RBS February 2016 Restatement

RNS Number : 1397O
Royal Bank of Scotland Group PLC
04 February 2016
 

 

 

 

 

 

 

The Royal Bank of Scotland Group plc

 

 

 

Restatement

Document

February 2016

 

 

 

 

 

 

 

 

Contents

 

 

Page

 

 

Introduction

1

Customer segments

4

 

 

Appendix 1 Financial statement reconciliations

 

 

 

Financial statement reconciliations

11

 

 

Appendix 2 Components of customer segments

 

 

 

Operating profit/(loss) by segment

17

UK PBB

18

Ulster Bank RoI

21

Commercial Banking

24

Private Banking

27

RBS International

30

Corporate & Institutional Banking

33

Capital Resolution

36

Williams & Glyn

39

 

 

Appendix 3 Allocation of previous segments to new customer segments

 

 

 

Introduction

43

UK PBB

44

Ulster Bank

47

Commercial Banking

50

Private Banking

53

Corporate & Institutional Banking

56

RCR

59

Central items & other

62

 

 

 

 

 

Forward-looking statements

Certain sections in this document contain 'forward-looking statements' as that term is defined in the United States Private Securities Litigation Reform Act of 1995, such as statements that include the words 'expect', 'estimate', 'project', 'anticipate', 'believes', 'should', 'intend', 'plan', 'could', 'probability', 'risk', 'target', 'goal', 'objective', 'will', 'endeavour', 'outlook', 'optimistic', 'prospects' and similar expressions or variations on such expressions. These statements concern or may affect future matters, such as RBS's future economic results, business plans and 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 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, fiscal and regulatory developments, accounting standards, competitive conditions, technological developments, 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 2015 Annual Report and Accounts (ARA). The forward-looking statements contained in this document speak only as at the date hereof, and RBS does not assume or undertake any obligation or responsibility to update any forward-looking statement to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

 

 

 

The Royal Bank of Scotland Group plc (RBS)

 

Business reorganisation and reporting changes

 

This announcement sets out changes to RBS's financial reporting: a change in accounting policy for pensions; revised operating segments; and changes in results presentation.  The announcement contains restated financial results for the year ended 31 December 2014 and, to aid comparison of RBS's fourth quarter 2015 results with prior periods, restated financial information for the quarters ended 30 September 2015 and 31 December 2014.

 

Pension accounting policy

In light of developments during 2015, in particular publication by the International Accounting Standards Board of its exposure draft of amendments to IFRIC 14 'IAS 19 - The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction', RBS has revised its accounting policy for determining whether or not it has an unconditional right to a refund of surpluses in its employee pension funds. Previously, where trustees have the power to use a scheme surplus to enhance benefits for members, RBS did not regard such power, in and of itself, as undermining the bank's unconditional legal right to a refund of a surplus existing at that point in time. Under the new policy, where RBS has a right to a refund, this is no longer regarded as unconditional if pension fund trustees can use a scheme surplus to enhance benefits for plan members. As a result of this policy change, a minimum funding requirement to cover an existing shortfall in a scheme may give rise to an additional liability and surpluses may not be recognised in full. The accounting policy change is being applied retrospectively and comparatives restated. 

 

Segmental reorganisation

RBS continues to deliver on its plan to build a stronger, simpler and fairer bank for both customers and shareholders. To support this and reflect the progress made, the previously reported operating segments will now realign as follows:

 

Personal & Business Banking (PBB) comprises two reportable segments:

· UK PBB serves individuals and mass affluent customers in the UK together with small businesses (generally up to £2 million turnover). UK PBB includes Ulster Bank customers in Northern Ireland.

· Ulster Bank RoI serves individuals and businesses in the Republic of Ireland (RoI).

 

Commercial & Private Banking (CPB) comprises three reportable segments:

· Commercial Banking serves commercial and mid-corporate customers in the UK.

· Private Banking serves high net worth individuals in the UK.

· RBS International (RBSI) serves retail, commercial, corporate and financial institution customers in Jersey, Guernsey, Isle of Man and Gibraltar.

 

Corporate & Institutional Banking (CIB) serves UK and western European customers, both corporates and financial institutions, supported by trading and distribution platforms in the UK, US and Singapore.

Capital Resolution includes CIB Capital Resolution and the remainder of RBS Capital Resolution (RCR).

Williams & Glyn (W&G) comprises RBS England and Wales branch-based businesses, along with certain small and medium enterprises and corporate activities across the UK.

Central items & other includes corporate functions, such as treasury, finance, risk management, compliance, legal, communications and human resources. Central functions manages RBS capital resources and RBS-wide regulatory projects and provides services to the reportable segments. Balances in relation to Citizens and the international private banking business are included in Central items in the relevant periods.


The Royal Bank of Scotland Group plc (RBS)

 

Reporting changes

In line with RBS's strategy to be a simpler bank the following reporting changes have been implemented in relation to the presentation of the results.

 

One-off and other items

The following items were previously reported separately after operating profit; they are now reported within operating profit:

 

·

Own credit adjustments;

·

Gain/(loss) on redemption of own debt;

·

Write-down of goodwill;

·

Strategic disposals; and

·

RFS Holdings minority interest (RFS MI) (restated for periods up to and including Q4 2014 only; this has been reported within operating profit since Q1 2015).

 

 

Own credit adjustments are included within segmental results in CIB, Capital Resolution and Central items (Treasury) in line with where the related liabilities are recorded. The non-statutory results will continue to show these items and restructuring costs and litigation and conduct costs as separate line items within the relevant caption of the income statement where significant.

 

Allocation of central balance sheet items

RBS allocates all central costs relating to Services and Functions to the business using appropriate drivers; these are reported as indirect costs in the segmental income statements. However, previously central balance sheet items have not been allocated. The assets (and risk-weighted assets) held centrally, mainly relating to Treasury, are now allocated to the business using appropriate drivers.

 

Revised treasury allocations

Treasury allocations which are included within segmental net interest income and segmental net interest margins, have been revised to reflect the following:  

·

In preparation for the separation of W&G, the element of treasury allocations previously charged to UK PBB is now retained centrally.

·

To reflect the impact of changes to the notional equity allocation detailed below.

 

Revised segmental return on equity

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 notional equity allocated at different rates of 11% (Commercial Banking and Ulster Bank RoI), 12% (RBS International) and 15% for all other segments, of the monthly average of segmental risk-weighted assets after capital deductions (RWAes). This notional equity was previously 13% for all segments. In addition, due to changes in UK tax rules enacted in the Finance Act 2015, RBS has increased its longer-term effective 31 December tax rate. The notional tax rate used in the segmental ROE has been revised from 25% to 28% (Ulster Bank RoI - 15%; RBS International - 10%). RBS's forward planning tax rate is 26%.

 


The Royal Bank of Scotland Group plc (RBS)

 

Annual results 2015

RBS's results for the year ended 31 December 2015 will be announced on Friday 26 February 2016. These results will be reported on the new structure and reporting basis as described above.

 

In conjunction with this Restatement Document, a financial supplement showing restated financial information for the last nine quarters will be available at http://www.rbs.com/ir

 

Document roadmap

Pages 17 to 41 show the income statement, balance sheet line items and key metrics for the new reportable segments. These reflect the re-presentation of certain items that were previously reported below operating profit.

 

Appendix 1 reconciles the previously published non-statutory consolidated income statement to the re-presented position and the previously published statutory consolidated income statement, consolidated statement of comprehensive income and consolidated balance sheet to the restated position. The Common Equity Tier 1 capital position and RWAs will not be restated but an illustration of the impact on the metrics of the items, discussed under 'Pension accounting policy' and 'Reporting changes' is also included on pages 1 and 2.

 

Appendix 2 summarises the performance of each of the new reportable segments and shows how the previously reported segments have been allocated to the new reportable segments as well as the adjustments to the new reporting basis. These tables include the income statement, key metrics (e.g. ROE, net interest margin including and excluding central interest-earning assets (IEAs), cost:income ratio) and balance sheet line items.

 

Appendix 3 shows the adjustments to the previously reported segment results to the new reporting basis and how these segments have been allocated to the new reportable segments. These tables include certain key metrics and balance sheet line items.

 

For further information contact:

 

Richard O'Connor

Head of Investor Relations

+ 44 (0)20 7672 1758

 

Group Media Centre

+44 (0) 131 523 4205

 

 

Customer segments

 

Total RBS

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter ended 30 September 2015

 

PBB

 

CPB

 

 

 

 

 

 

 

 

Ulster Bank

 

Commercial

Private

RBS

 

 

Capital

 

Central items

Total

 

UK PBB

RoI

 

Banking

Banking

International

CIB

 

Resolution

W&G

& other (1)

RBS

Income statement

£m

£m

 

£m

£m

£m

£m

 

£m

£m

£m

£m

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

1,055 

90 

 

504 

109 

73 

29 

 

78 

167 

82 

2,187 

Non-interest income

258 

74 

 

296 

51 

14 

299 

 

(27)

44 

(149)

860 

Own credit adjustments

- 

- 

 

- 

- 

- 

78 

 

38 

- 

20 

136 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total income

1,313 

164 

 

800 

160 

87 

406 

 

89 

211 

(47)

3,183 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct expenses

 

 

 

 

 

 

 

 

 

 

 

 

  - staff

(202)

(40)

 

(117)

(43)

(9)

(97)

 

(60)

(55)

(658)

(1,281)

  - other

(68)

(22)

 

(20)

(11)

(3)

(19)

 

(41)

(12)

(789)

(985)

  - operating lease costs

- 

- 

 

(34)

- 

- 

- 

 

- 

- 

- 

(34)

Indirect expenses

(464)

(48)

 

(238)

(65)

(24)

(242)

 

(245)

(24)

1,350 

- 

Restructuring costs

 

 

 

 

 

 

 

 

 

 

 

 

  - direct

(5)

(3)

 

(1)

2 

- 

(3)

 

(190)

- 

(647)

(847)

  - indirect

(23)

(2)

 

2 

(1)

(2)

(148)

 

(300)

- 

474 

- 

Litigation and conduct costs

- 

- 

 

- 

- 

- 

(6)

 

(101)

- 

(22)

(129)

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

(762)

(115)

 

(408)

(118)

(38)

(515)

 

(937)

(91)

(292)

(3,276)

 

 

 

 

 

 

 

 

 

 

 

 

 

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

551 

49 

 

392 

42 

49 

(109)

 

(848)

120 

(339)

(93)

Impairment (losses)/releases

(2)

54 

 

(16)

(4)

1 

- 

 

50 

(5)

1 

79 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating profit/(loss)

549 

103 

 

376 

38 

50 

(109)

 

(798)

115 

(338)

(14)

 

 

 

 

 

 

 

 

 

 

 

 

 

Memo:

 

 

 

 

 

 

 

 

 

 

 

 

Profit attributable to ordinary shareholders (2)

 

 

 

 

 

 

 

 

 

 

 

940 

Total income - adjusted (3)

1,313 

164 

 

800 

160 

87 

328 

 

51 

211 

(67)

3,047 

Operating expenses - adjusted (4)

(734)

(110)

 

(409)

(119)

(36)

(358)

 

(346)

(91)

(97)

(2,300)

Operating profit/(loss) - adjusted (3,4)

577 

108 

 

375 

37 

52 

(30)

 

(245)

115 

(163)

826 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the notes to this table refer to the following page.

 

 

 

 

 

 

 

 

 

Customer segments

 

 

30 September 2015

 

PBB

 

CPB

 

 

 

 

 

 

 

 

Ulster Bank

 

 Commercial

Private

RBS

 

 

Capital

 

Central items

 Total

Key metrics

UK PBB

RoI

 

Banking

Banking

International

CIB

 

Resolution

W&G

& other (1)

RBS

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on equity (5)

27.2%

16.7%

 

12.3%

7.4%

18.0%

(6.4%)

 

nm

nm

nm

9.0%

Return on equity - adjusted (3,4,5)

28.7%

17.5%

 

12.3%

7.1%

18.8%

(2.7%)

 

nm

nm

nm

16.2%

Net interest margin

3.19%

1.52%

 

1.89%

2.72%

1.43%

0.62%

 

0.60%

2.88%

nm

2.09%

Net interest margin excluding central IEAs

3.60%

1.52%

 

2.68%

3.92%

4.38%

0.78%

 

0.70%

3.40%

nm

2.09%

Cost:income ratio

58%

70%

 

51%

74%

44%

127%

 

nm

43%

nm

103%

Cost:income ratio - adjusted (3,4)

56%

67%

 

51%

74%

41%

109%

 

nm

43%

nm

75%

Loan impairment charge as a % of gross loans and advances

- 

(1.2%)

 

0.1%

0.1%

(0.1%)

- 

 

(0.5%)

0.1%

nm

(0.1%)

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital and balance sheet (6)

£bn

£bn

 

£bn

£bn

£bn

£bn

 

£bn

£bn

£bn

£bn

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans and advances to customers (gross)

118.3 

18.8 

 

89.8 

11.1 

7.1 

19.8 

 

34.8 

20.3 

3.0 

323.0 

Loan impairment provisions

(2.0)

(2.0)

 

(0.7)

- 

(0.1)

- 

 

(4.0)

(0.3)

(0.2)

(9.3)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loans and advances to customers

116.3 

16.8 

 

89.1 

11.1 

7.0 

19.8 

 

30.8 

20.0 

2.8 

313.7 

Funded assets

140.7 

22.9 

 

129.6 

17.4 

22.9 

125.9 

 

66.0 

24.0 

31.3 

580.7 

Risk elements in lending

2.9 

3.6 

 

2.1 

0.1 

0.1 

- 

 

5.3 

0.5 

- 

14.6 

Customer deposits (excluding repos)

134.9 

13.6 

 

89.4 

22.7 

22.3 

5.9 

 

30.0 

23.6 

10.1 

352.5 

Loan:deposit ratio (excluding repos)

86%

123%

 

100%

49%

32%

337%

 

nm

85%

nm

89%

Provision coverage (7)

67%

54%

 

33%

32%

58%

- 

 

76%

59%

nm

63%

Risk-weighted assets

33.3 

19.6 

 

64.2 

8.4 

8.1 

38.8 

 

59.7 

10.1 

73.8 

316.0 

 

nm = not meaningful

 

Notes:

(1)

Central items includes unallocated costs and assets which principally comprise volatile items under IFRS and balances in relation to Citizens and international private banking.

(2)

(3)

Refer to Appendix 1 for reconciliations of restated operating profit/(loss) to profit/(loss) attributable to ordinary shareholders.

Excluding own credit adjustments, gain on redemption of own debt and strategic disposals.

(4)

Excluding restructuring costs and litigation and conduct costs and write-down of goodwill.

(5)

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 notional equity allocated at different rates of 11% (Commercial Banking and Ulster Bank RoI), 12% (RBS International) and 15% for all other segments, of the monthly average of segmental risk-weighted assets after capital deductions (RWAes). This notional equity was previously 13% for all segments. In addition, due to changes in UK tax rules enacted in the Finance Act 2015, RBS has increased its longer-term effective 31 December tax rate. The notional tax rate used in the segmental ROE has been revised from 25% to 28% (Ulster Bank RoI - 15%; RBS International - 10%). RBS's forward planning tax rate is 26%.

(6)

Including disposal groups.

(7)

Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.

 

Customer segments

 

Total RBS

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter ended 31 December 2014

 

PBB

 

CPB

 

 

 

 

 

 

 

 

Ulster Bank

 

Commercial

Private

RBS

 

 

Capital

 

Central items

Total

 

UK PBB

RoI

 

Banking

Banking

International

CIB

 

Resolution

W&G

& other (1)

RBS

Income statement

£m

£m

 

£m

£m

£m

£m

 

£m

£m

£m

£m

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

1,086 

112 

 

506 

116 

83 

8 

 

162 

167 

142 

2,382 

Non-interest income

288 

40 

 

343 

54 

18 

248 

 

37 

49 

(350)

727 

Own credit adjustments

- 

- 

 

- 

- 

- 

(33)

 

(50)

- 

(61)

(144)

 

 

 

 

 

 

 

 

 

 

 

 

 

Total income

1,374 

152 

 

849 

170 

101 

223 

 

149 

216 

(269)

2,965 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct expenses

 

 

 

 

 

 

 

 

 

 

 

 

  - staff

(205)

(43)

 

(115)

(44)

(11)

(36)

 

(66)

(49)

(623)

(1,192)

  - other

(72)

(23)

 

(35)

(12)

(2)

(47)

 

(80)

(10)

(1,101)

(1,382)

  - operating lease costs

- 

- 

 

(38)

- 

- 

- 

 

- 

- 

- 

(38)

Indirect expenses

(548)

(53)

 

(319)

(90)

(23)

(293)

 

(344)

(25)

1,695 

- 

Restructuring costs

 

 

 

 

 

 

 

 

 

 

 

 

  - direct

(2)

- 

 

(1)

(1)

- 

(3)

 

(46)

- 

(489)

(542)

  - indirect

(14)

2 

 

(16)

- 

(2)

(16)

 

(22)

- 

68 

- 

Litigation and conduct costs

(650)

19 

 

(62)

(90)

- 

(370)

 

(12)

- 

1 

(1,164)

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

(1,491)

(98)

 

(586)

(237)

(38)

(765)

 

(570)

(84)

(449)

(4,318)

 

 

 

 

 

 

 

 

 

 

 

 

 

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

(117)

54 

 

263 

(67)

63 

(542)

 

(421)

132 

(718)

(1,353)

Impairment releases/(losses)

2 

70 

 

(32)

1 

(3)

6 

 

634 

(9)

1 

670 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating (loss)/profit

(115)

124 

 

231 

(66)

60 

(536)

 

213 

123 

(717)

(683)

 

 

 

 

 

 

 

 

 

 

 

 

 

Memo:

 

 

 

 

 

 

 

 

 

 

 

 

Profit attributable to ordinary shareholders (2)

 

 

 

 

 

 

 

 

 

 

 

(5,791)

Total income - adjusted (3)

1,374 

152 

 

849 

170 

101 

256 

 

199 

216 

(208)

3,109 

Operating expenses - adjusted (4)

(825)

(119)

 

(507)

(146)

(36)

(376)

 

(490)

(84)

(29)

(2,612)

Operating profit/(loss) - adjusted (3,4)

551 

103 

 

310 

25 

62 

(114)

 

343 

123 

(236)

1,167 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the notes to this table refer to page 5.

 

 

 

 

 

 

 

 

 

 

 

 

Customer segments

 

 

31 December 2014

 

PBB

 

CPB

 

 

 

 

 

 

 

 

Ulster Bank

 

 Commercial

Private

RBS

 

 

Capital

 

Central items

 Total

Key metrics

UK PBB

RoI

 

Banking

Banking

International

CIB

 

Resolution

W&G

& other (1)

RBS

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on equity (5)

(7.0%)

19.8%

 

7.0%

(15.8%)

24.7%

(23.3%)

 

nm

nm

nm

(51.1%)

Return on equity - adjusted (3,4,5)

25.5%

16.4%

 

9.9%

3.7%

25.6%

(5.9%)

 

nm

nm

nm

(38.4%)

Net interest margin

3.37%

1.90%

 

1.96%

2.91%

1.67%

0.21%

 

0.71%

2.92%

nm

2.23%

Net interest margin excluding central IEAs

3.80%

1.90%

 

2.79%

4.17%

4.76%

0.16%

 

0.77%

3.42%

nm

2.23%

Cost:income ratio

109%

64%

 

69%

139%

38%

343%

 

nm

39%

nm

146%

Cost:income ratio - adjusted (3,4)

60%

78%

 

60%

86%

36%

147%

 

nm

39%

nm

84%

Loan impairment charge as a % of gross loans and advances

- 

(1.4%)

 

0.1%

- 

0.2%

(0.1%)

 

(4.0%)

0.2%

nm

(0.8%)

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital and balance sheet (6)

£bn

£bn

 

£bn

£bn

£bn

£bn

 

£bn

£bn

£bn

£bn

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans and advances to customers (gross)

114.1 

20.5 

 

85.8 

11.0 

7.3 

26.5 

 

64.0 

19.9 

63.7 

412.8 

Loan impairment provisions

(2.5)

(2.4)

 

(0.9)

- 

(0.1)

- 

 

(11.1)

(0.4)

(0.6)

(18.0)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loans and advances to customers

111.6 

18.1 

 

84.9 

11.0 

7.2 

26.5 

 

52.9 

19.5 

63.1 

394.8 

Funded assets

137.8 

22.4 

 

127.9 

17.7 

23.4 

137.7 

 

115.6 

23.6 

90.9 

697.0 

Risk elements in lending

3.6 

4.4 

 

2.4 

0.1 

0.2 

- 

 

15.6 

0.6 

1.3 

28.2 

Customer deposits (excluding repos)

132.6 

14.7 

 

84.9 

22.3 

20.8 

11.8 

 

36.4 

22.0 

69.4 

414.9 

Loan:deposit ratio (excluding repos)

84%

124%

 

100%

49%

35%

226%

 

nm

88%

nm

95%

Provision coverage (7)

69%

55%

 

39%

25%

27%

- 

 

71%

61%

nm

64%

Risk-weighted assets

36.6 

21.8 

 

63.2 

8.7 

7.5 

41.9 

 

95.1 

10.1 

71.0 

355.9 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the notes to this table refer to page 5.


 

Customer segments

 

 

 

 

 

 

 

 

 

 

 

 

 

Total RBS

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended 31 December 2014

 

PBB

 

CPB

 

 

 

 

 

Ulster Bank

 

Commercial

Private

RBS

 

 

Capital

 

Central items

Total

 

UK PBB

RoI

 

Banking

Banking

International

CIB

 

Resolution

W&G

& other (1)

RBS

Income statement

£m

£m

 

£m

£m

£m

£m

 

£m

£m

£m

£m

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

4,221 

467 

 

1,976 

454 

323 

(11)

 

673 

664 

491 

9,258 

Non-interest income

1,223 

137 

 

1,329 

235 

68 

1,951 

 

1,155 

188 

(459)

5,827 

Own credit adjustments

- 

- 

 

- 

- 

- 

(9)

 

(36)

- 

(101)

(146)

Gain on redemption of own debt

- 

- 

 

- 

- 

- 

- 

 

- 

- 

20 

20 

Strategic disposals

- 

- 

 

- 

- 

- 

- 

 

- 

- 

191 

191 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total income

5,444 

604 

 

3,305 

689 

391 

1,931 

 

1,792 

852 

142 

15,150 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct expenses

 

 

 

 

 

 

 

 

 

 

 

 

  - staff

(824)

(164)

 

(495)

(178)

(44)

(446)

 

(444)

(196)

(2,585)

(5,376)

  - other

(346)

(83)

 

(100)

(37)

(15)

(190)

 

(293)

(36)

(3,764)

(4,864)

  - operating lease costs

- 

- 

 

(141)

- 

- 

- 

 

- 

- 

- 

(141)

Indirect expenses

(1,958)

(180)

 

(1,008)

(289)

(94)

(1,080)

 

(1,283)

(98)

5,990 

- 

Restructuring costs

 

 

 

 

 

 

 

 

 

 

 

 

  - direct

(10)

8 

 

(41)

(1)

(2)

(13)

 

(80)

- 

(1,015)

(1,154)

  - indirect

(101)

(21)

 

(67)

- 

(5)

(89)

 

(105)

- 

388 

- 

Litigation and conduct costs

(918)

19 

 

(112)

(90)

- 

(832)

 

(162)

- 

(99)

(2,194)

Write-down of goodwill

- 

- 

 

- 

- 

- 

- 

 

(130)

- 

- 

(130)

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

(4,157)

(421)

 

(1,964)

(595)

(160)

(2,650)

 

(2,497)

(330)

(1,085)

(13,859)

 

 

 

 

 

 

 

 

 

 

 

 

 

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

1,287 

183 

 

1,341 

94 

231 

(719)

 

(705)

522 

(943)

1,291 

Impairment (losses)/releases

(154)

306 

 

(85)

5 

7 

9 

 

1,307 

(55)

12 

1,352 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating profit/(loss)

1,133 

489 

 

1,256 

99 

238 

(710)

 

602 

467 

(931)

2,643 

 

 

 

 

 

 

 

 

 

 

 

 

 

Memo:

 

 

 

 

 

 

 

 

 

 

 

 

Profit attributable to ordinary shareholders (2)

 

 

 

 

 

 

 

 

 

 

 

(3,470)

Total income - adjusted (3)

5,444 

604 

 

3,305 

689 

391 

1,940 

 

1,828 

852 

32 

15,085 

Operating expenses - adjusted (4)

(3,128)

(427)

 

(1,744)

(504)

(153)

(1,716)

 

(2,020)

(330)

(359)

(10,381)

Operating profit/(loss) - adjusted (3,4)

2,162 

483 

 

1,476 

190 

245 

233 

 

1,115 

467 

(315)

6,056 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the notes to this table refer to page 5.

 

 

 

 

 

 

 

 

 

 

 

 

Customer segments

 

 

31 December 2014

 

PBB

 

CPB

 

 

 

 

 

 

 

 

Ulster Bank

 

 Commercial

Private

RBS

 

 

Capital

 

Central items

 Total

Key metrics

UK PBB

RoI

 

Banking

Banking

International

CIB

 

Resolution

W&G

& other (1)

RBS

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on equity (5)

11.9%

18.6%

 

10.2%

4.1%

24.2%

(7.9%)

 

nm

nm

nm

(8.2%)

Return on equity - adjusted (3,4,5)

23.7%

18.4%

 

12.2%

9.1%

24.9%

1.3%

 

nm

nm

nm

(1.3%)

Net interest margin

3.32%

1.92%

 

1.91%

2.89%

1.65%

(0.07%)

 

0.67%

2.93%

nm

2.13%

Net interest margin excluding central IEAs

3.75%

1.99%

 

2.74%

4.12%

4.83%

(0.06%)

 

0.72%

3.42%

nm

2.13%

Cost:income ratio

76%

70%

 

59%

86%

41%

137%

 

nm

39%

nm

91%

Cost:income ratio - adjusted (3,4)

57%

71%

 

53%

73%

39%

88%

 

nm

39%

nm

69%

Loan impairment charge as a % of gross loans and advances

0.1%

(1.5%)

 

0.1%

- 

(0.1%)

- 

 

(2.0%)

0.3%

nm

(0.4%)

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital and balance sheet (6)

£bn

£bn

 

£bn

£bn

£bn

£bn

 

£bn

£bn

£bn

£bn

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans and advances to customers (gross)

114.1 

20.5 

 

85.8 

11.0 

7.3 

26.5 

 

64.0 

19.9 

63.7 

412.8 

Loan impairment provisions

(2.5)

(2.4)

 

(0.9)

- 

(0.1)

- 

 

(11.1)

(0.4)

(0.6)

(18.0)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loans and advances to customers

111.6 

18.1 

 

84.9 

11.0 

7.2 

26.5 

 

52.9 

19.5 

63.1 

394.8 

Funded assets

137.8 

22.4 

 

127.9 

17.7 

23.4 

137.7 

 

115.6 

23.6 

90.9 

697.0 

Risk elements in lending

3.6 

4.4 

 

2.4 

0.1 

0.2 

- 

 

15.6 

0.6 

1.3 

28.2 

Customer deposits (excluding repos)

132.6 

14.7 

 

84.9 

22.3 

20.8 

11.8 

 

36.4 

22.0 

69.4 

414.9 

Loan:deposit ratio (excluding repos)

84%

124%

 

100%

49%

35%

226%

 

nm

88%

nm

95%

Provision coverage (7)

69%

55%

 

39%

25%

27%

- 

 

71%

61%

nm

64%

Risk-weighted assets

36.6 

21.8 

 

63.2 

8.7 

7.5 

41.9 

 

95.1 

10.1 

71.0 

355.9 

 

 

 

 

 

 

 

 

 

 

 

 

 

nm= not meaningful

 

 

 

 

 

 

 

 

 

 

 

 

 

For the notes to this table refer to page 5.

 

 

 

 

 

 

 

 

 

Appendix 1

 

Financial statement

reconciliations

 

 

Consolidated income statement reconciliation for the quarter ended 30 September 2015

 

 

As

Pension

Re-presentation

 

 

 

 

previously

accounting

of one-off and

Non-

Presentational

Restated

 

reported

policy impact

other items

statutory

adjustments (1)

statutory

 

£m

£m

£m

£m

£m

£m

 

 

 

 

 

 

 

Interest receivable

2,963 

- 

- 

2,963 

- 

2,963 

Interest payable

(776)

- 

- 

(776)

- 

(776)

 

 

 

 

 

 

 

Net interest income

2,187 

- 

- 

2,187 

- 

2,187 

 

 

 

 

 

 

 

Fees and commissions receivable

880 

- 

- 

880 

- 

880 

Fees and commissions payable

(195)

- 

- 

(195)

- 

(195)

Income from trading activities

82 

- 

- 

82 

88 

170 

Own credit adjustments

- 

- 

136 

136 

(136)

- 

Other operating income

93 

- 

- 

93 

48 

141 

 

 

 

 

 

 

 

Non-interest income

860 

- 

136 

996 

- 

996 

 

 

 

 

 

 

 

Total income

3,047 

- 

136 

3,183 

- 

3,183 

 

 

 

 

 

 

 

Staff costs

(1,265)

(16)

- 

(1,281)

(281)

(1,562)

Premises and equipment

(352)

- 

- 

(352)

(283)

(635)

Other administrative expenses

(477)

- 

- 

(477)

(253)

(730)

Depreciation and amortisation

(190)

- 

- 

(190)

(92)

(282)

Restructuring costs

(847)

- 

- 

(847)

847 

- 

Litigation and conduct costs

(129)

- 

- 

(129)

129 

- 

Write-down of goodwill and other intangible assets

- 

- 

- 

- 

(67)

(67)

 

 

 

 

 

 

 

Operating expenses

(3,260)

(16)

- 

(3,276)

- 

(3,276)

 

 

 

 

 

 

 

Loss before impairment releases

(213)

(16)

136 

(93)

- 

(93)

Impairment releases

79 

- 

- 

79 

- 

79 

 

 

 

 

 

 

 

Operating loss

(134)

(16)

136 

(14)

- 

(14)

 

 

 

 

 

 

 

Own credit adjustments

136 

- 

(136)

- 

- 

- 

 

 

 

 

 

 

 

Profit/(loss) before tax

2 

(16)

- 

(14)

- 

(14)

Tax (charge)/credit

(1)

4 

- 

3 

- 

3 

 

 

 

 

 

 

 

Profit from continuing operations

1 

(12)

- 

(11)

- 

(11)

Profit from discontinued operations, net of tax

1,093 

- 

- 

1,093 

- 

1,093 

 

 

 

 

 

 

 

Profit for the period

1,094 

(12)

- 

1,082 

- 

1,082 

Non-controlling interests

(45)

- 

- 

(45)

- 

(45)

Preference share and other dividends

(97)

- 

- 

(97)

- 

(97)

 

 

 

 

 

 

 

Profit attributable to ordinary shareholders

952 

(12)

- 

940 

- 

940 

 

 

 

 

 

 

 

 

Note:

(1)

Reallocation of separately reported one-off items to the statutory income and operating expense lines.

Consolidated income statement reconciliation for the quarter ended 31 December 2014

 

 

 

Re-presentation

 

 

 

 

As previously

of one-off and

Non-

Presentational

 

 

reported

other items

statutory

adjustments (1)

Statutory

 

£m

£m

£m

£m

£m

 

 

 

 

 

 

Interest receivable

3,238 

- 

3,238 

- 

3,238 

Interest payable

(856)

- 

(856)

- 

(856)

 

 

 

 

 

 

Net interest income

2,382 

- 

2,382 

- 

2,382 

 

 

 

 

 

 

Fees and commissions receivable

1,055 

- 

1,055 

- 

1,055 

Fees and commissions payable

(204)

- 

(204)

- 

(204)

Income from trading activities

(319)

- 

(319)

(84)

(403)

Own credit adjustments

- 

(144)

(144)

144 

- 

Other operating income

182 

13 

195 

(60)

135 

 

 

 

 

 

 

Non-interest income

714 

(131)

583 

- 

583 

 

 

 

 

 

 

Total income

3,096 

(131)

2,965 

- 

2,965 

 

 

 

 

 

 

Staff costs

(1,192)

- 

(1,192)

(133)

(1,325)

Premises and equipment

(452)

- 

(452)

(28)

(480)

Other administrative expenses

(699)

(2)

(701)

(1,298)

(1,999)

Depreciation and amortisation

(203)

- 

(203)

- 

(203)

Restructuring costs

(542)

- 

(542)

542 

- 

Litigation and conduct costs

(1,164)

- 

(1,164)

1,164 

- 

Write-down of goodwill and other intangible assets

- 

- 

- 

(311)

(311)

Write-down of other intangible assets

(64)

- 

(64)

64 

- 

 

 

 

 

 

 

Operating expenses

(4,316)

(2)

(4,318)

- 

(4,318)

 

 

 

 

 

 

Loss before impairment releases

(1,220)

(133)

(1,353)

- 

(1,353)

Impairment releases

670 

- 

670 

- 

670 

 

 

 

 

 

 

Operating loss

(550)

(133)

(683)

- 

(683)

 

 

 

 

 

 

Own credit adjustments

(144)

144 

- 

- 

- 

RFS MI

11 

(11)

- 

- 

- 

 

 

 

 

 

 

Loss before tax

(683)

- 

(683)

- 

(683)

Tax charge

(1,040)

- 

(1,040)

- 

(1,040)

 

 

 

 

 

 

Loss from continuing operations

(1,723)

- 

(1,723)

- 

(1,723)

Loss from discontinued operations, net of tax

(3,882)

- 

(3,882)

- 

(3,882)

 

 

 

 

 

 

Loss for the period

(5,605)

- 

(5,605)

- 

(5,605)

Non-controlling interests

(71)

- 

(71)

- 

(71)

Preference share and other dividends

(115)

- 

(115)

- 

(115)

 

 

 

 

 

 

Loss attributable to ordinary shareholders

(5,791)

- 

(5,791)

- 

(5,791)

 

 

 

 

 

 

 

Note:

(1)

Reallocation of separately reported one-off items to the statutory income and operating expense lines.

 

Consolidated income statement reconciliation for the year ended 31 December 2014

 

 

 

Re-presentation

 

 

 

 

As previously

of one-off and

Non-

Presentational

 

 

reported

other items

statutory

adjustments (1)

Statutory

 

£m

£m

£m

£m

£m

 

 

 

 

 

 

Interest receivable

13,079 

- 

13,079 

- 

13,079 

Interest payable

(3,818)

(3)

(3,821)

- 

(3,821)

 

 

 

 

 

 

Net interest income

9,261 

(3)

9,258 

- 

9,258 

 

 

 

 

 

 

Fees and commissions receivable

4,414 

- 

4,414 

- 

4,414 

Fees and commissions payable

(875)

- 

(875)

- 

(875)

Income from trading activities

1,325 

- 

1,325 

(40)

1,285 

Own credit adjustments

- 

(146)

(146)

146 

- 

Gain on redemption of own debt

- 

20 

20 

- 

20 

Strategic disposals

- 

191 

191 

(191)

- 

Other operating income

981 

(18)

963 

85 

1,048 

 

 

 

 

 

 

Non-interest income

5,845 

47 

5,892 

- 

5,892 

 

 

 

 

 

 

Total income

15,106 

44 

15,150 

- 

15,150 

 

 

 

 

 

 

Staff costs

(5,376)

- 

(5,376)

(381)

(5,757)

Premises and equipment

(1,812)

- 

(1,812)

(269)

(2,081)

Other administrative expenses

(2,117)

(3)

(2,120)

(2,448)

(4,568)

Depreciation and amortisation

(927)

- 

(927)

(3)

(930)

Restructuring costs

(1,154)

- 

(1,154)

1,154 

- 

Litigation and conduct costs

(2,194)

- 

(2,194)

2,194 

- 

Write-down of goodwill and other intangible assets

- 

- 

- 

(523)

(523)

Write-down of other intangible assets

(146)

- 

(146)

146 

- 

Write-down of goodwill

- 

(130)

(130)

130 

- 

 

 

 

 

 

 

Operating expenses

(13,726)

(133)

(13,859)

- 

(13,859)

 

 

 

 

 

 

Profit before impairment releases

1,380 

(89)

1,291 

- 

1,291 

Impairment releases

1,352 

- 

1,352 

- 

1,352 

 

 

 

 

 

 

Operating profit

2,732 

(89)

2,643 

- 

2,643 

 

 

 

 

 

 

Own credit adjustments

(146)

146 

- 

- 

- 

Gain on redemption of own debt

20 

(20)

- 

- 

- 

Strategic disposals

191 

(191)

- 

- 

- 

Write-down of goodwill

(130)

130 

- 

- 

- 

RFS MI

(24)

24 

- 

- 

- 

 

 

 

 

 

 

Profit before tax

2,643 

- 

2,643 

- 

2,643 

Tax charge

(1,909)

- 

(1,909)

- 

(1,909)

 

 

 

 

 

 

Profit from continuing operations

734 

- 

734 

- 

734 

Loss from discontinued operations, net of tax

(3,445)

- 

(3,445)

- 

(3,445)

 

 

 

 

 

 

Loss for the period

(2,711)

- 

(2,711)

- 

(2,711)

Non-controlling interests

(60)

- 

(60)

- 

(60)

Preference share and other dividends

(699)

- 

(699)

- 

(699)

 

 

 

 

 

 

Loss attributable to ordinary shareholders

(3,470)

- 

(3,470)

- 

(3,470)

 

 

 

 

 

 

 

Note:

(1)

Reallocation of separately reported one-off items to the statutory income and operating expense lines.

 


Consolidated statement of comprehensive income

 

 

As

Pension

 

 

previously

accounting

 

 

reported

policy impact

Restated

Consolidated statement of comprehensive income

£m

£m

£m

 

 

 

 

Quarter ended 30 September 2015

 

 

 

Profit for the period

1,094 

(12)

1,082 

Gain resulting from changes in additional liability due to minimum funding requirements (1)

 

 

 

  - gross

- 

3 

3 

  - tax

- 

(1)

(1)

Total comprehensive income for the period

810 

(10)

800 

 

 

 

 

Nine months ended 30 September 2015

 

 

 

Profit for the period

1,452 

(38)

1,414 

Gain resulting from changes in additional liability due to minimum funding requirements (1)

 

 

 

  - gross

- 

20 

20 

  - tax

- 

(4)

(4)

Total comprehensive loss for the period

(16)

(22)

(38)

 

 

 

 

Quarter ended 30 June 2015

 

 

 

Profit for the period

814 

(13)

801 

Gain resulting from changes in additional liability due to minimum funding requirements (1)

 

 

 

  - gross

- 

14 

14 

  - tax

- 

(3)

(3)

Total comprehensive loss for the period

(605)

(2)

(607)

 

 

 

 

Half year ended 30 June 2015

 

 

 

Profit for the period

358 

(26)

332 

Gain resulting from changes in additional liability due to minimum funding requirements (1)

 

 

 

  - gross

- 

17 

17 

  - tax

- 

(3)

(3)

Total comprehensive loss for the period

(826)

(12)

(838)

 

 

 

 

Quarter ended 31 December 2014

 

 

 

Loss resulting from changes in additional liability due to minimum funding requirements (1)

 

 

 

  - gross

- 

(78)

(78)

  - tax

- 

16 

16 

Total comprehensive loss for the period

(4,432)

(62)

(4,494)

 

 

 

 

Year ended 31 December 2014

 

 

 

Loss resulting from changes in additional liability due to minimum funding requirements (1)

 

 

 

  - gross

- 

(1,749)

(1,749)

  - tax

- 

350 

350 

Total comprehensive loss for the year

(783)

(1,399)

(2,182)

 

Note:

(1)

Included in items that do not qualify for reclassification.

 


Consolidated balance sheet and capital reconciliation

 

 

 

 

Statutory

 

 

 

As

Pension

 

 

 

previously

accounting

 

 

 

reported

policy impact

Restated

Balance sheet

 

£m

£m

£m

 

 

 

 

 

As at 30 September 2015

 

 

 

 

Deferred tax assets

 

1,434 

377 

1,811 

Prepayments, accrued income and other assets

 

4,928 

(119)

4,809 

Retirement benefit liabilities

 

1,955 

1,763 

3,718 

Owners' equity

 

51,593 

(1,505)

50,088 

Tangible net asset value per ordinary share (1)

 

384p

(13p)

371p

 

 

 

 

 

As at 30 June 2015

 

 

 

 

Deferred tax assets

 

1,479 

374 

1,853 

Prepayments, accrued income and other assets

 

4,829 

(119)

4,710 

Retirement benefit liabilities

 

1,869 

1,750 

3,619 

Owners' equity

 

51,117 

(1,495)

49,622 

Tangible net asset value per ordinary share (1)

 

380p

(13p)

367p

 

 

 

 

 

As at 31 December 2014

 

 

 

 

Deferred tax assets

 

1,540 

371 

1,911 

Prepayments, accrued income and other assets

 

5,878 

(115)

5,763 

Retirement benefit liabilities

 

2,579 

1,739 

4,318 

Owners' equity

 

52,149 

(1,483)

50,666 

Tangible net asset value per ordinary share (1)

 

387p

(13p)

374p

 

 

 

 

 

Capital (2)

 

£bn

£bn

£bn

 

 

 

 

 

As at 30 September 2015

 

 

 

 

PRA transitional basis

  - Common Equity Tier 1 capital

40.2 

(1.4)

38.8 

 

  - Risk-weighted assets

316.0 

1.0 

317.0 

 

  - Common Equity Tier 1 ratio

12.7%

(50bp)

12.2%

End-point CRR basis

  - Common Equity Tier 1 capital

40.2 

(1.4)

38.8 

 

  - Risk-weighted assets

316.0 

1.0 

317.0 

 

  - Common Equity Tier 1 ratio

12.7%

(50bp)

12.2%

 

 

 

 

 

As at 30 June 2015

 

 

 

 

PRA transitional basis

  - Common Equity Tier 1 capital

40.1 

(1.4)

38.7 

 

  - Risk-weighted assets

326.0 

1.0 

327.0 

 

  - Common Equity Tier 1 ratio

12.3%

(50bp)

11.8%

End-point CRR basis

  - Common Equity Tier 1 capital

40.1 

(1.4)

38.7 

 

  - Risk-weighted assets

326.0 

1.0 

327.0 

 

  - Common Equity Tier 1 ratio

12.3%

(50bp)

11.8%

 

 

 

 

 

As at 31 December 2014

 

 

 

 

PRA transitional basis

  - Common Equity Tier 1 capital

39.6 

(1.4)

38.2 

 

  - Risk-weighted assets

356.0 

1.0 

357.0 

 

  - Common Equity Tier 1 ratio

11.1%

(40bp)

10.7%

End-point CRR basis

  - Common Equity Tier 1 capital

39.9 

(1.4)

38.5 

 

  - Risk-weighted assets

356.0 

1.0 

357.0 

 

  - Common Equity Tier 1 ratio

11.2%

(40bp)

10.8%

 

Notes:

(1)

Tangible net asset value per ordinary share represents tangible equity divided by the number of ordinary shares in issue.

(2)

Provided to illustrate the impact of the pension accounting policy change on future capital balances and ratios, these metrics are not being restated.

 

 

 

 

 

 

 

 

 

 

Appendix 2

 

Components of customer Segments

 

 

 

Components of customer segments

 

Operating profit/(loss) by segment

 

 

 

 

 

 

 

 

 

Allocated from

 

 

 

 

 

 

 

 

Adjustment for

 

 

 

UK

Ulster

Commercial

Private

 

 

 

reconciling

 

 

 

PBB

Bank

Banking

Banking

CIB

Centre

RCR

 items (1)

Total

 

Quarter ended 30 September 2015

£m

£m

£m

£m

£m

£m

£m

£m

£m

 

 

 

 

 

 

 

 

 

 

 

 

UK PBB

538 

11 

- 

- 

- 

- 

- 

- 

549 

 

Ulster Bank RoI

- 

103 

- 

- 

- 

- 

- 

- 

103 

 

Commercial Banking

- 

- 

341 

- 

35 

- 

- 

- 

376 

 

Private Banking

- 

- 

- 

38 

- 

- 

- 

- 

38 

 

RBS International

- 

- 

50 

- 

- 

- 

- 

- 

50 

 

CIB

- 

- 

- 

- 

(109)

- 

- 

- 

(109)

 

Capital Resolution

- 

- 

- 

- 

(808)

26 

(16)

- 

(798)

 

Williams & Glyn

115 

- 

- 

- 

- 

- 

- 

- 

115 

 

Central items & other

- 

- 

- 

(21)

- 

(317)

- 

- 

(338)

 

Reconciling items (1)

(15)

- 

21 

(2)

(130)

(10)

- 

136 

- 

 

 

 

 

 

 

 

 

 

 

 

 

Operating profit/(loss)

638 

114 

412 

15 

(1,012)

(301)

(16)

136 

(14)

 

 

 

 

 

 

 

 

 

 

 

Quarter ended 31 December 2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

UK PBB

(160)

45 

- 

- 

- 

- 

- 

- 

(115)

Ulster Bank RoI

- 

124 

- 

- 

- 

- 

- 

- 

124 

Commercial Banking

- 

- 

209 

- 

22 

- 

- 

- 

231 

Private Banking

- 

- 

- 

(66)

- 

- 

- 

- 

(66)

RBS International

- 

- 

39 

21 

- 

- 

- 

- 

60 

CIB

- 

- 

- 

- 

(536)

- 

- 

- 

(536)

Capital Resolution

- 

- 

- 

- 

(212)

27 

398 

- 

213 

Williams & Glyn

123 

- 

- 

- 

- 

- 

- 

- 

123 

Central items & other

- 

- 

- 

(14)

- 

(703)

- 

- 

(717)

Reconciling items (1)

(6)

- 

- 

- 

83 

56 

- 

(133)

- 

 

 

 

 

 

 

 

 

 

 

Operating (loss)/profit

(43)

169 

248 

(59)

(643)

(620)

398 

(133)

(683)
                           

 

Year ended 31 December 2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

UK PBB

1,016 

117 

- 

- 

- 

- 

- 

- 

1,133 

Ulster Bank RoI

- 

489 

- 

- 

- 

- 

- 

- 

489 

Commercial Banking

- 

- 

1,130 

- 

126 

- 

- 

- 

1,256 

Private Banking

- 

- 

- 

99 

- 

- 

- 

- 

99 

RBS International

- 

- 

160 

78 

- 

- 

- 

- 

238 

CIB

- 

- 

- 

- 

(710)

- 

- 

- 

(710)

Capital Resolution

- 

- 

- 

- 

(461)

97 

966 

- 

602 

Williams & Glyn

467 

- 

- 

- 

- 

- 

- 

- 

467 

Central items & other

- 

- 

- 

(27)

- 

(904)

- 

- 

(931)

Reconciling items (1)

(33)

- 

- 

- 

153 

(53)

22 

(89)

- 

 

 

 

 

 

 

 

 

 

 

Operating profit/(loss)

1,450 

606 

1,290 

150 

(892)

(860)

988 

(89)

2,643 

 

Note:

(1)

Re-presentation of one-off and other items, refer to page 2 for further details.

 

 

UK PBB 

 

 

Quarter ended 30 September 2015

 

Allocated from

Total

 

UK PBB

Ulster Bank

UK PBB

Income statement

£m

£m

£m

 

 

 

 

Net interest income

1,018 

37 

1,055 

Non-interest income

245 

13 

258 

 

 

 

 

Total income

1,263 

50 

1,313 

 

 

 

 

Direct expenses

 

 

 

  - staff

(183)

(19)

(202)

  - other

(69)

1 

(68)

Indirect expenses

(442)

(22)

(464)

Restructuring costs

 

 

 

  - direct

(5)

- 

(5)

  - indirect

(22)

(1)

(23)

Litigation and conduct costs

2 

(2)

- 

 

 

 

 

Operating expenses

(719)

(43)

(762)

 

 

 

 

Operating profit before impairment (losses)/releases

544 

7 

551 

Impairment (losses)/releases

(6)

4 

(2)

 

 

 

 

Operating profit

538 

11 

549 

 

 

 

 

Memo:

 

 

 

Operating expenses - adjusted (1)

(694)

(40)

(734)

Operating profit - adjusted (1)

563 

14 

577 

 

 

 

 

Key metrics

 

 

 

 

 

 

 

Return on equity (2)

28.8%

7.6%

27.2%

Return on equity - adjusted (1,2)

30.2%

9.7%

28.7%

Net interest margin

3.19%

3.18%

3.19%

Net interest margin excluding central IEAs

3.61%

3.36%

3.60%

Cost:income ratio

57%

86%

58%

Cost:income ratio - adjusted (1)

55%

80%

56%

Loan impairment charge as % of gross customer loans and advances

- 

(0.4%)

- 

 

 

30 September 2015

 

Allocated from

Total

 

UK PBB

Ulster Bank

UK PBB

Capital and balance sheet

£bn

£bn

£bn

 

 

 

 

Loans and advances to customers (gross)

114.2 

4.1 

118.3 

Loan impairment provisions

(1.7)

(0.3)

(2.0)

 

 

 

 

Net loans and advances to customers

112.5 

3.8 

116.3 

Funded assets

135.5 

5.2 

140.7 

Risk elements in lending

2.5 

0.4 

2.9 

Customer deposits (excluding repos)

129.3 

5.6 

134.9 

Loan:deposit ratio (excluding repos)

87%

68%

86%

Provision coverage (3)

68%

88%

67%

Risk-weighted assets

30.5 

2.8 

33.3 

 

Notes:

(1)

Excluding restructuring costs and litigation and conduct costs.

(2)

Return on equity is based on segmental operating profit after tax adjusted for preference dividends divided by average notional equity based on 15% (previously 13%) of the monthly average of segmental RWAes, assuming 28% tax rate; previously 25%.

(3)

Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.

 


 

UK PBB

 

 

 

 

 

Quarter ended 31 December 2014

 

Allocated from

Total

 

UK PBB

Ulster Bank

UK PBB

Income statement

£m

£m

£m

 

 

 

 

Net interest income

1,048 

38 

1,086 

Non-interest income

274 

14 

288 

 

 

 

 

Total income

1,322 

52 

1,374 

 

 

 

 

Direct expenses

 

 

 

  - staff

(183)

(22)

(205)

  - other

(76)

4 

(72)

Indirect expenses

(523)

(25)

(548)

Restructuring costs

 

 

 

  - direct

(2)

- 

(2)

  - indirect

(16)

2 

(14)

Litigation and conduct costs

(650)

- 

(650)

 

 

 

 

Operating expenses

(1,450)

(41)

(1,491)

 

 

 

 

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

(128)

11 

(117)

Impairment (losses)/releases

(32)

34 

2 

 

 

 

 

Operating (loss)/profit

(160)

45 

(115)

 

 

 

 

Memo:

 

 

 

Operating expenses - adjusted (1)

(782)

(43)

(825)

Operating profit - adjusted (1)

508 

43 

551 

 

 

 

 

Key metrics

 

 

 

 

 

 

 

Return on equity (2)

(10.0%)

29.3%

(7.0%)

Return on equity - adjusted (1,2)

25.3%

28.0%

25.5%

Net interest margin

3.38%

3.11%

3.37%

Net interest margin excluding central IEAs

3.82%

3.38%

3.80%

Cost:income ratio

110%

79%

109%

Cost:income ratio - adjusted (1)

59%

83%

60%

Loan impairment charge as % of gross customer loans and advances

0.1%

(3.2%)

- 

 

 

31 December 2014

 

Allocated from

Total

 

UK PBB

Ulster Bank

UK PBB

Capital and balance sheet

£bn

£bn

£bn

 

 

 

 

Loans and advances to customers (gross)

109.9 

4.2 

114.1 

Loan impairment provisions

(2.2)

(0.3)

(2.5)

 

 

 

 

Net loans and advances to customers

107.7 

3.9 

111.6 

Funded assets

132.3 

5.5 

137.8 

Risk elements in lending

3.2 

0.4 

3.6 

Customer deposits (excluding repos)

126.7 

5.9 

132.6 

Loan:deposit ratio (excluding repos)

85%

66%

84%

Provision coverage (3)

70%

80%

69%

Risk-weighted assets

33.7 

2.9 

36.6 

 

Notes:

(1)

Excluding restructuring costs and litigation and conduct costs.

(2)

Return on equity is based on segmental operating profit after tax adjusted for preference dividends divided by average notional equity based on 15% (previously 13%) of the monthly average of segmental RWAes, assuming 28% tax rate; previously 25%.

(3)

Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.

 


 

UK PBB

 

 

 

 

 

Year ended 31 December 2014

 

Allocated from

Total

 

UK PBB

Ulster Bank

UK PBB

Income statement

£m

£m

£m

 

 

 

 

Net interest income

4,052 

169 

4,221 

Non-interest income

1,166 

57 

1,223 

 

 

 

 

Total income

5,218 

226 

5,444 

 

 

 

 

Direct expenses

 

 

 

  - staff

(741)

(83)

(824)

  - other

(355)

9 

(346)

Indirect expenses

(1,873)

(85)

(1,958)

Restructuring costs

 

 

 

  - direct

(10)

- 

(10)

  - indirect

(92)

(9)

(101)

Litigation and conduct costs

(918)

- 

(918)

 

 

 

 

Operating expenses

(3,989)

(168)

(4,157)

 

 

 

 

Operating profit before impairment (losses)/releases

1,229 

58 

1,287 

Impairment (losses)/releases

(213)

59 

(154)

 

 

 

 

Operating profit

1,016 

117 

1,133 

 

 

 

 

Memo:

 

 

 

Operating expenses - adjusted (1)

(2,969)

(159)

(3,128)

Operating profit - adjusted (1)

2,036 

126 

2,162 

 

 

 

 

Key metrics

 

 

 

 

 

 

 

Return on equity (2)

11.4%

17.8%

11.9%

Return on equity - adjusted (1,2)

24.1%

19.2%

23.7%

Net interest margin

3.32%

3.45%

3.32%

Net interest margin excluding central IEAs

3.75%

3.75%

3.75%

Cost:income ratio

76%

74%

76%

Cost:income ratio - adjusted (1)

57%

70%

57%

Loan impairment charge as % of gross customer loans and advances

0.2%

(1.4%)

0.1%

 

 

31 December 2014

 

Allocated from

Total

 

UK PBB

Ulster Bank

UK PBB

Capital and balance sheet

£bn

£bn

£bn

 

 

 

 

Loans and advances to customers (gross)

109.9 

4.2 

114.1 

Loan impairment provisions

(2.2)

(0.3)

(2.5)

 

 

 

 

Net loans and advances to customers

107.7 

3.9 

111.6 

Funded assets

132.3 

5.5 

137.8 

Risk elements in lending

3.2 

0.4 

3.6 

Customer deposits (excluding repos)

126.7 

5.9 

132.6 

Loan:deposit ratio (excluding repos)

85%

66%

84%

Provision coverage (3)

70%

80%

69%

Risk-weighted assets

33.7 

2.9 

36.6 

 

Notes:

(1)

Excluding restructuring costs and litigation and conduct costs.

(2)

Return on equity is based on segmental operating profit after tax adjusted for preference dividends divided by average notional equity based on 15% (previously 13%) of the monthly average of segmental RWAes, assuming 28% tax rate; previously 25%.

(3)

Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.

 


 

Ulster Bank RoI

 

Quarter ended

 

30 September 2015

All allocated from Ulster Bank

Income statement

£m

 

 

Net interest income

90 

Non-interest income

74 

 

 

Total income

164 

 

 

Direct expenses (1)

 

  - staff

(40)

  - other

(22)

Indirect expenses

(48)

Restructuring costs

 

  - direct

(3)

  - indirect

(2)

 

 

Operating expenses

(115)

 

 

Operating profit before impairment releases

49 

Impairment releases

54 

 

 

Operating profit

103 

 

 

Memo:

 

Operating expenses - adjusted (2)

(110)

Operating profit - adjusted (2)

108 

 

 

Key metrics

 

 

 

Return on equity (3)

16.7%

Return on equity - adjusted (2,3)

17.5%

Net interest margin

1.52%

Net interest margin excluding central IEAs (4)

1.52%

Cost:income ratio

70%

Cost:income ratio - adjusted (2)

67%

Loan impairment charge as % of gross customer loans and advances

(1.2%)

 

 

30 September 2015

All allocated from Ulster Bank

Capital and balance sheet

£bn

 

 

Loans and advances to customers (gross)

18.8 

Loan impairment provisions

(2.0)

 

 

Net loans and advances to customers

16.8 

Funded assets

22.9 

Risk elements in lending

3.6 

Customer deposits (excluding repos)

13.6 

Loan:deposit ratio (excluding repos)

123%

Provision coverage (5)

54%

Risk-weighted assets

19.6 

 

 

Notes:

(1)

Staff expenses include costs relating to employees of Ulster Bank Ireland Limited only. Recharges for services provided by or to Ulster Bank Limited are reflected through a management fee within other expenses.

(2)

Excluding restructuring costs and litigation and conduct costs.

(3)

Return on equity is based on segmental operating profit after tax adjusted for preference dividends divided by average notional equity based on 11% (previously 13%) of the monthly average of segmental RWAes, assuming 15% tax rate.

(4)

Ulster Bank Ireland Limited manages its regulatory liquidity requirements locally and consequently maintains a low yielding liquid asset portfolio. Excluding the impact of liquid asset balances, net interest margin for Q3 2015 would increase to 1.93%. 

(5)

Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.

 


Ulster Bank RoI

 

Quarter ended

31 December 2014

All allocated from Ulster Bank

Income statement

£m

 

 

Net interest income

112 

Non-interest income

40 

 

 

Total income

152 

 

 

Direct expenses (1)

 

  - staff

(43)

  - other

(23)

Indirect expenses

(53)

Restructuring costs

 

  - indirect

2 

Litigation and conduct costs

19 

 

 

Operating expenses

(98)

 

 

Operating profit before impairment releases

54 

Impairment releases

70 

 

 

Operating profit

124 

 

 

 

(119)

Operating profit - adjusted (2)

103 

 

 

Key metrics

 

 

 

Return on equity (3)

19.8%

Return on equity - adjusted (2,3)

16.4%

Net interest margin

1.90%

Net interest margin excluding central IEAs

1.90%

Cost:income ratio

64%

Cost:income ratio - adjusted (2)

78%

Loan impairment charge as % of gross customer loans and advances

(1.4%)

 

 

31 December 2014

All allocated from Ulster Bank

Capital and balance sheet

£bn

 

 

Loans and advances to customers (gross)

20.5 

Loan impairment provisions

(2.4)

 

 

Net loans and advances to customers

18.1 

Funded assets

22.4 

Risk elements in lending

4.4 

Customer deposits (excluding repos)

14.7 

Loan:deposit ratio (excluding repos)

124%

Provision coverage (4)

55%

Risk-weighted assets

21.8 

 

Notes:

(1)

Staff expenses include costs relating to employees of Ulster Bank Ireland Limited only. Recharges for services provided by or to Ulster Bank Limited are reflected through a management fee within other expenses.

(2)

Excluding restructuring costs and litigation and conduct costs.

(3)

Return on equity is based on segmental operating profit after tax adjusted for preference dividends divided by average notional equity based on 11% (previously 13%) of the monthly average of segmental RWAes, assuming 15% tax rate.

(4)

Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.

 


Ulster Bank RoI

 

 

Year ended

 

 

31 December 2014

 

All allocated from Ulster Bank

Income statement

 

£m

 

 

 

Net interest income

 

467 

Non-interest income

 

137 

 

 

 

Total income

 

604 

 

 

 

Direct expenses (1)

 

 

  - staff

 

(164)

  - other

 

(83)

Indirect expenses

 

(180)

Restructuring costs

 

 

  - direct

 

8 

  - indirect

 

(21)

Litigation and conduct costs

 

19 

 

 

 

Operating expenses

 

(421)

 

 

 

Operating profit before impairment releases

 

183 

Impairment releases

 

306 

 

 

 

Operating profit

 

489 

 

 

 

Memo:

 

 

Operating expenses - adjusted (2)

 

(427)

Operating profit - adjusted (2)

 

483 

 

 

 

Key metrics

 

 

 

 

 

Return on equity (3)

 

18.6%

Return on equity - adjusted (2,3)

 

18.4%

Net interest margin

 

1.92%

Net interest margin excluding central IEAs

 

1.99%

Cost:income ratio

 

70%

Cost:income ratio - adjusted (2)

 

71%

Loan impairment charge as % of gross customer loans and advances

 

(1.5%)

 

 

31 December 2014

All allocated from Ulster Bank

Capital and balance sheet

£bn

 

 

Loans and advances to customers (gross)

20.5 

Loan impairment provisions

(2.4)

 

 

Net loans and advances to customers

18.1 

Funded assets

22.4 

Risk elements in lending

4.4 

Customer deposits (excluding repos)

14.7 

Loan:deposit ratio (excluding repos)

124%

Provision coverage (4)

55%

Risk-weighted assets

21.8 

 

Notes:

(1)

Staff expenses include costs relating to employees of Ulster Bank Ireland Limited only. Recharges for services provided by or to Ulster Bank Limited are reflected through a management fee within other expenses.

(2)

Excluding restructuring costs and litigation and conduct costs.

(3)

Return on equity is based on segmental operating profit after tax adjusted for preference dividends divided by average notional equity based on 11% (previously 13%) of the monthly average of segmental RWAes, assuming 15% tax rate.

(4)

Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.

 

 

 

Commercial Banking

 

 

Quarter ended 30 September 2015

 

Allocated from

Total

 

Commercial

 

Commercial

 

Banking

CIB

Banking

Income statement

£m

£m

£m

 

 

 

 

Net interest income

471 

33 

504 

Non-interest income

251 

45 

296 

 

 

 

 

Total income

722 

78 

800 

 

 

 

 

Direct expenses

 

 

 

  - staff

(113)

(4)

(117)

  - other

(19)

(1)

(20)

  - operating lease costs

(34)

- 

(34)

Indirect expenses

(200)

(38)

(238)

Restructuring costs

 

 

 

  - direct

(1)

- 

(1)

  - indirect

2 

- 

2 

 

 

 

 

Operating expenses

(365)

(43)

(408)

 

 

 

 

Operating profit before impairment losses

357 

35 

392 

Impairment losses

(16)

- 

(16)

 

 

 

 

Operating profit

341 

35 

376 

 

 

 

 

Memo:

 

 

 

Operating expenses - adjusted (1)

(366)

(43)

(409)

Operating profit - adjusted (1)

340 

35 

375 

 

 

 

 

Key metrics

 

 

 

 

 

 

 

Return on equity (2)

10.6%

36.9%

12.3%

Return on equity - adjusted (1,2)

10.6%

36.9%

12.3%

Net interest margin

1.87%

2.22%

1.89%

Net interest margin excluding central IEAs

2.56%

9.02%

2.68%

Cost:income ratio

51%

55%

51%

Cost:income ratio - adjusted (1)

51%

55%

51%

Loan impairment charge as % of gross customer loans and advances

0.1%

- 

0.1%

 

 

30 September 2015

 

Allocated from

Total

 

Commercial

 

Commercial

 

Banking

CIB

Banking

Capital and balance sheet

£bn

£bn

£bn

 

 

 

 

Loans and advances to customers (gross)

85.3 

4.5 

89.8 

Loan impairment provisions

(0.7)

- 

(0.7)

 

 

 

 

Net loans and advances to customers

84.6 

4.5 

89.1 

Funded assets

119.0 

10.6 

129.6 

Risk elements in lending

2.1 

- 

2.1 

Customer deposits (excluding repos)

76.6 

12.8 

89.4 

Loan:deposit ratio (excluding repos)

111%

35%

100%

Provision coverage (3)

33%

- 

33%

Risk-weighted assets

62.3 

1.9 

64.2 

 

Notes:

(1)

Excluding restructuring costs and litigation and conduct costs.

(2)

Return on equity is based on segmental operating profit after tax adjusted for preference dividends divided by average notional equity based on 11% (previously 13%) of the monthly average of segmental RWAes, assuming 28% tax rate; previously 25%.

(3)

Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.

 

Commercial Banking

 

 

Quarter ended 31 December 2014

 

Allocated from

Total

 

Commercial

 

Commercial

 

Banking

CIB

Banking

Income statement

£m

£m

£m

 

 

 

 

Net interest income

475 

31 

506 

Non-interest income

296 

47 

343 

 

 

 

 

Total income

771 

78 

849 

 

 

 

 

Direct expenses

 

 

 

  - staff

(113)

(2)

(115)

  - other

(33)

(2)

(35)

  - operating lease costs

(38)

- 

(38)

Indirect expenses

(272)

(47)

(319)

Restructuring costs

 

 

 

  - direct

(1)

- 

(1)

  - indirect

(12)

(4)

(16)

Litigation and conduct costs

(62)

- 

(62)

 

 

 

 

Operating expenses

(531)

(55)

(586)

 

 

 

 

Operating profit before impairment losses

240 

23 

263 

Impairment losses

(31)

(1)

(32)

 

 

 

 

Operating profit

209 

22 

231 

 

 

 

 

Memo:

 

 

 

Operating expenses - adjusted (1)

(456)

(51)

(507)

Operating profit - adjusted (1)

284 

26 

310 

 

 

 

 

Key metrics

 

 

 

 

 

 

 

Return on equity (2)

6.3%

35.3%

7.0%

Return on equity - adjusted (1,2)

9.0%

39.8%

9.9%

Net interest margin

1.96%

2.00%

1.96%

Net interest margin excluding central IEAs

2.68%

6.88%

2.79%

Cost:income ratio

69%

71%

69%

Cost:income ratio - adjusted (1)

59%

65%

60%

Loan impairment charge as % of gross customer loans and advances

0.2%

0.1%

0.1%

 

 

31 December 2014

 

Allocated from

Total

 

Commercial

 

Commercial

 

Banking

CIB

Banking

Capital and balance sheet

£bn

£bn

£bn

 

 

 

 

Loans and advances to customers (gross)

81.4 

4.4 

85.8 

Loan impairment provisions

(0.9)

- 

(0.9)

 

 

 

 

Net loans and advances to customers

80.5 

4.4 

84.9 

Funded assets

117.0 

10.9 

127.9 

Risk elements in lending

2.4 

- 

2.4 

Customer deposits (excluding repos)

72.5 

12.4 

84.9 

Loan:deposit ratio (excluding repos)

111%

35%

100%

Provision coverage (3)

39%

- 

39%

Risk-weighted assets

61.2 

2.0 

63.2 

 

Notes:

(1)

Excluding restructuring costs and litigation and conduct costs.

(2)

Return on equity is based on segmental operating profit after tax adjusted for preference dividends divided by average notional equity based on 11% (previously 13%) of the monthly average of segmental RWAes, assuming 28% tax rate; previously 25%.

(3)

Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.

 

Commercial Banking

 

 

Year ended 31 December 2014

 

Allocated from

Total

 

Commercial

 

Commercial

 

Banking

CIB

Banking

Income statement

£m

£m

£m

 

 

 

 

Net interest income

1,865 

111 

1,976 

Non-interest income

1,117 

212 

1,329 

 

 

 

 

Total income

2,982 

323 

3,305 

 

 

 

 

Direct expenses

 

 

 

  - staff

(489)

(6)

(495)

  - other

(98)

(2)

(100)

  - operating lease costs

(141)

- 

(141)

Indirect expenses

(835)

(173)

(1,008)

Restructuring costs

 

 

 

  - direct

(41)

- 

(41)

  - indirect

(52)

(15)

(67)

Litigation and conduct costs

(112)

- 

(112)

 

 

 

 

Operating expenses

(1,768)

(196)

(1,964)

 

 

 

 

Operating profit before impairment losses

1,214 

127 

1,341 

Impairment losses

(84)

(1)

(85)

 

 

 

 

Operating profit

1,130 

126 

1,256 

 

 

 

 

Memo:

 

 

 

Operating expenses - adjusted (1)

(1,563)

(181)

(1,744)

Operating profit - adjusted (1)

1,335 

141 

1,476 

 

 

 

 

Key metrics

 

 

 

 

 

 

 

Return on equity (2)

9.2%

42.0%

10.2%

Return on equity - adjusted (1,2)

11.1%

47.0%

12.2%

Net interest margin

1.93%

1.788%

1.91%

Net interest margin excluding central IEAs

2.65%

5.92%

2.74%

Cost:income ratio

59%

61%

59%

Cost:income ratio - adjusted (1)

52%

56%

53%

Loan impairment charge as % of gross customer loans and advances

0.1%

- 

0.1%

 

 

31 December 2014

 

Allocated from

Total

 

Commercial

 

Commercial

 

Banking

CIB

Banking

Capital and balance sheet

£bn

£bn

£bn

 

 

 

 

Loans and advances to customers (gross)

81.4 

4.4 

85.8 

Loan impairment provisions

(0.9)

- 

(0.9)

 

 

 

 

Net loans and advances to customers

80.5 

4.4 

84.9 

Funded assets

117.0 

10.9 

127.9 

Risk elements in lending

2.4 

- 

2.4 

Customer deposits (excluding repos)

72.5 

12.4 

84.9 

Loan:deposit ratio (excluding repos)

111%

35%

100%

Provision coverage (3)

38%

- 

39%

Risk-weighted assets

61.2 

2.0 

63.2 

 

Notes:

(1)

Excluding restructuring costs and litigation and conduct costs.

(2)

Return on equity is based on segmental operating profit after tax adjusted for preference dividends divided by average notional equity based on 11% (previously 13%) of the monthly average of segmental RWAes, assuming 28% tax rate; previously 25%.

(3)

Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.

 

 

Private Banking

 

 

Quarter ended

 

30 September 2015

All allocated from Private Banking

Income statement

£m

 

 

Net interest income

109 

Non-interest income

51 

 

 

Total income

160 

 

 

Direct expenses

 

  - staff

(43)

  - other

(11)

Indirect expenses

(65)

Restructuring costs

 

  - direct

2 

  - indirect

(1)

 

 

Operating expenses

(118)

 

 

Operating profit before impairment losses

42 

Impairment losses

(4)

 

 

Operating profit

38 

 

 

Memo:

 

Operating expenses - adjusted (1)

(119)

Operating profit - adjusted (1)

37 

 

 

Key metrics

 

 

 

Return on equity (2)

7.4%

Return on equity - adjusted (1,2)

7.1%

Net interest margin

2.72%

Net interest margin excluding central IEAs

3.92%

Cost:income ratio

74%

Cost:income ratio - adjusted (1)

74%

Loan impairment charge as % of gross customer loans and advances

0.1%

 

 

30 September 2015

All allocated from Private Banking

Capital and balance sheet

£bn

 

 

Net loans and advances to customers

11.1 

Funded assets

17.4 

Risk elements in lending

0.1 

Customer deposits (excluding repos)

22.7 

Loan:deposit ratio (excluding repos)

49%

Provision coverage (3)

32%

Risk-weighted assets

8.4 

 

Notes:

(1)

Excluding restructuring costs and litigation and conduct costs.

(2)

Return on equity is based on segmental operating profit after tax adjusted for preference dividends divided by average notional equity based on 15% (previously 13%) of the monthly average of segmental RWAes, assuming 28% tax rate; previously 25%.

(3)

Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.

Private Banking

 

 

Quarter ended

 

31 December 2014

All allocated from Private Banking

Income statement

£m

 

 

Net interest income

116 

Non-interest income

54 

 

 

Total income

170 

 

 

Direct expenses

 

  - staff

(44)

  - other

(12)

Indirect expenses

(90)

Restructuring costs

 

  - direct

(1)

Litigation and conduct costs

(90)

 

 

Operating expenses

(237)

 

 

Operating loss before impairment releases

(67)

Impairment releases

1 

 

 

Operating loss

(66)

 

 

Memo:

 

Operating expenses - adjusted (1)

(146)

Operating profit - adjusted (1)

25 

 

 

Key metrics

 

 

 

Return on equity (2)

(15.8%)

Return on equity - adjusted (1,2)

3.7%

Net interest margin

2.91%

Net interest margin excluding central IEAs

4.17%

Cost:income ratio

139%

Cost:income ratio - adjusted (1)

86%

 

 

31 December 2014

All allocated from Private Banking

Capital and balance sheet

£bn

 

 

Net loans and advances to customers

11.0 

Funded assets

17.7 

Risk elements in lending

0.1 

Customer deposits (excluding repos)

22.3 

Loan:deposit ratio (excluding repos)

49%

Provision coverage (3)

25%

Risk-weighted assets

8.7 

 

Notes:

(1)

Excluding restructuring costs and litigation and conduct costs.

(2)

Return on equity is based on segmental operating profit after tax adjusted for preference dividends divided by average notional equity based on 15% (previously 13%) of the monthly average of segmental RWAes, assuming 28% tax rate; previously 25%.

(3)

Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.



 

Private Banking

 

 

Year ended

 

31 December 2014

All allocated from Private Banking

Income statement

£m

 

 

Net interest income

454 

Non-interest income

235 

 

 

Total income

689 

 

 

Direct expenses

 

  - staff

(178)

  - other

(37)

Indirect expenses

(289)

Restructuring costs

 

  - direct

(1)

Litigation and conduct costs

(90)

 

 

Operating expenses

(595)

 

 

Operating profit before impairment releases

94 

Impairment releases

5 

 

 

Operating profit

99 

 

 

Memo:

 

Operating expenses - adjusted (1)

(504)

Operating profit - adjusted (1)

190 

 

 

Key metrics

 

 

 

Return on equity (2)

4.1%

Return on equity - adjusted (1,2)

9.1%

Net interest margin

2.89%

Net interest margin excluding central IEAs

4.12%

Cost:income ratio

86%

Cost:income ratio - adjusted (1)

73%

 

 

31 December 2014

All allocated from Private Banking

Capital and balance sheet

£bn

 

 

Net loans and advances to customers

11.0 

Funded assets

17.7 

Risk elements in lending

0.1 

Customer deposits (excluding repos)

22.3 

Loan:deposit ratio (excluding repos)

49%

Provision coverage (3)

25%

Risk-weighted assets

8.7 

 

Notes:

(1)

Excluding restructuring costs and litigation and conduct costs.

(2)

Return on equity is based on segmental operating profit after tax adjusted for preference dividends divided by average notional equity based on 15% (previously 13%) of the monthly average of segmental RWAes, assuming 28% tax rate; previously 25%.

(3)

Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.

 

 

RBS International

 

 

Quarter ended 30 September 2015

 

Allocated from

Total

 

Commercial

Private

RBS

 

Banking

Banking (1)

International

Income statement

£m

£m

£m

 

 

 

 

Net interest income

73 

- 

73 

Non-interest income

14 

- 

14 

 

 

 

 

Total income

87 

- 

87 

 

 

 

 

Direct expenses

 

 

 

  - staff

(9)

- 

(9)

  - other

(3)

- 

(3)

Indirect expenses

(24)

- 

(24)

Restructuring costs

 

 

 

  - indirect

(2)

- 

(2)

 

 

 

 

Operating expenses

(38)

- 

(38)

 

 

 

 

Operating profit before impairment losses

49 

- 

49 

Impairment releases

1 

- 

1 

 

 

 

 

Operating profit

50 

- 

50 

 

 

 

 

Memo:

 

 

 

Operating expenses - adjusted (2)

(36)

- 

(36)

Operating profit - adjusted (2)

52 

- 

52 

 

 

 

 

Key metrics

 

 

 

 

 

 

 

Return on equity (3)

18%

- 

18%

Return on equity - adjusted (2,3)

19%

- 

19%

Net interest margin

1.43%

- 

1.43%

Net interest margin excluding central IEAs

4.38%

- 

4.38%

Cost:income ratio

44%

- 

44%

Cost:income ratio - adjusted (2)

41%

- 

41%

Loan impairment charge as % of gross customer loans and advances

(0.1%)

- 

(0.1%)

 

 

30 September 2015

 

Allocated from

Total

 

Commercial

Private

RBS

 

Banking

Banking (1)

International

Capital and balance sheet

£bn

£bn

£bn

 

 

 

 

Loans and advances to customers (gross)

7.1 

- 

7.1 

Loan impairment provisions

(0.1)

- 

(0.1)

 

 

 

 

Net loans and advances to customers

7.0 

- 

7.0 

Funded assets

22.9 

- 

22.9 

Risk elements in lending

0.1 

- 

0.1 

Customer deposits (excluding repos)

22.3 

- 

22.3 

Loan:deposit ratio (excluding repos)

32%

- 

32%

Provision coverage (4)

58%

- 

58%

Risk-weighted assets

8.1 

- 

8.1 

 

Notes:

(1)

From 1 January 2015, the RBS International business previously reported in Private Banking was transferred to Commercial Banking so there were no further allocations from Private Banking in 2015.

(2)

Excluding restructuring costs.

(3)

Return on equity is based on segmental operating profit after tax adjusted for preference dividends divided by average notional equity based on 12% (previously 13%) of the monthly average of segmental RWAes, assuming 10% tax rate.

(4)

Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.

 


RBS International

 

 

Quarter ended 31 December 2014

 

Allocated from

Total

 

Commercial

Private

RBS

 

Banking

Banking

International

Income statement

£m

£m

£m

 

 

 

 

Net interest income

46 

37 

83 

Non-interest income

14 

4 

18 

 

 

 

 

Total income

60 

41 

101 

 

 

 

 

Direct expenses

 

 

 

  - staff

(5)

(6)

(11)

  - other

(2)

- 

(2)

Indirect expenses

(12)

(11)

(23)

Restructuring costs

 

 

 

  - direct

1 

(1)

- 

  - indirect

(1)

(1)

(2)

 

 

 

 

Operating expenses

(19)

(19)

(38)

 

 

 

 

Operating profit before impairment losses

41 

22 

63 

Impairment losses

(2)

(1)

(3)

 

 

 

 

Operating profit

39 

21 

60 

 

 

 

 

Memo:

 

 

 

Operating expenses - adjusted (1)

(19)

(17)

(36)

Operating profit - adjusted (1)

39 

23 

62 

 

 

 

 

Key metrics

 

 

 

 

 

 

 

Return on equity (2)

19%

58.4%

24.7%

Return on equity - adjusted (1,2)

19%

63.9%

25.6%

Net interest margin

1.45%

2.07%

1.67%

Net interest margin excluding central IEAs

4.16%

5.79%

4.76%

Cost:income ratio

32%

46%

38%

Cost:income ratio - adjusted (1)

32%

41%

36%

Loan impairment charge as % of gross customer loans and advances

0.1%

0.1%

0.2%

 

 

31 December 2014

 

Allocated from

Total

 

Commercial

Private

RBS

 

Banking

Banking

International

Capital and balance sheet

£bn

£bn

£bn

 

 

 

 

Loans and advances to customers (gross)

4.7 

2.6 

7.3 

Loan impairment provisions

(0.1)

- 

(0.1)

 

 

 

 

Net loans and advances to customers

4.6 

2.6 

7.2 

Funded assets

20.2 

3.2 

23.4 

Risk elements in lending

0.1 

0.1 

0.2 

Customer deposits (excluding repos)

14.3 

6.5 

20.8 

Loan:deposit ratio (excluding repos)

32%

40%

35%

Provision coverage (3)

41%

30%

27%

Risk-weighted assets

6.3 

1.2 

7.5 

 

Notes:

(1)

Excluding restructuring costs.

(2)

Return on equity is based on segmental operating profit after tax adjusted for preference dividends divided by average notional equity based on 12% (previously 13%) of the monthly average of segmental RWAes, assuming 10% tax rate.

(3)

Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.

RBS International

 

 

Year ended 31 December 2014

 

Allocated from

Total

 

Commercial

Private

RBS

 

Banking

Banking

International

Income statement

£m

£m

£m

 

 

 

 

Net interest income

176 

147 

323 

Non-interest income

52 

16 

68 

 

 

 

 

Total income

228 

163 

391 

 

 

 

 

Direct expenses

 

 

 

  - staff

(19)

(25)

(44)

  - other

(10)

(5)

(15)

Indirect expenses

(47)

(47)

(94)

Restructuring costs

 

 

 

  - direct

1 

(3)

(2)

  - indirect

(1)

(4)

(5)

 

 

 

 

Operating expenses

(76)

(84)

(160)

 

 

 

 

Operating profit before impairment losses

152 

79 

231 

Impairment releases/(losses)

8 

(1)

7 

 

 

 

 

Operating profit

160 

78 

238 

 

 

 

 

Memo:

 

 

 

Operating expenses - adjusted (1)

(76)

(77)

(153)

Operating profit - adjusted (1)

160 

85 

245 

 

 

 

 

Key metrics

 

 

 

 

 

 

 

Return on equity (2)

19.7%

44.4%

24.2%

Return on equity - adjusted (1,2)

19.7%

48.4%

24.9%

Net interest margin

1.42%

2.20%

1.65%

Net interest margin excluding central IEAs

4.18%

5.94%

4.83%

Cost:income ratio

33%

52%

41%

Cost:income ratio - adjusted (1)

33%

47%

39%

Loan impairment charge as % of gross customer loans and advances

(0.2%)

- 

(0.1%)

 

 

31 December 2014

 

Allocated from

Total

 

Commercial

Private

RBS

 

Banking

Banking

International

Capital and balance sheet

£bn

£bn

£bn

 

 

 

 

Loans and advances to customers (gross)

4.7 

2.6 

7.3 

Loan impairment provisions

(0.1)

- 

(0.1)

 

 

 

 

Net loans and advances to customers

4.6 

2.6 

7.2 

Funded assets

20.2 

3.2 

23.4 

Risk elements in lending

0.1 

0.1 

0.2 

Customer deposits (excluding repos)

14.3 

6.5 

20.8 

Loan:deposit ratio (excluding repos)

32%

40%

35%

Provision coverage (3)

41%

30%

27%

Risk-weighted assets

6.3 

1.2 

7.5 

 

Notes:

(1)

Excluding restructuring costs.

(2)

Return on equity is based on segmental operating profit after tax adjusted for preference dividends divided by average notional equity based on 12% (previously 13%) of the monthly average of segmental RWAes, assuming 10% tax rate.

(3)

Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.

 

 

CIB

 

Quarter ended

 

30 September

 

2015 

All allocated from CIB

Income statement

£m

 

 

Net interest income

29 

Non-interest income

299 

Own credit adjustments

78 

 

 

Total income

406 

 

 

Direct expenses

 

  - staff

(97)

  - other

(19)

Indirect expenses

(242)

Restructuring costs

 

  - direct

(3)

  - indirect

(148)

Litigation and conduct costs

(6)

 

 

Operating expenses

(515)

 

 

Operating loss

(109)

 

 

Memo:

 

Total income - adjusted (1)

328 

Operating expenses - adjusted (2)

(358)

Operating loss - adjusted (1,2)

(30)

 

 

Key metrics

 

 

 

Return on equity (3)

(6.4%)

Return on equity - adjusted (1,2,3)

(2.7%)

Net interest margin

0.62%

Net interest margin excluding central IEAs

0.78%

Cost:income ratio

127%

Cost:income ratio - adjusted (1,2)

109%

 

 

 

30 September

 

 

2015 

 

All allocated from CIB

Capital and balance sheet

 

£bn

 

 

 

Net loans and advances to customers

 

19.8 

Funded assets

 

125.9 

Customer deposits (excluding repos)

 

5.9 

Loan:deposit ratio (excluding repos)

 

337%

Risk-weighted assets

 

38.8 

 

Notes:

(1)

Excluding own credit adjustments.

(2)

Excluding restructuring costs and litigation and conduct costs.

(3)

Return on equity is based on segmental operating profit after tax adjusted for preference dividends divided by average notional equity based on 15% (previously 13%) of the monthly average of segmental RWAes, assuming 28% tax rate; previously 25%.

CIB

 

 

Quarter ended

 

 

31 December

 

 

2014 

 

All allocated from CIB

Income statement

 

£m

 

 

 

Net interest income

 

8 

Non-interest income

 

248 

Own credit adjustments

 

(33)

 

 

 

Total income

 

223 

 

 

 

Direct expenses

 

 

  - staff

 

(36)

  - other

 

(47)

Indirect expenses

 

(293)

Restructuring costs

 

 

  - direct

 

(3)

  - indirect

 

(16)

Litigation and conduct costs

 

(370)

 

 

 

Operating expenses

 

(765)

 

 

 

Operating loss before impairment releases

 

(542)

Impairment releases

 

6 

 

 

 

Operating loss

 

(536)

 

 

 

Memo:

 

 

Total income - adjusted (1)

 

256 

Operating expenses - adjusted (2)

 

(376)

Operating loss - adjusted (1,2)

 

(114)

 

 

 

Key metrics

 

 

 

 

 

Return on equity (3)

 

(23.3%)

Return on equity - adjusted (1,2,3)

 

(5.9%)

Net interest margin

 

0.21%

Net interest margin excluding central IEAs

 

0.16%

Cost:income ratio

 

343%

Cost:income ratio - adjusted (1,2)

 

147%

Loan impairment charge as % of gross customer loans and advances

 

(0.1%)

 

 

31 December

 

2014 

All allocated from CIB

Capital and balance sheet

£bn

 

 

Net loans and advances to customers

26.5 

Funded assets

137.7 

Customer deposits (excluding repos)

11.8 

Loan:deposit ratio (excluding repos)

226%

Risk-weighted assets

41.9 

 

Notes:

(1)

Excluding own credit adjustments.

(2)

Excluding restructuring costs and litigation and conduct costs.

(3)

Return on equity is based on segmental operating profit after tax adjusted for preference dividends divided by average notional equity based on 15% (previously 13%) of the monthly average of segmental RWAes, assuming 28% tax rate; previously 25%.

 


CIB

 

Year ended

 

31 December

 

2014 

All allocated from CIB

Income statement

£m

 

 

Net interest income

(11)

Non-interest income

1,951 

Own credit adjustments

(9)

 

 

Total income

1,931 

 

 

Direct expenses

 

  - staff

(446)

  - other

(190)

Indirect expenses

(1,080)

Restructuring costs

 

  - direct

(13)

  - indirect

(89)

Litigation and conduct costs

(832)

 

 

Operating expenses

(2,650)

 

 

Operating loss before impairment releases

(719)

Impairment releases

9 

 

 

Operating loss

(710)

 

 

Memo:

 

Total income - adjusted (1)

1,940 

Operating expenses - adjusted (2)

(1,716)

Operating profit - adjusted (1,2)

233 

Key metrics

 

 

 

Return on equity (3)

(7.9%)

Return on equity - adjusted (1,2,3)

1.3%

Net interest margin

(0.07%)

Net interest margin excluding central IEAs

(0.06%)

Cost:income ratio

137%

Cost:income ratio - adjusted (1,2)

88%

 

 

31 December

 

2014 

All allocated from CIB

Capital and balance sheet

£bn

 

 

Net loans and advances to customers

26.5 

Funded assets

137.7 

Customer deposits (excluding repos)

11.8 

Loan:deposit ratio (excluding repos)

226%

Risk-weighted assets

41.9 

 

Notes:

(1)

Excluding own credit adjustments.

(2)

Excluding restructuring costs and litigation and conduct costs.

(3)

Return on equity is based on segmental operating profit after tax adjusted for preference dividends divided by average notional equity based on 15% (previously 13%) of the monthly average of segmental RWAes, assuming 28% tax rate; previously 25%.

 

Capital Resolution

 

 

Quarter ended 30 September 2015

 

 

 

 

Total

 

Allocated from

Capital

 

CIB

RCR

Centre

Resolution

Income statement

£m

£m

£m

£m

 

 

 

 

 

Net interest income

94 

(17)

1 

78 

Non-interest income

(49)

(3)

25 

(27)

Own credit adjustments

38 

- 

- 

38 

 

 

 

 

 

Total income

83 

(20)

26 

89 

 

 

 

 

 

Direct expenses

 

 

 

 

  - staff

(38)

(22)

- 

(60)

  - other

(40)

(1)

- 

(41)

Indirect expenses

(230)

(15)

- 

(245)

Restructuring costs

 

 

 

 

  - direct

(190)

- 

- 

(190)

  - indirect

(296)

(4)

- 

(300)

Litigation and conduct costs

(101)

- 

- 

(101)

 

 

 

 

 

Operating expenses

(895)

(42)

- 

(937)

 

 

 

 

 

Operating (loss)/profit before impairment releases

(812)

(62)

26 

(848)

Impairment releases

4 

46 

- 

50 

 

 

 

 

 

Operating (loss)/profit

(808)

(16)

26 

(798)

 

 

 

 

 

Memo:

 

 

 

 

Total income - adjusted (1)

45 

(20)

26 

51 

Operating expenses - adjusted (2)

(308)

(38)

- 

(346)

Operating (loss)/profit - adjusted (1,2)

(259)

(12)

26 

(245)

 

 

 

 

 

Key metrics

 

 

 

 

 

 

 

 

 

Net interest margin

0.93%

nm

nm

0.60%

Net interest margin excluding central IEAs

1.14%

nm

nm

0.70%

Loan impairment charge as % of gross customer loans and advances

- 

(2.2%)

nm

(0.5%)

 

 

30 September 2015

 

 

 

 

Total

 

Allocated from

Capital

 

CIB

RCR

Centre

Resolution

Capital and balance sheet

£bn

£bn

£bn

£bn

 

 

 

 

 

Loans and advances to customers (gross)

26.6 

8.2 

- 

34.8 

Loan impairment provisions

(0.1)

(3.9)

- 

(4.0)

 

 

 

 

 

Net loans and advances to customers

26.5 

4.3 

- 

30.8 

Funded assets

58.4 

6.5 

1.1 

66.0 

Risk elements in lending

0.2 

5.1 

- 

5.3 

Customer deposits (excluding repos)

29.1 

0.9 

- 

30.0 

Loan:deposit ratio (excluding repos)

91%

nm

nm

nm

Provision coverage (3)

63%

nm

nm

76%

Risk-weighted assets

40.4 

12.4 

6.9 

59.7 

 

Notes:

(1)

Excluding own credit adjustments.

(2)

Excluding restructuring costs and litigation and conduct costs.

(3)

Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.

 

 

 


Capital Resolution

 

 

Quarter ended 31 December 2014

 

 

 

 

Total

 

Allocated from

Capital

 

CIB

RCR

Centre

Resolution

Income statement

£m

£m

£m

£m

 

 

 

 

 

Net interest income

183 

(23)

2 

162 

Non-interest income

174 

(162)

25 

37 

Own credit adjustments

(50)

- 

- 

(50)

 

 

 

 

 

Total income

307 

(185)

27 

149 

 

 

 

 

 

Direct expenses

 

 

 

 

  - staff

(25)

(41)

- 

(66)

  - other

(51)

(29)

- 

(80)

Indirect expenses

(319)

(25)

- 

(344)

Restructuring costs

 

 

 

 

  - direct

(46)

- 

- 

(46)

  - indirect

(19)

(3)

- 

(22)

Litigation and conduct costs

(12)

- 

- 

(12)

 

 

 

 

 

Operating expenses

(472)

(98)

- 

(570)

 

 

 

 

 

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

(165)

(283)

27 

(421)

Impairment (losses)/releases

(47)

681 

- 

634 

 

 

 

 

 

Operating (loss)/profit

(212)

398 

27 

213 

 

 

 

 

 

Memo:

 

 

 

 

Total income - adjusted (1)

357 

(185)

27 

199 

Operating expenses - adjusted (2)

(395)

(95)

- 

(490)

Operating (loss)/profit - adjusted (1,2)

(85)

401 

27 

343 

 

 

 

 

 

Key metrics

 

 

 

 

 

 

 

 

 

Net interest margin

1.13%

nm

nm

0.71%

Net interest margin excluding central IEAs

1.25%

nm

nm

0.77%

Loan impairment charge as % of gross customer loans and advances

0.5%

(12.8%)

nm

(4.0%)

 

 

31 December 2014

 

 

 

Total

 

Allocated from

Capital

 

CIB

RCR

Centre

Resolution

Capital and balance sheet

£bn

£bn

£bn

£bn

 

 

 

 

 

Loans and advances to customers (gross)

42.1 

21.9 

- 

64.0 

Loan impairment provisions

(0.2)

(10.9)

- 

(11.1)

 

 

 

 

 

Net loans and advances to customers

41.9 

11.0 

- 

52.9 

Funded assets

99.7 

14.9 

1.0 

115.6 

Risk elements in lending

0.2 

15.4 

- 

15.6 

Customer deposits (excluding repos)

35.2 

1.2 

- 

36.4 

Loan:deposit ratio (excluding repos)

119%

nm

nm

nm

Provision coverage (3)

96%

nm

nm

71%

Risk-weighted assets

67.0 

22.0 

6.1 

95.1 

 

Notes:

(1)

Excluding own credit adjustments.

(2)

Excluding restructuring costs and litigation and conduct costs.

(3)

Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.

 


Capital Resolution

 

 

Year end 31 December 2014

 

 

 

Total

 

Allocated from

Capital

 

CIB

RCR

Centre

Resolution

Income statement

£m

£m

£m

£m

 

 

 

 

 

Net interest income

717 

(47)

3 

673 

Non-interest income

969 

92 

94 

1,155 

Own credit adjustments

(14)

(22)

- 

(36)

 

 

 

 

 

Total income

1,672 

23 

97 

1,792 

 

 

 

 

 

Direct expenses

 

 

 

 

  - staff

(277)

(167)

- 

(444)

  - other

(208)

(85)

- 

(293)

Indirect expenses

(1,179)

(104)

- 

(1,283)

Restructuring costs

 

 

 

 

  - direct

(80)

- 

- 

(80)

  - indirect

(98)

(7)

- 

(105)

Litigation and conduct costs

(162)

- 

- 

(162)

Write-down of goodwill

(130)

- 

- 

(130)

 

 

 

 

 

Operating expenses

(2,134)

(363)

- 

(2,497)

 

 

 

 

 

Operating (loss)/profit before impairment releases

(462)

(340)

97 

(705)

Impairment releases

1 

1,306 

- 

1,307 

 

 

 

 

 

Operating (loss)/profit

(461)

966 

97 

602 

 

 

 

 

 

Memo:

 

 

 

 

Total income - adjusted (1)

1,686 

45 

97 

1,828 

Operating expenses - adjusted (2)

(1,664)

(356)

- 

(2,020)

Operating profit - adjusted (1,2)

23 

995 

97 

1,115 

 

 

 

 

 

Key metrics

 

 

 

 

 

 

 

 

 

Net interest margin

1.05%

nm

nm

0.67%

Net interest margin excluding central IEAs

1.16%

nm

nm

0.72%

Loan impairment charge as % of gross customer loans and advances

- 

(6.1%)

nm

(2.0%)

 

 

31 December 2014

 

 

 

Total

 

Allocated from

Capital

 

CIB

RCR

Centre

Resolution

Capital and balance sheet

£bn

£bn

£bn

£bn

 

 

 

 

 

Loans and advances to customers (gross)

42.1 

21.9 

- 

64.0 

Loan impairment provisions

(0.2)

(10.9)

- 

(11.1)

 

 

 

 

 

Net loans and advances to customers

41.9 

11.0 

- 

52.9 

Funded assets

99.7 

14.9 

1.0 

115.6 

Risk elements in lending

0.2 

15.4 

- 

15.6 

Customer deposits (excluding repos)

35.2 

1.2 

- 

36.4 

Loan:deposit ratio (excluding repos)

119%

nm

nm

nm

Provision coverage (3)

96%

nm

nm

71%

Risk-weighted assets

67.0 

22.0 

6.1 

95.1 

 

Notes:

(1)

Excluding own credit adjustments

(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 2015

 

All allocated from UK PBB

Income statement (1)

 

 

£m

 

 

 

 

Net interest income

 

 

167 

Non-interest income

 

 

44 

 

 

 

 

Total income

 

 

211 

 

 

 

 

Direct expenses

 

 

 

  - staff

 

 

(55)

  - other

 

 

(12)

Indirect expenses

 

 

(24)

 

 

 

 

Operating expenses

 

 

(91)

 

 

 

 

Operating profit before impairment losses

 

 

120 

Impairment losses

 

 

(5)

 

 

 

 

Operating profit

 

 

115 

 

 

 

 

Key metrics

 

 

 

 

 

 

 

Net interest margin

 

 

2.88%

Net interest margin excluding central IEAs

 

 

3.40%

Cost:income ratio

 

 

43%

Loan impairment charge as % of gross customer loans and advances

 

 

0.1%

 

 

30 September 2015

 

All allocated from UK PBB

Capital and balance sheet (1)

 

 

£bn

 

 

 

 

Loans and advances to customers (gross)

 

 

20.3 

Loan impairment provisions

 

 

(0.3)

 

 

 

 

Net loans and advances to customers

 

 

20.0 

Funded assets

 

 

24.0 

Risk elements in lending

 

 

0.5 

Customer deposits (excluding repos)

 

 

23.6 

Loan:deposit ratio (excluding repos)

 

 

85%

Provision coverage (2)

 

 

59%

Risk-weighted assets

 

 

10.1 

 

Notes:

(1)

Does not reflect the cost base, funding and capital profile of a standalone bank. Operating expenses include charges based on an attribution of support provided by RBS to Williams & Glyn.

(2)

Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.

 


Williams & Glyn

 

 

 

Quarter ended

 

31 December 2014

 

All allocated from UK PBB

Income statement (1)

 

 

£m

 

 

 

 

Net interest income

 

 

167 

Non-interest income

 

 

49 

 

 

 

 

Total income

 

 

216 

 

 

 

 

Direct expenses

 

 

 

  - staff

 

 

(49)

  - other

 

 

(10)

Indirect expenses

 

 

(25)

 

 

 

 

Operating expenses

 

 

(84)

 

 

 

 

Operating profit before impairment losses

 

 

132 

Impairment losses

 

 

(9)

 

 

 

 

Operating profit

 

 

123 

 

 

 

 

Key metrics

 

 

 

 

 

 

 

Net interest margin

 

 

2.92%

Net interest margin excluding central IEAs

 

 

3.42%

Cost:income ratio

 

 

39%

Loan impairment charge as % of gross customer loans and advances

 

 

0.2%

 

 

31 December 2014

 

All allocated from UK PBB

Capital and balance sheet (1)

 

 

£bn

 

 

 

 

Loans and advances to customers (gross)

 

 

19.9 

Loan impairment provisions

 

 

(0.4)

 

 

 

 

Net loans and advances to customers

 

 

19.5 

Funded assets

 

 

23.6 

Risk elements in lending

 

 

0.6 

Customer deposits (excluding repos)

 

 

22.0 

Loan:deposit ratio (excluding repos)

 

 

88%

Provision coverage (2)

 

 

61%

Risk-weighted assets

 

 

10.1 

   

Notes:

(1)

Does not reflect the cost base, funding and capital profile of a standalone bank. Operating expenses include charges based on an attribution of support provided by RBS to Williams & Glyn.

(2)

Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.

 


Williams & Glyn

 

 

 

 

Year end

 

31 December 2014

 

All allocated from UK PBB

Income statement (1)

 

 

£m

 

 

 

 

Net interest income

 

 

664 

Non-interest income

 

 

188 

 

 

 

 

Total income

 

 

852 

 

 

 

 

Direct expenses

 

 

 

  - staff

 

 

(196)

  - other

 

 

(36)

Indirect expenses

 

 

(98)

 

 

 

 

Operating expenses

 

 

(330)

 

 

 

 

Operating profit before impairment losses

 

 

522 

Impairment losses

 

 

(55)

 

 

 

 

Operating profit

 

 

467 

 

 

 

 

Key metrics

 

 

 

 

 

 

 

Net interest margin

 

 

2.93%

Net interest margin excluding central IEAs

 

 

3.42%

Cost:income ratio

 

 

39%

Loan impairment charge as % of gross customer loans and advances

 

 

0.3%

 

 

31 December 2014

 

All allocated from UK PBB

Capital and balance sheet (1)

 

 

£bn

 

 

 

 

Loans and advances to customers (gross)

 

 

19.9 

Loan impairment provisions

 

 

(0.4)

 

 

 

 

Net loans and advances to customers

 

 

19.5 

Funded assets

 

 

23.6 

Risk elements in lending

 

 

0.6 

Customer deposits (excluding repos)

 

 

22.0 

Loan:deposit ratio (excluding repos)

 

 

88%

Provision coverage (2)

 

 

61%

Risk-weighted assets

 

 

10.1 

 

Notes:

(1)

Does not reflect the cost base, funding and capital profile of a standalone bank. Operating expenses include charges based on an attribution of support provided by RBS to Williams & Glyn.

(2)

Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.

 

 

 

 

 

 

 

 

 

 

Appendix 3

 

Allocation of previous segments to new customer segments

 

 

Allocation of previous segments to new customer segments

 

The tables in this appendix summarise the performance of the previously reported segments, as adjusted for the reporting changes outlined on page 2, and show how these segments have been allocated to the new reportable segments.

 

UK PBB

 

 

 

 

 

 

Quarter ended 30 September 2015

 

Previously

Reporting

Allocated to

 

reported

changes (1)

W&G

UK PBB

Income statement

£m

£m

£m

£m

 

 

 

 

 

Net interest income

1,170 

15 

167 

1,018 

Non-interest income

289 

- 

44 

245 

 

 

 

 

 

Total income

1,459 

15 

211 

1,263 

 

 

 

 

 

Direct expenses

 

 

 

 

  - staff

(238)

- 

(55)

(183)

  - other

(81)

- 

(12)

(69)

Indirect expenses

(466)

- 

(24)

(442)

Restructuring costs

 

 

 

 

  - direct

(5)

- 

- 

(5)

  - indirect

(22)

- 

- 

(22)

Litigation and conduct costs

2 

- 

- 

2 

 

 

 

 

 

Operating expenses

(810)

- 

(91)

(719)

 

 

 

 

 

Operating profit before impairment losses

649 

15 

120 

544 

Impairment losses

(11)

- 

(5)

(6)

 

 

 

 

 

Operating profit

638 

15 

115 

538 

 

 

 

 

 

Memo:

 

 

 

 

Operating expenses - adjusted (2)

(785)

- 

(91)

(694)

Operating profit - adjusted (2)

663 

15 

115 

563 

 

 

 

 

 

Key metrics

 

 

 

 

 

 

 

 

 

Net interest margin

nm

 

2.88%

3.19%

Net interest margin excluding central IEAs

3.54%

 

3.40%

3.61%

Cost:income ratio

56%

 

43%

57%

Cost:income ratio - adjusted (2)

54%

 

43%

55%

 

 

 

 

 

 

30 September 2015

 

Previously

Reporting

Allocated to

 

reported

changes (1)

W&G

UK PBB

Capital and balance sheet

£bn

£bn

£bn

£bn

 

 

 

 

 

Loans and advances to customers (gross)

134.5 

- 

20.3 

114.2 

Loan impairment provisions

(2.0)

- 

(0.3)

(1.7)

 

 

 

 

 

Net loans and advances to customers

132.5 

- 

20.0 

112.5 

Funded assets

139.1 

20.4 

24.0 

135.5 

Risk elements in lending

3.0 

- 

0.5 

2.5 

Customer deposits (excluding repos)

152.9 

- 

23.6 

129.3 

Loan:deposit ratio (excluding repos)

87%

- 

85%

87%

Provision coverage (3)

66%

- 

59%

68%

Risk-weighted assets

39.4 

1.2 

10.1 

30.5 

 

Notes:

(1)

Refer to page 2 for further details.

(2)

Excluding restructuring costs and litigation and conduct costs.

(3)

Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.

 


UK PBB

 

 

 

 

 

 

Quarter ended 31 December 2014

 

Previously

Reporting

Allocated to

 

reported

changes (1)

W&G

UK PBB

Income statement

£m

£m

£m

£m

 

 

 

 

 

Net interest income

1,209 

6 

167 

1,048 

Non-interest income

323 

- 

49 

274 

 

 

 

 

 

Total income

1,532 

6 

216 

1,322 

 

 

 

 

 

Direct expenses

 

 

 

 

  - staff

(232)

- 

(49)

(183)

  - other

(86)

- 

(10)

(76)

Indirect expenses

(548)

- 

(25)

(523)

Restructuring costs

 

 

 

 

  - direct

(2)

- 

- 

(2)

  - indirect

(16)

- 

- 

(16)

Litigation and conduct costs

(650)

- 

- 

(650)

 

 

 

 

 

Operating expenses

(1,534)

- 

(84)

(1,450)

 

 

 

 

 

Operating (loss)/profit before impairment losses

(2)

6 

132 

(128)

Impairment losses

(41)

- 

(9)

(32)

 

 

 

 

 

Operating (loss)/profit

(43)

6 

123 

(160)

 

 

 

 

 

Memo:

 

 

 

 

Operating expenses - adjusted (2)

(866)

- 

(84)

(782)

Operating profit - adjusted (2)

625 

6 

123 

508 

 

 

 

 

 

Key metrics

 

 

 

 

 

 

 

 

 

Net interest margin

nm

 

2.92%

3.38%

Net interest margin excluding central IEAs

3.74%

 

3.42%

3.82%

Cost:income ratio

100%

 

39%

110%

Cost:income ratio - adjusted (2)

57%

 

39%

59%

 

 

 

 

 

 

31 December 2014

 

Previously

Reporting

Allocated to

 

reported

changes (1)

W&G

UK PBB

Capital and balance sheet

£bn

£bn

£bn

£bn

 

 

 

 

 

Loans and advances to customers (gross)

129.8 

- 

19.9 

109.9 

Loan impairment provisions

(2.6)

- 

(0.4)

(2.2)

 

 

 

 

 

Net loans and advances to customers

127.2 

- 

19.5 

107.7 

Funded assets

134.3 

21.6 

23.6 

132.3 

Risk elements in lending

3.8 

- 

0.6 

3.2 

Customer deposits (excluding repos)

148.7 

- 

22.0 

126.7 

Loan:deposit ratio (excluding repos)

86%

- 

88%

85%

Provision coverage (3)

69%

- 

61%

70%

Risk-weighted assets

42.8 

1.0 

10.1 

33.7 

 

Notes:

(1)

Refer to page 2 for further details.

(2)

Excluding restructuring costs and litigation and conduct costs.

(3)

Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.

 


UK PBB

 

 

 

 

 

 

Year ended 31 December 2014

 

Previously

Reporting

Allocated to

 

reported

changes (1)

W&G

UK PBB

Income statement

£m

£m

£m

£m

 

 

 

 

 

Net interest income

4,683 

33 

664 

4,052 

Non-interest income

1,354 

- 

188 

1,166 

 

 

 

 

 

Total income

6,037 

33 

852 

5,218 

 

 

 

 

 

Direct expenses

 

 

 

 

  - staff

(937)

- 

(196)

(741)

  - other

(391)

- 

(36)

(355)

Indirect expenses

(1,971)

- 

(98)

(1,873)

Restructuring costs

 

 

 

 

  - direct

(10)

- 

- 

(10)

  - indirect

(92)

- 

- 

(92)

Litigation and conduct costs

(918)

- 

- 

(918)

 

 

 

 

 

Operating expenses

(4,319)

- 

(330)

(3,989)

 

 

 

 

 

Operating profit before impairment losses

1,718 

33 

522 

1,229 

Impairment losses

(268)

- 

(55)

(213)

 

 

 

 

 

Operating profit

1,450 

33 

467 

1,016 

 

 

 

 

 

Memo:

 

 

 

 

Operating expenses - adjusted (2)

(3,299)

- 

(330)

(2,969)

Operating profit - adjusted (2)

2,470 

33 

467 

2,036 

 

 

 

 

 

Key metrics

 

 

 

 

 

 

 

 

 

Net interest margin

nm

 

2.93%

3.32%

Net interest margin excluding central IEAs

3.68%

 

3.42%

3.75%

Cost:income ratio

72%

 

39%

76%

Cost:income ratio - adjusted (2)

55%

 

39%

57%

 

 

 

 

 

 

31 December 2014

 

Previously

Reporting

Allocated to

 

reported

changes (1)

W&G

UK PBB

Capital and balance sheet

£bn

£bn

£bn

£bn

 

 

 

 

 

Loans and advances to customers (gross)

129.8 

- 

19.9 

109.9 

Loan impairment provisions

(2.6)

- 

(0.4)

(2.2)

 

 

 

 

 

Net loans and advances to customers

127.2 

- 

19.5 

107.7 

Funded assets

134.3 

21.6 

23.6 

132.3 

Risk elements in lending

3.8 

- 

0.6 

3.2 

Customer deposits (excluding repos)

148.7 

- 

22.0 

126.7 

Loan:deposit ratio (excluding repos)

86%

- 

88%

85%

Provision coverage (3)

69%

- 

61%

70%

Risk-weighted assets

42.8 

1.0 

10.1 

33.7 

 

Notes:

(1)

Refer to page 2 for further details.

(2)

Excluding restructuring costs and litigation and conduct costs.

(3)

Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.

 

 

Ulster Bank

 

 

 

 

 

 

Quarter ended 30 September 2015

 

 

 

Allocated to

 

Previously

Reporting

 

Ulster Bank

 

reported

changes (1)

UK PBB

RoI

Income statement

£m

£m

£m

£m

 

 

 

 

 

Net interest income

127 

- 

37 

90 

Non-interest income

87 

- 

13 

74 

 

 

 

 

 

Total income

214 

- 

50 

164 

 

 

 

 

 

Direct expenses

 

 

 

 

  - staff

(59)

- 

(19)

(40)

  - other

(21)

- 

1 

(22)

Indirect expenses

(70)

- 

(22)

(48)

Restructuring costs

 

 

 

 

  - direct

(3)

- 

- 

(3)

  - indirect

(3)

- 

(1)

(2)

Litigation and conduct costs

(2)

- 

(2)

- 

 

 

 

 

 

Operating expenses

(158)

- 

(43)

(115)

 

 

 

 

 

Operating profit before impairment releases

56 

- 

7 

49 

Impairment releases

58 

- 

4 

54 

 

 

 

 

 

Operating profit

114 

- 

11 

103 

 

 

 

 

 

Memo:

 

 

 

 

Operating expenses - adjusted (2)

(150)

- 

(40)

(110)

Operating profit - adjusted (2)

122 

- 

14 

108 

 

 

 

 

 

Key metrics

 

 

 

 

 

 

 

 

 

Net interest margin

nm

 

3.18%

1.52%

Net interest margin excluding central IEAs

1.81%

 

3.36%

1.52%

Cost:income ratio

74%

 

86%

70%

Cost:income ratio - adjusted (2)

70%

 

80%

67%

 

 

 

 

 

 

30 September 2015

 

 

 

Allocated to

 

Previously

Reporting

 

Ulster Bank

 

reported

changes (1)

UK PBB

RoI

Capital and balance sheet

£bn

£bn

£bn

£bn

 

 

 

 

 

Loans and advances to customers (gross)

22.9 

- 

4.1 

18.8 

Loan impairment provisions

(2.3)

- 

(0.3)

(2.0)

 

 

 

 

 

Net loans and advances to customers

20.6 

- 

3.8 

16.8 

Funded assets

27.9 

0.2 

5.2 

22.9 

Risk elements in lending

4.0 

- 

0.4 

3.6 

Customer deposits (excluding repos)

19.2 

- 

5.6 

13.6 

Loan:deposit ratio (excluding repos)

108%

- 

68%

123%

Provision coverage (3)

58%

- 

88%

54%

Risk-weighted assets

21.5 

0.9 

2.8 

19.6 

 

Notes:

(1)

Refer to page 2 for further details.

(2)

Excluding restructuring costs and litigation and conduct costs.

(3)

Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.

 


Ulster Bank

 

 

 

 

 

 

Quarter ended 31 December 2014

 

 

 

Allocated to

 

Previously

Reporting

 

Ulster Bank

 

reported

changes (1)

UK PBB

RoI

Income statement

£m

£m

£m

£m

 

 

 

 

 

Net interest income

150 

- 

38 

112 

Non-interest income

54 

- 

14 

40 

 

 

 

 

 

Total income

204 

- 

52 

152 

 

 

 

 

 

Direct expenses

 

 

 

 

  - staff

(65)

- 

(22)

(43)

  - other

(19)

- 

4 

(23)

Indirect expenses

(78)

- 

(25)

(53)

Restructuring costs

 

 

 

 

  - indirect

4 

- 

2 

2 

Litigation and conduct costs

19 

- 

- 

19 

 

 

 

 

 

Operating expenses

(139)

- 

(41)

(98)

 

 

 

 

 

Operating profit before impairment releases

65 

- 

11 

54 

Impairment releases

104 

- 

34 

70 

 

 

 

 

 

Operating profit

169 

- 

45 

124 

 

 

 

 

 

Memo:

 

 

 

 

Operating expenses - adjusted (2)

(162)

- 

(43)

(119)

Operating profit - adjusted (2)

146 

- 

43 

103 

 

 

 

 

 

Key metrics

 

 

 

 

 

 

 

 

 

Net interest margin

nm

 

3.11%

1.90%

Net interest margin excluding central IEAs

2.14%

 

3.38%

1.90%

Cost:income ratio

68%

 

79%

64%

Cost:income ratio - adjusted (2)

79%

 

83%

78%

 

 

 

 

 

 

31 December 2014

 

 

 

Allocated to

 

Previously

Reporting

 

Ulster Bank

 

reported

changes (1)

UK PBB

RoI

Capital and balance sheet

£bn

£bn

£bn

£bn

 

 

 

 

 

Loans and advances to customers (gross)

24.7 

- 

4.2 

20.5 

Loan impairment provisions

(2.7)

- 

(0.3)

(2.4)

 

 

 

 

 

Net loans and advances to customers

22.0 

- 

3.9 

18.1 

Funded assets

27.5 

0.4 

5.5 

22.4 

Risk elements in lending

4.8 

- 

0.4 

4.4 

Customer deposits (excluding repos)

20.6 

- 

5.9 

14.7 

Loan:deposit ratio (excluding repos)

107%

- 

66%

124%

Provision coverage (3)

57%

- 

80%

55%

Risk-weighted assets

23.8 

0.9 

2.9 

21.8 

 

Notes:

(1)

Refer to page 2 for further details.

(2)

Excluding restructuring costs and litigation and conduct costs.

(3)

Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.

Ulster Bank

 

 

 

 

 

 

Year ended 31 December 2014

 

 

 

Allocated to

 

Previously

Reporting

 

Ulster Bank

 

reported

changes (1)

UK PBB

RoI

Income statement

£m

£m

£m

£m

 

 

 

 

 

Net interest income

636 

- 

169 

467 

Non-interest income

194 

- 

57 

137 

 

 

 

 

 

Total income

830 

- 

226 

604 

 

 

 

 

 

Direct expenses

 

 

 

 

  - staff

(247)

- 

(83)

(164)

  - other

(74)

- 

9 

(83)

Indirect expenses

(265)

- 

(85)

(180)

Restructuring costs

 

 

 

 

  - direct

8 

- 

- 

8 

  - indirect

(30)

- 

(9)

(21)

Litigation and conduct costs

19 

- 

- 

19 

 

 

 

 

 

Operating expenses

(589)

- 

(168)

(421)

 

 

 

 

 

Operating profit before impairment releases

241 

- 

58 

183 

Impairment releases

365 

- 

59 

306 

 

 

 

 

 

Operating profit

606 

- 

117 

489 

 

 

 

 

 

Memo:

 

 

 

 

Operating expenses - adjusted (2)

(586)

- 

(159)

(427)

Operating profit - adjusted (2)

609 

- 

126 

483 

 

 

 

 

 

Key metrics

 

 

 

 

 

 

 

 

 

Net interest margin

nm

 

3.45%

1.92%

Net interest margin excluding central IEAs

2.27%

 

3.75%

1.99%

Cost:income ratio

71%

 

74%

70%

Cost:income ratio - adjusted (2)

71%

 

70%

71%

 

 

 

 

 

 

31 December 2014

 

 

 

Allocated to

 

Previously

Reporting

 

Ulster Bank

 

reported

changes (1)

UK PBB

RoI

Capital and balance sheet

£bn

£bn

£bn

£bn

 

 

 

 

 

Loans and advances to customers (gross)

24.7 

- 

4.2 

20.5 

Loan impairment provisions

(2.7)

- 

(0.3)

(2.4)

 

 

 

 

 

Net loans and advances to customers

22.0 

- 

3.9 

18.1 

Funded assets

27.5 

0.4 

5.5 

22.4 

Risk elements in lending

4.8 

- 

0.4 

4.4 

Customer deposits (excluding repos)

20.6 

- 

5.9 

14.7 

Loan:deposit ratio (excluding repos)

107%

- 

66%

124%

Provision coverage (3)

57%

- 

80%

55%

Risk-weighted assets

23.8 

0.9 

2.9 

21.8 

 

Notes:

(1)

Refer to page 2 for further details.

(2)

Excluding restructuring costs and litigation and conduct costs.

(2)

Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.

 

 

Commercial Banking

 

 

 

 

 

 

Quarter ended 30 September 2015

 

 

 

Allocated to

 

Previously

Reporting

Commercial

RBS

 

reported

changes (1)

Banking

International

Income statement

£m

£m

£m

£m

 

 

 

 

 

Net interest income

565 

(21)

471 

73 

Non-interest income

265 

- 

251 

14 

 

 

 

 

 

Total income

830 

(21)

722 

87 

 

 

 

 

 

Direct expenses

 

 

 

 

  - staff

(122)

- 

(113)

(9)

  - other

(22)

- 

(19)

(3)

  - operating lease costs

(34)

- 

(34)

- 

Indirect expenses

(224)

- 

(200)

(24)

Restructuring costs

 

 

 

 

  - direct

(1)

- 

(1)

- 

  - indirect

- 

- 

2 

(2)

 

 

 

 

 

Operating expenses

(403)

- 

(365)

(38)

 

 

 

 

 

Operating profit before impairment (losses)/releases

427 

(21)

357 

49 

Impairment (losses)/releases

(15)

- 

(16)

1 

 

 

 

 

 

Operating profit

412 

(21)

341 

50 

 

 

 

 

 

Memo:

 

 

 

 

Operating expenses - adjusted (2)

(402)

- 

(366)

(36)

Operating profit - adjusted (2)

413 

(21)

340 

52 

 

 

 

 

 

Key metrics

 

 

 

 

 

 

 

 

 

Net interest margin

nm

 

1.87%

1.43%

Net interest margin excluding central IEAs

2.81%

 

2.56%

4.38%

Cost:income ratio

49%

 

51%

44%

Cost:income ratio - adjusted (2)

48%

 

51%

41%

 

 

 

 

 

 

30 September 2015

 

 

 

Allocated to

 

Previously

Reporting

Commercial

RBS

 

reported

changes (1)

Banking

International

Capital and balance sheet

£bn

£bn

£bn

£bn

 

 

 

 

 

Loans and advances to customers (gross)

92.4 

- 

85.3 

7.1 

Loan impairment provisions

(0.8)

- 

(0.7)

(0.1)

 

 

 

 

 

Net loans and advances to customers

91.6 

- 

84.6 

7.0 

Funded assets

95.9 

46.0 

119.0 

22.9 

Risk elements in lending

2.2 

- 

2.1 

0.1 

Customer deposits (excluding repos)

98.9 

- 

76.6 

22.3 

Loan:deposit ratio (excluding repos)

93%

- 

111%

32%

Provision coverage (3)

39%

- 

33%

58%

Risk-weighted assets

67.2 

3.2 

62.3 

8.1 

 

Notes:

(1)

Refer to page 2 for further details.

(2)

Excluding restructuring costs and litigation and conduct costs.

(3)

Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.

 


Commercial Banking

 

 

 

 

 

 

 

Quarter ended 31 December 2014

 

 

 

 

Allocated to

 

 

Previously

Reporting

Commercial

RBS

 

 

reported

changes (1)

Banking

International

 

Income statement

£m

£m

£m

£m

 

 

 

 

 

 

 

Net interest income

521 

- 

475 

46 

 

Non-interest income

310 

- 

296 

14 

 

 

 

 

 

 

 

Total income

831 

- 

771 

60 

 

 

 

 

 

 

 

Direct expenses

 

 

 

 

 

  - staff

(118)

- 

(113)

(5)

 

  - other

(35)

- 

(33)

(2)

 

  - operating lease costs

(38)

- 

(38)

- 

 

Indirect expenses

(284)

- 

(272)

(12)

 

Restructuring costs

 

 

 

 

 

  - direct

- 

- 

(1)

1 

 

  - indirect

(13)

- 

(12)

(1)

 

Litigation and conduct costs

(62)

- 

(62)

- 

 

 

 

 

 

 

 

Operating expenses

(550)

- 

(531)

(19)

 

 

 

 

 

 

 

Operating profit before impairment losses

281 

- 

240 

41 

 

Impairment losses

(33)

- 

(31)

(2)

 

 

 

 

 

 

 

Operating profit

248 

- 

209 

39 

 

 

 

 

 

 

 

Memo:

 

 

 

 

 

Operating expenses - adjusted (2)

(475)

- 

(456)

(19)

 

Operating profit - adjusted (2)

323 

- 

284 

39 

 

 

 

 

 

 

 

Key metrics

 

 

 

 

 

 

 

 

 

 

 

Net interest margin

nm

 

1.96%

1.45%

 

Net interest margin excluding central IEAs

2.77%

 

2.68%

4.16%

 

Cost:income ratio

66%

 

69%

32%

 

Cost:income ratio - adjusted (2)

57%

 

59%

32%

 

 

 

 

 

 

 

31 December 2014

 

 

 

Allocated to

 

Previously

Reporting

Commercial

RBS

 

reported

changes (1)

Banking

International

Capital and balance sheet

£bn

£bn

£bn

£bn

 

 

 

 

 

Loans and advances to customers (gross)

86.1 

- 

81.4 

4.7 

Loan impairment provisions

(1.0)

- 

(0.9)

(0.1)

 

 

 

 

 

Net loans and advances to customers

85.1 

- 

80.5 

4.6 

Funded assets

89.4 

47.8 

117.0 

20.2 

Risk elements in lending

2.5 

- 

2.4 

0.1 

Customer deposits (excluding repos)

86.8 

- 

72.5 

14.3 

Loan:deposit ratio (excluding repos)

98%

- 

111%

32%

Provision coverage (3)

38%

- 

39%

41%

Risk-weighted assets

64.0 

3.5 

61.2 

6.3 
             

 

Notes:

(1)

Refer to page 2 for further details.

(2)

Excluding restructuring costs and litigation and conduct costs.

(3)

Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.

 


Commercial Banking

 

 

 

 

 

 

 

Year ended 31 December 2014

 

 

 

 

Allocated to

 

 

Previously

Reporting

Commercial

RBS

 

 

reported

changes (1)

Banking

International

 

Income statement

£m

£m

£m

£m

 

 

 

 

 

 

 

Net interest income

2,041 

- 

1,865 

176 

 

Non-interest income

1,169 

- 

1,117 

52 

 

 

 

 

 

 

 

Total income

3,210 

- 

2,982 

228 

 

 

 

 

 

 

 

Direct expenses

 

 

 

 

 

  - staff

(508)

- 

(489)

(19)

 

  - other

(108)

- 

(98)

(10)

 

  - operating lease costs

(141)

- 

(141)

- 

 

Indirect expenses

(882)

- 

(835)

(47)

 

Restructuring costs

 

 

 

 

 

  - direct

(40)

- 

(41)

1 

 

  - indirect

(53)

- 

(52)

(1)

 

Litigation and conduct costs

(112)

- 

(112)

- 

 

 

 

 

 

 

 

Operating expenses

(1,844)

- 

(1,768)

(76)

 

 

 

 

 

 

 

Operating profit before impairment (losses)/releases

1,366 

- 

1,214 

152 

 

Impairment (losses)/releases

(76)

- 

(84)

8 

 

 

 

 

 

 

 

Operating profit

1,290 

- 

1,130 

160 

 

 

 

 

 

 

 

Memo:

 

 

 

 

 

Operating expenses - adjusted (2)

(1,639)

- 

(1,563)

(76)

 

Operating profit - adjusted (2)

1,495 

- 

1,335 

160 

 

 

 

 

 

 

 

Key metrics

 

 

 

 

 

 

 

 

 

 

 

Net interest margin

nm

 

1.93%

1.42%

 

Net interest margin excluding central IEAs

2.74%

 

2.65%

4.18%

 

Cost:income ratio

57%

 

59%

33%

 

Cost:income ratio - adjusted (2)

51%

 

52%

33%

 

 

 

 

 

 

 

31 December 2014

 

 

 

Allocated to

 

Previously

Reporting

Commercial

RBS

 

reported

changes (1)

Banking

International

Capital and balance sheet

£bn

£bn

£bn

£bn

 

 

 

 

 

Loans and advances to customers (gross)

86.1 

- 

81.4 

4.7 

Loan impairment provisions

(1.0)

- 

(0.9)

(0.1)

 

 

 

 

 

Net loans and advances to customers

85.1 

- 

80.5 

4.6 

Funded assets

89.4 

47.8 

117.0 

20.2 

Risk elements in lending

2.5 

- 

2.4 

0.1 

Customer deposits (excluding repos)

86.8 

- 

72.5 

14.3 

Loan:deposit ratio (excluding repos)

98%

- 

111%

32%

Provision coverage (3)

38%

- 

38%

41%

Risk-weighted assets

64.0 

3.5 

61.2 

6.3 
             

 

Notes:

(1)

Refer to page 2 for further details.

(2)

Excluding restructuring costs and litigation and conduct costs.

(3)

Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.

 

 

Private Banking

 

 

 

 

 

 

 

Quarter ended 30 September 2015

 

 

 

Allocated to

 

Previously

Reporting

Private

RBS

Central items

 

reported

changes (1)

Banking

International

& other

Income statement

£m

£m

£m

£m

£m

 

 

 

 

 

 

Net interest income

123 

2 

109 

- 

16 

Non-interest income

81 

- 

51 

- 

30 

 

 

 

 

 

 

Total income

204 

2 

160 

- 

46 

 

 

 

 

 

 

Direct expenses

 

 

 

 

 

  - staff

(66)

- 

(43)

- 

(23)

  - other

(23)

- 

(11)

- 

(12)

Indirect expenses

(95)

- 

(65)

- 

(30)

Restructuring costs

 

 

 

 

 

  - direct

2 

- 

2 

- 

- 

  - indirect

(3)

- 

(1)

- 

(2)

 

 

 

 

 

 

Operating expenses

(185)

- 

(118)

- 

(67)

 

 

 

 

 

 

Operating profit/(loss) before impairment losses

19 

2 

42 

- 

(21)

Impairment losses

(4)

- 

(4)

- 

- 

 

 

 

 

 

 

Operating profit/(loss)

15 

2 

38 

- 

(21)

 

 

 

 

 

 

Memo:

 

 

 

 

 

Operating expenses - adjusted (2)

(184)

- 

(119)

- 

(65)

Operating profit/(loss) - adjusted (2)

16 

37 

- 

(19)

 

 

 

 

 

 

Key metrics

 

 

 

 

 

 

 

 

 

 

 

Net interest margin

nm

 

2.72%

- 

1.40%

Net interest margin excluding central IEAs

3.14%

 

3.92%

- 

1.40%

Cost:income ratio

91%

 

74%

- 

146%

Cost:income ratio - adjusted (2)

90%

 

74%

- 

141%

 

 

 

 

 

 

 

 

30 September 2015

 

 

 

 

Allocated to

 

 

Previously

Reporting

Private

RBS

Central items

 

 

reported

changes (1)

Banking

International

& other

 

Capital and balance sheet

£bn

£bn

£bn

£bn

£bn

 

 

 

 

 

 

 

 

Loans and advances to customers (gross)

13.6 

- 

11.1 

- 

2.5 

 

Loan impairment provisions

(0.1)

- 

- 

- 

(0.1)

 

 

 

 

 

 

 

 

Net loans and advances to customers

13.5 

- 

11.1 

- 

2.4 

 

Funded assets

16.7 

5.3 

17.4 

- 

4.6 

 

Risk elements in lending

0.1 

- 

0.1 

- 

- 

 

Customer deposits (excluding repos)

29.1 

- 

22.7 

- 

6.4 

 

Loan:deposit ratio (excluding repos)

46%

- 

49%

- 

38%

 

Provision coverage (3)

44%

- 

32%

- 

100%

 

Risk-weighted assets

9.8 

0.3 

8.4 

- 

1.7 

 
                 

 

Notes:

(1)

Refer to page 2 for further details.

(2)

Excluding restructuring costs and litigation and conduct costs.

(3)

Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.

 


Private Banking

 

 

 

 

 

 

 

 

Quarter ended 31 December 2014

 

 

 

 

Allocated to

 

 

Previously

Reporting

Private

RBS

Central items

 

 

reported

changes (1)

Banking

International

& other

 

Income statement

£m

£m

£m

£m

£m

 

 

 

 

 

 

 

 

Net interest income

175 

- 

116 

37 

22 

 

Non-interest income

92 

- 

54 

4 

34 

 

 

 

 

 

 

 

 

Total income

267 

- 

170 

41 

56 

 

 

 

 

 

 

 

 

Direct expenses

 

 

 

 

 

 

  - staff

(75)

- 

(44)

(6)

(25)

 

  - other

(21)

- 

(12)

- 

(9)

 

Indirect expenses

(132)

- 

(90)

(11)

(31)

 

Restructuring costs

 

 

 

 

 

 

  - direct

(6)

- 

(1)

(1)

(4)

 

  - indirect

(2)

- 

- 

(1)

(1)

 

Litigation and conduct costs

(90)

- 

(90)

- 

- 

 

 

 

 

 

 

 

 

Operating expenses

(326)

- 

(237)

(19)

(70)

 

 

 

 

 

 

 

 

Operating (loss)/profit before impairment

 

 

 

 

 

 

 releases/(losses)

(59)

- 

(67)

22 

(14)

 

Impairment releases/(losses)

- 

- 

1 

(1)

- 

 

 

 

 

 

 

 

 

Operating (loss)/profit

(59)

- 

(66)

21 

(14)

 

 

 

 

 

 

 

 

Memo:

 

 

 

 

 

 

Operating expenses - adjusted (2)

(228)

- 

(146)

(17)

(65)

 

Operating profit/(loss) - adjusted (2)

39 

- 

25 

23 

(9)

 

 

 

 

 

 

 

 

Key metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin

nm

 

2.91%

2.07%

1.74%

 

Net interest margin excluding central IEAs

3.74%

 

4.17%

5.79%

1.74%

 

Cost:income ratio

122%

 

139%

46%

125%

 

Cost:income ratio - adjusted (2)

85%

 

86%

41%

116%

 

 

 

 

 

 

 

 

31 December 2014

 

 

 

Allocated to

 

Previously

Reporting

Private

RBS

Central items

 

reported

changes (1)

Banking

International

& other

Capital and balance sheet

£bn

£bn

£bn

£bn

£bn

 

 

 

 

 

 

Loans and advances to customers (gross)

16.6 

- 

11.0 

2.6 

3.0 

Loan impairment provisions

(0.1)

- 

- 

- 

(0.1)

 

 

 

 

 

 

Net loans and advances to customers

16.5 

- 

11.0 

2.6 

2.9 

Funded assets

20.4 

6.0 

17.7 

3.2 

5.5 

Risk elements in lending

0.2 

- 

0.1 

0.1 

- 

Customer deposits (excluding repos)

36.1 

- 

22.3 

6.5 

7.3 

Loan:deposit ratio (excluding repos)

46%

- 

49%

40%

41%

Provision coverage (3)

34%

- 

25%

30%

100%

Risk-weighted assets

11.5 

0.6 

8.7 

1.2 

2.2 

 

Notes:

(1)

Refer to page 2 for further details.

(2)

Excluding restructuring costs and litigation and conduct costs.

(3)

Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.

 


Private Banking

 

 

 

 

 

 

 

Year ended 31 December 2014

 

 

 

Allocated to

 

Previously

Reporting

Private

RBS

Central items

 

reported

changes (1)

Banking

International

& other

Income statement

£m

£m

£m

£m

£m

 

 

 

 

 

 

Net interest income

691 

- 

454 

147 

90 

Non-interest income

391 

- 

235 

16 

140 

 

 

 

 

 

 

Total income

1,082 

- 

689 

163 

230 

 

 

 

 

 

 

Direct expenses

 

 

 

 

 

  - staff

(302)

- 

(178)

(25)

(99)

  - other

(68)

- 

(37)

(5)

(26)

Indirect expenses

(458)

- 

(289)

(47)

(122)

Restructuring costs

 

 

 

 

 

  - direct

(8)

- 

(1)

(3)

(4)

  - indirect

(10)

- 

- 

(4)

(6)

Litigation and conduct costs

(90)

- 

(90)

- 

- 

 

 

 

 

 

 

Operating expenses

(936)

- 

(595)

(84)

(257)

 

 

 

 

 

 

Operating profit/(loss) before impairment

 

 

 

 

 

 releases/(losses)

146 

- 

94 

79 

(27)

Impairment releases/(losses)

4 

- 

5 

(1)

- 

 

 

 

 

 

 

Operating profit/(loss)

150 

- 

99 

78 

(27)

 

 

 

 

 

 

Memo:

 

 

 

 

 

Operating expenses - adjusted (2)

(828)

- 

(504)

(77)

(247)

Operating profit/(loss) - adjusted (2)

258 

- 

190 

85 

(17)

 

 

 

 

 

 

Key metrics

 

 

 

 

 

 

 

 

 

 

 

Net interest margin

nm

 

2.89%

2.20%

1.75%

Net interest margin excluding central IEAs

3.71%

 

4.12%

5.94%

1.75%

Cost:income ratio

87%

 

86%

52%

112%

Cost:income ratio - adjusted (2)

77%

 

73%

47%

107%

 

 

 

 

 

 

 

 

31 December 2014

 

 

 

 

Allocated to

 

 

Previously

Reporting

Private

RBS

Central items

 

 

reported

changes (1)

Banking

International

& other

 

Capital and balance sheet

£bn

£bn

£bn

£bn

£bn

 

 

 

 

 

 

 

 

Loans and advances to customers (gross)

16.6 

- 

11.0 

2.6 

3.0 

 

Loan impairment provisions

(0.1)

- 

- 

- 

(0.1)

 

 

 

 

 

 

 

 

Net loans and advances to customers

16.5 

- 

11.0 

2.6 

2.9 

 

Funded assets

20.4 

6.0 

17.7 

3.2 

5.5 

 

Risk elements in lending

0.2 

- 

0.1 

0.1 

- 

 

Customer deposits (excluding repos)

36.1 

- 

22.3 

6.5 

7.3 

 

Loan:deposit ratio (excluding repos)

46%

- 

49%

40%

41%

 

Provision coverage (3)

34%

- 

25%

30%

100%

 

Risk-weighted assets

11.5 

0.6 

8.7 

1.2 

2.2 

 
                     

 

Notes:

(1)

Refer to page 2 for further details.

(2)

Excluding restructuring costs and litigation and conduct costs.

(3)

Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.

 

CIB

 

 

 

 

 

 

 

Quarter ended 30 September 2015

 

 

 

Allocated to

 

Previously

Reporting

Commercial

 

Capital

 

reported

changes (1)

Banking

CIB

Resolution

Income statement

£m

£m

£m

£m

£m

 

 

 

 

 

 

Net interest income

142 

14 

33 

29 

94 

Non-interest income

295 

- 

45 

299 

(49)

Own credit adjustments

- 

116 

- 

78 

38 

 

 

 

 

 

 

Total income

437 

130 

78 

406 

83 

 

 

 

 

 

 

Direct expenses

 

 

 

 

 

  - staff

(139)

- 

(4)

(97)

(38)

  - other

(60)

- 

(1)

(19)

(40)

Indirect expenses

(510)

- 

(38)

(242)

(230)

Restructuring costs

 

 

 

 

 

  - direct

(193)

- 

- 

(3)

(190)

  - indirect

(444)

- 

- 

(148)

(296)

Litigation and conduct costs

(107)

- 

- 

(6)

(101)

 

 

 

 

 

 

Operating expenses

(1,453)

- 

(43)

(515)

(895)

 

 

 

 

 

 

Operating (loss)/profit before impairment releases

(1,016)

130 

35 

(109)

(812)

Impairment releases

4 

- 

- 

- 

4 

 

 

 

 

 

 

Operating (loss)/profit

(1,012)

130 

35 

(109)

(808)

 

 

 

 

 

 

Memo:

 

 

 

 

 

Total income - adjusted (2)

437 

14 

78 

328 

45 

Operating expenses - adjusted (3)

(709)

- 

(43)

(358)

(308)

Operating (loss)/profit - adjusted (2,3)

(268)

14 

35 

(30)

(259)

 

 

 

 

 

 

Key metrics

 

 

 

 

 

 

 

 

 

 

 

Net interest margin

nm

 

2.22%

0.62%

0.93%

Net interest margin excluding central IEAs

1.16%

 

9.02%

0.78%

1.14%

Cost:income ratio

332%

 

55%

127%

nm

Cost:income ratio - adjusted (2,3)

162%

 

55%

109%

nm

 

 

 

 

 

 

 

 

30 September 2015

 

 

 

 

Allocated to

 

 

Previously

Reporting

Commercial

 

Capital

 

 

reported

changes (1)

Banking

CIB

Resolution

 

Capital and balance sheet

£bn

£bn

£bn

£bn

£bn

 

 

 

 

 

 

 

 

Loans and advances to customers (gross)

50.9 

- 

4.5 

19.8 

26.6 

 

Loan impairment provisions

(0.1)

- 

- 

- 

(0.1)

 

 

 

 

 

 

 

 

Net loans and advances to customers

50.8 

- 

4.5 

19.8 

26.5 

 

Funded assets

177.4 

17.5 

10.6 

125.9 

58.4 

 

Risk elements in lending

0.2 

- 

- 

- 

0.2 

 

Customer deposits (excluding repos)

47.8 

- 

12.8 

5.9 

29.1 

 

Loan:deposit ratio (excluding repos)

106%

- 

35%

337%

91%

 

Provision coverage (4)

65%

- 

- 

- 

63%

 

Risk-weighted assets

78.0 

3.1 

1.9 

38.8 

40.4 

 
                     

 

Notes:

(1)

Refer to page 2 for further details.

(2)

Excluding own credit adjustments.

(3)

Excluding restructuring costs and litigation and conduct costs.

(4)

Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.

 


CIB

 

 

 

 

 

 

 

Quarter ended 31 December 2014

 

 

 

Allocated to

 

Previously

Reporting

Commercial

 

Capital

 

reported

changes (1)

Banking

CIB

Resolution

Income statement

£m

£m

£m

£m

£m

 

 

 

 

 

 

Net interest income

222 

- 

31 

8 

183 

Non-interest income

469 

- 

47 

248 

174 

Own credit adjustments

- 

(83)

- 

(33)

(50)

 

 

 

 

 

 

Total income

691 

(83)

78 

223 

307 

 

 

 

 

 

 

Direct expenses

 

 

 

 

 

  - staff

(63)

- 

(2)

(36)

(25)

  - other

(100)

- 

(2)

(47)

(51)

Indirect expenses

(659)

- 

(47)

(293)

(319)

Restructuring costs

 

 

 

 

 

  - direct

(49)

- 

- 

(3)

(46)

  - indirect

(39)

- 

(4)

(16)

(19)

Litigation and conduct costs

(382)

- 

- 

(370)

(12)

 

 

 

 

 

 

Operating expenses

(1,292)

- 

(55)

(765)

(472)

 

 

 

 

 

 

Operating (loss)/profit before impairment

 

 

 

 

 

 (losses)/releases

(601)

(83)

23 

(542)

(165)

Impairment (losses)/releases

(42)

- 

(1)

6 

(47)

 

 

 

 

 

 

Operating (loss)/profit

(643)

(83)

22 

(536)

(212)

 

 

 

 

 

 

Memo:

 

 

 

 

 

Total income - adjusted (2)

691 

- 

78 

256 

357 

Operating expenses - adjusted (3)

(822)

- 

(51)

(376)

(395)

Operating (loss)/profit - adjusted (2,3)

(173)

- 

26 

(114)

(85)

 

 

 

 

 

 

Key metrics

 

 

 

 

 

 

 

 

 

 

 

Net interest margin

nm

 

2.00%

0.21%

1.13%

Net interest margin excluding central IEAs

1.11%

 

6.88%

0.16%

1.25%

Cost:income ratio

187%

 

71%

343%

nm

Cost:income ratio - adjusted (2,3)

119%

 

65%

147%

nm

 

 

 

 

 

 

 

 

31 December 2014

 

 

 

 

Allocated to

 

 

Previously

Reporting

Commercial

 

Capital

 

 

reported

changes (1)

Banking

CIB

Resolution

 

Capital and balance sheet

£bn

£bn

£bn

£bn

£bn

 

 

 

 

 

 

 

 

Loans and advances to customers (gross)

73.0 

- 

4.4 

26.5 

42.1 

 

Loan impairment provisions

(0.2)

- 

- 

- 

(0.2)

 

 

 

 

 

 

 

 

Net loans and advances to customers

72.8 

- 

4.4 

26.5 

41.9 

 

Funded assets

241.1 

7.2 

10.9 

137.7 

99.7 

 

Risk elements in lending

0.2 

- 

- 

- 

0.2 

 

Customer deposits (excluding repos)

59.4 

- 

12.4 

11.8 

35.2 

 

Loan:deposit ratio (excluding repos)

122%

- 

35%

226%

119%

 

Provision coverage (4)

105%

- 

- 

- 

96%

 

Risk-weighted assets

107.1 

3.8 

2.0 

41.9 

67.0 

 
                     

 

Notes:

(1)

Refer to page 2 for further details.

(2)

Excluding own credit adjustments.

(3)

Excluding restructuring costs and litigation and conduct costs.

(4)

Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.

 

 

 


CIB

 

 

 

 

 

 

 

Year end 31 December 2014

 

 

 

Allocated to

 

Previously

Reporting

Commercial

 

Capital

 

reported

changes (1)

Banking

CIB

Resolution

Income statement

£m

£m

£m

£m

£m

 

 

 

 

 

 

Net interest income

817 

- 

111 

(11)

717 

Non-interest income

3,132 

- 

212 

1,951 

969 

Own credit adjustments

- 

(23)

- 

(9)

(14)

 

 

 

 

 

 

Total income

3,949 

(23)

323 

1,931 

1,672 

 

 

 

 

 

 

Direct expenses

 

 

 

 

 

  - staff

(729)

- 

(6)

(446)

(277)

  - other

(400)

- 

(2)

(190)

(208)

Indirect expenses

(2,432)

- 

(173)

(1,080)

(1,179)

Restructuring costs

 

 

 

 

 

  - direct

(93)

- 

- 

(13)

(80)

  - indirect

(202)

- 

(15)

(89)

(98)

Litigation and conduct costs

(994)

- 

- 

(832)

(162)

Write-down of goodwill

- 

(130)

- 

- 

(130)

 

 

 

 

 

 

Operating expenses

(4,850)

(130)

(196)

(2,650)

(2,134)

 

 

 

 

 

 

Operating (loss)/profit before impairment

 

 

 

 

 

  releases/(losses)

(901)

(153)

127 

(719)

(462)

Impairment releases/(losses)

9 

- 

(1)

9 

1 

 

 

 

 

 

 

Operating (loss)/profit

(892)

(153)

126 

(710)

(461)

 

 

 

 

 

 

Memo:

 

 

 

 

 

Total income - adjusted (2)

3,949 

- 

323 

1,940 

1,686 

Operating expenses - adjusted (3)

(3,561)

- 

(181)

(1,716)

(1,664)

Operating profit - adjusted (2,3)

397 

- 

141 

233 

23 

 

 

 

 

 

 

Key metrics

 

 

 

 

 

 

 

 

 

 

 

Net interest margin

nm

 

- 

(0.07%)

1.05%

Net interest margin excluding central IEAs

0.99%

 

5.92%

(0.06%)

1.16%

Cost:income ratio

123%

 

61%

137%

nm

Cost:income ratio - adjusted (2,3)

90%

 

56%

88%

nm

 

 

 

 

 

 

 

 

31 December 2014

 

 

 

 

Allocated to

 

 

Previously

Reporting

Commercial

 

Capital

 

 

reported

changes (1)

Banking

CIB

Resolution

 

Capital and balance sheet

£bn

£bn

£bn

£bn

£bn

 

 

 

 

 

 

 

 

Loans and advances to customers (gross)

73.0 

- 

4.4 

26.5 

42.1 

 

Loan impairment provisions

(0.2)

- 

- 

- 

(0.2)

 

 

 

 

 

 

 

 

Net loans and advances to customers

72.8 

- 

4.4 

26.5 

41.9 

 

Funded assets

241.1 

7.2 

10.9 

137.7 

99.7 

 

Risk elements in lending

0.2 

- 

- 

- 

0.2 

 

Customer deposits (excluding repos)

59.4 

- 

12.4 

11.8 

35.2 

 

Loan:deposit ratio (excluding repos)

122%

- 

35%

226%

119%

 

Provision coverage (4)

105%

- 

- 

- 

96%

 

Risk-weighted assets

107.1 

3.8 

2.0 

41.9 

67.0 

 
                     

 

Notes:

(1)

Refer to page 2 for further details.

(2)

Excluding own credit adjustments.

(3)

Excluding restructuring costs and litigation and conduct costs.

(4)

Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.

 

RCR

 

 

 

 

 

Quarter ended 30 September 2015

 

 

 

Allocated to

 

Previously

Reporting

Capital

 

reported

changes (1)

Resolution

Income statement

£m

£m

£m

 

 

 

 

Net interest income

(17)

- 

(17)

Non-interest income

(3)

- 

(3)

 

 

 

 

Total income

(20)

- 

(20)

 

 

 

 

Direct expenses

 

 

 

  - staff

(22)

- 

(22)

  - other

(1)

- 

(1)

Indirect expenses

(15)

- 

(15)

Restructuring costs

 

 

 

  - indirect

(4)

- 

(4)

 

 

 

 

Operating expenses

(42)

- 

(42)

 

 

 

 

Operating loss before impairment releases

(62)

- 

(62)

Impairment releases

46 

- 

46 

 

 

 

 

Operating loss

(16)

- 

(16)

 

 

 

 

Memo:

 

 

 

Operating expenses - adjusted (2)

(38)

- 

(38)

Operating loss - adjusted (2)

(12)

- 

(12)

 

 

 

 

 

30 September 2015

 

 

 

Allocated to

 

Previously

Reporting

Capital

 

reported

changes (1)

Resolution

Capital and balance sheet

£bn

£bn

£bn

 

 

 

 

Loans and advances to customers (gross)

8.2 

- 

8.2 

Loan impairment provisions

(3.9)

- 

(3.9)

 

 

 

 

Net loans and advances to customers

4.3 

- 

4.3 

Funded assets

6.5 

- 

6.5 

Risk elements in lending

5.1 

- 

5.1 

Customer deposits (excluding repos)

0.9 

- 

0.9 

Provision coverage (3)

76%

- 

76%

Risk-weighted assets

12.4 

- 

12.4 

 

Notes:

(1)

Refer to page 2 for further details.

(2)

Excluding restructuring costs.

(3)

Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.

 


RCR

 

 

 

 

 

Quarter ended 31 December 2014

 

 

 

Allocated to

 

Previously

Reporting

Capital

 

reported

changes (1)

Resolution

Income statement

£m

£m

£m

 

 

 

 

Net interest income

(23)

- 

(23)

Non-interest income

(162)

- 

(162)

 

 

 

 

Total income

(185)

- 

(185)

 

 

 

 

Direct expenses

 

 

 

  - staff

(41)

- 

(41)

  - other

(29)

- 

(29)

Indirect expenses

(25)

- 

(25)

Restructuring costs

 

 

 

  - indirect

(3)

- 

(3)

 

 

 

 

Operating expenses

(98)

- 

(98)

 

 

 

 

Operating loss before impairment releases

(283)

- 

(283)

Impairment releases

681 

- 

681 

 

 

 

 

Operating profit

398 

- 

398 

 

 

 

 

Memo:

 

 

 

Operating expenses - adjusted (2)

(95)

- 

(95)

Operating profit - adjusted (2)

401 

- 

401 

 

 

 

 

 

31 December 2014

 

 

 

Allocated to

 

Previously

Reporting

Capital

 

reported

changes (1)

Resolution

Capital and balance sheet

£bn

£bn

£bn

 

 

 

 

Loans and advances to customers (gross)

21.9 

- 

21.9 

Loan impairment provisions

(10.9)

- 

(10.9)

 

 

 

 

Net loans and advances to customers

11.0 

- 

11.0 

Funded assets

14.9 

- 

14.9 

Risk elements in lending

15.4 

- 

15.4 

Customer deposits (excluding repos)

1.2 

- 

1.2 

Provision coverage (3)

71%

- 

71%

Risk-weighted assets

22.0 

- 

22.0 

 

Notes:

(1)

Refer to page 2 for further details.

(2)

Excluding restructuring costs.

(3)

Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.

 


RCR

 

 

 

 

 

Year ended 31 December 2014

 

 

 

Allocated to

 

Previously

Reporting

Capital

 

reported

changes (1)

Resolution

Income statement

£m

£m

£m

 

 

 

 

Net interest income

(47)

- 

(47)

Non-interest income

92 

- 

92 

Own credit adjustments

- 

(22)

(22)

 

 

 

 

Total income

45 

(22)

23 

 

 

 

 

Direct expenses

 

 

 

  - staff

(167)

- 

(167)

  - other

(85)

- 

(85)

Indirect expenses

(104)

- 

(104)

Restructuring costs

 

 

 

  - indirect

(7)

- 

(7)

 

 

 

 

Operating expenses

(363)

- 

(363)

 

 

 

 

Operating loss before impairment releases

(318)

(22)

(340)

Impairment releases

1,306 

- 

1,306 

 

 

 

 

Operating profit

988 

(22)

966 

 

 

 

 

Memo:

 

 

 

Total income - adjusted (2)

45 

- 

45 

Operating expenses - adjusted (3)

(356)

- 

(356)

Operating profit - adjusted (2,3)

995 

- 

995 

 

 

 

 

 

31 December 2014

 

 

 

Allocated to

 

Previously

Reporting

Capital

 

reported

changes (1)

Resolution

Capital and balance sheet

£bn

£bn

£bn

 

 

 

 

Loans and advances to customers (gross)

21.9 

- 

21.9 

Loan impairment provisions

(10.9)

- 

(10.9)

 

 

 

 

Net loans and advances to customers

11.0 

- 

11.0 

Funded assets

14.9 

- 

14.9 

Risk elements in lending

15.4 

- 

15.4 

Customer deposits (excluding repos)

1.2 

- 

1.2 

Provision coverage (4)

71%

- 

71%

Risk-weighted assets

22.0 

- 

22.0 

 

Notes:

(1)

Refer to page 2 for further details.

(2)

Excluding own credit adjustments.

(3)

Excluding restructuring costs.

(4)

Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.

 

 

Central items & other

 

Income statement

 

 

Impact of

 

 

 

 

 

Pension

revised

Re-presentation

Allocated to

 

Previously

accounting

treasury

of one-off and

 

Capital

 

reported

policy impact

allocations

other items (1)

Centre (2)

Resolution

Quarter ended 30 September 2015

£m

£m

£m

£m

£m

£m

 

 

 

 

 

 

 

Central items not allocated

(285)

(16)

(10)

20 

(317)

26 

 

 

 

 

 

 

 

Quarter ended 31 December 2014

 

 

 

 

 

 

 

 

 

 

 

 

 

Central items not allocated

(620)

 

(6)

(50)

(703)

27 

 

 

 

 

 

 

 

Year ended 31 December 2014

 

 

 

 

 

 

 

 

 

 

 

 

 

Central items not allocated

(860)

 

(33)

86 

(904)

97 

 

 

 

 

 

 

 

 

Balance sheet

 

 

 

 

 

 

 

 

Impact of

 

 

 

 

Pension

revised

Allocated to

 

Previously

accounting

treasury

 

Capital

 

reported

policy impact

allocations

Centre (2)

Resolution

As at 30 September 2015

£bn

£bn

£bn

£bn

£bn

 

 

 

 

 

 

Central items not allocated - risk-weighted assets

87.7 

 

(8.7)

72.1 

6.9 

 

 

 

 

 

 

Central items not allocated - funded assets

116.9 

0.4 

(89.5)

26.7 

1.1 

 

 

 

 

 

 

As at 31 December 2014

 

 

 

 

 

 

 

 

 

 

 

Central items not allocated - risk-weighted assets

84.7 

 

(9.8)

68.8 

6.1 

 

 

 

 

 

 

Central items not allocated - funded assets

169.2 

0.3 

(83.1)

85.4 

1.0 

 

 

 

 

 

 

 

Notes:

(1)

Refer to page 2 for further details.

(2)

Centre includes unallocated costs.

 


This information is provided by RNS
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