REG - Royal Bk Scot.Grp. - RBS February 2016 Restatement <Origin Href="QuoteRef">RBS.L</Origin> - Part 4
04/02/2016 16:10
- Part 4: For the preceding part double click ID:nRSD1397Oc
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) -
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