21 Dec 2017 10:14
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Segmental Reporting Restatement
Document
December 2017
The Royal Bank of Scotland Group plc (RBS)
Contents
| Page |
Forward-looking statements | 1 |
Overview of business re-segmentation | 1 |
Business transfers | 2 |
Customer segments | 3 |
Appendix - Re-segmentation reconciliations | |
Forward-looking statements
Certain sections in this document contain forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995, including (but not limited to) those with respect to RBS and its subsidiaries' regulatory capital position, financial position, risk-weighted assets, profitability and financial performance and the implementation of RBS's transformation programme under certain specified scenarios. In addition, forward-looking statements may include, without limitation, statements containing words such as "intends", "believes", "expects", "anticipates", "targets", "plans", "will" and similar expressions or variations on these expressions. These statements concern or may affect future matters, such as RBS's future economic results, business and capital plans and ability to achieve current strategies. Forward-looking statements are subject to a number of risks and uncertainties that might cause actual results and performance to differ materially from any expected future results or performance expressed in, or implied by, the forward-looking statements. Factors that could cause or contribute to differences in current expectations include, but are not limited to, legislative, political, fiscal and regulatory developments, accounting standards, competitive conditions, technological developments, interest and exchange rate fluctuations and general economic conditions. These and other factors, risks and uncertainties that may impact any forward-looking statement or RBS's actual results are discussed in RBS's 2016 Annual Report and Accounts and its interim results for the six-months ended 30 June 2017 and materials filed with, or furnished to, the United States Securities and Exchange Commission, including, but not limited to, RBS's most recent Annual Report on Form 20-F and Reports on Form 6-K. The forward-looking statements contained in this document speak only as of the date they are made or revised and RBS does not assume or undertake any obligation or responsibility to update any of the forward-looking statements contained in this document, whether as a result of new information, future events or otherwise, except to the extent legally required.
Overview of business re-segmentation
This announcement sets out changes to RBS's operating segments and changes in results presentation. The announcement contains re-presented financial results for the year ended 31 December 2016 and, to aid comparison of RBS's fourth quarter 2017 results with prior periods, re-presented financial information for the quarters ended 30 September 2017 and 31 December 2016.
Segmental reorganisation
RBS continues to deliver on its plan to build a strong, simple and fair bank for both customers and shareholders. To support this and reflect the progress made, the previously reported operating segments are now realigned. Unless otherwise stated, the following segments have been re-presented for the above periods.
· Williams & Glyn (W&G) is integrated into UK Personal and Business Banking (UK PBB). UK PBB serves individuals and mass affluent customers in the UK together with small and medium businesses, including Ulster Bank customers in Northern Ireland.
· Capital Resolution, with the exception of the Retail Mortgaged Backed Securities (RMBS) litigation costs, is integrated into NatWest Markets (NWM). NWM provides financing and risk management to corporate and global financial institutional customers and trades with financial institutions, investors and counterparties for distribution and market making.
· Capital Resolution RMBS litigation related costs are now included, at a reportable operating segment level, within Central items & other. There has been no impact on the legal entity level reporting. Central items include corporate functions, such as treasury, finance, risk management, compliance, legal, communications and human resources. Central functions manage RBS capital resources and RBS wide regulatory projects and provide services to the reportable segments.
· NatWest Markets (NWM) sees a reallocation of expenses between direct and indirect as a result of reorganisation in preparation for the implementation of the UK ring fencing regime. This representation takes effect from 1 January 2017 and does not affect previous periods.
· RBS International (RBSI) is moved out-with the Commercial and Private Banking (CPB) franchise, in preparation for the implementation of the UK ring fencing regime.
The Royal Bank of Scotland Group plc (RBS)
Business transfers
Changes to RBS's businesses, which impact its financial reporting, but where comparatives are not re-presented, are detailed below. Unless otherwise stated, the effective date of implementation is 1 October 2017.
· Shipping and other activities, which were formerly in Capital Resolution, are transferred from NWM to Commercial Banking. Commercial Banking serves commercial and corporate customers in the UK.
· UK PBB Collective Investment Funds (CIFL) business is transferred to Private Banking in order to better serve customers. Private Banking serves high net worth individuals in the UK.
· The RBS International (RBSI) reportable operating segment is aligned to the legal entity The Royal Bank of Scotland International (Holdings) Limited. This predominantly involved transfers from Private Banking and Services and Functions within Central items & other in preparation for the implementation of the UK ring-fencing regime.
· Commercial Banking whole business securitisations and relevant financial institutions (RFI) are transferred to NWM during December 2017. RFIs are prohibited from being within the ring-fence due to their nature and exposure to global financial markets, the move is in preparation for the implementation of the UK ring-fencing regime.
Impact of business transfers
30 September 2017 | ||||
|
Shipping and other activities £bn |
Collective Investment Funds £bn |
RBSI entity alignment £bn |
Commercial Bank RFI transfers £bn |
Total assets | 3.3 | - | 0.2 | 1.0 |
Risk-weighted assets | 2.1 | - | 0.1 | 0.6 |
Assets under management | - | 3.3 | 1.2 | - |
Annual results 2017
RBS's results for the year ended 31 December 2017 will be announced on Friday 23 February 2018. These results will be reported on the new structure and reporting basis as described above.
In conjunction with this Segmental Reporting Restatement Document, a financial supplement showing re-presented financial information for the last nine quarters is available at www.rbs.com/results
Document roadmap
Pages 3 to 8 of this document show the income statement, balance sheet line items and key metrics for the new reportable segments.
Re-segmentation reconciliation Appendix - summarises how the previously reported segments are allocated to the new reportable segments. These tables include the income statement, key metrics (e.g. return on equity (ROE), net interest margin, cost:income ratio and balance sheet line items).
For further information contact:
Matt Waymark
Investor Relations
+ 44 (0)20 7672 2802
Group Media Centre
+44 (0)131 523 4205
Customer segments
Quarter ended 30 September 2017 | ||||||||||
PBB | CPB | |||||||||
Ulster Bank | Commercial | Private | RBS | NatWest | Central items | Total | ||||
UK PBB | RoI | Banking | Banking | International | Markets | & other (1) | RBS | |||
Income statement | £m | £m | £m | £m | £m | £m | £m | £m | ||
Net interest income | 1,294 | 104 | 570 | 116 | 83 | 99 | 38 | 2,304 | ||
Non-interest income | 463 | 46 | 358 | 50 | 14 | (74) | 1 | 858 | ||
Own credit adjustments | - | - | - | - | - | (5) | - | (5) | ||
Total income | 1,757 | 150 | 928 | 166 | 97 | 20 | 39 | 3,157 | ||
Direct expenses | ||||||||||
- staff | (191) | (50) | (113) | (36) | (13) | (163) | (388) | (954) | ||
- other | (55) | (17) | (55) | (6) | (3) | (72) | (612) | (820) | ||
Indirect expenses | (525) | (52) | (252) | (58) | (33) | (132) | 1,052 | - | ||
Restructuring costs | ||||||||||
- direct | (1) | (1) | (2) | (1) | (2) | (29) | (208) | (244) | ||
- indirect | (47) | (8) | (19) | (2) | - | (28) | 104 | - | ||
Litigation and conduct costs | - | (1) | (2) | - | (8) | (102) | (12) | (125) | ||
Operating expenses | (819) | (129) | (443) | (103) | (59) | (526) | (64) | (2,143) | ||
Operating profit/(loss) before impairment (losses)/releases | 938 | 21 | 485 | 63 | 38 | (506) | (25) | 1,014 | ||
Impairment (losses)/releases | (78) | 10 | (151) | 3 | 2 | 71 | - | (143) | ||
Operating profit/(loss) | 860 | 31 | 334 | 66 | 40 | (435) | (25) | 871 | ||
Memo: | ||||||||||
Total income - adjusted (2) | 1,757 | 150 | 928 | 166 | 97 | 25 | 39 | 3,162 | ||
Operating expenses - adjusted (3) | (771) | (119) | (420) | (100) | (49) | (367) | 52 | (1,774) | ||
Operating profit/(loss) - adjusted (2,3) | 908 | 41 | 357 | 69 | 50 | (271) | 91 | 1,245 | ||
For the notes to this table refer to page 8. | ||||||||||
Customer segments
Quarter ended 30 September 2017 | ||||||||||
PBB | CPB | |||||||||
Ulster Bank | Commercial | Private | RBS | NatWest | Central items | Total | ||||
Key metrics | UK PBB | RoI | Banking | Banking | International | Markets | & other (1) | RBS | ||
Return on equity (4) | 34.2% | 4.6% | 8.6% | 13.2% | 10.4% | (15.4%) | nm | 4.5% | ||
Return on equity - adjusted (2,3,4) | 36.2% | 6.1% | 9.3% | 13.8% | 13.6% | (10.3%) | nm | 8.2% | ||
Net interest margin | 2.83% | 1.58% | 1.74% | 2.39% | 1.39% | 1.24% | nm | 2.12% | ||
Cost:income ratio | 46.6% | 86.0% | 45.7% | 62.0% | 60.8% | nm | nm | 67.5% | ||
Cost:income ratio - adjusted (2,3) | 43.9% | 79.3% | 43.1% | 60.2% | 50.5% | nm | nm | 55.6% | ||
Loan impairment charge as a % of gross loans and advances | 0.2% | (0.2%) | 0.6% | nm | nm | nm | nm | nm | ||
As at 30 September 2017 | ||||||||||
Capital and balance sheet | £bn | £bn | £bn | £bn | £bn | £bn | £bn | £bn | ||
Loan impairment provisions | (1.3) | (1.1) | (0.8) | - | - | (0.5) | (0.2) | (3.9) | ||
Net loans and advances to customers | 160.8 | 19.5 | 96.6 | 13.3 | 9.3 | 25.1 | 0.1 | 324.7 | ||
Funded assets | 190.1 | 25.1 | 147.3 | 19.9 | 24.3 | 134.9 | 38.4 | 580.0 | ||
Risk elements in lending | 2.0 | 3.4 | 1.7 | 0.1 | 0.1 | 1.6 | 0.1 | 9.0 | ||
Customer deposits (excluding repos) | 178.6 | 17.3 | 98.2 | 27.0 | 24.9 | 13.7 | 0.2 | 359.9 | ||
Loan:deposit ratio (excluding repos) | 90% | 113% | 98% | 49% | 37% | 184% | nm | 90% | ||
Provision coverage (5) | 65% | 33% | 48% | 37% | 31% | nm | nm | 43% | ||
Risk-weighted assets | 43.3 | 17.9 | 74.6 | 9.2 | 9.6 | 54.9 | 1.1 | 210.6 | ||
RWA equivalent | 47.0 | 18.9 | 77.4 | 9.2 | 9.6 | 59.1 | 1.3 | 222.5 | ||
For notes to this table refer to page 8. | ||||||||||
Customer segments
Quarter ended 31 December 2016 | ||||||||||
PBB | CPB | |||||||||
Ulster Bank | Commercial | Private | RBS | NatWest | Central items | Total | ||||
UK PBB | RoI | Banking | Banking | International | Markets | & other (1) | RBS | |||
Income statement | £m | £m | £m | £m | £m | £m | £m | £m | ||
Net interest income | 1,263 | 105 | 542 | 111 | 77 | 73 | 37 | 2,208 | ||
Non-interest income | 293 | 32 | 325 | 50 | 19 | (44) | 446 | 1,121 | ||
Own credit adjustments | - | - | - | - | - | (37) | (77) | (114) | ||
Gain on redemption of own debt | - | - | - | - | - | - | 1 | 1 | ||
Total income | 1,556 | 137 | 867 | 161 | 96 | (8) | 407 | 3,216 | ||
Direct expenses | ||||||||||
- staff | (196) | (57) | (130) | (39) | (12) | (87) | (504) | (1,025) | ||
- other | (76) | (23) | (69) | (12) | (4) | (10) | (1,000) | (1,194) | ||
Indirect expenses | (602) | (65) | (357) | (95) | (45) | (417) | 1,581 | - | ||
Restructuring costs | ||||||||||
- direct | (1) | (6) | (12) | (6) | (1) | (24) | (957) | (1,007) | ||
- indirect | (50) | 2 | (34) | (8) | (1) | (30) | 121 | - | ||
Litigation and conduct costs | (214) | (77) | (407) | 1 | (1) | (581) | (2,849) | (4,128) | ||
Operating expenses | (1,139) | (226) | (1,009) | (159) | (64) | (1,149) | (3,608) | (7,354) | ||
Operating profit/(loss) before impairment (losses)/releases | 417 | (89) | (142) | 2 | 32 | (1,157) | (3,201) | (4,138) | ||
Impairment (losses)/releases | (27) | 47 | (83) | 8 | 1 | 130 | (1) | 75 | ||
Operating profit/(loss) | 390 | (42) | (225) | 10 | 33 | (1,027) | (3,202) | (4,063) | ||
Memo: | ||||||||||
Total income - adjusted (2) | 1,556 | 137 | 867 | 161 | 96 | 29 | 483 | 3,329 | ||
Operating expenses - adjusted (3) | (874) | (145) | (556) | (146) | (61) | (514) | 77 | (2,219) | ||
Operating profit/(loss) - adjusted (2,3) | 655 | 39 | 228 | 23 | 36 | (355) | 559 | 1,185 | ||
For the notes to this table refer to page 8. | ||||||||||
Customer segments
Quarter ended 31 December 2016 | ||||||||||
PBB | CPB | |||||||||
Ulster Bank | Commercial | Private | RBS | NatWest | Central items | Total | ||||
Key metrics | UK PBB | RoI | Banking | Banking | International | Markets | & other (1) | RBS | ||
Return on equity (4) | 15.1% | (5.8%) | (9.1%) | 1.6% | 8.8% | (27.0%) | nm | (48.2%) | ||
Return on equity - adjusted (2,3,4) | 26.2% | 5.4% | 5.3% | 4.5% | 9.8% | (10.3%) | nm | 8.6% | ||
Net interest margin | 2.91% | 1.59% | 1.68% | 2.50% | 1.34% | 0.86% | nm | 2.19% | ||
Cost:income ratio | 73.2% | 165.0% | 117.1% | 98.8% | 66.7% | nm | nm | 230.2% | ||
Cost:income ratio - adjusted (2,3) | 56.2% | 105.8% | 62.6% | 90.7% | 63.5% | nm | nm | 66.3% | ||
Loan impairment charge as a % of gross loans and advances | 0.1% | (0.9%) | 0.3% | nm | nm | nm | nm | nm | ||
As at 31 December 2016 | ||||||||||
Capital and balance sheet | £bn | £bn | £bn | £bn | £bn | £bn | £bn | £bn | ||
Loan impairment provisions | (1.5) | (1.2) | (0.8) | - | - | (0.8) | (0.2) | (4.5) | ||
Net loans and advances to customers | 152.7 | 18.9 | 100.1 | 12.2 | 8.8 | 30.2 | 0.1 | 323 | ||
Funded assets | 181.4 | 24 | 150.5 | 18.5 | 23.4 | 128.5 | 25.4 | 551.7 | ||
Customer deposits (excluding repos) | 170.0 | 16.1 | 97.9 | 26.6 | 25.2 | 17.9 | 0.2 | 353.9 | ||
Loan:deposit ratio (excluding repos) | 90% | 117% | 102% | 46% | 35% | 169% | nm | 91% | ||
Provision coverage (5) | 65% | 34% | 43% | 30% | 35% | nm | nm | 43% | ||
Risk-weighted assets | 42.3 | 18.1 | 78.5 | 8.6 | 9.5 | 69.7 | 1.5 | 228.2 | ||
RWA equivalent | 45.8 | 19.5 | 82.6 | 8.6 | 9.5 | 74.7 | 1.7 | 242.4 | ||
For the notes to this table refer to page 8.
Customer segments
Year ended 31 December 2016 | ||||||||||
PBB | CPB | |||||||||
Ulster Bank | Commercial | Private | RBS | NatWest | Central items | Total | ||||
UK PBB | RoI | Banking | Banking | International | Markets | & other (1) | RBS | |||
Income statement | £m | £m | £m | £m | £m | £m | £m | £m | ||
Net interest income | 4,945 | 409 | 2,143 | 449 | 303 | 343 | 116 | 8,708 | ||
Non-interest income | 1,182 | 164 | 1,272 | 208 | 71 | 763 | 4 | 3,664 | ||
Own credit adjustments | - | 3 | - | - | - | 187 | (10) | 180 | ||
Loss on redemption of own debt | - | - | - | - | - | - | (126) | (126) | ||
Strategic disposals | - | - | - | - | - | (81) | 245 | 164 | ||
Total income | 6,127 | 576 | 3,415 | 657 | 374 | 1,212 | 229 | 12,590 | ||
Direct expenses | ||||||||||
- staff | (832) | (207) | (522) | (154) | (45) | (358) | (2,364) | (4,482) | ||
- other | (320) | (55) | (235) | (44) | (17) | (119) | (2,948) | (3,738) | ||
Indirect expenses | (2,246) | (195) | (1,179) | (313) | (107) | (1,607) | 5,647 | - | ||
Restructuring costs | ||||||||||
- direct | (46) | (38) | (25) | (7) | (2) | (75) | (1,913) | (2,106) | ||
- indirect | (198) | (2) | (83) | (30) | (3) | (115) | 431 | - | ||
Litigation and conduct costs | (634) | (172) | (423) | (1) | - | (550) | (4,088) | (5,868) | ||
Operating expenses | (4,276) | (669) | (2,467) | (549) | (174) | (2,824) | (5,235) | (16,194) | ||
Operating profit/(loss) before impairment (losses)/releases | 1,851 | (93) | 948 | 108 | 200 | (1,612) | (5,006) | (3,604) | ||
Impairment (losses)/releases | (125) | 113 | (206) | 3 | (10) | (253) | - | (478) | ||
Operating profit/(loss) | 1,726 | 20 | 742 | 111 | 190 | (1,865) | (5,006) | (4,082) | ||
Memo: | ||||||||||
Total income - adjusted (2) | 6,127 | 573 | 3,415 | 657 | 374 | 1,106 | 120 | 12,372 | ||
Operating expenses - adjusted (3) | (3,398) | (457) | (1,936) | (511) | (169) | (2,084) | 335 | (8,220) | ||
Operating profit/(loss) - adjusted (2,3) | 2,604 | 229 | 1,273 | 149 | 195 | (1,231) | 455 | 3,674 | ||
For the notes to this table refer to page 8. | ||||||||||
Customer segments
Year ended 31 December 2016 | ||||||||||
PBB | CPB | |||||||||
Ulster Bank | Commercial | Private | RBS | NatWest | Central items | Total | ||||
Key metrics | UK PBB | RoI | Banking | Banking | International | Markets | & other (1) | RBS | ||
Return on equity (4) | 16.2% | 0.7% | 4.1% | 5.6% | 13.8% | (12.5%) | nm | (17.9%) | ||
Return on equity - adjusted (2,3,4) | 25.1% | 8.4% | 8.4% | 7.8% | 14.2% | (8.7%) | nm | 1.6% | ||
Net interest margin | 2.97% | 1.62% | 1.76% | 2.66% | 1.36% | 0.91% | nm | 2.18% | ||
Cost:income ratio | 69.8% | 116.1% | 71.0% | 83.6% | 46.5% | nm | nm | 129.0% | ||
Cost:income ratio - adjusted (2,3) | 55.5% | 79.8% | 54.8% | 77.8% | 45.2% | 188.4% | nm | 66.0% | ||
Loan impairment charge as a % of gross loans and advances | 0.1% | (0.6%) | 0.2% | nm | nm | nm | nm | nm | ||
As at 31 December 2016 | ||||||||||
Capital and balance sheet | £bn | £bn | £bn | £bn | £bn | £bn | £bn | £bn | ||
Loan impairment provisions | (1.5) | (1.2) | (0.8) | - | - | (0.8) | (0.2) | (4.5) | ||
Net loans and advances to customers | 152.7 | 18.9 | 100.1 | 12.2 | 8.8 | 30.2 | 0.1 | 323 | ||
Funded assets | 181.4 | 24.0 | 150.5 | 18.5 | 23.4 | 128.5 | 25.4 | 551.7 | ||
Customer deposits (excluding repos) | 170.0 | 16.1 | 97.9 | 26.6 | 25.2 | 17.9 | 0.2 | 353.9 | ||
Loan:deposit ratio (excluding repos) | 90% | 117% | 102% | 46% | 35% | 169% | nm | 91% | ||
Provision coverage (5) | 65% | 34% | 43% | 30% | 35% | nm | nm | 43% | ||
Risk-weighted assets | 42.3 | 18.1 | 78.5 | 8.6 | 9.5 | 69.7 | 1.5 | 228.2 | ||
RWA equivalent | 45.8 | 19.5 | 82.6 | 8.6 | 9.5 | 74.7 | 1.7 | 242.4 | ||
nm = not meaningful
Notes:
(1) | Central items includes unallocated costs and assets which principally comprise volatile items under IFRS. |
(2) | Excluding own credit adjustments, gain/(loss) on redemption of own debt and strategic disposals. |
(3) | Excluding restructuring costs and litigation and conduct costs. |
(4) | RBS's CET 1 target is 13% but for the purposes of computing segmental return on equity (ROE), to better reflect the differential drivers of capital usage, segmental operating profit after tax and adjusted for preference dividends is divided by average notional equity allocated at different rates of 14% (Ulster Bank RoI - 11% prior to Q1 2017), 11% (Commercial Banking), 14% (Private Banking - 15% prior to Q1 2017), 12% (RBS International) and 15% for all other segments, of the monthly average of segmental risk-weighted assets incorporating the effect of capital deductions (RWAes). RBS's Return on equity is calculated using profit for the period attributable to ordinary shareholders. |
(5) | Provision coverage represents loan impairment provisions as a percentage of risk elements in lending. |
Appendix
Re-segmentation reconciliation
UK PBB
Quarter ended | Quarter ended | Year ended | |||||||||
30 September 2017 | 31 December 2016 | 31 December 2016 | |||||||||
Previously | From | Total | Previously | From | Total | Previously | From | Total | |||
reported | W&G | UK PBB | reported | W&G | UK PBB | reported | W&G | UK PBB | |||
Income statement | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||
Net interest income | 1,128 | 166 | 1,294 | 1,093 | 170 | 1,263 | 4,287 | 658 | 4,945 | ||
Non-interest income | 420 | 43 | 463 | 246 | 47 | 293 | 1,003 | 179 | 1,182 | ||
Total income | 1,548 | 209 | 1,757 | 1,339 | 217 | 1,556 | 5,290 | 837 | 6,127 | ||
Direct expenses | |||||||||||
- staff | (163) | (28) | (191) | (161) | (35) | (196) | (690) | (142) | (832) | ||
- other | (51) | (4) | (55) | (72) | (4) | (76) | (293) | (27) | (320) | ||
Indirect expenses | (485) | (40) | (525) | (544) | (58) | (602) | (2,022) | (224) | (2,246) | ||
Restructuring costs | |||||||||||
- direct | (1) | -- | (1) | (1) | -- | (1) | (51) | 5 | (46) | ||
- indirect | (47) | -- | (47) | (50) | -- | (50) | (136) | (62) | (198) | ||
Litigation and conduct costs | -- | -- | -- | (214) | -- | (214) | (634) | -- | (634) | ||
Operating expenses | (747) | (72) | (819) | (1,042) | (97) | (1,139) | (3,826) | (450) | (4,276) | ||
Operating profit before impairment | |||||||||||
losses | 801 | 137 | 938 | 297 | 120 | 417 | 1,464 | 387 | 1,851 | ||
Impairment losses | (67) | (11) | (78) | (16) | (11) | (27) | (83) | (42) | (125) | ||
Operating profit | 734 | 126 | 860 | 281 | 109 | 390 | 1,381 | 345 | 1,726 | ||
Memo: | |||||||||||
Operating expenses - adjusted (1) | (699) | (72) | (771) | (777) | (97) | (874) | (3,005) | (393) | (3,398) | ||
Operating profit - adjusted (1) | 782 | 126 | 908 | 546 | 109 | 655 | 2,202 | 402 | 2,604 | ||
Key metrics | |||||||||||
Return on equity (2) | 36.8% | 24.6% | 34.2% | 13.5% | 20.6% | 15.1% | 16.2% | 16.2% | 16.2% | ||
Return on equity - adjusted (1,2) | 39.3% | 24.6% | 36.2% | 27.8% | 20.6% | 26.2% | 26.7% | 18.9% | 25.1% | ||
Net interest margin | 2.87% | 2.60% | 2.83% | 2.94% | 2.69% | 2.91% | 3.01% | 2.71% | 2.97% | ||
Cost:income ratio | 48.3% | 34.4% | 46.6% | 77.8% | 44.7% | 73.2% | 72.3% | 53.8% | 69.8% | ||
Cost:income ratio - adjusted (1) | 45.2% | 34.4% | 43.9% | 58.0% | 44.7% | 56.2% | 56.8% | 47.0% | 55.5% | ||
Loan impairment charge as % of gross | |||||||||||
customer loans and advances | 0.2% | 0.2% | 0.2% | -- | 0.2% | 0.1% | 0.1% | 0.2% | 0.1% | ||
30 September 2017 | 31 December 2016 | ||||||
Previously | From | Total | Previously | From | Total | ||
reported | W&G | UK PBB | reported | W&G | UK PBB | ||
Capital and balance sheet | £bn | £bn | £bn | £bn | £bn | £bn | |
Gross loans and advances to customers | 141.5 | 20.6 | 162.1 | 133.4 | 20.8 | 154.2 | |
Loan impairment provisions | (1.1) | (0.2) | (1.3) | (1.3) | (0.2) | (1.5) | |
Net loans and advances to customers | 140.4 | 20.4 | 160.8 | 132.1 | 20.6 | 152.7 | |
Funded assets | 164.5 | 25.6 | 190.1 | 155.6 | 25.8 | 181.4 | |
Risk elements in lending | 1.7 | 0.3 | 2.0 | 2.0 | 0.4 | 2.4 | |
Customer deposits (excluding repos) | 154.0 | 24.6 | 178.6 | 145.8 | 24.2 | 170.0 | |
Loan:deposit ratio (excluding repos) | 91% | 83% | 90% | 91% | 85% | 90% | |
Provision coverage (3) | 65% | 65% | 65% | 65% | 65% | 65% | |
Risk-weighted assets | 34.0 | 9.3 | 43.3 | 32.7 | 9.6 | 42.3 | |
Notes: | ||
(1) | Excluding restructuring costs and litigation and conduct costs. | |
(2) | RBS's CET 1 target is 13% but for the purposes of computing segmental return on equity (ROE), to better reflect the differential drivers of capital usage, segmental operating profit after tax and adjusted for preference dividends is divided by average notional equity allocated at a rate of 15% of the monthly average of segmental risk-weighted assets incorporating the effect of capital deductions (RWAes). RBS's Return on equity is calculated using profit for the period attributable to ordinary shareholders. | |
(3) | Provision coverage represents loan impairment provisions as a percentage of risk elements in lending. | |
NatWest Markets
Quarter ended | ||||
30 September 2017 | ||||
From | ||||
Previously | From Capital | Central items | Total | |
reported | Resolution | & other | NWM | |
Income statement | £m | £m | £m | £m |
Net interest income | 23 | 76 | -- | 99 |
Net fees and commissions | 27 | 6 | -- | 33 |
Income from trading activities | 350 | (462) | -- | (112) |
Own credit adjustments | (7) | 2 | -- | (5) |
Other operating income | 1 | 4 | -- | 5 |
Non-interest income | 371 | (450) | -- | (79) |
Total income | 394 | (374) | -- | 20 |
Direct expenses | ||||
- staff | (143) | (7) | (13) | (163) |
- other | (50) | (19) | (3) | (72) |
Indirect expenses | (113) | (35) | 16 | (132) |
Restructuring costs | ||||
- direct | (18) | (65) | 54 | (29) |
- indirect | (13) | 39 | (54) | (28) |
Litigation and conduct costs | (13) | (89) | -- | (102) |
Operating expenses | (350) | (176) | -- | (526) |
Operating profit/(loss) before impairment | ||||
releases | 44 | (550) | -- | (506) |
Impairment releases | -- | 71 | -- | 71 |
Operating profit/(loss) | 44 | (479) | -- | (435) |
Memo: | ||||
Total income - adjusted (1) | 401 | (376) | -- | 25 |
Operating expenses - adjusted (1,2) | (306) | (61) | -- | (367) |
Operating profit/(loss) - adjusted (1,2) | 95 | (366) | -- | (271) |
Key metrics | ||||
Return on equity (3) | 0.6% | nm | nm | (15.4%) |
Return on equity - adjusted (1,2,3) | 3.6% | nm | nm | (10.3%) |
Net interest margin | 0.48% | nm | nm | 1.24% |
Cost:income ratio | 88.8% | nm | nm | nm |
Cost:income ratio - adjusted (1,2) | 76.3% | nm | nm | nm |
30 September 2017 | |||
Previously | From Capital | Total | |
reported | Resolution | NWM | |
Capital and balance sheet | £bn | £bn | £bn |
Gross loans and advances to customers | 16.7 | 8.9 | 25.6 |
Loan impairment provisions | -- | (0.5) | (0.5) |
Net loans and advances to customers | 16.7 | 8.4 | 25.1 |
Loans and advances to bank | 2.8 | 4.5 | 7.3 |
Reverse repos | 34.4 | -- | 34.4 |
Securities | 31.2 | 1.3 | 32.5 |
Cash and eligible bills | 18.3 | 6.0 | 24.3 |
Other | 9.3 | 2.0 | 11.3 |
Funded assets | 112.7 | 22.2 | 134.9 |
Total assets | 215.7 | 89.3 | 305.0 |
Customer deposits (excluding repos) | 7.1 | 6.6 | 13.7 |
Bank deposits (excluding repos) | 6.9 | 7.3 | 14.2 |
Risk elements in lending | -- | 1.6 | 1.6 |
Repos | 30.1 | -- | 30.1 |
Debt securities in issue | 5.6 | 0.4 | 6.0 |
Loan:deposit ratio (excluding repos) | 236% | 128% | 184% |
Risk-weighted assets | 31.8 | 23.1 | 54.9 |
NatWest Markets
Quarter ended | |||||
31 December 2016 | |||||
Previously | From Capital | Total | |||
reported | Resolution | NWM | |||
Income statement | £m | £m | £m | ||
Net interest income | 29 | 44 | 73 | ||
Net fees and commissions | 12 | 22 | 34 | ||
Income from trading activities | 273 | (173) | 100 | ||
Own credit adjustments | (29) | (8) | (37) | ||
Other operating income | -- | (178) | (178) | ||
Non-interest income | 256 | (337) | (81) | ||
Total income | 285 | (293) | (8) | ||
Direct expenses | |||||
- staff | (64) | (23) | (87) | ||
- other | (7) | (3) | (10) | ||
Indirect expenses | (267) | (150) | (417) | ||
Restructuring costs | |||||
- direct | (3) | (21) | (24) | ||
- indirect | (43) | 13 | (30) | ||
Litigation and conduct costs | (466) | (115) | (581) | ||
Operating expenses | (850) | (299) | (1,149) | ||
Operating loss before impairment | |||||
releases | (565) | (592) | (1,157) | ||
Impairment releases | -- | 130 | 130 | ||
Operating loss | (565) | (462) | (1,027) | ||
Memo: | |||||
Total income - adjusted (1) | 314 | (285) | 29 | ||
Operating expenses - adjusted (1,2) | (338) | (176) | (514) | ||
Operating loss - adjusted (1,2) | (24) | (331) | (355) | ||
Key metrics | |||||
Return on equity (3) | (30.2%) | nm | (27.0%) | ||
Return on equity - adjusted (1,2,3) | (2.7%) | nm | (10.3%) | ||
Net interest margin | 0.82% | nm | 0.86% | ||
Cost:income ratio | nm | nm | nm | ||
Cost:income ratio - adjusted (1,2) | 107.6% | nm | nm | ||
31 December 2016 | |||||
Previously | From Capital | ||||
reported | Resolution | Total NWM | |||
Capital and balance sheet | £bn | £bn | £bn | ||
Gross loans and advances to customers | 17.4 | 13.6 | 31.0 | ||
Loan impairment provisions | -- | (0.8) | (0.8) | ||
Net loans and advances to customers | 17.4 | 12.8 | 30.2 | ||
Loans and advances to bank | 3.3 | 4.6 | 7.9 | ||
Reverse repos | 38.6 | 0.2 | 38.8 | ||
Securities | 22.0 | 3.3 | 25.3 | ||
Cash and eligible bills | 13.4 | 4.7 | 18.1 | ||
Other | 6.2 | 2.0 | 8.2 | ||
Funded assets | 100.9 | 27.6 | 128.5 | ||
Total assets | 240.0 | 132.5 | 372.5 | ||
Customer deposits (excluding repos) | 8.4 | 9.5 | 17.9 | ||
Bank deposits (excluding repos) | 9.8 | 11.5 | 21.3 | ||
Risk elements in lending | -- | 2.3 | 2.3 | ||
Repos | 27.3 | -- | 27.3 | ||
Debt securities in issue | 5.4 | 1.3 | 6.7 | ||
Loan:deposit ratio (excluding repos) | 208% | 134% | 169% | ||
Risk-weighted assets | 35.2 | 34.5 | 69.7 | ||
NatWest Markets
Year ended | |||
31 December 2016 | |||
Previously | From Capital | Total | |
reported | Resolution | NWM | |
Income statement | £m | £m | £m |
Net interest income | 104 | 239 | 343 |
Net fees and commissions | 43 | 98 | 141 |
Income from trading activities | 1,372 | (543) | 829 |
Own credit adjustments | 53 | 134 | 187 |
Strategic disposals | -- | (81) | (81) |
Other operating income | 2 | (209) | (207) |
Non-interest income | 1,470 | (601) | 869 |
Total income | 1,574 | (362) | 1,212 |
Direct expenses | |||
- staff | (256) | (102) | (358) |
- other | (35) | (84) | (119) |
Indirect expenses | (1,029) | (578) | (1,607) |
Restructuring costs | |||
- direct | (19) | (56) | (75) |
- indirect | (93) | (22) | (115) |
Litigation and conduct costs | (528) | (22) | (550) |
Operating expenses | (1,960) | (864) | (2,824) |
Operating loss before impairment | |||
losses | (386) | (1,226) | (1,612) |
Impairment losses | -- | (253) | (253) |
Operating loss | (386) | (1,479) | (1,865) |
Memo: | |||
Total income - adjusted (1) | 1,521 | (415) | 1,106 |
Operating expenses - adjusted (1,2) | (1,320) | (764) | (2,084) |
Operating loss - adjusted (1,2) | 201 | (1,432) | (1,231) |
Key metrics | |||
Return on equity (3) | (6.6%) | nm | (12.5%) |
Return on equity - adjusted (1,2,3) | 1.1% | nm | (8.7%) |
Net interest margin | 0.84% | nm | 0.91% |
Cost:income ratio | 124.5% | nm | nm |
Cost:income ratio - adjusted (1,2) | 86.8% | nm | 188.4% |
31 December 2016 | |||
Previously | From Capital | ||
reported | Resolution | Total NWM | |
Capital and balance sheet | £bn | £bn | £bn |
Gross loans and advances to customers | 17.4 | 13.6 | 31.0 |
Loan impairment provisions | -- | (0.8) | (0.8) |
Net loans and advances to customers | 17.4 | 12.8 | 30.2 |
Loans and advances to bank | 3.3 | 4.6 | 7.9 |
Reverse repos | 38.6 | 0.2 | 38.8 |
Securities | 22.0 | 3.3 | 25.3 |
Cash and eligible bills | 13.4 | 4.7 | 18.1 |
Other | 6.2 | 2.0 | 8.2 |
Funded assets | 100.9 | 27.6 | 128.5 |
Total assets | 240.0 | 132.5 | 372.5 |
Customer deposits (excluding repos) | 8.4 | 9.5 | 17.9 |
Bank deposits (excluding repos) | 9.8 | 11.5 | 21.3 |
Risk elements in lending | -- | 2.3 | 2.3 |
Repos | 27.3 | -- | 27.3 |
Debt securities in issue | 5.4 | 1.3 | 6.7 |
Loan:deposit ratio (excluding repos) | 208% | 134% | 169% |
Risk-weighted assets | 35.2 | 34.5 | 69.7 |
Notes:
(1) | Excluding own credit adjustments and strategic disposals. | |
(2) | Excluding restructuring costs and litigation and conduct costs. | |
(3) |
|
Capital Resolution
Quarter ended 30 September 2017 | |||||||
Total | |||||||
Previously | To NatWest | To Central | Capital | ||||
reported | Markets | items | Resolution | ||||
Income statement | £m | £m | £m | £m | |||
Net interest income from banking activities | 76 | (76) | -- | -- | |||
Net fees and commissions | 6 | (6) | -- | -- | |||
Income from trading activities | (462) | 462 | -- | -- | |||
Own credit adjustments | 2 | (2) | -- | -- | |||
Other operating income | 4 | (4) | -- | -- | |||
Non-interest income | (450) | 450 | -- | -- | |||
Total income | (374) | 374 | -- | -- | |||
Direct expenses | |||||||
- staff | (7) | 7 | -- | -- | |||
- other | (19) | 19 | -- | -- | |||
Indirect expenses | (35) | 35 | -- | -- | |||
Restructuring costs | |||||||
- direct | (65) | 65 | -- | -- | |||
- indirect | 39 | (39) | -- | -- | |||
Litigation and conduct costs | (89) | 89 | -- | -- | |||
Operating expenses | (176) | 176 | -- | -- | |||
Operating loss before impairment releases | (550) | 550 | -- | -- | |||
Impairment releases | 71 | (71) | -- | -- | |||
Operating loss | (479) | 479 | -- | -- | |||
Memo: | |||||||
Total income - adjusted (1) | (376) | 376 | -- | -- | |||
Operating expenses - adjusted (1,2) | (61) | 61 | -- | -- | |||
Operating loss - adjusted (1,2) | (366) | 366 | -- | -- | |||
30 September 2017 | |||||||
Total | |||||||
Previously | To NatWest | To Central | Capital | ||||
reported | Markets | items & other | Resolution | ||||
Capital and balance sheet | £bn | £bn | £bn | £bn | |||
Gross loans and advances to customers | 8.9 | (8.9) | -- | -- | |||
Loan impairment provisions | (0.5) | 0.5 | -- | -- | |||
Net loans and advances to customers | 8.4 | (8.4) | -- | -- | |||
Loans and advances to bank | 4.5 | (4.5) | -- | -- | |||
Total assets | 89.3 | (89.3) | -- | -- | |||
Funded assets | 22.2 | (22.2) | -- | -- | |||
Risk elements in lending | 1.6 | (1.6) | -- | -- | |||
Provision coverage (3) | 30% | nm | -- | -- | |||
Risk-weighted assets | 23.1 | (23.1) | -- | -- | |||
Capital Resolution
Quarter ended 31 December 2016 | |||||
Total | |||||
Previously | To NatWest | To Central | Capital | ||
reported | Markets | items & other | Resolution | ||
Income statement | £m | £m | £m | £m | |
Net interest income from banking activities | 44 | (44) | -- | -- | |
Net fees and commissions | 22 | (22) | -- | -- | |
Income from trading activities | (173) | 173 | -- | -- | |
Own credit adjustments | (8) | 8 | -- | -- | |
Other operating income | (178) | 178 | -- | -- | |
Non-interest income | (337) | 337 | -- | -- | |
Total income | (293) | 293 | -- | -- | |
Direct expenses | |||||
- staff | (23) | 23 | -- | -- | |
- other | (3) | 3 | -- | -- | |
Indirect expenses | (150) | 150 | -- | -- | |
Restructuring costs | |||||
- direct | (21) | 21 | -- | -- | |
- indirect | 13 | (13) | -- | -- | |
Litigation and conduct costs | (3,156) | 115 | 3,041 | -- | |
Operating expenses | (3,340) | 299 | 3,041 | -- | |
Operating loss before impairment releases | (3,633) | 592 | 3,041 | -- | |
Impairment releases | 130 | (130) | -- | -- | |
Operating loss | (3,503) | 462 | 3,041 | -- | |
Memo: | |||||
Total income - adjusted (1) | (285) | 285 | -- | -- | |
Operating expenses - adjusted (1,2) | (176) | 176 | -- | -- | |
Operating loss - adjusted (1,2) | (331) | 331 | -- | -- | |
31 December 2016 | |||||
Total | |||||
Previously | To NatWest | To Central | Capital | ||
reported | Markets | items & other | Resolution | ||
Capital and balance sheet | £bn | £bn | £bn | £bn | |
Gross loans and advances to customers | 13.6 | (13.6) | -- | -- | |
Loan impairment provisions | (0.8) | 0.8 | -- | -- | |
Net loans and advances to customers | 12.8 | (12.8) | -- | -- | |
Loans and advances to bank | 4.6 | (4.6) | -- | -- | |
Total assets | 132.5 | (132.5) | -- | -- | |
Funded assets | 27.6 | (27.6) | -- | -- | |
Risk elements in lending | 2.3 | (2.3) | -- | -- | |
Provision coverage (3) | 35% | nm | -- | -- | |
Risk-weighted assets | 34.5 | (34.5) | -- | -- | |
Capital Resolution
Year ended 31 December 2016 | |||||
Total | |||||
Previously | To NatWest | To Central | Capital | ||
reported | Markets | items & other | Resolution | ||
Income statement | £m | £m | £m | £m | |
Net interest income from banking activities | 239 | (239) | -- | -- | |
Net fees and commissions | 98 | (98) | -- | -- | |
Income from trading activities | (543) | 543 | -- | -- | |
Own credit adjustments | 134 | (134) | -- | -- | |
Strategic disposal | (81) | 81 | -- | -- | |
Other operating income | (209) | 209 | -- | -- | |
Non-interest income | (601) | 601 | -- | -- | |
Total income | (362) | 362 | -- | -- | |
Direct expenses | |||||
- staff | (102) | 102 | -- | -- | |
- other | (84) | 84 | -- | -- | |
Indirect expenses | (578) | 578 | -- | -- | |
Restructuring costs | |||||
- direct | (56) | 56 | -- | -- | |
- indirect | (22) | 22 | -- | -- | |
Litigation and conduct costs | (3,413) | 22 | 3,391 | -- | |
Operating expenses | (4,255) | 864 | 3,391 | -- | |
Operating loss before impairment losses | (4,617) | 1,226 | 3,391 | -- | |
Impairment losses | (253) | 253 | -- | -- | |
Operating loss | (4,870) | 1,479 | 3,391 | -- | |
Memo: | |||||
Total income - adjusted (1) | (415) | 415 | -- | -- | |
Operating expenses - adjusted (1,2) | (764) | 764 | -- | -- | |
Operating loss - adjusted (1,2) | (1,432) | 1,432 | -- | -- | |
31 December 2016 | |||||
Total | |||||
Previously | To NatWest | To Central | Capital | ||
reported | Markets | items & other | Resolution | ||
Capital and balance sheet | £bn | £bn | £bn | £bn | |
Gross loans and advances to customers | 13.6 | (13.6) | -- | -- | |
Loan impairment provisions | (0.8) | 0.8 | -- | -- | |
Net loans and advances to customers | 12.8 | (12.8) | -- | -- | |
Loans and advances to bank | 4.6 | (4.6) | -- | -- | |
Total assets | 132.5 | (132.5) | -- | -- | |
Funded assets | 27.6 | (27.6) | -- | -- | |
Risk elements in lending | 2.3 | (2.3) | -- | -- | |
Provision coverage (3) | 35% | nm | -- | -- | |
Risk-weighted assets | 34.5 | (34.5) | -- | -- | |
Notes:
(1) | Excluding own credit adjustments and strategic disposals. | |
(2) | Excluding restructuring costs and litigation and conduct costs. | |
(3) |
|
Williams & Glyn
Quarter ended | ||||
30 September 2017 | ||||
Previously | To | To Central | Total | |
reported | UK PBB | items & other (1) | W&G | |
Income statement | £m | £m | £m | £m |
Net interest income | 166 | (166) | -- | -- |
Non-interest income | 43 | (43) | -- | -- |
Total income | 209 | (209) | -- | -- |
Direct expenses | ||||
- staff | (45) | 28 | 17 | -- |
- other | (9) | 4 | 5 | -- |
Indirect expenses | (18) | 40 | (22) | -- |
Operating expenses | (72) | 72 | -- | -- |
Operating profit before impairment losses | 137 | (137) | -- | -- |
Impairment losses | (11) | 11 | -- | -- |
Operating profit | 126 | (126) | -- | -- |
Memo: | ||||
Operating expenses - adjusted (2) | (72) | 72 | -- | -- |
Operating profit - adjusted (2) | 126 | (126) | -- | -- |
Key metrics | ||||
Return on equity (3) | 24.6% | nm | nm | -- |
Return on equity - adjusted (2,3) | 24.6% | nm | nm | -- |
Net interest margin | 2.60% | nm | nm | -- |
Cost:income ratio | 34.4% | nm | nm | -- |
Cost:income ratio - adjusted (2) | 34.4% | nm | nm | -- |
Loan impairment charge as % of gross customer loans and advances | 0.2% | nm | nm | -- |
30 September 2017 | |||
Previously | |||
reported | To UK PBB | Total W&G | |
Capital and balance sheet | £bn | £bn | £bn |
Gross loans and advances to customers | 20.6 | (20.6) | -- |
Loan impairment provisions | (0.2) | 0.2 | -- |
Net loans and advances to customers | 20.4 | (20.4) | -- |
Funded assets | 25.6 | (25.6) | -- |
Risk elements in lending | 0.3 | (0.3) | -- |
Customer deposits (excluding repos) | 24.6 | (24.6) | -- |
Loan:deposit ratio (excluding repos) | 83% | nm | -- |
Provision coverage (4) | 65% | nm | -- |
Risk-weighted assets | 9.3 | (9.3) | -- |
Williams & Glyn
Quarter ended | ||||
31 December 2016 | ||||
Previously | To | To Central | Total | |
reported | UK PBB | items & other (1) | W&G | |
Income statement | £m | £m | £m | |
Net interest income | 170 | (170) | -- | -- |
Non-interest income | 47 | (47) | -- | -- |
Total income | 217 | (217) | -- | -- |
Direct expenses | ||||
- staff | (60) | 35 | 25 | -- |
- other | (13) | 4 | 9 | -- |
Indirect expenses | (24) | 58 | (34) | -- |
Operating expenses | (97) | 97 | -- | -- |
Operating profit before impairment losses | 120 | (120) | -- | -- |
Impairment losses | (11) | 11 | -- | -- |
Operating profit | 109 | (109) | -- | -- |
Memo: | ||||
Operating expenses - adjusted (2) | (97) | 97 | -- | -- |
Operating profit - adjusted (2) | 109 | (109) | -- | -- |
Key metrics | ||||
Return on equity (3) | 20.6% | nm | nm | -- |
Return on equity - adjusted (2,3) | 20.6% | nm | nm | -- |
Net interest margin | 2.69% | nm | nm | -- |
Cost:income ratio | 44.7% | nm | nm | -- |
Cost:income ratio - adjusted (2) | 44.7% | nm | nm | -- |
Loan impairment charge as % of gross customer loans and advances | 0.2% | nm | nm | -- |
31 December 2016 | |||
Previously | |||
reported | To UK PBB | Total W&G | |
Capital and balance sheet | £bn | £bn | £bn |
Gross loans and advances to customers | 20.8 | (20.8) | -- |
Loan impairment provisions | (0.2) | 0.2 | -- |
Net loans and advances to customers | 20.6 | (20.6) | -- |
Funded assets | 25.8 | (25.8) | -- |
Risk elements in lending | 0.4 | (0.4) | -- |
Customer deposits (excluding repos) | 24.2 | (24.2) | -- |
Loan:deposit ratio (excluding repos) | 85% | nm | -- |
Provision coverage (4) | 65% | nm | -- |
Risk-weighted assets | 9.6 | (9.6) | -- |
Williams & Glyn
Year ended | ||||
31 December 2016 | ||||
Previously | To | To Central | Total | |
reported | UK PBB | items & other(1) | W&G | |
Income statement | £m | £m | £m | |
Net interest income | 658 | (658) | -- | -- |
Non-interest income | 179 | (179) | -- | -- |
Total income | 837 | (837) | -- | -- |
Direct expenses | ||||
- staff | (250) | 142 | 108 | -- |
- other | (59) | 27 | 32 | -- |
Indirect expenses | (84) | 224 | (140) | -- |
Restructuring costs | ||||
- direct | (57) | (5) | 62 | -- |
- indirect | -- | 62 | (62) | -- |
Operating expenses | (450) | 450 | -- | -- |
Operating profit before impairment | ||||
losses | 387 | (387) | -- | -- |
Impairment losses | (42) | 42 | -- | -- |
Operating profit | 345 | (345) | -- | -- |
Memo: | ||||
Operating expenses - adjusted (2) | (393) | 393 | -- | -- |
Operating profit - adjusted (2) | 402 | (402) | -- | -- |
Key metrics | ||||
Return on equity (3) | 16.2% | nm | nm | -- |
Return on equity - adjusted (2,3) | 18.9% | nm | nm | -- |
Net interest margin | 2.71% | nm | nm | -- |
Cost:income ratio | 53.8% | nm | nm | -- |
Cost:income ratio - adjusted (2) | 47.0% | nm | nm | -- |
Loan impairment charge as % of gross customer loans and advances | 0.2% | nm | nm | -- |
31 December 2016 | |||
Previously | |||
reported | To UK PBB | Total W&G | |
Capital and balance sheet | £bn | £bn | £bn |
Loans and advances to customers (gross) | 20.8 | (20.8) | -- |
Loan impairment provisions | (0.2) | 0.2 | -- |
Net loans and advances to customers | 20.6 | (20.6) | -- |
Funded assets | 25.8 | (25.8) | -- |
Risk elements in lending | 0.4 | (0.4) | -- |
Customer deposits (excluding repos) | 24.2 | (24.2) | -- |
Loan:deposit ratio (excluding repos) | 85% | nm | -- |
Provision coverage (4) | 65% | nm | -- |
Risk-weighted assets | 9.6 | (9.6) | -- |
Notes:
(1) | Transfers to Central items represents balances that have been reallocated between direct and indirect costs. |
(2) | Excluding restructuring costs. |
(3) | RBS's CET 1 target is 13% but for the purposes of computing segmental return on equity (ROE), to better reflect the differential drivers of capital usage, segmental operating profit after tax and adjusted for preference dividends is divided by average notional equity allocated at a rate of 15% of the monthly average of segmental risk-weighted assets incorporating the effect of capital deductions (RWAes). RBS's Return on equity is calculated using profit for the period attributable to ordinary shareholders. |
(4) | Provision coverage represents loan impairment provisions as a percentage of risk elements in lending. |
Central items & other
Quarter ended | |||||
30 September 2017 | |||||
Total Central | |||||
Previously | From | From Capital | To NatWest | items & | |
reported | W&G (1) | Resolution (1) | Markets (1) | other | |
Income statement | £m | £m | £m | £m | £m |
Net interest income | 38 | -- | -- | -- | 38 |
Non-interest income | 1 | -- | -- | -- | 1 |
Total income | 39 | -- | -- | -- | 39 |
Direct expenses | |||||
- staff | (384) | (17) | -- | 13 | (388) |
- other | (610) | (5) | -- | 3 | (612) |
Indirect expenses | 1,046 | 22 | -- | (16) | 1,052 |
Restructuring costs | |||||
- direct | (154) | -- | -- | (54) | (208) |
- indirect | 50 | -- | -- | 54 | 104 |
Litigation and conduct costs | (12) | -- | -- | -- | (12) |
Operating expenses | (64) | -- | -- | -- | (64) |
Operating loss | (25) | -- | -- | -- | (25) |
Memo: | |||||
Operating expenses - adjusted (3) | 52 | -- | -- | -- | 52 |
Operating profit - adjusted (3) | 91 | -- | -- | -- | 91 |
30 September 2017 | |||
Total Central | |||
Previously | From Capital | items & | |
reported | Resolution | other | |
Capital and balance sheet | £bn | £bn | £bn |
Gross loans and advances to customers | 0.3 | -- | 0.3 |
Loan impairment provisions | (0.2) | -- | (0.2) |
Net loans and advances to customers | 0.1 | -- | 0.1 |
Total assets | 40.1 | -- | 40.1 |
Funded assets | 38.4 | -- | 38.4 |
Risk elements in lending | 0.1 | -- | 0.1 |
Customer deposits (excluding repos) | 0.2 | -- | 0.2 |
Risk-weighted assets | 1.1 | -- | 1.1 |
Central items & other
Quarter ended | ||||
31 December 2016 | ||||
Total Central | ||||
Previously | From | From Capital | items & | |
reported | W&G (1) | Resolution (1) | other | |
Income statement | £m | £m | £m | £m |
Net interest income | 37 | -- | -- | 37 |
Own credit adjustments | (77) | -- | -- | (77) |
Gain on redemption of own debt | 1 | -- | -- | 1 |
Other operating income | 446 | -- | -- | 446 |
Total income | 407 | -- | -- | 407 |
Direct expenses | ||||
- staff | (479) | (25) | -- | (504) |
- other | (991) | (9) | -- | (1,000) |
Indirect expenses | 1,547 | 34 | -- | 1,581 |
Restructuring costs | ||||
- direct | (957) | -- | -- | (957) |
- indirect | 121 | -- | -- | 121 |
Litigation and conduct costs | 192 | -- | (3,041) | (2,849) |
Operating expenses | (567) | -- | (3,041) | (3,608) |
Operating loss before impairment losses | (160) | -- | (3,041) | (3,201) |
Impairment losses | (1) | -- | -- | (1) |
Operating loss | (161) | -- | (3,041) | (3,202) |
Memo: | ||||
Total income - adjusted (2) | 483 | -- | -- | 483 |
Operating expenses - adjusted (3) | 77 | -- | -- | 77 |
Operating profit - adjusted (2,3) | 559 | -- | -- | 559 |
31 December 2016 | |||
Total Central | |||
Previously | From Capital | items & | |
reported | Resolution | other | |
Capital and balance sheet | £bn | £bn | £bn |
Gross loans and advances to customers | 0.3 | -- | 0.3 |
Loan impairment provisions | (0.2) | -- | (0.2) |
Net loans and advances to customers | 0.1 | -- | 0.1 |
Total assets | 28.2 | -- | 28.2 |
Funded assets | 25.4 | -- | 25.4 |
Customer deposits (excluding repos) | 0.2 | -- | 0.2 |
Risk-weighted assets | 1.5 | -- | 1.5 |
Central items & other
Year ended | ||||
31 December 2016 | ||||
Total Central | ||||
Previously | From | From Capital | items & | |
reported | W&G (1) | Resolution (1) | other | |
Income statement | £m | £m | £m | £m |
Net interest income | 116 | -- | -- | 116 |
Own credit adjustments | (10) | -- | -- | (10) |
Loss on redemption of own debt | (126) | -- | -- | (126) |
Strategic disposals | 245 | -- | -- | 245 |
Other operating income | 4 | -- | -- | 4 |
Total income | 229 | -- | -- | 229 |
Direct expenses | ||||
- staff | (2,256) | (108) | -- | (2,364) |
- other | (2,916) | (32) | -- | (2,948) |
Indirect expenses | 5,507 | 140 | -- | 5,647 |
Restructuring costs | ||||
- direct | (1,851) | (62) | -- | (1,913) |
- indirect | 369 | 62 | -- | 431 |
Litigation and conduct costs | (697) | -- | (3,391) | (4,088) |
Operating expenses | (1,844) | -- | (3,391) | (5,235) |
Operating loss | (1,615) | -- | (3,391) | (5,006) |
Memo: | ||||
Total income - adjusted (2) | 120 | -- | -- | 120 |
Operating expenses - adjusted (3) | 335 | -- | -- | 335 |
Operating profit - adjusted (2,3) | 455 | -- | -- | 455 |
31 December 2016 | |||
Total Central | |||
Previously | From Capital | items & | |
reported | Resolution | other | |
Capital and balance sheet | £bn | £bn | £bn |
Gross loans and advances to customers | 0.3 | -- | 0.3 |
Loan impairment provisions | (0.2) | -- | (0.2) |
Net loans and advances to customers | 0.1 | -- | 0.1 |
Total assets | 28.2 | -- | 28.2 |
Funded assets | 25.4 | -- | 25.4 |
Customer deposits (excluding repos) | 0.2 | -- | 0.2 |
Risk-weighted assets | 1.5 | -- | 1.5 |
Notes:
(1) | Transfers to Central items represents balances that have been reallocated between direct and indirect costs. |
(2) | Excluding own credit adjustments, gain/(loss) on redemption of own debt and strategic disposals. |
(3) | Excluding restructuring costs and litigation and conduct costs. |
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