REG - Royal Bk Scot.Grp. - Restatement Document <Origin Href="QuoteRef">RBS.L</Origin> - Part 3
06/09/2014 18:36
- Part 3: For the preceding part double click ID:nRSU8278Mb
(309) (1,885) (322) (2,207)
Operating profit before impairment losses 772 172 944 122 1,066
Impairment losses (169) (87) (256) (503) (759)
Operating profit/(loss) 603 85 688 (381) 307
Memo: operating profit/(loss) - adjusted (1) 867 90 957 (335) 622
Key metrics
Return on equity (2) 19.8% 7.3% 16.4% (14.9%) 4.3%
Return on equity - adjusted (1,2) 28.5% 7.7% 22.8% (13.1%) 8.8%
Net interest margin 3.42% 4.10% 3.50% 1.82% 3.15%
Cost:income ratio 67% 64% 67% 73% 67%
Cost:income ratio - adjusted (1) 56% 63% 57% 62% 58%
Loan impairment charge as a % of gross customer
loans and advances 0.3% 1.1% 0.4% 3.1% 0.9%
30 June 2013
Allocated from Total
UK Retail UK Corporate UK PBB Ulster Bank PBB
Capital and balance sheet £bn £bn £bn £bn £bn
Loans and advances to customers (gross) 112.2 15.2 127.4 32.9 160.3
Loan impairment provisions (2.5) (0.9) (3.4) (4.4) (7.8)
Net loans and advances to customers 109.7 14.3 124.0 28.5 152.5
Total funded assets 116.1 15.1 131.2 30.3 161.5
Risk elements in lending 4.3 1.1 5.4 8.6 14.0
Customer deposits (excluding repos) 111.6 28.3 139.9 23.1 163.0
Loan:deposit ratio (excluding repos) 98% 51% 89% 123% 94%
Provision coverage (3) 58% 77% 62% 52% 56%
Risk-weighted assets 38.0 14.4 52.4 33.9 86.3
Notes:
(1) Excluding restructuring costs and litigation and conduct costs.
(2) Return on equity is based on divisional operating profit after tax divided by average notional equity (based on 12% of the monthly average of divisional RWAs; previously - 10% of RWAe).
(3) Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.
Personal & Business Banking
Quarter ended 30 June 2013
Allocated from Total
UK Retail UK Corporate UK PBB Ulster Bank PBB
Income statement £m £m £m £m £m
Net interest income 965 153 1,118 152 1,270
Non-interest income 225 95 320 88 408
Total income 1,190 248 1,438 240 1,678
Direct expenses
- staff (171) (64) (235) (67) (302)
- other (83) (13) (96) (12) (108)
Indirect expenses (409) (75) (484) (65) (549)
Restructuring costs
- direct (47) - (47) (14) (61)
- indirect (19) (3) (22) (4) (26)
Litigation and conduct costs (160) - (160) (25) (185)
Total expenses (889) (155) (1,044) (187) (1,231)
Operating profit before impairment losses 301 93 394 53 447
Impairment losses (89) (37) (126) (263) (389)
Operating profit/(loss) 212 56 268 (210) 58
Memo: operating profit/(loss) - adjusted (1) 438 59 497 (167) 330
Key metrics
Return on equity (2) 14.1% 9.6% 12.8% (16.8%) 1.7%
Return on equity - adjusted (1,2) 29.0% 10.1% 23.8% (13.4%) 9.5%
Net interest margin 3.48% 4.13% 3.56% 1.84% 3.20%
Cost:income ratio 75% 63% 73% 78% 73%
Cost:income ratio - adjusted (1) 56% 61% 57% 60% 57%
Loan impairment charge as % of gross customer
loans and advances 0.3% 1.0% 0.4% 3.2% 1.0%
30 June 2013
Allocated from Total
UK Retail UK Corporate UK PBB Ulster Bank PBB
Capital and balance sheet £bn £bn £bn £bn £bn
Loans and advances to customers (gross) 112.2 15.2 127.4 32.9 160.3
Loan impairment provisions (2.5) (0.9) (3.4) (4.4) (7.8)
Net loans and advances to customers 109.7 14.3 124.0 28.5 152.5
Total funded assets 116.1 15.1 131.2 30.3 161.5
Risk elements in lending 4.3 1.1 5.4 8.6 14.0
Customer deposits (excluding repos) 111.6 28.3 139.9 23.1 163.0
Loan:deposit ratio (excluding repos) 98% 51% 89% 123% 94%
Provision coverage (3) 58% 77% 62% 52% 56%
Risk-weighted assets 38.0 14.4 52.4 33.9 86.3
Notes:
(1) Excluding restructuring costs and litigation and conduct costs.
(2) Return on equity is based on divisional operating profit after tax divided by average notional equity (based on 12% of the monthly average of divisional RWAs; previously - 10% of RWAe).
(3) Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.
Commercial & Private Banking
Quarter ended 31 March 2014
Allocated from
International Commercial Private Total
UK Corporate Banking Centre Banking Banking CPB
Income statement £m £m £m £m £m £m
Net interest income 476 1 11 488 170 658
Non-interest income 287 2 (7) 282 103 385
Total income 763 3 4 770 273 1,043
Direct expenses
- staff (133) - - (133) (80) (213)
- other (63) - - (63) (18) (81)
Indirect expenses (212) - - (212) (101) (313)
Restructuring costs
- indirect (1) - - (1) - (1)
Total expenses (409) - - (409) (199) (608)
Operating profit before impairment losses 354 3 4 361 74 435
Impairment (losses)/recoveries (40) - - (40) 1 (39)
Operating profit 314 3 4 321 75 396
Memo: operating profit - adjusted (1) 315 3 4 322 75 397
Key metrics
Return on equity (2) 12.4% 28.7% - 12.6% 15.3% 13.1%
Return on equity - adjusted (1,2) 12.5% 28.7% - 12.7% 15.3% 13.1%
Net interest margin 2.79% 2.33% 2.91% 2.68% 3.70% 2.89%
Cost:income ratio 54% - - 53% 73% 58%
Cost:income ratio - adjusted (1) 53% - - 53% 73% 58%
Loan impairment charge as % of gross customer
loans and advances 0.2% - - 0.2% - 0.2%
31 March 2014
Allocated from
International Commercial Private Total
UK Corporate Banking Centre Banking Banking CPB
Capital and balance sheet £bn £bn £bn £bn £bn £bn
Loans and advances to customers (gross) 81.1 0.3 4.8 86.2 16.8 103.0
Loan impairment provisions (1.3) - - (1.3) (0.1) (1.4)
Net loans and advances to customers 79.8 0.3 4.8 84.9 16.7 101.6
Total funded assets 84.5 0.3 4.8 89.6 21.1 110.7
Risk elements in lending 3.4 - - 3.4 0.3 3.7
Customer deposits (excluding repos) 87.5 0.1 - 87.6 36.6 124.2
Loan:deposit ratio (excluding repos) 91% 300% - 97% 45% 82%
Provision coverage (3) 38% - - 37% 45% 38%
Risk-weighted assets 62.8 0.2 0.5 63.5 12.0 75.5
Notes:
(1) Excluding restructuring costs.
(2) Return on equity is based on divisional operating profit after tax divided by average notional equity (based on 12% of the monthly average of divisional RWAs; previously - 10% of RWAe).
(3) Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.
Commercial & Private Banking
Year ended 31 December 2013
Allocated from
International Commercial Private Total
UK Corporate Banking Centre Banking Banking CPB
Income statement £m £m £m £m £m £m
Net interest income 1,934 9 19 1,962 658 2,620
Non-interest income 1,195 7 (7) 1,195 419 1,614
Total income 3,129 16 12 3,157 1,077 4,234
Direct expenses
- staff (514) (1) - (515) (318) (833)
- other (272) - - (272) (83) (355)
Indirect expenses (886) - - (886) (475) (1,361)
Restructuring costs
- direct (18) - - (18) (18) (36)
- indirect (37) - - (37) (9) (46)
Litigation and conduct costs (247) - - (247) (206) (453)
Total expenses (1,974) (1) - (1,975) (1,109) (3,084)
Operating profit/(loss) before impairment losses 1,155 15 12 1,182 (32) 1,150
Impairment losses (652) - - (652) (29) (681)
Operating profit/(loss) 503 15 12 530 (61) 469
Memo: operating profit - adjusted (1) 805 15 12 832 172 1,004
Impairments pertaining to the creation of RCR (123) - - (123) - (123)
Key metrics
Return on equity (2) 4.7% 49.3% - 4.9% (3.1%) 3.7%
Return on equity - adjusted (1,2) 7.5% 49.3% - 7.7% 8.7% 7.9%
Net interest margin 2.73% 3.15% 0.62% 2.64% 3.47% 2.81%
Cost:income ratio 63% 6% - 63% 103% 73%
Cost:income ratio - adjusted (1) 53% 6% - 53% 81% 60%
Loan impairment charge as % of gross customer
loans and advances 0.8% - - 0.8% 0.2% 0.7%
31 December 2013
Allocated from
International Commercial Private Total
UK Corporate Banking Centre Banking Banking CPB
Capital and balance sheet £bn £bn £bn £bn £bn £bn
Loans and advances to customers (gross) 79.9 0.3 4.8 85.0 16.8 101.8
Loan impairment provisions (1.5) - - (1.5) (0.1) (1.6)
Net loans and advances to customers 78.4 0.3 4.8 83.5 16.7 100.2
Total funded assets 82.8 0.3 4.8 87.9 21.0 108.9
Risk elements in lending 4.3 - - 4.3 0.3 4.6
Customer deposits (excluding repos) 90.7 - - 90.7 37.2 127.9
Loan:deposit ratio (excluding repos) 86% - - 92% 45% 78%
Provision coverage (3) 35% - - 38% 43% 38%
Risk-weighted assets 65.1 0.3 0.4 65.8 12.0 77.8
Notes:
(1) Excluding restructuring costs and litigation and conduct costs.
(2) Return on equity is based on divisional operating profit after tax divided by average notional equity (based on 12% of the monthly average of divisional RWAs; previously - 10% of RWAe).
(3) Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.
Commercial & Private Banking
Half year ended 30 June 2013
Allocated from
International Commercial Private Total
UK Corporate Banking Centre Banking Banking CPB
Income statement £m £m £m £m £m £m
Net interest income 925 4 7 936 317 1,253
Non-interest income 611 4 (2) 613 214 827
Total income 1,536 8 5 1,549 531 2,080
Direct expenses
- staff (254) - - (254) (173) (427)
- other (145) - - (145) (30) (175)
Indirect expenses (401) - - (401) (228) (629)
Restructuring costs
- direct (14) - - (14) (1) (15)
- indirect (15) - - (15) (4) (19)
Litigation and conduct costs (25) - - (25) - (25)
Total expenses (854) - - (854) (436) (1,290)
Operating profit before impairment losses 682 8 5 695 95 790
Impairment losses (282) - - (282) (7) (289)
Operating profit 400 8 5 413 88 501
Memo: operating profit - adjusted (1) 454 8 5 467 93 560
Key metrics
Return on equity (2) 7.4% 53.9% - 7.6% 8.9% 7.8%
Return on equity - adjusted (1,2) 8.4% 53.9% - 8.6% 9.4% 8.7%
Net interest margin 2.61% 3.18% 0.49% 2.53% 3.33% 2.69%
Cost:income ratio 56% - - 55% 82% 62%
Cost:income ratio - adjusted (1) 52% - - 52% 81% 59%
Loan impairment charge as % of gross customer
loans and advances 0.7% - - 0.7% 0.1% 0.6%
30 June 2013
Allocated from
International Commercial Private Total
UK Corporate Banking Centre Banking Banking CPB
Capital and balance sheet £bn £bn £bn £bn £bn £bn
Loans and advances to customers (gross) 80.9 0.3 4.6 85.8 17.1 102.9
Loan impairment provisions (1.5) - - (1.5) (0.1) (1.6)
Net loans and advances to customers 79.4 0.3 4.6 84.3 17.0 101.3
Total funded assets 83.9 0.3 4.6 88.8 21.3 110.1
Risk elements in lending 4.4 - - 4.4 0.3 4.7
Customer deposits (excluding repos) 91.0 - - 91.0 38.9 129.9
Loan:deposit ratio (excluding repos) 87% - - 93% 44% 78%
Provision coverage (3) 34% - - 35% 39% 35%
Risk-weighted assets 66.7 0.2 0.3 67.2 12.5 79.7
Notes:
(1) Excluding restructuring costs and litigation and conduct costs.
(2) Return on equity is based on divisional operating profit after tax divided by average notional equity (based on 12% of the monthly average of divisional RWAs; previously - 10% of RWAe).
(3) Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.
Commercial & Private Banking
Quarter ended 30 June 2013
Allocated from
International Commercial Private Total
UK Corporate Banking Centre Banking Banking CPB
Income statement £m £m £m £m £m £m
Net interest income 479 2 3 484 159 643
Non-interest income 323 2 - 325 110 435
Total income 802 4 3 809 269 1,078
Direct expenses
- staff (127) - - (127) (88) (215)
- other (77) - - (77) (17) (94)
Indirect expenses (205) - - (205) (112) (317)
Restructuring costs
- direct (7) - - (7) (1) (8)
- indirect (9) - - (9) (2) (11)
Total expenses (425) - - (425) (220) (645)
Operating profit before impairment losses 377 4 3 384 49 433
Impairment losses (155) - - (155) (2) (157)
Operating profit 222 4 3 229 47 276
Memo: operating profit - adjusted (1) 238 4 3 245 50 295
Key metrics
Return on equity (2) 8.3% 52.4% - 8.5% 9.4% 8.6%
Return on equity - adjusted (1,2) 8.9% 52.4% - 9.1% 10.0% 9.2%
Net interest margin 2.71% 3.15% 1.35% 2.63% 3.34% 2.77%
Cost:income ratio 53% - - 53% 82% 60%
Cost:income ratio - adjusted (1) 51% - - 51% 81% 58%
Loan impairment charge as % of gross customer
loans and advances 0.8% - - 0.7% - 0.6%
30 June 2013
Allocated from
International Commercial Private Total
UK Corporate Banking Centre Banking Banking CPB
Capital and balance sheet £bn £bn £bn £bn £bn £bn
Loans and advances to customers (gross) 80.9 0.3 4.6 85.8 17.1 102.9
Loan impairment provisions (1.5) - - (1.5) (0.1) (1.6)
Net loans and advances to customers 79.4 0.3 4.6 84.3 17.0 101.3
Total funded assets 83.9 0.3 4.6 88.8 21.3 110.1
Risk elements in lending 4.4 - - 4.4 0.3 4.7
Customer deposits (excluding repos) 91.0 - - 91.0 38.9 129.9
Loan:deposit ratio (excluding repos) 87% - - 93% 44% 78%
Provision coverage (3) 34% - - 35% 39% 35%
Risk-weighted assets 66.7 0.2 0.3 67.2 12.5 79.7
Notes:
(1) Excluding restructuring costs.
(2) Return on equity is based on divisional operating profit after tax divided by average notional equity (based on 12% of the monthly average of divisional RWAs; previously - 10% of RWAe).
(3) Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.
Corporate & Institutional Banking
Quarter ended 31 March 2014
Allocated from
International
UK Corporate Banking Markets Total
Income statement £m £m £m £m
Net interest income 23 155 1 179
Non-interest income 17 246 909 1,172
Total income 40 401 910 1,351
Direct expenses
- staff (5) (62) (205) (272)
- other (5) (18) (90) (113)
Indirect expenses (5) (242) (341) (588)
Restructuring costs
- direct - (1) (14) (15)
- indirect - 7 (31) (24)
Total expenses (15) (316) (681) (1,012)
Operating profit before impairment losses 25 85 229 339
Impairment recoveries/(losses) 6 (10) (2) (6)
Operating profit 31 75 227 333
Memo: operating profit - adjusted (1) 31 69 272 372
Key metrics
Return on equity (2) 11.8% 4.2% 6.0% 5.6%
Return on equity - adjusted (1,2) 11.8% 3.9% 7.2% 6.2%
Net interest margin 1.20% 1.35% 0.01% 0.85%
Cost:income ratio 38% 79% 75% 75%
Cost:income ratio - adjusted (1) 38% 80% 70% 72%
Loan impairment charge as % of gross customer loans and advances (0.3%) 0.1% - -
31 March 2014
Allocated from
International
UK Corporate Banking Markets Total
Capital and balance sheet £bn £bn £bn £bn
Loans and advances to customers (gross) 7.5 38.3 24.9 70.7
Loan impairment provisions - (0.1) (0.1) (0.2)
Net loans and advances to customers 7.5 38.2 24.8 70.5
Total funded assets 7.8 50.6 228.2 286.6
Risk elements in lending - - 0.1 0.1
Customer deposits (excluding repos) 3.9 33.6 19.6 57.1
Loan:deposit ratio (excluding repos) 192% 114% 127% 123%
Provision coverage (3) - - 80% 199%
Risk-weighted assets 5.9 46.9 87.4 140.2
Notes:
(1) Excluding restructuring costs.
(2) Return on equity is based on divisional operating profit after tax divided by average notional equity (based on 12% of the monthly average of divisional RWAs; previously - 10% of RWAe).
(3) Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.
Corporate & Institutional Banking
Year ended 31 December 2013
Allocated from
International
UK Corporate Banking Markets Total
Income statement £m £m £m £m
Net interest income 124 660 (100) 684
Non-interest income 33 1,128 3,163 4,324
Total income 157 1,788 3,063 5,008
Direct expenses
- staff (16) (313) (655) (984)
- other (2) (92) (596) (690)
Indirect expenses (23) (979) (1,891) (2,893)
Restructuring costs
- direct - (11) (74) (85)
- indirect (1) (98) (18) (117)
Litigation and conduct costs - - (2,441) (2,441)
Total expenses (42) (1,493) (5,675) (7,210)
Operating profit/(loss) before impairment losses 115 295 (2,612) (2,202)
Impairment losses (359) (229) (92) (680)
Operating (loss)/profit (244) 66 (2,704) (2,882)
Memo: operating (loss)/profit - adjusted (1) (243) 175 (171) (239)
Impairments pertaining to the creation of RCR (285) (52) (18) (355)
Key metrics
Return on equity (2) (24.7%) 1.1% (19.9%) (12.9%)
Return on equity - adjusted (1,2) (24.6%) 2.5% (1.3%) (1.1%)
Net interest margin 1.52% 1.48% (0.31%) 0.80%
Cost:income ratio 27% 84% 185% 144%
Cost:income ratio - adjusted (1) 26% 77% 103% 91%
Loan impairment charge as % of gross customer loans and advances 4.5% 0.6% 0.4% 1.0%
31 December 2013
Allocated from
International
UK Corporate Banking Markets Total
Capital and balance sheet £bn £bn £bn £bn
Loans and advances to customers (gross) 8.0 35.7 25.4 69.1
Loan impairment provisions (0.4) (0.3) (0.2) (0.9)
Net loans and advances to customers 7.6 35.4 25.2 68.2
Total funded assets 7.6 48.2 212.8 268.6
Risk elements in lending 0.8 0.5 0.3 1.6
Customer deposits (excluding repos) 4.0 39.3 21.5 64.8
Loan:deposit ratio (excluding repos) 190% 90% 117% 105%
Provision coverage (3) 50% 60% 85% 59%
Risk-weighted assets 7.2 48.7 64.5 120.4
Notes:
(1) Excluding restructuring costs and litigation and conduct costs.
(2) Return on equity is based on divisional operating profit after tax divided by average notional equity (based on 12% of the monthly average of divisional RWAs; previously - 10% of RWAe).
(3) Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.
Corporate & Institutional Banking
Half year ended 30 June 2013
Allocated from
International
UK Corporate Banking Markets Total
Income statement £m £m £m £m
Net interest income 59 350 (95) 314
Non-interest income 16 572 1,806 2,394
Total income 75 922 1,711 2,708
Direct expenses
- staff (8) (164) (408) (580)
- other (1) (39) (244) (284)
Indirect expenses (11) (462) (852) (1,325)
Restructuring costs
- direct - (4) (33) (37)
- indirect - (37) (9) (46)
Litigation and conduct costs - - (410) (410)
Total expenses (20) (706) (1,956) (2,682)
Operating profit/(loss) before impairment losses 55 216 (245) 26
Impairment losses (10) (154) (59) (223)
Operating profit/(loss) 45 62 (304) (197)
Memo: operating profit - adjusted (1) 45 103 148 296
Key metrics
Return on equity (2) 11.5% 1.9% (4.0%) (1.6%)
Return on equity - adjusted (1,2) 11.5% 2.9% 2.0% 2.5%
Net interest margin 1.45% 1.58% (0.55%) 0.72%
Cost:income ratio 27% 77% 114% 99%
Cost:income ratio - adjusted (1) 27% 72% 88% 81%
Loan impairment charge as % of gross customer loans and advances 0.2% 0.8% 0.4% 0.6%
30 June 2013
Allocated from
International
UK Corporate Banking Markets Total
Capital and balance sheet £bn £bn £bn £bn
Loans and advances to customers (gross) 8.5 40.3 28.2 77.0
Loan impairment provisions - (0.4) (0.2) (0.6)
Net loans and advances to customers 8.5 39.9 28.0 76.4
Total funded assets 8.6 51.6 267.9 328.1
Risk elements in lending 0.7 0.5 0.3 1.5
Customer deposits (excluding repos) 6.9 46.0 26.4 79.3
Loan:deposit ratio (excluding repos) 123% 87% 106% 96%
Provision coverage (3) - 75% 78% 45%
Risk-weighted assets 7.0 49.5 86.8 143.3
Notes:
(1) Excluding restructuring costs and litigation and conduct costs.
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