REG - Royal Bk Scot.Grp. - Half Yearly Report: Part 2 <Origin Href="QuoteRef">RBS.L</Origin> - Part 5
30/07/2015 07:10
- Part 5: For the preceding part double click ID:nRSd5088Ud
(1,249) 1,339 2,739 1,112 6,771 13,259 23,971 21,483 61 (1,016) 3,438 5 5,399 29,370 (952) 11,507 4,211
Germany 5,509 6,538 3,175 5,149 1,871 83 22,325 8,092 6,377 (38) 7,650 244 5,168 27,493 (2,320) 31,029 6,690
France 5,775 2 8,048 1,505 1,965 83 17,378 4,306 2,404 3,929 6,418 321 7,562 24,940 (2,452) 32,703 18,824
Netherlands 612 803 3,964 5,687 1,751 31 12,848 3,061 1,079 3,356 5,333 19 7,940 20,788 (716) 16,213 1,937
Belgium 1,234 - 2,085 54 302 22 3,697 442 539 642 1,956 118 774 4,471 (161) 2,446 942
Luxembourg - 23 254 1,043 999 7 2,326 1,584 309 48 368 17 1,182 3,508 (21) 500 2,461
Other 1,851 11 817 67 268 18 3,032 400 275 1,424 864 69 810 3,842 (523) 3,514 210
Total
eurozone 13,732 8,716 21,082 14,617 13,927 13,503 85,577 39,368 11,044 8,345 26,027 793 28,835 114,412 (7,145) 97,912 35,275
Japan 7,377 1,968 1,324 550 99 31 11,349 2,334 - 7,200 1,795 20 626 11,975 (26) 7,532 2,752
China 156 169 954 200 847 32 2,358 1,982 90 - 255 31 152 2,510 21 359 6,131
India 476 60 44 199 867 34 1,680 1,153 367 109 51 - 545 2,225 (45) 111 63
Russia 8 11 661 39 854 45 1,618 1,545 8 (3) 68 - 91 1,709 (101) 83 -
These tables show RBS exposure at 30 June 2015 and 31 December 2014 by country of operation of the counterparty, except
exposures to governments and individuals which are shown by country of residence. Balance sheet exposures are shown net of
loan impairment provisions. Countries shown are those where the balance sheet exposure exceeded £1 billion and which had
ratings of A+ or below from Standard and Poor's, Moody's or Fitch at 30 June 2015, as well as selected eurozone countries.
The exposures are stated before taking into account risk mitigants, such as guarantees, insurance or collateral (with the
exception of reverse repos). Exposures relating to ocean-going vessels are not included as they cannot be meaningfully
assigned to specific countries from a country risk perspective. Refer to the 2014 Annual Report and Accounts for
definitions, including securities financing transactions (SFT).
Appendix 1 Capital and risk management
Country exposures (continued)
Net balance sheet exposure Analysis of net balance sheet exposures Off- CDS
Sovereign Central Other Other Net Debt securities Net balance Total notional Gross
banks banks FI Corporate Personal Total lending AFS/LAR HFT (net) Derivatives SFT sheet exposure less fair value Derivatives SFT
31 December 2014 £m £m £m £m £m £m £m £m £m £m £m £m £m £m £m £m £m
Eurozone
Ireland 239 587 726 839 5,653 14,593 22,637 21,176 56 413 991 1 2,922 25,559 (48) 2,330 1,464
Spain 251 - 583 164 2,184 88 3,270 2,024 47 364 835 - 1,923 5,193 (312) 3,913 422
Italy 112 15 2,519 368 1,187 25 4,226 1,095 169 5 2,957 - 2,031 6,257 (625) 9,192 823
Portugal 111 - 246 97 322 8 784 282 20 152 330 - 222 1,006 (155) 390 613
Greece 8 - 258 1 92 17 376 63 - 8 305 - 23 399 (8) 416 -
Cyprus - - - - 113 14 127 108 - - 19 - 16 143 - 19 -
Eurozone
periphery 721 602 4,332 1,469 9,551 14,745 31,420 24,748 292 942 5,437 1 7,137 38,557 (1,148) 16,260 3,322
Germany 12,301 2,681 3,940 5,496 2,083 86 26,587 4,601 7,121 5,653 8,317 895 6,090 32,677 (1,749) 39,275 8,704
France 5,203 3 7,089 1,924 1,774 81 16,074 2,931 1,951 4,034 6,392 766 8,586 24,660 (2,406) 41,132 17,598
Netherlands 72 926 5,557 5,981 2,130 29 14,695 3,582 1,690 2,509 6,830 84 9,323 24,018 (815) 20,986 3,573
Belgium 803 3 2,330 93 396 21 3,646 579 274 375 2,334 84 858 4,504 (219) 3,374 932
Luxembourg (1) 19 556 645 781 5 2,005 968 329 70 461 177 1,475 3,480 (53) 701 2,628
Other 1,689 19 762 132 533 16 3,151 612 456 930 1,148 5 1,047 4,198 (562) 4,818 302
Total
eurozone 20,788 4,253 24,566 15,740 17,248 14,983 97,578 38,021 12,113 14,513 30,919 2,012 34,516 132,094 (6,952) 126,546 37,059
Japan 3,257 1,007 1,927 514 325 33 7,063 1,633 3 3,043 2,358 26 844 7,907 (25) 10,129 10,005
China 329 130 1,011 363 1,674 41 3,548 2,886 243 62 243 114 531 4,079 (4) 244 4,770
India 526 85 133 156 1,053 36 1,989 1,336 415 132 106 - 639 2,628 (47) 180 -
Russia 39 14 711 101 915 50 1,830 1,673 39 - 118 - 167 1,997 (166) 202 -
Appendix 2
Income statement reconciliations
and balance sheet pre and post disposal groups
Appendix 2 Income statement reconciliations and balance sheet pre and post disposal groups
Half year ended
30 June 2015
Non- Reallocation of Presentational Statutory
statutory one-off items adjustments (1) CFG (2)
£m £m £m £m £m
Interest receivable 7,329 - - (1,222) 6,107
Interest payable (1,807) - - 118 (1,689)
Net interest income 5,522 - - (1,104) 4,418
Fees and commissions receivable 2,347 - - (389) 1,958
Fees and commissions payable (381) - - 18 (363)
Income from trading activities 734 210 - (69) 875
Other operating income 478 (57) - (53) 368
Non-interest income 3,178 153 - (493) 2,838
Total income 8,700 153 - (1,597) 7,256
Staff costs (3,075) - (348) 568 (2,855)
Premises and equipment (859) - (47) 161 (745)
Other administrative expenses (1,133) - (1,523) 290 (2,366)
Depreciation and amortisation (418) - (294) - (712)
Restructuring costs (1,503) - 1,503 - -
Litigation and conduct costs (1,315) - 1,315 - -
Write down of goodwill and other intangible assets - - (606) - (606)
Operating expenses (8,303) - - 1,019 (7,284)
Profit/(loss) before impairment releases 397 153 - (578) (28)
Impairment releases 232 - - 89 321
Operating profit 629 153 - (489) 293
Own credit adjustments (3) 288 (288) - - -
Strategic disposals (135) 135 - - -
Citizens discontinued operations (489) - - 489 -
Profit before tax 293 - - - 293
Tax charge (293) - - - (293)
Profit for continuing operations - - - - -
Profit from discontinued operations, net of tax
- Citizens 354 - - - 354
- Other 4 - - - 4
Profit from discontinued operations, net of tax 358 - - - 358
Profit for the period 358 - - - 358
Non-controlling interests (344) - - - (344)
Preference share and other dividends (167) - - - (167)
Loss attributable to ordinary and B shareholders (153) - - - (153)
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 £210 million gain (H1 2014 - £11 million gain; Q2 2015 - £115 million gain; Q1 2015 - £95 million gain; Q2 2014 - £84 million loss) to income from trading activities and £78 million gain (H1 2014 - £62 million loss; Q2 2015 - £53 million gain; Q1 2015 - £25 million gain; Q2 2014 - £106 million loss) to other operating income.
Appendix 2 Income statement reconciliations and balance sheet pre and post disposal groups
Half year ended
30 June 2014
Non- Reallocation of Presentational Statutory
statutory one-off items adjustments (1) CFG (2)
£m £m £m £m £m
Interest receivable 7,621 - - (1,077) 6,544
Interest payable (2,125) (3) - 90 (2,038)
Net interest income 5,496 (3) - (987) 4,506
Fees and commissions receivable 2,605 - - (362) 2,243
Fees and commissions payable (487) - - 12 (475)
Income from trading activities 1,482 11 - (43) 1,450
Gain on redemption of own debt - 20 - - 20
Other operating income 882 154 - (231) 805
Non-interest income 4,482 185 - (624) 4,043
Total income 9,978 182 - (1,611) 8,549
Staff costs (3,340) - (196) 539 (2,997)
Premises and equipment (1,079) - (196) 149 (1,126)
Other administrative expenses (1,292) (1) (369) 305 (1,357)
Depreciation and amortisation (551) - (3) 88 (466)
Restructuring costs (514) - 514 - -
Litigation and conduct costs (250) - 250 - -
Write down of goodwill and other intangible assets (82) (130) - - (212)
Operating expenses (7,108) (131) - 1,081 (6,158)
Profit before impairment losses 2,870 51 - (530) 2,391
Impairment losses (269) - - 104 (165)
Operating profit 2,601 51 - (426) 2,226
Own credit adjustments (3) (51) 51 - - -
Gain on redemption of own debt 20 (20) - - -
Write down of goodwill (130) 130 - - -
Strategic disposals 191 (191) - - -
Citizens discontinued operations (426) - - 426 -
RFS Holdings minority interest 21 (21) - - -
Profit before tax 2,226 - - - 2,226
Tax charge (592) - - - (592)
Profit for continuing operations 1,634 - - - 1,634
Profit from discontinued operations, net of tax
- Citizens 285 - - - 285
- Other 35 - - - 35
Profit from discontinued operations, net of tax 320 - - - 320
Profit for the period 1,954 - - - 1,954
Non-controlling interests (42) - - - (42)
Preference share and other dividends (487) - - - (487)
Profit attributable to ordinary and B shareholders 1,425 - - - 1,425
For the notes to this table refer to page 1.
Appendix 2 Income statement reconciliations and balance sheet pre and post disposal groups
Quarter ended
30 June 2015
Non- Reallocation of Presentational Statutory
statutory one-off items adjustments (1) CFG (2)
£m £m £m £m £m
Interest receivable 3,643 - - (612) 3,031
Interest payable (877) - - 61 (816)
Net interest income 2,766 - - (551) 2,215
Fees and commissions receivable 1,169 - - (200) 969
Fees and commissions payable (195) - - 9 (186)
Income from trading activities 464 115 - (34) 545
Other operating income 165 53 - (24) 194
Non-interest income 1,603 168 - (249) 1,522
Total income 4,369 168 - (800) 3,737
Staff costs (1,517) - (293) 280 (1,530)
Premises and equipment (372) - (37) 83 (326)
Other administrative expenses (622) - (559) 154 (1,027)
Depreciation and amortisation (186) - (14) - (200)
Restructuring costs (1,050) - 1,050 - -
Litigation and conduct costs (459) - 459 - -
Write down of goodwill and other intangible assets - - (606) - (606)
Operating expenses (4,206) - - 517 (3,689)
Profit before impairment releases 163 168 - (283) 48
Impairment releases 141 - - 51 192
Operating profit 304 168 - (232) 240
Own credit adjustments (3) 168 (168) - - -
Citizens discontinued operations (232) - - 232 -
Profit before tax 240 - - - 240
Tax charge (100) - - - (100)
Profit from continuing operations 140 - - - 140
Profit from discontinued operations, net of tax
- Citizens 674 - - - 674
- Other - - - - -
Profit from discontinued operations, net of tax 674 - - - 674
Profit for the period 814 - - - 814
Non-controlling interests (428) - - - (428)
Preference share and other dividends (93) - - - (93)
Profit attributable to ordinary and B shareholders 293 - - - 293
For the notes to this table refer to page 1.
Appendix 2 Income statement reconciliations and balance sheet pre and post disposal groups
Quarter ended
31 March 2015
Non- Reallocation of Presentational Statutory
statutory one-off items adjustments (1) CFG (2)
£m £m £m £m £m
Interest receivable 3,686 - - (610) 3,076
Interest payable (930) - - 57 (873)
Net interest income 2,756 - - (553) 2,203
Fees and commissions receivable 1,178 - - (189) 989
Fees and commissions payable (186) - - 9 (177)
Income from trading activities 270 95 - (35) 330
Other operating income 313 (110) - (29) 174
Non-interest income 1,575 (15) - (244) 1,316
Total income 4,331 (15) - (797) 3,519
Staff costs (1,558) - (55) 288 (1,325)
Premises and equipment (487) - (10) 78 (419)
Other administrative expenses (511) - (964) 136 (1,339)
Depreciation and amortisation (232) - (280) - (512)
Restructuring costs (453) - 453 - -
Litigation and conduct costs (856) - 856 - -
Operating expenses (4,097) - - 502 (3,595)
Profit/(loss) before impairment releases 234 (15) - (295) (76)
Impairment releases 91 - - 38 129
Operating profit 325 (15) - (257) 53
Own credit adjustments (3) 120 (120) - - -
Strategic disposals (135) 135 - - -
Citizens discontinued operations (257) - - 257 -
Profit before tax 53 - - - 53
Tax charge (193) - - - (193)
Loss from continuing operations (140) - - - (140)
Loss from discontinued operations, net of tax
- Citizens (320) - - - (320)
- Other 4 - - - 4
Loss from discontinued operations, net of tax (316) - - - (316)
Loss for the period (456) - - - (456)
Non-controlling interests 84 - - - 84
Preference share and other dividends (74) - - - (74)
Loss attributable to ordinary and B shareholders (446) - - - (446)
For the notes to this table refer to page 1.
Appendix 2 Income statement reconciliations and balance sheet pre and post disposal groups
Quarter ended
30 June 2014
Non- Reallocation of Presentational Statutory
statutory one-off items adjustments (1) CFG (2)
£m £m £m £m £m
Interest receivable 3,822 (1) - (542) 3,279
Interest payable (1,024) 1 - 43 (980)
Net interest income 2,798 - - (499) 2,299
Fees and commissions receivable 1,314 - - (188) 1,126
Fees and commissions payable (251) - - 7 (244)
Income from trading activities 626 (85) - (13) 528
Other operating income 438 (93) - (191) 154
Non-interest income 2,127 (178) - (385) 1,564
Total income 4,925 (178) - (884) 3,863
Staff costs (1,693) 1 (153) 287 (1,558)
Premises and equipment (485) - (137) 76 (546)
Other administrative expenses (605) (2) (344) 171 (780)
Depreciation and amortisation (282) 1 (1) 45 (237)
Restructuring costs (385) - 385 - -
Litigation and conduct costs (250) - 250 - -
Write down of goodwill and other intangible assets - (130) - - (130)
Operating expenses (3,700) (130) - 579 (3,251)
Profit before impairment releases 1,225 (308) - (305) 612
Impairment releases 93 - - 31 124
Operating profit 1,318 (308) - (274) 736
Own credit adjustments (3) (190) 190 - - -
Write down of goodwill (130) 130 - - -
Citizens discontinued operations (274) - - 274 -
RFS Holdings minority interest 12 (12) - - -
Profit before tax 736 - - - 736
Tax charge (278) - - - (278)
Profit from continuing operations 458 - - - 458
Profit from discontinued operations, net of tax
- Citizens 181 - - - 181
- Other 26 - - - 26
Profit from discontinued operations, net of tax 207 - - - 207
Profit for the period 665 - - - 665
Non-controlling interests (23) - - - (23)
Preference share and other dividends (412) - - - (412)
Profit attributable to ordinary and B shareholders 230 - - - 230
For the notes to this table refer to page 1.
Appendix 2 Income statement reconciliations and balance sheet pre and post disposal groups
30 June 2015 31 December 2014
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 81,900 842 82,742 74,872 622 75,494
Net loans and advances to banks 20,714 2,571 23,285 23,027 1,745 24,772
Reverse repurchase agreements and stock borrowing 20,807 157 20,964 20,708 - 20,708
Loans and advances to banks 41,521 2,728 44,249 43,735 1,745 45,480
Net loans and advances to customers 314,993 64,511 379,504 334,251 60,550 394,801
Reverse repurchase agreements and stock borrowing 46,799 - 46,799 43,987 - 43,987
Loans and advances to customers 361,792 64,511 426,303 378,238 60,550 438,788
Debt securities 77,187 16,185 93,372 86,649 15,293 101,942
Equity shares 3,363 583 3,946 5,635 572 6,207
Settlement balances 9,630 598 10,228 4,667 - 4,667
Derivatives 281,857 428 282,285 353,590 402 353,992
Intangible assets 7,198 752 7,950 7,781 583 8,364
Property, plant and equipment 4,874 609 5,483 6,167 503 6,670
Deferred tax 1,479 - 1,479 1,540 - 1,540
Prepayments, accrued income and
other assets 4,829 1,835 6,664 5,878 1,741 7,619
Assets of disposal groups 89,071 (89,071) - 82,011 (82,011) -
Total assets 964,701 - 964,701 1,050,763 - 1,050,763
Liabilities
Bank deposits 30,978 4,474 35,452 35,806 5,128 40,934
Repurchase agreements and stock lending 21,612 1,942 23,554 24,859 1,666 26,525
Deposits by banks 52,590 6,416 59,006 60,665 6,794 67,459
Customer deposits 342,023 70,491 412,514 354,288 60,583 414,871
Repurchase agreements and stock lending 44,750 467 45,217 37,351 706 38,057
Customer accounts 386,773 70,958 457,731 391,639 61,289 452,928
Debt securities in issue 41,819 1,178 42,997 50,280 1,625 51,905
Settlement balances 7,335 8 7,343 4,503 - 4,503
Short positions 24,561 - 24,561 23,029 - 23,029
Derivatives 273,589 191 273,780 349,805 144 349,949
Accruals, deferred income and other liabilities 13,962 834 14,796 13,346 683 14,029
Retirement benefit liabilities 1,869 184 2,053 2,579 197 2,776
Deferred tax 363 393 756 500 362 862
Subordinated liabilities 19,683 226 19,909 22,905 226 23,131
Liabilities of disposal groups 80,388 (80,388) - 71,320 (71,320) -
Total liabilities 902,932 - 902,932 990,571 - 990,571
Notes:
(1) Primarily Citizens and international private banking.
(2) Primarily Citizens.
(3) Excludes reverse repos.
Appendix 2 Income statement reconciliations and balance sheet pre and post disposal groups
30 June 2015 31 December 2014
Gross of Gross of
Balance Disposal disposal Balance Disposal disposal
sheet groups (1) groups sheet groups (2) groups
Selected financial data £m £m £m £m £m £m
Gross loans and advances to customers 325,718 65,063 390,781 351,711 61,090 412,801
Customer loan impairment provisions (10,725) (552) (11,277) (17,460) (540) (18,000)
Net loans and advances to customers (3) 314,993 64,511 379,504 334,251 60,550 394,801
Gross loans and advances to banks 20,740 2,571 23,311 23,067 1,745 24,812
Bank loan impairment provisions (26) - (26) (40) - (40)
Net loans and advances to banks (3) 20,714 2,571 23,285 23,027 1,745 24,772
Total loan impairment provisions (10,751) (552) (11,303) (17,500) (540) (18,040)
Customer REIL 17,426 1,260 18,686 26,842 1,335 28,177
Bank REIL 28 - 28 42 - 42
REIL 17,454 1,260 18,714 26,884 1,335 28,219
Gross unrealised gains on debt securities 895 211 1,106 1,316 261 1,577
Gross unrealised losses on debt securities (174) (129) (303) (145) (137) (282)
For the notes to this table refer to page 6.
Appendix 3
Go-forward Bank profile
Appendix 3 Go-forward Bank profile
RBS is committed to a leaner, less volatile business based around its core franchises of PBB and CPB. To achieve this goal
a number of initiatives have been announced which include, but are not limited to, the restructuring of CIB into CIB
Go-forward and CIB Capital Resolution, the divestment of the remaining stake in Citizens, the exit of Williams & Glyn and
the continued run down of RCR. Significant progress towards these exits is expected in 2015. The following table
illustrates the impact on certain key performance measures of these initiatives by showing the 'Go-forward' profile of the
bank and the segments, businesses and portfolios which it intends to exit. This information is presented to illustrate the
strategy and its impact on the business and is on a non-statutory basis and should be read in conjunction with the notes
below as well as the section titled Forward-looking statements.
Go-forward Bank profile Exit Bank
CIB International Total
UK Ulster Commercial Private CIB Go- Other Go- Total Go- Capital Williams private Other Exit Total
PBB
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