REG - Royal Bk Scot.Grp. - Final Results - Part 1 <Origin Href="QuoteRef">RBS.L</Origin> - Part 8

NatwestAnnouncement

26/02/2015 07:13

- Part 8: For the preceding part double click  ID:nRSZ9135Fg 

                                                                                                                               
                                                    (144)        200                         (144)        -             363          
                                                                                                                                     
 Items that qualify for reclassification                                                                                             
 Available-for-sale financial assets                807          (406)                       199          79            (103)        
 Cash flow hedges                                   1,413        (2,291)                     958          207           (667)        
 Currency translation                               307          (229)                       424          616           (328)        
 Tax                                                (455)        1,014                       (264)        (31)          203          
                                                                                                                                     
 Other comprehensive income/(loss) after tax        1,928        (1,712)                     1,173        871           (532)        
                                                                                                                                     
 Total comprehensive (loss)/income for the period   (783)        (10,189)                    (4,432)      1,811         (9,123)      
                                                                                                                                     
 Total comprehensive (loss)/income is                                                                                                
 attributable to:                                                                                                                    
 Non-controlling interests                          246          137                         204          12            16           
 Preference shareholders                            330          349                         99           91            99           
 Paid-in equity holders                             49           49                          16           6             15           
 Dividend access share                              320          -                           -            -             -            
 Ordinary and B shareholders                        (1,728)      (10,724)                    (4,751)      1,702         (9,253)      
                                                                                                                                     
                                                    (783)        (10,189)                    (4,432)      1,811         (9,123)      
 
 
Key points 
 
 ●  The movement in available-for-sale financial assets during the year and in Q4 2014 predominantly reflects unrealised gains arising on US and Spanish bonds.                                                                                                                                                                                                                                                                                                                 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
 ●  Cash flow hedging gains in both the year and Q4 2014 largely result from significant decreases in Sterling and Euro swap rates across the maturity profile of the portfolio.                                                                                                                                                                                                                                                                                                
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
 ●  Currency translation gains in the year are principally due to the weakening of Sterling against the US dollar. For the year, these gains were partially offset by the impact of the strength of Sterling against the Euro.                                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
 ●  Actuarial losses on defined benefit plans in 2014 arose as a result of a reduction in long-term high quality corporate bond yields and therefore the discount rate used to value defined benefit obligations and a change to the assumed rate of future improvement in mortality. Actuarial losses have been partially offset by actuarial gains in the main pension scheme arising from a higher value of assets than expected. (see Note 5 on page 84 for more details).  
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
 
 
Condensed consolidated balance sheet 
 
at 31 December 2014 
 
                                                    31 December  30 September  31 December  
 2014                                               2014         2013          
                                                    £m           £m            £m           
                                                                                            
 Assets                                                                                     
 Cash and balances at central banks                 74,872       67,900        82,659       
 Net loans and advances to banks                    23,027       29,090        27,555       
 Reverse repurchase agreements and stock borrowing  20,708       24,860        26,516       
 Loans and advances to banks                        43,735       53,950        54,071       
 Net loans and advances to customers                334,251      392,969       390,825      
 Reverse repurchase agreements and stock borrowing  43,987       50,631        49,897       
 Loans and advances to customers                    378,238      443,600       440,722      
 Debt securities                                    86,649       106,769       113,599      
 Equity shares                                      5,635        8,309         8,811        
 Settlement balances                                4,667        20,941        5,591        
 Derivatives                                        353,590      314,021       288,039      
 Intangible assets                                  7,781        12,454        12,368       
 Property, plant and equipment                      6,167        6,985         7,909        
 Deferred tax                                       1,540        2,843         3,478        
 Prepayments, accrued income and other assets       5,878        7,185         7,614        
 Assets of disposal groups                          82,011       1,153         3,017        
                                                                                            
 Total assets                                       1,050,763    1,046,110     1,027,878    
                                                                                            
 Liabilities                                                                                
 Bank deposits                                      35,806       38,986        35,329       
 Repurchase agreements and stock lending            24,859       30,799        28,650       
 Deposits by banks                                  60,665       69,785        63,979       
 Customer deposits                                  354,288      405,367       414,396      
 Repurchase agreements and stock lending            37,351       44,302        56,484       
 Customer accounts                                  391,639      449,669       470,880      
 Debt securities in issue                           50,280       53,487        67,819       
 Settlement balances                                4,503        21,049        5,313        
 Short positions                                    23,029       34,499        28,022       
 Derivatives                                        349,805      310,361       285,526      
 Accruals, deferred income and other liabilities    13,346       14,618        16,017       
 Retirement benefit liabilities                     2,579        2,629         3,210        
 Deferred tax                                       500          491           507          
 Subordinated liabilities                           22,905       24,412        24,012       
 Liabilities of disposal groups                     71,320       272           3,378        
                                                                                            
 Total liabilities                                  990,571      981,272       968,663      
                                                                                            
 Equity                                                                                     
 Non-controlling interests                          2,946        2,747         473          
 Owners' equity*                                                                            
 Called up share capital                            6,877        6,832         6,714        
 Reserves                                           50,369       55,259        52,028       
                                                                                            
 Total equity                                       60,192       64,838        59,215       
                                                                                            
 Total liabilities and equity                       1,050,763    1,046,110     1,027,878    
                                                                                            
 * Owners' equity attributable to:                                                          
 Ordinary and B shareholders                        52,149       56,799        53,450       
 Other equity owners                                5,097        5,292         5,292        
                                                                                            
                                                    57,246       62,091        58,742       
 
 
Average balance sheet 
 
                                                                                                                                         
                                                             Year ended                     Quarter ended     
                                                             31 December       31 December                    31 December  30 September  
 2014                                                        2013                           2014              2014         
                                                             %                 %                              %            %             
                                                                                                                                         
 Average yields, spreads and margins of the                                                                                              
 banking business                                                                                                                        
 Gross yield on interest-earning assets of banking business  3.04              3.07                           3.06         3.04          
 Cost of interest-bearing liabilities of banking business    (1.13)            (1.38)                         (1.05)       (1.10)        
                                                                                                                                         
 Interest spread of banking business                         1.91              1.69                           2.01         1.94          
 Benefit from interest-free funds                            0.32              0.32                           0.31         0.32          
                                                                                                                                         
 Net interest margin of banking business                     2.23              2.01                           2.32         2.26          
                                                                                                                                         
 Average interest rates                                                                                                                  
 Base rate                                                   0.50              0.50                           0.50         0.50          
                                                                                                                                         
 London inter-bank three month offered rates                                                                                             
 - Sterling                                                  0.54              0.52                           0.56         0.56          
 - Eurodollar                                                0.23              0.24                           0.24         0.23          
 - Euro                                                      0.21              0.27                           0.08         0.16          
                                                                                                                                                           
                                                             Year ended                     Year ended        
                                                             31 December 2014               31 December 2013  
                                                             Average                                                       Average                         
                                                             balance           Interest     Rate                           balance       Interest  Rate    
                                                             £m                £m           %                              £m            £m        %       
                                                                                                                                                           
 Assets                                                                                                                                                    
 Loans and advances to banks                                 69,371            370          0.53                           74,706        430       0.58    
 Loans and advances to customers                             379,422           14,188       3.74                           399,856       15,087    3.77    
 Debt securities                                             54,037            736          1.36                           69,319        1,189     1.72    
                                                                                                                                                           
 Interest-earning assets                                                                                                                                   
 - banking business (1,3,4,5)                                502,830           15,294       3.04                           543,881       16,706    3.07    
 - trading business (6)                                      166,643                                                       216,211                         
                                                                                                                                                           
 Non-interest earning assets                                 371,881                                                       467,274                         
                                                                                                                                                           
 Total assets                                                1,041,354                                                     1,227,366                       
                                                                                                                                                           
 Memo: Funded assets                                         735,828                                                       845,506                         
                                                                                                                                                           
 Liabilities