REG - Royal Bk Scot.Grp. - Final Results - Part 2 <Origin Href="QuoteRef">RBS.L</Origin> - Part 8

NatwestAnnouncement

26/02/2015 07:14

- Part 8: For the preceding part double click  ID:nRSZ9136Fg 

         4      (240)      
 Income from trading activities                      162               15               -               (2)    175        
 Gain on redemption of own debt                      -                 (29)             -               -      (29)       
 Other operating income                              (115)             146              -               (38)   (7)        
                                                                                                                          
 Non-interest income                                 1,173             132              -               (223)  1,082      
                                                                                                                          
 Total income                                        3,940             129              -               (704)  3,365      
                                                                                                                          
 Staff costs                                         (1,539)           (1)              (1)             250    (1,291)    
 Premises and equipment                              (614)             -                (86)            78     (622)      
 Other administrative expenses                       (985)             1                (2,976)         175    (3,785)    
 Depreciation and amortisation                       (344)             -                8               15     (321)      
 Restructuring costs                                 (180)             -                180             -      -          
 Litigation and conduct costs                        (2,875)           -                2,875           -      -          
 Write down of goodwill and other intangible assets  (344)             (1,059)          -               -      (1,403)    
                                                                                                                          
 Operating expenses                                  (6,881)           (1,059)          -               518    (7,422)    
                                                                                                                          
 Loss before impairment losses                       (2,941)           (930)            -               (186)  (4,057)    
 Impairment losses                                   (5,112)           -                -               82     (5,030)    
                                                                                                                          
 Operating loss                                      (8,053)           (930)            -               (104)  (9,087)    
 Gain on redemption of own debt                      (29)              29               -               -      -          
 Write down of goodwill                              (1,059)           1,059            -               -      -          
 Strategic disposals                                 168               (168)            -               -      -          
 Citizens discontinued operations                    (104)             -                -               104    -          
 RFS Holdings minority interest                      (10)              10               -               -      -          
                                                                                                                          
 Loss before tax                                     (9,087)           -                -               -      (9,087)    
 Tax charge                                          403               -                -               -      403        
                                                                                                                          
 Loss for continuing operations                      (8,684)           -                -               -      (8,684)    
                                                                                                                          
 Profit from discontinued operations, net of tax                                                                          
 - Citizens                                          78                -                -               -      78         
 - Other                                             15                -                -               -      15         
                                                                                                                          
 Profit from discontinued operations, net of tax     93                -                -               -      93         
                                                                                                                          
 Loss for the period                                 (8,591)           -                -               -      (8,591)    
 Non-controlling interests                           3                 -                -               -      3          
 Preference share and other dividends                (114)             -                -               -      (114)      
                                                                                                                          
 Loss attributable to ordinary and B shareholders    (8,702)           -                -               -      (8,702)    
 
 
Notes: 
 
 (1)  Reallocation of restructuring costs and litigation and conduct costs into the statutory operating expense lines.                                                                                                                                                                                                                                        
 (2)  The statutory results of Citizens Financial Group (CFG), which is classified as a discontinued operation.                                                                                                                                                                                                                                               
 (3)  Reallocation of £40 million loss (FY 2013 - £35 million gain; Q4 2014 - £84 million loss; Q3 2014 - £33 million gain; Q4 2013 - £15 million gain) to income from trading activities and £106 million loss (FY 2013 - £155 million loss; Q4 2014 - £60 million loss; Q3 2014 - £16 million gain; Q4 2013 - £15 million loss) to other operating income.  
 
 
Appendix 2 Income statement reconciliations and balance sheet pre and post disposal groups 
 
Analysis of balance sheet pre and post disposal groups 
 
In accordance with IFRS 5, assets and liabilities of disposal groups are presented as a single line on the face of the
balance sheet. As allowed by IFRS, disposal groups are included within risk measures in the Capital and risk management
Appendix. 
 
                                                           31 December 2014            31 December 2013  
                                                                                       Gross of                                          Gross of   
 Balance                                                   Disposal          disposal  Balance           Disposal    disposal   
 sheet                                                     groups (1)        groups    sheet             groups (2)  groups     
                                                           £m                £m        £m                            £m         £m       £m         
                                                                                                                                                    
 Assets                                                                                                                                             
 Cash and balances at central banks                        74,872            622       75,494                        82,659     2        82,661     
 Net loans and advances to banks                           23,027            1,745     24,772                        27,555     22       27,577     
 Reverse repurchase agreements and stock borrowing         20,708            -         20,708                        26,516     41       26,557     
 Loans and advances to banks                               43,735            1,745     45,480                        54,071     63       54,134     
 Net loans and advances to customers                       334,251           60,550    394,801                       390,825    1,765    392,590    
 Reverse repurchase agreements and stock borrowing         43,987            -         43,987                        49,897     -        49,897     
 Loans and advances to customers                           378,238           60,550    438,788                       440,722    1,765    442,487    
 Debt securities                                           86,649            15,293    101,942                       113,599    24       113,623    
 Equity shares                                             5,635             572       6,207                         8,811      -        8,811      
 Settlement balances                                       4,667             -         4,667                         5,591      -        5,591      
 Derivatives                                               353,590           402       353,992                       288,039    1        288,040    
 Intangible assets                                         7,781             583       8,364                         12,368     30       12,398     
 Property, plant and equipment                             6,167             503       6,670                         7,909      32       7,941      
 Deferred tax                                              1,540             -         1,540                         3,478      1        3,479      
 Prepayments, accrued income and other assets              5,878             1,741     7,619                         7,614      936      8,550      
 Assets of disposal groups                                 82,011            (82,011)  -                             3,017      (2,854)  163        
                                                                                                                                                    
 Total assets                                              1,050,763         -         1,050,763                     1,027,878  -        1,027,878  
                                                                                                                                                    
 Liabilities                                                                                                                                        
 Bank deposits                                             35,806            5,128     40,934                        35,329     -        35,329     
 Repurchase agreements and stock lending                   24,859            1,666     26,525                        28,650     -        28,650     
 Deposits by banks                                         60,665            6,794     67,459                        63,979     -        63,979     
 Customer deposits                                         354,288           60,583    414,871                       414,396    3,273    417,669    
 Repurchase agreements and stock lending                   37,351            706       38,057                        56,484     -        56,484     
 Customer accounts                                         391,639           61,289    452,928                       470,880    3,273    474,153    
 Debt securities in issue                                  50,280            1,625     51,905                        67,819     -        67,819     
 Settlement balances                                       4,503             -         4,503                         5,313      -        5,313      
 Short positions                                           23,029            -         23,029                        28,022     -        28,022     
 Derivatives                                               349,805           144       349,949                       285,526    1        285,527    
 Accruals, deferred income and other liabilities           13,346            683       14,029                        16,017     101      16,118     
 Retirement benefit liabilities                            2,579             197       2,776                         3,210      1        3,211      
 Deferred tax                                              500               362       862                           507        -        507        
 Subordinated liabilities                                  22,905            226       23,131                        24,012     -        24,012     
 Liabilities of disposal groups                            71,320            (71,320)  -                             3,378      (3,376)  2          
                                                                                                                                                    
 Total liabilities                                         990,571           -         990,571                       968,663    -        968,663    
                                                                                                                                                    
 For the notes to this table refer to the following page.                                                            
 
 
Appendix 2 Income statement reconciliations and balance sheet pre and post disposal groups 
 
                                             31 December 2014            31 December 2013  
                                                                         Gross of                                       Gross of  
 Balance                                     Disposal          disposal  Balance           Disposal    disposal  
 sheet                                       groups (1)        groups    sheet             groups (2)  groups    
                                             £m                £m        £m                            £m        £m     £m        
                                                                                                                                  
 Selected financial data                                                                                                          
 Gross loans and advances to customers       351,711           61,090    412,801                       415,978   1,774  417,752   
 Customer loan impairment provisions         (17,460)          (540)     (18,000)                      (25,153)  (9)    (25,162)  
 Net loans and advances to customers (4)     334,251           60,550    394,801                       390,825   1,765  392,590   
                                                                                                                                  
 Gross loans and advances to banks           23,067            1,745     24,812                        27,618    22     27,640    
 Bank loan impairment provisions             (40)              -         (40)                          (63)      -      (63)      
 Net loans and advances to banks (4)         23,027            1,745     24,772                        27,555    22     27,577    
                                                                                                                                  
 Total loan impairment provisions            17,500            540       18,040                        (25,216)  (9)    (25,225)  
                                                                                                                                  
 Customer REIL                               26,842            1,335     28,177                        39,322    -      39,322    
 Bank REIL                                   42                -         42                            70        -      70        
 REIL                                        26,884            1,335     28,219                        39,392    -      39,392    
                                                                                                                                  
 Gross unrealised gains on debt securities   1,316             261       1,566                         1,541     -      1,541     
 Gross unrealised losses on debt securities  (145)             (137)     (282)                         (887)     -      (887)     
 
 
Notes: 
 
 (1)  Primarily Citizens.                                                                           
 (2)  Primarily investment in associate (Direct Line Group) and Illinois branches of RBS Citizens.  
 (3)  Primarily Direct Line Group.                                                                  
 (4)  Excludes reverse repos.                                                                       
 
 
Appendix 3 
 
Comparative period 
 
segment performance 
 
Appendix 3 Comparative period segment performance 
 
                                                                                                                                                                                              
                                                           Year ended 31 December 2013*  
                                                           PBB                                    CPB        CIB                                      
                                                                                         Ulster              Commercial  Private                      Central                       Total     
                                                           UK PBB                        Bank     Total      Banking     Banking  Total               items (1)  CFG      Non-Core  RBS       
                                                           £m                            £m       £m         £m          £m       £m         £m       £m         £m       £m        £m        
                                                                                                                                                                                              
 Income statement                                                                                                                                                                             
 Net interest income                                       4,490