Restatement Document

RNS Number : 8278M
Royal Bank of Scotland Group PLC
21 July 2014
 



 

 

Restatement Document
Q2 2014


 

Contents

 

Page 



Introduction

1

Customer franchises

4



Appendix 1 Consolidated income statement




Consolidated income statement reconciliations

13



Appendix 2 Components of customer franchises




Introduction

18

Personal & Business Banking

21

Commercial & Private Banking

25

Corporate & Institutional Banking

29

Central items

33



Appendix 3 Allocation of previous divisions to new customer franchises




Introduction

35

UK Retail

36

UK Corporate

40

Wealth

44

International Banking

48

Ulster Bank

52

Citizens Financial Group

56

Markets

64

Non-Core

68

4

 

 

 

  

 

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. The forward-looking statements contained in this document speak only as of the date of this announcement, and RBS does not undertake 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")

 

Divisional Reorganisation and Reporting Changes

 

This announcement provides further details of the changes to the RBS structure announced in February 2014 and includes restated financial results for the year ended 31 December 2013 on the basis of the new segments. To aid comparison of RBS's second quarter 2014 results with prior periods, restated financial information for the periods ended 31 March 2014 and 30 June 2013 is also contained within.

 

While these restatements affect the segmental results, they do not affect RBS's overall statutory income statement, balance sheet, other primary statements or regulatory capital measures.

 

Divisional Reorganisation

 

Organisational change

On 27 February 2014, RBS announced a refreshed strategic direction with the ambition of building a bank which earns its customers' trust by serving them better than any other bank.

 

Business structure

RBS is now structured to deliver this ambition by organising itself around the needs of its customers, so as to combine customer groups with similar needs into franchises able to deliver co-ordinated services.

 

The reorganised bank will be a UK-focused retail and corporate bank with an international footprint to drive its corporate business. The previously reported operating divisions are now realigned into three franchises:

 

·

Personal & Business Banking (PBB) serves individual and mass affluent customers together with small businesses (generally up to £2 million turnover), with more business bankers moving back into branches. PBB comprises two reportable segments, UK Personal & Business Banking, including Williams & Glyn, (UK PBB) and Ulster Bank.



·

Commercial & Private Banking (CPB) serves commercial and mid-corporate customers and high net worth individuals, deepening relationships with commercial clients, operating overseas through its market-leading trade and foreign exchange services, while connecting our private banking brands more effectively to successful business owners and entrepreneurs. CPB comprises two reportable segments, Commercial Banking and Private Banking.



·

Corporate & Institutional Banking (CIB) serves our corporate and institutional clients primarily in the UK and Western Europe, as well as those US and Asian multinationals with substantial trade and investment links in the region, with debt financing, risk management and trade services, focusing on core product capabilities that are of most relevance to our clients. CIB is a single reportable segment.

 

In addition to the segments noted above, RBS will continue to manage and report Citizens Financial Group (CFG) and RBS Capital Resolution (RCR) separately until disposal or wind-down. Residual unallocated costs will continue to be reported within Central items.

 

RBS's first quarter 2014 results announcement provided details of transfers between Non-Core, the divisions and RCR which were effective 1 January 2014; no restatements were made in respect of these transfers. The realignment of previously reported operating divisions into three franchises does not impact RCR.

 

In the new reporting structure, US Retail & Commercial (US R&C) is now referred to as CFG and Wealth is now referred to as Private Banking.

The Royal Bank of Scotland Group plc ("RBS")

 

Reporting Changes

In order to present a more complete picture of funding, operational and business costs of the franchises and operating segments, the following reporting changes have been implemented:

 

One-off and other items

To improve the transparency of the operating performance of the reporting segments, a number of previously centrally reported items (Payment Protection Insurance costs, Interest Rate Hedging Products redress and related costs, regulatory and legal actions, Restructuring costs, amortisation of purchased intangible assets and bank levy) have now been allocated to the reporting segments. Only the following one-off and other items will be now reported as central items:

 

·

Own credit adjustments



·

Gain/(loss) on redemption of own debt



·

Write-down of goodwill



·

Strategic disposals



·

RFS Holdings minority interest

 

Revised allocation of costs

As part of its internal reorganisation, RBS has centralised all services and functions. The costs relating to Services and Functions previously reported as direct expenses in the divisions are now reallocated to businesses using appropriate drivers and reported as indirect expenses in the segmental income statements. 

 

The costs and drivers of functions and services will be discussed in RBS's second quarter 2014 results announcement.

 

Treasury allocations

The basis of allocation of Treasury costs has been amended to align the recovery of funding and hedging costs across RBS and for the transfer of certain assets and their associated costs out of Treasury.

 

Revised segmental return on equity

For the purposes of computing segmental return on equity, notional equity is calculated as a percentage of the monthly average of segmental risk-weighted assets (RWAs). Previously, notional equity was allocated at 10% of RWAs after capital deductions (RWAe). This has been revised to 12% of RWAs across all businesses.

 

Interim results 2014

RBS's results for the first half of 2014 will be announced on Friday 1 August 2014. These results will be reported on the new structure and reporting basis as described above.

 

In conjunction with this Q2 Restatement Document, a financial supplement showing restated financial information for the last nine quarters will be available at www.investors.rbs.com/restatement.

 

For further information please contact:

 

Richard O'Connor

Head of Investor Relations

+ 44 (0)20 7672 1758

 

Group Media Centre

+44 (0) 131 523 4205

Document roadmap

Pages 4 to 11 show the income statements, key metrics and balance sheets for the new customer franchises. These reflect the re-presentation of certain one-off and other items that were previously reported below operating profit and the impact of changes to the allocation of costs from Services and Functions.

 

Appendix 1 shows the adjustments to the consolidated income statement as previously reported to the new restated basis. This reflects the re-presentation of one-off and other items, including Restructuring costs and Litigation and conduct costs that were previously reported below operating profit. As discussed under 'Reporting Changes' on page 2, only a limited number of items are now shown below operating profit.

 

Operating results on a statutory basis are not affected by the changes described in this document. Reconciliations between the revised basis and the statutory basis are included on pages 13 to 16.

 

Appendix 2 summarises the performance of each of the new reportable segments and shows how the previously reported divisions have been allocated to the new reportable segments. These tables include more detailed key metrics (ROE, cost:income ratio) and balance sheet items.

 

Appendix 3 shows the adjustments to the previously reported divisional results to the new restated basis and shows how these divisions have been allocated to the new reportable segments. These tables include more detailed key metrics (cost:income ratio) and balance sheet items.


 

Customer franchises

 

Total RBS















Quarter ended 31 March 2014


PBB


CPB


CIB







Ulster



Commercial

Private




Central



Total


UK PBB

Bank

Total


Banking

Banking

Total



 items (1)

CFG

RCR

RBS


£m

£m

£m


£m

£m

£m


£m

£m

£m

£m

£m















Income statement (2)














Net interest income

1,124 

154 

1,278 


488 

170 

658 


179 

103 

488 

(8)

2,698 

Non-interest income

339 

47 

386 


282 

103 

385 


1,172 

102 

229 

81 

2,355 















Total income

1,463 

201 

1,664 


770 

273 

1,043 


1,351 

205 

717 

73 

5,053 















Direct expenses














  - staff

(225)

(63)

(288)


(133)

(80)

(213)


(272)

(585)

(251)

(38)

(1,647)

  - other

(130)

(17)

(147)


(63)

(18)

(81)


(113)

(1,024)

(249)

(18)

(1,632)

Indirect expenses

(520)

(63)

(583)


(212)

(101)

(313)


(588)

1,507 

- 

(23)

- 

Restructuring costs














  - direct

- 

- 

- 


- 

- 

- 


(15)

(114)

- 

- 

(129)

  - indirect

10 

(2)

8 


(1)

- 

(1)


(24)

17 

- 

- 

- 















Total expenses

(865)

(145)

(1,010)


(409)

(199)

(608)


(1,012)

(199)

(500)

(79)

(3,408)















Operating profit/(loss) before impairment losses

598 

56 

654 


361 

74 

435 


339 

6 

217 

(6)

1,645 

Impairment (losses)/recoveries

(88)

(47)

(135)


(40)

1 

(39)


(6)

(1)

(73)

(108)

(362)















Operating profit/(loss)

510 

9 

519 


321 

75 

396 


333 

5 

144 

(114)

1,283 















Memo:














Profit attributable to ordinary and B shareholders (4)













1,195 

Total expenses - adjusted (5)

(875)

(143)

(1,018)


(408)

(199)

(607)


(973)

(102)

(500)

(79)

(3,279)

Operating profit/(loss) - adjusted (5)

500 

11 

511 


322 

75 

397 


372 

102 

144 

(114)

1,412 

 

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

 

Customer franchises

 

Total RBS















Quarter ended 31 March 2014


PBB


CPB


CIB







Ulster



Commercial

Private




Central



Total

Key metrics

UK PBB

Bank

Total


Banking

Banking

Total



 items

CFG

RCR

RBS















Return on equity (6)

26.0%

0.9%

16.7%


12.6%

15.3%

13.1%


5.6%

nm

5.1%

(7.3%)

8.9% 

Return on equity - adjusted (5,6)

25.5%

1.1%

16.4%


12.7%

15.3%

13.1%


6.2%

nm

5.1%

(7.3%)

9.7% 

Net interest margin

3.61%

2.29%

3.37%


2.68%

3.70%

2.89%


0.85%

nm

2.94%

(0.08%)

2.12%

Cost:income ratio

59%

72%

61%


53%

73%

58%


75%

nm

70%

108%

67%

Cost:income ratio - adjusted (5)

60%

71%

61%


53%

73%

58%


72%

nm

70%

108%

65%

Loan impairment charge as a % of gross loans and advances

0.3%

0.7%

0.3%


0.2%

- 

0.2%


- 

nm

0.5%

1.2%

0.1%















Capital and balance sheet (7)

£bn

£bn

£bn


£bn

£bn

£bn


£bn

£bn

£bn

£bn

£bn















Loans and advances to customers (gross, excluding reverse repos)

128.4 

26.6 

155.0 


86.2 

16.8 

103.0 


70.7 

0.7 

53.2 

34.0 

416.6 

Loan impairment provisions

(2.9)

(3.4)

(6.3)


(1.3)

(0.1)

(1.4)


(0.2)

(0.1)

(0.5)

(15.7)

(24.2)















Net loans and advances to customers

125.5 

23.2 

148.7 


84.9 

16.7 

101.6 


70.5 

0.6 

52.7 

18.3 

392.4 

Total funded assets

132.8 

26.0 

158.8 


89.6 

21.1 

110.7 


286.6 

90.4 

75.7 

24.3 

746.5 

Risk elements in lending

4.5 

4.7 

9.2 


3.4 

0.3 

3.7 


0.1 

0.1 

1.3 

23.0 

37.4 

Customer deposits (excluding repos)

144.6 

21.1 

165.7 


87.6 

36.6 

124.2 


57.1 

1.0 

54.9 

1.5 

404.4 

Loan:deposit ratio (excluding repos)

87%

110%

90%


97%

45%

82%


123%

nm 

96%

nm

97%

Provision coverage (8)

65%

72%

68%


37%

45%

38%


199%

nm 

41%

68%

65%

Risk-weighted assets (Basel 3)

48.5 

28.7 

77.2 


63.5 

12.0 

75.5 


140.2 

19.6 

61.3 

40.5 

414.3 

 

nm = not meaningful

 

Notes:

(1)

Central items includes unallocated costs which principally comprise profits on the sale of the Treasury AFS portfolio (quarter ended 31 March 2014 - £203 million, year ended 31 December 2013 - £724 million, half year ended 30 June 2013 - £460 million and quarter ended 30 June 2013 - £105 million) and profit and loss on hedges that do not qualify for hedge accounting.

(2)

Excluding residual one-off and other items as discussed on page 2.  Items previously reported below operating profit including restructuring costs and litigation and conduct costs, are now allocated to the individual businesses and reflected in their results.

(3)

Litigation and conduct costs in 2013 mainly relate to: Payment Protection Insurance (PPI) in PPB; Interest Rate Hedging Products redress and related costs (IRHP) allocated 50% to CPB and 50% to CIB; and regulatory and legal actions principally relating to LIBOR and mortgage-backed securities in CIB.

(4)

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

(5)

Excluding restructuring costs and litigation and conduct costs.

(6)

Divisional return on equity is based on divisional operating profit after tax divided by average notional equity (based on 12% of the monthly average of divisional RWAs; previously - 10% of RWAe).

(7)

Includes disposal groups.

(8)

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


 

Customer franchises















Total RBS















Year ended 31 December 2013


PBB


CPB


CIB







Ulster



Commercial

Private




Central



Total


UK PBB

Bank

Total


Banking

Banking

Total



 items (1)

CFG

Non-Core

RBS


£m

£m

£m


£m

£m

£m


£m

£m

£m

£m

£m















Income statement (2)














Net interest income

4,490 

619 

5,109 


1,962 

658 

2,620 


684 

783 

1,892 

(96)

10,992 

Non-interest income

1,323 

240 

1,563 


1,195 

419 

1,614 


4,324 

126 

1,073 

(250)

8,450 















Total income

5,813 

859 

6,672 


3,157 

1,077 

4,234 


5,008 

909 

2,965 

(346)

19,442 















Direct expenses














  - staff

(933)

(239)

(1,172)


(515)

(318)

(833)


(984)

(2,612)

(1,091)

(190)

(6,882)

  - other

(524)

(63)

(587)


(272)

(83)

(355)


(690)

(4,308)

(986)

(202)

(7,128)

Indirect expenses

(1,949)

(263)

(2,212)


(886)

(475)

(1,361)


(2,893)

6,790 

(111)

(213)

- 

Restructuring costs














  - direct

(118)

(27)

(145)


(18)

(18)

(36)


(85)

(358)

(16)

(16)

(656)

  - indirect

(109)

(12)

(121)


(37)

(9)

(46)


(117)

290 

- 

(6)

- 

Litigation and conduct costs (3)

(860)

(90)

(950)


(247)

(206)

(453)


(2,441)

- 

- 

- 

(3,844)















Total expenses

(4,493)

(694)

(5,187)


(1,975)

(1,109)

(3,084)


(7,210)

(198)

(2,204)

(627)

(18,510)















Operating profit/(loss) before impairment losses

1,320 

165 

1,485 


1,182 

(32)

1,150 


(2,202)

711 

761 

(973)

932 

Impairment losses

(501)

(1,774)

(2,275)


(652)

(29)

(681)


(680)

(64)

(156)

(4,576)

(8,432)















Operating profit/(loss)

819 

(1,609)

(790)


530 

(61)

469 


(2,882)

647 

605 

(5,549)

(7,500)















Memo:














Loss attributable to ordinary and B shareholders (4)













(8,995)

Total expenses - adjusted (5)

(3,406)

(565)

(3,971)


(1,673)

(876)

(2,549)


(4,567)

(130)

(2,188)

(605)

(14,010)

Operating profit/(loss) - adjusted (5)

1,906 

(1,480)

426 


832 

172 

1,004 


(239)

715 

621 

(5,527)

(3,000)

Impairments pertaining to the creation of RCR

(2)

(892)

(894)


(123)

- 

(123)


(355)

- 

- 

(3,118)

(4,490)

 

For the notes to this table refer to page 5.

 

Customer franchises

 

Total RBS















Year ended 31 December 2013


PBB


CPB


CIB







Ulster



Commercial

Private




Central



Total

Key metrics

UK PBB

Bank

Total


Banking

Banking

Total



 items

CFG

Non-Core

RBS















Return on equity (6)

9.8%

(33.2%)

(5.7%)


4.9%

(3.1%)

3.7%


(12.9%)

nm

5.7%

(73.2%)

(14.5%) 

Return on equity - adjusted (5,6)

22.8%

(30.6%)

3.1%


7.7%

8.7%

7.9%


(1.1%)

nm

5.8%

(72.9%)

(9.1%) 

Net interest margin

3.56%

1.88%

3.21%


2.64%

3.47%

2.81%


0.80%

nm

2.91%

(0.19%)

2.01%

Cost:income ratio

77%

81%

78%


63%

103%

73%


144%

nm

74%

(181%)

95%

Cost:income ratio - adjusted (5)

59%

66%

60%


53%

81%

60%


91%

nm

74%

(175%)

72%

Loan impairment charge as a % of gross loans and advances

0.4%

5.6%

1.4%


0.8%

0.2%

0.7%


1.0%

nm

0.3%

12.5%

2.0%





























Capital and balance sheet (7)

£bn

£bn

£bn


£bn

£bn

£bn


£bn

£bn

£bn

£bn

£bn















Loans and advances to customers (gross, excluding reverse repos)

127.8 

31.4 

159.2 


85.0 

16.8 

101.8 


69.1 

0.4 

50.6 

36.7 

417.8 

Loan impairment provisions

(3.0)

(5.4)

(8.4)


(1.5)

(0.1)

(1.6)


(0.9)

(0.2)

(0.3)

(13.8)

(25.2)















Net loans and advances to customers

124.8 

26.0 

150.8 


83.5 

16.7 

100.2 


68.2 

0.2 

50.3 

22.9 

392.6 

Total funded assets

132.2 

28.0 

160.2 


87.9 

21.0 

108.9 


268.6 

102.8 

71.3 

28.0 

739.8 

Risk elements in lending

4.7 

8.5 

13.2 


4.3 

0.3 

4.6 


1.6 

- 

1.0 

19.0 

39.4 

Customer deposits (excluding repos)

144.9 

21.7 

166.6 


90.7 

37.2 

127.9 


64.8 

1.1 

55.1 

2.2 

417.7 

Loan:deposit ratio (excluding repos)

86%

120%

91%


92%

45%

78%


105%

nm 

91%

nm

94%

Provision coverage (8)

63%

64%

63%


38%

43%

38%


59%

nm 

26%

73%

64%

Risk-weighted assets (Basel 2.5)

51.2 

30.7 

81.9 


65.8 

12.0 

77.8 


120.4 

20.1 

56.1 

29.2 

385.5 

 

For the notes to this table refer to page 5.

 

Customer franchises

 

Total RBS















Half year ended 30 June 2013


PBB


CPB


CIB







Ulster



Commercial

Private




Central



Total


UK PBB

Bank

Total


Banking

Banking

Total



 items (1)

CFG

Non-Core

RBS


£m

£m

£m


£m

£m

£m


£m

£m

£m

£m

£m















Income statement (2)














Net interest income

2,200 

302 

2,502 


936 

317 

1,253 


314 

451 

939 

(17)

5,442 

Non-interest income

629 

142 

771 


613 

214 

827 


2,394 

221 

570 

383 

5,166 















Total income

2,829 

444 

3,273 


1,549 

531 

2,080 


2,708 

672 

1,509 

366 

10,608 















Direct expenses














  - staff

(469)

(124)

(593)


(254)

(173)

(427)


(580)

(1,304)

(572)

(109)

(3,585)

  - other

(200)

(27)

(227)


(145)

(30)

(175)


(284)

(2,002)

(482)

(104)

(3,274)

Indirect expenses

(947)

(125)

(1,072)


(401)

(228)

(629)


(1,325)

3,182 

(48)

(108)

- 

Restructuring costs














  - direct

(70)

(15)

(85)


(14)

(1)

(15)


(37)

(110)

(3)

(21)

(271)

  - indirect

(39)

(6)

(45)


(15)

(4)

(19)


(46)

112 

- 

(2)

- 

Litigation and conduct costs (3)

(160)

(25)

(185)


(25)

- 

(25)


(410)

- 

- 

- 

(620)















Total expenses

(1,885)

(322)

(2,207)


(854)

(436)

(1,290)


(2,682)

(122)

(1,105)

(344)

(7,750)















Operating profit before impairment losses

944 

122 

1,066 


695 

95 

790 


26 

550 

404 

22 

2,858 

Impairment (losses)/recoveries

(256)

(503)

(759)


(282)

(7)

(289)


(223)

3 

(51)

(831)

(2,150)















Operating profit/(loss)

688 

(381)

307 


413 

88 

501 


(197)

553 

353 

(809)

708 















Memo:














Profit attributable to ordinary and B shareholders (4)













535 

Total expenses - adjusted (5)

(1,616)

(276)

(1,892)


(800)

(431)

(1,231)


(2,189)

(124)

(1,102)

(321)

(6,859)

Operating profit/(loss) - adjusted (5)

957 

(335)

622 


467 

93 

560 


296 

551 

356 

(786)

1,599 

 

For the notes to this table refer to page 5.

 

Customer franchises

 

Total RBS















 Half year ended 30 June 2013


PBB


CPB


CIB







Ulster



Commercial

Private




Central



Total

Key metrics

UK PBB

Bank

Total


Banking

Banking

Total



 items

CFG

Non-Core

RBS















Return on equity (6)

16.4%

(14.9%)

4.3%


7.6%

8.9%

7.8%


(1.6%)

nm

6.6%

(18.7%)

1.7% 

Return on equity - adjusted (5,6)

22.8%

(13.1%)

8.8%


8.6%

9.4%

8.7%


2.5%

nm

6.7%

(18.2%)

4.2% 

Net interest margin

3.50%

1.82%

3.15%


2.53%

3.33%

2.69%


0.72%

nm

2.90%

(0.06%)

1.97%

Cost:income ratio

67%

73%

67%


55%

82%

62%


99%

nm

73%

94%

73%

Cost:income ratio - adjusted (5)

57%

62%

58%


52%

81%

59%


81%

nm

73%

88%

65%

Loan impairment charge as a % of gross loans and advances

0.4%

3.1%

0.9%


0.7%

0.1%

0.6%


0.6%

nm

0.2%

3.5%

0.5%





























Capital and balance sheet (7)

£bn

£bn

£bn


£bn

£bn

£bn


£bn

£bn

£bn

£bn

£bn















Loans and advances to customers (gross, excluding reverse repos)

127.4 

32.9 

160.3 


85.8 

17.1 

102.9 


77.0 

0.6 

53.3 

47.2 

441.3 

Loan impairment provisions

(3.4)

(4.4)

(7.8)


(1.5)

(0.1)

(1.6)


(0.6)

- 

(0.3)

(11.4)

(21.7)















Net loans and advances to customers

124.0 

28.5 

152.5 


84.3 

17.0 

101.3 


76.4 

0.6 

53.0 

35.8 

419.6 

Total funded assets

131.2 

30.3 

161.5 


88.8 

21.3 

110.1 


328.1 

123.3 

74.1 

45.4 

842.5 

Risk elements in lending

5.4 

8.6 

14.0 


4.4 

0.3 

4.7 


1.5 

- 

1.1 

20.9 

42.2 

Customer deposits (excluding repos)

139.9 

23.1 

163.0 


91.0 

38.9 

129.9 


79.3 

2.1 

60.1 

2.8 

437.2 

Loan deposit ratio (excluding repos)

89%

123%

94%


93%

44%

78%


96%

nm 

88%

nm 

96%

Provision coverage (8)

62%

52%

56%


35%

39%

35%


45%

nm 

23%

55%

52%

Risk-weighted assets (Basel 2.5)

52.4 

33.9 

86.3 


67.2 

12.5 

79.7 


143.3 

22.2 

58.2 

46.3 

436.0 

 

For the notes to this table refer to page 5.

 

Customer franchises

 

Total RBS















Quarter ended 30 June 2013


PBB


CPB


CIB







Ulster



Commercial

Private




Central



Total


UK PBB

Bank

Total


Banking

Banking

Total



 items (1)

CFG

Non-Core

RBS


£m

£m

£m


£m

£m

£m


£m

£m

£m

£m

£m















Income statement (2)














Net interest income

1,118 

152 

1,270 


484 

159 

643 


142 

226 

469 

20 

2,770 

Non-interest income

320 

88 

408 


325 

110 

435 


1,094 

209 

278 

253 

2,677 















Total income

1,438 

240 

1,678 


809 

269 

1,078 


1,236 

435 

747 

273 

5,447 















Direct expenses














  - staff

(235)

(67)

(302)


(127)

(88)

(215)


(247)

(663)

(286)

(51)

(1,764)

  - other

(96)

(12)

(108)


(77)

(17)

(94)


(154)

(1,035)

(233)

(49)

(1,673)

Indirect expenses

(484)

(65)

(549)


(205)

(112)

(317)


(657)

1,606 

(27)

(56)

- 

Restructuring costs














  - direct

(47)

(14)

(61)


(7)

(1)

(8)


(24)

(53)

(2)

(1)

(149)

  - indirect

(22)

(4)

(26)


(9)

(2)

(11)


(20)

59 

- 

(2)

- 

Litigation and conduct costs (3)

(160)

(25)

(185)


- 

- 

- 


(385)

- 

- 

- 

(570)















Total expenses

(1,044)

(187)

(1,231)


(425)

(220)

(645)


(1,487)

(86)

(548)

(159)

(4,156)















Operating profit/(loss) before impairment losses

394 

53 

447 


384 

49 

433 


(251)

349 

199 

114 

1,291 

Impairment (losses)/recoveries

(126)

(263)

(389)


(155)

(2)

(157)


(144)

3 

(32)

(398)

(1,117)















Operating profit/(loss)

268 

(210)

58 


229 

47 

276 


(395)

352 

167 

(284)

174 















Memo:














Profit attributable to ordinary and B shareholders (4)













142 

Total expenses - adjusted (5)

(815)

(144)

(959)


(409)

(217)

(626)


(1,058)

(92)

(546)

(156)

(3,437)

Operating profit/(loss) - adjusted (5)

497 

(167)

330 


245 

50 

295 


34 

346 

169 

(281)

893 

 

For the notes to this table refer to page 5.

 

Customer franchises

 

Total RBS















Quarter ended 30 June 2013


PBB


CPB


CIB







Ulster



Commercial

Private




Central



Total

Key metrics

UK PBB

Bank

Total


Banking

Banking

Total



 items

CFG

Non-Core

RBS















Return on equity (6)

12.8%

(16.8%)

1.7%


8.5%

9.4%

8.6%


(6.8%)

nm

6.3%

(14.1%)

0.9% 

Return on equity - adjusted (5,6)

23.8%

(13.4%)

9.5%


9.1%

10.0%

9.2%


0.6%

nm

6.4%

(13.9%)

5.0% 

Net interest margin

3.56%

1.84%

3.20%


2.63%

3.34%

2.77%


0.67%

nm

2.89%

0.15%

2.00%

Cost:income ratio

73%

78%

73%


53%

82%

60%


120%

nm

73%

58%

76%

Cost:income ratio - adjusted (5)

57%

60%

57%


51%

81%

58%


86%

nm

73%

57%

63%

Loan impairment charge as a % of gross loans and advances

0.4%

3.2%

1.0%


0.7%

- 

0.6%


0.7%

nm

0.2%

3.4%

0.3%





























Capital and balance sheet (7)

£bn

£bn

£bn


£bn

£bn

£bn


£bn

£bn

£bn

£bn

£bn















Loans and advances to customers (gross, excluding reverse repos)

127.4 

32.9 

160.3 


85.8 

17.1 

102.9 


77.0 

0.6 

53.3 

47.2 

441.3 

Loan impairment provisions

(3.4)

(4.4)

(7.8)


(1.5)

(0.1)

(1.6)


(0.6)

- 

(0.3)

(11.4)

(21.7)















Net loans and advances to customers

124.0 

28.5 

152.5 


84.3 

17.0 

101.3 


76.4 

0.6 

53.0 

35.8 

419.6 

Total funded assets

131.2 

30.3 

161.5 


88.8 

21.3 

110.1 


328.1 

123.3 

74.1 

45.4 

842.5 

Risk elements in lending

5.4 

8.6 

14.0 


4.4 

0.3 

4.7 


1.5 

- 

1.1 

20.9 

42.2 

Customer deposits (excluding repos)

139.9 

23.1 

163.0 


91.0 

38.9 

129.9 


79.3 

2.1 

60.1 

2.8 

437.2 

Loan deposit ratio (excluding repos)

89%

123%

94%


92%

44%

78%


97%

nm 

88%

nm 

96%

Provision coverage (8)

62%

52%

56%


35%

39%

35%


45%

nm 

23%

55%

52%

Risk-weighted assets (Basel 2.5)

52.4 

33.9 

86.3 


67.2 

12.5 

79.7 


143.3 

22.2 

58.2 

46.3 

436.0 

 

For the notes to this table refer to page 5.


 

 

 

 

 

 

 

 

Appendix 1

 

Consolidated income statement


 

Consolidated income statement reconciliation for the quarter ended 31 March 2014

 


Re-presentation


Reallocation of




As previously

of one-off and


residual one-off

Presentational



reported

other items

Restated

and other items

adjustments (1)

Statutory


£m

£m

£m

£m

£m

£m








Interest receivable

3,799 

3,799 

1 

3,800 

Interest payable

(1,101)

- 

(1,101)

(4)

- 

(1,105)








Net interest income

2,698 

- 

2,698 

(3)

- 

2,695 








Fees and commissions receivable

1,291 

1,291 

- 

1,291 

Fees and commissions payable

(236)

(236)

- 

(236)

Income from trading activities

856 

856 

96 

952 

Gain on redemption of own debt

- 

- 

20 

20 

Other operating income

444 

- 

444 

247 

- 

691 








Non-interest income

2,355 

- 

2,355 

363 

- 

2,718 








Total income

5,053 

- 

5,053 

360 

- 

5,413 








Staff costs

(1,647)

(1,647)

(1)

(1,691)

Premises and equipment

(594)

(594)

- 

(653)

Other administrative expenses

(687)

(687)

1 

(711)

Depreciation and amortisation

(262)

(269)

(1)

(272)

Write-down of other intangible assets

- 

(82)

- 

(82)

Restructuring costs

- 

(129)

- 

- 








Operating expenses

(3,190)

(218)

(3,408)

(1)

- 

(3,409)








Profit before impairment losses

1,863 

1,645 

359 

2,004 

Impairment losses

(362)

- 

(362)

- 

- 

(362)








Operating profit

1,501 

(218)

1,283 

359 

- 

1,642 








Own credit adjustments (2)

139 

139 

(139)

- 

Restructuring costs

(129)

- 

- 

- 

Gain on redemption of own debt

20 

20 

(20)

- 

Write-down of goodwill and other intangible





  assets

(82)

- 

- 

- 

Amortisation of purchased intangible assets

(7)

- 

- 

- 

Strategic disposals

191 

191 

(191)

- 

RFS Holdings minority interest

9 

- 

9 

(9)

- 

- 








Profit before tax

1,642 

1,642 

- 

1,642 

Tax

(362)

- 

(362)

- 

- 

(362)








Profit from continuing operations

1,280 

1,280 

- 

1,280 

Profit from discontinued operations, net of tax

9 

- 

9 

- 

- 

9 








Profit for the period

1,289 

1,289 

- 

1,289 

Non-controlling interests

(19)

(19)

- 

(19)

Preference share and other dividends

(75)

- 

(75)

- 

- 

(75)








Profit attributable to ordinary and B





  shareholders

1,195 

- 

1,195 

- 

- 

1,195 

 

Notes:

(1)

Reallocation of separately reported restructuring costs and litigation and conduct costs to the statutory operating expense lines.

(2)

Reallocation of £95 million gain to income from trading activities and £44 million gain to other operating income.

 

 

Consolidated income statement reconciliation for the year ended 31 December 2013

 


Re-presentation


Reallocation of



 


As previously

of one-off and


residual one-off

Presentational


 


reported

other items

Restated

and other items

adjustments (1)

Statutory

 


£m

£m

£m

£m

£m

£m

 








 

Interest receivable

16,740 

16,740 

- 

16,740 

 

Interest payable

(5,748)

- 

(5,748)

(11)

- 

(5,759)

 








 

Net interest income

10,992 

- 

10,992 

(11)

- 

10,981 

 








 

Fees and commissions receivable

5,460 

5,460 

- 

5,460 

 

Fees and commissions payable

(942)

(942)

- 

(942)

 

Income from trading activities

2,651 

2,651 

34 

2,685 

 

Gain on redemption of own debt

- 

- 

175 

175 

 

Other operating income

1,281 

- 

1,281 

117 

- 

1,398 

 








 

Non-interest income

8,450 

- 

8,450 

326 

- 

8,776 

 








 

Total income

19,442 

- 

19,442 

315 

- 

19,757 

 








 

Staff costs

(6,882)

(6,882)

(1)

(7,163)

 

Premises and equipment

(2,233)

(2,233)

- 

(2,348)

 

Other administrative expenses

(2,947)

(3,147)

2 

(7,244)

 

Depreciation and amortisation

(1,251)

(1,404)

- 

(1,410)

 

Write-down of goodwill and other intangible





 

  assets

- 

(344)

(1,059)

(1,403)

 

Restructuring costs

- 

(656)

- 

- 

 

Litigation and conduct costs

- 

(3,844)

(3,844)

- 

3,844 

- 

 








 

Operating expenses

(13,313)

(5,197)

(18,510)

(1,058)

- 

(19,568)

 








 

Profit before impairment losses

6,129 

932 

(743)

189 

 

Impairment losses

(8,432)

-

(8,432)

- 

- 

(8,432)

 








 

Operating loss

(2,303)

(5,197)

(7,500)

(743)

- 

(8,243)

 








Own credit adjustments (2)

(120)

(120)

120 

- 

Payment Protection Insurance costs

(900)

- 

- 

- 

Interest Rate Hedging Products redress and





  related costs

(550)

- 

- 

- 

Regulatory and legal actions

(2,394)

- 

- 

- 

Restructuring costs

(656)

- 

- 

- 

Gain on redemption of own debt

175 

175 

(175)

- 

Write-down of goodwill and other intangible





   assets

(1,403)

(1,059)

1,059 

- 

Amortisation of purchased intangible assets

(153)

- 

- 

- 

Strategic disposals

161 

161 

(161)

- 

Bank levy

(200)

- 

- 

- 

RFS Holdings minority interest

100 

- 

100 

(100)

- 

- 








Loss before tax

(8,243)

(8,243)

- 

(8,243)

Tax

(382)

- 

(382)

- 

- 

(382)








Loss from continuing operations

(8,625)

(8,625)

- 

(8,625)

Profit from discontinued operations, net of tax

148 

- 

148 

- 

- 

148 








Loss for the period

(8,477)

(8,477)

- 

(8,477)

Non-controlling interests

(120)

(120)

- 

(120)

Preference share and other dividends

(398)

- 

(398)

- 

- 

(398)








Loss attributable to ordinary and B







  shareholders

(8,995)

- 

(8,995)

- 

- 

(8,995)

 

Notes:

(1)

Reallocation of separately reported restructuring costs and litigation and conduct costs to the statutory operating expense lines.

(2)

Reallocation of £35 million gain to income from trading activities and £155 million loss to other operating income.

 

 

Consolidated income statement reconciliation for the half year ended 30 June 2013

 


Re-presentation


Reallocation of




As previously

of one-off and


residual one-off

Presentational



reported

other items

Restated

and other items

adjustments (1)

Statutory


£m

£m

£m

£m

£m

£m








Interest receivable

8,560 

8,560 

- 

8,560 

Interest payable

(3,118)

- 

(3,118)

(5)

- 

(3,123)








Net interest income

5,442 

- 

5,442 

(5)

- 

5,437 








Fees and commissions receivable

2,708 

2,708 

- 

2,708 

Fees and commissions payable

(460)

(460)

- 

(460)

Income from trading activities

1,890 

1,890 

174 

2,064 

Gain on redemption of own debt

- 

- 

191 

191 

Other operating income

1,028 

- 

1,028 

304 

- 

1,332 








Non-interest income

5,166 

- 

5,166 

669 

- 

5,835 








Total income

10,608 

- 

10,608 

664 

- 

11,272 








Staff costs

(3,585)

(3,585)

- 

(3,727)

Premises and equipment

(1,079)

(1,079)

- 

(1,104)

Other administrative expenses

(1,479)

(1,479)

2 

(2,181)

Depreciation and amortisation

(637)

(716)

- 

(736)

Write-down of goodwill and other intangible assets





Restructuring costs

- 

(271)

- 

- 

Litigation and conduct costs

- 

(620)

(620)

- 

620 

- 








Operating expenses

(6,780)

(970)

(7,750)

2 

- 

(7,748)








Profit before impairment losses

3,828 

2,858 

666 

3,524 

Impairment losses

(2,150)

- 

(2,150)

- 

- 

(2,150)








Operating profit

1,678 

(970)

708 

666 

- 

1,374 








Own credit adjustments (2)

376 

376 

(376)

- 

Payment Protection Insurance costs

(185)

- 

- 

- 

Interest Rate Hedging Products redress and





  related costs

(50)

- 

- 

- 

Regulatory and legal actions

(385)

- 

- 

- 

Restructuring costs

(271)

- 

- 

- 

Gain on redemption of own debt

191 

191 

(191)

- 

Write-down of goodwill and other intangible assets





Amortisation of purchased intangible assets

(79)

- 

- 

- 

Strategic disposals

- 

- 

- 

- 

RFS Holdings minority interest

99 

- 

99 

(99)

- 

- 








Profit before tax

1,374 

1,374 

- 

1,374 

Tax

(678)

- 

(678)

- 

- 

(678)








Profit from continuing operations

696 

696 

- 

696 

Profit from discontinued operations, net of tax

138 

- 

138 

- 

- 

138 








Profit for the period

834 

834 

- 

834 

Non-controlling interests

(117)

(117)

- 

(117)

Preference share and other dividends

(182)

- 

(182)

- 

- 

(182)








Profit attributable to ordinary and B





  shareholders

535 

- 

535 

- 

- 

535 

 

Notes:

(1)

Reallocation of separately reported restructuring costs and litigation and conduct costs to the statutory operating expense lines.

(2)

Reallocation of £175 million gain to income from trading activities and £201 million gain to other operating income.

 

 

 

Consolidated income statement reconciliation for the quarter ended 30 June 2013

 


Re-presentation


Reallocation of




As previously

of one-off and


residual one-off

Presentational



reported

other items

Restated

and other items

adjustments (1)

Statutory


£m

£m

£m

£m

£m

£m








Interest receivable

4,281 

4,281 

- 

4,281 

Interest payable

(1,511)

- 

(1,511)

(3)

- 

(1,514)








Net interest income

2,770 

- 

2,770 

(3)

- 

2,767 








Fees and commissions receivable

1,392 

1,392 

- 

1,392 

Fees and commissions payable

(250)

(250)

- 

(250)

Income from trading activities

874 

874 

75 

949 

Gain on redemption of own debt

- 

- 

242 

242 

Other operating income

661 

- 

661 

59 

- 

720 








Non-interest income

2,677 

- 

2,677 

376 

- 

3,053 








Total income

5,447 

- 

5,447 

373 

- 

5,820 








Staff costs

(1,764)

(1,764)

- 

(1,840)

Premises and equipment

(526)

(526)

- 

(548)

Other administrative expenses

(801)

(801)

1 

(1,418)

Depreciation and amortisation

(308)

(346)

- 

(349)

Restructuring costs

- 

(149)

- 

- 

Litigation and conduct costs

- 

(570)

(570)

- 

570 

- 








Operating expenses

(3,399)

(757)

(4,156)

1 

- 

(4,155)








Profit before impairment losses

2,048 

1,291 

374 

1,665 

Impairment losses

(1,117)

- 

(1,117)

- 

- 

(1,117)








Operating profit

931 

(757)

174 

374 

- 

548 








Own credit adjustments (2)

127 

127 

(127)

- 

Payment Protection Insurance costs

(185)

- 

- 

- 

Regulatory and legal actions

(385)

- 

- 

- 

Restructuring costs

(149)

- 

- 

- 

Gain on redemption of own debt

242 

242 

(242)

- 

Amortisation of purchased intangible assets

(38)

- 

- 

- 

Strategic disposals

6 

6 

(6)

- 

RFS Holdings minority interest

(1)

- 

(1)

1 

- 

- 








Profit before tax

548 

548 

- 

548 

Tax

(328)

- 

(328)

- 

- 

(328)








Profit from continuing operations

220 

220 

- 

220 

Profit from discontinued operations, net of tax

9 

- 

9 

- 

- 

9 








Profit for the period

229 

229 

- 

229 

Non-controlling interests

14 

14 

- 

14 

Preference share and other dividends

(101)

- 

(101)

- 

- 

(101)








Profit attributable to ordinary and B





  shareholders

142 

- 

142 

- 

- 

142 

 

Notes:

(1)

Reallocation of separately reported restructuring costs and litigation and conduct costs to the statutory operating expense lines.

(2)

Reallocation of £76 million gain to income from trading activities and £51 million gain to other operating income.


 

 

 

 

 

 

 

 

Appendix 2

 

Components of customer franchises

 


 

Components of customer franchises

 

The tables in this appendix summarise the performance of each of the new franchises and show how the previously reported divisions have been allocated to them.

 

Personal & Business Banking (PBB) includes the segments UK Personal & Business Banking (UK PBB) and Ulster Bank. UK PBB includes the whole of UK Retail and Business Banking operations, which serves customers with a turnover of up to £2 million which was previously included in UK Corporate division. Williams & Glyn is included in this segment.

 

Commercial & Private Banking (CPB) includes the segments Commercial Banking and Private Banking. Commercial Banking comprises the commercial and mid-corporate elements of UK Corporate. It also includes a small number of large domestically focused UK Corporates previously reported within International Banking.

 

Corporate & Institutional Banking (CIB) includes the majority of customers previously reported within the International Banking and Markets businesses. CIB is reported as a single segment.


 

Components of customer franchises

 

Operating profit/(loss) by division










Allocated from



UK

UK


International

Ulster







Retail

Corporate

Wealth

Banking

Bank

CFG

Markets

Centre

RCR

Total

Quarter ended 31 March 2014

£m

£m

£m

£m

£m

£m

£m

£m

£m

£m












UK PBB

451 

59 

- 

- 

- 

- 

- 

- 

- 

510 

Ulster Bank

- 

- 

- 

- 

9 

- 

- 

- 

- 

9 












PBB

451 

59 

- 

- 

9 

- 

- 

- 

- 

519 












Commercial Banking

- 

314 

- 

3 

- 

- 

- 

4 

- 

321 

Private Banking

- 

- 

75 

- 

- 

- 

- 

- 

- 

75 












CPB

- 

314 

75 

3 

- 

- 

- 

4 

- 

396 












Corporate & Institutional Banking

- 

31 

- 

75 

- 

- 

227 

- 

- 

333 

Central items

- 

- 

- 

- 

- 

- 

- 

5 

- 

5 

Citizens Financial Group

- 

- 

- 

- 

- 

144 

- 

- 

- 

144 

RCR

- 

- 

- 

- 

- 

- 

- 

- 

(114)

(114)












Operating profit/(loss)

451 

404 

75 

78 

9 

144 

227 

9 

(114)

1,283 

 

Allocated from



UK

UK


International

Ulster




Non-



Retail

Corporate

Wealth

Banking

Bank

CFG

Markets

Centre

Core

Total

Year ended 31 December 2013

£m

£m

£m

£m

£m

£m

£m

£m

£m

£m












UK PBB

692 

127 

- 

- 

- 

- 

- 

- 

- 

819 

Ulster Bank

- 

- 

- 

- 

(1,609)

- 

- 

- 

- 

(1,609)












PBB

692 

127 

- 

- 

(1,609)

- 

- 

- 

- 

(790)












Commercial Banking

- 

503 

- 

15 

- 

- 

- 

12 

- 

530 

Private Banking

- 

- 

(61)

- 

- 

- 

- 

- 

- 

(61)












CPB

- 

503 

(61)

15 

- 

- 

- 

12 

- 

469 












Corporate & Institutional Banking

- 

(244)

- 

66 

- 

- 

(2,704)

- 

- 

(2,882)

Central items

- 

- 

- 

- 

- 

- 

- 

647 

- 

647 

Citizens Financial Group

- 

- 

- 

- 

- 

605 

- 

- 

- 

605 

Non-Core

- 

- 

- 

- 

- 

- 

- 

- 

(5,549)

(5,549)












Operating profit/(loss)

692 

386 

(61)

81 

(1,609)

605 

(2,704)

659 

(5,549)

(7,500)


 

 

Components of customer franchises

 

Business allocated from



UK

UK


International

Ulster




Non-



Retail

Corporate

Wealth

Banking

Bank

CFG

Markets

Centre

Core

Total

Half year ended 30 June 2013

£m

£m

£m

£m

£m

£m

£m

£m

£m

£m












UK PBB

603 

85 

- 

- 

- 

- 

- 

- 

- 

688 

Ulster Bank

- 

- 

- 

- 

(381)

- 

- 

- 

- 

(381)












PBB

603 

85 

- 

- 

(381)

- 

- 

- 

- 

307 












Commercial Banking

- 

400 

- 

8 

- 

- 

- 

5 

- 

413 

Private Banking

- 

- 

88 

- 

- 

- 

- 

- 

- 

88 












CPB

- 

400 

88 

8 

- 

- 

- 

5 

- 

501 












Corporate & Institutional Banking

- 

45 

- 

62 

- 

- 

(304)

- 

- 

(197)

Central items

- 

- 

- 

- 

- 

- 

- 

553 

- 

553 

Citizens Financial Group

- 

- 

- 

- 

- 

353 

- 

- 

- 

353 

Non-Core

- 

- 

- 

- 

- 

- 

- 

- 

(809)

(809)












Operating profit/(loss)

603 

530 

88 

70 

(381)

353 

(304)

558 

(809)

708 

 

Quarter ended 30 June 2013






















UK PBB

212 

56 

- 

- 

- 

- 

- 

- 

- 

268 

Ulster Bank

- 

- 

- 

- 

(210)

- 

- 

- 

- 

(210)












PBB

212 

56 

- 

- 

(210)

- 

- 

- 

- 

58 












Commercial Banking

- 

222 

- 

4 

- 

- 

- 

3 

- 

229 

Private Banking

- 

- 

47 

- 

- 

- 

- 

- 

- 

47 












CPB

- 

222 

47 

4 

- 

- 

- 

3 

- 

276 












Corporate & Institutional Banking

- 

26 

- 

7 

- 

- 

(428)

- 

- 

(395)

Central items

- 

- 

- 

- 

- 

- 

- 

352 

- 

352 

Citizens Financial Group

- 

- 

- 

- 

- 

167 

- 

- 

- 

167 

Non-Core

- 

- 

- 

- 

- 

- 

- 

- 

(284)

(284)












Operating profit/(loss)

212 

304 

47 

11 

(210)

167 

(428)

355 

(284)

174 


 

Personal & Business Banking 








Quarter ended 31 March 2014


Allocated from




Total


UK Retail

UK Corporate


UK PBB

Ulster Bank

PBB

Income statement

£m

£m


£m

£m

£m








Net interest income

972 

152 


1,124 

154 

1,278 

Non-interest income

246 

93 


339 

47 

386 








Total income

1,218 

245 


1,463 

201 

1,664 








Direct expenses







  - staff

(162)

(63)


(225)

(63)

(288)

  - other

(120)

(10)


(130)

(17)

(147)

Indirect expenses

(437)

(83)


(520)

(63)

(583)

Restructuring costs







  - indirect

11 

(1)


10 

(2)

8 








Total expenses

(708)

(157)


(865)

(145)

(1,010)








Operating profit before impairment losses

510 

88 


598 

56 

654 

Impairment losses

(59)

(29)


(88)

(47)

(135)








Operating profit

451 

59 


510 

9 

519 








Memo: operating profit - adjusted (1)

440 

60 


500 

11 

511 

Key metrics














Return on equity (2)

30.3%

12.4%


26.0%

0.9%

16.7%

Return on equity - adjusted (1,2)

29.6%

12.6%


25.5%

1.1%

16.4%

Net interest margin

3.51%

4.34%


3.61%

2.29%

3.37%

Cost:income ratio

58%

64%


59%

72%

61%

Cost:income ratio - adjusted (1)

59%

64%


60%

71%

61%

Loan impairment charge as % of gross customer







  loans and advances

0.2%

0.8%


0.3%

0.7%

0.3%

 

31 March 2014


Allocated from




Total


UK Retail

UK Corporate


UK PBB

Ulster Bank

PBB

Capital and balance sheet

£bn

£bn


£bn

£bn

£bn








Loans and advances to customers (gross)

113.8 

14.6 


128.4 

26.6 

155.0 

Loan impairment provisions

(1.9)

(1.0)


(2.9)

(3.4)

(6.3)








Net loans and advances to customers

111.9 

13.6 


125.5 

23.2 

148.7 

Total funded assets

118.4 

14.4 


132.8 

26.0 

158.8 

Risk elements in lending

3.3 

1.2 


4.5 

4.7 

9.2 

Customer deposits (excluding repos)

114.8 

29.8 


144.6 

21.1 

165.7 

Loan:deposit ratio (excluding repos)

98%

46%


87%

110%

90%

Provision coverage (3)

58%

85%


65%

72%

68%

Risk-weighted assets

36.8 

11.7 


48.5 

28.7 

77.2 

 

Notes:

(1)

Excluding restructuring costs.

(2)

Return on equity is based on divisional operating profit after tax divided by average notional equity (based on 12% of the monthly average of divisional RWAs; previously - 10% of RWAe).

(3)

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

 

 

Personal & Business Banking 








Year ended 31 December 2013


Allocated from




Total


UK Retail

UK Corporate


UK PBB

Ulster Bank

PBB

Income statement

£m

£m


£m

£m

£m








Net interest income

3,883 

607 


4,490 

619 

5,109 

Non-interest income

958 

365 


1,323 

240 

1,563 








Total income

4,841 

972 


5,813 

859 

6,672 








Direct expenses







  - staff

(674)

(259)


(933)

(239)

(1,172)

  - other

(442)

(82)


(524)

(63)

(587)

Indirect expenses

(1,637)

(312)


(1,949)

(263)

(2,212)

Restructuring costs







  - direct

(118)

- 


(118)

(27)

(145)

  - indirect

(94)

(15)


(109)

(12)

(121)

Litigation and conduct costs

(860)

- 


(860)

(90)

(950)








Total expenses

(3,825)

(668)


(4,493)

(694)

(5,187)








Operating profit before impairment losses

1,016 

304 


1,320 

165 

1,485 

Impairment losses

(324)

(177)


(501)

(1,774)

(2,275)








Operating profit/(loss)

692 

127 


819 

(1,609)

(790)








Memo: operating profit/(loss) - adjusted (1)

1,764 

142 


1,906 

(1,480)

426 

Impairments pertaining to the creation of RCR

- 

(2)


(2)

(892)

(894)

Key metrics














Return on equity (2)

11.4%

5.6%


9.8%

(33.2%)

(5.7%)

Return on equity - adjusted (1,2)

29.0%

6.3%


22.8%

(30.6%)

3.1%

Net interest margin

3.48%

4.14%


3.56%

1.88%

3.21%

Cost:income ratio

79%

69%


77%

81%

78%

Cost:income ratio - adjusted (1)

57%

67%


59%

66%

60%

Loan impairment charge as a % of gross customer







  loans and advances

0.3%

1.2%


0.4%

5.6%

1.4%

 

31 December 2013


Allocated from




Total


UK Retail

UK Corporate


UK PBB

Ulster Bank

PBB

Capital and balance sheet

£bn

£bn


£bn

£bn

£bn








Loans and advances to customers (gross)

113.2 

14.6 


127.8 

31.4 

159.2 

Loan impairment provisions

(2.1)

(0.9)


(3.0)

(5.4)

(8.4)








Net loans and advances to customers

111.1 

13.7 


124.8 

26.0 

150.8 

Total funded assets

117.6 

14.6 


132.2 

28.0 

160.2 

Risk elements in lending

3.6 

1.1 


4.7 

8.5 

13.2 

Customer deposits (excluding repos)

114.9 

30.0 


144.9 

21.7 

166.6 

Loan:deposit ratio (excluding repos)

97%

46%


86%

120%

91%

Provision coverage (3)

59%

76%


63%

64%

63%

Risk-weighted assets

37.4 

13.8 


51.2 

30.7 

81.9 

 

Notes:

(1)

Excluding restructuring costs and litigation and conduct costs.

(2)

Return on equity is based on divisional operating profit after tax divided by average notional equity (based on 12% of the monthly average of divisional RWAs; previously - 10% of RWAe).

(3)

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

 

 

Personal & Business Banking 








Half year ended 30 June 2013


Allocated from




Total


UK Retail

UK Corporate


UK PBB

Ulster Bank

PBB

Income statement

£m

£m


£m

£m

£m








Net interest income

1,897 

303 


2,200 

302 

2,502 

Non-interest income

451 

178 


629 

142 

771 








Total income

2,348 

481 


2,829 

444 

3,273 








Direct expenses







  - staff

(339)

(130)


(469)

(124)

(593)

  - other

(171)

(29)


(200)

(27)

(227)

Indirect expenses

(802)

(145)


(947)

(125)

(1,072)

Restructuring costs







  - direct

(70)

- 


(70)

(15)

(85)

  - indirect

(34)

(5)


(39)

(6)

(45)

Litigation and conduct cost

(160)

- 


(160)

(25)

(185)








Total expenses

(1,576)

(309)


(1,885)

(322)

(2,207)








Operating profit before impairment losses

772 

172 


944 

122 

1,066 

Impairment losses

(169)

(87)


(256)

(503)

(759)








Operating profit/(loss)

603 

85 


688 

(381)

307 








Memo: operating profit/(loss) - adjusted (1)

867 

90 


957 

(335)

622 

Key metrics














Return on equity (2)

19.8%

7.3%


16.4%

(14.9%)

4.3%

Return on equity - adjusted (1,2)

28.5%

7.7%


22.8%

(13.1%)

8.8%

Net interest margin

3.42%

4.10%


3.50%

1.82%

3.15%

Cost:income ratio

67%

64%


67%

73%

67%

Cost:income ratio - adjusted (1)

56%

63%


57%

62%

58%

Loan impairment charge as a % of gross customer







  loans and advances

0.3%

1.1%


0.4%

3.1%

0.9%

 

30 June 2013


Allocated from




Total


UK Retail

UK Corporate


UK PBB

Ulster Bank

PBB

Capital and balance sheet

£bn

£bn


£bn

£bn

£bn








Loans and advances to customers (gross)

112.2 

15.2 


127.4 

32.9 

160.3 

Loan impairment provisions

(2.5)

(0.9)


(3.4)

(4.4)

(7.8)








Net loans and advances to customers

109.7 

14.3 


124.0 

28.5 

152.5 

Total funded assets

116.1 

15.1 


131.2 

30.3 

161.5 

Risk elements in lending

4.3 

1.1 


5.4 

8.6 

14.0 

Customer deposits (excluding repos)

111.6 

28.3 


139.9 

23.1 

163.0 

Loan:deposit ratio (excluding repos)

98%

51%


89%

123%

94%

Provision coverage (3)

58%

77%


62%

52%

56%

Risk-weighted assets

38.0 

14.4 


52.4 

33.9 

86.3 

 

Notes:

(1)

Excluding restructuring costs and litigation and conduct costs.

(2)

Return on equity is based on divisional operating profit after tax divided by average notional equity (based on 12% of the monthly average of divisional RWAs; previously - 10% of RWAe).

(3)

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

 

 

Personal & Business Banking 








Quarter ended 30 June 2013


Allocated from




Total


UK Retail

UK Corporate


UK PBB

Ulster Bank

PBB

Income statement

£m

£m


£m

£m

£m








Net interest income

965 

153 


1,118 

152 

1,270 

Non-interest income

225 

95 


320 

88 

408 








Total income

1,190 

248 


1,438 

240 

1,678 








Direct expenses







  - staff

(171)

(64)


(235)

(67)

(302)

  - other

(83)

(13)


(96)

(12)

(108)

Indirect expenses

(409)

(75)


(484)

(65)

(549)

Restructuring costs







  - direct

(47)

- 


(47)

(14)

(61)

  - indirect

(19)

(3)


(22)

(4)

(26)

Litigation and conduct costs

(160)

- 


(160)

(25)

(185)








Total expenses

(889)

(155)


(1,044)

(187)

(1,231)








Operating profit before impairment losses

301 

93 


394 

53 

447 

Impairment losses

(89)

(37)


(126)

(263)

(389)








Operating profit/(loss)

212 

56 


268 

(210)

58 








Memo: operating profit/(loss) - adjusted (1)

438 

59 


497 

(167)

330 

Key metrics














Return on equity (2)

14.1%

9.6%


12.8%

(16.8%)

1.7%

Return on equity - adjusted (1,2)

29.0%

10.1%


23.8%

(13.4%)

9.5%

Net interest margin

3.48%

4.13%


3.56%

1.84%

3.20%

Cost:income ratio

75%

63%


73%

78%

73%

Cost:income ratio - adjusted (1)

56%

61%


57%

60%

57%

Loan impairment charge as % of gross customer







  loans and advances

0.3%

1.0%


0.4%

3.2%

1.0%

 

30 June 2013


Allocated from




Total


UK Retail

UK Corporate


UK PBB

Ulster Bank

PBB

Capital and balance sheet

£bn

£bn


£bn

£bn

£bn








Loans and advances to customers (gross)

112.2 

15.2 


127.4 

32.9 

160.3 

Loan impairment provisions

(2.5)

(0.9)


(3.4)

(4.4)

(7.8)








Net loans and advances to customers

109.7 

14.3 


124.0 

28.5 

152.5 

Total funded assets

116.1 

15.1 


131.2 

30.3 

161.5 

Risk elements in lending

4.3 

1.1 


5.4 

8.6 

14.0 

Customer deposits (excluding repos)

111.6 

28.3 


139.9 

23.1 

163.0 

Loan:deposit ratio (excluding repos)

98%

51%


89%

123%

94%

Provision coverage (3)

58%

77%


62%

52%

56%

Risk-weighted assets

38.0 

14.4 


52.4 

33.9 

86.3 

 

Notes:

(1)

Excluding restructuring costs and litigation and conduct costs.

(2)

Return on equity is based on divisional operating profit after tax divided by average notional equity (based on 12% of the monthly average of divisional RWAs; previously - 10% of RWAe).

(3)

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


 

Commercial & Private Banking 

 

Quarter ended 31 March 2014


Allocated from







International



Commercial

Private

Total


UK Corporate

Banking

Centre


Banking

Banking

CPB

Income statement

£m

£m

£m


£m

£m

£m









Net interest income

476 

1 

11 


488 

170 

658 

Non-interest income

287 

2 

(7)


282 

103 

385 









Total income

763 

3 

4 


770 

273 

1,043 









Direct expenses








  - staff

(133)

- 

- 


(133)

(80)

(213)

  - other

(63)

- 

- 


(63)

(18)

(81)

Indirect expenses

(212)

- 

- 


(212)

(101)

(313)

Restructuring costs








  - indirect

(1)

- 

- 


(1)

- 

(1)









Total expenses

(409)

- 

- 


(409)

(199)

(608)









Operating profit before impairment losses

354 

3 

4 


361 

74 

435 

Impairment (losses)/recoveries

(40)

- 

- 


(40)

1 

(39)









Operating profit

314 

3 

4 


321 

75 

396 









Memo: operating profit - adjusted (1)

315 

3 

4 


322 

75 

397 

Key metrics
















Return on equity (2)

12.4%

28.7%

- 


12.6%

15.3%

13.1%

Return on equity - adjusted (1,2)

12.5%

28.7%

- 


12.7%

15.3%

13.1%

Net interest margin

2.79%

2.33%

2.91%


2.68%

3.70%

2.89%

Cost:income ratio

54%

- 

- 


53%

73%

58%

Cost:income ratio - adjusted (1)

53%

- 

- 


53%

73%

58%

Loan impairment charge as % of gross customer








  loans and advances

0.2%

- 

- 


0.2%

- 

0.2%

 

31 March 2014


Allocated from







International



Commercial

Private

Total


UK Corporate

Banking

Centre


Banking

Banking

CPB

Capital and balance sheet

£bn

£bn

£bn


£bn

£bn

£bn









Loans and advances to customers (gross)

81.1 

0.3 

4.8 


86.2 

16.8 

103.0 

Loan impairment provisions

(1.3)

- 

- 


(1.3)

(0.1)

(1.4)









Net loans and advances to customers

79.8 

0.3 

4.8 


84.9 

16.7 

101.6 

Total funded assets

84.5 

0.3 

4.8 


89.6 

21.1 

110.7 

Risk elements in lending

3.4 

- 

- 


3.4 

0.3 

3.7 

Customer deposits (excluding repos)

87.5 

0.1 

- 


87.6 

36.6 

124.2 

Loan:deposit ratio (excluding repos)

91%

300%

- 


97%

45%

82%

Provision coverage (3)

38%

- 

- 


37%

45%

38%

Risk-weighted assets

62.8 

0.2 

0.5 


63.5 

12.0 

75.5 

 

Notes:

(1)

Excluding restructuring costs.

(2)

Return on equity is based on divisional operating profit after tax divided by average notional equity (based on 12% of the monthly average of divisional RWAs; previously - 10% of RWAe).

(3)

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


 

Commercial & Private Banking 

 









Year ended 31 December 2013


Allocated from







International



Commercial

Private

Total


UK Corporate

Banking

Centre


Banking

Banking

CPB

Income statement

£m

£m

£m


£m

£m

£m









Net interest income

1,934 

9 

19 


1,962 

658 

2,620 

Non-interest income

1,195 

7 

(7)


1,195 

419 

1,614 









Total income

3,129 

16 

12 


3,157 

1,077 

4,234 









Direct expenses








  - staff

(514)

(1)

- 


(515)

(318)

(833)

  - other

(272)

- 

- 


(272)

(83)

(355)

Indirect expenses

(886)

- 

- 


(886)

(475)

(1,361)

Restructuring costs








  - direct

(18)

- 

- 


(18)

(18)

(36)

  - indirect

(37)

- 

- 


(37)

(9)

(46)

Litigation and conduct costs

(247)

- 

- 


(247)

(206)

(453)









Total expenses

(1,974)

(1)

- 


(1,975)

(1,109)

(3,084)









Operating profit/(loss) before impairment losses

1,155 

15 

12 


1,182 

(32)

1,150 

Impairment losses

(652)

- 

- 


(652)

(29)

(681)









Operating profit/(loss)

503 

15 

12 


530 

(61)

469 









Memo: operating profit - adjusted (1)

805 

15 

12 


832 

172 

1,004 

Impairments pertaining to the creation of RCR

(123)

- 

- 


(123)

- 

(123)

Key metrics
















Return on equity (2)

4.7%

49.3%

- 


4.9%

(3.1%)

3.7%

Return on equity - adjusted (1,2)

7.5%

49.3%

- 


7.7%

8.7%

7.9%

Net interest margin

2.73%

3.15%

0.62%


2.64%

3.47%

2.81%

Cost:income ratio

63%

6%

- 


63%

103%

73%

Cost:income ratio - adjusted (1)

53%

6%

- 


53%

81%

60%

Loan impairment charge as % of gross customer








  loans and advances

0.8% 

- 

- 


0.8%

0.2%

0.7%

 

31 December 2013


Allocated from







International



Commercial

Private

Total


UK Corporate

Banking

Centre


Banking

Banking

CPB

Capital and balance sheet

£bn

£bn

£bn


£bn

£bn

£bn









Loans and advances to customers (gross)

79.9 

0.3 

4.8 


85.0 

16.8 

101.8 

Loan impairment provisions

(1.5)

- 

- 


(1.5)

(0.1)

(1.6)









Net loans and advances to customers

78.4 

0.3 

4.8 


83.5 

16.7 

100.2 

Total funded assets

82.8 

0.3 

4.8 


87.9 

21.0 

108.9 

Risk elements in lending

4.3 

- 

- 


4.3 

0.3 

4.6 

Customer deposits (excluding repos)

90.7 

- 

- 


90.7 

37.2 

127.9 

Loan:deposit ratio (excluding repos)

86%

- 

- 


92%

45%

78%

Provision coverage (3)

35%

- 

- 


38%

43%

38%

Risk-weighted assets

65.1 

0.3 

0.4 


65.8 

12.0 

77.8 

 

Notes:

(1)

Excluding restructuring costs and litigation and conduct costs.

(2)

Return on equity is based on divisional operating profit after tax divided by average notional equity (based on 12% of the monthly average of divisional RWAs; previously - 10% of RWAe).

(3)

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


 

Commercial & Private Banking 









Half year ended 30 June 2013


Allocated from







International



Commercial

Private

Total


UK Corporate

Banking

Centre


Banking

Banking

CPB

Income statement

£m

£m

£m


£m

£m

£m









Net interest income

925 

4 

7 


936 

317 

1,253 

Non-interest income

611 

4 

(2)


613 

214 

827 









Total income

1,536 

8 

5 


1,549 

531 

2,080 









Direct expenses








  - staff

(254)

- 

- 


(254)

(173)

(427)

  - other

(145)

- 

- 


(145)

(30)

(175)

Indirect expenses

(401)

- 

- 


(401)

(228)

(629)

Restructuring costs








  - direct

(14)

- 

- 


(14)

(1)

(15)

  - indirect

(15)

- 

- 


(15)

(4)

(19)

Litigation and conduct costs

(25)

- 

- 


(25)

- 

(25)









Total expenses

(854)

- 

- 


(854)

(436)

(1,290)









Operating profit before impairment losses

682 

8 

5 


695 

95 

790 

Impairment losses

(282)

- 

- 


(282)

(7)

(289)









Operating profit

400 

8 

5 


413 

88 

501 









Memo: operating profit - adjusted (1)

454 

8 

5 


467 

93 

560 

Key metrics
















Return on equity (2)

7.4%

53.9%

- 


7.6%

8.9%

7.8%

Return on equity - adjusted (1,2)

8.4%

53.9%

- 


8.6%

9.4%

8.7%

Net interest margin

2.61%

3.18%

0.49%


2.53%

3.33%

2.69%

Cost:income ratio

56%

- 

- 


55%

82%

62%

Cost:income ratio - adjusted (1)

52%

- 

- 


52%

81%

59%

Loan impairment charge as % of gross customer








  loans and advances

0.7%

- 

- 


0.7%

0.1%

0.6%

 

30 June 2013


Allocated from







International



Commercial

Private

Total


UK Corporate

Banking

Centre


Banking

Banking

CPB

Capital and balance sheet

£bn

£bn

£bn


£bn

£bn

£bn









Loans and advances to customers (gross)

80.9 

0.3 

4.6 


85.8 

17.1 

102.9 

Loan impairment provisions

(1.5)

- 

- 


(1.5)

(0.1)

(1.6)









Net loans and advances to customers

79.4 

0.3 

4.6 


84.3 

17.0 

101.3 

Total funded assets

83.9 

0.3 

4.6 


88.8 

21.3 

110.1 

Risk elements in lending

4.4 

- 

- 


4.4 

0.3 

4.7 

Customer deposits (excluding repos)

91.0 

- 

- 


91.0 

38.9 

129.9 

Loan:deposit ratio (excluding repos)

87%

- 

- 


93%

44%

78%

Provision coverage (3)

34%

- 

- 


35%

39%

35%

Risk-weighted assets

66.7 

0.2 

0.3 


67.2 

12.5 

79.7 

 

Notes:

(1)

Excluding restructuring costs and litigation and conduct costs.

(2)

Return on equity is based on divisional operating profit after tax divided by average notional equity (based on 12% of the monthly average of divisional RWAs; previously - 10% of RWAe).

(3)

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


 

Commercial & Private Banking 









Quarter ended 30 June 2013


Allocated from







International



Commercial

Private

Total


UK Corporate

Banking

Centre


Banking

Banking

CPB

Income statement

£m

£m

£m


£m

£m

£m









Net interest income

479 

2 

3 


484 

159 

643 

Non-interest income

323 

2 

- 


325 

110 

435 









Total income

802 

4 

3 


809 

269 

1,078 









Direct expenses








  - staff

(127)

- 

- 


(127)

(88)

(215)

  - other

(77)

- 

- 


(77)

(17)

(94)

Indirect expenses

(205)

- 

- 


(205)

(112)

(317)

Restructuring costs








  - direct

(7)

- 

- 


(7)

(1)

(8)

  - indirect

(9)

- 

- 


(9)

(2)

(11)









Total expenses

(425)

- 

- 


(425)

(220)

(645)









Operating profit before impairment losses

377 

4 

3 


384 

49 

433 

Impairment losses

(155)

- 

- 


(155)

(2)

(157)









Operating profit

222 

4 

3 


229 

47 

276 









Memo: operating profit - adjusted (1)

238 

4 

3 


245 

50 

295 

Key metrics
















Return on equity (2)

8.3%

52.4%

- 


8.5%

9.4%

8.6%

Return on equity - adjusted (1,2)

8.9%

52.4%

- 


9.1%

10.0%

9.2%

Net interest margin

2.71%

3.15%

1.35%


2.63%

3.34%

2.77%

Cost:income ratio

53%

- 

- 


53%

82%

60%

Cost:income ratio - adjusted (1)

51%

- 

- 


51%

81%

58%

Loan impairment charge as % of gross customer








  loans and advances

0.8%

- 

- 


0.7%

- 

0.6%

 

30 June 2013


Allocated from







International



Commercial

Private

Total


UK Corporate

Banking

Centre


Banking

Banking

CPB

Capital and balance sheet

£bn

£bn

£bn


£bn

£bn

£bn









Loans and advances to customers (gross)

80.9 

0.3 

4.6 


85.8 

17.1 

102.9 

Loan impairment provisions

(1.5)

- 

- 


(1.5)

(0.1)

(1.6)









Net loans and advances to customers

79.4 

0.3 

4.6 


84.3 

17.0 

101.3 

Total funded assets

83.9 

0.3 

4.6 


88.8 

21.3 

110.1 

Risk elements in lending

4.4 

- 

- 


4.4 

0.3 

4.7 

Customer deposits (excluding repos)

91.0 

- 

- 


91.0 

38.9 

129.9 

Loan:deposit ratio (excluding repos)

87%

- 

- 


93%

44%

78%

Provision coverage (3)

34%

- 

- 


35%

39%

35%

Risk-weighted assets

66.7 

0.2 

0.3 


67.2 

12.5 

79.7 

 

Notes:

(1)

Excluding restructuring costs.

(2)

Return on equity is based on divisional operating profit after tax divided by average notional equity (based on 12% of the monthly average of divisional RWAs; previously - 10% of RWAe).

(3)

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

 


 

Corporate & Institutional Banking






Quarter ended 31 March 2014


Allocated from




International




UK Corporate

Banking

Markets

Total

Income statement

£m

£m

£m

£m






Net interest income

23 

155 

1 

179 

Non-interest income

17 

246 

909 

1,172 






Total income

40 

401 

910 

1,351 






Direct expenses





  - staff

(5)

(62)

(205)

(272)

  - other

(5)

(18)

(90)

(113)

Indirect expenses

(5)

(242)

(341)

(588)

Restructuring costs





  - direct

- 

(1)

(14)

(15)

  - indirect

- 

7 

(31)

(24)






Total expenses

(15)

(316)

(681)

(1,012)






Operating profit before impairment losses

25 

85 

229 

339 

Impairment recoveries/(losses)

6 

(10)

(2)

(6)






Operating profit

31 

75 

227 

333 






Memo: operating profit - adjusted (1)

31 

69 

272 

372 

Key metrics










Return on equity (2)

11.8%

4.2%

6.0%

5.6%

Return on equity - adjusted (1,2)

11.8%

3.9%

7.2%

6.2%

Net interest margin

1.20%

1.35%

0.01%

0.85%

Cost:income ratio

38%

79%

75%

75%

Cost:income ratio - adjusted (1)

38%

80%

70%

72%

Loan impairment charge as % of gross customer loans and advances

(0.3%)

0.1%

- 

- 

 

31 March 2014


Allocated from




International




UK Corporate

Banking

Markets

Total

Capital and balance sheet

£bn

£bn

£bn

£bn






Loans and advances to customers (gross)

7.5 

38.3 

24.9 

70.7 

Loan impairment provisions

- 

(0.1)

(0.1)

(0.2)






Net loans and advances to customers

7.5 

38.2 

24.8 

70.5 

Total funded assets

7.8 

50.6 

228.2 

286.6 

Risk elements in lending

- 

- 

0.1 

0.1 

Customer deposits (excluding repos)

3.9 

33.6 

19.6 

57.1 

Loan:deposit ratio (excluding repos)

192%

114%

127%

123%

Provision coverage (3)

-

- 

80%

199%

Risk-weighted assets

5.9 

46.9 

87.4 

140.2 

 

Notes:

(1)

Excluding restructuring costs.

(2)

Return on equity is based on divisional operating profit after tax divided by average notional equity (based on 12% of the monthly average of divisional RWAs; previously - 10% of RWAe).

(3)

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


 

Corporate & Institutional Banking






Year ended 31 December 2013


Allocated from




International




UK Corporate

Banking

Markets

Total

Income statement

£m

£m

£m

£m






Net interest income

124 

660 

(100)

684 

Non-interest income

33 

1,128 

3,163 

4,324 






Total income

157 

1,788 

3,063 

5,008 






Direct expenses





  - staff

(16)

(313)

(655)

(984)

  - other

(2)

(92)

(596)

(690)

Indirect expenses

(23)

(979)

(1,891)

(2,893)

Restructuring costs





  - direct

- 

(11)

(74)

(85)

  - indirect

(1)

(98)

(18)

(117)

Litigation and conduct costs

- 

- 

(2,441)

(2,441)






Total expenses

(42)

(1,493)

(5,675)

(7,210)






Operating profit/(loss) before impairment losses

115 

295 

(2,612)

(2,202)

Impairment losses

(359)

(229)

(92)

(680)






Operating (loss)/profit

(244)

66 

(2,704)

(2,882)






Memo: operating (loss)/profit - adjusted (1)

(243)

175 

(171)

(239)

Impairments pertaining to the creation of RCR

(285)

(52)

(18)

(355)

Key metrics










Return on equity (2)

(24.7%)

1.1%

(19.9%)

(12.9%)

Return on equity - adjusted (1,2)

(24.6%)

2.5%

(1.3%)

(1.1%)

Net interest margin

1.52%

1.48%

(0.31%)

0.80%

Cost:income ratio

27%

84%

185%

144%

Cost:income ratio - adjusted (1)

26%

77%

103%

91%

Loan impairment charge as % of gross customer loans and advances

4.5%

0.6%

0.4%

1.0%

 

31 December 2013


Allocated from




International




UK Corporate

Banking

Markets

Total

Capital and balance sheet

£bn

£bn

£bn

£bn






Loans and advances to customers (gross)

8.0 

35.7 

25.4 

69.1 

Loan impairment provisions

(0.4)

(0.3)

(0.2)

(0.9)






Net loans and advances to customers

7.6 

35.4 

25.2 

68.2 

Total funded assets

7.6 

48.2 

212.8 

268.6 

Risk elements in lending

0.8 

0.5 

0.3 

1.6 

Customer deposits (excluding repos)

4.0 

39.3 

21.5 

64.8 

Loan:deposit ratio (excluding repos)

190%

90%

117%

105%

Provision coverage (3)

50%

60%

85%

59%

Risk-weighted assets

7.2 

48.7 

64.5 

120.4 

 

Notes:

(1)

Excluding restructuring costs and litigation and conduct costs.

(2)

Return on equity is based on divisional operating profit after tax divided by average notional equity (based on 12% of the monthly average of divisional RWAs; previously - 10% of RWAe).

(3)

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


 

Corporate & Institutional Banking






Half year ended 30 June 2013


Allocated from




International




UK Corporate

Banking

Markets

Total

Income statement

£m

£m

£m

£m






Net interest income

59 

350 

(95)

314 

Non-interest income

16 

572 

1,806 

2,394 






Total income

75 

922 

1,711 

2,708 






Direct expenses





  - staff

(8)

(164)

(408)

(580)

  - other

(1)

(39)

(244)

(284)

Indirect expenses

(11)

(462)

(852)

(1,325)

Restructuring costs





  - direct

- 

(4)

(33)

(37)

  - indirect

- 

(37)

(9)

(46)

Litigation and conduct costs

- 

- 

(410)

(410)






Total expenses

(20)

(706)

(1,956)

(2,682)






Operating profit/(loss) before impairment losses

55 

216 

(245)

26 

Impairment losses

(10)

(154)

(59)

(223)






Operating profit/(loss)

45 

62 

(304)

(197)






Memo: operating profit - adjusted (1)

45 

103 

148 

296 

Key metrics










Return on equity (2)

11.5%

1.9%

(4.0%)

(1.6%)

Return on equity - adjusted (1,2)

11.5%

2.9%

2.0%

2.5%

Net interest margin

1.45%

1.58%

(0.55%)

0.72%

Cost:income ratio

27%

77%

114%

99%

Cost:income ratio - adjusted (1)

27%

72%

88%

81%

Loan impairment charge as % of gross customer loans and advances

0.2%

0.8%

0.4%

0.6%

 

30 June 2013


Allocated from




International




UK Corporate

Banking

Markets

Total

Capital and balance sheet

£bn

£bn

£bn

£bn






Loans and advances to customers (gross)

8.5 

40.3 

28.2 

77.0 

Loan impairment provisions

- 

(0.4)

(0.2)

(0.6)






Net loans and advances to customers

8.5 

39.9 

28.0 

76.4 

Total funded assets

8.6 

51.6 

267.9 

328.1 

Risk elements in lending

0.7 

0.5 

0.3 

1.5 

Customer deposits (excluding repos)

6.9 

46.0 

26.4 

79.3 

Loan:deposit ratio (excluding repos)

123%

87%

106%

96%

Provision coverage (3)

- 

75%

78%

45%

Risk-weighted assets

7.0 

49.5 

86.8 

143.3 

 

Notes:

(1)

Excluding restructuring costs and litigation and conduct costs.

(2)

Return on equity is based on divisional operating profit after tax divided by average notional equity (based on 12% of the monthly average of divisional RWAs; previously - 10% of RWAe).

(3)

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


 

Corporate & Institutional Banking






Quarter ended 30 June 2013


Allocated from




International




UK Corporate

Banking

Markets

Total

Income statement

£m

£m

£m

£m






Net interest income

29 

170 

(57)

142 

Non-interest income

9 

289 

796 

1,094 






Total income

38 

459 

739 

1,236 






Direct expenses





  - staff

(4)

(81)

(162)

(247)

  - other

- 

(18)

(136)

(154)

Indirect expenses

(6)

(230)

(421)

(657)

Restructuring costs





  - direct

- 

(2)

(22)

(24)

  - indirect

- 

(22)

2 

(20)

Litigation and conduct costs

- 

- 

(385)

(385)






Total expenses

(10)

(353)

(1,124)

(1,487)






Operating profit/(loss) before impairment losses

28 

106 

(385)

(251)

Impairment losses

(2)

(99)

(43)

(144)






Operating profit/(loss)

26 

7 

(428)

(395)






Memo: operating profit/(loss) - adjusted  (1)

26 

31 

(23)

34 

Key metrics










Return on equity (2)

12.8%

0.7%

(11.9%)

(6.8%)

Return on equity - adjusted (1,2)

12.8%

1.9%

(0.7%)

0.6%

Net interest margin

1.45%

1.56%

(0.69%)

0.67%

Cost:income ratio

26%

77%

152%

120%

Cost:income ratio - adjusted (1)

26%

72%

97%

86%

Loan impairment charge as % of gross customer loans and advances

0.1%

1.0%

0.6%

0.7%

 

30 June 2013


Allocated from




International




UK Corporate

Banking

Markets

Total

Capital and balance sheet

£bn

£bn

£bn

£bn






Loans and advances to customers (gross)

8.5 

40.3 

28.2 

77.0 

Loan impairment provisions

- 

(0.4)

(0.2)

(0.6)






Net loans and advances to customers

8.5 

39.9 

28.0 

76.4 

Total funded assets

8.6 

51.6 

267.9 

328.1 

Risk elements in lending

0.7 

0.5 

0.3 

1.5 

Customer deposits (excluding repos)

6.9 

46.0 

26.4 

79.3 

Loan:deposit ratio (excluding repos)

123%

87%

106%

96%

Provision coverage (3)

- 

75%

78%

45%

Risk-weighted assets

7.0 

49.5 

86.8 

143.3 

 

Notes:

(1)

Excluding restructuring costs and litigation and conduct costs.

(2)

Return on equity is based on divisional operating profit after tax divided by average notional equity (based on 12% of the monthly average of divisional RWAs; previously - 10% of RWAe).

(3)

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

 


 

Central items

 

Quarter ended 31 March 2014




Net impact








of revised


Unallocated




Previously


Treasury

Allocated

cost




reported


allocations

to CPB

allocations


Total (1)


£m


£m

£m

£m


£m









Central items not allocated

(76)


154 

(4)

(69)


5 

 









Year ended 31 December 2013




Net impact








of revised


Unallocated




Previously


Treasury

Allocated

cost




reported


allocations

to CPB

allocations


Total (1)


£m


£m

£m

£m


£m









Central items not allocated

(89)


660 

(12)

88 


647 

 

Half year ended 30 June 2013




Net impact








of revised


Unallocated




Previously


Treasury

Allocated

cost




reported


allocations

to CPB

allocations


Total (1)


£m


£m

£m

£m


£m









Central items not allocated

104 


385 

(5)

69 


553 

 

Quarter ended 30 June 2013




Net impact








of revised


Unallocated




Previously


Treasury

Allocated

cost




reported


allocations

to CPB

allocations


Total (1)


£m


£m

£m

£m


£m









Central items not allocated

140 


173 

(3)

42 


352 

 

Note:

(1)

Central items includes unallocated costs which principally comprise profits on the sale of the Treasury AFS portfolio (quarter ended 31 March 2014 - £203 million, year ended 31 December 2013 - £724 million, half year ended 30 June 2013 - £460 million and quarter ended 30 June 2013 - £105 million) and profit and loss on hedges which do not qualify for hedge accounting..

 


 

 

 

 

 

 

 

 

Appendix 3

 

Allocation of previous divisions to new customer franchises

 


 

Allocation of previous divisions to new customer franchises

 

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


 

UK Retail 









Quarter ended 31 March 2014





Net impact






Transfer

Transfer

of revised

Reclassification




Previously

to/(from)

to/(from)

Treasury

of one-off and


Allocated


reported

Functions

Services

allocations

other items


to UK PBB

Income statement

£m

£m

£m

£m

£m


£m









Net interest income

994 

- 

- 

(22)

- 


972 

Non-interest income

246 

- 

- 

- 

- 


246 









Total income

1,240 

- 

- 

(22)

- 


1,218 









Direct expenses








  - staff

(165)

5 

6 

- 

(8)


(162)

  - other

(148)

27 

1 

- 

- 


(120)

Indirect expenses

(335)

(36)

(66)

- 

- 


(437)

Restructuring costs








  - indirect

- 

- 

- 

- 

11 


11 









Total expenses

(648)

(4)

(59)

- 

3 


(708)









Operating profit before impairment losses

592 

(4)

(59)

(22)

3 


510 

Impairment losses

(59)

- 

- 

- 

- 


(59)









Operating profit

533 

(4)

(59)

(22)

3 


451 









Memo: operating profit - adjusted (1)







440 

Key metrics
















Net interest margin

3.59%






3.51%

Cost:income ratio

52%






58%

Cost:income ratio - adjusted (1)

n/a






59%

 

31 March 2014


Previously


Allocated


reported

Adjustments

to UK PBB

Capital and balance sheet

£bn

£bn

£bn





Loans and advances to customers (gross)

113.8 


113.8 

Loan impairment provisions

(1.9)


(1.9)





Net loans and advances to customers

111.9 


111.9 

Funded assets

118.4 


118.4 

Risk elements in lending

3.3 


3.3 

Customer deposits (excluding repos)

114.8 


114.8 

Loan:deposit ratio (excluding repos)

98%


98%

Provision coverage (2)

58%


58%

Risk-weighted assets (3)

43.9 

(7.1)

36.8 

 

Notes:

(1)

Excluding restructuring costs.

(2)

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

(3)

RWAs include an adjustment from long-term conservative average secured mortgage probability of default methodology to the lower point-in-time basis required for regulatory reporting.

 

 

UK Retail 









Year ended 31 December 2013





Net impact






Transfer

Transfer

of revised

Reclassification




Previously

to/(from)

to/(from)

Treasury

of one-off and


Allocated


reported

Functions

Services

allocations

other items


to UK PBB

Income statement

£m

£m

£m

£m

£m


£m









Net interest income

3,979 

- 

- 

(96)

- 


3,883 

Non-interest income

958 

- 

- 

- 

- 


958 









Total income

4,937 

- 

- 

(96)

- 


4,841 









Direct expenses








  - staff

(684)

24 

22 

- 

(36)


(674)

  - other

(560)

117 

1 

- 

- 


(442)

Indirect expenses

(1,426)

(177)

(34)

- 

- 


(1,637)

Restructuring costs








  - direct

- 

- 

- 

- 

(118)


(118)

  - indirect

- 

- 

- 

- 

(94)


(94)

Litigation and conduct costs

- 

- 

- 

- 

(860)


(860)









Total expenses

(2,670)

(36)

(11)

- 

(1,108)


(3,825)









Operating profit before impairment losses

2,267 

(36)

(11)

(96)

(1,108)


1,016 

Impairment losses

(324)

- 

- 

- 

- 


(324)









Operating profit

1,943 

(36)

(11)

(96)

(1,108)


692 









Memo: operating profit - adjusted (1)







1,764 

Key metrics
















Net interest margin

3.57%






3.48%

Cost:income ratio

54%






79%

Cost:income ratio - adjusted (1)

n/a






57%

 

31 December 2013


Previously


Allocated


reported

Adjustments

to UK PBB

Capital and balance sheet

£bn

£bn

£bn





Loans and advances to customers (gross)

113.2 


113.2 

Loan impairment provisions

(2.1)


(2.1)





Net loans and advances to customers

111.1 


111.1 

Funded assets

117.6 


117.6 

Risk elements in lending

3.6 


3.6 

Customer deposits (excluding repos)

114.9 


114.9 

Loan:deposit ratio (excluding repos)

97%


97%

Provision coverage (2)

59%


59%

Risk-weighted assets (3)

43.9 

(6.5)

37.4 

 

Notes:

(1)

Excluding restructuring costs and litigation and conduct costs.

(2)

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

(3)

RWAs include an adjustment from long-term conservative average secured mortgage probability of default methodology to the lower point-in-time basis required for regulatory reporting.

 

 

UK Retail 









Half year ended 30 June 2013





Net impact






Transfer

Transfer

of revised

Reclassification




Previously

to/(from)

to/(from)

Treasury

of one-off and


Allocated


reported

Functions

Services

allocations

other items


to UK PBB

Income statement

£m

£m

£m

£m

£m


£m









Net interest income

1,952 

- 

- 

(55)

- 


1,897 

Non-interest income

451 

- 

- 

- 

- 


451 









Total income

2,403 

- 

- 

(55)

- 


2,348 









Direct expenses








  - staff

(347)

14 

12 

- 

(18)


(339)

  - other

(224)

52 

1 

- 

- 


(171)

Indirect expenses

(709)

(75)

(18)

- 

- 


(802)

Restructuring costs








  - direct

- 

- 

- 

- 

(70)


(70)

  - indirect

- 

- 

- 

- 

(34)


(34)

Litigation and conduct costs

- 

- 

- 

- 

(160)


(160)









Total expenses

(1,280)

(9)

(5)

- 

(282)


(1,576)









Operating profit before impairment losses

1,123 

(9)

(5)

(55)

(282)


772 

Impairment losses

(169)

- 

- 

- 

- 


(169)









Operating profit

954 

(9)

(5)

(55)

(282)


603 









Memo: operating profit - adjusted (1)







867 

Key metrics
















Net interest margin

3.53%






3.42%

Cost:income ratio

53%






67%

Cost:income ratio - adjusted (1)

n/a






56%

 

30 June 2013


Previously


Allocated


reported

Adjustments

to UK PBB

Capital and balance sheet

£bn

£bn

£bn





Loans and advances to customers (gross)

112.2 


112.2 

Loan impairment provisions

(2.5)


(2.5)





Net loans and advances to customers

109.7 


109.7 

Funded assets

116.1 


116.1 

Risk elements in lending

4.3 


4.3 

Customer deposits (excluding repos)

111.6 


111.6 

Loan:deposit ratio (excluding repos)

98%


98%

Provision coverage (2)

58%


58%

Risk-weighted assets (3)

44.1 

(6.1)

38.0 

 

Notes:

(1)

Excluding restructuring costs and litigation and conduct costs.

(2)

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

(3)

RWAs include an adjustment from long-term conservative average secured mortgage probability of default methodology to the lower point-in-time basis required for regulatory reporting.

 

 

UK Retail 









Quarter ended 30 June 2013





Net impact






Transfer

Transfer

of revised

Reclassification




Previously

to/(from)

to/(from)

Treasury

of one-off and


Allocated


reported

Functions

Services

allocations

other items


to UK PBB

Income statement

£m

£m

£m

£m

£m


£m









Net interest income

987 

- 

- 

(22)

- 


965 

Non-interest income

225 

- 

- 

- 

- 


225 









Total income

1,212 

- 

- 

(22)

- 


1,190 









Direct expenses








  - staff

(175)

7 

6 

- 

(9)


(171)

  - other

(112)

28 

1 

- 

- 


(83)

Indirect expenses

(359)

(41)

(9)

- 

- 


(409)

Restructuring costs








  - direct

- 

- 

- 

- 

(47)


(47)

  - indirect

- 

- 

- 

- 

(19)


(19)

Litigation and conduct costs

- 

- 

- 

- 

(160)


(160)









Total expenses

(646)

(6)

(2)

- 

(235)


(889)









Operating profit before impairment losses

566 

(6)

(2)

(22)

(235)


301 

Impairment losses

(89)

- 

- 

- 

- 


(89)









Operating profit

477 

(6)

(2)

(22)

(235)


212 









Memo: operating profit - adjusted (1)







438 

Key metrics
















Net interest margin

3.56%






3.48%

Cost:income ratio

53%






75%

Cost:income ratio - adjusted (1)

n/a






56%

 

30 June 2013


Previously


Allocated


reported

Adjustments

to UK PBB

Capital and balance sheet

£bn

£bn

£bn





Loans and advances to customers (gross)

112.2 


112.2 

Loan impairment provisions

(2.5)


(2.5)





Net loans and advances to customers

109.7 


109.7 

Funded assets

116.1 


116.1 

Risk elements in lending

4.3 


4.3 

Customer deposits (excluding repos)

111.6 


111.6 

Loan:deposit ratio (excluding repos)

98%


98%

Provision coverage (2)

58%


58%

Risk-weighted assets (3)

44.1 

(6.1)

38.0 

 

Notes:

(1)

Excluding restructuring costs and litigation and conduct costs.

(2)

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

(3)

RWAs include an adjustment from long-term conservative average secured mortgage probability of default methodology to the lower point-in-time basis required for regulatory reporting.

 


 

UK Corporate











Quarter ended 31 March 2014





Net impact








Transfer

Transfer

of revised

Reclassification


Allocated to


Previously

to/(from)

to/(from)

Treasury

of one-off and



Commercial



reported

Functions

Services

allocations

other items


UK PBB

Banking

CIB

Income statement

£m

£m

£m

£m

£m


£m

£m

£m











Net interest income

706 

- 

- 

(55)

- 


152 

476 

23 

Non-interest income

397 

- 

- 

- 

- 


93 

287 

17 











Total income

1,103 

- 

- 

(55)

- 


245 

763 

40 











Direct expenses










  - staff

(221)

8 

20 

- 

(8)


(63)

(133)

(5)

  - other

(93)

5 

10 

- 

- 


(10)

(63)

(5)

Indirect expenses

(235)

(17)

(48)

- 

- 


(83)

(212)

(5)

Restructuring costs










  - indirect

- 

- 

- 

- 

(2)


(1)

(1)

- 











Total expenses

(549)

(4)

(18)

- 

(10)


(157)

(409)

(15)











Operating profit before










  impairment losses

554 

(4)

(18)

(55)

(10)


88 

354 

25 

Impairment (losses)/recoveries

(63)

- 

- 

- 

- 


(29)

(40)

6 











Operating profit

491 

(4)

(18)

(55)

(10)


59 

314 

31 











Memo: operating profit










  - adjusted (1)







60 

315 

31 

Key metrics




















Net interest margin

3.13%






4.34%

2.79%

1.20%

Cost:income ratio

50%






64%

54%

38%

Cost:income ratio - adjusted (1)

n/a






64%

53%

38%









31 March 2014




Allocated to



Previously


Commercial




reported

UK PBB

Banking

CIB

Capital and balance sheet


£bn

£bn

£bn

£bn






Loans and advances to customers (gross)


103.2 

14.6 

81.1 

7.5 

Loan impairment provisions


(2.3)

(1.0)

(1.3)

- 






Net loans and advances to customers


100.9 

13.6 

79.8 

7.5 

Funded assets


106.7 

14.4 

84.5 

7.8 

Risk elements in lending


4.6 

1.2 

3.4 

- 

Customer deposits (excluding repos)


121.2 

29.8 

87.5 

3.9 

Loan:deposit ratio (excluding repos)


83%

46%

91%

192%

Provision coverage (2)


49%

85%

38%

-

Risk-weighted assets


80.4 

11.7 

62.8 

5.9 

 

Notes:

(1)

Excluding restructuring costs.

(2)

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

 

 

UK Corporate











Year ended 31 December 2013





Net impact








Transfer

Transfer

of revised

Reclassification


Allocated to


Previously

to/(from)

to/(from)

Treasury

of one-off and



Commercial



reported

Functions

Services

allocations

other items


UK PBB

Banking

CIB

Income statement

£m

£m

£m

£m

£m


£m

£m

£m











Net interest income

2,874 

- 

- 

(209)

- 


607 

1,934 

124 

Non-interest income

1,593 

- 

- 

- 

- 


365 

1,195 

33 











Total income

4,467 

- 

- 

(209)

- 


972 

3,129 

157 











Direct expenses










  - staff

(865)

30 

82 

- 

(36)


(259)

(514)

(16)

  - other

(437)

27 

54 

- 

- 


(82)

(272)

(2)

Indirect expenses

(917)

(166)

(138)

- 

- 


(312)

(886)

(23)

Restructuring costs










  - direct

- 

- 

- 

- 

(18)


- 

(18)

- 

  - indirect

- 

- 

- 

- 

(53)


(15)

(37)

(1)

Litigation and conduct costs

- 

- 

- 

- 

(247)


- 

(247)

- 











Total expenses

(2,219)

(109)

(2)

- 

(354)


(668)

(1,974)

(42)











Operating profit before










  impairment losses

2,248 

(109)

(2)

(209)

(354)


304 

1,155 

115 

Impairment losses

(1,188)

- 

- 

- 

- 


(177)

(652)

(359)











Operating profit/(loss)

1,060 

(109)

(2)

(209)

(354)


127 

503 

(244)











Memo: operating profit/(loss)










  - adjusted (1)







142 

805 

(243)

Key metrics




















Net interest margin

3.07%






4.14%

2.73%

1.52%

Cost:income ratio

50%






69%

63%

27%

Cost:income ratio - adjusted (1)

n/a






67%

53%

26%









31 December 2013




Allocated to



Previously


Commercial




reported

UK PBB

Banking

CIB

Capital and balance sheet


£bn

£bn

£bn

£bn







Loans and advances to customers (gross)


102.5 

14.6 

79.9 

8.0 

Loan impairment provisions


(2.8)

(0.9)

(1.5)

(0.4)







Net loans and advances to customers


99.7 

13.7 

78.4 

7.6 

Funded assets


105.0 

14.6 

82.8 

7.6 

Risk elements in lending


6.2 

1.1 

4.3 

0.8 

Customer deposits (excluding repos)


124.7 

30.0 

90.7 

4.0 

Loan:deposit ratio (excluding repos)


80%

46%

86%

190%

Provision coverage (2)


46%

76%

35%

50%

Risk-weighted assets


86.1 

13.8 

65.1 

7.2 

 

Notes:

(1)

Excluding restructuring costs and litigation and conduct costs.

(2)

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

 

 

UK Corporate











Half year ended 30 June 2013





Net impact








Transfer

Transfer

of revised

Reclassification


Allocated to


Previously

to/(from)

to/(from)

Treasury

of one-off and



Commercial



reported

Functions

Services

allocations

other items


UK PBB

Banking

CIB

Income statement

£m

£m

£m

£m

£m


£m

£m

£m











Net interest income

1,421 

- 

- 

(134)

- 


303 

925 

59 

Non-interest income

805 

- 

- 

- 

- 


178 

611 

16 











Total income

2,226 

- 

- 

(134)

- 


481 

1,536 

75 











Direct expenses










  - staff

(431)

15 

42 

- 

(18)


(130)

(254)

(8)

  - other

(216)

13 

28 

- 

- 


(29)

(145)

(1)

Indirect expenses

(447)

(39)

(71)

- 

- 


(145)

(401)

(11)

Restructuring costs










  - direct

- 

- 

- 

- 

(14)


- 

(14)

- 

  - indirect

- 

- 

- 

- 

(20)


(5)

(15)

- 

Litigation and conduct costs

- 

- 

- 

- 

(25)


- 

(25)

- 











Total expenses

(1,094)

(11)

(1)

- 

(77)


(309)

(854)

(20)











Operating profit before










  impairment losses

1,132 

(11)

(1)

(134)

(77)


172 

682 

55 

Impairment losses

(379)

- 

- 

- 

- 


(87)

(282)

(10)











Operating profit

753 

(11)

(1)

(134)

(77)


85 

400 

45 











Memo: operating profit










  - adjusted (1)







90 

454 

45 

Key metrics




















Net interest margin

3.03%






4.10%

2.61%

1.45%

Cost:income ratio

49%






64%

56%

27%

Cost:income ratio - adjusted (1)

n/a






63%

52%

27%









30 June 2013




Allocated to



Previously


Commercial




reported

UK PBB

Banking

CIB

Capital and balance sheet


£bn

£bn

£bn

£bn







Loans and advances to customers (gross)


104.6 

15.2 

80.9 

8.5 

Loan impairment provisions


(2.4)

(0.9)

(1.5)

- 







Net loans and advances to customers


102.2 

14.3 

79.4 

8.5 

Funded assets


107.6 

15.1 

83.9 

8.6 

Risk elements in lending


6.2 

1.1 

4.4 

0.7 

Customer deposits (excluding repos)


126.2 

28.3 

91.0 

6.9 

Loan:deposit ratio (excluding repos)


81%

51%

87%

123%

Provision coverage (2)


39%

77%

34%

- 

Risk-weighted assets


88.1 

14.4 

66.7 

7.0 

 

Notes:

(1)

Excluding restructuring costs and litigation and conduct costs.

(2)

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

 

 

UK Corporate











Quarter ended 30 June 2013





Net impact








Transfer

Transfer

of revised

Reclassification


Allocated to


Previously

to/(from)

to/(from)

Treasury

of one-off and



Commercial



reported

Functions

Services

allocations

other items


UK PBB

Banking

CIB

Income statement

£m

£m

£m

£m

£m


£m

£m

£m











Net interest income

715 

- 

- 

(54)

- 


153 

479 

29 

Non-interest income

427 

- 

- 

- 

- 


95 

323 

9 











Total income

1,142 

- 

- 

(54)

- 


248 

802 

38 











Direct expenses










  - staff

(214)

7 

21 

- 

(9)


(64)

(127)

(4)

  - other

(113)

9 

14 

- 

- 


(13)

(77)

- 

Indirect expenses

(226)

(23)

(37)

- 

- 


(75)

(205)

(6)

Restructuring costs










  - direct

- 

- 

- 

- 

(7)


- 

(7)

- 

  - indirect

- 

- 

- 

- 

(12)


(3)

(9)

- 











Total expenses

(553)

(7)

(2)

- 

(28)


(155)

(425)

(10)











Operating profit before










  impairment losses

589 

(7)

(2)

(54)

(28)


93 

377 

28 

Impairment losses

(194)

- 

- 

- 

- 


(37)

(155)

(2)











Operating profit

395 

(7)

(2)

(54)

(28)


56 

222 

26 











Memo: operating profit










  - adjusted (1)







59 

238 

26 

Key metrics




















Net interest margin

3.05%






4.13%

2.71%

1.45%

Cost:income ratio

48%






63%

53%

26%

Cost:income ratio - adjusted (1)

n/a






61%

51%

26%

 








30 June 2013




Allocated to



Previously


Commercial




reported

UK PBB

Banking

CIB

Capital and balance sheet


£bn

£bn

£bn

£bn






Loans and advances to customers (gross)


104.6 

15.2 

80.9 

8.5 

Loan impairment provisions


(2.4)

(0.9)

(1.5)

- 






Net loans and advances to customers


102.2 

14.3 

79.4 

8.5 

Funded assets


107.6 

15.1 

83.9 

8.6 

Risk elements in lending


6.2 

1.1 

4.4 

0.7 

Customer deposits (excluding repos)


126.2 

28.3 

91.0 

6.9 

Loan:deposit ratio (excluding repos)


81%

51%

87%

123%

Provision coverage (2)


39%

77%

34%

- 

Risk-weighted assets


88.1 

14.4 

66.7 

7.0 

 

Notes:

(1)

Excluding restructuring costs.

(2)

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

 


 

Wealth









Quarter ended 31 March 2014





Net impact






Transfer

Transfer

of revised

Reclassification


Revised


Previously

to/(from)

to/(from)

Treasury

of one-off and


Private


reported

Functions

Services

allocations

other items


Banking

Income statement

£m

£m

£m

£m

£m


£m









Net interest income

171 

- 

- 

(1)

- 


170 

Non-interest income

103 

- 

- 

- 

- 


103 









Total income

274 

- 

- 

(1)

- 


273 









Direct expenses








  - staff

(94)

6 

10 

- 

(2)


(80)

  - other

(30)

6 

6 

- 

- 


(18)

Indirect expenses

(73)

(10)

(18)

- 

- 


(101)









Total expenses

(197)

2 

(2)

- 

(2)


(199)









Operating profit before impairment losses

77 

2 

(2)

(1)

(2)


74 

Impairment recoveries

1 

- 

- 

- 

- 


1 









Operating profit

78 

2 

(2)

(1)

(2)


75 









Memo: operating profit - adjusted







75 

Key metrics
















Net interest margin

3.72%






3.70%

Cost:income ratio

72%






73%

Cost:income ratio - adjusted

n/a






73%

 



Private


Banking

31 March 2014

£bn



Capital and balance sheet


Loans and advances to customers (gross)

16.8 

Loan impairment provisions

(0.1)



Net loans and advances to customers

16.7 

Funded assets

21.1 

Risk elements in lending

0.3 

Customer deposits (excluding repos)

36.6 

Loan:deposit ratio (excluding repos)

45%

Provision coverage (1)

45%

Risk-weighted assets

12.0 

 

Note:

(1)

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

 

 

Wealth









Year ended 31 December 2013





Net impact






Transfer

Transfer

of revised

Reclassification


Revised


Previously

to/(from)

to/(from)

Treasury

of one-off and


Private


reported

Functions

Services

allocations

other items


Banking

Income statement

£m

£m

£m

£m

£m


£m









Net interest income

674 

- 

- 

(16)

- 


658 

Non-interest income

419 

- 

- 

- 

- 


419 









Total income

1,093 

- 

- 

(16)

- 


1,077 









Direct expenses








  - staff

(384)

29 

45 

- 

(8)


(318)

  - other

(122)

15 

24 

- 

- 


(83)

Indirect expenses

(337)

(64)

(74)

- 

- 


(475)

Restructuring costs








  - direct

- 

- 

- 

- 

(18)


(18)

  - indirect

- 

- 

- 

- 

(9)


(9)

Litigation and conduct costs

- 

- 

- 

- 

(206)


(206)









Total expenses

(843)

(20)

(5)

- 

(241)


(1,109)









Operating profit/(loss) before impairment losses

250 

(20)

(5)

(16)

(241)


(32)

Impairment losses

(29)

- 

- 

- 

- 


(29)









Operating profit/(loss)

221 

(20)

(5)

(16)

(241)


(61)









Memo: operating profit - adjusted (1)







172 

Key metrics
















Net interest margin

3.56%






3.47%

Cost:income ratio

77%






103%

Cost:income ratio - adjusted (1)

n/a






81%

 



Private


 Banking

31 December 2013

£bn



Capital and balance sheet


Loans and advances to customers (gross)

16.8 

Loan impairment provisions

(0.1)



Net loans and advances to customers

16.7 

Funded assets

21.0 

Risk elements in lending

0.3 

Customer deposits (excluding repos)

37.2 

Loan:deposit ratio (excluding repos)

45%

Provision coverage (2)

43%

Risk-weighted assets

12.0 

 

Notes:

(1)

Excluding restructuring costs and litigation and conduct costs.

(2)

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

 

 

Wealth









Half year ended 30 June 2013





Net impact 






Transfer

Transfer

of revised

Reclassification


Revised


Previously

to/(from)

to/(from)

Treasury

of one-off and


Private


reported

Functions

Services

allocations

other items


Banking

Income statement

£m

£m

£m

£m

£m


£m









Net interest income

331 

- 

- 

(14)

- 


317 

Non-interest income

214 

- 

- 

- 

- 


214 









Total income

545 

- 

- 

(14)

- 


531 









Direct expenses








  - staff

(207)

15 

23 

- 

(4)


(173)

  - other

(51)

9 

12 

- 

- 


(30)

Indirect expenses

(168)

(24)

(36)

- 

- 


(228)

Restructuring costs








  - direct

- 

- 

- 

- 

(1)


(1)

  - indirect

- 

- 

- 

- 

(4)


(4)









Total expenses

(426)

- 

(1)

- 

(9)


(436)









Operating profit before impairment losses

119 

- 

(1)

(14)

(9)


95 

Impairment losses

(7)

- 

- 

- 

- 


(7)









Operating profit

112 

- 

(1)

(14)

(9)


88 









Memo: operating profit - adjusted (1)







93 

Key metrics
















Net interest margin

3.48%






3.33%

Cost:income ratio

78%






82%

Cost:income ratio - adjusted (1)

n/a






81%

 



Private


Banking

30 June 2013

£bn



Capital and balance sheet


Loans and advances to customers (gross)

17.1 

Loan impairment provisions

(0.1)



Net loans and advances to customers

17.0 

Funded assets

21.3 

Risk elements in lending

0.3 

Customer deposits (excluding repos)

38.9 

Loan:deposit ratio (excluding repos)

44%

Provision coverage (2)

39%

Risk-weighted assets

12.5 

 

Notes:

(1)

Excluding restructuring costs.

(2)

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

 

 

Wealth









Quarter ended 30 June 2013





Net impact






Transfer

Transfer

of revised

Reclassification


Revised


Previously

to/(from)

to/(from)

Treasury

of one-off and


Private


reported

Functions

Services

allocations

other items


Banking

Income statement

£m

£m

£m

£m

£m


£m









Net interest income

162 

- 

- 

(3)

- 


159 

Non-interest income

110 

- 

- 

- 

- 


110 









Total income

272 

- 

- 

(3)

- 


269 









Direct expenses








  - staff

(104)

7 

11 

- 

(2)


(88)

  - other

(28)

5 

6 

- 

- 


(17)

Indirect expenses

(82)

(12)

(18)

- 

- 


(112)

Restructuring costs








  - direct

- 

- 

- 

- 

(1)


(1)

  - indirect

- 

- 

- 

- 

(2)


(2)









Total expenses

(214)

- 

(1)

- 

(5)


(220)









Operating profit before impairment losses

58 

- 

(1)

(3)

(5)


49 

Impairment losses

(2)

- 

- 

- 

- 


(2)









Operating profit

56 

- 

(1)

(3)

(5)


47 









Memo: operating profit - adjusted (1)







50 

Key metrics
















Net interest margin

3.41%






3.34%

Cost:income ratio

79%






82%

Cost:income ratio - adjusted (1)

n/a






81%

 



Private


Banking

30 June 2013

£bn



Capital and balance sheet


Loans and advances to customers (gross)

17.1 

Loan impairment provisions

(0.1)



Net loans and advances to customers

17.0 

Funded assets

21.3 

Risk elements in lending

0.3 

Customer deposits (excluding repos)

38.9 

Loan:deposit ratio (excluding repos)

44%

Provision coverage (2)

39%

Risk-weighted assets

12.5 

 

Notes:

(1)

Excluding restructuring costs.

(2)

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

 


 

International Banking










Quarter ended 31 March 2014





Net impact 







Transfer

Transfer

of revised

Reclassification


Allocated to


Previously

to/(from)

to/(from)

Treasury

of one-off and


Commercial



reported

Functions

Services

allocations

other items


Banking

CIB

Income statement

£m

£m

£m

£m

£m


£m

£m










Net interest income

180 

- 

- 

(24)

- 


1 

155 

Non-interest income

248 

- 

- 

- 

- 


2 

246 










Total income

428 

- 

- 

(24)

- 


3 

401 










Direct expenses









  - staff

(109)

15 

32 

- 

- 


- 

(62)

  - other

(35)

3 

14 

- 

- 


- 

(18)

Indirect expenses

(164)

(15)

(63)

- 

- 


- 

(242)

Restructuring costs









  - direct

- 

- 

- 

- 

(1)


- 

(1)

  - indirect

- 

- 

- 

- 

7 


- 

7 










Total expenses

(308)

3 

(17)

- 

6 


- 

(316)










Operating profit before impairment losses

120 

3 

(17)

(24)

6 


3 

85 

Impairment losses

(10)

- 

- 

- 

- 


- 

(10)










Operating profit

110 

3 

(17)

(24)

6 


3 

75 










Memo: operating profit - adjusted (1)







3 

69 

Key metrics


















Net interest margin

1.55%






2.33%

1.35%

Cost:income ratio

72%






- 

79%

Cost:income ratio - adjusted (1)

n/a






- 

80%

 





31 March 2014



Allocated to


Previously

Commercial



reported

Banking

CIB

Capital and balance sheet

£bn

£bn

£bn





Loans and advances to customers (gross)

38.6 

0.3 

38.3 

Loan impairment provisions

(0.1)

- 

(0.1)





Net loans and advances to customers

38.5 

0.3 

38.2 

Funded assets

50.9 

0.3 

50.6 

Customer deposits (excluding repos)

33.7 

0.1 

33.6 

Loan:deposit ratio (excluding repos)

114%

300%

114%

Risk-weighted assets

47.1 

0.2 

46.9 

 

Note:

(1)

Excluding restructuring costs.

 

 

International Banking










Year ended 31 December 2013





Net impact







Transfer

Transfer

of revised

Reclassification


Allocated to


Previously

to/(from)

to/(from)

Treasury

of one-off and


Commercial



reported

Functions

Services

allocations

other items


Banking

CIB

Income statement

£m

£m

£m

£m

£m


£m

£m










Net interest income

713 

- 

- 

(44)

- 


9 

660 

Non-interest income

1,135 

- 

- 

- 

- 


7 

1,128 










Total income

1,848 

- 

- 

(44)

- 


16 

1,788 










Direct expenses









  - staff

(496)

55 

127 

- 

- 


(1)

(313)

  - other

(167)

7 

68 

- 

- 


- 

(92)

Indirect expenses

(677)

(103)

(199)

- 

- 


- 

(979)

Restructuring costs









  - direct

- 

- 

- 

- 

(11)


- 

(11)

  - indirect

- 

- 

- 

- 

(98)


- 

(98)










Total expenses

(1,340)

(41)

(4)

- 

(109)


(1)

(1,493)










Operating profit before impairment losses

508 

(41)

(4)

(44)

(109)


15 

295 

Impairment losses

(229)

- 

- 

- 

- 


- 

(229)










Operating profit

279 

(41)

(4)

(44)

(109)


15 

66 










Memo: operating profit - adjusted (1)







15 

175 

Key metrics


















Net interest margin

1.59%






3.15%

1.48%

Cost:income ratio

73%






6%

84%

Cost:income ratio - adjusted (1)

n/a






6%

77%

 





31 December 2013



Allocated to


Previously

Commercial



reported

Banking

CIB

Capital and balance sheet

£bn

£bn

£bn





Loans and advances to customers (gross)

36.0 

0.3 

35.7 

Loan impairment provisions

(0.3)

- 

(0.3)





Net loans and advances to customers

35.7 

0.3 

35.4 

Funded assets

48.5 

0.3 

48.2 

Risk elements in lending

0.5 

- 

0.5 

Customer deposits (excluding repos)

39.3 

- 

39.3 

Loan:deposit ratio (excluding repos)

91%

- 

90%

Provision coverage (2)

69%

- 

69%

Risk-weighted assets

49.0 

0.3 

48.7 

 

Notes:

(1)

Excluding restructuring costs.

(2)

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

 

 

International Banking










Half year ended 30 June 2013





Net impact







Transfer

Transfer

of revised

Reclassification


Allocated to


Previously

to/(from)

to/(from)

Treasury

of one-off and


Commercial



reported

Functions

Services

allocations

other items


Banking

CIB

Income statement

£m

£m

£m

£m

£m


£m

£m










Net interest income

374 

- 

- 

(20)

- 


4 

350 

Non-interest income

576 

- 

- 

- 

- 


4 

572 










Total income

950 

- 

- 

(20)

- 


8 

922 










Direct expenses









  - staff

(253)

28 

61 

- 

- 


- 

(164)

  - other

(70)

4 

27 

- 

- 


- 

(39)

Indirect expenses

(337)

(34)

(91)

- 

- 


- 

(462)

Restructuring costs









  - direct

- 

- 

- 

- 

(4)


- 

(4)

  - indirect

- 

- 

- 

- 

(37)


- 

(37)










Total expenses

(660)

(2)

(3)

- 

(41)


- 

(706)










Operating profit before impairment losses

290 

(2)

(3)

(20)

(41)


8 

216 

Impairment losses

(154)

- 

- 

- 

- 


- 

(154)










Operating profit

136 

(2)

(3)

(20)

(41)


8 

62 










Memo: operating profit - adjusted (1)







8 

103 

Key metrics


















Net interest margin

1.68%






3.18%

1.58%

Cost:income ratio

69%






- 

77%

Cost:income ratio - adjusted (1)

n/a






- 

72%

 





30 June 2013



Allocated to


Previously

Commercial



reported

Banking

CIB

Capital and balance sheet

£bn

£bn

£bn





Loans and advances to customers (gross)

40.6 

0.3 

40.3 

Loan impairment provisions

(0.4)

- 

(0.4)





Net loans and advances to customers

40.2 

0.3 

39.9 

Funded assets

51.9 

0.3 

51.6 

Risk elements in lending

0.5 

- 

0.5 

Customer deposits (excluding repos)

46.0 

- 

46.0 

Loan:deposit ratio (excluding repos)

87%

- 

87%

Provision coverage (2)

75%

- 

75%

Risk-weighted assets

49.7 

0.2 

49.5 

 

Notes:

(1)

Excluding restructuring costs.

(2)

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

 

 

International Banking










Quarter ended 30 June 2013





Net impact 







Transfer

Transfer

of revised

Reclassification


Allocated to


Previously

to/(from)

to/(from)

Treasury

of one-off and


Commercial



reported

Functions

Services

allocations

other items


Banking

CIB

Income statement

£m

£m

£m

£m

£m


£m

£m










Net interest income

177 

- 

- 

(5)

- 


2 

170 

Non-interest income

291 

- 

- 

- 

- 


2 

289 










Total income

468 

- 

- 

(5)

- 


4 

459 










Direct expenses









  - staff

(128)

15 

32 

- 

- 


- 

(81)

  - other

(32)

2 

12 

- 

- 


- 

(18)

Indirect expenses

(167)

(18)

(45)

- 

- 


- 

(230)

Restructuring costs









  - direct

- 

- 

- 

- 

(2)


- 

(2)

  - indirect

- 

- 

- 

- 

(22)


- 

(22)










Total expenses

(327)

(1)

(1)

- 

(24)


- 

(353)










Operating profit before impairment losses

141 

(1)

(1)

(5)

(24)


4 

106 

Impairment losses

(99)

- 

- 

- 

- 


- 

(99)










Operating profit

42 

(1)

(1)

(5)

(24)


4 

7 










Memo: operating profit - adjusted (1)







4 

31 

Key metrics


















Net interest margin

1.62%






3.15%

1.56%

Cost:income ratio

70%






- 

77%

Cost:income ratio - adjusted (1)

n/a






- 

72%

 





30 June 2013



Allocated to


Previously

Commercial



reported

Banking

CIB

Capital and balance sheet

£bn

£bn

£bn





Loans and advances to customers (gross)

40.6 

0.3 

40.3 

Loan impairment provisions

(0.4)

- 

(0.4)





Net loans and advances to customers

40.2 

0.3 

39.9 

Funded assets

51.9 

0.3 

51.6 

Risk elements in lending

0.5 

- 

0.5 

Customer deposits (excluding repos)

46.0 

- 

46.0 

Loan:deposit ratio (excluding repos)

87%

- 

87%

Provision coverage (2)

75%

- 

75%

Risk-weighted assets

49.7 

0.2 

49.5 

 

Notes:

(1)

Excluding restructuring costs.

(2)

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

 


 

Ulster Bank









Quarter ended 31 March 2014





Net impact






Transfer

Transfer

of revised

Reclassification




Previously

to/(from)

to/(from)

treasury

of one-off and


Revised


reported

Functions

Services

allocations

other items


Ulster Bank

Income statement

£m

£m

£m

£m

£m


£m









Net interest income

159 

- 

- 

(5)

- 


154 

Non-interest income

47 

- 

- 

- 

- 


47 









Total income

206 

- 

- 

(5)

- 


201 









Direct expenses








  - staff

(63)

- 

- 

- 

- 


(63)

  - other

(17)

- 

- 

- 

- 


(17)

Indirect expenses

(62)

- 

(1)

- 

- 


(63)

Restructuring costs








  - indirect

- 

- 

- 

- 

(2)


(2)









Total expenses

(142)

- 

(1)

- 

(2)


(145)









Operating profit before impairment losses

64 

- 

(1)

(5)

(2)


56 

Impairment losses

(47)

- 

- 

- 

- 


(47)









Operating profit

17 

- 

(1)

(5)

(2)


9 









Memo: operating profit - adjusted (1)







11 

Key metrics
















Net interest margin

2.36%






2.29%

Cost:income ratio

69%






72%

Cost:income ratio - adjusted (1)

n/a






71%

 



Ulster Bank

31 March 2014

£bn



Capital and balance sheet


Loans and advances to customers (gross)

26.6 

Loan impairment provisions

(3.4)



Net loans and advances to customers

23.2 

Funded assets

26.0 

Risk elements in lending

4.7 

Customer deposits (excluding repos)

21.1 

Loan:deposit ratio (excluding repos)

110%

Provision coverage (2)

72%

Risk-weighted assets

28.7 

 

Notes:

(1)

Excluding restructuring costs.

(2)

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

 

 

Ulster Bank









Year ended 31 December 2013





Net impact






Transfer

Transfer

of revised

Reclassification




Previously

to/(from)

to/(from)

Treasury

of one-off and


Revised


reported

Functions

Services

allocations

other items


Ulster Bank

Income statement

£m

£m

£m

£m

£m


£m









Net interest income

631  

-  

-  

(12)

-  


619  

Non-interest income

240  

-  

-  

-  

-  


240  









Total income

871  

-  

-  

(12)

-  


859  









Direct expenses








  - staff

(239)

-  

-  

-  

-  


(239)

  - other

(63)

-  

-  

-  

-  


(63)

Indirect expenses

(252)

(11)

-  

-  

-  


(263)

Restructuring costs








  - direct

-  

-  

-  

-  

(27)


(27)

  - indirect

-  

-  

-  

-  

(12)


(12)

Litigation and conduct costs

-  

-  

-  

-  

(90)


(90)









Total expenses

(554)

(11)

-  

-  

(129)


(694)









Operating profit before impairment losses

317  

(11)

-  

(12)

(129)


165  

Impairment losses

(1,774)

-  

-  

-  

-  


(1,774)









Operating loss

(1,457)

(11)

-  

(12)

(129)


(1,609)









Memo: operating loss - adjusted (1)







(1,480)

Key metrics
















Net interest margin

1.91%






1.88%

Cost:income ratio

64%






81%

Cost:income ratio - adjusted (1)

n/a






66%

 



Ulster Bank

31 December 2013

£bn



Capital and balance sheet


Loans and advances to customers (gross)

31.4 

Loan impairment provisions

(5.4)



Net loans and advances to customers

26.0 

Funded assets

28.0 

Risk elements in lending

8.5 

Customer deposits (excluding repos)

21.7 

Loan:deposit ratio (excluding repos)

120%

Provision coverage (2)

64%

Risk-weighted assets

30.7 

 

Notes:

(1)

Excluding restructuring costs and litigation and conduct costs.

(2)

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

 

 

Ulster Bank









Half year ended 30 June 2013





Net impact






Transfer

Transfer

of revised

Reclassification




Previously

to/(from)

to/(from)

Treasury

of one-off and


Revised


reported

Functions

Services

allocations

other items


Ulster Bank

Income statement

£m

£m

£m

£m

£m


£m









Net interest income

308 

- 

- 

(6)

- 


302 

Non-interest income

142 

- 

- 

- 

- 


142 









Total income

450 

- 

- 

(6)

- 


444 









Direct expenses








  - staff

(124)

- 

- 

- 

- 


(124)

  - other

(27)

- 

- 

- 

- 


(27)

Indirect expenses

(125)

- 

- 

- 

- 


(125)

Restructuring costs








  - direct

- 

- 

- 

- 

(15)


(15)

  - indirect

- 

- 

- 

- 

(6)


(6)

Litigation and conduct costs

- 

- 

- 

- 

(25)


(25)









Total expenses

(276)

- 

- 

- 

(46)


(322)









Operating profit before impairment losses

174 

- 

- 

(6)

(46)


122 

Impairment losses

(503)

- 

- 

- 

- 


(503)









Operating loss

(329)

- 

- 

(6)

(46)


(381)









Memo: operating loss - adjusted (1)







(335)

Key metrics
















Net interest margin

1.85%






1.82%

Cost:income ratio

61%






73%

Cost:income ratio - adjusted (1)

n/a






62%

 



Ulster Bank

30 June 2013

£bn



Capital and balance sheet


Loans and advances to customers (gross)

32.9 

Loan impairment provisions

(4.4)



Net loans and advances to customers

28.5 

Funded assets

30.3 

Risk elements in lending

8.6 

Customer deposits (excluding repos)

23.1 

Loan:deposit ratio (excluding repos)

123%

Provision coverage (2)

52%

Risk-weighted assets

33.9 

 

Notes:

(1)

Excluding restructuring costs and litigation and conduct costs.

(2)

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

 

 

Ulster Bank









Quarter ended 30 June 2013





Net impact






Transfer

Transfer

of revised

Reclassification




Previously

to/(from)

to/(from)

Treasury

of one-off and


Revised


reported

Functions

Services

allocations

other items


Ulster Bank

Income statement

£m

£m

£m

£m

£m


£m









Net interest income

154 

- 

- 

(2)

- 


152 

Non-interest income

88 

- 

- 

- 

- 


88 









Total income

242 

- 

- 

(2)

- 


240 









Direct expenses








  - staff

(67)

- 

- 

- 

- 


(67)

  - other

(12)

- 

- 

- 

- 


(12)

Indirect expenses

(65)

- 

- 

- 

- 


(65)

Restructuring costs








  - direct

- 

- 

- 

- 

(14)


(14)

  - indirect

- 

- 

- 

- 

(4)


(4)

Litigation and conduct costs

- 

- 

- 

- 

(25)


(25)









Total expenses

(144)

- 

- 

- 

(43)


(187)









Operating profit before impairment losses

98 

- 

- 

(2)

(43)


53 

Impairment losses

(263)

- 

- 

- 

- 


(263)









Operating loss

(165)

- 

- 

(2)

(43)


(210)









Memo: operating loss - adjusted (1)







(167)

Key metrics
















Net interest margin

1.85%






1.84%

Cost:income ratio

60%






78%

Cost:income ratio - adjusted (1)

n/a






60%

 



Ulster Bank

30 June 2013

£bn



Capital and balance sheet


Loans and advances to customers (gross)

32.9 

Loan impairment provisions

(4.4)



Net loans and advances to customers

28.5 

Funded assets

30.3 

Risk elements in lending

8.6 

Customer deposits (excluding repos)

23.1 

Loan:deposit ratio (excluding repos)

123%

Provision coverage (2)

52%

Risk-weighted assets

33.9 

 

Notes:

(1)

Excluding restructuring costs and litigation and conduct costs.

(2)

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

 


 

Citizens Financial Group (£ Sterling)









Quarter ended 31 March 2014





Net impact





Previously

Transfer

Transfer

of revised

Reclassification




reported

to/(from)

to/(from)

Treasury

of one-off and




as US R&C

Functions

Services

allocations

other items


CFG

Income statement

£m

£m

£m

£m

£m


£m









Net interest income

488 

- 

- 

- 

- 


488 

Non-interest income

229 

- 

- 

- 

- 


229 









Total income

717 

- 

- 

- 

- 


717 









Direct expenses








  - staff

(251)

- 

- 

- 

- 


(251)

  - other

(249)

- 

- 

- 

- 


(249)









Total expenses

(500)

- 

- 

- 

- 


(500)









Operating profit before impairment losses

217 

- 

- 

- 

- 


217 

Impairment losses

(73)

- 

- 

- 

- 


(73)









Operating profit

144 

- 

- 

- 

- 


144 









Key metrics
















Net interest margin

2.94%






2.94%

Cost:income ratio

70%






70%

 



CFG

31 March 2014

£bn



Capital and balance sheet


Loans and advances to customers (gross)

53.2 

Loan impairment provisions

(0.5)



Net loans and advances to customers

52.7 

Funded assets

75.7 

Risk elements in lending

1.3 

Customer deposits (excluding repos)

54.9 

Loan:deposit ratio (excluding repos)

96%

Provision coverage (1)

41%

Risk-weighted assets

61.3 

 

Note:

(1)

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

 

 

Citizens Financial Group (£ Sterling)









Year ended 31 December 2013





Net impact





Previously

Transfer

Transfer

of revised

Reclassification




reported

to/(from)

to/(from)

Treasury

of one-off and




as US R&C

Functions

Services

allocations

other items


CFG

Income statement

£m

£m

£m

£m

£m


£m









Net interest income

1,916 

- 

- 

(24)

- 


1,892 

Non-interest income

1,073 

- 

- 

- 

- 


1,073 









Total income

2,989 

- 

- 

(24)

- 


2,965 









Direct expenses








  - staff

(1,091)

- 

- 

- 

- 


(1,091)

  - other

(984)

- 

- 

- 

(2)


(986)

Indirect expenses

(111)

5 

(5)

- 

- 


(111)

Restructuring costs








  - direct

- 

- 

- 

- 

(16)


(16)









Total expenses

(2,186)

5 

(5)

- 

(18)


(2,204)









Operating profit before impairment losses

803 

5 

(5)

(24)

(18)


761 

Impairment losses

(156)

- 

- 

- 

- 


(156)









Operating profit

647 

5 

(5)

(24)

(18)


605 









Memo: operating profit - adjusted (1)







621 

Key metrics
















Net interest margin

2.95%






2.91%

Cost:income ratio

73%






74%

Cost:income ratio - adjusted (1)

n/a






74%

 



CFG

31 December 2013

£bn



Capital and balance sheet


Loans and advances to customers (gross)

50.6  

Loan impairment provisions

(0.3)



Net loans and advances to customers

50.3  

Funded assets

71.3  

Risk elements in lending

1.0  

Customer deposits (excluding repos)

55.1  

Loan:deposit ratio (excluding repos)

91%

Provision coverage (2)

26%

Risk-weighted assets

56.1  

 

Notes:

(1)

Excluding restructuring costs.

(2)

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

 

 

Citizens Financial Group (£ Sterling)









Half year ended 30 June 2013





Net impact





Previously

Transfer

Transfer

of revised

Reclassification




reported

to/(from)

to/(from)

Treasury

of one-off and




as US R&C

Functions

Services

allocations

other items


CFG

Income statement

£m

£m

£m

£m

£m


£m









Net interest income

944 

- 

- 

(5)

- 


939 

Non-interest income

570 

- 

- 

- 

- 


570 









Total income

1,514 

- 

- 

(5)

- 


1,509 









Direct expenses








  - staff

(572)

- 

- 

- 

- 


(572)

  - other

(481)

- 

- 

- 

(1)


(482)

Indirect expenses

(47)

1 

(2)

- 

- 


(48)

Restructuring costs








  - direct

- 

- 

- 

- 

(3)


(3)









Total expenses

(1,100)

1 

(2)

- 

(4)


(1,105)









Operating profit before impairment losses

414 

1 

(2)

(5)

(4)


404 

Impairment losses

(51)

- 

- 

- 

- 


(51)









Operating profit

363 

1 

(2)

(5)

(4)


353 









Memo: operating profit - adjusted (1)







356 

Key metrics
















Net interest margin

2.92%






2.90%

Cost:income ratio

73%






73%

Cost:income ratio - adjusted (1)

n/a






73%

 



CFG

30 June 2013

£bn



Capital and balance sheet


Loans and advances to customers (gross)

53.3  

Loan impairment provisions

(0.3)



Net loans and advances to customers

53.0  

Funded assets

74.1  

Risk elements in lending

1.1  

Customer deposits (excluding repos)

60.1  

Loan:deposit ratio (excluding repos)

88%

Provision coverage (2)

23%

Risk-weighted assets

58.2  

 

Notes:

(1)

Excluding restructuring costs.

(2)

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

 

 

Citizens Financial Group (£ Sterling)









Quarter ended 30 June 2013





Net impact





Previously

Transfer

Transfer

of revised

Reclassification




reported

to/(from)

to/(from)

Treasury

of one-off and




as US R&C

Functions

Services

allocations

other items


CFG

Income statement

£m

£m

£m

£m

£m


£m









Net interest income

473 

- 

- 

(4)

- 


469 

Non-interest income

278 

- 

- 

- 

- 


278 









Total income

751 

- 

- 

(4)

- 


747 









Direct expenses








  - staff

(286)

- 

- 

- 

- 


(286)

  - other

(233)

- 

- 

- 

- 


(233)

Indirect expenses

(26)

- 

(1)

- 

- 


(27)

Restructuring costs








  - direct

- 

- 

- 

- 

(2)


(2)









Total expenses

(545)

- 

(1)

- 

(2)


(548)









Operating profit before impairment losses

206 

- 

(1)

(4)

(2)


199 

Impairment losses

(32)

- 

- 

- 

- 


(32)









Operating profit

174 

- 

(1)

(4)

(2)


167 









Memo: operating profit - adjusted (1)







169 

Key metrics
















Net interest margin

2.91%






2.89%

Cost:income ratio

73%






73%

Cost:income ratio - adjusted (1)

n/a






73%

 



CFG

30 June 2013

£bn



Capital and balance sheet


Loans and advances to customers (gross)

53.3 

Loan impairment provisions

(0.3)



Net loans and advances to customers

53.0 

Funded assets

74.1 

Risk elements in lending

1.1 

Customer deposits (excluding repos)

60.1 

Loan:deposit ratio (excluding repos)

88%

Provision coverage (2)

23%

Risk-weighted assets

58.2 

 

Notes:

(1)

Excluding restructuring costs.

(2)

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


 

Citizens Financial Group (US dollar)









Quarter ended 31 March 2014





Net impact





Previously

Transfer

Transfer

of revised

Reclassification




reported

to/(from)

to/(from)

Treasury

of one-off and




as US R&C

Functions

Services

allocations

other items


CFG

Income statement

$m

$m

$m

$m

$m


$m









Net interest income

809 

- 

- 

- 

- 


809 

Non-interest income

378 

- 

- 

- 

- 


378 









Total income

1,187 

- 

- 

- 

- 


1,187 









Direct expenses








  - staff

(416)

- 

- 

- 

- 


(416)

  - other

(412)

- 

- 

- 

- 


(412)









Total expenses

(828)

- 

- 

- 

- 


(828)









Operating profit before impairment losses

359 

- 

- 

- 

- 


359 

Impairment losses

(121)

- 

- 

- 

- 


(121)









Operating profit

238 

- 

- 

- 

- 


238 









Key metrics
















Net interest margin

2.94%






2.94%

Cost:income ratio

70%






70%

 



CFG

31 March 2014

$bn



Capital and balance sheet


Loans and advances to customers (gross)

88.8 

Loan impairment provisions

(0.9)



Net loans and advances to customers

87.9 

Funded assets

126.2 

Risk elements in lending

2.2 

Customer deposits (excluding repos)

91.6 

Loan:deposit ratio (excluding repos)

96%

Provision coverage (1)

41%

Risk-weighted assets

102.2 

 

Note:

(1)

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

 

 

Citizens Financial Group (US dollar)









Year ended 31 December 2013





Net impact





Previously

Transfer

Transfer

of revised

Reclassification




reported

to/(from)

to/(from)

Treasury

of one-off and




as US R&C

Functions

Services

allocations

other items


CFG

Income statement

$m

$m

$m

$m

$m


$m









Net interest income

2,998 

- 

- 

(38)

- 


2,960 

Non-interest income

1,679 

- 

- 

- 

- 


1,679 









Total income

4,677 

- 

- 

(38)

- 


4,639 









Direct expenses








  - staff

(1,707)

- 

- 

- 

- 


(1,707)

  - other

(1,540)

- 

- 

- 

(4)


(1,544)

Indirect expenses

(174)

8 

(7)

- 

- 


(173)

Restructuring costs








  - direct

- 

- 

- 

- 

(24)


(24)









Total expenses

(3,421)

8 

(7)

- 

(28)


(3,448)









Operating profit before impairment losses

1,256 

8 

(7)

(38)

(28)


1,191 

Impairment losses

(244)

- 

- 

- 

- 


(244)









Operating profit

1,012 

8 

(7)

(38)

(28)


947 









Memo: operating profit - adjusted (1)







971 

Key metrics
















Net interest margin

2.95%






2.91%

Cost:income ratio

73%






74%

Cost:income ratio - adjusted (1)

n/a






74%

 





CFG

31 December 2013

$bn



Capital and balance sheet


Loans and advances to customers (gross)

83.6 

Loan impairment provisions

(0.4)



Net loans and advances to customers

83.2 

Funded assets

117.9 

Risk elements in lending

1.7 

Customer deposits (excluding repos)

91.1 

Loan:deposit ratio (excluding repos)

91%

Provision coverage (2)

26%

Risk-weighted assets

92.8 

 

Notes:

(1)

Excluding restructuring costs.

(2)

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

 

 

Citizens Financial Group (US dollar)









Half year ended 30 June 2013





Net impact





Previously

Transfer

Transfer

of revised

Reclassification




reported

to/(from)

to/(from)

Treasury

of one-off and




as US R&C

Functions

Services

allocations

other items


CFG

Income statement

$m

$m

$m

$m

$m


$m









Net interest income

1,457 

- 

- 

(8)

- 


1,449 

Non-interest income

881 

- 

- 

- 

- 


881 









Total income

2,338 

- 

- 

(8)

- 


2,330 









Direct expenses








  - staff

(883)

- 

- 

- 

- 


(883)

  - other

(744)

- 

- 

- 

- 


(744)

Indirect expenses

(73)

2 

(3)

- 

- 


(74)

Restructuring costs








  - direct

- 

- 

- 

- 

(5)


(5)









Total expenses

(1,700)

2 

(3)

- 

(5)


(1,706)









Operating profit before impairment losses

638 

2 

(3)

(8)

(5)


624 

Impairment losses

(78)

- 

- 

- 

- 


(78)









Operating profit

560 

2 

(3)

(8)

(5)


546 









Memo: operating profit - adjusted (1)







551 

Key metrics
















Net interest margin

2.92%






2.90%

Cost:income ratio

73%






73%

Cost:income ratio - adjusted (1)

n/a






73%

 





CFG

30 June 2013

$bn



Capital and balance sheet


Loans and advances to customers (gross)

81.0 

Loan impairment provisions

(0.4)



Net loans and advances to customers

80.6 

Funded assets

112.6 

Risk elements in lending

1.7 

Customer deposits (excluding repos)

91.4 

Loan:deposit ratio (excluding repos)

88%

Provision coverage (2)

23%

Risk-weighted assets

88.4 

 

Notes:

(1)

Excluding restructuring costs.

(2)

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

 

 

Citizens Financial Group (US dollar)









Quarter ended 30 June 2013





Net impact





Previously

Transfer

Transfer

of revised

Reclassification




reported

to/(from)

to/(from)

Treasury

of one-off and




as US R&C

Functions

Services

allocations

other items


CFG

Income statement

$m

$m

$m

$m

$m


$m









Net interest income

726 

- 

- 

(6)

- 


720 

Non-interest income

428 

- 

- 

- 

- 


428 









Total income

1,154 

- 

- 

(6)

- 


1,148 









Direct expenses








  - staff

(439)

- 

- 

- 

- 


(439)

  - other

(360)

- 

- 

- 

1 


(359)

Indirect expenses

(39)

- 

(1)

- 

- 


(40)

Restructuring costs








  - direct

- 

- 

- 

- 

(3)


(3)









Total expenses

(838)

- 

(1)

- 

(2)


(841)









Operating profit before impairment losses

316 

- 

(1)

(6)

(2)


307 

Impairment losses

(48)

- 

- 

- 

- 


(48)









Operating profit

268 

- 

(1)

(6)

(2)


259 









Memo: operating profit - adjusted (1)







262 

Key metrics
















Net interest margin

2.91%






2.89%

Cost:income ratio

73%






73%

Cost:income ratio - adjusted (1)

n/a






73%

 





CFG

30 June 2013

$bn



Capital and balance sheet


Loans and advances to customers (gross)

81.0 

Loan impairment provisions

(0.4)



Net loans and advances to customers

80.6 

Funded assets

112.6 

Risk elements in lending

1.7 

Customer deposits (excluding repos)

91.4 

Loan:deposit ratio (excluding repos)

88%

Provision coverage (2)

23%

Risk-weighted assets

88.4 

 

Notes:

(1)

Excluding restructuring costs.

(2)

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


 

Markets









Quarter ended 31 March 2014





Net impact






Transfer

Transfer

of revised

Reclassification




Previously

to/(from)

to/(from)

Treasury

of one-off and


Allocated


reported

Functions

Services

allocations

other items


to CIB

Income statement

£m

£m

£m

£m

£m


£m









Net interest income

48 

- 

- 

(47)

- 


1 

Non-interest income

909 

- 

- 

- 

- 


909 









Total income

957 

- 

- 

(47)

- 


910 









Direct expenses








  - staff

(305)

37 

65 

- 

(2)


(205)

  - other

(153)

3 

60 

- 

- 


(90)

Indirect expenses

(179)

(32)

(130)

- 

- 


(341)

Restructuring costs








  - direct

- 

- 

- 

- 

(14)


(14)

  - indirect

- 

- 

- 

- 

(31)


(31)









Total expenses

(637)

8 

(5)

- 

(47)


(681)









Operating profit before impairment losses

320 

8 

(5)

(47)

(47)


229 

Impairment losses

(2)

- 

- 

- 

- 


(2)









Operating profit

318 

8 

(5)

(47)

(47)


227 









Memo: operating profit - adjusted (1)







272 

Key metrics
















Net interest margin

0.66%






0.01%

Cost:income ratio

67%






75%

Cost:income ratio - adjusted (1)

n/a






70%

 

Allocated 


to CIB

31 March 2014

£bn



Capital and balance sheet


Loans and advances to customers (gross)

24.9 

Loan impairment provisions

(0.1)



Net loans and advances to customers

24.8 

Funded assets

228.2 

Risk elements in lending

0.1 

Customer deposits (excluding repos)

19.6 

Loan:deposit ratio (excluding repos)

127%

Provision coverage (2)

80%

Risk-weighted assets

87.4 

 

 

Notes:

(1)

Excluding restructuring costs.

(2)

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

 

 

Markets









Year ended 31 December 2013





Net impact






Transfer

Transfer

of revised

Reclassification




Previously

to/(from)

to/(from)

Treasury

of one-off and


Allocated 


reported

Functions

Services

allocations

other items


to CIB

Income statement

£m

£m

£m

£m

£m


£m









Net interest income

159 

- 

- 

(259)

- 


(100)

Non-interest income

3,163 

- 

- 

- 

- 


3,163 









Total income

3,322 

- 

- 

(259)

- 


3,063 









Direct expenses








  - staff

(1,086)

180 

259 

- 

(8)


(655)

  - other

(710)

41 

339 

- 

(266)


(596)

Indirect expenses

(814)

(267)

(810)

- 

- 


(1,891)

Restructuring costs








  - direct

- 

- 

- 

- 

(74)


(74)

  - indirect

- 

- 

- 

- 

(18)


(18)

Litigation and conduct costs

- 

- 

- 

- 

(2,441)


(2,441)









Total expenses

(2,610)

(46)

(212)

- 

(2,807)


(5,675)









Operating profit/(loss) before impairment losses

712 

(46)

(212)

(259)

(2,807)


(2,612)

Impairment losses

(92)

- 

- 

- 

- 


(92)









Operating profit/(loss)

620 

(46)

(212)

(259)

(2,807)


(2,704)









Memo: operating loss - adjusted (1)







(171)

Key metrics
















Net interest margin

0.48%






(0.31%)

Cost:income ratio

79%






185%

Cost:income ratio - adjusted (1)

n/a






103%

 

Allocated


to CIB

31 December 2013

£bn



Capital and balance sheet


Loans and advances to customers (gross)

25.4 

Loan impairment provisions

(0.2)



Net loans and advances to customers

25.2 

Funded assets

212.8 

Risk elements in lending

0.3 

Customer deposits (excluding repos)

21.5 

Loan:deposit ratio (excluding repos)

117%

Provision coverage (2)

85%

Risk-weighted assets

64.5 

 

 

Notes:

(1)

Excluding restructuring costs and litigation and conduct costs.

(2)

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

 

 

Markets









Half year ended 30 June 2013





Net impact






Transfer

Transfer

of revised

Reclassification




Previously

to/(from)

to/(from)

Treasury

of one-off and


Allocated


reported

Functions

Services

allocations

other items


to CIB

Income statement

£m

£m

£m

£m

£m


£m









Net interest income

56 

- 

- 

(151)

- 


(95)

Non-interest income

1,806 

- 

- 

- 

- 


1,806 









Total income

1,862 

- 

- 

(151)

- 


1,711 









Direct expenses








  - staff

(640)

93 

143 

- 

(4)


(408)

  - other

(384)

18 

181 

- 

(59)


(244)

Indirect expenses

(408)

(115)

(329)

- 

- 


(852)

Restructuring costs








  - direct

- 

- 

- 

- 

(33)


(33)

  - indirect

- 

- 

- 

- 

(9)


(9)

Litigation and conduct costs

- 

- 

- 

- 

(410)


(410)









Total expenses

(1,432)

(4)

(5)

- 

(515)


(1,956)









Operating profit/(loss) before impairment losses

430 

(4)

(5)

(151)

(515)


(245)

Impairment losses

(59)

- 

- 

- 

- 


(59)









Operating profit/(loss)

371 

(4)

(5)

(151)

(515)


(304)









Memo: operating profit - adjusted (1)







148 

Key metrics
















Net interest margin

0.32%






(0.55%)

Cost:income ratio

77%






114%

Cost:income ratio - adjusted (1)

n/a






88%

 

Allocated


to CIB

30 June 2013

£bn



Capital and balance sheet


Loans and advances to customers (gross)

28.2 

Loan impairment provisions

(0.2)



Net loans and advances to customers

28.0 

Funded assets

267.9 

Risk elements in lending

0.3 

Customer deposits (excluding repos)

26.4 

Loan:deposit ratio (excluding repos)

106%

Provision coverage (2)

78%

Risk-weighted assets

86.8 

 

 

Notes:

(1)

Excluding restructuring costs and litigation and conduct costs.

(2)

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

 

 

Markets









Quarter ended 30 June 2013





Net impact






Transfer

Transfer

of revised

Reclassification




Previously

to/(from)

to/(from)

Treasury

of one-off and


Allocated


reported

Functions

Services

allocations

other items


to CIB

Income statement

£m

£m

£m

£m

£m


£m









Net interest income

26 

- 

- 

(83)

- 


(57)

Non-interest income

796 

- 

- 

- 

- 


796 









Total income

822 

- 

- 

(83)

- 


739 









Direct expenses








  - staff

(278)

49 

69 

- 

(2)


(162)

  - other

(203)

8 

87 

- 

(28)


(136)

Indirect expenses

(205)

(54)

(162)

- 

- 


(421)

Restructuring costs








  - direct

- 

- 

- 

- 

(22)


(22)

  - indirect

- 

- 

- 

- 

2 


2 

Litigation and conduct costs

- 

- 

- 

- 

(385)


(385)









Total expenses

(686)

3 

(6)

- 

(435)


(1,124)









Operating profit/(loss) before impairment losses

136 

3 

(6)

(83)

(435)


(385)

Impairment losses

(43)

- 

- 

- 

- 


(43)









Operating profit/(loss)

93 

3 

(6)

(83)

(435)


(428)









Memo: operating loss - adjusted (1)







(23)

Key metrics
















Net interest margin

0.31%






(0.69%)

Cost:income ratio

83%






152%

Cost:income ratio - adjusted (1)

n/a






97%

 

Allocated


to CIB

30 June 2013

£bn



Capital and balance sheet


Loans and advances to customers (gross)

28.2 

Loan impairment provisions

(0.2)



Net loans and advances to customers

28.0 

Funded assets

267.9 

Risk elements in lending

0.3 

Customer deposits (excluding repos)

26.4 

Loan:deposit ratio (excluding repos)

106%

Provision coverage (2)

78%

Risk-weighted assets

86.8 

 

 

Notes:

(1)

Excluding restructuring costs and litigation and conduct costs.

(2)

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

 


 

Non-Core









Year ended 31 December 2013





Net impact






Transfer

Transfer

of revised

Reclassification




Previously

to/(from)

to/(from)

Treasury

of one-off and


Revised


reported

Functions

Services

allocations

other items


Non-Core

Income statement

£m

£m

£m

£m

£m


£m









Net interest income

(61)

- 

- 

- 

- 


(61)

Non-interest income

(285)

- 

- 

- 

- 


(285)









Total income (1)

(346)

- 

- 

- 

- 


(346)









Direct expenses








  - staff

(193)

2 

1 

- 

- 


(190)

  - other

(203)

- 

1 

- 

- 


(202)

Indirect expenses

(209)

(2)

(2)

- 

- 


(213)

Restructuring costs








  - direct

- 

- 

- 

- 

(16)


(16)

  - indirect

- 

- 

- 

- 

(6)


(6)









Total expenses

(605)

- 

- 

- 

(22)


(627)









Operating loss before impairment losses

(951)

- 

- 

- 

(22)


(973)

Impairment losses

(4,576)

- 

- 

- 

- 


(4,576)









Operating loss

(5,527)

- 

- 

- 

(22)


(5,549)









Memo: operating loss - adjusted (2)







(5,527)

Key metrics
















Net interest margin

(0.19%)

- 

- 

- 

- 


(0.19%)

 



Non-Core

31 December 2013

£bn



Capital and balance sheet (3)


Loans and advances to customers (gross)

36.7 

Loan impairment provisions

(13.8)



Net loans and advances to customers

22.9 

Funded assets

28.0 

Risk elements in lending

19.0 

Customer deposits (excluding repos)

2.2 

Provision coverage (4)

73%

Risk-weighted assets

29.2 

 

Notes:

(1)

Reallocation of £35 million between net interest income and non-interest income in respect of funding costs of rental assets.

(2)

Excluding restructuring costs.

(3)

Includes disposal groups.

(4)

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

 

 

Non-Core









Half year ended 30 June 2013





Net impact






Transfer

Transfer

of revised

Reclassification




Previously

to/(from)

to/(from)

Treasury

of one-off and


Revised


reported

Functions

Services

allocations

other items


Non-Core

Income statement

£m

£m

£m

£m

£m


£m









Net interest income

2 

- 

- 

- 

- 


2 

Non-interest income

364 

- 

- 

- 

- 


364 









Total income (1)

366 

- 

- 

- 

- 


366 









Direct expenses








  - staff

(109)

- 

- 

- 

- 


(109)

  - other

(106)

1 

1 

- 

- 


(104)

Indirect expenses

(106)

(1)

(1)

- 

- 


(108)

Restructuring costs








  - direct

- 

- 

- 

- 

(21)


(21)

  - indirect

- 

- 

- 

- 

(2)


(2)









Total expenses

(321)

- 

- 

- 

(23)


(344)









Operating profit before impairment losses

45 

- 

- 

- 

(23)


22 

Impairment losses

(831)

- 

- 

- 

- 


(831)









Operating loss

(786)

- 

- 

- 

(23)


(809)









Memo: operating loss - adjusted (2)







(786)

Key metrics
















Net interest margin

(0.06%)

- 

- 

- 

- 


(0.06%)

 



Non-Core

30 June 2013

£bn



Capital and balance sheet (3)


Loans and advances to customers (gross)

47.2 

Loan impairment provisions

(11.4)



Net loans and advances to customers

35.8 

Funded assets

45.4 

Risk elements in lending

20.9 

Customer deposits (excluding repos)

2.8 

Provision coverage (4)

55%

Risk-weighted assets

46.3 

 

Notes:

(1)

Reallocation of £19 million between net interest income and non-interest income in respect of funding costs of rental assets.

(2)

Excluding restructuring costs.

(3)

Includes disposal groups.

(4)

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

 

 

Non-Core









Quarter ended 30 June 2013





Net impact






Transfer

Transfer

of revised

Reclassification




Previously

to/(from)

to/(from)

Treasury

of one-off and


Revised


reported

Functions

Services

allocations

other items


Non-Core

Income statement

£m

£m

£m

£m

£m


£m









Net interest income

30 

- 

- 

- 

- 


30 

Non-interest income

243 

- 

- 

- 

- 


243 









Total income (1)

273 

- 

- 

- 

- 


273 









Direct expenses








  - staff

(51)

- 

- 

- 

- 


(51)

  - other

(51)

1 

1 

- 

- 


(49)

Indirect expenses

(54)

(1)

(1)

- 

- 


(56)

Restructuring costs








  - direct

- 

- 

- 

- 

(1)


(1)

  - indirect

- 

- 

- 

- 

(2)


(2)









Total expenses

(156)

- 

- 

- 

(3)


(159)









Operating profit before impairment losses

117 

- 

- 

- 

(3)


114 

Impairment losses

(398)

- 

- 

- 

- 


(398)









Operating loss

(281)

- 

- 

- 

(3)


(284)









Memo: operating loss - adjusted (2)







(281)

Key metrics
















Net interest margin

0.15%

- 

- 

- 

- 


0.15%

 



Non-Core

30 June 2013

£bn



Capital and balance sheet (3)


Loans and advances to customers (gross)

47.2 

Loan impairment provisions

(11.4)



Net loans and advances to customers

35.8 

Funded assets

45.4 

Risk elements in lending

20.9 

Customer deposits (excluding repos)

2.8 

Provision coverage (4)

55%

Risk-weighted assets

46.3 

 

Notes:

(1)

Reallocation of £10 million between net interest income and non-interest income in respect of funding costs of rental assets.

(2)

Excluding restructuring costs.

(3)

Includes disposal groups.

(4)

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

 


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

Companies

NATWEST GROUP (NWG)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today