RBS.L Regulatory News (RBS)

Year ended

31 December 2012

31 December 2011

Managed 

One-off items 

reallocation 

DLG (1)

Statutory 

Managed 

One-off items 

reallocation 

DLG (1)

Statutory 

£m 

£m 

£m 

£m 

£m 

£m 

£m 

£m 

Interest receivable

18,837 

- 

(307)

18,530 

21,417 

(7)

(374)

21,036 

Interest payable

(7,142)

(15)

29 

(7,128)

(8,728)

(3)

(2)

(8,733)

Net interest income

11,695 

(15)

(278)

11,402 

12,689 

(10)

(376)

12,303 

Fees and commissions receivable

5,715 

- 

(6)

5,709 

6,384 

- 

(5)

6,379 

Fees and commissions payable

(1,269)

(1)

436 

(834)

(1,460)

- 

498 

(962)

Income from trading activities

3,531 

(1,858)

2 

1,675 

3,313 

(612)

- 

2,701 

Gain on redemption of own debt

- 

454 

- 

454 

- 

255 

- 

255 

Other operating income

2,397 

(2,724)

(138)

(465)

2,527 

1,595 

(147)

3,975 

Insurance net premium income

3,718 

- 

(3,718)

- 

4,256 

- 

(4,256)

- 

Non-interest income

14,092 

(4,129)

(3,424)

6,539 

15,020 

1,238 

(3,910)

12,348 

Total income

25,787 

(4,144)

(3,702)

17,941 

27,709 

1,228 

(4,286)

24,651 

Staff costs

(7,639)

(884)

447 

(8,076)

(8,163)

(515)

322 

(8,356)

Premises and equipment

(2,198)

(152)

118 

(2,232)

(2,278)

(173)

28 

(2,423)

Other administrative expenses

(3,248)

(2,740)

395 

(5,593)

(3,395)

(1,536)

495 

(4,436)

Depreciation and amortisation

(1,534)

(320)

52 

(1,802)

(1,642)

(233)

36 

(1,839)

Write-down of goodwill and other intangible assets

- 

(124)

- 

(124)

- 

(91)

11 

(80)

Operating expenses

(14,619)

(4,220)

1,012 

(17,827)

(15,478)

(2,548)

892 

(17,134)

Profit before insurance net claims and impairment losses

11,168 

(8,364)

(2,690)

114 

12,231 

(1,320)

(3,394)

7,517 

Insurance net claims

(2,427)

- 

2,427 

- 

(2,968)

- 

2,968 

- 

Operating profit before impairment losses

8,741 

(8,364)

(263)

114 

9,263 

(1,320)

(426)

7,517 

Impairment losses

(5,279)

- 

- 

(5,279)

(7,439)

(1,270)

2 

(8,707)

Operating profit/(loss)

3,462 

(8,364)

(263)

(5,165)

1,824 

(2,590)

(424)

(1,190)

Year ended

31 December 2012

31 December 2011

Managed 

One-off items 

reallocation 

DLG (1)

Statutory 

Managed 

One-off items 

reallocation 

DLG (1)

Statutory 

£m 

£m 

£m 

£m 

£m 

£m 

£m 

£m 

Operating profit/(loss)

3,462 

(8,364)

(263)

(5,165)

1,824 

(2,590)

(424)

(1,190)

Own credit adjustments (2)

(4,649)

4,649 

- 

- 

1,914 

(1,914)

- 

- 

Asset Protection Scheme (3)

(44)

44 

- 

- 

(906)

906 

- 

- 

Payment Protection Insurance costs

(1,110)

1,110 

- 

- 

(850)

850 

- 

- 

Interest Rate Hedging Products redress and related costs

(700)

700 

- 

- 

- 

- 

- 

- 

Regulatory fines

(381)

381 

- 

- 

- 

- 

- 

- 

Sovereign debt impairment

- 

- 

- 

- 

(1,099)

1,099 

- 

- 

Interest rate hedge adjustments on impaired available-for-sale sovereign debt

- 

- 

- 

- 

(169)

169 

- 

- 

Amortisation of purchased intangible assets

(178)

178 

- 

- 

(222)

222 

- 

- 

Integration and restructuring costs

(1,550)

1,550 

- 

- 

(1,064)

1,064 

- 

- 

Gain on redemption of own debt

454 

(454)

- 

- 

255 

(255)

- 

- 

Strategic disposals

113 

(113)

- 

- 

(104)

104 

- 

- 

Bank levy

(175)

175 

- 

- 

(300)

300 

- 

- 

Bonus tax

- 

- 

- 

- 

(27)

27 

- 

- 

Write-down of goodwill and other intangible assets

(518)

518 

- 

- 

(11)

11 

- 

- 

RFS Holdings minority interest

(20)

20 

- 

- 

(7)

7 

- 

- 

Loss including the results of Direct Line Group discontinued operations

(5,296)

394 

(263)

(5,165)

(766)

- 

(424)

(1,190)

Direct Line Group discontinued operations

131 

(394)

263 

- 

(424)

- 

424 

- 

Loss before tax

(5,165)

- 

- 

(5,165)

(1,190)

- 

- 

(1,190)

Tax charge

(469)

- 

- 

(469)

(1,127)

- 

- 

(1,127)

Loss from continuing operations

(5,634)

- 

- 

(5,634)

(2,317)

- 

- 

(2,317)

Year ended

31 December 2012

31 December 2011

Managed 

One-off items 

reallocation 

DLG (1)

Statutory 

Managed 

One-off items 

reallocation 

DLG (1)

Statutory 

£m 

£m 

£m 

£m 

£m 

£m 

£m 

£m 

(Loss)/profit from discontinued operations, net of tax

- Direct Line Group

(184)

- 

- 

(184)

301 

- 

- 

301 

- Other

12 

- 

- 

12 

47 

- 

- 

47 

(Loss)/profit from discontinued operations, net of tax

(172)

- 

- 

(172)

348 

- 

- 

348 

Loss for the period

(5,806)

- 

- 

(5,806)

(1,969)

- 

- 

(1,969)

Non-controlling interests

123 

- 

- 

123 

(28)

- 

- 

(28)

Preference share and other dividends

(288)

- 

- 

(288)

- 

- 

- 

- 

Loss attributable to ordinary and B shareholders

(5,971)

- 

- 

(5,971)

(1,997)

- 

- 

(1,997)

(1)

The statutory results of Direct Line Group (DLG), which is classified as a discontinued operation.

(2)

Reallocation of £1,813 million loss (2011 - £225 million gain) to income from trading activities and £2,836 million loss (2011 - £1,621 million gain) to other operating income.

(3)

Reallocation to income from trading activities.

Quarter ended

31 December 2012

30 September 2012

31 December 2011

Managed 

One-off items 

reallocation 

DLG (1)

Statutory 

Managed 

One-off items 

reallocation 

DLG (1)

Statutory 

Managed 

One-off items 

reallocation 

DLG (1)

Statutory 

£m 

£m 

£m 

£m 

£m 

£m 

£m 

£m 

£m 

£m 

£m 

£m 

Interest receivable

4,517 

- 

(78)

4,439 

4,529 

- 

(73)

4,456 

5,234 

- 

(87)

5,147 

Interest payable

(1,675)

(3)

12 

(1,666)

(1,656)

(2)

11 

(1,647)

(2,158)

(2)

(1)

(2,161)

Net interest income

2,842 

(3)

(66)

2,773 

2,873 

(2)

(62)

2,809 

3,076 

(2)

(88)

2,986 

Fees and commissions receivable

1,375 

- 

(1)

1,374 

1,403 

- 

(3)

1,400 

1,590 

- 

(1)

1,589 

Fees and commissions payable

(324)

(1)

80 

(245)

(341)

- 

132 

(209)

(573)

- 

234 

(339)

Income from trading activities

567 

(97)

4 

474 

769 

(435)

- 

334 

242 

(480)

- 

(238)

Loss on redemption of own debt

- 

- 

- 

- 

- 

(123)

- 

(123)

- 

(1)

- 

(1)

Other operating income

381 

(138)

(16)

227 

822 

(1,039)

(35)

(252)

405 

(200)

(31)

174 

Insurance net premium income

919 

- 

(919)

- 

932 

- 

(932)

- 

981 

- 

(981)

- 

Non-interest income

2,918 

(236)

(852)

1,830 

3,585 

(1,597)

(838)

1,150 

2,645 

(681)

(779)

1,185 

Total income

5,760 

(239)

(918)

4,603 

6,458 

(1,599)

(900)

3,959 

5,721 

(683)

(867)

4,171 

Staff costs

(1,439)

(312)

123 

(1,628)

(1,943)

(116)

100 

(1,959)

(1,781)

(212)

95 

(1,898)

Premises and equipment

(573)

(73)

54 

(592)

(552)

(45)

47 

(550)

(575)

(99)

8 

(666)

Other administrative expenses

(723)

(1,834)

51 

(2,506)

(770)

(489)

66 

(1,193)

(838)

(458)

147 

(1,149)

Depreciation and amortisation

(384)

(138)

24 

(498)

(374)

(56)

9 

(421)

(450)

(63)

12 

(501)

Write down of goodwill and other intangible assets

- 

(124)

- 

(124)

- 

- 

- 

- 

- 

(91)

11 

(80)

Operating expenses

(3,119)

(2,481)

252 

(5,348)

(3,639)

(706)

222 

(4,123)

(3,644)

(923)

273 

(4,294)

Profit/(loss) before insurance net claims and

impairment losses

2,641 

(2,720)

(666)

(745)

2,819 

(2,305)

(678)

(164)

2,077 

(1,606)

(594)

(123)

Insurance net claims

(606)

- 

606 

- 

(596)

- 

596 

- 

(529)

- 

529 

- 

Operating profit/(loss) before impairment losses

2,035 

(2,720)

(60)

(745)

2,223 

(2,305)

(82)

(164)

1,548 

(1,606)

(65)

(123)

Impairment losses

(1,454)

- 

- 

(1,454)

(1,176)

- 

- 

(1,176)

(1,692)

(226)

2 

(1,916)

Operating profit/(loss)

581 

(2,720)

(60)

(2,199)

1,047 

(2,305)

(82)

(1,340)

(144)

(1,832)

(63)

(2,039)

Quarter ended

31 December 2012

30 September 2012

31 December 2011

Managed 

One-off items 

reallocation 

DLG (1)

Statutory 

Managed 

One-off items 

reallocation 

DLG (1)

Statutory 

Managed 

One-off items 

reallocation 

DLG (1)

Statutory 

£m 

£m 

£m 

£m 

£m 

£m 

£m 

£m 

£m 

£m 

£m 

£m 

Operating profit/(loss)

581 

(2,720)

(60)

(2,199)

1,047 

(2,305)

(82)

(1,340)

(144)

(1,832)

(63)

(2,039)

Own credit adjustments (2)

(220)

220 

- 

- 

(1,455)

1,455 

- 

- 

(472)

472 

- 

- 

Asset Protection Scheme (3)

- 

- 

- 

- 

1 

(1)

- 

- 

(209)

209 

- 

- 

Payment Protection Insurance costs

(450)

450 

- 

- 

(400)

400 

- 

- 

- 

- 

- 

- 

Interest Rate Hedging Products redress and related

costs

(700)

700 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Regulatory fines

(381)

381 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Sovereign debt impairment

- 

- 

- 

- 

- 

- 

- 

- 

(224)

224 

- 

- 

Amortisation of purchased intangible assets

(32)

32 

- 

- 

(47)

47 

- 

- 

(53)

53 

- 

- 

Integration and restructuring costs

(620)

620 

- 

- 

(257)

257 

- 

- 

(478)

478 

- 

- 

Loss on redemption of own debt

- 

- 

- 

- 

(123)

123 

- 

- 

(1)

1 

- 

- 

Strategic disposals

(16)

16 

- 

- 

(23)

23 

- 

- 

(82)

82 

- 

- 

Bank levy

(175)

175 

- 

- 

- 

- 

- 

- 

(300)

300 

- 

- 

Write-down of goodwill and other intangible assets

(518)

518 

- 

- 

- 

- 

- 

- 

(11)

11 

- 

- 

RFS Holdings minority interest

(2)

2 

- 

- 

(1)

1 

- 

- 

(2)

2 

- 

- 

Loss including the results of Direct Line Group discontinued operations

(2,533)

394 

(60)

(2,199)

(1,258)

- 

(82)

(1,340)

(1,976)

- 

(63)

(2,039)

Direct Line Group discontinued operations

334 

(394)

60 

- 

(82)

- 

82 

- 

(63)

- 

63 

- 

Loss before tax

(2,199)

- 

- 

(2,199)

(1,340)

- 

- 

(1,340)

(2,039)

- 

- 

(2,039)

Tax (charge)/credit

(46)

- 

- 

(46)

(10)

- 

- 

(10)

213 

- 

- 

213 

Loss from continuing operations

(2,245)

- 

- 

(2,245)

(1,350)

- 

- 

(1,350)

(1,826)

- 

- 

(1,826)

Quarter ended

31 December 2012

30 September 2012

31 December 2011

Managed 

One-off items 

reallocation 

DLG (1)

Statutory 

Managed 

One-off items 

reallocation 

DLG (1)

Statutory 

Managed 

One-off items 

reallocation 

DLG (1)

Statutory 

£m 

£m 

£m 

£m 

£m 

£m 

£m 

£m 

£m 

£m 

£m 

£m 

(Loss)/profit from discontinued operations, net of tax

- Direct Line Group

(351)

- 

- 

(351)

62 

- 

- 

62 

36 

- 

- 

36 

- Other

6 

- 

- 

6 

5 

- 

- 

5 

10 

- 

- 

10 

(Loss)/profit from discontinued operations,

net of tax

(345)

- 

- 

(345)

67 

- 

- 

67 

46 

- 

- 

46 

Loss for the period

(2,590)

- 

- 

(2,590)

(1,283)

- 

- 

(1,283)

(1,780)

- 

- 

(1,780)

Non-controlling interests

107 

- 

- 

107 

(3)

- 

- 

(3)

(18)

- 

- 

(18)

Preference share and other dividends

(114)

- 

- 

(114)

(98)

- 

- 

(98)

- 

- 

- 

- 

Loss attributable to ordinary and B shareholders

(2,597)

- 

- 

(2,597)

(1,384)

- 

- 

(1,384)

(1,798)

- 

- 

(1,798)

(1)

The statutory results of Direct Line Group, which is classified as a discontinued operation.

(2)

Reallocation of £98 million loss (Q3 2012 - £435 million loss; Q4 2011 - £272 million loss) to income from trading activities and £122 million loss (Q3 2012 - £1,020 million loss; Q4 2012 - £200 million loss) to other operating income.

(3)

Reallocation to income from trading activities.

UK branch- 

based 

businesses 

Direct 

Line Group 

Income statement

£m

£m

Net interest income

653 

280 

Fees and commissions receivable

217 

6 

Fees and commissions payable

(11)

(436)

Income from trading activities

16 

(2)

Other operating income

5 

151 

Insurance net premium income

- 

3,718 

Non-interest income

227 

3,437 

Total income (1)

880 

3,717 

Staff costs

(164)

(337)

Premises and equipment

- 

(95)

Other administrative expenses

(269)

(365)

Depreciation and amortisation

- 

(52)

Operating expenses

(433)

(849)

Profit before insurance net claims and impairment losses

447 

2,868 

Insurance net claims

- 

(2,427)

Operating profit before impairment losses

447 

441 

Impairment losses

(142)

- 

Operating profit (2)

305 

441 

Capital and balance sheet

£bn 

£bn 

Total assets (3)

18.8 

12.7 

Loans and advances to customers (gross)

18.9 

0.9 

Customer deposits

21.5 

- 

Risk elements in lending

1.4 

- 

Risk-weighted assets

12.2 

n/a 

(1)

Total income for Direct Line Group includes investment income of £243 million.

(2)

Managed view operating profit for Direct Line Group excludes the goodwill write-down, £394 million, integration and restructuring costs, £135 million and other separation costs, £43 million.

(3)

Total assets for Direct Line Group include approximately £0.5 billion of goodwill, of which £0.3 billion is attributed to Direct Line Group by RBS Group.

31 December 2012

30 September 2012

31 December 2011

Balance 

sheet 

Disposal 

groups (1)

Gross of 

disposal 

groups 

Balance 

sheet 

Disposal 

groups (2)

Gross of 

disposal 

groups 

Balance 

sheet 

Disposal 

groups (3)

Gross of 

disposal 

groups 

£m 

£m 

£m 

£m 

£m 

£m 

£m 

£m 

£m 

Assets

Cash and balances at central banks

79,290 

18 

79,308 

80,122 

49 

80,171 

79,269 

127 

79,396 

Net loans and advances to banks

29,168 

2,112 

31,280 

38,347 

83 

38,430 

43,870 

87 

43,957 

Reverse repurchase agreements and stock borrowing

34,783 

- 

34,783 

34,026 

- 

34,026 

39,440 

- 

39,440 

Loans and advances to banks

63,951 

2,112 

66,063 

72,373 

83 

72,456 

83,310 

87 

83,397 

Net loans and advances to customers

430,088 

1,863 

431,951 

423,155 

19,409 

442,564 

454,112 

19,405 

473,517 

Reverse repurchase agreements and stock borrowing

70,047 

- 

70,047 

63,909 

- 

63,909 

61,494 

- 

61,494 

Loans and advances to customers

500,135 

1,863 

501,998 

487,064 

19,409 

506,473 

515,606 

19,405 

535,011 

Debt securities

157,438 

7,186 

164,624 

177,722 

31 

177,753 

209,080 

- 

209,080 

Equity shares

15,232 

5 

15,237 

15,527 

5 

15,532 

15,183 

5 

15,188 

Settlement balances

5,741 

- 

5,741 

15,055 

- 

15,055 

7,771 

14 

7,785 

Derivatives

441,903 

15 

441,918 

468,171 

366 

468,537 

529,618 

439 

530,057 

Intangible assets

13,545 

750 

14,295 

14,798 

- 

14,798 

14,858 

15 

14,873 

Property, plant and equipment

9,784 

223 

10,007 

11,220 

116 

11,336 

11,868 

4,749 

16,617 

Deferred tax

3,443 

- 

3,443 

3,480 

- 

3,480 

3,878 

- 

3,878

Other financial assets

- 

924 

924 

891 

- 

891 

1,309 

- 

1,309 

Prepayments, accrued income and other assets

7,820 

742 

8,562 

9,804 

444 

10,248 

9,667 

456 

10,123 

Assets of disposal groups

14,013 

(13,838)

175 

20,667 

(20,503)

164 

25,450 

(25,297)

153 

Total assets

1,312,295 

- 

1,312,295 

1,376,894 

- 

1,376,894 

1,506,867 

- 

1,506,867 

31 December 2012

30 September 2012

31 December 2011

Balance 

sheet 

Disposal 

groups (1)

Gross of 

disposal 

groups 

Balance 

sheet 

Disposal 

groups (2)

Gross of 

disposal 

groups 

Balance 

sheet 

Disposal 

groups (3)

Gross of 

disposal 

groups 

£m 

£m 

£m 

£m 

£m 

£m 

£m 

£m 

£m 

Liabilities

Bank deposits

57,073 

1 

57,074 

58,127 

1 

58,128 

69,113 

1 

69,114 

Repurchase agreements and stock lending

44,332 

- 

44,332 

49,222 

- 

49,222 

39,691 

- 

39,691 

Deposits by banks

101,405 

1 

101,406 

107,349 

1 

107,350 

108,804 

1 

108,805 

Customer deposits

433,239 

753 

433,992 

412,712 

22,168 

434,880 

414,143 

22,610 

436,753 

Repurchase agreements and stock lending

88,040 

- 

88,040 

93,343 

- 

93,343 

88,812 

- 

88,812 

Customer accounts

521,279 

753 

522,032 

506,055 

22,168 

528,223 

502,955 

22,610 

525,565 

Debt securities in issue

94,592 

- 

94,592 

104,157 

- 

104,157 

162,621 

- 

162,621 

Settlement balances

5,878 

- 

5,878 

14,427 

- 

14,427 

7,477 

8 

7,485 

Short positions

27,591 

- 

27,591 

32,562 

- 

32,562 

41,039 

- 

41,039 

Derivatives

434,333 

7 

434,340 

462,300 

42 

462,342 

523,983 

126 

524,109 

Accruals, deferred income and other liabilities

14,801 

2,679 

17,480 

18,458 

449 

18,907 

23,125 

1,233 

24,358 

Retirement benefit liabilities

3,884 

- 

3,884 

1,779 

- 

1,779 

2,239 

- 

2,239 

Deferred tax

1,141 

- 

1,141 

1,686 

- 

1,686 

1,945 

- 

1,945 

Insurance liabilities

- 

6,193 

6,193 

6,249 

- 

6,249 

6,312 

- 

6,312 

Subordinated liabilities

26,773 

529 

27,302 

25,309 

- 

25,309 

26,319 

- 

26,319 

Liabilities of disposal groups

10,170 

(10,162)

8 

22,670 

(22,660)

10 

23,995 

(23,978)

17 

Total liabilities

1,241,847 

- 

1,241,847 

1,303,001 

- 

1,303,001 

1,430,814 

- 

1,430,814 

31 December 2012

30 September 2012

31 December 2011

Balance 

sheet 

Disposal 

groups (1)

Gross of 

disposal 

groups 

Balance 

sheet 

Disposal 

groups (2)

Gross of 

disposal 

groups 

Balance 

sheet 

Disposal 

groups (3)

Gross of 

disposal 

groups 

£m 

£m 

£m 

£m 

£m 

£m 

£m 

£m 

£m 

Selected financial data

Gross loans and advances to customers

451,224 

1,875 

453,099 

443,356 

20,188 

463,544 

473,872 

20,196 

494,068 

Customer loan impairment provisions

(21,136)

(12)

(21,148)

(20,201)

(779)

(20,980)

(19,760)

(791)

(20,551)

Net loans and advances to customers

430,088 

1,863 

431,951 

423,155 

19,409 

422,564 

454,112 

19,405 

473,517 

Gross loans and advances to banks

29,282 

2,112 

31,394 

38,464 

83 

38,547 

43,993 

87 

44,080 

Bank loan impairment provisions

(114)

- 

(114)

(117)

- 

(117)

(123)

- 

(123)

Net loans and advances to banks

29,168 

2,112 

31,280 

38,347 

83 

38,430 

43,870 

87 

43,957 

Total loan impairment provisions

(21,250)

(12)

(21,262)

(20,318)

(779)

(21,097)

(19,883)

(791)

(20,674)

Customer REIL

40,993 

13 

41,006 

39,913 

1,402 

41,315 

40,708 

1,549 

42,257 

Bank REIL

134 

- 

134 

187 

- 

187 

137 

- 

137 

Total REIL

41,127 

13 

41,140 

40,100 

1,402 

41,502 

40,845 

1,549 

42,394 

Gross unrealised gains on debt securities

3,946 

230 

4,176 

4,517 

- 

4,517 

4,978 

- 

4,978 

Gross unrealised losses on debt securities

(1,832)

(15)

(1,847)

(2,052)

- 

(2,052)

(3,408)

- 

(3,408)

(1)

Primarily Direct Line Group.

(2)

Primarily UK branch-based businesses (see Appendix 2).

(3)

Primarily UK branch-based businesses, RBS Aviation Capital, sold in 2012, and remainder of RBS Sempra Commodities JV.

Page

Analysis of results

Balance sheet

28

Capital resources and ratios

27

Funding & liquidity

29

Impairment losses

22

Net-interest income

18

Non-interest income

19

One-off and other items

24

Operating expenses

20, 92

Available-for-sale reserve

125

Average balance sheet

83

Balance sheet

Consolidated

80

Summary

9

Basis of preparation

90

Business divestments

Businesses outlined for disposal

Appendix 2

Notes

110

Capital

Analysis of results

27

Capital resources

155

Risk asset ratios

154