REG - Royal Bk Scot.Grp. - Restatement Document <Origin Href="QuoteRef">RBS.L</Origin> - Part 4
06/09/2014 18:36
- Part 4: For the preceding part double click ID:nRSU8278Mc
(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 30 June 2013
Allocated from
International
UK Corporate Banking Markets Total
Income statement £m £m £m £m
Net interest income 29 170 (57) 142
Non-interest income 9 289 796 1,094
Total income 38 459 739 1,236
Direct expenses
- staff (4) (81) (162) (247)
- other - (18) (136) (154)
Indirect expenses (6) (230) (421) (657)
Restructuring costs
- direct - (2) (22) (24)
- indirect - (22) 2 (20)
Litigation and conduct costs - - (385) (385)
Total expenses (10) (353) (1,124) (1,487)
Operating profit/(loss) before impairment losses 28 106 (385) (251)
Impairment losses (2) (99) (43) (144)
Operating profit/(loss) 26 7 (428) (395)
Memo: operating profit/(loss) - adjusted (1) 26 31 (23) 34
Key metrics
Return on equity (2) 12.8% 0.7% (11.9%) (6.8%)
Return on equity - adjusted (1,2) 12.8% 1.9% (0.7%) 0.6%
Net interest margin 1.45% 1.56% (0.69%) 0.67%
Cost:income ratio 26% 77% 152% 120%
Cost:income ratio - adjusted (1) 26% 72% 97% 86%
Loan impairment charge as % of gross customer loans and advances 0.1% 1.0% 0.6% 0.7%
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.
(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.
Central items
Quarter ended 31 March 2014
Net impact
of revised Unallocated
Previously Treasury Allocated cost
reported allocations to CPB allocations Total (1)
£m £m £m £m £m
Central items not allocated (76) 154 (4) (69) 5
Year ended 31 December 2013
Net impact
of revised Unallocated
Previously Treasury Allocated cost
reported allocations to CPB allocations Total (1)
£m £m £m £m £m
Central items not allocated (89) 660 (12) 88 647
Half year ended 30 June 2013
Net impact
of revised Unallocated
Previously Treasury Allocated cost
reported allocations to CPB allocations Total (1)
£m £m £m £m £m
Central items not allocated 104 385 (5) 69 553
Quarter ended 30 June 2013
Net impact
of revised Unallocated
Previously Treasury Allocated cost
reported allocations to CPB allocations Total (1)
£m £m £m £m £m
Central items not allocated 140 173 (3) 42 352
Note:
(1) Central items includes unallocated costs which principally comprise profits on the sale of the Treasury AFS portfolio (quarter ended 31 March 2014 - £203 million, year ended 31 December 2013 - £724 million, half year ended 30 June 2013 - £460 million and quarter ended 30 June 2013 - £105 million) and profit and loss on hedges which do not qualify for hedge accounting..
Appendix 3
Allocation of previous divisions to new customer franchises
Allocation of previous divisions to new customer franchises
The tables in this appendix summarise the performance of the previously reported divisions, as adjusted for the reporting
changes outlined on page 2, and show how these divisions have been allocated to the new reportable segments.
UK Retail
Quarter ended 31 March 2014
Net impact
Transfer Transfer of revised Reclassification
Previously to/(from) to/(from) Treasury of one-off and Allocated
reported Functions Services allocations other items to UK PBB
Income statement £m £m £m £m £m £m
Net interest income 994 - - (22) - 972
Non-interest income 246 - - - - 246
Total income 1,240 - - (22) - 1,218
Direct expenses
- staff (165) 5 6 - (8) (162)
- other (148) 27 1 - - (120)
Indirect expenses (335) (36) (66) - - (437)
Restructuring costs
- indirect - - - - 11 11
Total expenses (648) (4) (59) - 3 (708)
Operating profit before impairment losses 592 (4) (59) (22) 3 510
Impairment losses (59) - - - - (59)
Operating profit 533 (4) (59) (22) 3 451
Memo: operating profit - adjusted (1) 440
Key metrics
Net interest margin 3.59% 3.51%
Cost:income ratio 52% 58%
Cost:income ratio - adjusted (1) n/a 59%
31 March 2014
Previously Allocated
reported Adjustments to UK PBB
Capital and balance sheet £bn £bn £bn
Loans and advances to customers (gross) 113.8 113.8
Loan impairment provisions (1.9) (1.9)
Net loans and advances to customers 111.9 111.9
Funded assets 118.4 118.4
Risk elements in lending 3.3 3.3
Customer deposits (excluding repos) 114.8 114.8
Loan:deposit ratio (excluding repos) 98% 98%
Provision coverage (2) 58% 58%
Risk-weighted assets (3) 43.9 (7.1) 36.8
Notes:
(1) Excluding restructuring costs.
(2) Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.
(3) RWAs include an adjustment from long-term conservative average secured mortgage probability of default methodology to the lower point-in-time basis required for regulatory reporting.
UK Retail
Year ended 31 December 2013
Net impact
Transfer Transfer of revised Reclassification
Previously to/(from) to/(from) Treasury of one-off and Allocated
reported Functions Services allocations other items to UK PBB
Income statement £m £m £m £m £m £m
Net interest income 3,979 - - (96) - 3,883
Non-interest income 958 - - - - 958
Total income 4,937 - - (96) - 4,841
Direct expenses
- staff (684) 24 22 - (36) (674)
- other (560) 117 1 - - (442)
Indirect expenses (1,426) (177) (34) - - (1,637)
Restructuring costs
- direct - - - - (118) (118)
- indirect - - - - (94) (94)
Litigation and conduct costs - - - - (860) (860)
Total expenses (2,670) (36) (11) - (1,108) (3,825)
Operating profit before impairment losses 2,267 (36) (11) (96) (1,108) 1,016
Impairment losses (324) - - - - (324)
Operating profit 1,943 (36) (11) (96) (1,108) 692
Memo: operating profit - adjusted (1) 1,764
Key metrics
Net interest margin 3.57% 3.48%
Cost:income ratio 54% 79%
Cost:income ratio - adjusted (1) n/a 57%
31 December 2013
Previously Allocated
reported Adjustments to UK PBB
Capital and balance sheet £bn £bn £bn
Loans and advances to customers (gross) 113.2 113.2
Loan impairment provisions (2.1) (2.1)
Net loans and advances to customers 111.1 111.1
Funded assets 117.6 117.6
Risk elements in lending 3.6 3.6
Customer deposits (excluding repos) 114.9 114.9
Loan:deposit ratio (excluding repos) 97% 97%
Provision coverage (2) 59% 59%
Risk-weighted assets (3) 43.9 (6.5) 37.4
Notes:
(1) Excluding restructuring costs and litigation and conduct costs.
(2) Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.
(3) RWAs include an adjustment from long-term conservative average secured mortgage probability of default methodology to the lower point-in-time basis required for regulatory reporting.
UK Retail
Half year ended 30 June 2013
Net impact
Transfer Transfer of revised Reclassification
Previously to/(from) to/(from) Treasury of one-off and Allocated
reported Functions Services allocations other items to UK PBB
Income statement £m £m £m £m £m £m
Net interest income 1,952 - - (55) - 1,897
Non-interest income 451 - - - - 451
Total income 2,403 - - (55) - 2,348
Direct expenses
- staff (347) 14 12 - (18) (339)
- other (224) 52 1 - - (171)
Indirect expenses (709) (75) (18) - - (802)
Restructuring costs
- direct - - - - (70) (70)
- indirect - - - - (34) (34)
Litigation and conduct costs - - - - (160) (160)
Total expenses (1,280) (9) (5) - (282) (1,576)
Operating profit before impairment losses 1,123 (9) (5) (55) (282) 772
Impairment losses (169) - - - - (169)
Operating profit 954 (9) (5) (55) (282) 603
Memo: operating profit - adjusted (1) 867
Key metrics
Net interest margin 3.53% 3.42%
Cost:income ratio 53% 67%
Cost:income ratio - adjusted (1) n/a 56%
30 June 2013
Previously Allocated
reported Adjustments to UK PBB
Capital and balance sheet £bn £bn £bn
Loans and advances to customers (gross) 112.2 112.2
Loan impairment provisions (2.5) (2.5)
Net loans and advances to customers 109.7 109.7
Funded assets 116.1 116.1
Risk elements in lending 4.3 4.3
Customer deposits (excluding repos) 111.6 111.6
Loan:deposit ratio (excluding repos) 98% 98%
Provision coverage (2) 58% 58%
Risk-weighted assets (3) 44.1 (6.1) 38.0
Notes:
(1) Excluding restructuring costs and litigation and conduct costs.
(2) Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.
(3) RWAs include an adjustment from long-term conservative average secured mortgage probability of default methodology to the lower point-in-time basis required for regulatory reporting.
UK Retail
Quarter ended 30 June 2013
Net impact
Transfer Transfer of revised Reclassification
Previously to/(from) to/(from) Treasury of one-off and Allocated
reported Functions Services allocations other items to UK PBB
Income statement £m £m £m £m £m £m
Net interest income 987 - - (22) - 965
Non-interest income 225 - - - - 225
Total income 1,212 - - (22) - 1,190
Direct expenses
- staff (175) 7 6 - (9) (171)
- other (112) 28 1 - - (83)
Indirect expenses (359) (41) (9) - - (409)
Restructuring costs
- direct - - - - (47) (47)
- indirect - - - - (19) (19)
Litigation and conduct costs - - - - (160) (160)
Total expenses (646) (6) (2) - (235) (889)
Operating profit before impairment losses 566 (6) (2) (22) (235) 301
Impairment losses (89) - - - - (89)
Operating profit 477 (6) (2) (22) (235) 212
Memo: operating profit - adjusted (1) 438
Key metrics
Net interest margin 3.56% 3.48%
Cost:income ratio 53% 75%
Cost:income ratio - adjusted (1) n/a 56%
30 June 2013
Previously Allocated
reported Adjustments to UK PBB
Capital and balance sheet £bn £bn £bn
Loans and advances to customers (gross) 112.2 112.2
Loan impairment provisions (2.5) (2.5)
Net loans and advances to customers 109.7 109.7
Funded assets 116.1 116.1
Risk elements in lending 4.3 4.3
Customer deposits (excluding repos) 111.6 111.6
Loan:deposit ratio (excluding repos) 98% 98%
Provision coverage (2) 58% 58%
Risk-weighted assets (3) 44.1 (6.1) 38.0
Notes:
(1) Excluding restructuring costs and litigation and conduct costs.
(2) Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.
(3) RWAs include an adjustment from long-term conservative average secured mortgage probability of default methodology to the lower point-in-time basis required for regulatory reporting.
UK Corporate
Quarter ended 31 March 2014
Net impact
Transfer Transfer of revised Reclassification Allocated to
Previously to/(from) to/(from) Treasury of one-off and Commercial
reported Functions Services allocations other items UK PBB Banking CIB
Income statement £m £m £m £m £m £m £m £m
Net interest income 706 - - (55) - 152 476 23
Non-interest income 397 - - - - 93 287 17
Total income 1,103 - - (55) - 245 763 40
Direct expenses
- staff (221) 8 20 - (8) (63) (133) (5)
- other (93) 5 10 - - (10) (63) (5)
Indirect expenses (235) (17) (48) - - (83) (212) (5)
Restructuring costs
- indirect - - - - (2) (1) (1) -
Total expenses (549) (4) (18) - (10) (157) (409) (15)
Operating profit before
impairment losses 554 (4) (18) (55) (10) 88 354 25
Impairment (losses)/recoveries (63) - - - - (29) (40) 6
Operating profit 491 (4) (18) (55) (10) 59 314 31
Memo: operating profit
- adjusted (1) 60 315 31
Key metrics
Net interest margin 3.13% 4.34% 2.79% 1.20%
Cost:income ratio 50% 64% 54% 38%
Cost:income ratio - adjusted (1) n/a 64% 53% 38%
31 March 2014
Allocated to
Previously Commercial
reported UK PBB Banking CIB
Capital and balance sheet £bn £bn £bn £bn
Loans and advances to customers (gross) 103.2 14.6 81.1 7.5
Loan impairment provisions (2.3) (1.0) (1.3) -
Net loans and advances to customers 100.9 13.6 79.8 7.5
Funded assets 106.7 14.4 84.5 7.8
Risk elements in lending 4.6 1.2 3.4 -
Customer deposits (excluding repos) 121.2 29.8 87.5 3.9
Loan:deposit ratio (excluding repos) 83% 46% 91% 192%
Provision coverage (2) 49% 85% 38% -
Risk-weighted assets 80.4 11.7 62.8 5.9
Notes:
(1) Excluding restructuring costs.
(2) Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.
UK Corporate
Year ended 31 December 2013
Net impact
Transfer Transfer of revised Reclassification Allocated to
Previously to/(from) to/(from) Treasury of one-off and Commercial
reported Functions Services allocations other items UK PBB Banking CIB
Income statement £m £m £m £m £m £m £m £m
Net interest income 2,874 - - (209) - 607 1,934 124
Non-interest income 1,593 - - - - 365 1,195 33
Total income 4,467 - - (209) - 972 3,129 157
Direct expenses
- staff (865) 30 82 - (36) (259) (514) (16)
- other (437) 27 54 - - (82) (272) (2)
Indirect expenses (917) (166) (138) - - (312) (886) (23)
Restructuring costs
- direct - - - - (18) - (18) -
- indirect - - - - (53) (15) (37) (1)
Litigation and conduct costs - - - - (247) - (247) -
Total expenses (2,219) (109) (2) - (354) (668) (1,974) (42)
Operating profit before
impairment losses 2,248 (109) (2) (209) (354) 304 1,155 115
Impairment losses (1,188) - - - - (177) (652) (359)
Operating profit/(loss) 1,060 (109) (2) (209) (354) 127 503 (244)
Memo: operating profit/(loss)
- adjusted (1) 142 805 (243)
Key metrics
Net interest margin 3.07% 4.14% 2.73% 1.52%
Cost:income ratio 50% 69% 63% 27%
Cost:income ratio - adjusted (1) n/a 67% 53% 26%
31 December 2013
Allocated to
Previously Commercial
reported UK PBB Banking CIB
Capital and balance sheet £bn £bn £bn £bn
Loans and advances to customers (gross) 102.5 14.6 79.9 8.0
Loan impairment provisions (2.8) (0.9) (1.5) (0.4)
Net loans and advances to customers 99.7 13.7 78.4 7.6
Funded assets 105.0 14.6 82.8 7.6
Risk elements in lending 6.2 1.1 4.3 0.8
Customer deposits (excluding repos) 124.7 30.0 90.7 4.0
Loan:deposit ratio (excluding repos) 80% 46% 86% 190%
Provision coverage (2) 46% 76% 35% 50%
Risk-weighted assets 86.1 13.8 65.1 7.2
Notes:
(1) Excluding restructuring costs and litigation and conduct costs.
(2) Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.
UK Corporate
Half year ended 30 June 2013
Net impact
Transfer Transfer of revised Reclassification Allocated to
Previously to/(from) to/(from) Treasury of one-off and Commercial
reported Functions Services allocations other items UK PBB Banking CIB
Income statement £m £m £m £m £m £m £m £m
Net interest income 1,421 - - (134) - 303 925 59
Non-interest income 805 - - - - 178 611 16
Total income 2,226 - - (134) - 481 1,536 75
Direct expenses
- staff (431) 15 42 - (18) (130) (254) (8)
- other (216) 13 28 - - (29) (145) (1)
Indirect expenses (447) (39) (71) - - (145) (401) (11)
Restructuring costs
- direct - - - - (14) - (14) -
- indirect - - - - (20) (5) (15) -
Litigation and conduct costs - - - - (25) - (25) -
Total expenses (1,094) (11) (1) - (77) (309) (854) (20)
Operating profit before
impairment losses 1,132 (11) (1) (134) (77) 172 682 55
Impairment losses (379) - - - - (87) (282) (10)
Operating profit 753 (11) (1) (134) (77) 85
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