6 Aug 2010 07:01
Appendix 2
Analysis by quarter
Appendix 2 Analysis by quarter
Summary consolidated income statement - pro forma
|
| 2009 |
|
2010 |
| Q2 2010 vs. | ||||
|
| Q2 | Q3 | Q4 |
| Q1 | Q2 |
| Q2 2009 | Q1 2010 |
|
| £m | £m | £m |
| £m | £m |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net interest income | 3,322 | 3,261 | 3,446 |
| 3,534 | 3,684 |
| 11% | 4% |
|
|
|
|
|
|
|
|
|
|
|
| Non-interest income (excluding insurance net premium income) | 1,498 | 2,532 | 2,786 |
| 4,131 | 3,820 |
| 155% | (8%) |
| Insurance net premium income | 1,301 | 1,301 | 1,308 |
| 1,289 | 1,278 |
| (2%) | (1%) |
|
|
|
|
|
|
|
|
|
|
|
| Non-interest income | 2,799 | 3,833 | 4,094 |
| 5,420 | 5,098 |
| 82% | (6%) |
|
|
|
|
|
|
|
|
|
|
|
| Total income | 6,121 | 7,094 | 7,540 |
| 8,954 | 8,782 |
| 43% | (2%) |
| Operating expenses | (4,066) | (4,195) | (4,473) |
| (4,430) | (4,103) |
| 1% | (7%) |
|
|
|
|
|
|
|
|
|
|
|
| Profit before other operating charges | 2,055 | 2,899 | 3,067 |
| 4,524 | 4,679 |
| 128% | 3% |
| Insurance net claims | (925) | (1,145) | (1,321) |
| (1,136) | (1,323) |
| 43% | 16% |
|
|
|
|
|
|
|
|
|
|
|
| Operating profit before impairment losses | 1,130 | 1,754 | 1,746 |
| 3,388 | 3,356 |
| 197% | (1%) |
| Impairment losses | (4,663) | (3,279) | (3,099) |
| (2,675) | (2,487) |
| (47%) | (7%) |
|
|
|
|
|
|
|
|
|
|
|
| Operating (loss)/profit* | (3,533) | (1,525) | (1,353) |
| 713 | 869 |
| (125%) | 22% |
| Amortisation of purchased intangible assets | (55) | (73) | (59) |
| (65) | (85) |
| 55% | 31% |
| Integration and restructuring costs | (355) | (324) | (228) |
| (168) | (254) |
| (28%) | 51% |
| Gain on redemption of own debt | 3,790 | - | - |
| - | 553 |
| (85%) | - |
| Strategic disposals | 212 | (155) | (166) |
| 53 | (411) |
| - | - |
| Bonus tax | - | - | (208) |
| (54) | (15) |
| - | (72%) |
| Asset Protection Scheme credit default swap - fair value changes | - | - | - |
| (500) | 500 |
| - | (200%) |
| Gains on pensions curtailment | - | - | 2,148 |
| - | - |
| - | - |
|
|
|
|
|
|
|
|
|
|
|
| Profit/(loss) before tax | 59 | (2,077) | 134 |
| (21) | 1,157 |
| - | - |
| Tax credit/(charge) | 640 | 576 | (649) |
| (106) | (825) |
| - | - |
|
|
|
|
|
|
|
|
|
|
|
| Profit/(loss) from continuing operations | 699 | (1,501) | (515) |
| (127) | 332 |
| (53%) | - |
| Loss from discontinued operations, net of tax | (13) | (7) | (7) |
| (4) | (26) |
| 100% | - |
|
|
|
|
|
|
|
|
|
|
|
| Profit/(loss) for the period | 686 | (1,508) | (522) |
| (131) | 306 |
| (55%) | - |
| Minority interests | (83) | (47) | (47) |
| (12) | (30) |
| (64%) | 150% |
| Preference share and other dividends | (432) | (245) | (144) |
| (105) | (19) |
| (96%) | (82%) |
|
|
|
|
|
|
|
|
|
|
|
| Profit/(loss) attributable to ordinary and B shareholders before write-down of goodwill and other intangible assets | 171 | (1,800) | (713) |
| (248) | 257 |
| 50% | - |
| Write-down of goodwill and other intangible assets, net of tax | (311) | - | (52) |
| - | - |
| - | - |
| (Loss)/profit attributable to ordinary and B shareholders | (140) | (1,800) | (765) |
| (248) | 257 |
| - | - |
*(Loss)/profit before tax, amortisation of purchased intangible assets, integration and restructuring costs, gain on redemption of own debt, strategic disposals, bonus tax, Asset Protection Scheme credit default swap - fair value changes, gains on pensions curtailment and write-down of goodwill and other intangible assets.
Appendix 2 Analysis by quarter
Summary consolidated income statement - pro forma (continued)
|
| 2009 |
|
2010 |
| Q2 2010 vs. | ||||
| Key metrics | Q2 |
Q3 | Q4 |
|
Q1 | Q2 |
| Q2 2009 | Q1 2010 |
|
|
|
|
|
|
|
|
|
|
|
| Net interest margin | 1.70% | 1.75% | 1.83% |
| 1.92% | 2.03% |
| 33bp | 11bp |
| Cost:income ratio | 66% | 59% | 59% |
| 49% | 47% |
| 1,900bp | 200bp |
| Adjusted cost:income ratio | 78% | 71% | 72% |
| 57% | 55% |
| 2,300bp | 200bp |
| Risk-weighted assets - gross | £547.3bn | £594.7bn | £565.8bn |
| £585.5bn | £597.3bn |
| 9% | 2% |
| Benefit of Asset Protection Scheme | - | - | (£127.6bn) |
| (£124.8bn) | (£123.4bn) |
| - | (1%) |
| Risk-weighted assets | £547.3bn | £594.7bn | £438.2bn |
| £460.7bn | £473.9bn |
| (13%) | 3% |
| Loan deposit ratio (Group - net of provisions) | 143% | 139% | 135% |
| 131% | 128% |
| (1,500bp) | (300bp) |
| Risk elements in lending (REIL) | £30.7bn | £35.0bn | £35.0bn |
| £36.5bn | £36.2bn |
| 18% | (1%) |
| Provision balance as % of REIL and PPL | 44% | 43% | 42% |
| 45% | 43% |
| (100bp) | (200bp) |
Appendix 2 Analysis by quarter
Divisional performance
The operating profit/(loss) of each division before amortisation of purchased intangible assets, integration and restructuring costs, gain on redemption of own debt, strategic disposals, bonus tax, Asset Protection Scheme credit default swap - fair value changes, gains on pensions curtailments and write-down of goodwill and other intangible assets, and after allocation of Business Services, Group Centre and Treasury funding costs is shown below. The Group manages costs where they arise. Customer-facing divisions control their direct expenses whilst Business Services is responsible for shared costs.
|
| 2009 |
|
2010 |
| Q2 2010 vs. | ||||
|
| Q2 | Q3 | Q4 |
|
Q1 |
Q2 |
| Q2 2009 | Q1 2010 |
|
| £m | £m | £m |
|
£m |
£m |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating profit/(loss) before impairment losses by division |
|
|
|
|
|
|
|
|
|
| UK Retail | 490 | 468 | 579 |
| 527 | 576 |
| 18% | 9% |
| UK Corporate | 535 | 566 | 530 |
| 504 | 588 |
| 10% | 17% |
| Wealth | 134 | 120 | 99 |
| 66 | 88 |
| (34%) | 33% |
| Global Banking & Markets | 1,018 | 593 | 1,001 |
| 1,498 | 1,245 |
| 22% | (17%) |
| Global Transaction Services | 269 | 275 | 228 |
| 233 | 282 |
| 5% | 21% |
| Ulster Bank | 78 | 59 | 73 |
| 81 | 104 |
| 33% | 28% |
| US Retail & Commercial | 136 | 137 | 134 |
| 183 | 273 |
| 101% | 49% |
| RBS Insurance | 142 | 13 | (170) |
| (50) | (203) |
| - | - |
| Central items | (311) | 121 | (3) |
| 201 | 337 |
| - | 68% |
|
|
|
|
|
|
|
|
|
|
|
| Core | 2,491 | 2,352 | 2,471 |
| 3,243 | 3,290 |
| 32% | 1% |
| Non-Core | (1,361) | (598) | (725) |
| 145 | 66 |
| (105%) | (54%) |
|
|
|
|
|
|
|
|
|
|
|
| Group operating profit before impairment losses | 1,130 | 1,754 | 1,746 |
| 3,388 | 3,356 |
| 197% | (1%) |
|
|
|
|
|
|
|
|
|
|
|
| Included in the above are movements in fair value of own debt: |
|
|
|
|
|
|
|
|
|
| Global Banking & Markets | (482) | (320) | 106 |
| (32) |
331 |
| - | - |
| Central items | (478) | (163) | 164 |
| (137) |
288 |
| - | - |
|
|
|
|
|
|
|
|
|
|
|
|
| (960) | (483) | 270 |
| (169) |
619 |
| - | - |
|
|
|
|
|
|
|
|
|
|
|
| Impairment losses by division |
|
|
|
|
|
|
|
|
|
| UK Retail | 470 | 404 | 451 |
| 387 |
300 |
| (36%) | (22%) |
| UK Corporate | 450 | 187 | 190 |
| 186 |
198 |
| (56%) | 6% |
| Wealth | 16 | 1 | 10 |
| 4 |
7 |
| (56%) | 75% |
| Global Banking & Markets | (31) | 272 | 130 |
| 32 |
164 |
| - | - |
| Global Transaction Services | 4 | 22 | 4 |
| - |
3 |
| (25%) | - |
| Ulster Bank | 90 | 144 | 348 |
| 218 |
281 |
| - | 29% |
| US Retail & Commercial | 146 | 180 | 153 |
| 143 |
144 |
| (1%) | 1% |
| RBS Insurance | 1 | 2 | - |
| - |
- |
| - | - |
| Central items | 1 | 1 | 2 |
| 1 |
- |
| - | - |
|
|
|
|
|
|
|
|
|
|
|
| Core | 1,147 | 1,213 | 1,288 |
| 971 |
1,097 |
| (4%) | 13% |
| Non-Core | 3,516 | 2,066 | 1,811 |
| 1,704 |
1,390 |
| (60%) | (18%) |
|
|
|
|
|
|
|
|
|
|
|
| Group impairment losses | 4,663 | 3,279 | 3,099 |
| 2,675 |
2,487 |
| (47%) | (7%) |
Appendix 2 Analysis by quarter
Divisional performance (continued)
|
| 2009 |
|
2010 |
| Q2 2010 vs. | ||||
|
| Q2 | Q3 | Q4 |
|
Q1 |
Q2 |
| Q2 2009 | Q1 2010 |
|
| £m | £m | £m |
| £m | £m |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating (loss)/profit by division |
|
|
|
|
|
|
|
|
|
| UK Retail | 20 | 64 | 128 |
| 140 |
276 |
| - | 97% |
| UK Corporate | 85 | 379 | 340 |
| 318 |
390 |
| - | 23% |
| Wealth | 118 | 119 | 89 |
| 62 |
81 |
| (31%) | 31% |
| Global Banking & Markets | 1,049 | 321 | 871 |
| 1,466 |
1,081 |
| 3% | (26%) |
| Global Transaction Services | 265 | 253 | 224 |
| 233 |
279 |
| 5% | 20% |
| Ulster Bank | (12) | (85) | (275) |
| (137) |
(177) |
| - | 29% |
| US Retail & Commercial | (10) | (43) | (19) |
| 40 |
129 |
| - | - |
| RBS Insurance | 141 | 11 | (170) |
| (50) |
(203) |
| - | - |
| Central items | (312) | 120 | (5) |
| 200 |
337 |
| - | 69% |
|
|
|
|
|
|
|
|
|
|
|
| Core | 1,344 | 1,139 | 1,183 |
| 2,272 |
2,193 |
| 63% | (3%) |
| Non-Core | (4,877) | (2,664) | (2,536) |
| (1,559) |
(1,324) |
| (73%) | (15%) |
|
|
|
|
|
|
|
|
|
|
|
| Group operating (loss)/profit | (3,533) | (1,525) | (1,353) |
| 713 |
869 |
| (125%) | 22% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loan impairment losses | 4,520 | 3,262 | 3,032 |
| 2,602 |
2,479 |
| (45%) | (5%) |
| Securities impairments losses | 143 | 17 | 67 |
| 73 |
8 |
| (94%) | (89%) |
|
|
|
|
|
|
|
|
|
|
|
|
| 4,663 | 3,279 | 3,099 |
| 2,675 |
2,487 |
| (47%) | (7%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loan impairment charge as % of gross loans and advances (excluding reverse repurchase agreements) | 3.0% | 2.2% | 2.1% |
| 1.8% | 1.8% |
| (120bp) | - |
|
| 2009 |
|
2010 |
| 30 June 2010 vs. | ||||
|
| 30 June | 30 Sept | 31 Dec |
| 31 Mar | 30 June |
| 30 June | 31 Mar |
|
| £bn | £bn | £bn |
| £bn | £bn |
| 2009 | 2010 |
|
|
|
|
|
|
|
|
|
|
|
| Risk-weighted assets by division |
|
|
|
|
|
|
|
|
|
| UK Retail | 54.0 | 51.6 | 51.3 |
| 49.8 |
49.1 |
| (9%) | (1%) |
| UK Corporate | 89.5 | 91.0 | 90.2 |
| 91.3 |
87.6 |
| (2%) | (4%) |
| Wealth | 10.3 | 10.7 | 11.2 |
| 11.7 |
12.0 |
| 17% | 3% |
| Global Banking & Markets | 112.5 | 121.5 | 123.7 |
| 141.8 |
141.3 |
| 26% | - |
| Global Transaction Services | 16.7 | 18.9 | 19.1 |
| 20.4 |
19.4 |
| 16% | (5%) |
| Ulster Bank | 26.2 | 28.5 | 29.9 |
| 32.8 |
30.5 |
| 16% | (7%) |
| US Retail & Commercial | 55.6 | 62.8 | 59.7 |
| 63.8 |
65.5 |
| 18% | 3% |
| Other | 8.5 | 9.0 | 9.4 |
| 9.6 |
16.9 |
| 99% | 76% |
|
|
|
|
|
|
|
|
|
|
|
| Core | 373.3 | 394.0 | 394.5 |
| 421.2 |
422.3 |
| 13% | - |
| Non-Core | 174.0 | 200.7 | 171.3 |
| 164.3 |
175.0 |
| 1% | 7% |
|
|
|
|
|
|
|
|
|
|
|
|
| 547.3 | 594.7 | 565.8 |
| 585.5 |
597.3 |
| 9% | 2% |
| Benefit of Asset Protection Scheme | - | - | (127.6) |
| (124.8) | (123.4) |
| - | (1%) |
|
|
|
|
|
|
|
|
|
|
|
| Total | 547.3 | 594.7 | 438.2 |
| 460.7 | 473.9 |
| (13%) | 3% |
Appendix 2 Analysis by quarter
UK Retail
|
| 2009 |
|
2010 |
| Q2 2010 vs. | ||||
|
| Q2 | Q3 | Q4 |
|
Q1 |
Q2 |
| Q2 2009 | Q1 2010 |
|
| £m | £m | £m |
| £m | £m |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income statement |
|
|
|
|
|
|
|
|
|
| Net interest income | 868 | 848 | 939 |
| 933 | 1,001 |
| 15% | 7% |
|
|
|
|
|
|
|
|
|
|
|
| Net fees and commissions - banking | 321 | 303 | 283 |
| 259 | 263 |
| (18%) | 2% |
| Other non-interest income (net of insurance claims) | 69 | 69 | 60 |
| 56 | 56 |
| (19%) | - |
|
|
|
|
|
|
|
|
|
|
|
| Non-interest income | 390 | 372 | 343 |
| 315 | 319 |
| (18%) | 1% |
|
|
|
|
|
|
|
|
|
|
|
| Total income | 1,258 | 1,220 | 1,282 |
| 1,248 | 1,320 |
| 5% | 6% |
|
|
|
|
|
|
|
|
|
|
|
| Direct expenses |
|
|
|
|
|
|
|
|
|
| - staff | (214) | (206) | (211) |
| (198) | (203) |
| (5%) | 3% |
| - other | (102) | (99) | (105) |
| (105) | (111) |
| 9% | 6% |
| Indirect expenses | (452) | (447) | (387) |
| (418) | (430) |
| (5%) | 3% |
|
|
|
|
|
|
|
|
|
|
|
|
| (768) | (752) | (703) |
| (721) | (744) |
| (3%) | 3% |
|
|
|
|
|
|
|
|
|
|
|
| Operating profit before impairment losses | 490 | 468 | 579 |
| 527 | 576 |
| 18% | 9% |
| Impairment losses | (470) | (404) | (451) |
| (387) | (300) |
| (36%) | (22%) |
|
|
|
|
|
|
|
|
|
|
|
| Operating profit | 20 | 64 | 128 |
| 140 | 276 |
| - | 97% |
|
|
|
|
|
|
|
|
|
|
|
| Analysis of income by product |
|
|
|
|
|
|
|
|
|
| Personal advances | 311 | 303 | 273 |
| 234 | 236 |
| (24%) | 1% |
| Personal deposits | 354 | 319 | 279 |
| 277 | 277 |
| (22%) | - |
| Mortgages | 273 | 319 | 415 |
| 422 | 478 |
| 75% | 13% |
| Bancassurance | 69 | 69 | 56 |
| 59 | 58 |
| (16%) | (2%) |
| Cards | 212 | 225 | 228 |
| 229 | 239 |
| 13% | 4% |
| Other | 39 | (15) | 31 |
| 27 | 32 |
| (18%) | 19% |
|
|
|
|
|
|
|
|
|
|
|
| Total income | 1,258 | 1,220 | 1,282 |
| 1,248 | 1,320 |
| 5% | 6% |
|
|
|
|
|
|
|
|
|
|
|
| Analysis of impairment by sector |
|
|
|
|
|
|
|
|
|
| Mortgages | 41 | 26 | 35 |
| 48 | 44 |
| 7% | (8%) |
| Personal | 299 | 247 | 282 |
| 233 | 168 |
| (44%) | (28%) |
| Cards | 130 | 131 | 134 |
| 106 | 88 |
| (32%) | (17%) |
|
|
|
|
|
|
|
|
|
|
|
| Total impairment | 470 | 404 | 451 |
| 387 | 300 |
| (36%) | (22%) |
|
|
|
|
|
|
|
|
|
|
|
| Loan impairment charge as % of gross customer loans and advances by sector |
|
|
|
|
|
|
|
|
|
| Mortgages | 0.2% | 0.1% | 0.2% |
| 0.2% | 0.2% |
| - | - |
| Personal | 8.3% | 6.8% | 8.3% |
| 7.1% | 5.3% |
| (300bp) | (180bp) |
| Cards | 8.5% | 8.6% | 8.6% |
| 7.1% | 5.9% |
| (260bp) | (120bp) |
|
|
|
|
|
|
|
|
|
|
|
|
| 1.9% | 1.6% | 1.8% |
| 1.5% | 1.1% |
| (80bp) | (40bp) |
Appendix 2 Analysis by quarter
UK Retail(continued)
|
| 2009 |
|
2010 |
| Q2 2010 vs. | ||||
| Key metrics | Q2 | Q3 | Q4 |
| Q1 | Q2 |
| Q2 2009 | Q1 2010 |
|
|
|
|
|
|
|
|
|
|
|
| Performance ratios |
|
|
|
|
|
|
|
|
|
| Return on equity (1) | 1.2% | 4.0% | 8.3% |
| 9.4% |
18.8% |
| 1,760bp | 940bp |
| Net interest margin | 3.69% | 3.47% | 3.74% |
| 3.66% |
3.88% |
| 19bp | 22bp |
| Cost:income ratio | 60% | 57% | 54% |
| 56% |
57% |
| 300bp | (100bp) |
| Adjusted cost:income ratio (2) | 61% | 62% | 55% |
| 58% |
56% |
| 500bp | 200bp |
|
| 2009 |
|
2010 |
| 30 June 2010 vs. | ||||
|
| 30 June | 30 Sept | 31 Dec |
| 31 Mar | 30 June |
| 30 June | 31 Mar |
|
| £bn | £bn | £bn |
| £bn | £bn |
| 2009 | 2010 |
|
|
|
|
|
|
|
|
|
|
|
| Capital and balance sheet |
|
|
|
|
|
|
|
|
|
| Loans and advances to customers (gross) |
|
|
|
|
|
|
|
|
|
| - mortgages | 76.6 | 80.3 | 83.2 |
| 84.8 |
86.9 |
| 13% | 2% |
| - personal | 14.4 | 14.5 | 13.6 |
| 13.2 | 12.8 |
| (11%) | (3%) |
| - cards | 6.1 | 6.1 | 6.2 |
| 6.0 | 6.0 |
| (2%) | - |
| Customer deposits (excluding bancassurance) | 83.4 | 85.6 | 87.2 |
| 89.4 | 90.0 |
| 8% | 1% |
| Assets under management (excluding deposits) | 4.7 | 5.0 | 5.3 |
| 5.3 | 5.4 |
| 15% | 2% |
| Risk elements in lending | 4.5 | 4.7 | 4.6 |
| 4.7 | 4.8 |
| 7% | 2% |
| Loan:deposit ratio (excluding repos) | 113% | 115% | 115% |
| 113% | 114% |
| 100bp | 100bp |
| Risk-weighted assets | 54.0 | 51.6 | 51.3 |
| 49.8 | 49.1 |
| (9%) | (1%) |
Notes:
| (1) | Return on equity is based on divisional operating profit after tax, divided by divisional notional equity (based on 8% of divisional risk-weighted assets, adjusted for capital deductions). |
| (2) | Adjusted cost:income ratio is based on total income after netting insurance claims and operating expenses. |
Appendix 2 Analysis by quarter
UK Corporate
|
| 2009 |
|
2010 |
| Q2 2010 vs. | ||||
|
| Q2 | Q3 | Q4 |
| Q1 | Q2 |
| Q2 2009 | Q1 2010 |
|
| £m | £m | £m |
| £m | £m |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income statement |
|
|
|
|
|
|
|
|
|
| Net interest income | 560 | 607 | 626 |
| 610 | 647 |
| 16% | 6% |
|
|
|
|
|
|
|
|
|
|
|
| Net fees and commissions | 219 | 223 | 222 |
| 224 | 233 |
| 6% | 4% |
| Other non-interest income | 109 | 106 | 100 |
| 105 | 107 |
| (2%) | 2% |
|
|
|
|
|
|
|
|
|
|
|
| Non-interest income | 328 | 329 | 322 |
| 329 | 340 |
| 4% | 3% |
|
|
|
|
|
|
|
|
|
|
|
| Total income | 888 | 936 | 948 |
| 939 | 987 |
| 11% | 5% |
|
|
|
|
|
|
|
|
|
|
|
| Direct expenses |
|
|
|
|
|
|
|
|
|
| - staff | (182) | (174) | (212) |
| (205) | (189) |
| 4% | (8%) |
| - other | (46) | (71) | (77) |
| (100) | (78) |
| 70% | (22%) |
| Indirect expenses | (125) | (125) | (129) |
| (130) | (132) |
| 6% | 2% |
|
|
|
|
|
|
|
|
|
|
|
|
| (353) | (370) | (418) |
| (435) | (399) |
| 13% | (8%) |
|
|
|
|
|
|
|
|
|
|
|
| Operating profit before impairment losses | 535 | 566 | 530 |
| 504 | 588 |
| 10% | 17% |
| Impairment losses | (450) | (187) | (190) |
| (186) | (198) |
| (56%) | 6% |
|
|
|
|
|
|
|
|
|
|
|
| Operating profit | 85 | 379 | 340 |
| 318 | 390 |
| - | 23% |
|
|
|
|
|
|
|
|
|
|
|
| Analysis of income by business |
|
|
|
|
|
|
|
|
|
| Corporate and commercial lending | 520 | 546 | 589 |
| 630 |
660 |
| 27% | 5% |
| Asset and invoice finance | 123 | 129 | 140 |
| 134 |
154 |
| 25% | 15% |
| Corporate deposits | 264 | 241 | 191 |
| 176 |
185 |
| (30%) | 5% |
| Other | (19) | 20 | 28 |
| (1) |
(12) |
| (37%) | - |
|
|
|
|
|
|
|
|
|
|
|
| Total income | 888 | 936 | 948 |
| 939 |
987 |
| 11% | 5% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Analysis of impairment by Sector |
|
|
|
|
|
|
|
|
|
| Banks and financial institutions | 3 | 4 | 6 |
| 2 |
(9) |
| - | - |
| Hotels and restaurants | 36 | 7 | 40 |
| 16 |
12 |
| (67%) | (25%) |
| Housebuilding and construction | 55 | 58 | (13) |
| 14 |
8 |
| (85%) | (43%) |
| Manufacturing | 17 | 2 | 28 |
| 6 |
2 |
| (88%) | (67%) |
| Other | 88 | 31 | 12 |
| 37 |
83 |
| (6%) | 124% |
| Private sector education, health, social work, recreational and community services | 32 | (4) | 23 |
| 8 | - |
| - | - |
| Property | 149 | 69 | 30 |
| 66 |
61 |
| (59%) | (8%) |
| Wholesale and retail trade, repairs | 23 | 16 | 23 |
| 18 | 28 |
| 22% | 56% |
| Asset and invoice finance | 47 | 4 | 41 |
| 19 | 13 |
| (72%) | (32%) |
|
|
|
|
|
|
|
|
|
|
|
| Total impairment | 450 | 187 | 190 |
| 186 |
198 |
| (56%) | 6% |
Appendix 2 Analysis by quarter
UK Corporate (continued)
|
| 2009 |
|
2010 |
| Q2 2010 vs. | ||||
|
| Q2* | Q3* | Q4* |
|
Q1* |
Q2 |
| Q2 2009 | Q1 2010 |
|
|
|
|
|
|
|
|
|
|
|
| Loan impairment charge as % of gross customer loans and advances (excluding reverse repurchase agreements) by sector |
|
|
|
|
|
|
|
| |
| Banks and financial institutions | 0.3% | 0.3% | 0.4% |
| 0.1% |
(0.6%) |
| (90bp) | (70bp) |
| Hotels and restaurants | 2.2% | 0.4% | 2.4% |
| 1.0% |
0.7% |
| (150bp) | (30bp) |
| Housebuilding and construction | 4.8% | 5.0% | (1.2%) |
| 1.3% |
0.7% |
| (410bp) | (60bp) |
| Manufacturing | 1.2% | 0.1% | 1.9% |
| 0.4% |
0.1% |
| (110bp) | (30bp) |
| Other | 1.1% | 0.4% | 0.2% |
| 0.5% |
1.0% |
| (10bp) | 50bp |
| Private sector education, health, social work, recreational and community services | 2.0% | (0.2%) | 1.4% |
| 0.4% | - |
| (200bp) | (40bp) |
| Property | 1.8% | 0.8% | 0.4% |
| 0.8% |
0.8% |
| (100bp) | - |
| Wholesale and retail trade, repairs | 0.9% | 0.6% | 0.9% |
| 0.7% | 1.1% |
| 20bp | 40bp |
| Asset and invoice finance | 2.2% | 0.2% | 1.9% |
| 0.8% |
0.6% |
| (160bp) | (20bp) |
|
|
|
|
|
|
|
|
|
|
|
|
| 1.6% | 0.7% | 0.7% |
| 0.7% |
0.7% |
| (90bp) | - |
| Key metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Performance ratios |
|
|
|
|
|
|
|
|
|
| Return on equity (1) | 3.2% | 13.7% | 12.4% |
| 11.6% |
15.0% |
| 1,180bp | 340bp |
| Net interest margin | 2.17% | 2.38% | 2.47% |
| 2.38% |
2.50% |
| 33bp | 12bp |
| Cost:income ratio | 40% | 40% | 44% |
| 46% |
40% |
| - | 600bp |
* Revised to reflect improvement in data quality to more accurately reflect Standard Industrial Classification.
Note:
| (1) | Return on equity is based on divisional operating profit after tax, divided by divisional notional equity (based on 8% of divisional risk-weighted assets, adjusted for capital deductions). |
Appendix 2 Analysis by quarter
UK Corporate (continued)
|
| 2009 |
|
2010 |
| 30 June 2010 vs. | ||||
|
| 30 June | 30 Sept | 31 Dec |
| 31 Mar | 30 June |
| 30 June | 31 Mar |
|
| £bn | £bn | £bn |
| £bn | £bn |
| 2009 | 2010 |
|
|
|
|
|
|
|
|
|
|
|
| Capital and balance sheet |
|
|
|
|
|
|
|
|
|
| Total third party assets | 112.6 | 113.9 | 111.6 |
| 114.3 | 115.2 |
| 2% | 1% |
| Loans and advances to customers (gross) |
|
|
|
|
|
|
|
|
|
| - banks and financial institutions | 4.1 | 6.0 | 6.3 |
| 6.5 | 6.5 |
| 59% | - |
| - hotels and restaurants | 6.5 | 7.1 | 6.7 |
| 6.6 | 7.0 |
| 8% | 6% |
| - housebuilding and construction | 4.6 | 4.6 | 4.3 |
| 4.3 | 4.6 |
| - | 7% |
| - manufacturing | 5.9 | 6.2 | 5.9 |
| 5.9 | 5.5 |
| (7%) | (7%) |
| - other | 32.7 | 31.0 | 29.9 |
| 31.1 | 32.6 |
| - | 5% |
| - private sector education, health, social work, recreational and community services | 6.4 | 6.6 | 6.5 |
| 8.5 | 9.1 |
| 42% | 7% |
| - property | 33.8 | 33.0 | 33.0 |
| 32.0 | 30.3 |
| (10%) | (5%) |
| ‑ wholesale and retail trade, repairs | 10.0 | 10.6 | 10.2 |
| 10.4 | 10.4 |
| 4% | - |
| ‑ asset and invoice finance | 8.6 | 8.8 | 8.8 |
| 9.0 | 9.2 |
| 7% | 2% |
| Customer deposits | 85.6 | 86.7 | 87.8 |
| 91.4 | 95.4 |
| 11% | 4% |
| Risk elements in lending | 2.4 | 2.5 | 2.3 |
| 2.5 | 2.9 |
| 21% | 16% |
| Loan:deposit ratio (excluding repos) | 130% | 130% | 126% |
| 124% | 119% |
| (1,100bp) | (500bp) |
| Risk-weighted assets | 89.5 | 91.0 | 90.2 |
| 91.3 | 87.6 |
| (2%) | (4%) |
Appendix 2 Analysis by quarter
Wealth
|
| 2009 |
|
2010 |
| Q2 2010 vs. | ||||
|
| Q2 | Q3 | Q4 |
|
Q1 |
Q2 |
| Q2 2009 | Q1 2010 |
|
| £m | £m | £m |
| £m | £m |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income statement |
|
|
|
|
|
|
|
|
|
| Net interest income | 176 | 168 | 161 |
| 143 | 150 |
| (15%) | 5% |
|
|
|
|
|
|
|
|
|
|
|
| Net fees and commissions | 90 | 92 | 91 |
| 95 | 97 |
| 8% | 2% |
| Other non-interest income | 21 | 19 | 22 |
| 17 | 19 |
| (10%) | 12% |
|
|
|
|
|
|
|
|
|
|
|
| Non-interest income | 111 | 111 | 113 |
| 112 | 116 |
| 5% | 4% |
|
|
|
|
|
|
|
|
|
|
|
| Total income | 287 | 279 | 274 |
| 255 | 266 |
| (7%) | 4% |
|
|
|
|
|
|
|
|
|
|
|
| Direct expenses |
|
|
|
|
|
|
|
|
|
| - staff | (78) | (82) | (107) |
| (99) | (92) |
| 18% | (7%) |
| - other | (34) | (35) | (37) |
| (30) | (34) |
| - | 13% |
| Indirect expenses | (41) | (42) | (31) |
| (60) | (52) |
| 27% | (13%) |
|
|
|
|
|
|
|
|
|
|
|
|
| (153) | (159) | (175) |
| (189) | (178) |
| 16% | (6%) |
|
|
|
|
|
|
|
|
|
|
|
| Operating profit before impairment losses | 134 | 120 | 99 |
| 66 | 88 |
| (34%) | 33% |
| Impairment losses | (16) | (1) | (10) |
| (4) | (7) |
| (56%) | 75% |
|
|
|
|
|
|
|
|
|
|
|
| Operating profit | 118 | 119 | 89 |
| 62 | 81 |
| (31%) | 31% |
|
|
|
|
|
|
|
|
|
|
|
| Analysis of income |
|
|
|
|
|
|
|
|
|
| Private Banking | 242 | 232 | 223 |
| 204 | 216 |
| (11%) | 6% |
| Investments | 45 | 47 | 51 |
| 51 | 50 |
| 11% | (2%) |
|
|
|
|
|
|
|
|
|
|
|
| Total income | 287 | 279 | 274 |
| 255 | 266 |
| (7%) | 4% |
|
|
|
|
|
|
|
|
|
|
|
| Key metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Performance ratios |
|
|
|
|
|
|
|
|
|
| Net interest margin | 4.82% | 4.34% | 3.94% |
| 3.38% | 3.36% |
| (146bp) | (2bp) |
| Cost:income ratio | 53% | 57% | 64% |
| 74% | 67% |
| (1,400bp) | 700bp |
|
| 2009 |
|
2010 |
| 30 June 2010 vs. | ||||
|
| 30 June | 30 Sept | 31 Dec |
| 31 Mar | 30 June |
| 30 June | 31 Mar |
|
| £bn | £bn | £bn |
| £bn | £bn |
| 2009 | 2010 |
|
|
|
|
|
|
|
|
|
|
|
| Capital and balance sheet |
|
|
|
|
|
|
|
|
|
| Loans and advances to customers (gross) |
|
|
|
|
|
|
|
|
|
| - mortgages | 5.6 | 6.1 | 6.5 |
| 6.8 | 6.9 |
| 23% | 1% |
| - personal | 4.7 | 4.8 | 4.9 |
| 6.2 | 6.4 |
| 36% | 3% |
| - other | 2.1 | 2.5 | 2.3 |
| 1.5 | 1.6 |
| (24%) | 7% |
| Customer deposits | 35.3 | 36.3 | 35.7 |
| 36.4 | 36.2 |
| 3% | (1%) |
| Assets under management (excluding deposits) | 29.8 | 31.7 | 30.7 |
| 31.7 | 30.2 |
| 1% | (5%) |
| Risk elements in lending | 0.2 | 0.2 | 0.2 |
| 0.2 | 0.2 |
| - | - |
| Loan:deposit ratio (excluding repos) | 35% | 37% | 38% |
| 40% | 41% |
| 600bp | 100bp |
| Risk-weighted assets | 10.3 | 10.7 | 11.2 |
| 11.7 | 12.0 |
| 17% | 3% |
Appendix 2 Analysis by quarter
Global Banking & Markets
|
| 2009 |
|
2010 |
| Q2 2010 vs. | ||||
|
| Q2 | Q3 | Q4 |
|
Q1 |
Q2 |
| Q2 2009 | Q1 2010 |
|
| £m | £m | £m |
| £m | £m |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income statement |
|
|
|
|
|
|
|
|
|
| Net interest income from banking activities | 660 | 447 | 324 |
| 379 | 335 |
| (49%) | (12%) |
|
|
|
|
|
|
|
|
|
|
|
| Net fees and commissions receivable | 412 | 340 | 286 |
| 345 | 314 |
| (24%) | (9%) |
| Income from trading activities | 1,132 | 1,028 | 1,522 |
| 1,995 | 1,563 |
| 38% | (22%) |
| Other operating income (net of related funding costs) | (101) | (70) | (63) |
| 73 | 66 |
| (165%) | (10%) |
|
|
|
|
|
|
|
|
|
|
|
| Non-interest income | 1,443 | 1,298 | 1,745 |
| 2,413 | 1,943 |
| 35% | (19%) |
|
|
|
|
|
|
|
|
|
|
|
| Total income | 2,103 | 1,745 | 2,069 |
| 2,792 | 2,278 |
| 8% | (18%) |
|
|
|
|
|
|
|
|
|
|
|
| Direct expenses |
|
|
|
|
|
|
|
|
|
| - staff | (680) | (721) | (641) |
| (891) | (634) |
| (7%) | (29%) |
| - other | (204) | (240) | (247) |
| (229) | (237) |
| 16% | 3% |
| Indirect expenses | (201) | (191) | (180) |
| (174) | (162) |
| (19%) | (7%) |
|
|
|
|
|
|
|
|
|
|
|
|
| (1,085) | (1,152) | (1,068) |
| (1,294) | (1,033) |
| (5%) | (20%) |
|
|
|
|
|
|
|
|
|
|
|
| Operating profit before impairment losses | 1,018 | 593 | 1,001 |
| 1,498 | 1,245 |
| 22% | (17%) |
| Impairment losses | 31 | (272) | (130) |
| (32) | (164) |
| - | - |
|
|
|
|
|
|
|
|
|
|
|
| Operating profit | 1,049 | 321 | 871 |
| 1,466 | 1,081 |
| 3% | (26%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Analysis of income by product |
|
|
|
|
|
|
|
|
|
| Rates - money markets | 466 | 287 | 108 |
| 88 | 4 |
| (99%) | (95%) |
| Rates - flow | 536 | 694 | 615 |
| 699 | 471 |
| (12%) | (33%) |
| Currencies & Commodities | 416 | 147 | 175 |
| 295 | 179 |
| (57%) | (39%) |
| Equities | 364 | 282 | 457 |
| 314 | 238 |
| (35%) | (24%) |
| Credit markets | 690 | 475 | 232 |
| 959 | 474 |
| (31%) | (51%) |
| Portfolio management and origination | 113 | 180 | 376 |
| 469 | 581 |
| - | 24% |
| Fair value of own debt | (482) | (320) | 106 |
| (32) | 331 |
| (169%) | - |
|
|
|
|
|
|
|
|
|
|
|
| Total income | 2,103 | 1,745 | 2,069 |
| 2,792 | 2,278 |
| 8% | (18%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Analysis of impairment by sector |
|
|
|
|
|
|
|
|
|
| Manufacturing and infrastructure | 23 | 33 | 19 |
| (7) | (12) |
| (152%) | 71% |
| Property and construction | 4 | - | (1) |
| 8 | 56 |
| - | - |
| Banks and financial institutions | 39 | 237 | 68 |
| 16 | 110 |
| 182% | - |
| Others | (97) | 2 | 44 |
| 15 | 10 |
| (110%) | (33%) |
|
|
|
|
|
|
|
|
|
|
|
| Total impairment | (31) | 272 | 130 |
| 32 | 164 |
| - | - |
|
|
|
|
|
|
|
|
|
|
|
| Loan impairment charge as % of gross customer loans and advances (excluding reverse repurchase agreements) | (0.1%) | 0.6% | 0.6% |
| 0.1% | 0.7% |
| 80bp | 60bp |
Appendix 2 Analysis by quarter
Global Banking & Markets (continued)
|
| 2009 |
|
2010 |
| Q2 2010 vs. | ||||
| Key metrics | Q2 | Q3 | Q4 |
|
Q1 |
Q2 |
| Q2 2009 | Q1 2010 |
|
|
|
|
|
|
|
|
|
|
|
| Performance ratios |
|
|
|
|
|
|
|
|
|
| Return on equity (1) | 24.8% | 7.2% | 18.7% |
| 28.4% |
20.1% |
| (470bp) | (830bp) |
| Net interest margin | 1.48% | 1.08% | 0.89% |
| 1.11% |
1.01% |
| (47bp) | (10bp) |
| Cost:income ratio | 52% | 66% | 52% |
| 46% |
45% |
| 700bp | 100bp |
|
| 2009 |
|
2010 |
| Q2 2010 vs. | ||||
|
| 30 June | 30 Sept | 31 Dec |
| 31 Mar | 30 June |
| 30 June | 31 Mar |
|
| £bn | £bn | £bn |
| £bn | £bn |
| 2009 | 2010 |
|
|
|
|
|
|
|
|
|
|
|
| Capital and balance sheet |
|
|
|
|
|
|
|
|
|
| Loans and advances (including banks) | 155.2 | 156.3 | 127.8 |
| 133.5 | 128.9 |
| (17%) | (3%) |
| Reverse repos | 75.2 | 75.4 | 73.3 |
| 93.1 | 85.6 |
| 14% | (8%) |
| Securities | 115.5 | 117.6 | 106.0 |
| 116.6 | 109.8 |
| (5%) | (6%) |
| Cash and eligible bills | 51.5 | 63.8 | 74.0 |
| 61.9 | 41.2 |
| (20%) | (33%) |
| Other assets | 40.5 | 46.0 | 31.1 |
| 38.6 | 34.5 |
| (15%) | (11%) |
|
|
|
|
|
|
|
|
|
|
|
| Total third party assets (excluding derivatives mark to market) | 437.9 | 459.1 | 412.2 |
| 443.7 | 400.0 |
| (9%) | (10%) |
| Net derivative assets (after netting) | 80.7 | 84.3 | 68.0 |
| 66.9 | 52.1 |
| (35%) | (22%) |
| Customer deposits (excluding repos) | 63.4 | 56.8 | 46.9 |
| 47.0 | 45.6 |
| (28%) | (3%) |
| Risk elements in lending | 1.1 | 1.6 | 1.8 |
| 1.2 | 1.8 |
| 64% | 50% |
| Loan:deposit ratio (excluding repos) | 186% | 194% | 194% |
| 195% | 195% |
| 900bp | - |
| Risk-weighted assets | 112.5 | 121.5 | 123.7 |
| 141.8 | 141.3 |
| 26% | - |
Note:
| (1) | Return on equity is based on divisional operating profit after tax, divided by divisional notional equity (based on 10% of divisional risk-weighted assets, adjusted for capital deductions). |
Appendix 2 Analysis by quarter
Global Transaction Services
|
| 2009 |
|
2010 |
| Q2 2010 vs. | ||||
|
| Q2 | Q3 | Q4 |
|
Q1 |
Q2 |
| Q2 2009 | Q1 2010 |
|
| £m | £m | £m |
| £m | £m |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income statement |
|
|
|
|
|
|
|
|
|
| Net interest income | 225 | 234 | 233 |
| 217 | 237 |
| 5% | 9% |
| Non-interest income | 398 | 388 | 404 |
| 390 | 411 |
| 3% | 5% |
|
|
|
|
|
|
|
|
|
|
|
| Total income | 623 | 622 | 637 |
| 607 | 648 |
| 4% | 7% |
|
|
|
|
|
|
|
|
|
|
|
| Direct expenses |
|
|
|
|
|
|
|
|
|
| - staff | (87) | (87) | (102) |
| (104) | (102) |
| 17% | (2%) |
| - other | (38) | (37) | (51) |
| (33) | (37) |
| (3%) | 12% |
| Indirect expenses | (229) | (223) | (256) |
| (237) | (227) |
| (1%) | (4%) |
|
|
|
|
|
|
|
|
|
|
|
|
| (354) | (347) | (409) |
| (374) | (366) |
| 3% | (2%) |
|
|
|
|
|
|
|
|
|
|
|
| Operating profit before impairment losses | 269 | 275 | 228 |
| 233 | 282 |
| 5% | 21% |
| Impairment losses | (4) | (22) | (4) |
| - | (3) |
| (25%) | - |
|
|
|
|
|
|
|
|
|
|
|
| Operating profit | 265 | 253 | 224 |
| 233 | 279 |
| 5% | 20% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Analysis of income by product |
|
|
|
|
|
|
|
|
|
| Domestic cash management | 204 | 202 | 197 |
| 194 | 201 |
| (1%) | 4% |
| International cash management | 179 | 183 | 203 |
| 185 | 193 |
| 8% | 4% |
| Trade finance | 77 | 71 | 67 |
| 71 | 76 |
| (1%) | 7% |
| Merchant acquiring | 126 | 127 | 128 |
| 115 | 133 |
| 6% | 16% |
| Commercial cards | 37 | 39 | 42 |
| 42 | 45 |
| 22% | 7% |
|
|
|
|
|
|
|
|
|
|
|
| Total income | 623 | 622 | 637 |
| 607 | 648 |
| 4% | 7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Key metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Performance ratios |
|
|
|
|
|
|
|
|
|
| Net interest margin | 9.23% | 9.63% | 9.81% |
| 7.97% | 6.47% |
| (276bp) | (150bp) |
| Cost:income ratio | 57% | 56% | 64% |
| 62% | 56% |
| 100bp | 600bp |
|
| 2009 |
|
2010 |
| 30 June 2010 vs. | ||||
|
| 30 June | 30 Sept | 31 Dec |
| 31 Mar | 30 June |
| 30 June | 31 Mar |
|
| £bn | £bn | £bn |
| £bn | £bn |
| 2009 | 2010 |
|
|
|
|
|
|
|
|
|
|
|
| Capital and balance sheet |
|
|
|
|
|
|
|
|
|
| Total third party assets | 19.4 | 21.4 | 18.4 |
| 25.6 | 25.7 |
| 32% | - - |
| Loans and advances | 13.5 | 14.5 | 12.7 |
| 14.3 | 15.6 |
| 16% | 9% |
| Customer deposits | 54.0 | 58.6 | 61.8 |
| 64.6 | 62.7 |
| 16% | (3%) |
| Risk elements in lending | 0.1 | 0.2 | 0.2 |
| 0.2 | 0.2 |
| 100% | - |
| Loan:deposit ratio (excluding repos) | 26% | 25% | 21% |
| 22% | 25% |
| (100bp) | 300bp |
| Risk-weighted assets | 16.7 | 18.9 | 19.1 |
| 20.4 | 19.4 |
| 16% | (5%) |
Appendix 2 Analysis by quarter
Ulster Bank
|
| 2009 |
|
2010 |
| Q2 2010 vs. | ||||
|
| Q2 | Q3 | Q4 |
|
Q1 |
Q2 |
| Q2 2009 | Q1 2010 |
|
| £m | £m | £m |
| £m | £m |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income statement |
|
|
|
|
|
|
|
|
|
| Net interest income | 208 | 176 | 194 |
| 188 | 194 |
| (7%) | 3% |
|
|
|
|
|
|
|
|
|
|
|
| Net fees and commissions | 39 | 45 | 98 |
| 35 | 43 |
| 10% | 23% |
| Other non-interest income | 12 | 10 | (7) |
| 18 | 10 |
| (17%) | (44%) |
|
|
|
|
|
|
|
|
|
|
|
| Non-interest income | 51 | 55 | 91 |
| 53 | 53 |
| 4% | - |
|
|
|
|
|
|
|
|
|
|
|
| Total income | 259 | 231 | 285 |
| 241 | 247 |
| (5%) | 2% |
|
|
|
|
|
|
|
|
|
|
|
| Direct expenses |
|
|
|
|
|
|
|
|
|
| - staff | (81) | (79) | (76) |
| (66) | (60) |
| (26%) | (9%) |
| - other | (25) | (20) | (18) |
| (18) | (17) |
| (32%) | (6%) |
| Indirect expenses | (75) | (73) | (118) |
| (76) | (66) |
| (12%) | (13%) |
|
|
|
|
|
|
|
|
|
|
|
|
| (181) | (172) | (212) |
| (160) | (143) |
| (21%) | (11%) |
|
|
|
|
|
|
|
|
|
|
|
| Operating profit before impairment losses | 78 | 59 | 73 |
| 81 | 104 |
| 33% | 28% |
| Impairment losses | (90) | (144) | (348) |
| (218) | (281) |
| - | 29% |
|
|
|
|
|
|
|
|
|
|
|
| Operating loss | (12) | (85) | (275) |
| (137) | (177) |
| - | 29% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Analysis of income by business |
|
|
|
|
|
|
|
|
|
| Corporate | 138 | 134 | 146 |
| 145 | 134 |
| (3%) | (8%) |
| Retail | 101 | 104 | 114 |
| 112 | 105 |
| 4% | (6%) |
| Other | 20 | (7) | 25 |
| (16) | 8 |
| (60%) | (150%) |
|
|
|
|
|
|
|
|
|
|
|
| Total income | 259 | 231 | 285 |
| 241 | 247 |
| (5%) | 2% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Analysis of impairment by sector |
|
|
|
|
|
|
|
|
|
| Mortgages | 10 | 30 | 20 |
| 33 | 33 |
| - | - |
| Corporate |
|
|
|
|
|
|
|
|
|
| - property | 63 | (2) | 233 |
| 82 | 117 |
| 86% | 43% |
| - other corporate | 3 | 89 | 83 |
| 91 | 118 |
| - | 30% |
| Other lending | 14 | 27 | 12 |
| 12 | 13 |
| (7%) | 8% |
|
|
|
|
|
|
|
|
|
|
|
| Total impairment | 90 | 144 | 348 |
| 218 | 281 |
| - | 29% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loan impairment charge as % of gross customer loans and advances (excluding reverse repurchase agreements) by sector |
|
|
|
|
|
|
|
|
|
| Mortgages | 0.2% | 0.7% | 0.5% |
| 0.8% | 0.9% |
| 70bp | 10bp |
| Corporate |
|
|
|
|
|
|
|
|
|
| - property | 2.7% | (0.1%) | 9.2% |
| 3.3% | 4.9% |
| 220bp | 160bp |
| - other corporate | 0.1% | 3.0% | 3.0% |
| 3.5% | 4.8% |
| 470bp | 130bp |
| Other lending | 3.5% | 5.4% | 2.0% |
| 2.0% | 2.7% |
| (80bp) | 70bp |
|
|
|
|
|
|
|
|
|
|
|
|
| 0.9% | 1.4% | 3.5% |
| 2.3% | 3.1% |
| 220bp | 80bp |
Appendix 2 Analysis by quarter
Ulster Bank (continued)
|
| 2009 |
|
2010 |
| Q2 2010 vs. | ||||
| Key metrics | Q2 | Q3 | Q4 |
| Q1 | Q2 |
| Q2 2009 | Q1 2010 |
|
|
|
|
|
|
|
|
|
|
|
| Performance ratios |
|
|
|
|
|
|
|
|
|
| Return on equity (1) | (1.8%) | (11.3%) | (35.3%) |
| (16.0%) | (21.7%) |
| (1,990bp) | (570bp) |
| Net interest margin | 2.03% | 1.74% | 1.83% |
| 1.77% | 1.92% |
| (11bp) | 15bp |
| Cost:income ratio | 70% | 74% | 74% |
| 66% | 58% |
| 1,200bp | 800bp |
|
| 2009 |
|
2010 |
| 30 June 2010 vs. | ||||
|
| 30 June | 30 Sept | 31 Dec |
| 31 Mar | 30 June |
| 30 June | 31 Mar |
|
| £bn | £bn | £bn |
|
£m |
£m |
| 2009 | 2010 |
|
|
|
|
|
|
|
|
|
|
|
| Capital and balance sheet |
|
|
|
|
|
|
|
|
|
| Loans and advances to customers (gross) |
|
|
|
|
|
|
|
|
|
| - mortgages | 16.0 | 16.7 | 16.2 |
| 16.1 | 14.9 |
| (7%) | (7%) |
| - corporate |
|
|
|
|
|
|
|
|
|
| - property | 9.5 | 10.2 | 10.1 |
| 9.9 | 9.5 |
| - | (4%) |
| - other corporate | 11.7 | 11.7 | 11.0 |
| 10.4 | 9.9 |
| (15%) | (5%) |
| - other lending | 1.8 | 2.0 | 2.4 |
| 2.4 | 1.9 |
| 6% | (21%) |
| Customer deposits | 18.9 | 20.9 | 21.9 |
| 23.7 | 22.7 |
| 20% | (4%) |
| Risk elements in lending |
|
|
|
|
|
|
|
|
|
| - mortgages | 0.4 | 0.5 | 0.6 |
| 0.7 | 0.7 |
| 75% | - |
| - corporate |
|
|
|
|
|
|
|
|
|
| - property | 0.6 | 0.6 | 0.7 |
| 1.0 | 1.3 |
| 117% | 30% |
| - other corporate | 0.5 | 0.7 | 0.8 |
| 1.1 | 1.3 |
| 160% | 18% |
| - other lending | 0.1 | 0.2 | 0.2 |
| 0.2 | 0.2 |
| 100% | - |
| Loan:deposit ratio (excluding repos) | 203% | 191% | 177% |
| 159% | 154% |
| (4,900bp) | (500bp) |
| Risk-weighted assets | 26.2 | 28.5 | 29.9 |
| 32.8 | 30.5 |
| 16% | (7%) |
Note:
| (1) | Return on equity is based on divisional operating profit/(loss) after tax, divided by divisional notional equity (based on 8% of divisional risk-weighted assets, adjusted for capital deductions). |
Appendix 2 Analysis by quarter
US Retail and Commercial (£ Sterling)
|
| 2009 |
|
2010 |
| Q2 2010 vs. | ||||
|
| Q2 | Q3 | Q4 |
|
Q1 |
Q2 |
| Q2 2009 | Q1 2010 |
|
| £m | £m | £m |
| £m | £m |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income statement |
|
|
|
|
|
|
|
|
|
| Net interest income | 448 | 410 | 423 |
| 468 | 502 |
| 12% | 7% |
|
|
|
|
|
|
|
|
|
|
|
| Net fees and commissions | 209 | 159 | 148 |
| 177 | 203 |
| (3%) | 15% |
| Other non-interest income | 45 | 65 | 73 |
| 75 | 72 |
| 60% | (4%) |
|
|
|
|
|
|
|
|
|
|
|
| Non-interest income | 254 | 224 | 221 |
| 252 | 275 |
| 8% | 9% |
|
|
|
|
|
|
|
|
|
|
|
| Total income | 702 | 634 | 644 |
| 720 | 777 |
| 11% | 8% |
|
|
|
|
|
|
|
|
|
|
|
| Direct expenses |
|
|
|
|
|
|
|
|
|
| - staff | (184) | (174) | (200) |
| (215) | (151) |
| (18%) | (30%) |
| - other | (188) | (132) | (130) |
| (134) | (163) |
| (13%) | 22% |
| Indirect expenses | (194) | (191) | (180) |
| (188) | (190) |
| (2%) | 1% |
|
|
|
|
|
|
|
|
|
|
|
|
| (566) | (497) | (510) |
| (537) | (504) |
| (11%) | (6%) |
|
|
|
|
|
|
|
|
|
|
|
| Operating profit before impairment losses | 136 | 137 | 134 |
| 183 | 273 |
| 101% | 49% |
| Impairment losses | (146) | (180) | (153) |
| (143) | (144) |
| (1%) | 1% |
|
|
|
|
|
|
|
|
|
|
|
| Operating (loss)/profit | (10) | (43) | (19) |
| 40 | 129 |
| - | - |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average exchange rate - US$/£ | 1.551 | 1.640 | 1.633 |
| 1.560 | 1.492 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Analysis of income by product |
|
|
|
|
|
|
|
|
|
| Mortgages and home equity | 130 | 112 | 115 |
| 115 | 124 |
| (5%) | 8% |
| Personal lending and cards | 113 | 116 | 115 |
| 114 | 122 |
| 8% | 7% |
| Retail deposits | 202 | 200 | 195 |
| 226 | 248 |
| 23% | 10% |
| Commercial lending | 140 | 127 | 134 |
| 142 | 152 |
| 9% | 7% |
| Commercial deposits | 89 | 97 | 108 |
| 81 | 86 |
| (3%) | 6% |
| Other | 28 | (18) | (23) |
| 42 | 45 |
| 61% | 7% |
|
|
|
|
|
|
|
|
|
|
|
| Total income | 702 | 634 | 644 |
| 720 | 777 |
| 11% | 8% |
|
|
|
|
|
|
|
|
|
|
|
| Analysis of impairment by sector |
|
|
|
|
|
|
|
|
|
| Residential mortgages | 12 | 29 | 8 |
| 19 | 22 |
| 83% | 16% |
| Home equity | 43 | 82 | 13 |
| 6 | 38 |
| (12%) | - |
| Corporate and commercial | 61 | 65 | 92 |
| 49 | 76 |
| 25% | 55% |
| Other consumer | 30 | 4 | 40 |
| 56 | 7 |
| (77%) | (88%) |
| Securities impairment losses | - | - | - |
| 13 | 1 |
| - | (92%) |
|
|
|
|
|
|
|
|
|
|
|
| Total impairment | 146 | 180 | 153 |
| 143 | 144 |
| (1%) | 1% |
|
|
|
|
|
|
|
|
|
|
|
| Loan impairment charge as % of gross customer loans and advances (excluding reverse repurchase agreements) by sector |
|
|
|
|
|
|
|
|
|
| Residential mortgages | 0.7% | 1.7% | 0.5% |
| 1.1% | 1.3% |
| 60bp | 20bp |
| Home equity | 1.1% | 2.1% | 0.3% |
| 0.1% | 0.9% |
| (20bp) | 80bp |
| Corporate and commercial | 1.2% | 1.3% | 1.9% |
| 1.0% | 1.5% |
| 30bp | 50bp |
| Other consumer | 1.4% | 0.2% | 2.1% |
| 2.8% | 0.3% |
| (110bp) | (250bp) |
|
|
|
|
|
|
|
|
|
|
|
|
| 1.1% | 1.4% | 1.3% |
| 1.0% | 1.1% |
| - | 10bp |
Appendix 2 Analysis by quarter
US Retail and Commercial (£ Sterling) (continued)
|
| 2009 |
|
2010 |
| Q2 2010 vs. | ||||
| Key metrics | Q2 | Q3 | Q4 |
|
Q1 |
Q2 |
| Q2 2009 | Q1 2010 |
|
|
|
|
|
|
|
|
|
|
|
| Performance ratios |
|
|
|
|
|
|
|
|
|
| Return on equity (1) | (0.6%) | (2.2%) | (1.0%) |
| 2.0% |
6.4% |
| 700bp | 440bp |
| Net interest margin | 2.32% | 2.37% | 2.45% |
| 2.69% |
2.78% |
| 46bp | 9bp |
| Cost:income ratio | 81% | 78% | 79% |
| 74% |
65% |
| 1,600bp | 900bp |
|
| 2009 |
|
2010 |
| 30 June 2010 vs. | ||||
|
| 30 June | 30 Sept | 31 Dec |
| 31 Mar | 30 June |
| 30 June | 31 Mar |
|
| £bn | £bn | £bn |
| £bn | £bn |
| 2009 | 2010 |
|
|
|
|
|
|
|
|
|
|
|
| Capital and balance sheet |
|
|
|
|
|
|
|
|
|
| Total third party assets (excluding derivatives) | 75.6 | 76.9 | 74.8 |
| 78.2 | 77.4 |
| 2% | (1%) |
| Loans and advances to customers (gross) |
|
|
|
|
|
|
|
|
|
| - residential mortgages | 7.3 | 6.9 | 6.5 |
| 6.7 | 6.6 |
| (10%) | (1%) |
| - home equity | 15.9 | 16.0 | 15.4 |
| 16.2 | 16.3 |
| 3% | 1% |
| - corporate and commercial | 20.5 | 20.5 | 19.5 |
| 20.5 | 20.7 |
| 1% | 1% |
| - other consumer | 8.3 | 7.8 | 7.5 |
| 8.0 | 8.0 |
| (4%) | - |
| Customer deposits (excluding repos) | 59.9 | 62.0 | 60.1 |
| 62.5 | 62.3 |
| 4% | - |
| Risk elements in lending |
|
|
|
|
|
|
|
|
|
| - retail | 0.3 | 0.3 | 0.4 |
| 0.4 | 0.4 |
| 33% | - |
| - commercial | 0.1 | 0.2 | 0.2 |
| 0.3 | 0.5 |
| - | 67% |
| Loan:deposit ratio (excluding repos) | 86% | 81% | 80% |
| 81% | 81% |
| (500bp) | - |
| Risk-weighted assets | 55.6 | 62.8 | 59.7 |
| 63.8 | 65.5 |
| 18% | 3% |
|
|
|
|
|
|
|
|
|
|
|
| Spot exchange rate - US$/£ | 1.644 | 1.599 | 1.622 |
| 1.517 | 1.498 |
|
|
|
Note:
| (1) | Return on equity is based on divisional operating profit/(loss) after tax, divided by divisional notional equity (based on 8% of divisional risk-weighted assets, adjusted for capital deductions). |
Appendix 2 Analysis by quarter
US Retail and Commercial (US Dollar)
|
| 2009 |
|
2010 |
| Q2 2010 vs. | ||||
|
| Q2 | Q3 | Q4 |
|
Q1 |
Q2 |
| Q2 2009 | Q1 2010 |
|
| $m | $m | $m |
| $m | $m |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income statement |
|
|
|
|
|
|
|
|
|
| Net interest income | 696 | 680 | 690 |
| 730 | 748 |
| 7% | 2% |
|
|
|
|
|
|
|
|
|
|
|
| Net fees and commissions | 324 | 266 | 245 |
| 276 | 303 |
| (6%) | 10% |
| Other non-interest income | 69 | 104 | 120 |
| 116 | 110 |
| 59% | (5%) |
|
|
|
|
|
|
|
|
|
|
|
| Non-interest income | 393 | 370 | 365 |
| 392 | 413 |
| 5% | 5% |
|
|
|
|
|
|
|
|
|
|
|
| Total income | 1,089 | 1,050 | 1,055 |
| 1,122 | 1,161 |
| 7% | 3% |
|
|
|
|
|
|
|
|
|
|
|
| Direct expenses |
|
|
|
|
|
|
|
|
|
| - staff | (287) | (289) | (325) |
| (335) | (223) |
| (22%) | (33%) |
| - other | (289) | (219) | (215) |
| (207) | (246) |
| (15%) | 19% |
| Indirect expenses | (301) | (313) | (294) |
| (293) | (283) |
| (6%) | (3%) |
|
|
|
|
|
|
|
|
|
|
|
|
| (877) | (821) | (834) |
| (835) | (752) |
| (14%) | (10%) |
|
|
|
|
|
|
|
|
|
|
|
| Operating profit before impairment losses | 212 | 229 | 221 |
| 287 | 409 |
| 93% | 43% |
| Impairment losses | (231) | (296) | (252) |
| (224) | (214) |
| (7%) | (4%) |
|
|
|
|
|
|
|
|
|
|
|
| Operating (loss)/profit | (19) | (67) | (31) |
| 63 | 195 |
| - | - |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Analysis of income by product |
|
|
|
|
|
|
|
|
|
| Mortgages and home equity | 203 | 186 | 188 |
| 180 | 185 |
| (9%) | 3% |
| Personal lending and cards | 174 | 190 | 188 |
| 178 | 182 |
| 5% | 2% |
| Retail deposits | 315 | 329 | 320 |
| 351 | 372 |
| 18% | 6% |
| Commercial lending | 217 | 210 | 219 |
| 222 | 226 |
| 4% | 2% |
| Commercial deposits | 138 | 160 | 176 |
| 126 | 128 |
| (7%) | 2% |
| Other | 42 | (25) | (36) |
| 65 | 68 |
| 62% | 5% |
|
|
|
|
|
|
|
|
|
|
|
| Total income | 1,089 | 1,050 | 1,055 |
| 1,122 | 1,161 |
| 7% | 3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Analysis of impairment by sector |
|
|
|
|
|
|
|
|
|
| Residential mortgages | 19 | 47 | 14 |
| 30 | 33 |
| 74% | 10% |
| Home equity | 65 | 131 | 23 |
| 10 | 56 |
| (14%) | - |
| Corporate and commercial | 99 | 107 | 150 |
| 77 | 113 |
| 14% | 47% |
| Other consumer | 48 | 11 | 65 |
| 87 | 10 |
| (79%) | (89%) |
| Securities impairment losses | - | - | - |
| 20 | 2 |
| - | (90%) |
|
|
|
|
|
|
|
|
|
|
|
| Total impairment | 231 | 296 | 252 |
| 224 | 214 |
| (7%) | (4%) |
|
|
|
|
|
|
|
|
|
|
|
| Loan impairment charge as % of gross customer loans and advances (excluding reverse repurchase agreements) by sector |
|
|
|
|
|
|
|
|
|
| Residential mortgages | 0.6% | 1.7% | 0.5% |
| 1.2% | 1.3% |
| 70bp | 10bp |
| Home equity | 1.0% | 2.0% | 0.4% |
| 0.2% | 0.9% |
| (10p) | 70bp |
| Corporate and commercial | 1.2% | 1.3% | 1.9% |
| 1.0% | 1.5% |
| 30bp | 50bp |
| Other consumer | 1.4% | 0.3% | 2.1% |
| 2.9% | 0.3% |
| (110bp) | (260bp) |
|
|
|
|
|
|
|
|
|
|
|
|
| 1.1% | 1.5% | 1.3% |
| 1.1% | 1.1% |
| - | - |
Appendix 2 Analysis by quarter
US Retail and Commercial (US Dollar) (continued)
|
| 2009 |
|
2010 |
| Q2 2010 vs. | ||||
| Key metrics | Q2 | Q3 | Q4 |
|
Q1 |
Q2 |
| Q2 2009 | Q1 2010 |
|
|
|
|
|
|
|
|
|
|
|
| Performance ratios |
|
|
|
|
|
|
|
|
|
| Return on equity (1) | (0.7%) | (2.2%) | (1.0%) |
| 2.1% |
6.5% |
| 720bp | 440bp |
| Net interest margin | 2.32% | 2.37% | 2.45% |
| 2.69% |
2.78% |
| 46bp | 9bp |
| Cost:income ratio | 81% | 78% | 79% |
| 74% |
65% |
| 1,600bp | 900bp |
|
| 2009 |
|
2010 |
| 30 June 2010 vs. | ||||
|
| 30 June | 30 Sept | 31 Dec |
| 31 Mar | 30 June |
| 30 June | 31 Mar |
|
| $bn | $bn | $bn |
| $bn | $bn |
| 2009 | 2010 |
|
|
|
|
|
|
|
|
|
|
|
| Capital and balance sheet |
|
|
|
|
|
|
|
|
|
| Total third party assets (excluding derivatives) | 124.4 | 122.9 | 121.3 |
| 118.6 | 115.9 |
| (7%) | (2%) |
| Loans and advances to customers (gross) |
|
|
|
|
|
|
|
|
|
| - residential mortgages | 12.0 | 11.0 | 10.6 |
| 10.1 | 9.9 |
| (18%) | (2%) |
| - home equity | 26.1 | 25.6 | 25.0 |
| 24.6 | 24.4 |
| (7%) | (1%) |
| - corporate and commercial | 33.6 | 32.7 | 31.6 |
| 31.1 | 30.9 |
| (8%) | (1%) |
| - other consumer | 13.7 | 12.5 | 12.1 |
| 12.1 | 12.0 |
| (12%) | (1%) |
| Customer deposits (excluding repos) | 98.5 | 99.1 | 97.4 |
| 94.8 | 93.3 |
| (5%) | (2%) |
| Risk elements in lending |
|
|
|
|
|
|
|
|
|
| - retail | 0.4 | 0.5 | 0.6 |
| 0.6 | 0.6 |
| 50% | - |
| - commercial | 0.3 | 0.3 | 0.4 |
| 0.5 | 0.7 |
| 133% | 40% |
| Loan:deposit ratio (excluding repos) | 86% | 81% | 80% |
| 81% | 81% |
| (500bp) | - |
| Risk-weighted assets | 91.3 | 100.4 | 96.9 |
| 96.8 | 98.1 |
| 7% | 1% |
Note:
| (1) | Return on equity is based on divisional operating profit/(loss) after tax, divided by divisional notional equity (based on 8% of divisional risk-weighted assets, adjusted for capital deductions). |
Appendix 2 Analysis by quarter
RBS Insurance
|
| 2009 |
|
2010 |
| Q2 2010 vs. | ||||
|
| Q2 | Q3 | Q4 |
|
Q1 |
Q2 |
| Q2 2009 | Q1 2010 |
|
| £m | £m | £m |
| £m | £m |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income statement |
|
|
|
|
|
|
|
|
|
| Earned premiums | 1,119 | 1,145 | 1,149 |
| 1,130 |
1,118 |
| - | (1%) |
| Reinsurers' share | (40) | (43) | (37) |
| (34) |
(38) |
| (5%) | 12% |
|
|
|
|
|
|
|
|
|
|
|
| Net premium income | 1,079 | 1,102 | 1,112 |
| 1,096 |
1,080 |
| - | (1%) |
| Fees and commissions | (95) | (95) | (84) |
| (89) |
(91) |
| (4%) | 2% |
| Instalment income | 35 | 37 | 38 |
| 35 |
35 |
| - | - |
| Other income | 6 | 7 | 5 |
| 6 |
7 |
| 17% | 17% |
|
|
|
|
|
|
|
|
|
|
|
| Total income | 1,025 | 1,051 | 1,071 |
| 1,048 |
1,031 |
| 1% | (2%) |
|
|
|
|
|
|
|
|
|
|
|
| Net claims | (758) | (928) | (1,156) |
| (974) |
(1,132) |
| 49% | 16% |
|
|
|
|
|
|
|
|
|
|
|
| Underwriting profit/(loss) | 267 | 123 | (85) |
| 74 | (101) |
| (138%) | - |
|
|
|
|
|
|
|
|
|
|
|
| Staff expenses | (69) | (67) | (61) |
| (63) | (66) |
| (4%) | 5% |
| Other expenses | (54) | (47) | (54) |
| (47) | (48) |
| (11%) | 2% |
|
|
|
|
|
|
|
|
|
|
|
| Total direct expenses | (123) | (114) | (115) |
| (110) | (114) |
| (7%) | 4% |
| Indirect expenses | (65) | (64) | (75) |
| (65) | (62) |
| (5%) | (5%) |
|
|
|
|
|
|
|
|
|
|
|
|
| (188) | (178) | (190) |
| (175) |
(176) |
| (6%) | 1% |
|
|
|
|
|
|
|
|
|
|
|
| Technical result | 79 | (55) | (275) |
| (101) |
(277) |
| - | 174% |
|
|
|
|
|
|
|
|
|
|
|
| Impairment losses | (1) | (2) | - |
| - |
- |
| - | - |
| Investment income | 63 | 68 | 105 |
| 51 | 74 |
| 17% | 45% |
|
|
|
|
|
|
|
|
|
|
|
| Operating profit/(loss) | 141 | 11 | (170) |
| (50) |
(203) |
| - | - |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Analysis of income by product |
|
|
|
|
|
|
|
|
|
| Own-brand |
|
|
|
|
|
|
|
|
|
| - motor | 473 | 497 | 495 |
| 486 | 476 |
| 1% | (2%) |
| - household and life | 199 | 207 | 214 |
| 212 | 212 |
| 7% | - |
| Partnerships and broker |
|
|
|
|
|
|
|
|
|
| - motor | 133 | 131 | 137 |
| 126 | 120 |
| (10%) | (5%) |
| - household and life | 75 | 75 | 85 |
| 77 | 77 |
| 3% | - |
| Other (international, commercial and central) | 145 | 141 | 140 |
| 147 | 146 |
| 1% | (1%) |
|
|
|
|
|
|
|
|
|
|
|
| Total income | 1,025 | 1,051 | 1,071 |
| 1,048 | 1,031 |
| 1% | (2%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| In-force policies (thousands) |
|
|
|
|
|
|
|
|
|
| - Motor own-brand | 4,789 | 4,894 | 4,858 |
| 4,715 | 4,513 |
| (6%) | (4%) |
| - Own-brand non-motor (home, pet, rescue, HR24) | 5,890 | 6,150 | 6,307 |
| 6,367 | 6,309 |
| 7% | (1%) |
| - Partnerships & broker (motor, home, pet, rescue, HR24) | 5,609 | 5,371 | 5,328 |
| 5,185 | 4,945 |
| (12%) | (5%) |
| - Other (international, commercial and central) | 1,210 | 1,212 | 1,217 |
| 1,411 | 1,322 |
| 9% | (6%) |
|
|
|
|
|
|
|
|
|
|
|
| Total in-force policies | 17,498 | 17,627 | 17,710 |
| 17,678 | 17,089 |
| (2%) | (3%) |
| Gross written premium (£m) | 1,147 | 1,186 | 1,024 |
| 1,090 | 1,092 |
| (5%) | - |
Appendix 2 Analysis by quarter
RBS Insurance (continued)
|
| 2009 |
|
2010 |
| Q2 2010 vs. | ||||
|
| Q2 | Q3 | Q4 |
|
Q1 |
Q2 |
| Q2 2009 | Q1 2010 |
|
|
|
|
|
|
|
|
|
|
|
| Performance ratios |
|
|
|
|
|
|
|
|
|
| Return on equity (1) | 17.7% | 1.2% | (19.1%) |
| (5.4%) | (21.8%) |
| (3,950bp) | (1,640bp) |
| Cost:income ratio (2) | 17% | 16% | 16% |
| 16% | 16% |
| 100bp | - |
| Loss ratio (3) | 69.1% | 84.0% | 105.8% |
| 89.1% | 106.3% |
| 3,720 bp | 1720bp |
| Combined operating ratio (4) | 91.3% | 104.7% | 127.9% |
| 111.9% | 128.7% |
| 3,740 bp | 1,680bp |
|
|
|
|
|
|
|
|
|
|
|
| Balance sheet |
|
|
|
|
|
|
|
|
|
| General insurance reserves - total (£m) | 6,601 | 6,839 | 7,030 |
| 7,101 | 7,326 |
| 11% | 3% |
Notes:
| (1) | Based on divisional operating profit/(loss) after tax, divided by divisional notional equity (based on regulatory capital). |
| (2) | Cost:income ratio is based on total income, including investment income and total expenses. |
| (3) | Loss ratio is based on net claims divided by net premium income for the UK businesses. |
| (4) | Combined operating ratio is the expenses (including fees & commissions) divided by gross written premium income, added to the loss ratio, for the UK businesses. |
Appendix 2 Analysis by quarter
Central items
|
| 2009 |
|
2010 |
| Q2 2010 vs. | ||||
|
| Q2 | Q3 | Q4 |
|
Q1 |
Q2 |
| Q2 2009 | Q1 2010 |
|
| £m | £m | £m |
| £m | £m |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Fair value of own debt | (478) | (163) | 164 |
| (137) |
288 |
| - | - |
| Other | 166 | 283 | (169) |
| 337 |
49 |
| (70%) | (85%) |
|
|
|
|
|
|
|
|
|
|
|
| Central items not allocated | (312) | 120 | (5) |
| 200 |
337 |
| - | 69% |
Appendix 2 Analysis by quarter
Non-Core
|
| 2009 |
|
2010 |
| Q2 2010 vs. | ||||
|
| Q2 | Q3 | Q4 |
|
Q1 |
Q2 |
| Q2 2009 | Q1 2010 |
|
| £m | £m | £m |
| £m | £m |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income statement |
|
|
|
|
|
|
|
|
|
| Net interest income from banking activities | 274 | 287 | 578 |
| 568 | 534 |
| 95% | (6%) |
|
|
|
|
|
|
|
|
|
|
|
| Net fees and commissions receivable | 79 | 130 | 129 |
| 104 | 158 |
| 100% | 52% |
| Income from trading activities | (1,184) | (579) | (781) |
| (131) | 33 |
| (103%) | (125%) |
| Insurance net premium income | 196 | 173 | 171 |
| 168 | 173 |
| (12%) | 3% |
| Other operating income |
|
|
|
|
|
|
|
|
|
| - rental income | 160 | 179 | 178 |
| 187 | 181 |
| 13% | (3%) |
| - other | (212) | (136) | (167) |
| 38 | (206) |
| (3%) | - |
|
|
|
|
|
|
|
|
|
|
|
| Non-interest income | (961) | (233) | (470) |
| 366 | 339 |
| (135%) | (7%) |
|
|
|
|
|
|
|
|
|
|
|
| Total income | (687) | 54 | 108 |
| 934 | 873 |
| - | (7%) |
|
|
|
|
|
|
|
|
|
|
|
| Direct expenses |
|
|
|
|
|
|
|
|
|
| - staff | (153) | (150) | (247) |
| (252) | (202) |
| 32% | (20%) |
| - other | (247) | (244) | (297) |
| (282) | (269) |
| 9% | (5%) |
| Indirect expenses | (137) | (132) | (141) |
| (122) | (121) |
| (12%) | (1%) |
|
|
|
|
|
|
|
|
|
|
|
|
| (537) | (526) | (685) |
| (656) | (592) |
| 10% | (10%) |
|
|
|
|
|
|
|
|
|
|
|
| Operating (loss)/profit before other operating charges and impairment losses | (1,224) | (472) | (577) |
| 278 | 281 |
| (123%) | 1% |
| Insurance net claims | (137) | (126) | (148) |
| (133) | (215) |
| 57% | 62% |
| Impairment losses | (3,516) | (2,066) | (1,811) |
| (1,704) | (1,390) |
| (60%) | (18%) |
|
|
|
|
|
|
|
|
|
|
|
| Operating loss | (4,877) | (2,664) | (2,536) |
| (1,559) | (1,324) |
| (73%) | (15%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Key metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Performance ratios |
|
|
|
|
|
|
|
|
|
| Net interest margin | 0.45% | 0.55% | 1.17% |
| 1.25% | 1.22% |
| 77bp | (3bp) |
| Cost:income ratio | (78%) | 974% | 634% |
| 70% | 68% |
| (14,600bp) | 200bp |
|
| 2009 |
|
2010 |
| 30 June 2010 vs. | ||||
|
| 30 June | 30 Sept | 31 Dec |
| 31 Mar | 30 June |
| 30 June | 31 Mar |
|
| £bn | £bn | £bn |
| £bn | £bn |
| 2009 | 2010 |
|
|
|
|
|
|
|
|
|
|
|
| Capital and balance sheet |
|
|
|
|
|
|
|
|
|
| Total third party assets (including derivatives) | 246.5 | 233.0 | 220.9 |
| 212.6 | 193.3 |
| (22%) | (9%) |
| Loans and advances to customers (gross) | 164.1 | 159.1 | 149.5 |
| 141.2 | 126.4 |
| (23%) | (10%) |
| Customer deposits | 15.0 | 16.0 | 12.6 |
| 10.2 | 7.4 |
| (51%) | (27%) |
| Risk elements in lending | 20.5 | 23.3 | 22.9 |
| 24.0 | 22.0 |
| 7% | (8%) |
| Risk-weighted assets | 174.0 | 200.7 | 171.3 |
| 164.3 | 175.0 |
| 1% | 7% |
Appendix 2 Analysis by quarter
Non-Core (continued)
|
| 2009 |
|
2010 |
| Q2 2010 vs. | ||||
|
| Q2 | Q3 | Q4 |
|
Q1 |
Q2 |
| Q2 2009 | Q1 2010 |
|
| £m | £m | £m |
| £m | £m |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Analysis of income |
|
|
|
|
|
|
|
|
|
| Banking & Portfolio | (973) | (271) | 37 |
| 271 |
239 |
| (125%) | (12%) |
| International Businesses & Portfolios | 570 | 537 | 493 |
| 632 | 606 |
| 6% | (4%) |
| Markets | (284) | (212) | (422) |
| 31 | 28 |
| (110%) | (10%) |
|
|
|
|
|
|
|
|
|
|
|
|
| (687) | 54 | 108 |
| 934 | 873 |
| - | (7%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Impairment losses |
|
|
|
|
|
|
|
|
|
| Banking & Portfolio | 1,155 | 1,347 | 895 |
| 697 | 256 |
| (78%) | (63%) |
| International Businesses & Portfolios | 1,638 | 1,234 | 902 |
| 951 | 1,124 |
| (31%) | 18% |
| Markets | 723 | (515) | 14 |
| 56 | 10 |
| (99%) | (82%) |
|
|
|
|
|
|
|
|
|
|
|
| Total impairment | 3,516 | 2,066 | 1,811 |
| 1,704 | 1,390 |
| (60%) | (18%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loan impairment charge as % of gross customer loans and advances (1) |
|
|
|
|
|
|
|
|
|
| Banking & Portfolio | 4.7% | 6.0% | 4.1% |
| 3.3% | 1.8% |
| (290bp) | (150bp) |
| International Businesses & Portfolios | 8.9% | 6.9% | 5.3% |
| 5.7% | 7.4% |
| (150bp) | 170bp |
| Markets | 301.2% | (126.8%) | 0.4% |
| 33.6% | 3.6% |
| (29,760bp) | (3,000bp) |
|
|
|
|
|
|
|
|
|
|
|
|
| 8.2% | 5.4% | 4.6% |
| 4.6% | 4.4% |
| (380bp) | (20bp) |
|
|
|
|
|
|
|
|
|
|
|
| Note: |
|
|
|
|
|
|
|
|
|
| (1) Includes disposal groups. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| £bn | £bn | £bn |
| £bn | £bn |
|
|
|
| Gross customer loans and advances |
|
|
|
|
|
|
|
|
|
| Banking & Portfolio | 92.1 | 88.2 | 82.0 |
| 78.6 | 67.8 |
| (26%) | (14%) |
| International Businesses & Portfolios | 69.4 | 68.3 | 65.6 |
| 62.3 | 58.2 |
| (16%) | (7%) |
| Markets | 2.6 | 2.6 | 1.9 |
| 0.3 | 0.4 |
| (85%) | 33% |
|
|
|
|
|
|
|
|
|
|
|
|
| 164.1 | 159.1 | 149.5 |
| 141.2 | 126.4 |
| (23%) | (10%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Risk-weighted assets |
|
|
|
|
|
|
|
|
|
| Banking & Portfolio | 57.5 | 61.1 | 58.2 |
| 57.2 | 55.1 |
| (4%) | (4%) |
| International Businesses & Portfolios | 48.5 | 46.1 | 43.8 |
| 45.4 | 40.4 |
| (17%) | (11%) |
| Markets | 68.0 | 93.5 | 69.3 |
| 61.7 | 79.5 |
| 17% | 29% |
|
|
|
|
|
|
|
|
|
|
|
|
| 174.0 | 200.7 | 171.3 |
| 164.3 | 175.0 |
| 1% | 7% |