REG - Royal Bk Scot.Grp.Royal Bk.of Scot.Nat.Westminster Bk - Interim Management Statement <Origin Href="QuoteRef">NWB_pa.L</Origin> <Origin Href="QuoteRef">RBS.L</Origin> - Part 4
31/10/2014 08:11
- Part 4: For the preceding part double click ID:nRSe7759Vc
815 801
Performance ratios
Return on equity (2) 13.3% 14.5% 9.9% 14.5% 9.2%
Return on equity - adjusted (1,2) 14.8% 15.1% 10.9% 15.1% 9.9%
Net interest margin 3.65% 3.73% 3.54% 3.70% 3.40%
Cost:income ratio 78% 74% 81% 75% 82%
Cost:income ratio - adjusted (1) 75% 73% 80% 74% 81%
30 September 30 June 31 December
2014 2014 2013
Capital and balance sheet £bn £bn £bn
Funded assets 21.0 20.8 21.0
Total assets 21.1 20.8 21.2
Net loans and advances to customers 16.7 16.5 16.7
Risk elements in lending 0.2 0.2 0.3
Impairment provisions (0.1) (0.1) (0.1)
Customer deposits 36.2 35.9 37.2
Risk-weighted assets (3) 12.2 11.8 12.0
For the notes to this table refer to page 24.
Corporate & Institutional Banking
Quarter ended Nine months ended
30 September 30 June 30 September 30 September 30 September
2014 2014 2013 2014 2013
Income statement £m £m £m £m £m
Net interest income from banking activities 230 186 162 595 476
Net fees and commissions 263 247 288 753 844
Income from trading activities 329 597 772 1,811 2,525
Other operating income 9 46 30 99 115
Non-interest income 601 890 1,090 2,663 3,484
Total income 831 1,076 1,252 3,258 3,960
Direct expenses
- staff costs (179) (217) (262) (666) (841)
- other costs (50) (140) (138) (300) (421)
Indirect expenses (593) (587) (614) (1,773) (1,941)
Restructuring costs
- direct (22) (9) (17) (44) (51)
- indirect 6 (143) (112) (163) (161)
Litigation and conduct costs (562) (50) (99) (612) (509)
Operating expenses (1,400) (1,146) (1,242) (3,558) (3,924)
(Loss)/profit before impairment losses (569) (70) 10 (300) 36
Impairment releases/(losses) 12 45 (28) 51 (251)
Operating loss (557) (25) (18) (249) (215)
Operating profit - adjusted (1) 21 177 210 570 506
Analysis of income by product
Rates 240 297 406 896 873
Currencies 193 159 232 544 711
Credit 198 309 304 972 1,296
Global Transaction Services 207 214 229 628 654
Portfolio 164 156 144 482 467
Total (excluding revenue share and run-off
businesses) 1,002 1,135 1,315 3,522 4,001
Inter-segment revenue share (58) (59) (63) (177) (204)
Run-off businesses (113) - - (87) 163
Total income 831 1,076 1,252 3,258 3,960
Performance ratios
Return on equity (2) (11.0%) (0.5%) (0.3%) (1.5%) (1.2%)
Return on equity - adjusted (1,2) 0.4% 3.3% 3.8% 3.5% 2.9%
Net interest margin 1.08% 0.90% 0.79% 0.95% 0.74%
Cost:income ratio 168% 107% 99% 109% 99%
Cost:income ratio - adjusted (1) 99% 88% 81% 84% 81%
30 September 30 June 31 December
2014 2014 2013
Capital and balance sheet £bn £bn £bn
Funded assets 274.9 278.7 268.6
Total assets 572.9 537.6 551.2
Reverse repos 72.9 78.8 76.2
Net loans and advances to customers 73.1 69.0 68.2
Net loans and advances to banks 19.5 19.4 20.5
Securities 65.6 67.9 72.1
Risk-weighted assets (3) 123.2 127.8 120.4*
- credit risk
- non-counterparty 48.5 58.4 61.8
- counterparty 37.2 28.9 17.5
- market risk 25.7 28.7 26.4
- operational risk 11.8 11.8 14.7
*On a fully loaded Basel 3 basis risk-weighted assets at 1 January were £147.1 billion.
For the notes to this table refer to page 24.
Citizens Financial Group (US dollar)
Quarter ended Nine months ended
30 September 30 June 30 September 30 September 30 September
2014 2014 2013 2014 2013
Income statement $m $m $m $m $m
Net interest income 824 838 748 2,471 2,197
Net fees and commissions 291 305 302 875 892
Other non-interest income 68 353 101 520 392
Non-interest income 359 658 403 1,395 1,284
Total income 1,183 1,496 1,151 3,866 3,481
Direct expenses
- staff costs (425) (439) (415) (1,280) (1,298)
- other costs (388) (423) (388) (1,223) (1,132)
Indirect expenses - - (49) - (123)
Restructuring costs (22) (115) (3) (137) (8)
Operating expenses (835) (977) (855) (2,640) (2,561)
Profit before impairment losses 348 519 296 1,226 920
Impairment losses (77) (53) (91) (251) (169)
Operating profit 271 466 205 975 751
Operating profit - adjusted (1) 293 581 208 1,112 759
Average exchange rate - US$/£ 1.669 1.683 1.551 1.669 1.543
Analysis of impairments by sector
Residential mortgages 2 10 24 3 43
Home equity 6 25 43 63 99
SBO home equity (9) (28) - (3) -
Corporate and commercial 28 (2) (21) 41 (74)
Other consumer 50 45 38 144 94
Securities - 3 7 3 7
Total impairment losses 77 53 91 251 169
Performance ratios
Return on equity (2) 5.6% 9.8% 4.9% 6.9% 6.1%
Return on equity - adjusted (1,2) 6.1% 12.2% 5.0% 7.8% 6.1%
Net interest margin 2.82% 2.93% 2.94% 2.89% 2.92%
Cost:income ratio 71% 65% 74% 68% 74%
Cost:income ratio - adjusted (1) 69% 58% 74% 65% 73%
30 September 30 June 31 December
2014 2014 2013
Capital and balance sheet $bn $bn $bn
Funded assets 130.7 129.5 117.9
Total assets 131.2 130.1 118.6
Net loans and advances to customers 90.4 88.4 83.2
Risk elements in lending 2.0 2.2 1.7
Impairment provisions (0.8) (0.9) (0.4)
Customer deposits (excluding repos) 92.4 90.5 91.1
Risk-weighted assets (3) 104.5 103.8 92.8
Spot exchange rate 1.622 1.711 1.654
For the notes to this table refer to page 24.
RBS Capital Resolution
RCR is managed and analysed by four asset management groups - Ulster Bank (RCR Ireland), Real Estate Finance, Corporate and
Markets. Real Estate Finance excludes commercial real estate lending in Ulster Bank.
Nine months
Quarter ended ended
30 September 30 June 31 March 30 September
2014 2014 2014 2014
£m £m £m £m
Income statement
Net interest (expense)/income (18) 16 (5) (7)
Net fees and commissions 12 17 14 43
Income from trading activities (1) 42 (69) 16 (11)
Other operating income (1) 86 71 48 205
Non-interest income 140 19 78 237
Total income 122 35 73 230
Direct expenses
- staff costs (37) (51) (38) (126)
- other costs (24) (14) (18) (56)
Indirect expenses (24) (32) (23) (79)
Restructuring costs (4) - - (4)
Operating expenses (89) (97) (79) (265)
Profit/(loss) before impairment losses 33 (62) (6) (35)
Impairment releases/(losses) (1) 605 128 (108) 625
Operating profit/(loss) 638 66 (114) 590
Operating profit/(loss) - adjusted (2) 642 66 (114) 594
Total income
Ulster Bank (29) 14 (13) (28)
Real Estate Finance 67 13 83 163
Corporate 72 (12) (2) 58
Markets 12 20 5 37
Total income 122 35 73 230
Impairment (releases)/losses
Ulster Bank (379) (67) 52 (394)
Real Estate Finance (159) (123) 89 (193)
Corporate (70) 73 (34) (31)
Markets 3 (11) 1 (7)
Total impairment (releases)/losses (605) (128) 108 (625)
Loan impairment charge as % of gross loans and advances (3)
Ulster Bank (12.0%) (1.9%) 1.3% (4.2%)
Real Estate Finance (11.6%) (6.6%) 4.1% (4.7%)
Corporate (4.0%) 3.7% (1.5%) (0.6%)
Markets (0.6%) (3.6%) - (1.9%)
Total (9.5%) (1.7%) 1.2% (3.3%)
Notes:
(1) Q3 2014 results include £332 million (Q2 2014 - £225 million; Q1 2014 - £56 million) of net gains from the disposal of assets, comprising £97 million gain (Q2 2014 - £6 million gain; Q1 2014 - £5 million loss) in income from trading activities, £3 million gain (Q2 2014 - £38 million; Q1 2014 - £3 million) in other operating income and £232 million (Q2 2014 - £257 million; Q1 2014 - £64 million) release of impairment provisions.
(2) Excluding restructuring costs.
(3) Includes disposal groups.
RBS Capital Resolution
30 September 30 June 31 March
2014 2014 2014
£bn £bn £bn
Capital and balance sheet
Loans and advances to customers (gross) (1) 25.8 30.0 34.0
Loan impairment provisions (12.6) (14.4) (15.7)
Net loans and advances to customers 13.2 15.6 18.3
Debt securities 1.7 1.9 2.2
Funded assets 17.9 20.9 24.3
Total assets 31.3 34.4 38.8
Risk elements in lending (1) 17.4 20.4 23.0
Provision coverage (2) 72% 71% 68%
Risk-weighted assets
- Credit risk
- non-counterparty 18.7 22.6 29.6
- counterparty 8.2 8.2 5.7
- Market risk 3.7 4.3 5.2
30.6 35.1 40.5
Gross loans and advances to customers (1)
Ulster Bank 12.6 13.9 15.5
Real Estate Finance 5.5 7.4 8.6
Corporate 7.0 7.8 9.1
Markets 0.7 0.9 0.8
25.8 30.0 34.0
Funded assets - Ulster Bank
Commercial real estate - investment 1.5 1.9 2.4
Commercial real estate - development 0.7 0.7 0.8
Other corporate 0.7 0.9 1.2
2.9 3.5 4.4
Funded assets - Real Estate Finance
UK 3.2 4.4 4.7
Germany 0.8 1.0 1.4
Spain 0.5 0.5 0.6
Other 0.9 0.8 1.0
5.4 6.7 7.7
Funded assets - Corporate
Structured finance 1.7 2.0 2.2
Shipping 1.9 1.9 2.0
Other 3.1 3.5 4.4
6.7 7.4 8.6
Funded assets - Markets
Securitised products 2.3 2.7 3.0
Emerging markets 0.6 0.6 0.6
2.9 3.3 3.6
Notes:
(1) Includes disposal groups.
(2) Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.
RBS Capital Resolution
Funded assets
1 July 30 September
2014 Net run-off Disposals (1) Impairments Other 2014
Quarter ended 30 September 2014 £bn £bn £bn £bn £bn £bn
Ulster Bank 3.5 - (0.8) 0.4 (0.2) 2.9
Real Estate Finance 6.7 (0.5) (0.8) 0.1 (0.1) 5.4
Corporate 7.4 (0.6) (0.4) 0.1 0.2 6.7
Markets 3.3 (0.4) (0.1) - 0.1 2.9
Total 20.9 (1.5) (2.1) 0.6 - 17.9
Risk-weighted assets
1 July Risk Other (3) 30 September
2014 Net run-off Disposals (1) parameters (2) Impairments 2014
Quarter ended 30 September 2014 £bn £bn £bn £bn £bn £bn £bn
Ulster Bank 2.3 - - (0.1) - (0.1) 2.1
Real Estate Finance 6.4 (0.3) - (0.5) - - 5.6
Corporate 15.1 (0.9) (0.8) (0.1) - 0.7 14.0
Markets 11.3 (0.7) (0.9) (0.8) - - 8.9
Total 35.1 (1.9) (1.7) (1.5) - 0.6 30.6
Capital deductions
1 July Net run-off Risk Impairments Other (3) 30 September
2014 Disposals (1) parameters (2) 2014
Quarter ended 30 September 2014 £m £m £m £m £m £m £m
Ulster Bank 217 - (47) (18) 120 - 272
Real Estate Finance 405 (68) (382) 299 112 (1) 365
Corporate 156 (56) (26) (69) 64 12 81
Markets 64 (1) (1) (7) 1 - 56
Total 842 (125) (456) 205 297 11 774
RWA equivalent (4)
1 July Net run-off Risk Impairments Other (3) 30 September
2014 Disposals (1) parameters (2) 2014
Quarter ended 30 September 2014 £bn £bn £bn £bn £bn £bn £bn
Ulster Bank 4.5 - (0.5) (0.3) 1.2 (0.1) 4.8
Real Estate Finance 10.5 (1.0) (3.8) 2.4 1.1 - 9.2
Corporate 16.6 (1.4) (1.0) (0.8) 0.6 0.8 14.8
Markets 11.9 (0.7) (0.9) (0.8) - - 9.5
Total 43.5 (3.1) (6.2) 0.5 2.9 0.7 38.3
Notes:
(1) Includes all effects relating to disposals, including associated removal of deductions from regulatory capital.
(2) Principally reflects credit migration and other technical adjustments.
(3) Includes fair value adjustments and foreign exchange movements.
(4) RWA equivalent (RWAe) is an internal metric that measures the equity capital employed in segments. RWAe converts both performing and non-performing exposures into a consistent capital measure, being the sum of the regulatory RWAs and the regulatory capital deductions, the latter converted to RWAe by applying a multiplier. RBS applies a CET1 ratio of 10%; this results in an end point CRR RWAe conversion multiplier of 10.
RBS Capital Resolution
Gross loans and advances, REIL and impairments
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