REG - Royal Bk Scot.Grp. - Final Results <Origin Href="QuoteRef">RBS.L</Origin> - Part 4
24/02/2017 07:07
- Part 4: For the preceding part double click ID:nRSX7681Xc
(5.8%) (9.1%) 1.6% 8.8% (30.2%) nm nm nm (48.2%)
Return on equity - adjusted (3,4,5) 27.8% 5.4% 5.3% 4.5% 9.8% (2.7%) nm nm nm 8.6%
Cost:income ratio 78% 165% 116% 99% 67% nm nm 45% nm 229%
Cost:income ratio - adjusted (3,4) 58% 106% 64% 91% 64% 108% nm 45% nm 67%
Total assets (£bn) 155.6 24.1 150.5 18.6 23.4 240.0 132.5 25.8 28.2 798.7
Funded assets (£bn) (6) 155.6 24.0 150.5 18.5 23.4 100.9 27.6 25.8 25.4 551.7
Net loans and advances to customers (£bn) 132.1 18.9 100.1 12.2 8.8 17.4 12.8 20.6 0.1 323.0
Risk elements in lending (£bn) 2.0 3.5 1.9 0.1 0.1 - 2.3 0.4 - 10.3
Impairment provisions (£bn) (1.3) (1.2) (0.8) - - - (0.8) (0.2) (0.2) (4.5)
Customer deposits (£bn) 145.8 16.1 97.9 26.6 25.2 8.4 9.5 24.2 0.2 353.9
Risk-weighted assets (RWAs) (£bn) 32.7 18.1 78.5 8.6 9.5 35.2 34.5 9.6 1.5 228.2
RWA equivalent (£bn) (5) 35.7 19.5 82.6 8.6 9.5 37.2 37.5 10.1 1.7 242.4
Employee numbers (FTEs - thousands) 18.3 3.1 5.5 1.7 0.8 1.2 0.4 4.5 42.3 77.8
For the notes to table refer to page 34. nm = not meaningful.
Segment performance
Year ended 31 December 2015
PBB CPB Central
Ulster Commercial Private RBS NatWest Capital Williams items & Total
UK PBB Bank RoI Banking Banking International Markets Resolution & Glyn (1) other (2) RBS
£m £m £m £m £m £m £m £m £m £m
Income statement
Net interest income 4,152 365 1,997 436 303 87 365 658 404 8,767
Other non-interest income 1,048 185 1,257 208 64 1,320 37 175 (27) 4,267
Total income - adjusted (3) 5,200 550 3,254 644 367 1,407 402 833 377 13,034
Own credit adjustments - - - - - 120 175 - 14 309
Loss on redemption of own debt - - - - - - - - (263) (263)
Strategic disposals - - - - - - (38) - (119) (157)
Total income 5,200 550 3,254 644 367 1,527 539 833 9 12,923
Direct expenses - staff costs (801) (160) (483) (176) (42) (348) (296) (215) (2,375) (4,896)
- other costs (272) (85) (238) (35) (16) (122) (202) (52) (3,438) (4,460)
Indirect expenses (1,965) (182) (1,080) (307) (98) (997) (1,041) (92) 5,762 -
Operating expenses - adjusted (4) (3,038) (427) (1,801) (518) (156) (1,467) (1,539) (359) (51) (9,356)
Restructuring costs - direct (38) (12) (52) (7) - (44) (380) (28) (2,370) (2,931)
- indirect (129) (3) (17) (66) (4) (480) (927) - 1,626 -
Litigation and conduct costs (972) 13 (51) (12) - (378) (2,105) - (63) (3,568)
Write down of goodwill - - - (498) - - - - - (498)
Operating expenses (4,177) (429) (1,921) (1,101) (160) (2,369) (4,951) (387) (858) (16,353)
Profit/(loss) before impairment releases/(losses) 1,023 121 1,333 (457) 207 (842) (4,412) 446 (849) (3,430)
Impairment releases/(losses) 7 141 (69) (13) - 5 725 (15) (54) 727
Operating profit/(loss) 1,030 262 1,264 (470) 207 (837) (3,687) 431 (903) (2,703)
Operating profit/(loss) - adjusted (3,4) 2,169 264 1,384 113 211 (55) (412) 459 272 4,405
Additional information
Return on equity (5) 11.7% 10.6% 9.8% (27.7%) 18.5% (11.1%) nm nm nm (4.7%)
Return on equity - adjusted (3,4,5) 26.2% 10.6% 10.9% 4.9% 18.9% (2.0%) nm nm nm 11.0%
Cost:income ratio 80% 78% 59% 171% 44% 155% nm 46% nm 127%
Cost:income ratio - adjusted (3,4) 58% 78% 55% 80% 43% 104% nm 43% nm 72%
Total assets (£bn) 143.9 21.3 133.5 17.0 23.1 215.3 201.5 24.1 35.7 815.4
Funded assets (£bn) (6) 143.9 21.2 133.5 17.0 23.1 103.3 53.4 24.1 33.4 552.9
Net loans and advances to customers (£bn) 119.8 16.7 91.3 11.2 7.3 16.1 23.6 20.0 2.0 308.0
Risk elements in lending (£bn) 2.7 3.5 1.9 0.1 0.1 - 3.4 0.5 - 12.2
Impairment provisions (£bn) (1.8) (1.9) (0.7) - (0.1) - (2.3) (0.3) - (7.1)
Customer deposits (£bn) 137.8 13.1 88.9 23.1 21.3 5.7 26.0 24.1 6.0 346.0
Risk-weighted assets (RWAs) (£bn) 33.3 19.4 72.3 8.7 8.3 33.1 49.0 9.9 8.6 242.6
RWA equivalent (£bn) (5) 35.5 20.4 77.6 8.7 8.3 33.4 50.3 10.4 8.8 253.4
Employee numbers (FTEs - thousands) 22.4 2.5 5.8 1.9 0.7 1.3 1.4 5.1 50.4 91.5
For the notes to this table refer to page 34.nm = not meaningful.
Segment performance
Quarter ended 30 September 2016
PBB CPB Central
Ulster Commercial Private RBS NatWest Capital Williams items & Total
UK PBB Bank RoI Banking Banking International Markets Resolution & Glyn (1) other (2) RBS
£m £m £m £m £m £m £m £m £m £m
Income statement
Net interest income 1,085 106 534 112 75 32 27 164 32 2,167
Other non-interest income 251 40 315 53 18 494 148 45 (37) 1,327
Total income - adjusted (3) 1,336 146 849 165 93 526 175 209 (5) 3,494
Own credit adjustments - - - - - (55) (42) - (59) (156)
Gain on redemption of own debt - - - - - - - - 3 3
Strategic disposal - - - - - - (30) - (1) (31)
Total income 1,336 146 849 165 93 471 103 209 (62) 3,310
Direct expenses - staff costs (168) (53) (127) (38) (11) (61) (17) (65) (588) (1,128)
- other costs (59) (19) (55) (9) (5) (7) (17) (13) (705) (889)
Indirect expenses (491) (45) (265) (62) (24) (274) (139) (21) 1,321 -
Operating expenses - adjusted (4) (718) (117) (447) (109) (40) (342) (173) (99) 28 (2,017)
Restructuring costs - direct 1 (8) (12) - - (6) (23) (12) (409) (469)
- indirect (26) (3) (9) (3) - (27) (10) - 78 -
Litigation and conduct costs 1 (3) (6) - 1 (6) (231) - (181) (425)
Operating expenses (742) (131) (474) (112) (39) (381) (437) (111) (484) (2,911)
Profit/(loss) before impairment (losses)/releases 594 15 375 53 54 90 (334) 98 (546) 399
Impairment (losses)/releases (27) 39 (20) (3) - - (120) (14) 1 (144)
Operating profit/(loss) 567 54 355 50 54 90 (454) 84 (545) 255
Operating profit/(loss) - adjusted (3,4) 591 68 382 53 53 184 (118) 96 24 1,333
Additional information
Return on equity (5) 27.1% 7.8% 9.5% 11.1% 15.4% 3.1% nm nm nm (4.8%)
Return on equity - adjusted (3,4,5) 28.3% 9.9% 10.4% 11.8% 15.1% 8.0% nm nm nm 4.6%
Cost:income ratio 56% 90% 56% 68% 42% 81% nm 53% nm 88%
Cost:income ratio - adjusted (3,4) 54% 80% 53% 66% 43% 65% 99% 47% nm 58%
Total assets (£bn) 155.4 25.3 152.6 18.2 26.9 249.7 176.7 25.7 21.9 852.4
Funded assets (£bn) (6) 155.4 25.2 152.6 18.1 26.9 112.5 34.9 25.7 18.0 569.3
Net loans and advances to customers (£bn) 129.6 19.5 99.8 11.8 8.7 19.9 16.7 20.6 0.1 326.7
Risk elements in lending (£bn) 2.1 4.8 2.1 0.1 0.1 - 2.9 0.4 0.1 12.6
Impairment provisions (£bn) (1.4) (2.3) (1.0) - - - (1.2) (0.2) - (6.1)
Customer deposits (£bn) 143.7 15.1 98.1 25.3 25.5 9.7 16.8 24.0 0.6 358.8
Risk-weighted assets (RWAs) (£bn) 31.9 21.4 77.6 8.2 9.6 36.6 38.6 9.7 1.6 235.2
RWA equivalent (£bn) (5) 35.4 22.8 82.3 8.2 9.6 37.2 39.8 10.2 1.9 247.4
Employee numbers (FTEs - thousands) 18.7 3.2 5.8 1.8 0.8 1.3 0.7 5.0 45.2 82.5
For the notes to this table refer to following page. nm = not meaningful.
Segment performance
Quarter ended 31 December 2015
PBB CPB Central
Ulster Commercial Private RBS NatWest Capital Williams items & Total
UK PBB Bank RoI Banking Banking International Markets Resolution & Glyn (1) other (2) RBS
£m £m £m £m £m £m £m £m £m £m
Income statement
Net interest income 1,030 85 512 108 78 28 6 165 150 2,162
Other non-interest income 224 31 285 50 17 224 (239) 43 87 722
Total income - adjusted (3) 1,254 116 797 158 95 252 (233) 208 237 2,884
Own credit adjustments - - - - - (66) (5) - (44) (115)
Loss on redemption of own debt - - - - - - - - (263) (263)
Strategic disposal - - - - - - (24) - 2 (22)
Total income 1,254 116 797 158 95 186 (262) 208 (68) 2,484
Direct expenses - staff costs (199) (40) (124) (43) (12) (63) (54) (61) (476) (1,072)
- other costs (82) (28) (80) (7) (5) (50) (54) (24) (1,123) (1,453)
Indirect expenses (596) (49) (380) (109) (24) (251) (286) (22) 1,717 -
Operating expenses - adjusted (4) (877) (117) (584) (159) (41) (364) (394) (107) 118 (2,525)
Restructuring costs - direct (31) 7 (40) (7) - - (21) (28) (494) (614)
- indirect (56) (1) (14) 12 1 (62) (83) - 203 -
Litigation and conduct costs (607) 4 8 (10) - (5) (1,498) - (16) (2,124)
Write down of goodwill - - - (498) - - - - - (498)
Operating expenses (1,571) (107) (630) (662) (40) (431) (1,996) (135) (189) (5,761)
(Loss)/profit before impairment releases/(losses) (317) 9 167 (504) 55 (245) (2,258) 73 (257) (3,277)
Impairment releases/(losses) 27 10 (27) (12) - - 356 (20) (7) 327
Operating (loss)/profit (290) 19 140 (516) 55 (245) (1,902) 53 (264) (2,950)
Operating profit/(loss) - adjusted (3,4) 404 9 186 (13) 54 (112) (271) 81 348 686
Additional information
Return on equity (5) (16.8%) 3.0% 3.1% (118.9%) 19.1% (15.1%) nm nm nm (26.5%)
Return on equity - adjusted (3,4,5) 19.8% 1.4% 4.6% (4.4%) 18.7% (7.6%) nm nm nm 6.6%
Cost:income ratio 125% 92% 79% 419% 42% 232% nm 65% nm 232%
Cost:income ratio - adjusted (3,4) 70% 101% 73% 101% 43% 144% nm 51% nm 88%
Total assets (£bn) 143.9 21.3 133.5 17.0 23.1 215.3 201.5 24.1 35.7 815.4
Funded assets (£bn) (6) 143.9 21.2 133.5 17.0 23.1 103.3 53.4 24.1 33.4 552.9
Net loans and advances to customers (£bn) 119.8 16.7 91.3 11.2 7.3 16.1 23.6 20.0 2.0 308.0
Risk elements in lending (£bn) 2.7 3.5 1.9 0.1 0.1 - 3.4 0.5 - 12.2
Impairment provisions (£bn) (1.8) (1.9) (0.7) - (0.1) - (2.3) (0.3) - (7.1)
Customer deposits (£bn) 137.8 13.1 88.9 23.1 21.3 5.7 26.0 24.1 6.0 346.0
Risk-weighted assets (RWAs) (£bn) 33.3 19.4 72.3 8.7 8.3 33.1 49.0 9.9 8.6 242.6
RWA equivalent (£bn) (5) 35.5 20.4 77.6 8.7 8.3 33.4 50.3 10.4 8.8 253.4
Employee numbers (FTEs - thousands) 22.4 2.5 5.8 1.9 0.7 1.3 1.4 5.1 50.4 91.5
Notes:
(1) Williams & Glyn refers to the business formerly intended to be divested as a separate legal entity and comprises RBS England and Wales branch-based businesses, along with certain small and medium enterprises and corporate activities across the UK. During
the period presented W&G has not operated as a separate legal entity.
(2) Central items include unallocated transactions which principally comprise volatile items under IFRS and balances in relation to Citizens for periods prior to HY 2015 and International private banking for periods from Q1 2015 to Q1 2016.
(3) Excluding own credit adjustments, (loss)/gain on redemption of own debt and strategic disposals.
(4) Excluding restructuring costs, litigation and conduct costs and write down of goodwill.
(5) RBS's CET 1 target is 13% but for the purposes of computing segmental return on equity (ROE), to better reflect the differential drivers of capital usage, segmental operating profit after tax and adjusted for preference dividends is divided by notional
equity allocated at different rates of 11% (Commercial Banking and Ulster Bank RoI), 12% (RBS International) and 15% for all other segments, of the monthly average of segmental risk-weighted assets incorporating the effect capital deductions (RWAes). RBS
Return on equity is calculated using profit for the period attributable to ordinary shareholders.
(6) Funded assets exclude derivative assets.
Segment performance
Year ended Quarter ended
31 December 31 December 31 December 30 September 31 December
2016 2015 2016 2016 2015
Total income by segment £m £m £m £m £m
UK PBB
Personal advances 845 747 215 216 177
Personal deposits 731 747 184 186 181
Mortgages 2,331 2,305 598 596 569
Cards 614 621 150 148 140
Business banking 732 726 188 188 180
Other 37 54 4 2 7
Total 5,290 5,200 1,339 1,336 1,254
Ulster Bank RoI
Corporate 176 147 34 43 38
Retail 392 321 101 96 75
Other 8 82 2 7 3
Total 576 550 137 146 116
Commercial Banking
Commercial lending 1,875 1,634 503 472 411
Deposits 474 477 109 116 125
Asset and invoice finance 712 710 175 181 168
Other 354 433 80 80 93
Total 3,415 3,254 867 849 797
Private Banking
Investments 97 86 23 24 21
Banking 560 558 138 141 137
Total 657 644 161 165 158
RBS International 374 367 96 93 95
NatWest Markets
Rates 868 725 129 354 145
Currencies 551 390 157 128 95
Financing 246 273 66 78 22
Other (144) (79) (38) (34) (10)
Total excluding own credit adjustments 1,521 1,309 314 526 252
Own credit adjustments 53 120 (29) (55) (66)
Businesses transferred to Commercial Banking - 98 - - -
Total 1,574 1,527 285 471 186
Capital Resolution
APAC portfolio (1) (6) 74 (3) (5) 6
Americas portfolio 13 60 2 1 8
EMEA portfolio (2) 39 76 12 8 14
Legacy loan portfolio (1) 129 7 31 (26)
Shipping 43 80 6 6 14
Markets (171) 180 6 212 (32)
Global Transaction Services 123 346 16 24 69
Other 36 (214) (6) 11 (130)
Total excluding disposals and own credit adjustments 76 731 40 288 (77)
Disposal losses (572) (367) (325) (143) (180)
Own credit adjustments 134 175 (8) (42) (5)
Total (362) 539 (293) 103 (262)
Williams & Glyn (3)
Retail 480 472 129 120 117
Commercial 357 361 88 89 91
Total 837 833 217 209 208
Central items 229 9 407 (62) (68)
Total RBS 12,590 12,923 3,216 3,310 2,484
Notes:
(1) Asia-Pacific portfolio.
(2) European, the Middle East and African portfolio.
(3) Williams & Glyn refers to the business formerly intended to be divested as a separate legal entity and comprises RBS England and Wales branch-based businesses, along with certain small and medium enterprises and corporate activities across the UK. During the period presented W&G has not operated as a separate legal entity.
Segment performance
Year ended Quarter ended
31 December 31 December 31 December 30 September 31 December
2016 2015 2016 2016 2015
Impairment losses/(releases) by segment £m £m £m £m £m
UK PBB
Personal advances 84 69 38 26 13
Mortgages (22) 4 (39) (1) 5
Business banking (10) (79) (3) (8) (24)
Cards 31 10 20 10 (1)
Other - (11) - - (20)
Total 83 (7) 16 27 (27)
Ulster Bank RoI
Mortgages 29 (73) (30) 60 21
Commercial real estate
- investment (24) 5 (1) (18) 3
- development (20) (1) (1) (12) (2)
Other lending (98) (72) (15) (69) (32)
Total (113) (141) (47) (39) (10)
Commercial Banking
Commercial real estate 4 18 8 (6) 8
Asset and invoice finance 35 9 21 1 8
Private sector services (education, health etc) 8 9 7 - 4
Banks & financial institutions 2 - - 1 (1)
Wholesale and retail trade repairs 15 3 6 10 -
Hotels and restaurants 27 (2) 7 21 (2)
Manufacturing 3 1 1 - -
Construction 18 6 13 - 1
Other (1) 94 25 20 (7) 9
Total 206 69 83 20 27
Private Banking (3) 13 (8) 3 12
RBS International 10 - (1) - -
NatWest Markets - (5) - - -
Capital Resolution 253 (725) (130) 120 (356)
Williams & Glyn (2)
Retail 28 16 7 11 1
Commercial 14 (1) 4 3 19
Total 42 15 11 14 20
Central items - 54 1 (1) 7
Total RBS 478 (727) (75) 144 (327)
31 December 30 September 31 December
2016 2016 2015
Analysis of Capital Resolution RWAs by portfolio £bn £bn £bn
APAC portfolio (3) 0.1 0.1 0.5
Americas portfolio 0.2 0.3 1.0
EMEA portfolio (4) 1.0 1.2 1.2
Legacy loan portfolio 1.4 2.0 3.7
Shipping 2.8 3.5 4.5
Markets 15.8 17.1 20.7
Global Transaction Services 0.5 1.8 3.6
Alawwal Bank 7.9 7.9 6.9
Other 2.0 1.9 2.9
Total credit and market risk RWAs 31.7 35.8 45.0
Operational risk 2.8 2.8 4.0
Total RWAs 34.5 38.6 49.0
Notes:
(1) Includes a single name charge taken in respect of the oil and gas portfolio.
(2) Williams & Glyn refers to the business formerly intended to be divested as a separate legal entity and comprises RBS England and Wales branch-based businesses, along with certain small and medium enterprises and corporate activities across the UK. During the period presented W&G has not operated as a separate legal entity.
(3) Asia-Pacific portfolio.
(4) European, the Middle East and Africa portfolio.
Segment Performance
31 December 30 September 31 December
2016 2016 2015
Loans and advances to customers (gross) by segment (1) £bn £bn £bn
UK PBB
Personal advances 6.0 6.0 6.0
Mortgages 117.1 114.7 104.8
Business banking 6.4 6.4 5.3
Cards 3.9 3.9 4.1
Other - - 1.4
Total 133.4 131.0 121.6
Ulster Bank RoI
Mortgages 15.3 16.0 13.8
Commercial real estate
- investment 0.7 1.0 0.7
- development 0.2 0.4 0.2
- other lending 3.9 4.4 3.9
Total 20.1 21.8 18.6
Commercial Banking
Commercial real estate 16.9 17.5 16.7
Asset and invoice finance 14.1 15.0 14.4
Private sector services (education, health etc) 6.9 6.9 6.7
Banks & financial institutions 8.9 8.9 7.1
Wholesale and retail trade repairs 8.4 8.2 7.5
Hotels and restaurants 3.7 3.6 3.3
Manufacturing 6.6 6.4 5.3
Construction 2.1 2.0 2.1
Other 33.3 32.3 28.9
Total 100.9 100.8 92.0
Private Banking
Personal advances 2.3 2.3 2.7
Mortgages 7.0 6.7 6.5
Other 2.9 2.8 2.0
Total 12.2 11.8 11.2
RBS International
Corporate 6.2 6.1 4.5
Mortgages 2.6 2.6 2.5
Other - - 0.4
Total 8.8 8.7 7.4
Capital Resolution 13.6 17.9 25.9
Williams & Glyn (2)
Retail 12.3 12.2 11.6
Commercial 8.5 8.6 8.7
Total 20.8 20.8 20.3
Central items 0.3 0.1 2.0
Balance sheet
NatWest Markets
Loans and advances to customer (excluding reverse repos) 17.4 19.9 16.1
Loans and advances to banks (excluding reverse repos) (3) 3.3 5.9
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