REG - Royal Bk Scot.Grp. - Half-year Report <Origin Href="QuoteRef">RBS.L</Origin> - Part 13

NatwestAnnouncement

04/08/2017 07:08

- Part 13: For the preceding part double click  ID:nRSD0890Nl 

 Banking     Banking  International    Markets  Resolution  & Glyn    other    RBS      
 Quarter ended 30 June 2017           £m      £m             £m          £m       £m               £m       £m          £m        £m       £m       
 Income statement                                                                                                                                   
 Total income - statutory             1,378   148            885         161      97               444      (43)        211       426      3,707    
 Own credit adjustments               -       2              -           -        -                28       15          -         (1)      44       
 Loss on redemption of own debt       -       -              -           -        -                -        -           -         9        9        
 Strategic disposals                  -       -              -           -        -                -        -           -         (156)    (156)    
 Total income  - adjusted             1,378   150            885         161      97               472      (28)        211       278      3,604    
 Operating expenses - statutory       (735)   (151)          (446)       (108)    (48)             (355)    (378)       (74)      (104)    (2,399)  
 Restructuring costs  - direct        3       5              1           -        -                10       60          -         134      213      
 - indirect                           26      4              17          3        1                25       (12)        -         (64)     -        
 Litigation and conduct costs         9       33             1           -        -                3        266         -         30       342      
 Operating expenses - adjusted        (697)   (109)          (427)       (105)    (47)             (317)    (64)        (74)      (4)      (1,844)  
 Impairment (losses)/releases         (40)    (13)           (33)        (4)      2                (1)      33          (14)      -        (70)     
 Operating profit/(loss) - statutory  603     (16)           406         49       51               88       (388)       123       322      1,238    
 Operating profit/(loss) - adjusted   641     28             425         52       52               154      (59)        123       274      1,690    
 Additional information                                                                                                                             
 Return on equity (1)                 30.8%   (2.4%)         10.7%       9.6%     14.0%            2.9%     nm          23.5%     nm       8.0%     
 Return on equity  - adjusted (1,2)   32.8%   4.3%           11.4%       10.3%    14.3%            6.6%     nm          23.5%     nm       12.9%    
 Cost:income ratio (3)                53.3%   102.0%         48.3%       67.1%    49.5%            80.0%    nm          35.1%     nm       64.4%    
 Cost :income ratio - adjusted (2,3)  50.6%   72.7%          46.1%       65.2%    48.5%            67.2%    nm          35.1%     nm       50.7%    
 Quarter ended 31 March 2017                                                                                                                        
 Income statement                                                                                                                                   
 Total income - statutory             1,377   145            865         160      98               488      (59)        206       (68)     3,212    
 Own credit adjustments               -       1              -           -        -                20       7           -         1        29       
 Gain on redemption of own debt       -       -              -           -        -                -        -           -         (2)      (2)      
 Total income  - adjusted             1,377   146            865         160      98               508      (52)        206       (69)     3,239    
 Operating expenses - statutory       (851)   (142)          (550)       (124)    (46)             (420)    (161)       (84)      (75)     (2,453)  
 Restructuring costs  - direct        20      19             39          -        -                20       70          -         409      577      
 - indirect                           111     15             60          11       3                48       16          -         (264)    -        
 Litigation and conduct costs         4       -              3           -        -                31       6           -         10       54       
 Operating expenses - adjusted        (716)   (108)          (448)       (113)    (43)             (321)    (69)        (84)      80       (1,822)  
 Impairment (losses)/releases         (32)    24             (61)        (3)      (7)              -        45          (11)      (1)      (46)     
 Operating profit/(loss) - statutory  494     27             254         33       45               68       (175)       111       (144)    713      
 Operating profit/(loss) - adjusted   629     62             356         44       48               187      (76)        111       10       1,371    
 Additional information                                                                                                                             
 Return on equity (1)                 24.8%   4.0%           5.7%        6.0%     12.0%            1.7%     nm          20.9%     nm       3.1%     
 Return on equity  - adjusted (1,2)   32.0%   9.3%           8.9%        8.6%     13.0%            7.9%     nm          20.9%     nm       9.7%     
 Cost:income ratio (3)                61.8%   97.9%          62.0%       77.5%    46.9%            86.1%    nm          40.8%     nm       76.1%    
 Cost:income ratio - adjusted (2,3)   52.0%   74.0%          49.7%       70.6%    43.9%            63.2%    nm          40.8%     nm       55.8%    
 
 
Segmental income statement reconciliations 
 
                                      PBB                CPB                                        Central              
                                               Ulster         Commercial  Private  RBS              NatWest  Capital     Williams  items &  Total    
                                      UK PBB   Bank RoI       Banking     Banking  International    Markets  Resolution  & Glyn    other    RBS      
 Quarter ended 30 June 2016           £m       £m             £m          £m       £m               £m       £m          £m        £m       £m       
                                                                                                                                                     
 Income statement                                                                                                                                    
 Total income - statutory             1,340    135            846         166      95               477      (325)       206       60       3,000    
 Own credit adjustments               -        -              -           -        -                (73)     (76)        -         (45)     (194)    
 Loss on redemption of own debt       -        -              -           -        -                -        -           -         130      130      
 Strategic disposals                  -        -              -           -        -                -        45          -         (246)    (201)    
 Total income  - adjusted             1,340    135            846         166      95               404      (356)       206       (101)    2,735    
 Operating expenses - statutory       (1,292)  (202)          (546)       (125)    (35)             (368)    (220)       (124)     (597)    (3,509)  
 Restructuring costs - direct         38       18             -           -        1                10       5           25        295      392      
 - indirect                           51       1              41          4        1                11       16          -         (125)    -        
 Litigation and conduct costs         421      92             8           2        -                38       16          -         707      1,284    
 Operating expenses - adjusted        (782)    (91)           (497)       (119)    (33)             (309)    (183)       (99)      280      (1,833)  
 Impairment (losses)/releases         (24)     14             (89)        -        (9)              -        (67)        (11)      -        (186)    
 Operating profit/(loss) - statutory  24       (53)           211         41       51               109      (612)       71        (537)    (695)    
 Operating profit/(loss) - adjusted   534      58             260         47       53               95       (606)       96        179      716      
                                                                                                                                                     
 Additional information                                                                                                                              
 Return on equity (1)                 (0.4%)   (8.2%)         4.9%        8.6%     15.0%            4.3%     nm          13.3%     nm       (11.0%)  
 Return on equity  - adjusted (1,2)   24.2%    9.0%           6.6%        9.9%     15.7%            3.5%     nm          18.0%     nm       3.2%     
 Cost income ratio (3)                96.4%    149.6%         63.0%       75.3%    36.8%            77.1%    nm          60.2%     nm       117.2%   
 Cost income ratio - adjusted (2,3)   58.4%    67.4%          57.0%       71.7%    34.7%            76.5%    nm          48.1%     nm       66.6%    
 
 
Notes: 
 
 (1)  RBS's CET1 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 14% (Ulster Bank RoI - 11% prior to Q1 2017), 11% (Commercial Banking), 14% (Private Banking - 15% prior to Q1 2017), 12% (RBS International) and 15% for all other segments, of the monthly average of segmental risk   
      -weighted assets incorporating the effect of capital deductions (RWAes). RBS Return on equity is calculated using profit for the period attributable to ordinary shareholders.                                                                                  
 (2)  Excluding own credit adjustments, (loss)/gain on redemption of own debt, strategic disposals, restructuring costs and litigation and conduct costs.                                                                                                             
 (3)  Operating lease depreciation included in income (H1 2017 - £72 million; Q2 2017 - £36 million; H1 2016 - £76 million; Q1 2017 - £36 million and Q2 2016 - £38 million).                                                                                         
 
 
Legal Entity Identifier: 2138005O9XJIJN4JPN90 
 
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