REG - Royal Bk Scot.Grp. - Segmental Reporting Restatement Document <Origin Href="QuoteRef">RBS.L</Origin> - Part 2
21/12/2017 10:20
- Part 2: For the preceding part double click ID:nRSU0638Aa
34.4 -- 34.4
Securities 31.2 1.3 32.5
Cash and eligible bills 18.3 6.0 24.3
Other 9.3 2.0 11.3
Funded assets 112.7 22.2 134.9
Total assets 215.7 89.3 305.0
Customer deposits (excluding repos) 7.1 6.6 13.7
Bank deposits (excluding repos) 6.9 7.3 14.2
Risk elements in lending -- 1.6 1.6
Repos 30.1 -- 30.1
Debt securities in issue 5.6 0.4 6.0
Loan:deposit ratio (excluding repos) 236% 128% 184%
Risk-weighted assets 31.8 23.1 54.9
NatWest Markets
Quarter ended
31 December 2016
Previously From Capital Total
reported Resolution NWM
Income statement £m £m £m
Net interest income 29 44 73
Net fees and commissions 12 22 34
Income from trading activities 273 (173) 100
Own credit adjustments (29) (8) (37)
Other operating income -- (178) (178)
Non-interest income 256 (337) (81)
Total income 285 (293) (8)
Direct expenses
- staff (64) (23) (87)
- other (7) (3) (10)
Indirect expenses (267) (150) (417)
Restructuring costs
- direct (3) (21) (24)
- indirect (43) 13 (30)
Litigation and conduct costs (466) (115) (581)
Operating expenses (850) (299) (1,149)
Operating loss before impairment
releases (565) (592) (1,157)
Impairment releases -- 130 130
Operating loss (565) (462) (1,027)
Memo:
Total income - adjusted (1) 314 (285) 29
Operating expenses - adjusted (1,2) (338) (176) (514)
Operating loss - adjusted (1,2) (24) (331) (355)
Key metrics
Return on equity (3) (30.2%) nm (27.0%)
Return on equity - adjusted (1,2,3) (2.7%) nm (10.3%)
Net interest margin 0.82% nm 0.86%
Cost:income ratio nm nm nm
Cost:income ratio - adjusted (1,2) 107.6% nm nm
31 December 2016
Previously From Capital
reported Resolution Total NWM
Capital and balance sheet £bn £bn £bn
Gross loans and advances to customers 17.4 13.6 31.0
Loan impairment provisions -- (0.8) (0.8)
Net loans and advances to customers 17.4 12.8 30.2
Loans and advances to bank 3.3 4.6 7.9
Reverse repos 38.6 0.2 38.8
Securities 22.0 3.3 25.3
Cash and eligible bills 13.4 4.7 18.1
Other 6.2 2.0 8.2
Funded assets 100.9 27.6 128.5
Total assets 240.0 132.5 372.5
Customer deposits (excluding repos) 8.4 9.5 17.9
Bank deposits (excluding repos) 9.8 11.5 21.3
Risk elements in lending -- 2.3 2.3
Repos 27.3 -- 27.3
Debt securities in issue 5.4 1.3 6.7
Loan:deposit ratio (excluding repos) 208% 134% 169%
Risk-weighted assets 35.2 34.5 69.7
NatWest Markets
Year ended
31 December 2016
Previously From Capital Total
reported Resolution NWM
Income statement £m £m £m
Net interest income 104 239 343
Net fees and commissions 43 98 141
Income from trading activities 1,372 (543) 829
Own credit adjustments 53 134 187
Strategic disposals -- (81) (81)
Other operating income 2 (209) (207)
Non-interest income 1,470 (601) 869
Total income 1,574 (362) 1,212
Direct expenses
- staff (256) (102) (358)
- other (35) (84) (119)
Indirect expenses (1,029) (578) (1,607)
Restructuring costs
- direct (19) (56) (75)
- indirect (93) (22) (115)
Litigation and conduct costs (528) (22) (550)
Operating expenses (1,960) (864) (2,824)
Operating loss before impairment
losses (386) (1,226) (1,612)
Impairment losses -- (253) (253)
Operating loss (386) (1,479) (1,865)
Memo:
Total income - adjusted (1) 1,521 (415) 1,106
Operating expenses - adjusted (1,2) (1,320) (764) (2,084)
Operating loss - adjusted (1,2) 201 (1,432) (1,231)
Key metrics
Return on equity (3) (6.6%) nm (12.5%)
Return on equity - adjusted (1,2,3) 1.1% nm (8.7%)
Net interest margin 0.84% nm 0.91%
Cost:income ratio 124.5% nm nm
Cost:income ratio - adjusted (1,2) 86.8% nm 188.4%
31 December 2016
Previously From Capital
reported Resolution Total NWM
Capital and balance sheet £bn £bn £bn
Gross loans and advances to customers 17.4 13.6 31.0
Loan impairment provisions -- (0.8) (0.8)
Net loans and advances to customers 17.4 12.8 30.2
Loans and advances to bank 3.3 4.6 7.9
Reverse repos 38.6 0.2 38.8
Securities 22.0 3.3 25.3
Cash and eligible bills 13.4 4.7 18.1
Other 6.2 2.0 8.2
Funded assets 100.9 27.6 128.5
Total assets 240.0 132.5 372.5
Customer deposits (excluding repos) 8.4 9.5 17.9
Bank deposits (excluding repos) 9.8 11.5 21.3
Risk elements in lending -- 2.3 2.3
Repos 27.3 -- 27.3
Debt securities in issue 5.4 1.3 6.7
Loan:deposit ratio (excluding repos) 208% 134% 169%
Risk-weighted assets 35.2 34.5 69.7
Notes:
(1) Excluding own credit adjustments and strategic disposals.
(2) Excluding restructuring costs and litigation and conduct costs.
(3) RBS's CET 1 target is 13% but for the purposes of computing segmental return on equity (ROE), to better reflect the differential drivers of capital usage, segmental operating profit after tax and adjusted for preference dividends is divided by average notional equity allocated a rate of 15% of the monthly average of segmental risk-weighted assets incorporating the effect of capital deductions (RWAes). RBS's Return on equity is calculated using profit for the period attributable to ordinary shareholders.
RBS's CET 1 target is 13% but for the purposes of computing segmental return on equity (ROE), to better reflect the
differential drivers of capital usage, segmental operating profit after tax and adjusted for preference dividends is
divided by average notional equity allocated a rate of 15% of the monthly average of segmental risk-weighted assets
incorporating the effect of capital deductions (RWAes). RBS's Return on equity is calculated using profit for the period
attributable to ordinary shareholders.
Capital Resolution
Quarter ended 30 September 2017
Total
Previously To NatWest To Central Capital
reported Markets items Resolution
Income statement £m £m £m £m
Net interest income from banking activities 76 (76) -- --
Net fees and commissions 6 (6) -- --
Income from trading activities (462) 462 -- --
Own credit adjustments 2 (2) -- --
Other operating income 4 (4) -- --
Non-interest income (450) 450 -- --
Total income (374) 374 -- --
Direct expenses
- staff (7) 7 -- --
- other (19) 19 -- --
Indirect expenses (35) 35 -- --
Restructuring costs
- direct (65) 65 -- --
- indirect 39 (39) -- --
Litigation and conduct costs (89) 89 -- --
Operating expenses (176) 176 -- --
Operating loss before impairment releases (550) 550 -- --
Impairment releases 71 (71) -- --
Operating loss (479) 479 -- --
Memo:
Total income - adjusted (1) (376) 376 -- --
Operating expenses - adjusted (1,2) (61) 61 -- --
Operating loss - adjusted (1,2) (366) 366 -- --
30 September 2017
Total
Previously To NatWest To Central Capital
reported Markets items & other Resolution
Capital and balance sheet £bn £bn £bn £bn
Gross loans and advances to customers 8.9 (8.9) -- --
Loan impairment provisions (0.5) 0.5 -- --
Net loans and advances to customers 8.4 (8.4) -- --
Loans and advances to bank 4.5 (4.5) -- --
Total assets 89.3 (89.3) -- --
Funded assets 22.2 (22.2) -- --
Risk elements in lending 1.6 (1.6) -- --
Provision coverage (3) 30% nm -- --
Risk-weighted assets 23.1 (23.1) -- --
Capital Resolution
Quarter ended 31 December 2016
Total
Previously To NatWest To Central Capital
reported Markets items & other Resolution
Income statement £m £m £m £m
Net interest income from banking activities 44 (44) -- --
Net fees and commissions 22 (22) -- --
Income from trading activities (173) 173 -- --
Own credit adjustments (8) 8 -- --
Other operating income (178) 178 -- --
Non-interest income (337) 337 -- --
Total income (293) 293 -- --
Direct expenses
- staff (23) 23 -- --
- other (3) 3 -- --
Indirect expenses (150) 150 -- --
Restructuring costs
- direct (21) 21 -- --
- indirect 13 (13) -- --
Litigation and conduct costs (3,156) 115 3,041 --
Operating expenses (3,340) 299 3,041 --
Operating loss before impairment releases (3,633) 592 3,041 --
Impairment releases 130 (130) -- --
Operating loss (3,503) 462 3,041 --
Memo:
Total income - adjusted (1) (285) 285 -- --
Operating expenses - adjusted (1,2) (176) 176 -- --
Operating loss - adjusted (1,2) (331) 331 -- --
31 December 2016
Total
Previously To NatWest To Central Capital
reported Markets items & other Resolution
Capital and balance sheet £bn £bn £bn £bn
Gross loans and advances to customers 13.6 (13.6) -- --
Loan impairment provisions (0.8) 0.8 -- --
Net loans and advances to customers 12.8 (12.8) -- --
Loans and advances to bank 4.6 (4.6) -- --
Total assets 132.5 (132.5) -- --
Funded assets 27.6 (27.6) -- --
Risk elements in lending 2.3 (2.3) -- --
Provision coverage (3) 35% nm -- --
Risk-weighted assets 34.5 (34.5) -- --
Capital Resolution
Year ended 31 December 2016
Total
Previously To NatWest To Central Capital
reported Markets items & other Resolution
Income statement £m £m £m £m
Net interest income from banking activities 239 (239) -- --
Net fees and commissions 98 (98) -- --
Income from trading activities (543) 543 -- --
Own credit adjustments 134 (134) -- --
Strategic disposal (81) 81 -- --
Other operating income (209) 209 -- --
Non-interest income (601) 601 -- --
Total income (362) 362 -- --
Direct expenses
- staff (102) 102 -- --
- other (84) 84 -- --
Indirect expenses (578) 578 -- --
Restructuring costs
- direct (56) 56 -- --
- indirect (22) 22 -- --
Litigation and conduct costs (3,413) 22 3,391 --
Operating expenses (4,255) 864 3,391 --
Operating loss before impairment losses (4,617) 1,226 3,391 --
Impairment losses (253) 253 -- --
Operating loss (4,870) 1,479 3,391 --
Memo:
Total income - adjusted (1) (415) 415 -- --
Operating expenses - adjusted (1,2) (764) 764 -- --
Operating loss - adjusted (1,2) (1,432) 1,432 -- --
31 December 2016
Total
Previously To NatWest To Central Capital
reported Markets items & other Resolution
Capital and balance sheet £bn £bn £bn £bn
Gross loans and advances to customers 13.6 (13.6) -- --
Loan impairment provisions (0.8) 0.8 -- --
Net loans and advances to customers 12.8 (12.8) -- --
Loans and advances to bank 4.6 (4.6) -- --
Total assets 132.5 (132.5) -- --
Funded assets 27.6 (27.6) -- --
Risk elements in lending 2.3 (2.3) -- --
Provision coverage (3) 35% nm -- --
Risk-weighted assets 34.5 (34.5) -- --
Notes:
(1) Excluding own credit adjustments and strategic disposals.
(2) Excluding restructuring costs and litigation and conduct costs.
(3) Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.
Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.
Williams & Glyn
Quarter ended
30 September 2017
Previously To To Central Total
reported UK PBB items & other (1) W&G
Income statement £m £m £m £m
Net interest income 166 (166) -- --
Non-interest income 43 (43) -- --
Total income 209 (209) -- --
Direct expenses
- staff (45) 28 17 --
- other (9) 4 5 --
Indirect expenses (18) 40 (22) --
Operating expenses (72) 72 -- --
Operating profit before impairment losses 137 (137) -- --
Impairment losses (11) 11 -- --
Operating profit 126 (126) -- --
Memo:
Operating expenses - adjusted (2) (72) 72 -- --
Operating profit - adjusted (2) 126 (126) -- --
Key metrics
Return on equity (3) 24.6% nm nm --
Return on equity - adjusted (2,3) 24.6% nm nm --
Net interest margin 2.60% nm nm --
Cost:income ratio 34.4% nm nm --
Cost:income ratio - adjusted (2) 34.4% nm nm --
Loan impairment charge as % of gross customer loans and advances 0.2% nm nm --
30 September 2017
Previously
reported To UK PBB Total W&G
Capital and balance sheet £bn £bn £bn
Gross loans and advances to customers 20.6 (20.6) --
Loan impairment provisions (0.2) 0.2 --
Net loans and advances to customers 20.4 (20.4) --
Funded assets 25.6 (25.6) --
Risk elements in lending 0.3 (0.3) --
Customer deposits (excluding repos) 24.6 (24.6) --
Loan:deposit ratio (excluding repos) 83% nm --
Provision coverage (4) 65% nm --
Risk-weighted assets 9.3 (9.3) --
Williams & Glyn
Quarter ended
31 December 2016
Previously To To Central Total
reported UK PBB items & other (1) W&G
Income statement £m £m £m
Net interest income 170 (170) -- --
Non-interest income 47 (47) -- --
Total income 217 (217) -- --
Direct expenses
- staff (60) 35 25 --
- other (13) 4 9 --
Indirect expenses (24) 58 (34) --
Operating expenses (97) 97 -- --
Operating profit before impairment losses 120 (120) -- --
Impairment losses (11) 11 -- --
Operating profit 109 (109) -- --
Memo:
Operating expenses - adjusted (2) (97) 97 -- --
Operating profit - adjusted (2) 109 (109) -- --
Key metrics
Return on equity (3) 20.6% nm nm --
Return on equity - adjusted (2,3) 20.6% nm nm --
Net interest margin 2.69% nm nm --
Cost:income ratio 44.7% nm nm --
Cost:income ratio - adjusted (2) 44.7% nm nm --
Loan impairment charge as % of gross customer loans and advances 0.2% nm nm --
31 December 2016
Previously
reported To UK PBB Total W&G
Capital and balance sheet £bn £bn £bn
Gross loans and advances to customers 20.8 (20.8) --
Loan impairment provisions (0.2) 0.2 --
Net loans and advances to customers 20.6 (20.6) --
Funded assets 25.8 (25.8) --
Risk elements in lending 0.4 (0.4) --
Customer deposits (excluding repos) 24.2 (24.2) --
Loan:deposit ratio (excluding repos) 85% nm --
Provision coverage (4) 65% nm --
Risk-weighted assets 9.6 (9.6) --
Williams & Glyn
Year ended
31 December 2016
Previously To To Central Total
reported UK PBB items & other(1) W&G
Income statement £m £m £m
Net interest income 658 (658) -- --
Non-interest income 179 (179) -- --
Total income 837 (837) -- --
Direct expenses
- staff (250) 142 108 --
- other (59) 27 32 --
Indirect expenses (84) 224 (140) --
Restructuring costs
- direct (57) (5) 62 --
- indirect -- 62 (62) --
Operating expenses (450) 450 -- --
Operating profit before impairment
losses 387 (387) -- --
Impairment losses (42) 42 -- --
Operating profit 345 (345) -- --
Memo:
Operating expenses - adjusted (2) (393) 393 -- --
Operating profit - adjusted (2) 402 (402) -- --
Key metrics
Return on equity (3) 16.2% nm nm --
Return on equity - adjusted (2,3) 18.9% nm nm --
Net interest margin 2.71% nm nm --
Cost:income ratio 53.8% nm nm --
Cost:income ratio - adjusted (2) 47.0% nm nm --
Loan impairment charge as % of gross customer loans and advances 0.2% nm nm --
31 December 2016
Previously
reported To UK PBB Total W&G
Capital and balance sheet £bn £bn £bn
Loans and advances to customers (gross) 20.8 (20.8) --
Loan impairment provisions (0.2) 0.2 --
Net loans and advances to customers 20.6 (20.6) --
Funded assets 25.8 (25.8) --
Risk elements in lending 0.4 (0.4) --
Customer deposits (excluding repos) 24.2 (24.2) --
Loan:deposit ratio (excluding repos) 85% nm --
Provision coverage (4) 65% nm --
Risk-weighted assets 9.6 (9.6) --
Notes:
(1) Transfers to Central items represents balances that have been reallocated between direct and indirect costs.
(2) Excluding restructuring costs.
(3) RBS's CET 1 target is 13% but for the purposes of computing segmental return on equity (ROE), to better reflect the differential drivers of capital usage, segmental operating profit after tax and adjusted for preference dividends is divided by average notional equity allocated at a rate of 15% of the monthly average of segmental risk-weighted assets incorporating the effect of capital deductions (RWAes). RBS's Return on equity is calculated using profit for the period attributable to ordinary
shareholders.
(4) Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.
Central items & other
Quarter ended
30 September 2017
Total Central
Previously From From Capital To NatWest items &
reported W&G (1) Resolution (1) Markets (1) other
Income statement £m £m £m £m £m
Net interest income 38 -- -- -- 38
Non-interest income 1 -- -- -- 1
Total income 39 -- -- -- 39
Direct expenses
- staff (384) (17) -- 13 (388)
- other (610) (5) -- 3 (612)
Indirect expenses 1,046 22 -- (16) 1,052
Restructuring costs
- direct (154) -- -- (54) (208)
- indirect 50 -- -- 54 104
Litigation and conduct costs (12) -- -- -- (12)
Operating expenses (64) -- -- -- (64)
Operating loss (25) -- -- -- (25)
Memo:
Operating expenses - adjusted (3) 52 -- -- -- 52
Operating profit - adjusted (3) 91 -- -- -- 91
30 September 2017
Total Central
Previously From Capital items &
reported Resolution other
Capital and balance sheet £bn £bn £bn
Gross loans and advances to customers 0.3 -- 0.3
Loan impairment provisions (0.2) -- (0.2)
Net loans and advances to customers 0.1 -- 0.1
Total assets 40.1 -- 40.1
Funded assets 38.4 -- 38.4
Risk elements in lending 0.1 -- 0.1
Customer deposits (excluding repos) 0.2 -- 0.2
Risk-weighted assets 1.1 -- 1.1
Central items & other
Quarter ended
31 December 2016
Total Central
Previously From From Capital items &
reported W&G (1) Resolution (1) other
Income statement £m £m £m £m
Net interest income 37 -- -- 37
Own credit adjustments (77) -- -- (77)
Gain on redemption of own debt 1 -- -- 1
Other operating income 446 -- -- 446
Total income 407 -- -- 407
Direct expenses
- staff (479) (25) -- (504)
- other (991) (9) -- (1,000)
Indirect expenses 1,547 34 -- 1,581
Restructuring costs
- direct (957) -- -- (957)
- indirect 121 -- -- 121
Litigation and conduct costs 192 -- (3,041) (2,849)
Operating expenses (567) -- (3,041) (3,608)
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