REG - Royal Bk Scot.Grp. - RBS February 2016 Restatement <Origin Href="QuoteRef">RBS.L</Origin> - Part 3
04/02/2016 16:10
- Part 3: For the preceding part double click ID:nRSD1397Ob
(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
Memo:
Operating expenses - adjusted (2) (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)
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