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    REG - Royal Bk Scot.Grp. - RBS February 2016 Restatement <Origin Href="QuoteRef">RBS.L</Origin> - Part 1

    Picture of Natwest logoNatwestAnnouncement
    04/02/2016 16:10
    RNS Number : 1397O
    Royal Bank of Scotland Group PLC
    04 February 2016
    The Royal Bank of Scotland Group plc 
    Restatement 
    Document
    February 2016
    Contents
    Page
    Introduction
    1
    Customer segments
    4
    Appendix 1 Financial statement reconciliations
    Financial statement reconciliations
    11
    Appendix 2 Components of customer segments
    Operating profit/(loss) by segment
    17
    UK PBB
    18
    Ulster Bank RoI
    21
    Commercial Banking
    24
    Private Banking
    27
    RBS International
    30
    Corporate & Institutional Banking
    33
    Capital Resolution
    36
    Williams & Glyn
    39
    Appendix 3 Allocation of previous segments to new customer segments
    Introduction
    43
    UK PBB
    44
    Ulster Bank
    47
    Commercial Banking
    50
    Private Banking
    53
    Corporate & Institutional Banking
    56
    RCR
    59
    Central items & other
    62
    Forward-looking statements
    Certain sections in this document contain 'forward-looking statements' as that term is defined in the United States Private Securities Litigation Reform Act of 1995, such as statements that include the words 'expect', 'estimate', 'project', 'anticipate', 'believes', 'should', 'intend', 'plan', 'could', 'probability', 'risk', 'target', 'goal', 'objective', 'will', 'endeavour', 'outlook', 'optimistic', 'prospects' and similar expressions or variations on such expressions. These statements concern or may affect future matters, such as RBS's future economic results, business plans and current strategies. Forward-looking statements are subject to a number of risks and uncertainties that might cause actual results and performance to differ materially from any expected future results or performance expressed or implied by the forward-looking statements. Factors that could cause or contribute to differences in current expectations include, but are not limited to, legislative, fiscal and regulatory developments, accounting standards, competitive conditions, technological developments, exchange rate fluctuations and general economic conditions. These and other factors, risks and uncertainties that may impact any forward-looking statement or RBS's actual results are discussed in RBS's 2015 Annual Report and Accounts (ARA). The forward-looking statements contained in this document speak only as at the date hereof, and RBS does not assume or undertake any obligation or responsibility to update any forward-looking statement to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
    The Royal Bank of Scotland Group plc (RBS)
    Business reorganisation and reporting changes
    This announcement sets out changes to RBS's financial reporting: a change in accounting policy for pensions; revised operating segments; and changes in results presentation. The announcement contains restated financial results for the year ended 31 December 2014 and, to aid comparison of RBS's fourth quarter 2015 results with prior periods, restated financial information for the quarters ended 30 September 2015 and 31 December 2014. 
    Pension accounting policy
    In light of developments during 2015, in particular publication by the International Accounting Standards Board of its exposure draft of amendments to IFRIC 14 'IAS 19 - The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction', RBS has revised its accounting policy for determining whether or not it has an unconditional right to a refund of surpluses in its employee pension funds. Previously, where trustees have the power to use a scheme surplus to enhance benefits for members, RBS did not regard such power, in and of itself, as undermining the bank's unconditional legal right to a refund of a surplus existing at that point in time. Under the new policy, where RBS has a right to a refund, this is no longer regarded as unconditional if pension fund trustees can use a scheme surplus to enhance benefits for plan members. As a result of this policy change, a minimum funding requirement to cover an existing shortfall in a scheme may give rise to an additional liability and surpluses may not be recognised in full. The accounting policy change is being applied retrospectively and comparatives restated. 
    Segmental reorganisation 
    RBS continues to deliver on its plan to build a stronger, simpler and fairer bank for both customers and shareholders. To support this and reflect the progress made, the previously reported operating segments will now realign as follows:
    Personal & Business Banking (PBB) comprises two reportable segments:
     UK PBB serves individuals and mass affluent customers in the UK together with small businesses (generally up to 2 million turnover). UK PBB includes Ulster Bank customers in Northern Ireland.
     Ulster Bank RoI serves individuals and businesses in the Republic of Ireland (RoI).
    Commercial & Private Banking (CPB) comprises three reportable segments:
     Commercial Banking serves commercial and mid-corporate customers in the UK.
     Private Banking serves high net worth individuals in the UK.
     RBS International (RBSI) serves retail, commercial, corporate and financial institution customers in Jersey, Guernsey, Isle of Man and Gibraltar.
    Corporate & Institutional Banking (CIB) serves UK and western European customers, both corporates and financial institutions, supported by trading and distribution platforms in the UK, US and Singapore.
    Capital Resolution includes CIB Capital Resolution and the remainder of RBS Capital Resolution (RCR). 
    Williams & Glyn (W&G) comprises RBS England and Wales branch-based businesses, along with certain small and medium enterprises and corporate activities across the UK.
    Central items& other includes corporate functions, such as treasury, finance, risk management, compliance, legal, communications and human resources. Central functions manages RBS capital resources and RBS-wide regulatory projects and provides services to the reportable segments. Balances in relation to Citizens and the international private banking business are included in Central items in the relevant periods.

    The Royal Bank of Scotland Group plc (RBS)
    Reporting changes 
    In line with RBS's strategy to be a simpler bank the following reporting changes have been implemented in relation to the presentation of the results.
    One-off and other items
    The following items were previously reported separately after operating profit; they are now reported within operating profit: 
    Own credit adjustments;
    Gain/(loss) on redemption of own debt;
    Write-down of goodwill;
    Strategic disposals; and
    RFS Holdings minority interest (RFS MI) (restated for periods up to and including Q4 2014 only; this has been reported within operating profit since Q1 2015).
    Own credit adjustments are included within segmental results in CIB, Capital Resolution and Central items (Treasury) in line with where the related liabilities are recorded. The non-statutory results will continue to show these items and restructuring costs and litigation and conduct costs as separate line items within the relevant caption of the income statement where significant.
    Allocation of central balance sheet items
    RBS allocates all central costs relating to Services and Functions to the business using appropriate drivers; these are reported as indirect costs in the segmental income statements. However, previously central balance sheet items have not been allocated. The assets (and risk-weighted assets) held centrally, mainly relating to Treasury, are now allocated to the business using appropriate drivers.
    Revised treasury allocations
    Treasury allocations which are included within segmental net interest income and segmental net interest margins, have been revised to reflect the following: 
    In preparation for the separation of W&G, the element of treasury allocations previously charged to UK PBB is now retained centrally.
    To reflect the impact of changes to the notional equity allocation detailed below.
    Revised segmental return on equity 
    RBS's CET 1 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 11% (Commercial Banking and Ulster Bank RoI), 12% (RBS International) and 15% for all other segments, of the monthly average of segmental risk-weighted assets after capital deductions (RWAes). This notional equity was previously 13% for all segments. In addition, due to changes in UK tax rules enacted in the Finance Act 2015, RBS has increased its longer-term effective 31 December tax rate. The notional tax rate used in the segmental ROE has been revised from 25% to 28% (Ulster Bank RoI - 15%; RBS International - 10%). RBS's forward planning tax rate is 26%.

    The Royal Bank of Scotland Group plc (RBS)
    Annual results 2015
    RBS's results for the year ended 31 December 2015 will be announced on Friday 26 February 2016. These results will be reported on the new structure and reporting basis as described above. 
    In conjunction with this Restatement Document, a financial supplement showing restated financial information for the last nine quarters will be available at http://www.rbs.com/ir
    Document roadmap 
    Pages 17 to 41 show the income statement, balance sheet line items and key metrics for the new reportable segments. These reflect the re-presentation of certain items that were previously reported below operating profit. 
    Appendix 1 reconciles the previously published non-statutory consolidated income statement to the re-presented position and the previously published statutory consolidated income statement, consolidated statement of comprehensive income and consolidated balance sheet to the restated position. The Common Equity Tier 1 capital position and RWAs will not be restated but an illustration of the impact on the metrics of the items, discussed under 'Pension accounting policy' and 'Reporting changes' is also included on pages 1 and 2.
    Appendix 2 summarises the performance of each of the new reportable segments and shows how the previously reported segments have been allocated to the new reportable segments as well as the adjustments to the new reporting basis. These tables include the income statement, key metrics (e.g. ROE, net interest margin including and excluding central interest-earning assets (IEAs), cost:income ratio) and balance sheet line items.
    Appendix 3 shows the adjustments to the previously reported segment results to the new reporting basis and how these segments have been allocated to the new reportable segments. These tables include certain key metrics and balance sheet line items.
    For further information contact:
    Richard O'Connor 
    Head of Investor Relations
    + 44 (0)20 7672 1758
    Group Media Centre
    +44 (0) 131 523 4205
    Customer segments
    Total RBS
    Quarter ended 30 September 2015
    PBB
    CPB
    Ulster Bank
    Commercial 
    Private
    RBS
    Capital 
    Central items
    Total
    UK PBB
    RoI
    Banking
    Banking
    International
    CIB
    Resolution 
    W&G
    & other (1)
    RBS
    Income statement 
    m
    m
    m
    m
    m
    m
    m 
    m
    m
    m
    Net interest income
    1,055
    90
    504
    109
    73
    29
    78
    167
    82
    2,187
    Non-interest income
    258
    74
    296
    51
    14
    299
    (27)
    44
    (149)
    860
    Own credit adjustments
    -
    -
    -
    -
    -
    78
    38
    -
    20
    136
    Total income
    1,313
    164
    800
    160
    87
    406
    89
    211
    (47)
    3,183
    Direct expenses
     - staff
    (202)
    (40)
    (117)
    (43)
    (9)
    (97)
    (60)
    (55)
    (658)
    (1,281)
     - other
    (68)
    (22)
    (20)
    (11)
    (3)
    (19)
    (41)
    (12)
    (789)
    (985)
     - operating lease costs
    -
    -
    (34)
    -
    -
    -
    -
    -
    -
    (34)
    Indirect expenses
    (464)
    (48)
    (238)
    (65)
    (24)
    (242)
    (245)
    (24)
    1,350
    -
    Restructuring costs
     - direct
    (5)
    (3)
    (1)
    2
    -
    (3)
    (190)
    -
    (647)
    (847)
     - indirect
    (23)
    (2)
    2
    (1)
    (2)
    (148)
    (300)
    -
    474
    -
    Litigation and conduct costs
    -
    -
    -
    -
    -
    (6)
    (101)
    -
    (22)
    (129)
    Operating expenses
    (762)
    (115)
    (408)
    (118)
    (38)
    (515)
    (937)
    (91)
    (292)
    (3,276)
    Operating profit/(loss) before impairment (losses)/releases
    551
    49
    392
    42
    49
    (109)
    (848)
    120
    (339)
    (93)
    Impairment (losses)/releases
    (2)
    54
    (16)
    (4)
    1
    -
    50
    (5)
    1
    79
    Operating profit/(loss)
    549
    103
    376
    38
    50
    (109)
    (798)
    115
    (338)
    (14)
    Memo:
    Profit attributable to ordinary shareholders (2)
    940
    Total income - adjusted (3)
    1,313
    164
    800
    160
    87
    328
    51
    211
    (67)
    3,047
    Operating expenses - adjusted (4)
    (734)
    (110)
    (409)
    (119)
    (36)
    (358)
    (346)
    (91)
    (97)
    (2,300)
    Operating profit/(loss) - adjusted (3,4)
    577
    108
    375
    37
    52
    (30)
    (245)
    115
    (163)
    826
    For the notes to this table refer to the following page.

    Customer segments 
    30 September 2015
    PBB
    CPB
    Ulster Bank
    Commercial
    Private
    RBS
    Capital
    Central items
    Total
    Key metrics
    UK PBB
    RoI
    Banking
    Banking
    International
    CIB
    Resolution 
    W&G
    & other (1)
    RBS
    Return on equity (5)
    27.2%
    16.7%
    12.3%
    7.4%
    18.0%
    (6.4%)
    nm
    nm
    nm
    9.0%
    Return on equity - adjusted (3,4,5)
    28.7%
    17.5%
    12.3%
    7.1%
    18.8%
    (2.7%)
    nm
    nm
    nm
    16.2%
    Net interest margin
    3.19%
    1.52%
    1.89%
    2.72%
    1.43%
    0.62%
    0.60%
    2.88%
    nm
    2.09%
    Net interest margin excluding central IEAs
    3.60%
    1.52%
    2.68%
    3.92%
    4.38%
    0.78%
    0.70%
    3.40%
    nm
    2.09%
    Cost:income ratio
    58%
    70%
    51%
    74%
    44%
    127%
    nm
    43%
    nm
    103%
    Cost:income ratio - adjusted (3,4)
    56%
    67%
    51%
    74%
    41%
    109%
    nm
    43%
    nm
    75%
    Loan impairment charge as a % of gross loans and advances
    -
    (1.2%)
    0.1%
    0.1%
    (0.1%)
    -
    (0.5%)
    0.1%
    nm
    (0.1%)
    Capital and balance sheet (6)
    bn
    bn
    bn
    bn
    bn
    bn
    bn
    bn
    bn
    bn
    Loans and advances to customers (gross)
    118.3
    18.8
    89.8
    11.1
    7.1
    19.8
    34.8
    20.3
    3.0
    323.0
    Loan impairment provisions
    (2.0)
    (2.0)
    (0.7)
    -
    (0.1)
    -
    (4.0)
    (0.3)
    (0.2)
    (9.3)
    Net loans and advances to customers
    116.3
    16.8
    89.1
    11.1
    7.0
    19.8
    30.8
    20.0
    2.8
    313.7
    Funded assets
    140.7
    22.9
    129.6
    17.4
    22.9
    125.9
    66.0
    24.0
    31.3
    580.7
    Risk elements in lending
    2.9
    3.6
    2.1
    0.1
    0.1
    -
    5.3
    0.5
    -
    14.6
    Customer deposits (excluding repos)
    134.9
    13.6
    89.4
    22.7
    22.3
    5.9
    30.0
    23.6
    10.1
    352.5
    Loan:deposit ratio (excluding repos)
    86%
    123%
    100%
    49%
    32%
    337%
    nm
    85%
    nm
    89%
    Provision coverage (7)
    67%
    54%
    33%
    32%
    58%
    -
    76%
    59%
    nm
    63%
    Risk-weighted assets 
    33.3
    19.6
    64.2
    8.4
    8.1
    38.8
    59.7
    10.1
    73.8
    316.0
    nm = not meaningful
    Notes:
    (1)
    Central items includes unallocated costs and assets which principally comprise volatile items under IFRS and balances in relation to Citizens and international private banking.
    (2) 
    (3)
    Refer to Appendix 1 for reconciliations of restated operating profit/(loss) to profit/(loss) attributable to ordinary shareholders.
    Excluding own credit adjustments, gain on redemption of own debt and strategic disposals.
    (4)
    Excluding restructuring costs and litigation and conduct costs and write-down of goodwill.
    (5) 
    RBS's CET 1 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 11% (Commercial Banking and Ulster Bank RoI), 12% (RBS International) and 15% for all other segments, of the monthly average of segmental risk-weighted assets after capital deductions (RWAes). This notional equity was previously 13% for all segments. In addition, due to changes in UK tax rules enacted in the Finance Act 2015, RBS has increased its longer-term effective 31 December tax rate. The notional tax rate used in the segmental ROE has been revised from 25% to 28% (Ulster Bank RoI - 15%; RBS International - 10%). RBS's forward planning tax rate is 26%.
    (6) 
    Including disposal groups.
    (7)
    Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.

    Customer segments
    Total RBS
    Quarter ended 31 December 2014
    PBB
    CPB
    Ulster Bank
    Commercial 
    Private
    RBS
    Capital 
    Central items 
    Total
    UK PBB
    RoI
    Banking
    Banking
    International
    CIB
    Resolution 
    W&G
    & other (1)
    RBS
    Income statement 
    m
    m
    m
    m
    m
    m
    m 
    m
    m
    m
    Net interest income
    1,086
    112
    506
    116
    83
    8
    162
    167
    142
    2,382
    Non-interest income
    288
    40
    343
    54
    18
    248
    37
    49
    (350)
    727
    Own credit adjustments
    -
    -
    -
    -
    -
    (33)
    (50)
    -
    (61)
    (144)
    Total income
    1,374
    152
    849
    170
    101
    223
    149
    216
    (269)
    2,965
    Direct expenses
     - staff
    (205)
    (43)
    (115)
    (44)
    (11)
    (36)
    (66)
    (49)
    (623)
    (1,192)
     - other
    (72)
    (23)
    (35)
    (12)
    (2)
    (47)
    (80)
    (10)
    (1,101)
    (1,382)
     - operating lease costs
    -
    -
    (38)
    -
    -
    -
    -
    -
    -
    (38)
    Indirect expenses
    (548)
    (53)
    (319)
    (90)
    (23)
    (293)
    (344)
    (25)
    1,695
    -
    Restructuring costs
     - direct
    (2)
    -
    (1)
    (1)
    -
    (3)
    (46)
    -
    (489)
    (542)
     - indirect
    (14)
    2
    (16)
    -
    (2)
    (16)
    (22)
    -
    68
    -
    Litigation and conduct costs
    (650)
    19
    (62)
    (90)
    -
    (370)
    (12)
    -
    1
    (1,164)
    Operating expenses
    (1,491)
    (98)
    (586)
    (237)
    (38)
    (765)
    (570)
    (84)
    (449)
    (4,318)
    Operating (loss)/profit before impairment releases/(losses)
    (117)
    54
    263
    (67)
    63
    (542)
    (421)
    132
    (718)
    (1,353)
    Impairment releases/(losses)
    2
    70
    (32)
    1
    (3)
    6
    634
    (9)
    1
    670
    Operating (loss)/profit
    (115)
    124
    231
    (66)
    60
    (536)
    213
    123
    (717)
    (683)
    Memo:
    Profit attributable to ordinary shareholders (2)
    (5,791)
    Total income - adjusted (3)
    1,374
    152
    849
    170
    101
    256
    199
    216
    (208)
    3,109
    Operating expenses - adjusted (4)
    (825)
    (119)
    (507)
    (146)
    (36)
    (376)
    (490)
    (84)
    (29)
    (2,612)
    Operating profit/(loss) - adjusted (3,4)
    551
    103
    310
    25
    62
    (114)
    343
    123
    (236)
    1,167
    For the notes to this table refer to page 5.

    Customer segments 
    31 December 2014
    PBB
    CPB
    Ulster Bank
    Commercial
    Private
    RBS
    Capital
    Central items
    Total
    Key metrics
    UK PBB
    RoI
    Banking
    Banking
    International
    CIB
    Resolution 
    W&G
    & other (1)
    RBS
    Return on equity (5)
    (7.0%)
    19.8%
    7.0%
    (15.8%)
    24.7%
    (23.3%)
    nm
    nm
    nm
    (51.1%)
    Return on equity - adjusted (3,4,5)
    25.5%
    16.4%
    9.9%
    3.7%
    25.6%
    (5.9%)
    nm
    nm
    nm
    (38.4%)
    Net interest margin
    3.37%
    1.90%
    1.96%
    2.91%
    1.67%
    0.21%
    0.71%
    2.92%
    nm
    2.23%
    Net interest margin excluding central IEAs 
    3.80%
    1.90%
    2.79%
    4.17%
    4.76%
    0.16%
    0.77%
    3.42%
    nm
    2.23%
    Cost:income ratio
    109%
    64%
    69%
    139%
    38%
    343%
    nm
    39%
    nm
    146%
    Cost:income ratio - adjusted (3,4)
    60%
    78%
    60%
    86%
    36%
    147%
    nm
    39%
    nm
    84%
    Loan impairment charge as a % of gross loans and advances
    -
    (1.4%)
    0.1%
    -
    0.2%
    (0.1%)
    (4.0%)
    0.2%
    nm
    (0.8%)
    Capital and balance sheet (6)
    bn
    bn
    bn
    bn
    bn
    bn
    bn
    bn
    bn
    bn
    Loans and advances to customers (gross)
    114.1
    20.5
    85.8
    11.0
    7.3
    26.5
    64.0
    19.9
    63.7
    412.8
    Loan impairment provisions
    (2.5)
    (2.4)
    (0.9)
    -
    (0.1)
    -
    (11.1)
    (0.4)
    (0.6)
    (18.0)
    Net loans and advances to customers
    111.6
    18.1
    84.9
    11.0
    7.2
    26.5
    52.9
    19.5
    63.1
    394.8
    Funded assets
    137.8
    22.4
    127.9
    17.7
    23.4
    137.7
    115.6
    23.6
    90.9
    697.0
    Risk elements in lending
    3.6
    4.4
    2.4
    0.1
    0.2
    -
    15.6
    0.6
    1.3
    28.2
    Customer deposits (excluding repos)
    132.6
    14.7
    84.9
    22.3
    20.8
    11.8
    36.4
    22.0
    69.4
    414.9
    Loan:deposit ratio (excluding repos)
    84%
    124%
    100%
    49%
    35%
    226%
    nm
    88%
    nm
    95%
    Provision coverage (7)
    69%
    55%
    39%
    25%
    27%
    -
    71%
    61%
    nm
    64%
    Risk-weighted assets
    36.6
    21.8
    63.2
    8.7
    7.5
    41.9
    95.1
    10.1
    71.0
    355.9
    For the notes to this table refer to page 5.

    Customer segments 
    Total RBS
    Year ended 31 December 2014
    PBB
    CPB
    Ulster Bank
    Commercial 
    Private
    RBS
    Capital 
    Central items
    Total
    UK PBB
    RoI
    Banking
    Banking
    International
    CIB 
    Resolution 
    W&G
    & other (1)
    RBS
    Income statement 
    m
    m
    m
    m
    m
    m
    m 
    m
    m
    m
    Net interest income
    4,221
    467
    1,976
    454
    323
    (11)
    673
    664
    491
    9,258
    Non-interest income
    1,223
    137
    1,329
    235
    68
    1,951
    1,155
    188
    (459)
    5,827
    Own credit adjustments
    -
    -
    -
    -
    -
    (9)
    (36)
    -
    (101)
    (146)
    Gain on redemption of own debt
    -
    -
    -
    -
    -
    -
    -
    -
    20
    20
    Strategic disposals
    -
    -
    -
    -
    -
    -
    -
    -
    191
    191
    Total income
    5,444
    604
    3,305
    689
    391
    1,931
    1,792
    852
    142
    15,150
    Direct expenses
     - staff
    (824)
    (164)
    (495)
    (178)
    (44)
    (446)
    (444)
    (196)
    (2,585)
    (5,376)
     - other
    (346)
    (83)
    (100)
    (37)
    (15)
    (190)
    (293)
    (36)
    (3,764)
    (4,864)
     - operating lease costs
    -
    -
    (141)
    -
    -
    -
    -
    -
    -
    (141)
    Indirect expenses
    (1,958)
    (180)
    (1,008)
    (289)
    (94)
    (1,080)
    (1,283)
    (98)
    5,990
    -
    Restructuring costs
     - direct
    (10)
    8
    (41)
    (1)
    (2)
    (13)
    (80)
    -
    (1,015)
    (1,154)
     - indirect
    (101)
    (21)
    (67)
    -
    (5)
    (89)
    (105)
    -
    388
    -
    Litigation and conduct costs
    (918)
    19
    (112)
    (90)
    -
    (832)
    (162)
    -
    (99)
    (2,194)
    Write-down of goodwill
    -
    -
    -
    -
    -
    -
    (130)
    -
    -
    (130)
    Operating expenses
    (4,157)
    (421)
    (1,964)
    (595)
    (160)
    (2,650)
    (2,497)
    (330)
    (1,085)
    (13,859)
    Operating profit/(loss) before impairment (losses)/releases
    1,287
    183
    1,341
    94
    231
    (719)
    (705)
    522
    (943)
    1,291
    Impairment (losses)/releases
    (154)
    306
    (85)
    5
    7
    9
    1,307
    (55)
    12
    1,352
    Operating profit/(loss)
    1,133
    489
    1,256
    99
    238
    (710)
    602
    467
    (931)
    2,643
    Memo:
    Profit attributable to ordinary shareholders (2)
    (3,470)
    Total income - adjusted (3)
    5,444
    604
    3,305
    689
    391
    1,940
    1,828
    852
    32
    15,085
    Operating expenses - adjusted (4)
    (3,128)
    (427)
    (1,744)
    (504)
    (153)
    (1,716)
    (2,020)
    (330)
    (359)
    (10,381)
    Operating profit/(loss) - adjusted (3,4)
    2,162
    483
    1,476
    190
    245
    233
    1,115
    467
    (315)
    6,056
    For the notes to this table refer to page 5.

    Customer segments
    31 December 2014
    PBB
    CPB
    Ulster Bank
    Commercial
    Private
    RBS
    Capital
    Central items
    Total
    Key metrics
    UK PBB
    RoI
    Banking
    Banking
    International
    CIB 
    Resolution 
    W&G
    & other (1)
    RBS
    Return on equity (5)
    11.9%
    18.6%
    10.2%
    4.1%
    24.2%
    (7.9%)
    nm
    nm
    nm
    (8.2%)
    Return on equity - adjusted (3,4,5)
    23.7%
    18.4%
    12.2%
    9.1%
    24.9%
    1.3%
    nm
    nm
    nm
    (1.3%)
    Net interest margin
    3.32%
    1.92%
    1.91%
    2.89%
    1.65%
    (0.07%)
    0.67%
    2.93%
    nm
    2.13%
    Net interest margin excluding central IEAs
    3.75%
    1.99%
    2.74%
    4.12%
    4.83%
    (0.06%)
    0.72%
    3.42%
    nm
    2.13%
    Cost:income ratio
    76%
    70%
    59%
    86%
    41%
    137%
    nm
    39%
    nm
    91%
    Cost:income ratio - adjusted (3,4)
    57%
    71%
    53%
    73%
    39%
    88%
    nm
    39%
    nm
    69%
    Loan impairment charge as a % of gross loans and advances
    0.1%
    (1.5%)
    0.1%
    -
    (0.1%)
    -
    (2.0%)
    0.3%
    nm
    (0.4%)
    Capital and balance sheet (6)
    bn
    bn
    bn
    bn
    bn
    bn
    bn
    bn
    bn
    bn
    Loans and advances to customers (gross) 
    114.1
    20.5
    85.8
    11.0
    7.3
    26.5
    64.0
    19.9
    63.7
    412.8
    Loan impairment provisions
    (2.5)
    (2.4)
    (0.9)
    -
    (0.1)
    -
    (11.1)
    (0.4)
    (0.6)
    (18.0)
    Net loans and advances to customers
    111.6
    18.1
    84.9
    11.0
    7.2
    26.5
    52.9
    19.5
    63.1
    394.8
    Funded assets
    137.8
    22.4
    127.9
    17.7
    23.4
    137.7
    115.6
    23.6
    90.9
    697.0
    Risk elements in lending
    3.6
    4.4
    2.4
    0.1
    0.2
    -
    15.6
    0.6
    1.3
    28.2
    Customer deposits (excluding repos)
    132.6
    14.7
    84.9
    22.3
    20.8
    11.8
    36.4
    22.0
    69.4
    414.9
    Loan:deposit ratio (excluding repos)
    84%
    124%
    100%
    49%
    35%
    226%
    nm
    88%
    nm
    95%
    Provision coverage (7)
    69%
    55%
    39%
    25%
    27%
    -
    71%
    61%
    nm
    64%
    Risk-weighted assets
    36.6
    21.8
    63.2
    8.7
    7.5
    41.9
    95.1
    10.1
    71.0
    355.9
    nm= not meaningful
    For the notes to this table refer to page 5.
    Appendix 1
    Financial statement
    reconciliations
    Consolidated income statement reconciliation for the quarter ended 30 September 2015
    As
    Pension
    Re-presentation
    previously
    accounting
    of one-off and 
    Non-
    Presentational 
    Restated
    reported
    policy impact
    other items
    statutory
    adjustments (1)
    statutory
    m
    m
    m
    m 
    m 
    m 
    Interest receivable
    2,963
    -
    -
    2,963
    -
    2,963
    Interest payable
    (776)
    -
    -
    (776)
    -
    (776)
    Net interest income
    2,187
    -
    -
    2,187
    -
    2,187
    Fees and commissions receivable
    880
    -
    -
    880
    -
    880
    Fees and commissions payable
    (195)
    -
    -
    (195)
    -
    (195)
    Income from trading activities
    82
    -
    -
    82
    88
    170
    Own credit adjustments
    -
    -
    136
    136
    (136)
    -
    Other operating income
    93
    -
    -
    93
    48
    141
    Non-interest income 
    860
    -
    136
    996
    -
    996
    Total income
    3,047
    -
    136
    3,183
    -
    3,183
    Staff costs
    (1,265)
    (16)
    -
    (1,281)
    (281)
    (1,562)
    Premises and equipment
    (352)
    -
    -
    (352)
    (283)
    (635)
    Other administrative expenses
    (477)
    -
    -
    (477)
    (253)
    (730)
    Depreciation and amortisation
    (190)
    -
    -
    (190)
    (92)
    (282)
    Restructuring costs
    (847)
    -
    -
    (847)
    847
    -
    Litigation and conduct costs
    (129)
    -
    -
    (129)
    129
    -
    Write-down of goodwill and other intangible assets
    -
    -
    -
    -
    (67)
    (67)
    Operating expenses
    (3,260)
    (16)
    -
    (3,276)
    -
    (3,276)
    Loss before impairment releases
    (213)
    (16)
    136
    (93)
    -
    (93)
    Impairment releases
    79
    -
    -
    79
    -
    79
    Operating loss
    (134)
    (16)
    136
    (14)
    -
    (14)
    Own credit adjustments
    136
    -
    (136)
    -
    -
    -
    Profit/(loss) before tax
    2
    (16)
    -
    (14)
    -
    (14)
    Tax (charge)/credit
    (1)
    4
    -
    3
    -
    3
    Profit from continuing operations
    1
    (12)
    -
    (11)
    -
    (11)
    Profit from discontinued operations, net of tax
    1,093
    -
    -
    1,093
    -
    1,093
    Profit for the period
    1,094
    (12)
    -
    1,082
    -
    1,082
    Non-controlling interests
    (45)
    -
    -
    (45)
    -
    (45)
    Preference share and other dividends
    (97)
    -
    -
    (97)
    -
    (97)
    Profit attributable to ordinary shareholders
    952
    (12)
    -
    940
    -
    940
    Note:
    (1)
    Reallocation of separately reported one-off items to the statutory income and operating expense lines.

    Consolidated income statement reconciliation for the quarter ended 31 December 2014
    Re-presentation
    As previously
    of one-off and 
    Non-
    Presentational 
    reported
    other items
    statutory
    adjustments (1)
    Statutory 
    m
    m
    m 
    m 
    m 
    Interest receivable
    3,238
    -
    3,238
    -
    3,238
    Interest payable
    (856)
    -
    (856)
    -
    (856)
    Net interest income
    2,382
    -
    2,382
    -
    2,382
    Fees and commissions receivable
    1,055
    -
    1,055
    -
    1,055
    Fees and commissions payable
    (204)
    -
    (204)
    -
    (204)
    Income from trading activities
    (319)
    -
    (319)
    (84)
    (403)
    Own credit adjustments
    -
    (144)
    (144)
    144
    -
    Other operating income
    182
    13
    195
    (60)
    135
    Non-interest income 
    714
    (131)
    583
    -
    583
    Total income
    3,096
    (131)
    2,965
    -
    2,965
    Staff costs
    (1,192)
    -
    (1,192)
    (133)
    (1,325)
    Premises and equipment
    (452)
    -
    (452)
    (28)
    (480)
    Other administrative expenses
    (699)
    (2)
    (701)
    (1,298)
    (1,999)
    Depreciation and amortisation
    (203)
    -
    (203)
    -
    (203)
    Restructuring costs
    (542)
    -
    (542)
    542
    -
    Litigation and conduct costs
    (1,164)
    -
    (1,164)
    1,164
    -
    Write-down of goodwill and other intangible assets
    -
    -
    -
    (311)
    (311)
    Write-down of other intangible assets
    (64)
    -
    (64)
    64
    -
    Operating expenses
    (4,316)
    (2)
    (4,318)
    -
    (4,318)
    Loss before impairment releases
    (1,220)
    (133)
    (1,353)
    -
    (1,353)
    Impairment releases
    670
    -
    670
    -
    670
    Operating loss
    (550)
    (133)
    (683)
    -
    (683)
    Own credit adjustments
    (144)
    144
    -
    -
    -
    RFS MI
    11
    (11)
    -
    -
    -
    Loss before tax
    (683)
    -
    (683)
    -
    (683)
    Tax charge
    (1,040)
    -
    (1,040)
    -
    (1,040)
    Loss from continuing operations
    (1,723)
    -
    (1,723)
    -
    (1,723)
    Loss from discontinued operations, net of tax
    (3,882)
    -
    (3,882)
    -
    (3,882)
    Loss for the period
    (5,605)
    -
    (5,605)
    -
    (5,605)
    Non-controlling interests
    (71)
    -
    (71)
    -
    (71)
    Preference share and other dividends
    (115)
    -
    (115)
    -
    (115)
    Loss attributable to ordinary shareholders
    (5,791)
    -
    (5,791)
    -
    (5,791)
    Note:
    (1)
    Reallocation of separately reported one-off items to the statutory income and operating expense lines.

    Consolidated income statement reconciliation for the year ended 31 December 2014
    Re-presentation
    As previously
    of one-off and 
    Non-
    Presentational 
    reported
    other items
    statutory
    adjustments (1)
    Statutory 
    m
    m
    m 
    m 
    m 
    Interest receivable
    13,079
    -
    13,079
    -
    13,079
    Interest payable
    (3,818)
    (3)
    (3,821)
    -
    (3,821)
    Net interest income
    9,261
    (3)
    9,258
    -
    9,258
    Fees and commissions receivable
    4,414
    -
    4,414
    -
    4,414
    Fees and commissions payable
    (875)
    -
    (875)
    -
    (875)
    Income from trading activities
    1,325
    -
    1,325
    (40)
    1,285
    Own credit adjustments
    -
    (146)
    (146)
    146
    -
    Gain on redemption of own debt
    -
    20
    20
    -
    20
    Strategic disposals
    -
    191
    191
    (191)
    -
    Other operating income
    981
    (18)
    963
    85
    1,048
    Non-interest income 
    5,845
    47
    5,892
    -
    5,892
    Total income
    15,106
    44
    15,150
    -
    15,150
    Staff costs
    (5,376)
    -
    (5,376)
    (381)
    (5,757)
    Premises and equipment
    (1,812)
    -
    (1,812)
    (269)
    (2,081)
    Other administrative expenses
    (2,117)
    (3)
    (2,120)
    (2,448)
    (4,568)
    Depreciation and amortisation
    (927)
    -
    (927)
    (3)
    (930)
    Restructuring costs
    (1,154)
    -
    (1,154)
    1,154
    -
    Litigation and conduct costs
    (2,194)
    -
    (2,194)
    2,194
    -
    Write-down of goodwill and other intangible assets
    -
    -
    -
    (523)
    (523)
    Write-down of other intangible assets
    (146)
    -
    (146)
    146
    -
    Write-down of goodwill
    -
    (130)
    (130)
    130
    -
    Operating expenses
    (13,726)
    (133)
    (13,859)
    -
    (13,859)
    Profit before impairment releases
    1,380
    (89)
    1,291
    -
    1,291
    Impairment releases
    1,352
    -
    1,352
    -
    1,352
    Operating profit
    2,732
    (89)
    2,643
    -
    2,643
    Own credit adjustments
    (146)
    146
    -
    -
    -
    Gain on redemption of own debt
    20
    (20)
    -
    -
    -
    Strategic disposals
    191
    (191)
    -
    -
    -
    Write-down of goodwill
    (130)
    130
    -
    -
    -
    RFS MI
    (24)
    24
    -
    -
    -
    Profit before tax
    2,643
    -
    2,643
    -
    2,643
    Tax charge
    (1,909)
    -
    (1,909)
    -
    (1,909)
    Profit from continuing operations
    734
    -
    734
    -
    734
    Loss from discontinued operations, net of tax
    (3,445)
    -
    (3,445)
    -
    (3,445)
    Loss for the period
    (2,711)
    -
    (2,711)
    -
    (2,711)
    Non-controlling interests
    (60)
    -
    (60)
    -
    (60)
    Preference share and other dividends
    (699)
    -
    (699)
    -
    (699)
    Loss attributable to ordinary shareholders
    (3,470)
    -
    (3,470)
    -
    (3,470)
    Note:
    (1)
    Reallocation of separately reported one-off items to the statutory income and operating expense lines.

    Consolidated statement of comprehensive income
    As
    Pension
    previously
    accounting
    reported
    policy impact
    Restated
    Consolidated statement of comprehensive income
    m
    m
    m 
    Quarter ended 30 September 2015 
    Profit for the period
    1,094
    (12)
    1,082
    Gain resulting from changes in additional liability due to minimum funding requirements (1)
     - gross
    -
    3
    3
     - tax
    -
    (1)
    (1)
    Total comprehensive income for the period
    810
    (10)
    800
    Nine months ended 30 September 2015 
    Profit for the period
    1,452
    (38)
    1,414
    Gain resulting from changes in additional liability due to minimum funding requirements (1)
     - gross
    -
    20
    20
     - tax
    -
    (4)
    (4)
    Total comprehensive loss for the period
    (16)
    (22)
    (38)
    Quarter ended 30 June 2015 
    Profit for the period
    814
    (13)
    801
    Gain resulting from changes in additional liability due to minimum funding requirements (1)
     - gross
    -
    14
    14
     - tax
    -
    (3)
    (3)
    Total comprehensive loss for the period
    (605)
    (2)
    (607)
    Half year ended 30 June 2015 
    Profit for the period
    358
    (26)
    332
    Gain resulting from changes in additional liability due to minimum funding requirements (1)
     - gross
    -
    17
    17
     - tax
    -
    (3)
    (3)
    Total comprehensive loss for the period
    (826)
    (12)
    (838)
    Quarter ended 31 December 2014
    Loss resulting from changes in additional liability due to minimum funding requirements (1)
     - gross
    -
    (78)
    (78)
     - tax
    -
    16
    16
    Total comprehensive loss for the period
    (4,432)
    (62)
    (4,494)
    Year ended 31 December 2014 
    Loss resulting from changes in additional liability due to minimum funding requirements (1)
     - gross
    -
    (1,749)
    (1,749)
     - tax
    -
    350
    350
    Total comprehensive loss for the year
    (783)
    (1,399)
    (2,182)
    Note:
    (1)
    Included in items that do not qualify for reclassification.

    Consolidated balance sheet and capital reconciliation
    Statutory
    As
    Pension
    previously
    accounting
    reported
    policy impact
    Restated
    Balance sheet
    m
    m
    m 
    As at 30 September 2015
    Deferred tax assets
    1,434
    377
    1,811
    Prepayments, accrued income and other assets
    4,928
    (119)
    4,809
    Retirement benefit liabilities
    1,955
    1,763
    3,718
    Owners' equity
    51,593
    (1,505)
    50,088
    Tangible net asset value per ordinary share (1)
    384p
    (13p)
    371p
    As at 30 June 2015
    Deferred tax assets
    1,479
    374
    1,853
    Prepayments, accrued income and other assets
    4,829
    (119)
    4,710
    Retirement benefit liabilities
    1,869
    1,750
    3,619
    Owners' equity
    51,117
    (1,495)
    49,622
    Tangible net asset value per ordinary share (1)
    380p
    (13p)
    367p
    As at 31 December 2014
    Deferred tax assets
    1,540
    371
    1,911
    Prepayments, accrued income and other assets
    5,878
    (115)
    5,763
    Retirement benefit liabilities
    2,579
    1,739
    4,318
    Owners' equity
    52,149
    (1,483)
    50,666
    Tangible net asset value per ordinary share (1)
    387p
    (13p)
    374p
    Capital (2)
    bn
    bn
    bn
    As at 30 September 2015
    PRA transitional basis
     - Common Equity Tier 1 capital
    40.2
    (1.4)
    38.8
     - Risk-weighted assets
    316.0
    1.0
    317.0
     - Common Equity Tier 1 ratio
    12.7%
    (50bp)
    12.2%
    End-point CRR basis
     - Common Equity Tier 1 capital
    40.2
    (1.4)
    38.8
     - Risk-weighted assets
    316.0
    1.0
    317.0
     - Common Equity Tier 1 ratio
    12.7%
    (50bp)
    12.2%
    As at 30 June 2015
    PRA transitional basis
     - Common Equity Tier 1 capital
    40.1
    (1.4)
    38.7
     - Risk-weighted assets
    326.0
    1.0
    327.0
     - Common Equity Tier 1 ratio
    12.3%
    (50bp)
    11.8%
    End-point CRR basis
     - Common Equity Tier 1 capital
    40.1
    (1.4)
    38.7
     - Risk-weighted assets
    326.0
    1.0
    327.0
     - Common Equity Tier 1 ratio
    12.3%
    (50bp)
    11.8%
    As at 31 December 2014 
    PRA transitional basis
     - Common Equity Tier 1 capital
    39.6
    (1.4)
    38.2
     - Risk-weighted assets
    356.0
    1.0
    357.0
     - Common Equity Tier 1 ratio
    11.1%
    (40bp)
    10.7%
    End-point CRR basis
     - Common Equity Tier 1 capital
    39.9
    (1.4)
    38.5
     - Risk-weighted assets
    356.0
    1.0
    357.0
     - Common Equity Tier 1 ratio
    11.2%
    (40bp)
    10.8%
    Notes:
    (1)
    Tangible net asset value per ordinary share represents tangible equity divided by the number of ordinary shares in issue.
    (2)
    Provided to illustrate the impact of the pension accounting policy change on future capital balances and ratios, these metrics are not being restated.
    Appendix 2
    Components of customer Segments
    Components of customer segments
    Operating profit/(loss) by segment
    Allocated from
    Adjustment for
    UK
    Ulster
    Commercial
    Private
    reconciling
    PBB
    Bank
    Banking
    Banking
    CIB
    Centre
    RCR 
    items (1)
    Total
    Quarter ended 30 September 2015
    m 
    m 
    m 
    m 
    m 
    m 
    m 
    m 
    m 
    UK PBB
    538
    11
    -
    -
    -
    -
    -
    -
    549
    Ulster Bank RoI
    -
    103
    -
    -
    -
    -
    -
    -
    103
    Commercial Banking
    -
    -
    341
    -
    35
    -
    -
    -
    376
    Private Banking
    -
    -
    -
    38
    -
    -
    -
    -
    38
    RBS International
    -
    -
    50
    -
    -
    -
    -
    -
    50
    CIB 
    -
    -
    -
    -
    (109)
    -
    -
    -
    (109)
    Capital Resolution
    -
    -
    -
    -
    (808)
    26
    (16)
    -
    (798)
    Williams & Glyn
    115
    -
    -
    -
    -
    -
    -
    -
    115
    Central items & other
    -
    -
    -
    (21)
    -
    (317)
    -
    -
    (338)
    Reconciling items (1)
    (15)
    -
    21
    (2)
    (130)
    (10)
    -
    136
    -
    Operating profit/(loss)
    638
    114
    412
    15
    (1,012)
    (301)
    (16)
    136
    (14)
    Quarter ended 31 December 2014
    UK PBB
    (160)
    45
    -
    -
    -
    -
    -
    -
    (115)
    Ulster Bank RoI
    -
    124
    -
    -
    -
    -
    -
    -
    124
    Commercial Banking
    -
    -
    209
    -
    22
    -
    -
    -
    231
    Private Banking
    -
    -
    -
    (66)
    -
    -
    -
    -
    (66)
    RBS International
    -
    -
    39
    21
    -
    -
    -
    -
    60
    CIB 
    -
    -
    -
    -
    (536)
    -
    -
    -
    (536)
    Capital Resolution
    -
    -
    -
    -
    (212)
    27
    398
    -
    213
    Williams & Glyn
    123
    -
    -
    -
    -
    -
    -
    -
    123
    Central items & other
    -
    -
    -
    (14)
    -
    (703)
    -
    -
    (717)
    Reconciling items (1)
    (6)
    -
    -
    -
    83
    56
    -
    (133)
    -
    Operating (loss)/profit
    (43)
    169
    248
    (59)
    (643)
    (620)
    398
    (133)
    (683)
    Year ended 31 December 2014
    UK PBB
    1,016
    117
    -
    -
    -
    -
    -
    -
    1,133
    Ulster Bank RoI
    -
    489
    -
    -
    -
    -
    -
    -
    489
    Commercial Banking
    -
    -
    1,130
    -
    126
    -
    -
    -
    1,256
    Private Banking
    -
    -
    -
    99
    -
    -
    -
    -
    99
    RBS International
    -
    -
    160
    78
    -
    -
    -
    -
    238
    CIB
    -
    -
    -
    -
    (710)
    -
    -
    -
    (710)
    Capital Resolution
    -
    -
    -
    -
    (461)
    97
    966
    -
    602
    Williams & Glyn
    467
    -
    -
    -
    -
    -
    -
    -
    467
    Central items & other
    -
    -
    -
    (27)
    -
    (904)
    -
    -
    (931)
    Reconciling items (1)
    (33)
    -
    -
    -
    153
    (53)
    22
    (89)
    -
    Operating profit/(loss)
    1,450
    606
    1,290
    150
    (892)
    (860)
    988
    (89)
    2,643
    Note:
    (1)
    Re-presentation of one-off and other items, refer to page 2 for further details.
    UK PBB
    Quarter ended 30 September 2015
    Allocated from
    Total 
    UK PBB
    Ulster Bank
    UK PBB 
    Income statement
    m 
    m 
    m 
    Net interest income
    1,018
    37
    1,055
    Non-interest income 
    245
    13
    258
    Total income
    1,263
    50
    1,313
    Direct expenses
     - staff
    (183)
    (19)
    (202)
     - other
    (69)
    1
    (68)
    Indirect expenses
    (442)
    (22)
    (464)
    Restructuring costs
     - direct
    (5)
    -
    (5)
     - indirect
    (22)
    (1)
    (23)
    Litigation and conduct costs
    2
    (2)
    -
    Operating expenses
    (719)
    (43)
    (762)
    Operating profit before impairment (losses)/releases
    544
    7
    551
    Impairment (losses)/releases
    (6)
    4
    (2)
    Operating profit 
    538
    11
    549
    Memo:
    Operating expenses - adjusted (1)
    (694)
    (40)
    (734)
    Operating profit - adjusted (1)
    563
    14
    577
    Key metrics
    Return on equity (2) 
    28.8%
    7.6%
    27.2%
    Return on equity - adjusted (1,2)
    30.2%
    9.7%
    28.7%
    Net interest margin
    3.19%
    3.18%
    3.19%
    Net interest margin excluding central IEAs
    3.61%
    3.36%
    3.60%
    Cost:income ratio 
    57%
    86%
    58%
    Cost:income ratio - adjusted (1)
    55%
    80%
    56%
    Loan impairment charge as % of gross customer loans and advances 
    -
    (0.4%)
    -
    30 September 2015
    Allocated from
    Total
    UK PBB
    Ulster Bank
    UK PBB
    Capital and balance sheet
    bn 
    bn 
    bn 
    Loans and advances to customers (gross)
    114.2
    4.1
    118.3
    Loan impairment provisions
    (1.7)
    (0.3)
    (2.0)
    Net loans and advances to customers
    112.5
    3.8
    116.3
    Funded assets
    135.5
    5.2
    140.7
    Risk elements in lending
    2.5
    0.4
    2.9
    Customer deposits (excluding repos)
    129.3
    5.6
    134.9
    Loan:deposit ratio (excluding repos)
    87%
    68%
    86%
    Provision coverage (3)
    68%
    88%
    67%
    Risk-weighted assets 
    30.5
    2.8
    33.3
    Notes:
    (1)
    Excluding restructuring costs and litigation and conduct costs.
    (2)
    Return on equity is based on segmental operating profit after tax adjusted for preference dividends divided by average notional equity based on 15% (previously 13%) of the monthly average of segmental RWAes, assuming 28% tax rate; previously 25%.
    (3)
    Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.

    UK PBB
    Quarter ended 31 December 2014
    Allocated from
    Total 
    UK PBB
    Ulster Bank
    UK PBB 
    Income statement 
    m 
    m 
    m 
    Net interest income
    1,048
    38
    1,086
    Non-interest income 
    274
    14
    288
    Total income
    1,322
    52
    1,374
    Direct expenses
     - staff
    (183)
    (22)
    (205)
     - other
    (76)
    4
    (72)
    Indirect expenses
    (523)
    (25)
    (548)
    Restructuring costs
     - direct
    (2)
    -
    (2)
     - indirect
    (16)
    2
    (14)
    Litigation and conduct costs
    (650)
    -
    (650)
    Operating expenses
    (1,450)
    (41)
    (1,491)
    Operating (loss)/profit before impairment (losses)/releases
    (128)
    11
    (117)
    Impairment (losses)/releases
    (32)
    34
    2
    Operating (loss)/profit 
    (160)
    45
    (115)
    Memo:
    Operating expenses - adjusted (1)
    (782)
    (43)
    (825)
    Operating profit - adjusted (1)
    508
    43
    551
    Key metrics
    Return on equity (2) 
    (10.0%)
    29.3%
    (7.0%)
    Return on equity - adjusted (1,2)
    25.3%
    28.0%
    25.5%
    Net interest margin
    3.38%
    3.11%
    3.37%
    Net interest margin excluding central IEAs
    3.82%
    3.38%
    3.80%
    Cost:income ratio 
    110%
    79%
    109%
    Cost:income ratio - adjusted (1)
    59%
    83%
    60%
    Loan impairment charge as % of gross customer loans and advances 
    0.1%
    (3.2%)
    -
    31 December 2014
    Allocated from
    Total 
    UK PBB
    Ulster Bank
    UK PBB 
    Capital and balance sheet
    bn 
    bn 
    bn 
    Loans and advances to customers (gross)
    109.9
    4.2
    114.1
    Loan impairment provisions
    (2.2)
    (0.3)
    (2.5)
    Net loans and advances to customers
    107.7
    3.9
    111.6
    Funded assets
    132.3
    5.5
    137.8
    Risk elements in lending
    3.2
    0.4
    3.6
    Customer deposits (excluding repos)
    126.7
    5.9
    132.6
    Loan:deposit ratio (excluding repos)
    85%
    66%
    84%
    Provision coverage (3)
    70%
    80%
    69%
    Risk-weighted assets 
    33.7
    2.9
    36.6
    Notes:
    (1)
    Excluding restructuring costs and litigation and conduct costs.
    (2)
    Return on equity is based on segmental operating profit after tax adjusted for preference dividends divided by average notional equity based on 15% (previously 13%) of the monthly average of segmental RWAes, assuming 28% tax rate; previously 25%.
    (3)
    Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.

    UK PBB
    Year ended 31 December 2014
    Allocated from
    Total 
    UK PBB
    Ulster Bank
    UK PBB 
    Income statement
    m 
    m 
    m 
    Net interest income
    4,052
    169
    4,221
    Non-interest income 
    1,166
    57
    1,223
    Total income
    5,218
    226
    5,444
    Direct expenses
     - staff
    (741)
    (83)
    (824)
     - other
    (355)
    9
    (346)
    Indirect expenses
    (1,873)
    (85)
    (1,958)
    Restructuring costs
     - direct
    (10)
    -
    (10)
     - indirect
    (92)
    (9)
    (101)
    Litigation and conduct costs
    (918)
    -
    (918)
    Operating expenses
    (3,989)
    (168)
    (4,157)
    Operating profit before impairment (losses)/releases 
    1,229
    58
    1,287
    Impairment (losses)/releases
    (213)
    59
    (154)
    Operating profit 
    1,016
    117
    1,133
    Memo: 
    Operating expenses - adjusted (1)
    (2,969)
    (159)
    (3,128)
    Operating profit - adjusted (1)
    2,036
    126
    2,162
    Key metrics
    Return on equity (2) 
    11.4%
    17.8%
    11.9%
    Return on equity - adjusted (1,2)
    24.1%
    19.2%
    23.7%
    Net interest margin
    3.32%
    3.45%
    3.32%
    Net interest margin excluding central IEAs
    3.75%
    3.75%
    3.75%
    Cost:income ratio 
    76%
    74%
    76%
    Cost:income ratio - adjusted (1)
    57%
    70%
    57%
    Loan impairment charge as % of gross customer loans and advances 
    0.2%
    (1.4%)
    0.1%
    31 December 2014
    Allocated from
    Total
    UK PBB
    Ulster Bank
    UK PBB
    Capital and balance sheet
    bn 
    bn 
    bn 
    Loans and advances to customers (gross)
    109.9
    4.2
    114.1
    Loan impairment provisions
    (2.2)
    (0.3)
    (2.5)
    Net loans and advances to customers
    107.7
    3.9
    111.6
    Funded assets
    132.3
    5.5
    137.8
    Risk elements in lending
    3.2
    0.4
    3.6
    Customer deposits (excluding repos)
    126.7
    5.9
    132.6
    Loan:deposit ratio (excluding repos)
    85%
    66%
    84%
    Provision coverage (3)
    70%
    80%
    69%
    Risk-weighted assets 
    33.7
    2.9
    36.6
    Notes:
    (1)
    Excluding restructuring costs and litigation and conduct costs.
    (2)
    Return on equity is based on segmental operating profit after tax adjusted for preference dividends divided by average notional equity based on 15% (previously 13%) of the monthly average of segmental RWAes, assuming 28% tax rate; previously 25%.
    (3)
    Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.

    Ulster Bank RoI
    Quarter ended
    30 September 2015
    All allocated from Ulster Bank
    Income statement
    m 
    Net interest income
    90
    Non-interest income 
    74
    Total income
    164
    Direct expenses (1)
     - staff
    (40)
     - other
    (22)
    Indirect expenses
    (48)
    Restructuring costs
     - direct
    (3)
     - indirect
    (2)
    Operating expenses
    (115)
    Operating profit before impairment releases
    49
    Impairment releases
    54
    Operating profit 
    103
    Memo: 
    Operating expenses - adjusted (2)
    (110)
    Operating profit - adjusted (2)
    108
    Key metrics
    Return on equity (3) 
    16.7%
    Return on equity - adjusted (2,3)
    17.5%
    Net interest margin
    1.52%
    Net interest margin excluding central IEAs (4)
    1.52%
    Cost:income ratio 
    70%
    Cost:income ratio - adjusted (2)
    67%
    Loan impairment charge as % of gross customer loans and advances 
    (1.2%)
    30 September 2015
    All allocated from Ulster Bank
    Capital and balance sheet
    bn 
    Loans and advances to customers (gross)
    18.8
    Loan impairment provisions
    (2.0)
    Net loans and advances to customers
    16.8
    Funded assets
    22.9
    Risk elements in lending
    3.6
    Customer deposits (excluding repos)
    13.6
    Loan:deposit ratio (excluding repos)
    123%
    Provision coverage (5)
    54%
    Risk-weighted assets 
    19.6
    Notes:
    (1)
    Staff expenses include costs relating to employees of Ulster Bank Ireland Limited only. Recharges for services provided by or to Ulster Bank Limited are reflected through a management fee within other expenses.
    (2)
    Excluding restructuring costs and litigation and conduct costs.
    (3)
    Return on equity is based on segmental operating profit after tax adjusted for preference dividends divided by average notional equity based on 11% (previously 13%) of the monthly average of segmental RWAes, assuming 15% tax rate.
    (4)
    Ulster Bank Ireland Limited manages its regulatory liquidity requirements locally and consequently maintains a low yielding liquid asset portfolio. Excluding the impact of liquid asset balances, net interest margin for Q3 2015 would increase to 1.93%. 
    (5)
    Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.

    Ulster Bank RoI
    Quarter ended
    31 December 2014
    All allocated from Ulster Bank
    Income statement
    m 
    Net interest income
    112
    Non-interest income 
    40
    Total income
    152
    Direct expenses (1)
     - staff
    (43)
     - other
    (23)
    Indirect expenses
    (53)
    Restructuring costs
     - indirect
    2
    Litigation and conduct costs
    19
    Operating expenses
    (98)
    Operating profit before impairment releases
    54
    Impairment releases
    70
    Operating profit 
    124
    (119)
    Operating profit - adjusted (2)
    103
    Key metrics
    Return on equity (3) 
    19.8%
    Return on equity - adjusted (2,3)
    16.4%
    Net interest margin
    1.90%
    Net interest margin excluding central IEAs
    1.90%
    Cost:income ratio 
    64%
    Cost:income ratio - adjusted (2)
    78%
    Loan impairment charge as % of gross customer loans and advances 
    (1.4%)
    31 December 2014
    All allocated from Ulster Bank
    Capital and balance sheet
    bn
    Loans and advances to customers (gross)
    20.5
    Loan impairment provisions
    (2.4)
    Net loans and advances to customers
    18.1
    Funded assets
    22.4
    Risk elements in lending
    4.4
    Customer deposits (excluding repos)
    14.7
    Loan:deposit ratio (excluding repos)
    124%
    Provision coverage (4)
    55%
    Risk-weighted assets 
    21.8
    Notes:
    (1)
    Staff expenses include costs relating to employees of Ulster Bank Ireland Limited only. Recharges for services provided by or to Ulster Bank Limited are reflected through a management fee within other expenses.
    (2)
    Excluding restructuring costs and litigation and conduct costs.
    (3)
    Return on equity is based on segmental operating profit after tax adjusted for preference dividends divided by average notional equity based on 11% (previously 13%) of the monthly average of segmental RWAes, assuming 15% tax rate.
    (4)
    Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.

    Ulster Bank RoI
    Year ended
    31 December 2014
    All allocated from Ulster Bank
    Income statement
    m 
    Net interest income
    467
    Non-interest income 
    137
    Total income
    604
    Direct expenses (1)
     - staff
    (164)
     - other
    (83)
    Indirect expenses
    (180)
    Restructuring costs
     - direct
    8
     - indirect
    (21)
    Litigation and conduct costs
    19
    Operating expenses
    (421)
    Operating profit before impairment releases
    183
    Impairment releases
    306
    Operating profit 
    489
    Memo:
    Operating expenses - adjusted (2)
    (427)
    Operating profit - adjusted (2)
    483
    Key metrics
    Return on equity (3) 
    18.6%
    Return on equity - adjusted (2,3)
    18.4%
    Net interest margin
    1.92%
    Net interest margin excluding central IEAs
    1.99%
    Cost:income ratio 
    70%
    Cost:income ratio - adjusted (2)
    71%
    Loan impairment charge as % of gross customer loans and advances 
    (1.5%)
    31 December 2014
    All allocated from Ulster Bank
    Capital and balance sheet
    bn 
    Loans and advances to customers (gross)
    20.5
    Loan impairment provisions
    (2.4)
    Net loans and advances to customers
    18.1
    Funded assets
    22.4
    Risk elements in lending
    4.4
    Customer deposits (excluding repos)
    14.7
    Loan:deposit ratio (excluding repos)
    124%
    Provision coverage (4)
    55%
    Risk-weighted assets 
    21.8
    Notes:
    (1)
    Staff expenses include costs relating to employees of Ulster Bank Ireland Limited only. Recharges for services provided by or to Ulster Bank Limited are reflected through a management fee within other expenses.
    (2)
    Excluding restructuring costs and litigation and conduct costs.
    (3)
    Return on equity is based on segmental operating profit after tax adjusted for preference dividends divided by average notional equity based on 11% (previously 13%) of the monthly average of segmental RWAes, assuming 15% tax rate.
    (4)
    Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.
    Commercial Banking 
    Quarter ended 30 September 2015
    Allocated from
    Total
    Commercial
    Commercial
    Banking
    CIB
    Banking
    Income statement
    m 
    m 
    m 
    Net interest income
    471
    33
    504
    Non-interest income
    251
    45
    296
    Total income
    722
    78
    800
    Direct expenses
     - staff
    (113)
    (4)
    (117)
     - other
    (19)
    (1)
    (20)
     - operating lease costs
    (34)
    -
    (34)
    Indirect expenses
    (200)
    (38)
    (238)
    Restructuring costs
     - direct
    (1)
    -
    (1)
     - indirect
    2
    -
    2
    Operating expenses
    (365)
    (43)
    (408)
    Operating profit before impairment losses
    357
    35
    392
    Impairment losses
    (16)
    -
    (16)
    Operating profit 
    341
    35
    376
    Memo: 
    Operating expenses - adjusted (1)
    (366)
    (43)
    (409)
    Operating profit - adjusted (1)
    340
    35
    375
    Key metrics
    Return on equity (2) 
    10.6%
    36.9%
    12.3%
    Return on equity - adjusted (1,2)
    10.6%
    36.9%
    12.3%
    Net interest margin 
    1.87%
    2.22%
    1.89%
    Net interest margin excluding central IEAs
    2.56%
    9.02%
    2.68%
    Cost:income ratio 
    51%
    55%
    51%
    Cost:income ratio - adjusted (1)
    51%
    55%
    51%
    Loan impairment charge as % of gross customer loans and advances
    0.1%
    -
    0.1%
    30 September 2015
    Allocated from
    Total
    Commercial 
    Commercial
    Banking 
    CIB
    Banking
    Capital and balance sheet
    bn 
    bn 
    bn
    Loans and advances to customers (gross)
    85.3
    4.5
    89.8
    Loan impairment provisions
    (0.7)
    -
    (0.7)
    Net loans and advances to customers
    84.6
    4.5
    89.1
    Funded assets
    119.0
    10.6
    129.6
    Risk elements in lending
    2.1
    -
    2.1
    Customer deposits (excluding repos)
    76.6
    12.8
    89.4
    Loan:deposit ratio (excluding repos)
    111%
    35%
    100%
    Provision coverage (3)
    33%
    -
    33%
    Risk-weighted assets 
    62.3
    1.9
    64.2
    Notes:
    (1)
    Excluding restructuring costs and litigation and conduct costs.
    (2)
    Return on equity is based on segmental operating profit after tax adjusted for preference dividends divided by average notional equity based on 11% (previously 13%) of the monthly average of segmental RWAes, assuming 28% tax rate; previously 25%.
    (3)
    Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.

    Commercial Banking
    Quarter ended 31 December 2014
    Allocated from
    Total
    Commercial
    Commercial
    Banking
    CIB
    Banking
    Income statement
    m 
    m 
    m 
    Net interest income
    475
    31
    506
    Non-interest income
    296
    47
    343
    Total income
    771
    78
    849
    Direct expenses
     - staff
    (113)
    (2)
    (115)
     - other
    (33)
    (2)
    (35)
     - operating lease costs
    (38)
    -
    (38)
    Indirect expenses
    (272)
    (47)
    (319)
    Restructuring costs
     - direct
    (1)
    -
    (1)
     - indirect
    (12)
    (4)
    (16)
    Litigation and conduct costs
    (62)
    -
    (62)
    Operating expenses
    (531)
    (55)
    (586)
    Operating profit before impairment losses
    240
    23
    263
    Impairment losses
    (31)
    (1)
    (32)
    Operating profit 
    209
    22
    231
    Memo:
    Operating expenses - adjusted (1)
    (456)
    (51)
    (507)
    Operating profit - adjusted (1)
    284
    26
    310
    Key metrics
    Return on equity (2) 
    6.3%
    35.3%
    7.0%
    Return on equity - adjusted (1,2)
    9.0%
    39.8%
    9.9%
    Net interest margin
    1.96%
    2.00%
    1.96%
    Net interest margin excluding central IEAs
    2.68%
    6.88%
    2.79%
    Cost:income ratio 
    69%
    71%
    69%
    Cost:income ratio - adjusted (1)
    59%
    65%
    60%
    Loan impairment charge as % of gross customer loans and advances
    0.2%
    0.1%
    0.1%
    31 December 2014
    Allocated from
    Total
    Commercial 
    Commercial
    Banking 
    CIB
    Banking
    Capital and balance sheet
    bn 
    bn 
    bn 
    Loans and advances to customers (gross)
    81.4
    4.4
    85.8
    Loan impairment provisions
    (0.9)
    -
    (0.9)
    Net loans and advances to customers
    80.5
    4.4
    84.9
    Funded assets
    117.0
    10.9
    127.9
    Risk elements in lending
    2.4
    -
    2.4
    Customer deposits (excluding repos)
    72.5
    12.4
    84.9
    Loan:deposit ratio (excluding repos)
    111%
    35%
    100%
    Provision coverage (3)
    39%
    -
    39%
    Risk-weighted assets 
    61.2
    2.0
    63.2
    Notes:
    (1)
    Excluding restructuring costs and litigation and conduct costs.
    (2)
    Return on equity is based on segmental operating profit after tax adjusted for preference dividends divided by average notional equity based on 11% (previously 13%) of the monthly average of segmental RWAes, assuming 28% tax rate; previously 25%.
    (3)
    Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.

    Commercial Banking
    Year ended 31 December 2014
    Allocated from
    Total
    Commercial
    Commercial
    Banking
    CIB
    Banking
    Income statement
    m 
    m 
    m 
    Net interest income
    1,865
    111
    1,976
    Non-interest income
    1,117
    212
    1,329
    Total income
    2,982
    323
    3,305
    Direct expenses
     - staff
    (489)
    (6)
    (495)
     - other
    (98)
    (2)
    (100)
     - operating lease costs
    (141)
    -
    (141)
    Indirect expenses
    (835)
    (173)
    (1,008)
    Restructuring costs
     - direct
    (41)
    -
    (41)
     - indirect
    (52)
    (15)
    (67)
    Litigation and conduct costs
    (112)
    -
    (112)
    Operating expenses
    (1,768)
    (196)
    (1,964)
    Operating profit before impairment losses
    1,214
    127
    1,341
    Impairment losses
    (84)
    (1)
    (85)
    Operating profit 
    1,130
    126
    1,256
    Memo: 
    Operating expenses - adjusted (1)
    (1,563)
    (181)
    (1,744)
    Operating profit - adjusted (1)
    1,335
    141
    1,476
    Key metrics
    Return on equity (2) 
    9.2%
    42.0%
    10.2%
    Return on equity - adjusted (1,2)
    11.1%
    47.0%
    12.2%
    Net interest margin
    1.93%
    1.788%
    1.91%
    Net interest margin excluding central IEAs
    2.65%
    5.92%
    2.74%
    Cost:income ratio 
    59%
    61%
    59%
    Cost:income ratio - adjusted (1)
    52%
    56%
    53%
    Loan impairment charge as % of gross customer loans and advances
    0.1%
    -
    0.1%
    31 December 2014
    Allocated from
    Total
    Commercial 
    Commercial
    Banking 
    CIB
    Banking
    Capital and balance sheet
    bn 
    bn 
    bn 
    Loans and advances to customers (gross)
    81.4
    4.4
    85.8
    Loan impairment provisions
    (0.9)
    -
    (0.9)
    Net loans and advances to customers
    80.5
    4.4
    84.9
    Funded assets
    117.0
    10.9
    127.9
    Risk elements in lending
    2.4
    -
    2.4
    Customer deposits (excluding repos)
    72.5
    12.4
    84.9
    Loan:deposit ratio (excluding repos)
    111%
    35%
    100%
    Provision coverage (3)
    38%
    -
    39%
    Risk-weighted assets 
    61.2
    2.0
    63.2
    Notes:
    (1)
    Excluding restructuring costs and litigation and conduct costs.
    (2)
    Return on equity is based on segmental operating profit after tax adjusted for preference dividends divided by average notional equity based on 11% (previously 13%) of the monthly average of segmental RWAes, assuming 28% tax rate; previously 25%.
    (3)
    Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.
    Private Banking 
    Quarter ended
    30 September 2015
    All allocated from Private Banking
    Income statement
    m 
    Net interest income
    109
    Non-interest income
    51
    Total income
    160
    Direct expenses
     - staff
    (43)
     - other
    (11)
    Indirect expenses
    (65)
    Restructuring costs
     - direct
    2
     - indirect
    (1)
    Operating expenses
    (118)
    Operating profit before impairment losses
    42
    Impairment losses
    (4)
    Operating profit 
    38
    Memo: 
    Operating expenses - adjusted (1)
    (119)
    Operating profit - adjusted (1)
    37
    Key metrics
    Return on equity (2) 
    7.4%
    Return on equity - adjusted (1,2)
    7.1%
    Net interest margin
    2.72%
    Net interest margin excluding central IEAs
    3.92%
    Cost:income ratio 
    74%
    Cost:income ratio - adjusted (1)
    74%
    Loan impairment charge as % of gross customer loans and advances
    0.1%
    30 September 2015
    All allocated from Private Banking
    Capital and balance sheet
    bn
    Net loans and advances to customers
    11.1
    Funded assets
    17.4
    Risk elements in lending
    0.1
    Customer deposits (excluding repos)
    22.7
    Loan:deposit ratio (excluding repos)
    49%
    Provision coverage (3)
    32%
    Risk-weighted assets 
    8.4
    Notes:
    (1)
    Excluding restructuring costs and litigation and conduct costs.
    (2)
    Return on equity is based on segmental operating profit after tax adjusted for preference dividends divided by average notional equity based on 15% (previously 13%) of the monthly average of segmental RWAes, assuming 28% tax rate; previously 25%.
    (3)
    Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.

    Private Banking 
    Quarter ended
    31 December 2014
    All allocated from Private Banking
    Income statement
    m 
    Net interest income
    116
    Non-interest income
    54
    Total income
    170
    Direct expenses
     - staff
    (44)
     - other
    (12)
    Indirect expenses
    (90)
    Restructuring costs
     - direct
    (1)
    Litigation and conduct costs
    (90)
    Operating expenses
    (237)
    Operating loss before impairment releases
    (67)
    Impairment releases
    1
    Operating loss
    (66)
    Memo:
    Operating expenses - adjusted (1)
    (146)
    Operating profit - adjusted (1)
    25
    Key metrics
    Return on equity (2) 
    (15.8%)
    Return on equity - adjusted (1,2)
    3.7%
    Net interest margin
    2.91%
    Net interest margin excluding central IEAs
    4.17%
    Cost:income ratio 
    139%
    Cost:income ratio - adjusted (1)
    86%
    31 December 2014
    All allocated from Private Banking
    Capital and balance sheet
    bn
    Net loans and advances to customers
    11.0
    Funded assets
    17.7
    Risk elements in lending
    0.1
    Customer deposits (excluding repos)
    22.3
    Loan:deposit ratio (excluding repos)
    49%
    Provision coverage (3)
    25%
    Risk-weighted assets 
    8.7
    Notes:
    (1)
    Excluding restructuring costs and litigation and conduct costs.
    (2)
    Return on equity is based on segmental operating profit after tax adjusted for preference dividends divided by average notional equity based on 15% (previously 13%) of the monthly average of segmental RWAes, assuming 28% tax rate; previously 25%.
    (3)
    Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.


    Private Banking 
    Year ended 
    31 December 2014
    All allocated from Private Banking
    Income statement
    m 
    Net interest income
    454
    Non-interest income
    235
    Total income
    689
    Direct expenses
     - staff
    (178)
     - other
    (37)
    Indirect expenses
    (289)
    Restructuring costs
     - direct
    (1)
    Litigation and conduct costs
    (90)
    Operating expenses
    (595)
    Operating profit before impairment releases
    94
    Impairment releases
    5
    Operating profit 
    99
    Memo: 
    Operating expenses - adjusted (1)
    (504)
    Operating profit - adjusted (1)
    190
    Key metrics
    Return on equity (2) 
    4.1%
    Return on equity - adjusted (1,2)
    9.1%
    Net interest margin
    2.89%
    Net interest margin excluding central IEAs
    4.12%
    Cost:income ratio 
    86%
    Cost:income ratio - adjusted (1)
    73%
    31 December 2014
    All allocated from Private Banking
    Capital and balance sheet
    bn
    Net loans and advances to customers
    11.0
    Funded assets
    17.7
    Risk elements in lending
    0.1
    Customer deposits (excluding repos)
    22.3
    Loan:deposit ratio (excluding repos)
    49%
    Provision coverage (3)
    25%
    Risk-weighted assets 
    8.7
    Notes:
    (1)
    Excluding restructuring costs and litigation and conduct costs.
    (2)
    Return on equity is based on segmental operating profit after tax adjusted for preference dividends divided by average notional equity based on 15% (previously 13%) of the monthly average of segmental RWAes, assuming 28% tax rate; previously 25%.
    (3)
    Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.
    RBS International
    Quarter ended 30 September 2015
    Allocated from
    Total
    Commercial
    Private 
    RBS
    Banking
    Banking (1) 
    International
    Income statement
    m 
    m 
    m 
    Net interest income
    73
    -
    73
    Non-interest income
    14
    -
    14
    Total income
    87
    -
    87
    Direct expenses
     - staff
    (9)
    -
    (9)
     - other
    (3)
    -
    (3)
    Indirect expenses
    (24)
    -
    (24)
    Restructuring costs
     - indirect
    (2)
    -
    (2)
    Operating expenses
    (38)
    -
    (38)
    Operating profit before impairment losses
    49
    -
    49
    Impairment releases
    1
    -
    1
    Operating profit
    50
    -
    50
    Memo: 
    Operating expenses - adjusted (2)
    (36)
    -
    (36)
    Operating profit - adjusted (2)
    52
    -
    52
    Key metrics
    Return on equity (3) 
    18%
    -
    18%
    Return on equity - adjusted (2,3)
    19%
    -
    19%
    Net interest margin
    1.43%
    -
    1.43%
    Net interest margin excluding central IEAs
    4.38%
    -
    4.38%
    Cost:income ratio 
    44%
    -
    44%
    Cost:income ratio - adjusted (2)
    41%
    -
    41%
    Loan impairment charge as % of gross customer loans and advances
    (0.1%)
    -
    (0.1%)
    30 September 2015
    Allocated from
    Total
    Commercial 
    Private 
    RBS
    Banking 
    Banking (1) 
    International
    Capital and balance sheet
    bn 
    bn 
    bn
    Loans and advances to customers (gross)
    7.1
    -
    7.1
    Loan impairment provisions
    (0.1)
    -
    (0.1)
    Net loans and advances to customers
    7.0
    -
    7.0
    Funded assets
    22.9
    -
    22.9
    Risk elements in lending
    0.1
    -
    0.1
    Customer deposits (excluding repos)
    22.3
    -
    22.3
    Loan:deposit ratio (excluding repos)
    32%
    -
    32%
    Provision coverage (4)
    58%
    -
    58%
    Risk-weighted assets 
    8.1
    -
    8.1
    Notes:
    (1)
    From 1 January 2015, the RBS International business previously reported in Private Banking was transferred to Commercial Banking so there were no further allocations from Private Banking in 2015.
    (2)
    Excluding restructuring costs.
    (3)
    Return on equity is based on segmental operating profit after tax adjusted for preference dividends divided by average notional equity based on 12% (previously 13%) of the monthly average of segmental RWAes, assuming 10% tax rate.
    (4)
    Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.

    RBS International
    Quarter ended 31 December 2014
    Allocated from
    Total
    Commercial
    Private 
    RBS
    Banking
    Banking 
    International
    Income statement
    m 
    m 
    m 
    Net interest income
    46
    37
    83
    Non-interest income
    14
    4
    18
    Total income
    60
    41
    101
    Direct expenses
     - staff
    (5)
    (6)
    (11)
     - other
    (2)
    -
    (2)
    Indirect expenses
    (12)
    (11)
    (23)
    Restructuring costs
     - direct
    1
    (1)
    -
     - indirect
    (1)
    (1)
    (2)
    Operating expenses
    (19)
    (19)
    (38)
    Operating profit before impairment losses
    41
    22
    63
    Impairment losses
    (2)
    (1)
    (3)
    Operating profit 
    39
    21
    60
    Memo: 
    Operating expenses - adjusted (1)
    (19)
    (17)
    (36)
    Operating profit - adjusted (1)
    39
    23
    62
    Key metrics
    Return on equity (2) 
    19%
    58.4%
    24.7%
    Return on equity - adjusted (1,2)
    19%
    63.9%
    25.6%
    Net interest margin
    1.45%
    2.07%
    1.67%
    Net interest margin excluding central IEAs
    4.16%
    5.79%
    4.76%
    Cost:income ratio 
    32%
    46%
    38%
    Cost:income ratio - adjusted (1)
    32%
    41%
    36%
    Loan impairment charge as % of gross customer loans and advances
    0.1%
    0.1%
    0.2%
    31 December 2014
    Allocated from
    Total
    Commercial 
    Private 
    RBS
    Banking 
    Banking 
    International
    Capital and balance sheet
    bn 
    bn 
    bn
    Loans and advances to customers (gross)
    4.7
    2.6
    7.3
    Loan impairment provisions
    (0.1)
    -
    (0.1)
    Net loans and advances to customers
    4.6
    2.6
    7.2
    Funded assets
    20.2
    3.2
    23.4
    Risk elements in lending
    0.1
    0.1
    0.2
    Customer deposits (excluding repos)
    14.3
    6.5
    20.8
    Loan:deposit ratio (excluding repos)
    32%
    40%
    35%
    Provision coverage (3)
    41%
    30%
    27%
    Risk-weighted assets 
    6.3
    1.2
    7.5
    Notes:
    (1)
    Excluding restructuring costs.
    (2)
    Return on equity is based on segmental operating profit after tax adjusted for preference dividends divided by average notional equity based on 12% (previously 13%) of the monthly average of segmental RWAes, assuming 10% tax rate.
    (3)
    Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.

    RBS International
    Year ended 31 December 2014
    Allocated from
    Total
    Commercial
    Private 
    RBS
    Banking
    Banking 
    International
    Income statement
    m 
    m 
    m 
    Net interest income
    176
    147
    323
    Non-interest income
    52
    16
    68
    Total income
    228
    163
    391
    Direct expenses
     - staff
    (19)
    (25)
    (44)
     - other
    (10)
    (5)
    (15)
    Indirect expenses
    (47)
    (47)
    (94)
    Restructuring costs
     - direct
    1
    (3)
    (2)
     - indirect
    (1)
    (4)
    (5)
    Operating expenses
    (76)
    (84)
    (160)
    Operating profit before impairment losses
    152
    79
    231
    Impairment releases/(losses)
    8
    (1)
    7
    Operating profit 
    160
    78
    238
    Memo: 
    Operating expenses - adjusted (1)
    (76)
    (77)
    (153)
    Operating profit - adjusted (1)
    160
    85
    245
    Key metrics
    Return on equity (2) 
    19.7%
    44.4%
    24.2%
    Return on equity - adjusted (1,2)
    19.7%
    48.4%
    24.9%
    Net interest margin
    1.42%
    2.20%
    1.65%
    Net interest margin excluding central IEAs
    4.18%
    5.94%
    4.83%
    Cost:income ratio 
    33%
    52%
    41%
    Cost:income ratio - adjusted (1)
    33%
    47%
    39%
    Loan impairment charge as % of gross customer loans and advances
    (0.2%)
    -
    (0.1%)
    31 December 2014
    Allocated from
    Total
    Commercial 
    Private 
    RBS
    Banking 
    Banking 
    International
    Capital and balance sheet
    bn 
    bn 
    bn
    Loans and advances to customers (gross)
    4.7
    2.6
    7.3
    Loan impairment provisions
    (0.1)
    -
    (0.1)
    Net loans and advances to customers
    4.6
    2.6
    7.2
    Funded assets
    20.2
    3.2
    23.4
    Risk elements in lending
    0.1
    0.1
    0.2
    Customer deposits (excluding repos)
    14.3
    6.5
    20.8
    Loan:deposit ratio (excluding repos)
    32%
    40%
    35%
    Provision coverage (3)
    41%
    30%
    27%
    Risk-weighted assets 
    6.3
    1.2
    7.5
    Notes:
    (1)
    Excluding restructuring costs.
    (2)
    Return on equity is based on segmental operating profit after tax adjusted for preference dividends divided by average notional equity based on 12% (previously 13%) of the monthly average of segmental RWAes, assuming 10% tax rate.
    (3)
    Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.
    CIB
    Quarter ended
    30 September
    2015
    All allocated from CIB
    Income statement
    m
    Net interest income
    29
    Non-interest income
    299
    Own credit adjustments
    78
    Total income
    406
    Direct expenses
     - staff
    (97)
     - other
    (19)
    Indirect expenses
    (242)
    Restructuring costs
     - direct
    (3)
     - indirect
    (148)
    Litigation and conduct costs
    (6)
    Operating expenses
    (515)
    Operating loss
    (109)
    Memo:
    Total income - adjusted (1)
    328
    Operating expenses - adjusted (2)
    (358)
    Operating loss - adjusted (1,2)
    (30)
    Key metrics
    Return on equity (3) 
    (6.4%)
    Return on equity - adjusted (1,2,3)
    (2.7%)
    Net interest margin
    0.62%
    Net interest margin excluding central IEAs
    0.78%
    Cost:income ratio 
    127%
    Cost:income ratio - adjusted (1,2)
    109%
    30 September
    2015
    All allocated from CIB
    Capital and balance sheet
    bn
    Net loans and advances to customers
    19.8
    Funded assets
    125.9
    Customer deposits (excluding repos)
    5.9
    Loan:deposit ratio (excluding repos)
    337%
    Risk-weighted assets
    38.8
    Notes:
    (1)
    Excluding own credit adjustments.
    (2)
    Excluding restructuring costs and litigation and conduct costs.
    (3)
    Return on equity is based on segmental operating profit after tax adjusted for preference dividends divided by average notional equity based on 15% (previously 13%) of the monthly average of segmental RWAes, assuming 28% tax rate; previously 25%.

    CIB 
    Quarter ended 
    31 December
    2014
    All allocated from CIB
    Income statement
    m 
    Net interest income
    8
    Non-interest income
    248
    Own credit adjustments
    (33)
    Total income
    223
    Direct expenses
     - staff
    (36)
     - other
    (47)
    Indirect expenses
    (293)
    Restructuring costs
     - direct
    (3)
     - indirect
    (16)
    Litigation and conduct costs
    (370)
    Operating expenses
    (765)
    Operating loss before impairment releases
    (542)
    Impairment releases
    6
    Operating loss
    (536)
    Memo: 
    Total income - adjusted (1)
    256
    Operating expenses - adjusted (2)
    (376)
    Operating loss - adjusted (1,2)
    (114)
    Key metrics
    Return on equity (3) 
    (23.3%)
    Return on equity - adjusted (1,2,3)
    (5.9%)
    Net interest margin
    0.21%
    Net interest margin excluding central IEAs
    0.16%
    Cost:income ratio 
    343%
    Cost:income ratio - adjusted (1,2)
    147%
    Loan impairment charge as % of gross customer loans and advances
    (0.1%)
    31 December
    2014
    All allocated from CIB
    Capital and balance sheet
    bn 
    Net loans and advances to customers
    26.5
    Funded assets
    137.7
    Customer deposits (excluding repos)
    11.8
    Loan:deposit ratio (excluding repos)
    226%
    Risk-weighted assets
    41.9
    Notes:
    (1)
    Excluding own credit adjustments.
    (2)
    Excluding restructuring costs and litigation and conduct costs.
    (3)
    Return on equity is based on segmental operating profit after tax adjusted for preference dividends divided by average notional equity based on 15% (previously 13%) of the monthly average of segmental RWAes, assuming 28% tax rate; previously 25%.

    CIB 
    Year ended 
    31 December
    2014
    All allocated from CIB
    Income statement
    m 
    Net interest income
    (11)
    Non-interest income
    1,951
    Own credit adjustments
    (9)
    Total income
    1,931
    Direct expenses
     - staff
    (446)
     - other
    (190)
    Indirect expenses
    (1,080)
    Restructuring costs
     - direct
    (13)
     - indirect
    (89)
    Litigation and conduct costs
    (832)
    Operating expenses
    (2,650)
    Operating loss before impairment releases
    (719)
    Impairment releases
    9
    Operating loss
    (710)
    Memo: 
    Total income - adjusted (1)
    1,940
    Operating expenses - adjusted (2)
    (1,716)
    Operating profit - adjusted (1,2)
    233
    Key metrics
    Return on equity (3) 
    (7.9%)
    Return on equity - adjusted (1,2,3)
    1.3%
    Net interest margin
    (0.07%)
    Net interest margin excluding central IEAs
    (0.06%)
    Cost:income ratio 
    137%
    Cost:income ratio - adjusted (1,2)
    88%
    31 December
    2014
    All allocated from CIB
    Capital and balance sheet
    bn
    Net loans and advances to customers
    26.5
    Funded assets
    137.7
    Customer deposits (excluding repos)
    11.8
    Loan:deposit ratio (excluding repos)
    226%
    Risk-weighted assets
    41.9
    Notes:
    (1)
    Excluding own credit adjustments.
    (2)
    Excluding restructuring costs and litigation and conduct costs.
    (3)
    Return on equity is based on segmental operating profit after tax adjusted for preference dividends divided by average notional equity based on 15% (previously 13%) of the monthly average of segmental RWAes, assuming 28% tax rate; previously 25%.
    Capital Resolution
    Quarter ended 30 September 2015
    Total
    Allocated from
    Capital
    CIB
    RCR
    Centre
    Resolution
    Income statement
    m 
    m 
    m 
    m 
    Net interest income
    94
    (17)
    1
    78
    Non-interest income
    (49)
    (3)
    25
    (27)
    Own credit adjustments
    38
    -
    -
    38
    Total income
    83
    (20)
    26
    89
    Direct expenses
     - staff
    (38)
    (22)
    -
    (60)
     - other
    (40)
    (1)
    -
    (41)
    Indirect expenses
    (230)
    (15)
    -
    (245)
    Restructuring costs
     - direct
    (190)
    -
    -
    (190)
     - indirect
    (296)
    (4)
    -
    (300)
    Litigation and conduct costs
    (101)
    -
    -
    (101)
    Operating expenses
    (895)
    (42)
    -
    (937)
    Operating (loss)/profit before impairment releases
    (812)
    (62)
    26
    (848)
    Impairment releases
    4
    46
    -
    50
    Operating (loss)/profit
    (808)
    (16)
    26
    (798)
    Memo: 
    Total income - adjusted (1)
    45
    (20)
    26
    51
    Operating expenses - adjusted (2)
    (308)
    (38)
    -
    (346)
    Operating (loss)/profit - adjusted (1,2)
    (259)
    (12)
    26
    (245)
    Key metrics
    Net interest margin
    0.93%
    nm
    nm
    0.60%
    Net interest margin excluding central IEAs
    1.14%
    nm
    nm
    0.70%
    Loan impairment charge as % of gross customer loans and advances
    -
    (2.2%)
    nm
    (0.5%)
    30 September 2015
    Total
    Allocated from
    Capital
    CIB
    RCR
    Centre
    Resolution
    Capital and balance sheet
    bn
    bn
    bn
    bn
    Loans and advances to customers (gross)
    26.6
    8.2
    -
    34.8
    Loan impairment provisions
    (0.1)
    (3.9)
    -
    (4.0)
    Net loans and advances to customers
    26.5
    4.3
    -
    30.8
    Funded assets
    58.4
    6.5
    1.1
    66.0
    Risk elements in lending
    0.2
    5.1
    -
    5.3
    Customer deposits (excluding repos)
    29.1
    0.9
    -
    30.0
    Loan:deposit ratio (excluding repos)
    91%
    nm
    nm
    nm
    Provision coverage (3)
    63%
    nm
    nm
    76%
    Risk-weighted assets 
    40.4
    12.4
    6.9
    59.7
    Notes:
    (1)
    Excluding own credit adjustments.
    (2)
    Excluding restructuring costs and litigation and conduct costs.
    (3)
    Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.

    Capital Resolution
    Quarter ended 31 December 2014
    Total
    Allocated from
    Capital
    CIB
    RCR
    Centre
    Resolution
    Income statement
    m 
    m 
    m 
    m 
    Net interest income
    183
    (23)
    2
    162
    Non-interest income
    174
    (162)
    25
    37
    Own credit adjustments
    (50)
    -
    -
    (50)
    Total income
    307
    (185)
    27
    149
    Direct expenses
     - staff
    (25)
    (41)
    -
    (66)
     - other
    (51)
    (29)
    -
    (80)
    Indirect expenses
    (319)
    (25)
    -
    (344)
    Restructuring costs
     - direct
    (46)
    -
    -
    (46)
     - indirect
    (19)
    (3)
    -
    (22)
    Litigation and conduct costs
    (12)
    -
    -
    (12)
    Operating expenses
    (472)
    (98)
    -
    (570)
    Operating (loss)/profit before impairment (losses)/releases
    (165)
    (283)
    27
    (421)
    Impairment (losses)/releases
    (47)
    681
    -
    634
    Operating (loss)/profit 
    (212)
    398
    27
    213
    Memo: 
    Total income - adjusted (1)
    357
    (185)
    27
    199
    Operating expenses - adjusted (2)
    (395)
    (95)
    -
    (490)
    Operating (loss)/profit - adjusted (1,2)
    (85)
    401
    27
    343
    Key metrics
    Net interest margin
    1.13%
    nm
    nm
    0.71%
    Net interest margin excluding central IEAs
    1.25%
    nm
    nm
    0.77%
    Loan impairment charge as % of gross customer loans and advances
    0.5%
    (12.8%)
    nm
    (4.0%)
    31 December 2014
    Total
    Allocated from
    Capital
    CIB
    RCR
    Centre
    Resolution
    Capital and balance sheet
    bn
    bn
    bn
    bn
    Loans and advances to customers (gross)
    42.1
    21.9
    -
    64.0
    Loan impairment provisions
    (0.2)
    (10.9)
    -
    (11.1)
    Net loans and advances to customers
    41.9
    11.0
    -
    52.9
    Funded assets
    99.7
    14.9
    1.0
    115.6
    Risk elements in lending
    0.2
    15.4
    -
    15.6
    Customer deposits (excluding repos)
    35.2
    1.2
    -
    36.4
    Loan:deposit ratio (excluding repos)
    119%
    nm
    nm
    nm
    Provision coverage (3)
    96%
    nm
    nm
    71%
    Risk-weighted assets 
    67.0
    22.0
    6.1
    95.1
    Notes:
    (1)
    Excluding own credit adjustments.
    (2)
    Excluding restructuring costs and litigation and conduct costs.
    (3)
    Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.

    Capital Resolution
    Year end 31 December 2014
    Total
    Allocated from
    Capital 
    CIB
    RCR
    Centre
    Resolution
    Income statement
    m
    m
    m
    m
    Net interest income
    717
    (47)
    3
    673
    Non-interest income
    969
    92
    94
    1,155
    Own credit adjustments
    (14)
    (22)
    -
    (36)
    Total income
    1,672
    23
    97
    1,792
    Direct expenses
     - staff
    (277)
    (167)
    -
    (444)
     - other
    (208)
    (85)
    -
    (293)
    Indirect expenses
    (1,179)
    (104)
    -
    (1,283)
    Restructuring costs
     - direct
    (80)
    -
    -
    (80)
     - indirect
    (98)
    (7)
    -
    (105)
    Litigation and conduct costs
    (162)
    -
    -
    (162)
    Write-down of goodwill
    (130)
    -
    -
    (130)
    Operating expenses
    (2,134)
    (363)
    -
    (2,497)
    Operating (loss)/profit before impairment releases
    (462)
    (340)
    97
    (705)
    Impairment releases
    1
    1,306
    -
    1,307
    Operating (loss)/profit 
    (461)
    966
    97
    602
    Memo:
    Total income - adjusted (1)
    1,686
    45
    97
    1,828
    Operating expenses - adjusted (2)
    (1,664)
    (356)
    -
    (2,020)
    Operating profit - adjusted (1,2)
    23
    995
    97
    1,115
    Key metrics
    Net interest margin
    1.05%
    nm
    nm
    0.67%
    Net interest margin excluding central IEAs
    1.16%
    nm
    nm
    0.72%
    Loan impairment charge as % of gross customer loans and advances
    -
    (6.1%)
    nm
    (2.0%)
    31 December 2014
    Total
    Allocated from
    Capital
    CIB
    RCR
    Centre
    Resolution
    Capital and balance sheet
    bn
    bn
    bn
    bn
    Loans and advances to customers (gross)
    42.1
    21.9
    -
    64.0
    Loan impairment provisions
    (0.2)
    (10.9)
    -
    (11.1)
    Net loans and advances to customers
    41.9
    11.0
    -
    52.9
    Funded assets
    99.7
    14.9
    1.0
    115.6
    Risk elements in lending
    0.2
    15.4
    -
    15.6
    Customer deposits (excluding repos)
    35.2
    1.2
    -
    36.4
    Loan:deposit ratio (excluding repos)
    119%
    nm
    nm
    nm
    Provision coverage (3)
    96%
    nm
    nm
    71%
    Risk-weighted assets 
    67.0
    22.0
    6.1
    95.1
    Notes:
    (1)
    Excluding own credit adjustments
    (2)
    Excluding restructuring costs and litigation and conduct costs.
    (3)
    Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.
    Williams & Glyn
    Quarter ended
    30 September 2015
    All allocated from UK PBB
    Income statement (1)
    m
    Net interest income
    167
    Non-interest income
    44
    Total income
    211
    Direct expenses
     - staff
    (55)
     - other
    (12)
    Indirect expenses
    (24)
    Operating expenses
    (91)
    Operating profit before impairment losses
    120
    Impairment losses
    (5)
    Operating profit 
    115
    Key metrics
    Net interest margin
    2.88%
    Net interest margin excluding central IEAs
    3.40%
    Cost:income ratio 
    43%
    Loan impairment charge as % of gross customer loans and advances
    0.1%
    30 September 2015
    All allocated from UK PBB
    Capital and balance sheet (1)
    bn
    Loans and advances to customers (gross)
    20.3
    Loan impairment provisions
    (0.3)
    Net loans and advances to customers
    20.0
    Funded assets
    24.0
    Risk elements in lending
    0.5
    Customer deposits (excluding repos)
    23.6
    Loan:deposit ratio (excluding repos)
    85%
    Provision coverage (2)
    59%
    Risk-weighted assets 
    10.1
    Notes:
    (1)
    Does not reflect the cost base, funding and capital profile of a standalone bank. Operating expenses include charges based on an attribution of support provided by RBS to Williams & Glyn.
    (2)
    Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.

    Williams & Glyn
    Quarter ended 
    31 December 2014
    All allocated from UK PBB
    Income statement (1)
    m 
    Net interest income
    167
    Non-interest income
    49
    Total income
    216
    Direct expenses
     - staff
    (49)
     - other
    (10)
    Indirect expenses
    (25)
    Operating expenses
    (84)
    Operating profit before impairment losses
    132
    Impairment losses
    (9)
    Operating profit 
    123
    Key metrics
    Net interest margin
    2.92%
    Net interest margin excluding central IEAs
    3.42%
    Cost:income ratio 
    39%
    Loan impairment charge as % of gross customer loans and advances
    0.2%
    31 December 2014
    All allocated from UK PBB
    Capital and balance sheet (1)
    bn
    Loans and advances to customers (gross)
    19.9
    Loan impairment provisions
    (0.4)
    Net loans and advances to customers
    19.5
    Funded assets
    23.6
    Risk elements in lending
    0.6
    Customer deposits (excluding repos)
    22.0
    Loan:deposit ratio (excluding repos)
    88%
    Provision coverage (2)
    61%
    Risk-weighted assets 
    10.1
     
    Notes:
    (1)
    Does not reflect the cost base, funding and capital profile of a standalone bank. Operating expenses include charges based on an attribution of support provided by RBS to Williams & Glyn.
    (2)
    Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.

    Williams & Glyn
    Year end
    31 December 2014
    All allocated from UK PBB
    Income statement (1)
    m
    Net interest income
    664
    Non-interest income
    188
    Total income
    852
    Direct expenses
     - staff
    (196)
     - other
    (36)
    Indirect expenses
    (98)
    Operating expenses
    (330)
    Operating profit before impairment losses
    522
    Impairment losses
    (55)
    Operating profit 
    467
    Key metrics
    Net interest margin
    2.93%
    Net interest margin excluding central IEAs
    3.42%
    Cost:income ratio 
    39%
    Loan impairment charge as % of gross customer loans and advances
    0.3%
    31 December 2014
    All allocated from UK PBB
    Capital and balance sheet (1)
    bn
    Loans and advances to customers (gross)
    19.9
    Loan impairment provisions
    (0.4)
    Net loans and advances to customers
    19.5
    Funded assets
    23.6
    Risk elements in lending
    0.6
    Customer deposits (excluding repos)
    22.0
    Loan:deposit ratio (excluding repos)
    88%
    Provision coverage (2)
    61%
    Risk-weighted assets 
    10.1
    Notes:
    (1)
    Does not reflect the cost base, funding and capital profile of a standalone bank. Operating expenses include charges based on an attribution of support provided by RBS to Williams & Glyn.
    (2)
    Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.
    Appendix 3
    Allocation of previous segments to new customer segments
    Allocation of previous segments to new customer segments
    The tables in this appendix summarise the performance of the previously reported segments, as adjusted for the reporting changes outlined on page 2, and show how these segments have been allocated to the new reportable segments.
    UK PBB
    Quarter ended 30 September 2015
    Previously
    Reporting
    Allocated to
    reported
    changes (1)
    W&G
    UK PBB
    Income statement
    m 
    m 
    m 
    m 
    Net interest income
    1,170
    15
    167
    1,018
    Non-interest income
    289
    -
    44
    245
    Total income
    1,459
    15
    211
    1,263
    Direct expenses
     - staff
    (238)
    -
    (55)
    (183)
     - other
    (81)
    -
    (12)
    (69)
    Indirect expenses
    (466)
    -
    (24)
    (442)
    Restructuring costs
     - direct
    (5)
    -
    -
    (5)
     - indirect
    (22)
    -
    -
    (22)
    Litigation and conduct costs
    2
    -
    -
    2
    Operating expenses
    (810)
    -
    (91)
    (719)
    Operating profit before impairment losses
    649
    15
    120
    544
    Impairment losses
    (11)
    -
    (5)
    (6)
    Operating profit 
    638
    15
    115
    538
    Memo:
    Operating expenses - adjusted (2)
    (785)
    -
    (91)
    (694)
    Operating profit - adjusted (2)
    663
    15
    115
    563
    Key metrics
    Net interest margin
    nm
    2.88%
    3.19%
    Net interest margin excluding central IEAs 
    3.54%
    3.40%
    3.61%
    Cost:income ratio
    56%
    43%
    57%
    Cost:income ratio - adjusted (2)
    54%
    43%
    55%
    30 September 2015
    Previously
    Reporting
    Allocated to
    reported
    changes (1)
    W&G
    UK PBB
    Capital and balance sheet
    bn
    bn
    bn
    bn
    Loans and advances to customers (gross)
    134.5
    -
    20.3
    114.2
    Loan impairment provisions
    (2.0)
    -
    (0.3)
    (1.7)
    Net loans and advances to customers
    132.5
    -
    20.0
    112.5
    Funded assets
    139.1
    20.4
    24.0
    135.5
    Risk elements in lending
    3.0
    -
    0.5
    2.5
    Customer deposits (excluding repos)
    152.9
    -
    23.6
    129.3
    Loan:deposit ratio (excluding repos)
    87%
    -
    85%
    87%
    Provision coverage (3)
    66%
    -
    59%
    68%
    Risk-weighted assets
    39.4
    1.2
    10.1
    30.5
    Notes:
    (1)
    Refer to page 2 for further details.
    (2)
    Excluding restructuring costs and litigation and conduct costs.
    (3)
    Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.

    UK PBB
    Quarter ended 31 December 2014
    Previously
    Reporting 
    Allocated to
    reported
    changes (1)
    W&G
    UK PBB
    Income statement
    m 
    m 
    m 
    m 
    Net interest income
    1,209
    6
    167
    1,048
    Non-interest income
    323
    -
    49
    274
    Total income
    1,532
    6
    216
    1,322
    Direct expenses
     - staff
    (232)
    -
    (49)
    (183)
     - other
    (86)
    -
    (10)
    (76)
    Indirect expenses
    (548)
    -
    (25)
    (523)
    Restructuring costs
     - direct 
    (2)
    -
    -
    (2)
     - indirect
    (16)
    -
    -
    (16)
    Litigation and conduct costs
    (650)
    -
    -
    (650)
    Operating expenses
    (1,534)
    -
    (84)
    (1,450)
    Operating (loss)/profit before impairment losses
    (2)
    6
    132
    (128)
    Impairment losses
    (41)
    -
    (9)
    (32)
    Operating (loss)/profit 
    (43)
    6
    123
    (160)
    Memo:
    Operating expenses - adjusted (2)
    (866)
    -
    (84)
    (782)
    Operating profit - adjusted (2)
    625
    6
    123
    508
    Key metrics
    Net interest margin
    nm
    2.92%
    3.38%
    Net interest margin excluding central IEAs 
    3.74% 
    3.42%
    3.82%
    Cost:income ratio
    100%
    39%
    110%
    Cost:income ratio - adjusted (2)
    57%
    39%
    59%
    31 December 2014
    Previously
    Reporting
    Allocated to
    reported
    changes (1)
    W&G
    UK PBB
    Capital and balance sheet
    bn
    bn
    bn
    bn
    Loans and advances to customers (gross)
    129.8
    -
    19.9
    109.9
    Loan impairment provisions
    (2.6)
    -
    (0.4)
    (2.2)
    Net loans and advances to customers
    127.2
    -
    19.5
    107.7
    Funded assets
    134.3
    21.6
    23.6
    132.3
    Risk elements in lending
    3.8
    -
    0.6
    3.2
    Customer deposits (excluding repos)
    148.7
    -
    22.0
    126.7
    Loan:deposit ratio (excluding repos)
    86%
    -
    88%
    85%
    Provision coverage (3)
    69%
    -
    61%
    70%
    Risk-weighted assets
    42.8
    1.0
    10.1
    33.7
    Notes:
    (1)
    Refer to page 2 for further details.
    (2)
    Excluding restructuring costs and litigation and conduct costs.
    (3)
    Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.

    UK PBB
    Year ended 31 December 2014
    Previously
    Reporting
    Allocated to
    reported
    changes (1)
    W&G
    UK PBB
    Income statement
    m 
    m 
    m 
    m 
    Net interest income
    4,683
    33
    664
    4,052
    Non-interest income
    1,354
    -
    188
    1,166
    Total income
    6,037
    33
    852
    5,218
    Direct expenses
     - staff
    (937)
    -
    (196)
    (741)
     - other
    (391)
    -
    (36)
    (355)
    Indirect expenses
    (1,971)
    -
    (98)
    (1,873)
    Restructuring costs
     - direct
    (10)
    -
    -
    (10)
     - indirect
    (92)
    -
    -
    (92)
    Litigation and conduct costs
    (918)
    -
    -
    (918)
    Operating expenses
    (4,319)
    -
    (330)
    (3,989)
    Operating profit before impairment losses
    1,718
    33
    522
    1,229
    Impairment losses
    (268)
    -
    (55)
    (213)
    Operating profit 
    1,450
    33
    467
    1,016
    Memo:
    Operating expenses - adjusted (2)
    (3,299)
    -
    (330)
    (2,969)
    Operating profit - adjusted (2)
    2,470
    33
    467
    2,036
    Key metrics
    Net interest margin
    nm
    2.93%
    3.32%
    Net interest margin excluding central IEAs 
    3.68%
    3.42%
    3.75%
    Cost:income ratio
    72%
    39%
    76%
    Cost:income ratio - adjusted (2)
    55%
    39%
    57%
    31 December 2014
    Previously
    Reporting
    Allocated to
    reported
    changes (1)
    W&G
    UK PBB
    Capital and balance sheet
    bn
    bn
    bn
    bn
    Loans and advances to customers (gross)
    129.8
    -
    19.9
    109.9
    Loan impairment provisions
    (2.6)
    -
    (0.4)
    (2.2)
    Net loans and advances to customers
    127.2
    -
    19.5
    107.7
    Funded assets
    134.3
    21.6
    23.6
    132.3
    Risk elements in lending
    3.8
    -
    0.6
    3.2
    Customer deposits (excluding repos)
    148.7
    -
    22.0
    126.7
    Loan:deposit ratio (excluding repos)
    86%
    -
    88%
    85%
    Provision coverage (3)
    69%
    -
    61%
    70%
    Risk-weighted assets
    42.8
    1.0
    10.1
    33.7
    Notes:
    (1)
    Refer to page 2 for further details.
    (2)
    Excluding restructuring costs and litigation and conduct costs.
    (3)
    Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.
    Ulster Bank
    Quarter ended 30 September 2015
    Allocated to
    Previously
    Reporting
    Ulster Bank
    reported
    changes (1)
    UK PBB
    RoI 
    Income statement
    m 
    m 
    m 
    m 
    Net interest income
    127
    -
    37
    90
    Non-interest income
    87
    -
    13
    74
    Total income
    214
    -
    50
    164
    Direct expenses
     - staff
    (59)
    -
    (19)
    (40)
     - other
    (21)
    -
    1
    (22)
    Indirect expenses
    (70)
    -
    (22)
    (48)
    Restructuring costs
     - direct
    (3)
    -
    -
    (3)
     - indirect
    (3)
    -
    (1)
    (2)
    Litigation and conduct costs
    (2)
    -
    (2)
    -
    Operating expenses
    (158)
    -
    (43)
    (115)
    Operating profit before impairment releases
    56
    -
    7
    49
    Impairment releases
    58
    -
    4
    54
    Operating profit 
    114
    -
    11
    103
    Memo:
    Operating expenses - adjusted (2)
    (150)
    -
    (40)
    (110)
    Operating profit - adjusted (2)
    122
    -
    14
    108
    Key metrics
    Net interest margin
    nm
    3.18%
    1.52%
    Net interest margin excluding central IEAs 
    1.81%
    3.36%
    1.52%
    Cost:income ratio
    74%
    86%
    70%
    Cost:income ratio - adjusted (2)
    70%
    80%
    67%
    30 September 2015
    Allocated to
    Previously
    Reporting
    Ulster Bank
    reported
    changes (1)
    UK PBB
    RoI
    Capital and balance sheet
    bn
    bn
    bn
    bn
    Loans and advances to customers (gross)
    22.9
    -
    4.1
    18.8
    Loan impairment provisions
    (2.3)
    -
    (0.3)
    (2.0)
    Net loans and advances to customers
    20.6
    -
    3.8
    16.8
    Funded assets
    27.9
    0.2
    5.2
    22.9
    Risk elements in lending
    4.0
    -
    0.4
    3.6
    Customer deposits (excluding repos)
    19.2
    -
    5.6
    13.6
    Loan:deposit ratio (excluding repos)
    108%
    -
    68%
    123%
    Provision coverage (3)
    58%
    -
    88%
    54%
    Risk-weighted assets
    21.5
    0.9
    2.8
    19.6
    Notes:
    (1)
    Refer to page 2 for further details.
    (2)
    Excluding restructuring costs and litigation and conduct costs.
    (3)
    Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.

    Ulster Bank
    Quarter ended 31 December 2014
    Allocated to
    Previously
    Reporting
    Ulster Bank
    reported
    changes (1)
    UK PBB
    RoI 
    Income statement
    m 
    m 
    m 
    m 
    Net interest income
    150
    -
    38
    112
    Non-interest income
    54
    -
    14
    40
    Total income
    204
    -
    52
    152
    Direct expenses
     - staff
    (65)
    -
    (22)
    (43)
     - other
    (19)
    -
    4
    (23)
    Indirect expenses
    (78)
    -
    (25)
    (53)
    Restructuring costs
     - indirect
    4
    -
    2
    2
    Litigation and conduct costs
    19
    -
    -
    19
    Operating expenses
    (139)
    -
    (41)
    (98)
    Operating profit before impairment releases
    65
    -
    11
    54
    Impairment releases
    104
    -
    34
    70
    Operating profit 
    169
    -
    45
    124
    Memo:
    Operating expenses - adjusted (2)
    (162)
    -
    (43)
    (119)
    Operating profit - adjusted (2)
    146
    -
    43
    103
    Key metrics
    Net interest margin
    nm
    3.11%
    1.90%
    Net interest margin excluding central IEAs 
    2.14%
    3.38%
    1.90%
    Cost:income ratio
    68%
    79%
    64%
    Cost:income ratio - adjusted (2)
    79%
    83%
    78%
    31 December 2014
    Allocated to
    Previously
    Reporting
    Ulster Bank
    reported
    changes (1)
    UK PBB
    RoI
    Capital and balance sheet
    bn
    bn
    bn
    bn
    Loans and advances to customers (gross)
    24.7
    -
    4.2
    20.5
    Loan impairment provisions
    (2.7)
    -
    (0.3)
    (2.4)
    Net loans and advances to customers
    22.0
    -
    3.9
    18.1
    Funded assets
    27.5
    0.4
    5.5
    22.4
    Risk elements in lending
    4.8
    -
    0.4
    4.4
    Customer deposits (excluding repos)
    20.6
    -
    5.9
    14.7
    Loan:deposit ratio (excluding repos)
    107%
    -
    66%
    124%
    Provision coverage (3)
    57%
    -
    80%
    55%
    Risk-weighted assets 
    23.8
    0.9
    2.9
    21.8
    Notes:
    (1)
    Refer to page 2 for further details.
    (2)
    Excluding restructuring costs and litigation and conduct costs.
    (3)
    Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.

    Ulster Bank
    Year ended 31 December 2014
    Allocated to
    Previously
    Reporting
    Ulster Bank
    reported
    changes (1)
    UK PBB
    RoI 
    Income statement
    m 
    m 
    m 
    m 
    Net interest income
    636
    -
    169
    467
    Non-interest income
    194
    -
    57
    137
    Total income
    830
    -
    226
    604
    Direct expenses
     - staff
    (247)
    -
    (83)
    (164)
     - other
    (74)
    -
    9
    (83)
    Indirect expenses
    (265)
    -
    (85)
    (180)
    Restructuring costs
     - direct
    8
    -
    -
    8
     - indirect
    (30)
    -
    (9)
    (21)
    Litigation and conduct costs
    19
    -
    -
    19
    Operating expenses
    (589)
    -
    (168)
    (421)
    Operating profit before impairment releases
    241
    -
    58
    183
    Impairment releases
    365
    -
    59
    306
    Operating profit 
    606
    -
    117
    489
    Memo:
    Operating expenses - adjusted (2)
    (586)
    -
    (159)
    (427)
    Operating profit - adjusted (2)
    609
    -
    126
    483
    Key metrics
    Net interest margin
    nm
    3.45% 
    1.92% 
    Net interest margin excluding central IEAs 
    2.27%
    3.75% 
    1.99% 
    Cost:income ratio
    71%
    74% 
    70% 
    Cost:income ratio - adjusted (2)
    71%
    70% 
    71% 
    31 December 2014
    Allocated to
    Previously
    Reporting
    Ulster Bank
    reported
    changes (1)
    UK PBB
    RoI 
    Capital and balance sheet
    bn
    bn
    bn
    bn
    Loans and advances to customers (gross)
    24.7
    -
    4.2
    20.5
    Loan impairment provisions
    (2.7)
    -
    (0.3)
    (2.4)
    Net loans and advances to customers
    22.0
    -
    3.9
    18.1
    Funded assets
    27.5
    0.4
    5.5
    22.4
    Risk elements in lending
    4.8
    -
    0.4
    4.4
    Customer deposits (excluding repos)
    20.6
    -
    5.9
    14.7
    Loan:deposit ratio (excluding repos)
    107%
    -
    66%
    124%
    Provision coverage (3)
    57%
    -
    80%
    55%
    Risk-weighted assets 
    23.8
    0.9
    2.9
    21.8
    Notes:
    (1)
    Refer to page 2 for further details. 
    (2)
    Excluding restructuring costs and litigation and conduct costs.
    (2)
    Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.
    Commercial Banking
    Quarter ended 30 September 2015
    Allocated to
    Previously
    Reporting
    Commercial
    RBS
    reported
    changes (1)
    Banking
    International
    Income statement
    m 
    m 
    m 
    m 
    Net interest income
    565
    (21)
    471
    73
    Non-interest income
    265
    -
    251
    14
    Total income
    830
    (21)
    722
    87
    Direct expenses
     - staff
    (122)
    -
    (113)
    (9)
     - other
    (22)
    -
    (19)
    (3)
     - operating lease costs
    (34)
    -
    (34)
    -
    Indirect expenses
    (224)
    -
    (200)
    (24)
    Restructuring costs
     - direct
    (1)
    -
    (1)
    -
     - indirect
    -
    -
    2
    (2)
    Operating expenses
    (403)
    -
    (365)
    (38)
    Operating profit before impairment (losses)/releases
    427
    (21)
    357
    49
    Impairment (losses)/releases
    (15)
    -
    (16)
    1
    Operating profit 
    412
    (21)
    341
    50
    Memo:
    Operating expenses - adjusted (2)
    (402)
    -
    (366)
    (36)
    Operating profit - adjusted (2)
    413
    (21)
    340
    52
    Key metrics
    Net interest margin
    nm
    1.87%
    1.43%
    Net interest margin excluding central IEAs
    2.81%
    2.56%
    4.38%
    Cost:income ratio
    49%
    51%
    44%
    Cost:income ratio - adjusted (2)
    48%
    51%
    41%
    30 September 2015
    Allocated to
    Previously
    Reporting
    Commercial
    RBS
    reported
    changes (1)
    Banking
    International
    Capital and balance sheet
    bn
    bn
    bn
    bn
    Loans and advances to customers (gross)
    92.4
    -
    85.3
    7.1
    Loan impairment provisions
    (0.8)
    -
    (0.7)
    (0.1)
    Net loans and advances to customers
    91.6
    -
    84.6
    7.0
    Funded assets
    95.9
    46.0
    119.0
    22.9
    Risk elements in lending
    2.2
    -
    2.1
    0.1
    Customer deposits (excluding repos)
    98.9
    -
    76.6
    22.3
    Loan:deposit ratio (excluding repos)
    93% 
    -
    111% 
    32% 
    Provision coverage (3)
    39% 
    -
    33% 
    58% 
    Risk-weighted assets 
    67.2
    3.2
    62.3
    8.1
    Notes:
    (1)
    Refer to page 2 for further details.
    (2)
    Excluding restructuring costs and litigation and conduct costs.
    (3)
    Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.

    Commercial Banking
    Quarter ended 31 December 2014
    Allocated to
    Previously
    Reporting
    Commercial
    RBS
    reported
    changes (1)
    Banking
    International
    Income statement
    m 
    m 
    m 
    m 
    Net interest income
    521
    -
    475
    46
    Non-interest income
    310
    -
    296
    14
    Total income
    831
    -
    771
    60
    Direct expenses
     - staff
    (118)
    -
    (113)
    (5)
     - other
    (35)
    -
    (33)
    (2)
     - operating lease costs
    (38)
    -
    (38)
    -
    Indirect expenses
    (284)
    -
    (272)
    (12)
    Restructuring costs
     - direct 
    -
    -
    (1)
    1
     - indirect
    (13)
    -
    (12)
    (1)
    Litigation and conduct costs
    (62)
    -
    (62)
    -
    Operating expenses
    (550)
    -
    (531)
    (19)
    Operating profit before impairment losses
    281
    -
    240
    41
    Impairment losses
    (33)
    -
    (31)
    (2)
    Operating profit 
    248
    -
    209
    39
    Memo:
    Operating expenses - adjusted (2)
    (475)
    -
    (456)
    (19)
    Operating profit - adjusted (2)
    323
    -
    284
    39
    Key metrics
    Net interest margin
    nm
    1.96%
    1.45%
    Net interest margin excluding central IEAs
    2.77%
    2.68%
    4.16%
    Cost:income ratio
    66%
    69%
    32%
    Cost:income ratio - adjusted (2)
    57%
    59%
    32%
    31 December 2014
    Allocated to
    Previously
    Reporting
    Commercial
    RBS
    reported
    changes (1)
    Banking
    International
    Capital and balance sheet
    bn
    bn
    bn
    bn
    Loans and advances to customers (gross)
    86.1
    -
    81.4
    4.7
    Loan impairment provisions
    (1.0)
    -
    (0.9)
    (0.1)
    Net loans and advances to customers
    85.1
    -
    80.5
    4.6
    Funded assets
    89.4
    47.8
    117.0
    20.2
    Risk elements in lending
    2.5
    -
    2.4
    0.1
    Customer deposits (excluding repos)
    86.8
    -
    72.5
    14.3
    Loan:deposit ratio (excluding repos)
    98%
    -
    111%
    32%
    Provision coverage (3)
    38%
    -
    39%
    41%
    Risk-weighted assets 
    64.0
    3.5
    61.2
    6.3
    Notes:
    (1)
    Refer to page 2 for further details.
    (2)
    Excluding restructuring costs and litigation and conduct costs. 
    (3)
    Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.

    Commercial Banking
    Year ended 31 December 2014
    Allocated to
    Previously
    Reporting
    Commercial
    RBS
    reported
    changes (1)
    Banking
    International
    Income statement
    m 
    m 
    m 
    m 
    Net interest income
    2,041
    -
    1,865
    176
    Non-interest income
    1,169
    -
    1,117
    52
    Total income
    3,210
    -
    2,982
    228
    Direct expenses
     - staff
    (508)
    -
    (489)
    (19)
     - other
    (108)
    -
    (98)
    (10)
     - operating lease costs
    (141)
    -
    (141)
    -
    Indirect expenses
    (882)
    -
    (835)
    (47)
    Restructuring costs
     - direct
    (40)
    -
    (41)
    1
     - indirect
    (53)
    -
    (52)
    (1)
    Litigation and conduct costs
    (112)
    -
    (112)
    -
    Operating expenses
    (1,844)
    -
    (1,768)
    (76)
    Operating profit before impairment (losses)/releases
    1,366
    -
    1,214
    152
    Impairment (losses)/releases
    (76)
    -
    (84)
    8
    Operating profit 
    1,290
    -
    1,130
    160
    Memo:
    Operating expenses - adjusted (2)
    (1,639)
    -
    (1,563)
    (76)
    Operating profit - adjusted (2)
    1,495
    -
    1,335
    160
    Key metrics
    Net interest margin
    nm
    1.93%
    1.42%
    Net interest margin excluding central IEAs
    2.74%
    2.65%
    4.18%
    Cost:income ratio
    57%
    59%
    33%
    Cost:income ratio - adjusted (2)
    51%
    52%
    33%
    31 December 2014
    Allocated to
    Previously
    Reporting
    Commercial
    RBS
    reported
    changes (1)
    Banking
    International
    Capital and balance sheet
    bn
    bn
    bn
    bn
    Loans and advances to customers (gross)
    86.1
    -
    81.4
    4.7
    Loan impairment provisions
    (1.0)
    -
    (0.9)
    (0.1)
    Net loans and advances to customers
    85.1
    -
    80.5
    4.6
    Funded assets
    89.4
    47.8
    117.0
    20.2
    Risk elements in lending
    2.5
    -
    2.4
    0.1
    Customer deposits (excluding repos)
    86.8
    -
    72.5
    14.3
    Loan:deposit ratio (excluding repos)
    98%
    -
    111%
    32%
    Provision coverage (3)
    38%
    -
    38%
    41%
    Risk-weighted assets 
    64.0
    3.5
    61.2
    6.3
    Notes:
    (1)
    Refer to page 2 for further details. 
    (2)
    Excluding restructuring costs and litigation and conduct costs. 
    (3)
    Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.
    Private Banking
    Quarter ended 30 September 2015
    Allocated to
    Previously
    Reporting
    Private
    RBS
    Central items
    reported
    changes (1)
    Banking
    International
    & other
    Income statement
    m 
    m 
    m 
    m 
    m 
    Net interest income
    123
    2
    109
    -
    16
    Non-interest income
    81
    -
    51
    -
    30
    Total income
    204
    2
    160
    -
    46
    Direct expenses
     - staff
    (66)
    -
    (43)
    -
    (23)
     - other
    (23)
    -
    (11)
    -
    (12)
    Indirect expenses
    (95)
    -
    (65)
    -
    (30)
    Restructuring costs
     - direct
    2
    -
    2
    -
    -
     - indirect
    (3)
    -
    (1)
    -
    (2)
    Operating expenses
    (185)
    -
    (118)
    -
    (67)
    Operating profit/(loss) before impairment losses
    19
    2
    42
    -
    (21)
    Impairment losses
    (4)
    -
    (4)
    -
    -
    Operating profit/(loss)
    15
    2
    38
    -
    (21)
    Memo:
    Operating expenses - adjusted (2)
    (184)
    -
    (119)
    -
    (65)
    Operating profit/(loss) - adjusted (2)
    16
    37
    -
    (19)
    Key metrics
    Net interest margin
    nm
    2.72%
    -
    1.40%
    Net interest margin excluding central IEAs
    3.14%
    3.92%
    -
    1.40%
    Cost:income ratio
    91%
    74%
    -
    146%
    Cost:income ratio - adjusted (2)
    90%
    74%
    -
    141%
    30 September 2015
    Allocated to
    Previously
    Reporting
    Private
    RBS
    Central items
    reported
    changes (1)
    Banking
    International
    & other
    Capital and balance sheet
    bn
    bn
    bn
    bn
    bn
    Loans and advances to customers (gross)
    13.6
    -
    11.1
    -
    2.5
    Loan impairment provisions
    (0.1)
    -
    -
    -
    (0.1)
    Net loans and advances to customers
    13.5
    -
    11.1
    -
    2.4
    Funded assets
    16.7
    5.3
    17.4
    -
    4.6
    Risk elements in lending
    0.1
    -
    0.1
    -
    -
    Customer deposits (excluding repos)
    29.1
    -
    22.7
    -
    6.4
    Loan:deposit ratio (excluding repos)
    46%
    -
    49%
    -
    38%
    Provision coverage (3)
    44%
    -
    32%
    -
    100%
    Risk-weighted assets 
    9.8
    0.3
    8.4
    -
    1.7
    Notes:
    (1)
    Refer to page 2 for further details.
    (2)
    Excluding restructuring costs and litigation and conduct costs.
    (3)
    Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.

    Private Banking
    Quarter ended 31 December 2014
    Allocated to
    Previously
    Reporting
    Private
    RBS
    Central items
    reported
    changes (1)
    Banking
    International
    & other
    Income statement
    m 
    m 
    m 
    m 
    m 
    Net interest income
    175
    -
    116
    37
    22
    Non-interest income
    92
    -
    54
    4
    34
    Total income
    267
    -
    170
    41
    56
    Direct expenses
     - staff
    (75)
    -
    (44)
    (6)
    (25)
     - other
    (21)
    -
    (12)
    -
    (9)
    Indirect expenses
    (132)
    -
    (90)
    (11)
    (31)
    Restructuring costs
     - direct
    (6)
    -
    (1)
    (1)
    (4)
     - indirect
    (2)
    -
    -
    (1)
    (1)
    Litigation and conduct costs
    (90)
    -
    (90)
    -
    -
    Operating expenses
    (326)
    -
    (237)
    (19)
    (70)
    Operating (loss)/profit before impairment
    releases/(losses)
    (59)
    -
    (67)
    22
    (14)
    Impairment releases/(losses)
    -
    -
    1
    (1)
    -
    Operating (loss)/profit 
    (59)
    -
    (66)
    21
    (14)
    Memo:
    Operating expenses - adjusted (2)
    (228)
    -
    (146)
    (17)
    (65)
    Operating profit/(loss) - adjusted (2)
    39
    -
    25
    23
    (9)
    Key metrics
    Net interest margin
    nm
    2.91%
    2.07%
    1.74%
    Net interest margin excluding central IEAs
    3.74%
    4.17%
    5.79%
    1.74%
    Cost:income ratio
    122%
    139%
    46%
    125%
    Cost:income ratio - adjusted (2)
    85%
    86%
    41%
    116%
    31 December 2014
    Allocated to
    Previously
    Reporting
    Private
    RBS
    Central items
    reported
    changes (1)
    Banking
    International
    & other
    Capital and balance sheet
    bn
    bn
    bn
    bn
    bn
    Loans and advances to customers (gross)
    16.6
    -
    11.0
    2.6
    3.0
    Loan impairment provisions
    (0.1)
    -
    -
    -
    (0.1)
    Net loans and advances to customers
    16.5
    -
    11.0
    2.6
    2.9
    Funded assets
    20.4
    6.0
    17.7
    3.2
    5.5
    Risk elements in lending
    0.2
    -
    0.1
    0.1
    -
    Customer deposits (excluding repos)
    36.1
    -
    22.3
    6.5
    7.3
    Loan:deposit ratio (excluding repos)
    46%
    -
    49%
    40%
    41%
    Provision coverage (3)
    34%
    -
    25%
    30%
    100%
    Risk-weighted assets 
    11.5
    0.6
    8.7
    1.2
    2.2
    Notes:
    (1)
    Refer to page 2 for further details.
    (2)
    Excluding restructuring costs and litigation and conduct costs.
    (3)
    Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.

    Private Banking
    Year ended 31 December 2014
    Allocated to
    Previously
    Reporting
    Private
    RBS
    Central items
    reported
    changes (1)
    Banking
    International
    & other
    Income statement
    m 
    m 
    m 
    m 
    m 
    Net interest income
    691
    -
    454
    147
    90
    Non-interest income
    391
    -
    235
    16
    140
    Total income
    1,082
    -
    689
    163
    230
    Direct expenses
     - staff
    (302)
    -
    (178)
    (25)
    (99)
     - other
    (68)
    -
    (37)
    (5)
    (26)
    Indirect expenses
    (458)
    -
    (289)
    (47)
    (122)
    Restructuring costs
     - direct
    (8)
    -
    (1)
    (3)
    (4)
     - indirect
    (10)
    -
    -
    (4)
    (6)
    Litigation and conduct costs
    (90)
    -
    (90)
    -
    -
    Operating expenses
    (936)
    -
    (595)
    (84)
    (257)
    Operating profit/(loss) before impairment
    releases/(losses)
    146
    -
    94
    79
    (27)
    Impairment releases/(losses)
    4
    -
    5
    (1)
    -
    Operating profit/(loss)
    150
    -
    99
    78
    (27)
    Memo:
    Operating expenses - adjusted (2)
    (828)
    -
    (504)
    (77)
    (247)
    Operating profit/(loss) - adjusted (2)
    258
    -
    190
    85
    (17)
    Key metrics
    Net interest margin
    nm
    2.89%
    2.20%
    1.75%
    Net interest margin excluding central IEAs
    3.71%
    4.12%
    5.94%
    1.75%
    Cost:income ratio
    87%
    86%
    52%
    112%
    Cost:income ratio - adjusted (2)
    77%
    73%
    47%
    107%
    31 December 2014
    Allocated to
    Previously
    Reporting
    Private
    RBS
    Central items
    reported
    changes (1)
    Banking
    International
    & other
    Capital and balance sheet
    bn
    bn
    bn
    bn
    bn
    Loans and advances to customers (gross)
    16.6
    -
    11.0
    2.6
    3.0
    Loan impairment provisions
    (0.1)
    -
    -
    -
    (0.1)
    Net loans and advances to customers
    16.5
    -
    11.0
    2.6
    2.9
    Funded assets
    20.4
    6.0
    17.7
    3.2
    5.5
    Risk elements in lending
    0.2
    -
    0.1
    0.1
    -
    Customer deposits (excluding repos)
    36.1
    -
    22.3
    6.5
    7.3
    Loan:deposit ratio (excluding repos)
    46%
    -
    49%
    40%
    41%
    Provision coverage (3)
    34%
    -
    25%
    30%
    100%
    Risk-weighted assets 
    11.5
    0.6
    8.7
    1.2
    2.2
    Notes:
    (1)
    Refer to page 2 for further details.
    (2)
    Excluding restructuring costs and litigation and conduct costs.
    (3)
    Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.
    CIB
    Quarter ended 30 September 2015
    Allocated to
    Previously
    Reporting
    Commercial
    Capital
    reported
    changes (1)
    Banking
    CIB
    Resolution
    Income statement
    m
    m
    m
    m
    m
    Net interest income
    142
    14
    33
    29
    94
    Non-interest income
    295
    -
    45
    299
    (49)
    Own credit adjustments
    -
    116
    -
    78
    38
    Total income
    437
    130
    78
    406
    83
    Direct expenses
     - staff
    (139)
    -
    (4)
    (97)
    (38)
     - other
    (60)
    -
    (1)
    (19)
    (40)
    Indirect expenses
    (510)
    -
    (38)
    (242)
    (230)
    Restructuring costs
     - direct
    (193)
    -
    -
    (3)
    (190)
     - indirect
    (444)
    -
    -
    (148)
    (296)
    Litigation and conduct costs
    (107)
    -
    -
    (6)
    (101)
    Operating expenses
    (1,453)
    -
    (43)
    (515)
    (895)
    Operating (loss)/profit before impairment releases
    (1,016)
    130
    35
    (109)
    (812)
    Impairment releases
    4
    -
    -
    -
    4
    Operating (loss)/profit 
    (1,012)
    130
    35
    (109)
    (808)
    Memo:
    Total income - adjusted (2)
    437
    14
    78
    328
    45
    Operating expenses - adjusted (3)
    (709)
    -
    (43)
    (358)
    (308)
    Operating (loss)/profit - adjusted (2,3)
    (268)
    14
    35
    (30)
    (259)
    Key metrics
    Net interest margin
    nm
    2.22%
    0.62%
    0.93%
    Net interest margin excluding central IEAs
    1.16%
    9.02%
    0.78%
    1.14%
    Cost:income ratio
    332%
    55%
    127%
    nm
    Cost:income ratio - adjusted (2,3)
    162%
    55%
    109%
    nm
    30 September 2015
    Allocated to
    Previously
    Reporting
    Commercial
    Capital
    reported
    changes (1)
    Banking
    CIB
    Resolution
    Capital and balance sheet
    bn
    bn
    bn
    bn
    bn
    Loans and advances to customers (gross)
    50.9
    -
    4.5
    19.8
    26.6
    Loan impairment provisions
    (0.1)
    -
    -
    -
    (0.1)
    Net loans and advances to customers
    50.8
    -
    4.5
    19.8
    26.5
    Funded assets
    177.4
    17.5
    10.6
    125.9
    58.4
    Risk elements in lending
    0.2
    -
    -
    -
    0.2
    Customer deposits (excluding repos)
    47.8
    -
    12.8
    5.9
    29.1
    Loan:deposit ratio (excluding repos)
    106%
    -
    35%
    337%
    91%
    Provision coverage (4)
    65%
    -
    -
    -
    63%
    Risk-weighted assets
    78.0
    3.1
    1.9
    38.8
    40.4
    Notes:
    (1)
    Refer to page 2 for further details.
    (2)
    Excluding own credit adjustments.
    (3)
    Excluding restructuring costs and litigation and conduct costs.
    (4)
    Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.

    CIB
    Quarter ended 31 December 2014
    Allocated to
    Previously
    Reporting
    Commercial
    Capital
    reported
    changes (1)
    Banking
    CIB
    Resolution
    Income statement
    m 
    m 
    m 
    m 
    m 
    Net interest income
    222
    -
    31
    8
    183
    Non-interest income
    469
    -
    47
    248
    174
    Own credit adjustments
    -
    (83)
    -
    (33)
    (50)
    Total income
    691
    (83)
    78
    223
    307
    Direct expenses
     - staff
    (63)
    -
    (2)
    (36)
    (25)
     - other
    (100)
    -
    (2)
    (47)
    (51)
    Indirect expenses
    (659)
    -
    (47)
    (293)
    (319)
    Restructuring costs
     - direct
    (49)
    -
    -
    (3)
    (46)
     - indirect
    (39)
    -
    (4)
    (16)
    (19)
    Litigation and conduct costs
    (382)
    -
    -
    (370)
    (12)
    Operating expenses
    (1,292)
    -
    (55)
    (765)
    (472)
    Operating (loss)/profit before impairment
    (losses)/releases
    (601)
    (83)
    23
    (542)
    (165)
    Impairment (losses)/releases
    (42)
    -
    (1)
    6
    (47)
    Operating (loss)/profit 
    (643)
    (83)
    22
    (536)
    (212)
    Memo:
    Total income - adjusted (2)
    691
    -
    78
    256
    357
    Operating expenses - adjusted (3)
    (822)
    -
    (51)
    (376)
    (395)
    Operating (loss)/profit - adjusted (2,3)
    (173)
    -
    26
    (114)
    (85)
    Key metrics
    Net interest margin
    nm
    2.00%
    0.21%
    1.13%
    Net interest margin excluding central IEAs
    1.11%
    6.88%
    0.16%
    1.25%
    Cost:income ratio
    187%
    71%
    343%
    nm
    Cost:income ratio - adjusted (2,3)
    119%
    65%
    147%
    nm
    31 December 2014
    Allocated to
    Previously
    Reporting
    Commercial
    Capital
    reported
    changes (1)
    Banking
    CIB
    Resolution
    Capital and balance sheet
    bn
    bn
    bn
    bn
    bn
    Loans and advances to customers (gross)
    73.0
    -
    4.4
    26.5
    42.1
    Loan impairment provisions
    (0.2)
    -
    -
    -
    (0.2)
    Net loans and advances to customers
    72.8
    -
    4.4
    26.5
    41.9
    Funded assets
    241.1
    7.2
    10.9
    137.7
    99.7
    Risk elements in lending
    0.2
    -
    -
    -
    0.2
    Customer deposits (excluding repos)
    59.4
    -
    12.4
    11.8
    35.2
    Loan:deposit ratio (excluding repos)
    122% 
    -
    35% 
    226% 
    119% 
    Provision coverage (4)
    105% 
    -
    -
    -
    96% 
    Risk-weighted assets
    107.1
    3.8
    2.0
    41.9
    67.0
    Notes:
    (1)
    Refer to page 2 for further details. 
    (2)
    Excluding own credit adjustments.
    (3)
    Excluding restructuring costs and litigation and conduct costs.
    (4)
    Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.

    CIB
    Year end 31 December 2014
    Allocated to
    Previously
    Reporting 
    Commercial
    Capital
    reported
    changes (1)
    Banking
    CIB
    Resolution
    Income statement
    m 
    m 
    m 
    m 
    m 
    Net interest income
    817
    -
    111
    (11)
    717
    Non-interest income
    3,132
    -
    212
    1,951
    969
    Own credit adjustments
    -
    (23)
    -
    (9)
    (14)
    Total income
    3,949
    (23)
    323
    1,931
    1,672
    Direct expenses
     - staff
    (729)
    -
    (6)
    (446)
    (277)
     - other
    (400)
    -
    (2)
    (190)
    (208)
    Indirect expenses
    (2,432)
    -
    (173)
    (1,080)
    (1,179)
    Restructuring costs
     - direct
    (93)
    -
    -
    (13)
    (80)
     - indirect
    (202)
    -
    (15)
    (89)
    (98)
    Litigation and conduct costs
    (994)
    -
    -
    (832)
    (162)
    Write-down of goodwill
    -
    (130)
    -
    -
    (130)
    Operating expenses
    (4,850)
    (130)
    (196)
    (2,650)
    (2,134)
    Operating (loss)/profit before impairment
     releases/(losses)
    (901)
    (153)
    127
    (719)
    (462)
    Impairment releases/(losses)
    9
    -
    (1)
    9
    1
    Operating (loss)/profit 
    (892)
    (153)
    126
    (710)
    (461)
    Memo:
    Total income - adjusted (2)
    3,949
    -
    323
    1,940
    1,686
    Operating expenses - adjusted (3)
    (3,561)
    -
    (181)
    (1,716)
    (1,664)
    Operating profit - adjusted (2,3)
    397
    -
    141
    233
    23
     
    Key metrics
    Net interest margin
    nm
    -
    (0.07%)
    1.05%
    Net interest margin excluding central IEAs
    0.99%
    5.92%
    (0.06%)
    1.16%
    Cost:income ratio
    123%
    61%
    137%
    nm
    Cost:income ratio - adjusted (2,3)
    90%
    56%
    88%
    nm
    31 December 2014
    Allocated to
    Previously
    Reporting
    Commercial
    Capital
    reported
    changes (1)
    Banking
    CIB
    Resolution
    Capital and balance sheet
    bn
    bn
    bn
    bn
    bn
    Loans and advances to customers (gross)
    73.0
    -
    4.4
    26.5
    42.1
    Loan impairment provisions
    (0.2)
    -
    -
    -
    (0.2)
    Net loans and advances to customers
    72.8
    -
    4.4
    26.5
    41.9
    Funded assets
    241.1
    7.2
    10.9
    137.7
    99.7
    Risk elements in lending
    0.2
    -
    -
    -
    0.2
    Customer deposits (excluding repos)
    59.4
    -
    12.4
    11.8
    35.2
    Loan:deposit ratio (excluding repos)
    122%
    -
    35%
    226%
    119%
    Provision coverage (4)
    105%
    -
    -
    -
    96%
    Risk-weighted assets
    107.1
    3.8
    2.0
    41.9
    67.0
    Notes:
    (1)
    Refer to page 2 for further details. 
    (2)
    Excluding own credit adjustments.
    (3)
    Excluding restructuring costs and litigation and conduct costs.
    (4)
    Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.
    RCR
    Quarter ended 30 September 2015
    Allocated to
    Previously
    Reporting
    Capital
    reported
    changes (1)
    Resolution
    Income statement
    m 
    m 
    m 
    Net interest income
    (17)
    -
    (17)
    Non-interest income
    (3)
    -
    (3)
    Total income
    (20)
    -
    (20)
    Direct expenses
     - staff
    (22)
    -
    (22)
     - other
    (1)
    -
    (1)
    Indirect expenses
    (15)
    -
    (15)
    Restructuring costs
     - indirect
    (4)
    -
    (4)
    Operating expenses
    (42)
    -
    (42)
    Operating loss before impairment releases
    (62)
    -
    (62)
    Impairment releases
    46
    -
    46
    Operating loss 
    (16)
    -
    (16)
    Memo:
    Operating expenses - adjusted (2)
    (38)
    -
    (38)
    Operating loss - adjusted (2)
    (12)
    -
    (12)
    30 September 2015
    Allocated to
    Previously
    Reporting
    Capital
    reported
    changes (1)
    Resolution
    Capital and balance sheet
    bn
    bn
    bn
    Loans and advances to customers (gross)
    8.2
    -
    8.2
    Loan impairment provisions
    (3.9)
    -
    (3.9)
    Net loans and advances to customers
    4.3
    -
    4.3
    Funded assets
    6.5
    -
    6.5
    Risk elements in lending
    5.1
    -
    5.1
    Customer deposits (excluding repos)
    0.9
    -
    0.9
    Provision coverage (3)
    76%
    -
    76%
    Risk-weighted assets 
    12.4
    -
    12.4
    Notes:
    (1)
    Refer to page 2 for further details.
    (2)
    Excluding restructuring costs.
    (3)
    Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.

    RCR
    Quarter ended 31 December 2014
    Allocated to
    Previously
    Reporting
    Capital
    reported
    changes (1)
    Resolution
    Income statement
    m 
    m 
    m 
    Net interest income
    (23)
    -
    (23)
    Non-interest income
    (162)
    -
    (162)
    Total income
    (185)
    -
    (185)
    Direct expenses
     - staff
    (41)
    -
    (41)
     - other
    (29)
    -
    (29)
    Indirect expenses
    (25)
    -
    (25)
    Restructuring costs
     - indirect
    (3)
    -
    (3)
    Operating expenses
    (98)
    -
    (98)
    Operating loss before impairment releases
    (283)
    -
    (283)
    Impairment releases
    681
    -
    681
    Operating profit
    398
    -
    398
    Memo:
    Operating expenses - adjusted (2)
    (95)
    -
    (95)
    Operating profit - adjusted (2)
    401
    -
    401
    31 December 2014
    Allocated to
    Previously
    Reporting
    Capital
    reported
    changes (1)
    Resolution
    Capital and balance sheet
    bn
    bn
    bn
    Loans and advances to customers (gross)
    21.9
    -
    21.9
    Loan impairment provisions
    (10.9)
    -
    (10.9)
    Net loans and advances to customers
    11.0
    -
    11.0
    Funded assets
    14.9
    -
    14.9
    Risk elements in lending
    15.4
    -
    15.4
    Customer deposits (excluding repos)
    1.2
    -
    1.2
    Provision coverage (3)
    71%
    -
    71%
    Risk-weighted assets
    22.0
    -
    22.0
    Notes:
    (1)
    Refer to page 2 for further details.
    (2)
    Excluding restructuring costs.
    (3)
    Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.

    RCR
    Year ended 31 December 2014
    Allocated to
    Previously
    Reporting
    Capital
    reported
    changes (1)
    Resolution
    Income statement
    m 
    m 
    m 
    Net interest income
    (47)
    -
    (47)
    Non-interest income
    92
    -
    92
    Own credit adjustments
    -
    (22)
    (22)
    Total income
    45
    (22)
    23
    Direct expenses
     - staff
    (167)
    -
    (167)
     - other
    (85)
    -
    (85)
    Indirect expenses
    (104)
    -
    (104)
    Restructuring costs
     - indirect
    (7)
    -
    (7)
    Operating expenses
    (363)
    -
    (363)
    Operating loss before impairment releases
    (318)
    (22)
    (340)
    Impairment releases
    1,306
    -
    1,306
    Operating profit 
    988
    (22)
    966
    Memo:
    Total income - adjusted (2)
    45
    -
    45
    Operating expenses - adjusted (3)
    (356)
    -
    (356)
    Operating profit - adjusted (2,3)
    995
    -
    995
    31 December 2014
    Allocated to
    Previously
    Reporting
    Capital
    reported
    changes (1)
    Resolution
    Capital and balance sheet
    bn
    bn
    bn
    Loans and advances to customers (gross)
    21.9
    -
    21.9
    Loan impairment provisions
    (10.9)
    -
    (10.9)
    Net loans and advances to customers
    11.0
    -
    11.0
    Funded assets
    14.9
    -
    14.9
    Risk elements in lending
    15.4
    -
    15.4
    Customer deposits (excluding repos)
    1.2
    -
    1.2
    Provision coverage (4)
    71%
    -
    71%
    Risk-weighted assets
    22.0
    -
    22.0
    Notes:
    (1)
    Refer to page 2 for further details.
    (2)
    Excluding own credit adjustments.
    (3)
    Excluding restructuring costs.
    (4)
    Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.
    Central items & other
    Income statement
    Impact of
    Pension
    revised
    Re-presentation
    Allocated to
    Previously
    accounting
    treasury
    of one-off and
    Capital
    reported
    policy impact
    allocations
    other items (1)
    Centre (2)
    Resolution
    Quarter ended 30 September 2015
    m
    m
    m
    m
    m
    m
    Central items not allocated
    (285)
    (16)
    (10)
    20
    (317)
    26
    Quarter ended 31 December 2014
    Central items not allocated
    (620)
    (6)
    (50)
    (703)
    27
    Year ended 31 December 2014
    Central items not allocated
    (860)
    (33)
    86
    (904)
    97
    Balance sheet
    Impact of
    Pension
    revised
    Allocated to
    Previously
    accounting
    treasury
    Capital
    reported
    policy impact
    allocations
    Centre (2)
    Resolution
    As at 30 September 2015
    bn 
    bn
    bn 
    bn 
    bn
    Central items not allocated - risk-weighted assets 
    87.7
    (8.7)
    72.1
    6.9
    Central items not allocated - funded assets
    116.9
    0.4
    (89.5)
    26.7
    1.1
    As at 31 December 2014
    Central items not allocated - risk-weighted assets
    84.7
    (9.8)
    68.8
    6.1
    Central items not allocated - funded assets
    169.2
    0.3
    (83.1)
    85.4
    1.0
    Notes:
    (1)
    Refer to page 2 for further details.
    (2)
    Centre includes unallocated costs.

    This information is provided by RNS
    The company news service from the London Stock Exchange
      END
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