REG - Royal Bk Scot.Grp. - Segmental Reporting Restatement Document <Origin Href="QuoteRef">RBS.L</Origin>

NatwestAnnouncement

21/12/2017 10:20

RNS Number : 0638A
Royal Bank of Scotland Group PLC
21 December 2017
Segmental Reporting Restatement
Document
December 2017

The Royal Bank of Scotland Group plc (RBS)
Contents
Page


Forward-looking statements
1
Overview of business re-segmentation
1
Business transfers
2
Customer segments
3


Appendix - Re-segmentation reconciliations



Forward-looking statements
Certain sections in this document contain forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995, including (but not limited to) those with respect to RBS and its subsidiaries' regulatory capital position, financial position, risk-weighted assets, profitability and financial performance and the implementation of RBS's transformation programme under certain specified scenarios. In addition, forward-looking statements may include, without limitation, statements containing words such as "intends", "believes", "expects", "anticipates", "targets", "plans", "will" and similar expressions or variations on these expressions. These statements concern or may affect future matters, such as RBS's future economic results, business and capital plans and ability to achieve current strategies. Forward-looking statements are subject to a number of risks and uncertainties that might cause actual results and performance to differ materially from any expected future results or performance expressed in, or implied by, the forward-looking statements. Factors that could cause or contribute to differences in current expectations include, but are not limited to, legislative, political, fiscal and regulatory developments, accounting standards, competitive conditions, technological developments, interest and exchange rate fluctuations and general economic conditions. These and other factors, risks and uncertainties that may impact any forward-looking statement or RBS's actual results are discussed in RBS's 2016 Annual Report and Accounts and its interim results for the six-months ended 30 June 2017 and materials filed with, or furnished to, the United States Securities and Exchange Commission, including, but not limited to, RBS's most recent Annual Report on Form 20-F and Reports on Form 6-K. The forward-looking statements contained in this document speak only as of the date they are made or revised and RBS does not assume or undertake any obligation or responsibility to update any of the forward-looking statements contained in this document, whether as a result of new information, future events or otherwise, except to the extent legally required.
Overview of business re-segmentation
This announcement sets out changes to RBS's operating segments and changes in results presentation. The announcement contains re-presented financial results for the year ended 31 December 2016 and, to aid comparison of RBS's fourth quarter 2017 results with prior periods, re-presented financial information for the quarters ended 30 September 2017 and 31 December 2016. 
Segmental reorganisation 
RBS continues to deliver on its plan to build a strong, simple and fair bank for both customers and shareholders. To support this and reflect the progress made, the previously reported operating segments are now realigned. Unless otherwise stated, the following segments have been re-presented for the above periods.
 Williams & Glyn (W&G) is integrated into UK Personal and Business Banking (UK PBB). UK PBB serves individuals and mass affluent customers in the UK together with small and medium businesses, including Ulster Bank customers in Northern Ireland. 
 Capital Resolution, with the exception of the Retail Mortgaged Backed Securities (RMBS) litigation costs, is integrated into NatWest Markets (NWM). NWM provides financing and risk management to corporate and global financial institutional customers and trades with financial institutions, investors and counterparties for distribution and market making. 
 Capital Resolution RMBS litigation related costs are now included, at a reportable operating segment level, within Central items & other. There has been no impact on the legal entity level reporting. Central items include corporate functions, such as treasury, finance, risk management, compliance, legal, communications and human resources. Central functions manage RBS capital resources and RBS wide regulatory projects and provide services to the reportable segments.
 NatWest Markets (NWM) sees a reallocation of expenses between direct and indirect as a result of reorganisation in preparation for the implementation of the UK ring fencing regime. This representation takes effect from 1 January 2017 and does not affect previous periods.
 RBS International (RBSI) is moved out-with the Commercial and Private Banking (CPB) franchise, in preparation for the implementation of the UK ring fencing regime.


The Royal Bank of Scotland Group plc (RBS)
Business transfers
Changes to RBS's businesses, which impact its financial reporting, but where comparatives are not re-presented, are detailed below. Unless otherwise stated, the effective date of implementation is 1 October 2017.
 Shipping and other activities, which were formerly inCapital Resolution, are transferred from NWM to Commercial Banking. Commercial Banking serves commercial and corporate customers in the UK. 
 UK PBB Collective Investment Funds (CIFL) business is transferred to Private Banking in order to better serve customers.Private Bankingserves high net worth individuals in the UK. 
 The RBS International (RBSI) reportable operating segment is aligned to the legal entity The Royal Bank of Scotland International (Holdings) Limited. This predominantly involved transfers from Private Banking and Services and Functions within Central items & other in preparation for the implementation of the UK ring-fencing regime. 
 Commercial Banking whole business securitisations and relevant financial institutions (RFI) are transferred to NWM during December 2017. RFIs are prohibited from being within the ring-fence due to their nature and exposure to global financial markets, the move is in preparation for the implementation of the UK ring-fencing regime.
Impact of business transfers 

30 September 2017
Shipping and other activities
bn
Collective Investment Funds
bn
RBSI entity alignment
bn
Commercial Bank RFI transfers 
bn





Total assets
3.3
-
0.2
1.0
Risk-weighted assets
2.1
-
0.1
0.6
Assets under management
-
3.3
1.2
-
Annual results 2017
RBS's results for the year ended 31 December 2017 will be announced on Friday 23 February 2018. These results will be reported on the new structure and reporting basis as described above. 
In conjunction with this Segmental Reporting Restatement Document, a financial supplement showing re-presented financial information for the last nine quarters is available at www.rbs.com/results
Document roadmap 
Pages 3 to 8 of this document show the income statement, balance sheet line items and key metrics for the new reportable segments. 
Re-segmentation reconciliation Appendix - summarises how the previously reported segments are allocated to the new reportable segments. These tables include the income statement, key metrics (e.g. return on equity (ROE), net interest margin, cost:income ratio and balance sheet line items).
For further information contact:
Matt Waymark
Investor Relations
+ 44 (0)20 7672 2802
Group Media Centre
+44 (0)131 523 4205

Customer segments












Quarter ended 30 September 2017

PBB

CPB







Ulster Bank

Commercial 
Private
RBS
NatWest

Central items
Total

UK PBB
RoI

Banking
Banking
International
Markets

& other (1)
RBS
Income statement 
m
m

m
m
m
m

m
m











Net interest income
1,294
104

570
116
83
99

38
2,304
Non-interest income
463
46

358
50
14
(74)

1
858
Own credit adjustments
-
-

-
-
-
(5)

-
(5)











Total income
1,757
150

928
166
97
20

39
3,157











Direct expenses










 - staff
(191)
(50)

(113)
(36)
(13)
(163)

(388)
(954)
 - other
(55)
(17)

(55)
(6)
(3)
(72)

(612)
(820)
Indirect expenses
(525)
(52)

(252)
(58)
(33)
(132)

1,052
-
Restructuring costs










 - direct
(1)
(1)

(2)
(1)
(2)
(29)

(208)
(244)
 - indirect
(47)
(8)

(19)
(2)
-
(28)

104
-
Litigation and conduct costs
-
(1)

(2)
-
(8)
(102)

(12)
(125)











Operating expenses
(819)
(129)

(443)
(103)
(59)
(526)

(64)
(2,143)











Operating profit/(loss) before impairment (losses)/releases
938
21

485
63
38
(506)

(25)
1,014
Impairment (losses)/releases
(78)
10

(151)
3
2
71

-
(143)











Operating profit/(loss)
860
31

334
66
40
(435)

(25)
871











Memo:










Total income - adjusted (2)
1,757
150

928
166
97
25

39
3,162
Operating expenses - adjusted (3)
(771)
(119)

(420)
(100)
(49)
(367)

52
(1,774)
Operating profit/(loss) - adjusted (2,3)
908
41

357
69
50
(271)

91
1,245











For the notes to this table refer to page 8.








Customer segments 

Quarter ended 30 September 2017

PBB

CPB







Ulster Bank

Commercial
Private
RBS
NatWest

Central items
Total
Key metrics
UK PBB
RoI

Banking
Banking
International
Markets

& other (1)
RBS











Return on equity (4)
34.2%
4.6%

8.6%
13.2%
10.4%
(15.4%)

nm
4.5%
Return on equity - adjusted (2,3,4)
36.2%
6.1%

9.3%
13.8%
13.6%
(10.3%)

nm
8.2%
Net interest margin
2.83%
1.58%

1.74%
2.39%
1.39%
1.24%

nm
2.12%
Cost:income ratio
46.6%
86.0%

45.7%
62.0%
60.8%
nm

nm
67.5%
Cost:income ratio - adjusted (2,3)
43.9%
79.3%

43.1%
60.2%
50.5%
nm

nm
55.6%
Loan impairment charge as a % of gross loans and advances
0.2%
(0.2%)

0.6%
nm
nm
nm

nm
nm























As at 30 September 2017
Capital and balance sheet
bn
bn

bn
bn
bn
bn

bn
bn











Loan impairment provisions
(1.3)
(1.1)

(0.8)
-
-
(0.5)

(0.2)
(3.9)
Net loans and advances to customers
160.8
19.5

96.6
13.3
9.3
25.1

0.1
324.7
Funded assets
190.1
25.1

147.3
19.9
24.3
134.9

38.4
580.0
Risk elements in lending
2.0
3.4

1.7
0.1
0.1
1.6

0.1
9.0
Customer deposits (excluding repos)
178.6
17.3

98.2
27.0
24.9
13.7

0.2
359.9
Loan:deposit ratio (excluding repos)
90%
113%

98%
49%
37%
184%

nm
90%
Provision coverage (5)
65%
33%

48%
37%
31%
nm

nm
43%
Risk-weighted assets 
43.3
17.9

74.6
9.2
9.6
54.9

1.1
210.6
RWA equivalent
47.0
18.9

77.4
9.2
9.6
59.1

1.3
222.5











For notes to this table refer to page 8.












Customer segments 












Quarter ended 31 December 2016

PBB

CPB







Ulster Bank

Commercial 
Private
RBS
NatWest

Central items
Total

UK PBB
RoI

Banking
Banking
International
Markets

& other (1)
RBS
Income statement 
m
m

m
m
m
m

m
m











Net interest income
1,263
105

542
111
77
73

37
2,208
Non-interest income
293
32

325
50
19
(44)

446
1,121
Own credit adjustments
-
-

-
-
-
(37)

(77)
(114)
Gain on redemption of own debt
-
-

-
-
-
-

1
1











Total income
1,556
137

867
161
96
(8)

407
3,216











Direct expenses










 - staff
(196)
(57)

(130)
(39)
(12)
(87)

(504)
(1,025)
 - other
(76)
(23)

(69)
(12)
(4)
(10)

(1,000)
(1,194)
Indirect expenses
(602)
(65)

(357)
(95)
(45)
(417)

1,581
-
Restructuring costs










 - direct
(1)
(6)

(12)
(6)
(1)
(24)

(957)
(1,007)
 - indirect
(50)
2

(34)
(8)
(1)
(30)

121
-
Litigation and conduct costs
(214)
(77)

(407)
1
(1)
(581)

(2,849)
(4,128)











Operating expenses
(1,139)
(226)

(1,009)
(159)
(64)
(1,149)

(3,608)
(7,354)











Operating profit/(loss) before impairment (losses)/releases
417
(89)

(142)
2
32
(1,157)

(3,201)
(4,138)
Impairment (losses)/releases
(27)
47

(83)
8
1
130

(1)
75











Operating profit/(loss)
390
(42)

(225)
10
33
(1,027)

(3,202)
(4,063)











Memo:










Total income - adjusted (2)
1,556
137

867
161
96
29

483
3,329
Operating expenses - adjusted (3)
(874)
(145)

(556)
(146)
(61)
(514)

77
(2,219)
Operating profit/(loss) - adjusted (2,3)
655
39

228
23
36
(355)

559
1,185











For the notes to this table refer to page 8.








Customer segments 

Quarter ended 31 December 2016

PBB

CPB







Ulster Bank

Commercial
Private
RBS
NatWest

Central items
Total
Key metrics
UK PBB
RoI

Banking
Banking
International
Markets

& other (1)
RBS











Return on equity (4)
15.1%
(5.8%)

(9.1%)
1.6%
8.8%
(27.0%)

nm
(48.2%)
Return on equity - adjusted (2,3,4)
26.2%
5.4%

5.3%
4.5%
9.8%
(10.3%)

nm
8.6%
Net interest margin
2.91%
1.59%

1.68%
2.50%
1.34%
0.86%

nm
2.19%
Cost:income ratio
73.2%
165.0%

117.1%
98.8%
66.7%
nm

nm
230.2%
Cost:income ratio - adjusted (2,3)
56.2%
105.8%

62.6%
90.7%
63.5%
nm

nm
66.3%
Loan impairment charge as a % of gross loans and advances
0.1%
(0.9%)

0.3%
nm
nm
nm

nm
nm























As at 31 December 2016
Capital and balance sheet
bn
bn

bn
bn
bn
bn

bn
bn











Loan impairment provisions
(1.5)
(1.2)

(0.8)
-
-
(0.8)

(0.2)
(4.5)
Net loans and advances to customers
152.7
18.9 

100.1 
12.2 
8.8 
30.2 

0.1 
323 
Funded assets
181.4 
24 

150.5 
18.5 
23.4 
128.5 

25.4 
551.7 
Customer deposits (excluding repos)
170.0
16.1

97.9 
26.6
25.2
17.9

0.2
353.9
Loan:deposit ratio (excluding repos)
90%
117%

102%
46%
35%
169%

nm
91%
Provision coverage (5)
65%
34%

43%
30%
35%
nm

nm
43%
Risk-weighted assets 
42.3 
18.1 

78.5 
8.6 
9.5 
69.7 

1.5 
228.2 
RWA equivalent
45.8 
19.5 

82.6 
8.6 
9.5 
74.7 

1.7 
242.4 
For the notes to this table refer to page 8.


Customer segments












Year ended 31 December 2016

PBB

CPB







Ulster Bank

Commercial 
Private
RBS
NatWest

Central items
Total

UK PBB
RoI

Banking
Banking
International
Markets

& other (1)
RBS
Income statement 
m
m

m
m
m
m

m
m











Net interest income
4,945
409

2,143
449
303
343

116
8,708
Non-interest income
1,182
164

1,272
208
71
763

4
3,664
Own credit adjustments
-
3

-
-
-
187

(10)
180
Loss on redemption of own debt
-
-

-
-
-
-

(126)
(126)
Strategic disposals
-
-

-
-
-
(81)

245
164











Total income
6,127
576

3,415
657
374
1,212

229
12,590











Direct expenses










 - staff
(832)
(207)

(522)
(154)
(45)
(358)

(2,364)
(4,482)
 - other
(320)
(55)

(235)
(44)
(17)
(119)

(2,948)
(3,738)
Indirect expenses
(2,246)
(195)

(1,179)
(313)
(107)
(1,607)

5,647
-
Restructuring costs










 - direct
(46)
(38)

(25)
(7)
(2)
(75)

(1,913)
(2,106)
 - indirect
(198)
(2)

(83)
(30)
(3)
(115)

431
-
Litigation and conduct costs
(634)
(172)

(423)
(1)
-
(550)

(4,088)
(5,868)











Operating expenses
(4,276)
(669)

(2,467)
(549)
(174)
(2,824)

(5,235)
(16,194)











Operating profit/(loss) before impairment (losses)/releases
1,851
(93)

948
108
200
(1,612)

(5,006)
(3,604)
Impairment (losses)/releases
(125)
113

(206)
3
(10)
(253)

-
(478)











Operating profit/(loss)
1,726
20

742
111
190
(1,865)

(5,006)
(4,082)











Memo:










Total income - adjusted (2)
6,127
573

3,415
657
374
1,106

120
12,372
Operating expenses - adjusted (3)
(3,398)
(457)

(1,936)
(511)
(169)
(2,084)

335
(8,220)
Operating profit/(loss) - adjusted (2,3)
2,604
229

1,273
149
195
(1,231)

455
3,674











For the notes to this table refer to page 8.








Customer segments

Year ended 31 December 2016

PBB

CPB







Ulster Bank

Commercial
Private
RBS
NatWest

Central items
Total
Key metrics
UK PBB
RoI

Banking
Banking
International
Markets

& other (1)
RBS











Return on equity (4)
16.2%
0.7%

4.1%
5.6%
13.8%
(12.5%)

nm
(17.9%)
Return on equity - adjusted (2,3,4)
25.1%
8.4%

8.4%
7.8%
14.2%
(8.7%)

nm
1.6%
Net interest margin
2.97%
1.62%

1.76%
2.66%
1.36%
0.91%

nm
2.18%
Cost:income ratio
69.8%
116.1%

71.0%
83.6%
46.5%
nm

nm
129.0%
Cost:income ratio - adjusted (2,3)
55.5%
79.8%

54.8%
77.8%
45.2%
188.4%

nm
66.0%
Loan impairment charge as a % of gross loans and advances
0.1%
(0.6%)

0.2%
nm
nm
nm

nm
nm























As at 31 December 2016
Capital and balance sheet
bn
bn

bn
bn
bn
bn

bn
bn











Loan impairment provisions
(1.5)
(1.2)

(0.8)
-
-
(0.8)

(0.2)
(4.5)
Net loans and advances to customers
152.7 
18.9 

100.1 
12.2 
8.8 
30.2 

0.1 
323 
Funded assets
181.4 
24.0 

150.5 
18.5 
23.4 
128.5 

25.4 
551.7 
Customer deposits (excluding repos)
170.0
16.1

97.9
26.6
25.2
17.9

0.2
353.9
Loan:deposit ratio (excluding repos)
90%
117%

102%
46%
35%
169%

nm
91%
Provision coverage (5)
65%
34%

43%
30%
35%
nm

nm
43%
Risk-weighted assets 
42.3 
18.1 

78.5 
8.6 
9.5 
69.7 

1.5 
228.2 
RWA equivalent
45.8 
19.5 

82.6 
8.6 
9.5 
74.7 

1.7 
242.4 











nm = not meaningful
Notes:
(1)
Central items includes unallocated costs and assets which principally comprise volatile items under IFRS.
(2)
Excluding own credit adjustments, gain/(loss) on redemption of own debt and strategic disposals.
(3)
Excluding restructuring costs and litigation and conduct costs.
(4) 
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 different rates of 14% (Ulster Bank RoI - 11% prior to Q1 2017), 11% (Commercial Banking), 14% (Private Banking - 15% prior to Q1 2017), 12% (RBS International) and 15% for all other segments, 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.
(5)
Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.

Appendix
Re-segmentation reconciliation


UK PBB

Quarter ended

Quarter ended

Year ended

30 September 2017

31 December 2016

31 December 2016

Previously
From
Total 

Previously
From
Total 

Previously
From
Total 

reported
W&G
UK PBB 

reported
W&G
UK PBB 

reported
W&G
UK PBB 
Income statement
m 
m 
m 

m 
m 
m 

m 
m 
m 












Net interest income
1,128
166
1,294

1,093
170
1,263

4,287
658
4,945
Non-interest income 
420
43 
463

246
47 
293

1,003
179
1,182












Total income
1,548
209 
1,757

1,339
217 
1,556

5,290 
837
6,127












Direct expenses











 - staff
(163)
(28)
(191)

(161)
(35)
(196)

(690)
(142)
(832)
 - other
(51)
(4)
(55)

(72)
(4)
(76)

(293)
(27)
(320)
Indirect expenses
(485)
(40)
(525)

(544)
(58)
(602)

(2,022)
(224)
(2,246)
Restructuring costs











 - direct
(1)
-- 
(1)

(1)
-- 
(1)

(51)
5
(46)
 - indirect
(47)
-- 
(47)

(50)
-- 
(50)

(136)
(62)
(198)
Litigation and conduct costs
-- 
-- 
-- 

(214)
-- 
(214)

(634)
-- 
(634)












Operating expenses
(747)
(72)
(819)

(1,042)
(97)
(1,139)

(3,826)
(450)
(4,276)












Operating profit before impairment 











 losses
801
137
938

297
120
417

1,464 
387
1,851
Impairment losses
(67)
(11)
(78)

(16)
(11)
(27)

(83)
(42)
(125)












Operating profit 
734
126
860

281
109
390

1,381
345
1,726












Memo:











Operating expenses - adjusted (1)
(699)
(72)
(771)

(777)
(97)
(874)

(3,005)
(393)
(3,398)
Operating profit - adjusted (1)
782
126
908

546
109
655

2,202
402
2,604












Key metrics























Return on equity (2) 
36.8% 
24.6% 
34.2% 

13.5% 
20.6% 
15.1% 

16.2% 
16.2% 
16.2% 
Return on equity - adjusted (1,2)
39.3% 
24.6% 
36.2% 

27.8% 
20.6% 
26.2% 

26.7% 
18.9% 
25.1% 
Net interest margin
2.87% 
2.60% 
2.83% 

2.94% 
2.69% 
2.91% 

3.01% 
2.71% 
2.97% 
Cost:income ratio 
48.3% 
34.4% 
46.6% 

77.8% 
44.7% 
73.2% 

72.3% 
53.8% 
69.8% 
Cost:income ratio - adjusted (1)
45.2% 
34.4% 
43.9% 

58.0% 
44.7% 
56.2% 

56.8% 
47.0% 
55.5% 
Loan impairment charge as % of gross











 customer loans and advances 
0.2% 
0.2% 
0.2% 

-- 
0.2% 
0.1% 

0.1% 
0.2% 
0.1% 

30 September 2017

31 December 2016

Previously
From
Total

Previously
From
Total

reported
W&G
UK PBB

reported
W&G
UK PBB
Capital and balance sheet
bn
bn
bn

bn
bn
bn
















Gross loans and advances to customers 
141.5
20.6
162.1

133.4
20.8
154.2
Loan impairment provisions
(1.1)
(0.2)
(1.3)

(1.3)
(0.2)
(1.5)








Net loans and advances to customers
140.4
20.4 
160.8

132.1
20.6
152.7
Funded assets
164.5
25.6 
190.1

155.6
25.8
181.4
Risk elements in lending
1.7
0.3 
2.0

2.0
0.4
2.4
Customer deposits (excluding repos)
154.0
24.6 
178.6

145.8
24.2
170.0
Loan:deposit ratio (excluding repos)
91% 
83% 
90% 

91% 
85% 
90% 
Provision coverage (3)
65% 
65% 
65% 

65% 
65% 
65% 
Risk-weighted assets 
34.0 
9.3 
43.3

32.7
9.6
42.3
Notes:

(1)
Excluding restructuring costs and litigation and conduct costs.
(2)
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.
(3)
Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.

NatWest Markets

Quarter ended

30 September 2017



From


Previously
From Capital
Central items
Total

reported
Resolution
& other
NWM
Income statement
m 
m 
m
m 





Net interest income
23
76
-- 
99
Net fees and commissions
27 
6
-- 
33 
Income from trading activities
350 
(462)
-- 
(112)
Own credit adjustments
(7)
2
-- 
(5)
Other operating income
1 
4
-- 
5 
Non-interest income 
371 
(450)
-- 
(79)





Total income
394 
(374)
-- 
20





Direct expenses




 - staff
(143)
(7)
(13)
(163)
 - other
(50)
(19)
(3)
(72)
Indirect expenses
(113)
(35)
16
(132)
Restructuring costs




 - direct
(18)
(65)
54
(29)
 - indirect
(13)
39 
(54)
(28)
Litigation and conduct costs
(13)
(89)
-- 
(102)





Operating expenses
(350)
(176)
-- 
(526)





Operating profit/(loss) before impairment 




 releases
44
(550)
-- 
(506)
Impairment releases 
-- 
71
-- 
71





Operating profit/(loss)
44 
(479)
-- 
(435)





Memo:




Total income - adjusted (1)
401 
(376)
-- 
25
Operating expenses - adjusted (1,2)
(306)
(61)
-- 
(367)
Operating profit/(loss) - adjusted (1,2)
95 
(366)
-- 
(271)





Key metrics









Return on equity (3) 
0.6% 
nm
nm
(15.4%)
Return on equity - adjusted (1,2,3)
3.6% 
nm
nm
(10.3%)
Net interest margin
0.48% 
nm
nm
1.24% 
Cost:income ratio 
88.8% 
nm
nm
nm
Cost:income ratio - adjusted (1,2)
76.3% 
nm
nm
nm







30 September 2017

Previously
From Capital
Total

reported
Resolution
NWM
Capital and balance sheet
bn
bn
bn




Gross loans and advances to customers
16.7
8.9
25.6
Loan impairment provisions
-- 
(0.5)
(0.5)




Net loans and advances to customers
16.7 
8.4 
25.1 
Loans and advances to bank
2.8 
4.5 
7.3 
Reverse repos
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.

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.

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)





Operating loss before impairment losses
(160)
-- 
(3,041)
(3,201)
Impairment losses
(1)
-- 
-- 
(1)





Operating loss 
(161)
-- 
(3,041)
(3,202)





Memo:




Total income - adjusted (2)
483 
-- 
-- 
483 
Operating expenses - adjusted (3)
77 
-- 
-- 
77 
Operating profit - adjusted (2,3)
559 
-- 
-- 
559 

31 December 2016



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
28.2 
-- 
28.2 
Funded assets
25.4 
-- 
25.4 
Customer deposits (excluding repos)
0.2 
-- 
0.2 
Risk-weighted assets 
1.5 
-- 
1.5 


Central items & other

Year 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
116 
-- 
-- 
116 
Own credit adjustments
(10)
-- 
-- 
(10)
Loss on redemption of own debt
(126)
-- 
-- 
(126)
Strategic disposals
245 
-- 
-- 
245 
Other operating income
4 
-- 
-- 
4 





Total income
229 
-- 
-- 
229 





Direct expenses




 - staff
(2,256)
(108)
-- 
(2,364)
 - other
(2,916)
(32)
-- 
(2,948)
Indirect expenses
5,507 
140 
-- 
5,647 
Restructuring costs




 - direct
(1,851)
(62)
-- 
(1,913)
 - indirect
369 
62 
-- 
431 
Litigation and conduct costs
(697)
-- 
(3,391)
(4,088)





Operating expenses
(1,844)
-- 
(3,391)
(5,235)





Operating loss
(1,615)
-- 
(3,391)
(5,006)





Memo:




Total income - adjusted (2)
120 
-- 
-- 
120 
Operating expenses - adjusted (3)
335 
-- 
-- 
335 
Operating profit - adjusted (2,3)
455 
-- 
-- 
455 

31 December 2016







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
28.2 
-- 
28.2 
Funded assets
25.4 
-- 
25.4 
Customer deposits (excluding repos)
0.2 
-- 
0.2 
Risk-weighted assets 
1.5 
-- 
1.5 
Notes:
(1)
Transfers to Central items represents balances that have been reallocated between direct and indirect costs.
(2)
Excluding own credit adjustments, gain/(loss) on redemption of own debt and strategic disposals.
(3)
Excluding restructuring costs and litigation and conduct costs.
Legal Entity Identifier: 2138005O9XJIJN4JPN90

This information is provided by RNS
The company news service from the London Stock Exchange
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