as competitive front book margin pressures impacted. In addition, customers continued to roll off standard variable rate products (17% of overall mortgage book at the end of 2015) and onto lower margin fixed rate products. As a result NIM fell by 14 basis points to 3.18% compared with 3.32% in 2014.
· Ulster Bank RoI net interest income fell by £102 million, 22% to £365 million compared with £467 million primarily due to the weakening of the euro relative to sterling and a lower return on free funds. Ulster Bank RoI NIM continues to be impacted by the low yielding tracker mortgage book.
Q4 2015 compared with Q4 2014
· Net interest income declined by £220 million, or 9%, to £2,162 million compared with £2,382 million, principally due to the wind-down of Capital Resolution where net interest income fell to £6 million compared with £162 million in Q4 2014.
· NIM fell by 13 basis points to 2.10%, compared with 2.23%, as competitive asset margin pressure, particularly in UK PBB, was partly offset by deposit re-pricing in UK PBB and Commercial Banking.
Q4 2015 compared with Q3 2015
· Net interest income declined by £25 million, or 1% to £2,162 million compared with £2,187 million primarily due to margin pressure in UK PBB and the wind-down of Capital Resolution. NIM was broadly stable at 2.10%.
Notes:
(1) For the purpose of net interest margin (NIM) calculations a decrease of £15 million (year ended 31 December 2014 - £47 million; Q4 2015 - £3 million; Q3 2015 - £4 million; Q4 2014 - £12 million) was made in respect of interest on financial assets and liabilities designated as at fair value through profit or loss. Related interest-earning assets and interest-bearing liabilities have also been adjusted.
(2) PBB NIM was 2.93% (2014 - 3.10%; Q4 2015 - 2.80%; Q3 2015 - 2.93%; Q4 2014 - 3.14%) CPB NIM was 1.92% (2014 - 1.99%; Q4 2015 - 1.87%; Q3 2015 - 1.92%; Q4 2014 - 2.03%).
(3) Gross yield is the interest earned on average interest-earning assets of the banking book.
(4) Interest spread is the difference between the gross yield and the interest rate paid on average interest-bearing liabilities of the banking business.
(5) Net interest margin is net interest income of the banking business as a percentage of average interest-earning assets of the banking business.
(6) Net interest margin includes Treasury allocations and interest on intercompany borrowings, which are excluded from third party customer rates.
(7) Ulster Bank Ireland Limited manages its funding and liquidity requirements locally. Its liquid asset portfolios and non-customer related funding sources are included within its net interest margin, but excluded from its third party asset and liability rates.
Analysis of results
Year ended Quarter ended
31 December 31 December 31 December 30 September 31 December
2015 2014 2015 2015 2014
Non-interest income £m £m £m £m £m
Net fees and commissions 2,933 3,539 653 685 851
Income from trading activities 806 1,325 59 82 (319)
Own credit adjustments 309 (146) (115) 136 (144)
(Loss)/gain on redemption of own debt (263) 20 (263) - -
Strategic disposals (157) 191 (22) - -
Other operating income 528 963 10 93 195
Total non-interest income 4,156 5,892 322 996 583
Key points
2015 compared with 2014
· Non-interest income totalled £4,156 million, a decline of £1,736 million, or 29%, compared with £5,892 million in 2014, primarily driven by a reduction of £945 million in Capital Resolution as the business accelerated the planned shrinkage of the balance sheet, including disposal losses from the sale of several portfolios in the year. A movement of £530 million from volatile items under IFRS was recorded, which represented a gain of £29 million in 2015 compared with a charge of £501 million in 2014.
· Net fees and commissions fell by £606 million, or 17%, to £2,933 million, compared with £3,539 million, principally from the reduced scale of activity in CIB, run down of Capital Resolution and lower card interchange fees in UK PBB, down £59 million.
· Income from trading activities declined by £519 million, or 39%, to £806 million compared with £1,325 million, due to the reduced scale and resources in CIB and the continued planned reduction of the Capital Resolution business and the impact of disposal losses.
· Own credit adjustments represented a gain of £309 million compared with a charge of £146 million in 2014.
· A loss of £263 million was recognised on the redemption of own debt, from a liability management exercise to repurchase certain US dollar, sterling and euro senior debt securities, compared with a gain of £20 million in 2014.
· Total disposal losses in Capital Resolution were £367 million, including £38 million of strategic disposal losses. Total strategic disposal losses were £157 million, compared with a gain of £191 million in 2014, principally relating to the international private banking business.
· Other operating income reduced by £435 million, or 45%, to £528 million compared with £963 million, principally due to the reduced scale of CIB, together with the run down of Capital Resolution and the impact of disposal losses. A loss of £67 million on the disposal of available-for-sale securities in Treasury was recorded, compared with a gain of £149 million in 2014.
Q4 2015 compared with Q4 2014
· Non-interest income was £322 million, a reduction of 45%, compared with £583 million in Q4 2014 primarily due to a loss of £268 million in Capital Resolution, including the impact of total disposal losses of £180 million (including £24 million of strategic disposals) together with the loss on redemption of own debt of £263 million and £30 million lower equity gains in Commercial Banking. This was partly offset by a gain of £113 million from volatile items under IFRS compared with a charge of £340 million
Q4 2014.
· Net fees and commissions fell by £198 million, or 23%, to £653 million compared with £851 million due to planned Capital Resolution rundown, lower CIB income of £35 million and pressure on interchange fees in UK PBB, down £14 million.
· Income from trading activities totalled £59 million, up £378 million, compared with a loss of £319 million, reflecting improved trading activity in CIB, primarily from a stronger performance in Rates.
Analysis of results
Key points (continued)
Q4 2015 compared with Q3 2015
· Non-interest income reduced by £674 million, or 68%, to £322 million compared with £996 million, principally due to the loss of £263 million on redemption of own debt. Own credit adjustments represented a charge of £115 million compared with a gain of £136
million in Q3 2015. This was mostly offset by a gain of £113 million from volatile items under IFRS compared with a charge of £126 million in Q3 2015. In Q4 2015, Capital Resolution continued its accelerated run down with total disposal losses of £180
million (including £24 million of strategic disposals) compared with £89 million in Q3 2015, whilst Commercial Banking recorded a loss of £34 million on the disposal of a non-strategic portfolio in Q4 2015.
· A loss of £24 million for strategic disposals was recorded in Capital Resolution in Q4 2015, primarily due to the transfer of the Russian subsidiary to disposal groups. The sale is due to complete in Q2 2016.
Year ended Quarter ended
31 December 31 December 31 December 30 September 31 December
2015 2014 2015 2015* 2014
Operating expenses £m £m £m £m £m
Staff costs 4,896 5,376 1,072 1,281 1,192
Premises and equipment 1,483 1,812 422 352 452
Other administrative expenses 2,124 2,120 786 477 701
Restructuring costs (see below) 2,931 1,154 614 847 542
Litigation and conduct costs 3,568 2,194 2,124 129 1,164
Administrative expenses 15,002 12,656 5,018 3,086 4,051
Depreciation and amortisation 778 927 170 190 203
Write down of goodwill 498 130 498 - -
Write down of other intangible assets 75 146 75 - 64
Operating expenses 16,353 13,859 5,761 3,276 4,318
Adjusted operating expenses (1) 9,356 10,381 2,525 2,300 2,612
Restructuring costs comprise:
- staff expenses 830 381 205 281 133
- premises, equipment, depreciation and amortisation 746 272 41 375 28
- other 1,355 501 368 191 381
Restructuring costs 2,931 1,154 614 847 542
Staff costs as a % of total income 38% 35% 43% 40% 40%
Cost:income ratio 127% 91% 232% 103% 146%
Cost:income ratio - adjusted (2) 72% 69% 88% 75% 84%
Employee numbers (FTE - thousands) 91.5 91.3 91.5 92.4 91.3
*Restated, refer to page 46 for further details.
Notes:
(1) Excluding restructuring costs, litigation and conduct costs, and write down of goodwill.
(2) Excluding restructuring costs, litigation and conduct costs, write down of goodwill, own credit adjustments, (loss)/gain on redemption of own debt and strategic disposals.
Year ended
31 December 31 December
2015 2014
UK Bank levy segmental allocations £m £m
UK Personal & Business Banking 45 42
Ulster Bank RoI 9 10
Commercial Banking 103 82
Private Banking 22 11
RBS International Banking 18 17
Corporate & Institutional Banking 24 41
Capital Resolution 43 45
Central items (34) 2
Total UK Bank levy 230 250
Analysis of results
Key points
2015 compared with 2014
· Total operating expenses of £16,353 million included significantly higher litigation and conduct costs of £3,568 million (2014 - £2,194 million), restructuring costs of £2,931 million (2014 - £1,154 million) and a goodwill impairment of £498 million
attributed to Private Banking (2014 - £130 million in Capital Resolution).
· Adjusted operating expenses fell by £1,025 million, 10% to £9,356 million compared with £10,381 million. Excluding expenses associated with Williams & Glyn and the benefit of lower intangible asset write offs, adjusted operating expenses reduced by £983
million, exceeding the revised 2015 cost saving target of over £900 million.
· Staff costs were 9% lower totalling £4,896 million compared with £5,376 million, reflecting reduced headcount in CIB and Capital Resolution.
· Restructuring costs totalled £2,931 million compared with £1,154 million in 2014, as the transformation of the bank accelerated, particularly re-engineering the CIB business. This is in line with prior guidance for total restructuring costs of c.£5 billion
from 2015 to 2019. CIB restructuring costs totalled £524 million, including software and property write downs. Capital Resolution restructuring costs were much higher totalling £1,307 million as the business continues its planned rundown. Williams & Glyn
separation costs totalled £630 million. Private Banking also recorded a £91 million asset write down related to software.
· Litigation and conduct costs increased by £1,374 million, or 63% to £3,568 million, compared with £2,194 million in 2014. This includes: additional provisions for mortgage backed securities litigation in the US of £2,100 million; provisions for foreign
exchange investigations in the US of £334 million; customer redress provisions primarily relating to PPI of £600 million; packaged accounts provisions of £157 million; and other conduct provisions of £377 million.
Q4 2015 compared with Q4 2014
· Operating expenses increased by £1,443 million, or 33%, to £5,761 million, compared with £4,318 million, driven by the additional litigation and conduct costs primarily relating to mortgage-backed securities litigation in the US and PPI redress provisions totalling £2,124 million compared with £1,164 million in Q4 2014 and the write down of goodwill of £498 million attributed to Private Banking.
· Adjusted operating expenses were £87 million lower totalling £2,525 million including staff costs declining 10% to £1,072 million, and £190 million of accrual reversals in Q4 2014. The bank levy was £230 million, compared with £250 million in 2014. However, the charge allocated to some segments was higher in 2015 than in the prior year.
Q4 2015 compared with Q3 2015
· Operating expenses increased by £2,485 million, or 76% to £5,761 million driven by additional charges for litigation and conduct costs of £2,124 million and the write down of goodwill of £498 million. This was party offset by lower restructuring costs of £614 million compared with £847 million in Q3 2015. Q4 2015 included £181 million related to Williams & Glyn.
· Adjusted operating expenses were 10% higher at £2,525 million with lower staff costs, down 16% to £1,072 million offset by the impact of the UK bank levy (£230 million).
Analysis of results
Year ended Quarter ended
31 December 31 December 31 December 30 September 31 December
2015 2014 2015 2015 2014
Impairment (releases)/losses £m £m £m £m £m
Loan impairment (releases)/losses
- individually assessed (406) (835) (271) (15) (514)
- collectively assessed (35) 173 (27) (13) (120)
- latent (408) (692) (28) (64) (50)
Customer loans (849) (1,354) (326) (92) (684)
Bank loans (4) (10) - (4) -
Total loan impairment releases (853) (1,364) (326) (96) (684)
Securities 126 12 (1) 17 14
Total impairment releases (727) (1,352) (327) (79) (670)
31 December 30 September 31 December
Credit metrics (1) 2015 2015 2014
Gross customer loans £315,111m £322,957m £412,801m
Loan impairment provisions £7,139m £9,277m £18,040m
Risk elements in lending (REIL) £12,157m £14,643m £28,219m
Provisions as a % of REIL 59% 63% 64%
REIL as a % of gross customer loans 3.9% 4.5% 6.8%
Note:
(1) Includes disposal groups.
Key points
2015 compared with 2014
· Net impairment releases of £727 million were 46% lower compared with net impairment releases of £1,352 million in 2014. Although releases were at lower levels than in 2014, credit quality remained stable, reflecting supportive economic conditions in UK and Ireland with continued elevated recoveries in certain businesses.
· Capital Resolution recorded net releases of £725 million, compared with £1,307 million in 2014, with disposal activity continuing. Ulster Bank RoI recorded net impairment releases of £141 million, down from £306 million in 2014, as economic conditions in Ireland continue to improve. UK PBB recorded a release of £7 million compared with a loss of £154 million, due to lower debt flows and increased releases and recoveries. Net impairment releases were also reported in CIB, although at more modest levels.
· Securities losses rose to £126 million from £12 million in 2014, principally related to a small number of single name exposures, mainly in the RBS N.V. liquidity portfolio.
· Risk elements in lending (REIL) declined from £28.2 billion to £12.2 billion, with REIL as a percentage of gross loans falling from 6.8% to 3.9%. The reduction was driven by the disposal of Citizens and the continued rundown of Capital Resolution.
Q4 2015 compared with Q4 2014
· Net impairment releases of £327 million were recorded, compared with net impairment releases of £670 million in the previous year. Capital Resolution and Ulster Bank RoI continued to record net impairment releases, albeit at lower levels than in Q4 2014.
Q4 2015 compared with Q3 2015
· An increase in net impairment releases from £79 million to £327 million was primarily due to a large single write-back from the disposal of an Irish Real Estate loan portfolio.
Analysis of results
Selected credit risk portfolios
31 December 2015 31 December 2014 (1)
CRA (2) TCE (3) EAD (4) CRA (2) TCE (3) EAD (4)
Natural resources £m £m £m £m £m £m
Oil & Gas 3,533 6,609 5,606 9,421 22,014 15,877
Mining & Metals 1,134 2,105 1,555 2,660 4,696 3,817
Electricity 2,848 7,454 5,205 4,927 16,212 9,984
Water & Waste 4,835 5,948 5,873 5,281 6,718 6,466
12,350 22,116 18,239 22,289 49,640 36,144
Commodity traders (5) 749 1,117 1,350 1,968 2,790 3,063
Of which: natural resources 548 772 776 1,140 1,596 1,852
Shipping 7,140 7,688 7,509 10,087 10,710 10,552
Notes:
(1) Prior period data excludes Citizens for comparative purposes; Citizens totals for natural resources and transport at 31 December 2014 - CRA £2.6 billion, EAD £3.6 billion.
(2) Credit risk assets (CRA) consist of lending gross of impairment provisions and derivative exposures after netting and contingent obligations.
(3) Total committed exposure (TCE) comprises CRA, securities financing transactions after netting, banking book debt securities and committed undrawn facilities.
(4) Exposure at default (EAD) reflects an estimate of the extent to which a bank will be exposed to under a specific facility on the default of a customer or counterparty. Uncommitted undrawn facilities are excluded from TCE but included within EAD; therefore EAD can exceed TCE.
(5) Commodity traders represents customers in a number of industry sectors, predominantly natural resources above.
Key points
· Oil & Gas: exposure decreased significantly during 2015. This reflected proactive credit management, continued sales
and run-off across the CIB portfolio in Asia-Pacific and the North America. There was an increase in forbearance,
predominantly involving the relaxation of financial covenants to give customers more financial flexibility. Non-performing
exposures at 31 December 2015 were £138 million on a CRA basis.
· Mining & Metals: the reduction in exposure during 2015 reflected proactive credit management of more vulnerable
sub-sectors. The majority of the exposure is to large international customers and matures within five years. The asset
quality remained strong and 63% (31 December 2014 - 60%) of the portfolio was investment grade at 31 December 2015 and non
performing exposures at 31 December 2015 were £48 million on a CRA basis.
· Commodity traders: exposure more than halved during 2015. The remaining exposure is mainly to the largest and most
dominant traders in physical commodities
· Shipping: the exposure decrease during 2015 reflected scheduled loan repayments, prepayments and secondary sales in
Capital Resolution. Non-performing exposures at 31 December 2015 were £362 million (CRA) with an impairment provision of
£135 million.
31 December 2015 31 December 2014
Balance Total Balance Total
sheet exposure sheet exposure
Emerging markets (1) £m £m £m £m
India 1,563 1,879 1,989 2,628
China 1,054 1,094 3,548 4,079
Russia 429 441 1,830 1,997
Note:
(1) Balance sheet and total exposures include banking and trading book debt securities and are net of impairment provisions in respect of lending - refer to the Capital and risk management section of the 2015 Annual Report and Accounts for detailed definitions and additional disclosures.
Key points
· Exposure to most emerging markets decreased in 2015 as RBS continued to implement its strategy to withdraw from
non-strategic countries.
· Exposure to Russia declined significantly throughout the year to less than a quarter of the 2014 exposure.
Analysis of results
Capital and leverage ratios
End-point CRR basis (1) PRA transitional basis
31 December 30 September 31 December 31 December 30 September 31 December
2015 2015* 2014* 2015 2015* 2014*
Risk asset ratios % % % % % %
CET1 15.5 12.7 11.2 15.5 12.7 11.1
Tier 1 16.3 13.3 11.2 19.1 15.5 13.2
Total 19.6 16.0 13.7 24.7 19.8 17.1
Capital £m £m £m £m £m £m
Tangible equity 40,943 42,937 42,885 40,943 42,937 42,885
Expected loss less impairment provisions (1,035) (1,185) (1,491) (1,035) (1,185) (1,491)
Prudential valuation adjustment (381) (392) (384) (381) (392) (384)
Deferred tax assets (1,110) (1,159) (1,222) (1,110) (1,159) (1,222)
Own credit adjustments (104) 208 500 (104) 208 500
Pension fund assets (161) (256) (238) (161) (256) (238)
Other deductions (544) 27 (131) (522) 49 (401)
Total deductions (3,335) (2,757) (2,966) (3,313) (2,735) (3,236)
CET1 capital 37,608 40,180 39,919 37,630 40,202 39,649
AT1 capital 1,997 1,997 - 8,716 8,716 7,468
Tier 1 capital 39,605 42,177 39,919 46,346 48,918 47,117
Tier 2 capital 8,002 8,331 8,717 13,619 13,742 13,626
Total regulatory capital 47,607 50,508 48,636 59,965 62,660 60,743
Risk-weighted assets
Credit risk
- non-counterparty 166,400 237,800 264,700
- counterparty 23,400 26,900 30,400
Market risk 21,200 19,700 24,000
Operational risk 31,600 31,600 36,800
Total RWAs 242,600 316,000 355,900
Leverage (2)
Derivatives 262,500 296,500 354,000
Loans and advances 327,000 402,300 419,600
Reverse repos 39,900 52,100 64,700
Other assets 186,000 208,000 212,700
Total assets 815,400 958,900 1,051,000
Derivatives
- netting (258,600) (280,300) (330,900)
- potential future exposures 75,600 82,200 98,800
Securities financing transactions gross up 5,100 6,600 25,000
Undrawn commitments 63,500 78,900 96,400
Regulatory deductions and other
- More to follow, for following part double click ID:nRSZ2357QcRecent news on Natwest
See all newsREG - NatWest Group plc - Transaction in Own Shares
AnnouncementREG - Natwest Markets PLC - Publication of Final Terms
AnnouncementREG - NatWest Group plc - Transaction in Own Shares
AnnouncementREG - NatWest Group plc - Holdings in Company - MFS
AnnouncementREG - NatWest Group plc - Transaction in Own Shares
Announcement