REG - Royal Bk Scot.Grp. - Interim Management Statement <Origin Href="QuoteRef">RBS.L</Origin> - Part 5
29/04/2016 07:06
- Part 5: For the preceding part double click ID:nRSc7468Wd
APAC portfolio (4) 1 6 25
Americas portfolio 7 8 23
EMEA portfolio (5) 10 14 26
Legacy loan portfolio (14) (26) 107
Shipping 16 14 24
Markets (29) (32) 95
GTS 48 69 126
Other 8 (130) (46)
Income excluding disposals and own credit adjustments 47 (77) 380
Disposal (losses)/gains (2) (180) 13
Own credit adjustments 108 (5) 65
Total income 153 (262) 458
Appendix 1 Capital Resolution
31 March 31 December 31 March
2016 2015 2015
Analysis of RWA by portfolio £bn £bn £bn
APAC portfolio (4) 0.3 0.5 3.9
Americas portfolio 0.6 1.0 8.6
EMEA portfolio (5) 1.2 1.2 5.1
Legacy loan portfolio 3.1 3.7 7.9
Shipping 4.2 4.5 5.5
Markets 22.4 20.7 30.4
GTS 3.3 3.6 8.7
Saudi Hollandi Bank 7.3 6.9 6.4
Other 2.4 2.9 3.8
Total credit and market risk 44.8 45.0 80.3
Operational risk 2.8 4.0 4.0
Total RWAs 47.6 49.0 84.3
Balance sheet
Total loans and advances to customers (gross) 23.4 25.9 55.8
Loan impairment provisions (1.0) (2.3) (7.3)
Net loans and advances to customers 22.4 23.6 48.5
Funded assets 50.2 53.4 108.3
For the notes to this table refer to page 1.
Appendix 1 Williams & Glyn
Quarter ended
31 March 31 December 31 March
2016 2015 2015
Income statement (3) £m £m £m
Net interest income 162 165 163
Net fees and commissions 40 40 38
Other non-interest income 3 3 3
Non-interest income 43 43 41
Total income 205 208 204
Direct expenses
- staff costs (62) (61) (45)
- other costs (15) (24) (6)
Indirect expenses (21) (22) (25)
Restructuring costs
- direct (20) (28) -
Operating expenses (118) (135) (76)
Operating profit before impairment (losses)/releases 87 73 128
Impairment (losses)/releases (6) (20) 21
Operating profit 81 53 149
Operating expenses - adjusted (1) (98) (107) (76)
Operating profit - adjusted (1) 101 81 149
Analysis of income by product
Retail 115 117 117
Commercial 90 91 87
Total income 205 208 204
Analysis of impairments by sector
Retail 5 1 5
Commercial 1 19 (26)
Total impairment losses/(releases) 6 20 (21)
31 March 31 December 31 March
2016 2015 2015
Balance sheet (3) £bn £bn £bn
Loans and advances to customers (gross)
- Retail 11.7 11.6 11.2
- Commercial 8.7 8.7 8.7
Total loans and advances to customers (gross) 20.4 20.3 19.9
For the notes to this table refer to page 1.
Appendix 2
Additional capital resources, RWA and leverage information
Appendix 2 Additional capital resources, RWA and leverage information
Capital resources, RWAs and leverage based on the relevant local regulatory capital transitional arrangements for the
significant legal entities within the Group are set at below.
31 March 2016 31 December 2015
RBS plc NatWest Plc UBIL (1) RBS plc NatWest Plc UBIL (1)
Risk asset ratios % % % % % %
CET1 14.3 11.9 29.8 16.0 11.6 29.6
Tier 1 15.3 11.9 29.8 17.1 11.6 29.6
Total 23.5 19.4 32.5 25.3 19.6 32.1
Capital (2) £m £m £m £m £m £m
Tangible equity 49,181 12,255 6,316 49,212 10,784 5,753
Expected loss less impairment provisions (299) (634) - (395) (703) (22)
Prudential valuation adjustment (403) (1) - (349) (1) -
Deferred tax assets (198) (621) (226) (252) (622) (210)
Own credit adjustments (176) - - 17 - -
Pension fund adjustment (143) (285) 89 (138) - 142
Instruments of financial sector entities where
the institution has a significant investment (20,079) (3,067) - (15,680) (2,837) -
Other adjustments for regulatory purposes (203) (35) (112) 1 533 27
Total deductions (21,501) (4,643) (249) (16,796) (3,630) (63)
CET1 capital 27,680 7,612 6,067 32,416 7,154 5,690
AT1 capital 1,976 - - 2,318 17 -
Tier 1 capital 29,656 7,612 6,067 34,734 7,171 5,690
Tier 2 capital 15,777 4,806 540 16,607 4,966 485
Total regulatory capital 45,433 12,418 6,607 51,341 12,137 6,175
Risk-weighted assets
Credit risk
- non-counterparty - advanced IRB 58,665 42,300 17,534 57,790 39,231 16,761
- non-counterparty - standardised 75,605 13,437 1,184 88,654 15,191 968
- counterparty 25,278 434 459 21,769 402 345
Market risk 18,808 524 39 19,073 570 7
Operational risk 14,861 7,209 1,124 15,615 6,361 1,148
Total RWAs 193,217 63,904 20,340 202,901 61,755 19,229
Leverage
Derivatives 315,940 2,780 753 265,601 2,086 657
Loans and advances 181,522 209,834 21,101 175,906 207,632 19,876
Reverse repos 34,515 - - 31,096 - -
Other assets 201,615 10,570 2,378 196,579 10,674 2,245
Total assets 733,592 223,184 24,232 669,182 220,392 22,778
Derivatives
- netting (305,353) (2,011) (122) (260,076) (1,451) (99)
- potential future exposures 77,234 186 249 76,804 196 246
Securities financing transactions gross up 8,462 - - 5,162 - -
Undrawn commitments 43,916 10,064 1,204 46,309 9,890 1,021
Regulatory deductions and other adjustments (19,509) (5,371) (226) (15,827) (5,221) (212)
Exclusion of core UK-group exposures (20,433) (67,899) - (18,919) (70,752) -
Leverage exposure 517,909 158,153 25,337 502,635 153,054 23,734
Tier 1 capital 29,656 7,612 6,067 34,734 7,171 5,690
Leverage ratio % 5.7 4.8 23.9 6.9 4.7 24.0
Notes:
(1) Ulster Bank Ireland Limited (UBIL) broadly aligns with the segment Ulster Bank RoI.
(2) Capital Requirements Regulation (CRR) as implemented by the Prudential Regulation Authority in the UK, with effect from 1 January 2014. All regulatory adjustments and deductions to CET1 have been applied in full for both bases with the exception of unrealised gains on AFS securities which have been included from 2015 under the PRA transitional basis.
Appendix 2 Additional capital resources, RWA and leverage information
Key points
The key driver of the movements is the annual phasing-in of the CRR transition rules. The significant investment deduction has increased reflecting an incremental 10% increase in the percentage of significant investments which are treated as a capital deduction and a commensurate 10% decrease in the percentage of significant investments which are treated as risk-weighted assets.
● RBS plc - The impact of the annual phasing-in is a reduction of 80 basis points. Also, CET1 has decreased as a result of the capital injection into NatWest Plc in the
period. RWAs have decreased by £9.7 billion predominantly as a result of the significant investment change referred to above which reduced RWAs by £14.8 billion partly
offset by an increase in counterparty risk RWAs of £3.5 billion.
● NatWest Plc - The impact of the annual phasing-in is a reduction of 50 basis points. Also, CET1 has increased as a result of the capital injection from RBS plc offset by
the impact of the pension payment of £4.2 billion to the Main Scheme, being an accelerated payment of existing committed future contributions. RWAs increased by £2.1
billion driven by the risk parameter recalibration of mortgage PDs and annual recalculation of operational risk RWAs offset by the changed treatment of significant
investments referred to above.
● UBIL - CET1 ratio has increased to 29.8% in the period. RWAs have decreased from E26.2 billion to E25.7 billion as a result of reduced exposures and risk parameter
improvements. In sterling terms, RWAs have increased by £1.1 billion as a result of the appreciation of the euro against sterling.
This information is provided by RNS
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