6th Nov 2009 07:00
Appendix 2
Third quarter 2009 results
Analysis by quarter
Appendix 2 Analysis by quarter
Summary consolidated income statement - pro forma
|
2008 |
2009 |
Q3 2009 vs. |
|||||||
|
Q3 |
Q4 |
Q1 |
Q2 |
Q3 |
Q3 2008 |
Q2 2009 |
|||
|
£m |
£m |
£m |
£m |
£m |
|||||
|
Net interest income |
3,836 |
4,427 |
3,538 |
3,322 |
3,261 |
(15%) |
(2%) |
||
|
Non-interest income (excluding insurance net premium income) |
3,340 |
(5,503) |
3,776 |
1,498 |
2,532 |
(24%) |
69% |
||
|
Insurance net premium income |
1,409 |
1,439 |
1,356 |
1,301 |
1,301 |
(8%) |
- |
||
|
Total income |
8,585 |
363 |
8,670 |
6,121 |
7,094 |
(17%) |
16% |
||
|
Operating expenses |
(4,060) |
(3,735) |
(4,667) |
(4,066) |
(4,195) |
3% |
3% |
||
|
Profit/(loss) before other operating charges |
4,525 |
(3,372) |
4,003 |
2,055 |
2,899 |
(36%) |
41% |
||
|
Insurance net claims |
(934) |
(1,056) |
(966) |
(925) |
(1,145) |
23% |
24% |
||
|
Operating profit before impairment losses |
3,591 |
(4,428) |
3,037 |
1,130 |
1,754 |
(51%) |
55% |
||
|
Impairment losses |
(1,280) |
(4,673) |
(2,858) |
(4,663) |
(3,279) |
156% |
(30%) |
||
|
Group operating profit/(loss)* |
2,311 |
(9,101) |
179 |
(3,533) |
(1,525) |
(166%) |
(57%) |
||
|
Amortisation of purchased intangible assets |
(119) |
(62) |
(85) |
(55) |
(73) |
(39%) |
33% |
||
|
Integration and restructuring costs |
(289) |
(752) |
(379) |
(355) |
(324) |
12% |
(9%) |
||
|
Write-down of goodwill |
- |
(16,196) |
- |
(311) |
- |
- |
- |
||
|
Gain on redemption of own debt |
- |
- |
- |
3,790 |
- |
- |
- |
||
|
Strategic disposals |
- |
442 |
241 |
212 |
(155) |
- |
(173%) |
||
|
Profit/(loss) before tax |
1,903 |
(25,669) |
(44) |
(252) |
(2,077) |
- |
- |
||
|
Tax |
(724) |
1,701 |
(228) |
640 |
576 |
(180%) |
(10%) |
||
|
Profit/(loss) from continuing operations |
1,179 |
(23,968) |
(272) |
388 |
(1,501) |
- |
- |
||
|
Loss from discontinued operations |
(46) |
1 |
(45) |
(13) |
(7) |
(85%) |
(46%) |
||
|
Profit/(loss) for the period |
1,133 |
(23,967) |
(317) |
375 |
(1,508) |
- |
- |
||
|
Minority interests |
(43) |
(221) |
(471) |
(83) |
(47) |
9% |
(43%) |
||
|
Preference share and other dividends |
(219) |
(162) |
(114) |
(432) |
(245) |
12% |
(43%) |
||
|
Profit/(loss) attributable to ordinary shareholders |
871 |
(24,350) |
(902) |
(140) |
(1,800) |
- |
- |
||
*profit/(loss) before tax, purchased intangibles amortisation, integration and restructuring costs, and write-down of goodwill and other intangible assets.
|
Key metrics |
|||||||||
|
Cost:income ratio |
47.3% |
1,028.9% |
53.8% |
66.4% |
59.1% |
(1,184bp) |
730bp |
||
|
Net interest margin |
2.05% |
2.10% |
1.78% |
1.70% |
1.75% |
(30bp) |
5bp |
||
|
Risk-weighted assets |
£543.1bn |
£577.8bn |
£575.7bn |
£547.3bn |
£594.7bn |
10% |
9% |
||
|
Risk elements In lending |
£10.8bn |
£18.8bn |
£23.7bn |
£30.7bn |
£35.0bn |
- |
14% |
||
|
Provision balance as % of REIL/PPLs* |
51% |
50% |
45% |
44% |
43% |
(800bp) |
(100bp) |
* includes disposal groups.
Note:
2008 data have been restated for the amendment to IFRS 2 'Share-based Payment' and the finalisation of the ABN AMRO acquisition accounting in the second half of 2008.
Appendix 2 Analysis by quarter
Divisional performance
The profit/(loss) of each division before amortisation of purchased intangible assets, write-down of goodwill and other assets, integration and restructuring costs, and after allocation of manufacturing costs is shown below. The Group manages costs where they arise. Customer-facing divisions control their direct expenses whilst Manufacturing is responsible for shared costs.
|
2008 |
2009 |
Q3 2009 vs. |
|||||||
|
Q3 |
Q4 |
Q1 |
Q2 |
Q3 |
Q3 2008 |
Q2 2009 |
|||
|
£m |
£m |
£m |
£m |
£m |
|||||
|
Operating profit/(loss) before impairment losses |
|||||||||
|
UK Retail |
420 |
381 |
371 |
490 |
468 |
11% |
(4%) |
||
|
UK Corporate |
523 |
487 |
421 |
535 |
566 |
8% |
6% |
||
|
Wealth |
103 |
77 |
100 |
134 |
120 |
17% |
(10%) |
||
|
Global Banking & Markets |
616 |
(2,597) |
3,845 |
1,116 |
647 |
5% |
(42%) |
||
|
Global Transaction Services |
275 |
285 |
240 |
269 |
275 |
- |
2% |
||
|
Ulster Bank |
98 |
36 |
71 |
78 |
59 |
(40%) |
(24%) |
||
|
US Retail & Commercial |
236 |
312 |
182 |
136 |
137 |
(42%) |
1% |
||
|
RBS Insurance |
150 |
176 |
81 |
142 |
13 |
(91%) |
(91%) |
||
|
Central items |
813 |
(476) |
486 |
(311) |
121 |
(85%) |
139% |
||
|
Core |
3,234 |
(1,319) |
5,797 |
2,589 |
2,406 |
(26%) |
(7%) |
||
|
Non-Core |
357 |
(3,109) |
(2,760) |
(1,459) |
(652) |
- |
55% |
||
|
Operating profit/(loss) before impairment losses |
3,591 |
(4,428) |
3,037 |
1,130 |
1,754 |
(51%) |
55% |
||
|
Included in the above are movements in fair value of own debt: |
|||||||||
|
Global Banking & Markets |
648 |
(875) |
647 |
(482) |
(320) |
(149%) |
(34%) |
||
|
Central items |
633 |
14 |
384 |
(478) |
(163) |
(126%) |
(66%) |
||
|
1,281 |
(861) |
1,031 |
(960) |
(483) |
(138%) |
(50%) |
|||
|
Impairment losses by division |
|||||||||
|
UK Retail |
287 |
292 |
354 |
470 |
404 |
41% |
(14%) |
||
|
UK Corporate |
55 |
169 |
100 |
450 |
187 |
- |
(58%) |
||
|
Wealth |
3 |
8 |
6 |
16 |
1 |
(67%) |
(94%) |
||
|
Global Banking & Markets |
2 |
505 |
269 |
(31) |
272 |
- |
- |
||
|
Global Transaction Services |
7 |
40 |
9 |
4 |
22 |
- |
- |
||
|
Ulster Bank |
17 |
71 |
67 |
90 |
144 |
- |
60% |
||
|
US Retail & Commercial |
134 |
177 |
223 |
146 |
180 |
34% |
23% |
||
|
RBS Insurance |
- |
42 |
5 |
1 |
2 |
- |
100% |
||
|
Central items |
7 |
11 |
(3) |
1 |
1 |
(86%) |
- |
||
|
Core |
512 |
1,315 |
1,030 |
1,147 |
1,213 |
137% |
6% |
||
|
Non-Core |
768 |
3,358 |
1,828 |
3,516 |
2,066 |
169% |
(41%) |
||
|
Total impairment losses |
1,280 |
4,673 |
2,858 |
4,663 |
3,279 |
156% |
(30%) |
||
Appendix 2 Analysis by quarter
Divisional performance (continued)
|
2008 |
2009 |
Q3 2009 vs. |
|||||||
|
Q3 |
Q4 |
Q1 |
Q2 |
Q3 |
Q3 2008 |
Q2 2009 |
|||
|
£m |
£m |
£m |
£m |
£m |
|||||
|
Operating profit/(loss) by division |
|||||||||
|
UK Retail |
133 |
89 |
17 |
20 |
64 |
(52%) |
- |
||
|
UK Corporate |
468 |
318 |
321 |
85 |
379 |
(19%) |
- |
||
|
Wealth |
100 |
69 |
94 |
118 |
119 |
19% |
1% |
||
|
Global Banking & Markets |
614 |
(3,102) |
3,576 |
1,147 |
375 |
(39%) |
(67%) |
||
|
Global Transaction Services |
268 |
245 |
231 |
265 |
253 |
(6%) |
(5%) |
||
|
Ulster Bank |
81 |
(35) |
4 |
(12) |
(85) |
- |
- |
||
|
US Retail & Commercial |
102 |
135 |
(41) |
(10) |
(43) |
(142%) |
- |
||
|
RBS Insurance |
150 |
134 |
76 |
141 |
11 |
(93%) |
(92%) |
||
|
Central items |
806 |
(487) |
489 |
(312) |
120 |
(85%) |
(138%) |
||
|
Core |
2,722 |
(2,634) |
4,767 |
1,442 |
1,193 |
(56%) |
(17%) |
||
|
Non-Core |
(411) |
(6,467) |
(4,588) |
(4,975) |
(2,718) |
- |
(45%) |
||
|
Group operating profit/(loss) |
2,311 |
(9,101) |
179 |
(3,533) |
(1,525) |
(166%) |
(57%) |
||
|
Loan impairment losses |
1,023 |
4,049 |
2,276 |
4,520 |
3,262 |
- |
(28%) |
||
|
Impairment losses on available-for-sale securities |
257 |
624 |
582 |
143 |
17 |
(93%) |
(88%) |
||
|
1,280 |
4,673 |
2,858 |
4,663 |
3,279 |
156% |
(30%) |
|||
|
Loan impairment charge as % of gross loans and advances excluding reverse repurchase agreements |
0.64% |
2.24% |
1.34% |
2.98% |
2.14% |
150bp |
(84bp) |
||
|
2008 |
2009 |
30 Sept 2009 vs |
|||||||
|
30 Sept |
31 Dec |
31 Mar |
30 June |
30 Sept |
30 Sept 2008 |
30 June 2009 |
|||
|
£bn |
£bn |
£bn |
£bn |
£bn |
|||||
|
Risk-weighted assets by division |
|||||||||
|
UK Retail |
46.2 |
45.7 |
49.6 |
54.0 |
51.6 |
12% |
(4%) |
||
|
UK Corporate |
88.7 |
85.7 |
86.2 |
89.5 |
91.0 |
3% |
2% |
||
|
Wealth |
10.8 |
10.8 |
10.6 |
10.3 |
10.7 |
(1%) |
4% |
||
|
Global Banking & Markets |
165.4 |
162.4 |
148.6 |
122.4 |
131.9 |
(20%) |
8% |
||
|
Global Transaction Services |
19.4 |
17.4 |
18.7 |
16.7 |
18.9 |
(3%) |
13% |
||
|
Ulster Bank |
22.2 |
24.5 |
26.2 |
26.2 |
28.5 |
28% |
9% |
||
|
US Retail & Commercial |
51.4 |
63.9 |
64.3 |
55.6 |
62.8 |
22% |
13% |
||
|
Other |
8.3 |
7.1 |
7.8 |
8.5 |
9.0 |
9% |
5% |
||
|
Core |
412.4 |
417.5 |
412.0 |
383.2 |
404.4 |
(2%) |
6% |
||
|
Non-Core |
130.7 |
160.3 |
163.7 |
164.1 |
190.3 |
46% |
16% |
||
|
Total risk-weighted assets |
543.1 |
577.8 |
575.7 |
547.3 |
594.7 |
10% |
9% |
||
Appendix 2 Analysis by quarter
UK Retail
|
2008 |
2009 |
Q3 2009 vs. |
|||||||
|
Q3 |
Q4 |
Q1 |
Q2 |
Q3 |
Q3 2008 |
Q2 2009 |
|||
|
Income statement |
£m |
£m |
£m |
£m |
£m |
||||
|
Net interest income |
821 |
856 |
797 |
868 |
848 |
3% |
(2%) |
||
|
Net fees and commissions - banking |
365 |
345 |
337 |
321 |
303 |
(17%) |
(6%) |
||
|
Other non-interest income (net of insurance claims) |
34 |
54 |
53 |
69 |
69 |
103% |
- |
||
|
Non-interest income |
399 |
399 |
390 |
390 |
372 |
(7%) |
(5%) |
||
|
Total income |
1,220 |
1,255 |
1,187 |
1,258 |
1,220 |
- |
(3%) |
||
|
Direct expenses |
|||||||||
|
- staff |
(243) |
(236) |
(214) |
(214) |
(206) |
(15%) |
(4%) |
||
|
- other |
(109) |
(101) |
(115) |
(102) |
(99) |
(9%) |
(3%) |
||
|
Indirect expenses |
(448) |
(537) |
(487) |
(452) |
(447) |
- |
(1%) |
||
|
(800) |
(874) |
(816) |
(768) |
(752) |
(6%) |
(2%) |
|||
|
Operating profit before impairment losses |
420 |
381 |
371 |
490 |
468 |
11% |
(4%) |
||
|
Impairment losses |
(287) |
(292) |
(354) |
(470) |
(404) |
41% |
(14%) |
||
|
Operating profit |
133 |
89 |
17 |
20 |
64 |
(52%) |
- |
||
|
Analysis of income by product: |
|||||||||
|
Personal advances |
310 |
296 |
305 |
311 |
303 |
(2%) |
(3%) |
||
|
Personal deposits |
557 |
470 |
397 |
354 |
319 |
(43%) |
(10%) |
||
|
Mortgages |
93 |
186 |
207 |
273 |
319 |
- |
17% |
||
|
Bancassurance |
34 |
51 |
52 |
69 |
69 |
103% |
- |
||
|
Cards |
205 |
208 |
204 |
212 |
225 |
10% |
6% |
||
|
Other |
21 |
44 |
22 |
39 |
(15) |
(171%) |
(138%) |
||
|
Total income |
1,220 |
1,255 |
1,187 |
1,258 |
1,220 |
- |
(3%) |
||
|
Analysis of impairment by sector: |
|||||||||
|
Mortgages |
9 |
9 |
22 |
41 |
26 |
189% |
(37%) |
||
|
Personal |
144 |
169 |
195 |
299 |
247 |
72% |
(17%) |
||
|
Cards |
134 |
114 |
137 |
130 |
131 |
(2%) |
1% |
||
|
Total impairment |
287 |
292 |
354 |
470 |
404 |
41% |
(14%) |
||
|
Loan impairment charge as % of gross customer loans and advances by sector: |
|||||||||
|
Mortgages |
0.05% |
0.05% |
0.12% |
0.21% |
0.13% |
8bp |
(8bp) |
||
|
Personal |
3.76% |
4.42% |
5.20% |
8.31% |
6.81% |
305bp |
(149bp) |
||
|
Cards |
8.25% |
7.24% |
9.13% |
8.52% |
8.59% |
34bp |
7bp |
||
|
1.23% |
1.24% |
1.50% |
1.94% |
1.60% |
37bp |
(34bp) |
|||
Appendix 2 Analysis by quarter
UK Retail (continued)
|
2008 |
2009 |
Q3 2009 vs. |
|||||||
|
Key metrics |
Q3 |
Q4 |
Q1 |
Q2 |
Q3 |
Q3 2008 |
Q2 2009 |
||
|
Performance ratios |
|||||||||
|
Return on equity (1) |
9.4% |
6.5% |
1.2% |
1.4% |
4.6% |
(480bp) |
320bp |
||
|
Net interest margin |
3.62% |
3.73% |
3.46% |
3.69% |
3.47% |
(15bp) |
(22bp) |
||
|
Cost:income ratio |
65.4% |
63.8% |
69.0% |
59.6% |
57.4% |
800bp |
227bp |
||
|
2008 |
2009 |
30 Sept 2009 vs. |
|||||||
|
30 Sept |
31 Dec |
31 Mar |
30 June |
30 Sept |
30 Sept 2008 |
30 June 2009 |
|||
|
£bn |
£bn |
£bn |
£bn |
£bn |
|||||
|
Capital and balance sheet |
|||||||||
|
Loans and advances to customers - gross |
|
||||||||
|
- mortgages |
71.5 |
72.2 |
73.3 |
76.6 |
80.3 |
12% |
5% |
||
|
- personal |
15.3 |
15.3 |
15.0 |
14.4 |
14.5 |
(5%) |
1% |
||
|
- cards |
6.5 |
6.3 |
6.0 |
6.1 |
6.1 |
(6%) |
- |
||
|
Customer deposits (excluding bancassurance) |
76.5 |
78.9 |
80.3 |
83.4 |
85.6 |
12% |
3% |
||
|
AUMs - excluding deposits |
6.4 |
5.7 |
4.6 |
4.7 |
5.0 |
(22%) |
6% |
||
|
Risk elements in lending |
3.4 |
3.8 |
4.1 |
4.5 |
4.7 |
38% |
4% |
||
|
Loan:deposit ratio (excluding repos) |
121.9% |
119.0% |
117.5% |
116.4% |
117.8% |
(408bp) |
139bp |
||
|
Risk-weighted assets |
46.2 |
45.7 |
49.6 |
54.0 |
51.6 |
12% |
(4%) |
||
|
Note: |
|
|
(1) |
Return on equity is based on divisional operating profit after tax, divided by divisional notional equity (based on 7% of divisional risk-weighted assets, adjusted for capital deductions). |
Appendix 2 Analysis by quarter
UK Corporate
|
2008 |
2009 |
Q3 2009 vs. |
|||||||
|
Q3 |
Q4 |
Q1 |
Q2 |
Q3 |
Q3 2008 |
Q2 2009 |
|||
|
Income statement |
£m |
£m |
£m |
£m |
£m |
||||
|
Net interest income |
618 |
588 |
499 |
560 |
607 |
(2%) |
8% |
||
|
Net fees and commissions |
222 |
215 |
194 |
219 |
223 |
- |
2% |
||
|
Other non-interest income |
114 |
107 |
117 |
109 |
106 |
(7%) |
(3%) |
||
|
Non-interest income |
336 |
322 |
311 |
328 |
329 |
(2%) |
- |
||
|
Total income |
954 |
910 |
810 |
888 |
936 |
(2%) |
5% |
||
|
Direct expenses |
|||||||||
|
- staff |
(206) |
(210) |
(185) |
(182) |
(174) |
(16%) |
(4%) |
||
|
- other |
(96) |
(73) |
(74) |
(46) |
(71) |
(26%) |
54% |
||
|
Indirect expenses |
(129) |
(140) |
(130) |
(125) |
(125) |
(3%) |
- |
||
|
(431) |
(423) |
(389) |
(353) |
(370) |
(14%) |
5% |
|||
|
Operating profit before impairment losses |
523 |
487 |
421 |
535 |
566 |
8% |
6% |
||
|
Impairment losses |
(55) |
(169) |
(100) |
(450) |
(187) |
- |
(58%) |
||
|
Operating profit |
468 |
318 |
321 |
85 |
379 |
(19%) |
- |
||
|
Analysis of income by business: |
|||||||||
|
Corporate and commercial lending |
542 |
529 |
538 |
586 |
616 |
14% |
5% |
||
|
Asset and invoice finance |
60 |
53 |
48 |
57 |
59 |
(2%) |
4% |
||
|
Corporate deposits |
342 |
338 |
290 |
263 |
241 |
(30%) |
(8%) |
||
|
Other |
10 |
(10) |
(66) |
(18) |
20 |
100% |
- |
||
|
Total income |
954 |
910 |
810 |
888 |
936 |
(2%) |
5% |
||
|
Analysis of impairment by sector: |
|||||||||
|
Manufacturing |
5 |
6 |
4 |
17 |
7 |
40% |
(59%) |
||
|
Housebuilding and construction |
6 |
31 |
6 |
55 |
58 |
- |
5% |
||
|
Property |
11 |
6 |
11 |
149 |
69 |
- |
(54%) |
||
|
Asset & invoice finance |
24 |
39 |
21 |
47 |
4 |
(83%) |
(91%) |
||
|
Other |
9 |
87 |
58 |
182 |
49 |
- |
(73%) |
||
|
Total impairment |
55 |
169 |
100 |
450 |
187 |
- |
(58%) |
||
|
Loan impairment charge as % of gross customer loans and advances (excluding reverse repurchase agreements) by sector: |
|||||||||
|
Manufacturing |
0.41% |
0.44% |
0.32% |
1.36% |
0.56% |
15bp |
(80bp) |
||
|
Housebuilding and construction |
0.41% |
2.10% |
0.40% |
4.40% |
4.64% |
423bp |
24bp |
||
|
Property |
0.15% |
0.08% |
0.14% |
1.81% |
0.92% |
77bp |
(89bp) |
||
|
Asset & invoice finance |
1.13% |
1.84% |
0.93% |
2.09% |
0.18% |
(95bp) |
(191bp) |
||
|
Other |
0.06% |
0.52% |
0.36% |
1.20% |
0.30% |
25bp |
(90bp) |
||
|
0.19% |
0.58% |
0.34% |
1.60% |
0.66% |
47bp |
(94bp) |
|||
Appendix 2 Analysis by quarter
UK Corporate (continued)
|
2008 |
2009 |
Q3 2009 vs. |
|||||||
|
Q3 |
Q4 |
Q1 |
Q2 |
Q3 |
Q3 2008 |
Q2 2009 |
|||
|
Key metrics |
|||||||||
|
Performance ratios |
|||||||||
|
Return on equity (1) |
18.6% |
12.9% |
12.7% |
3.2% |
13.7% |
(490bp) |
1,050bp |
||
|
Net interest margin |
2.40% |
2.20% |
1.88% |
2.17% |
2.38% |
(2bp) |
21bp |
||
|
Cost:income ratio |
45.2% |
46.5% |
48.0% |
39.8% |
39.5% |
565bp |
22bp |
||
|
2008 |
2009 |
30 Sept 2009 vs. |
|||||||
|
30 Sept |
31 Dec |
31 Mar |
30 June |
30 Sept |
30 Sept 2008 |
30 June 2009 |
|||
|
£bn |
£bn |
£bn |
£bn |
£bn |
|||||
|
Capital and balance sheet |
|||||||||
|
Total assets |
117.8 |
121.0 |
120.1 |
116.2 |
117.3 |
- |
1% |
||
|
Loans and advances to customers - gross |
|||||||||
|
- manufacturing |
4.9 |
5.4 |
5.0 |
5.0 |
5.0 |
2% |
- |
||
|
- housebuilding and construction |
5.8 |
5.9 |
6.0 |
5.0 |
5.0 |
(14%) |
- |
||
|
- property |
30.0 |
30.5 |
32.0 |
33.0 |
30.0 |
- |
(9%) |
||
|
- asset and invoice finance |
8.5 |
8.5 |
9.0 |
9.0 |
9.0 |
6% |
- |
||
|
- other |
64.8 |
66.6 |
64.7 |
60.6 |
64.9 |
- |
7% |
||
|
Customer deposits |
85.9 |
82.0 |
82.9 |
85.6 |
86.7 |
1% |
1% |
||
|
Risk elements in lending |
1.5 |
1.3 |
2.0 |
2.4 |
2.5 |
67% |
4% |
||
|
Loan:deposit ratio (excluding repos) |
132.7% |
142.7% |
140.8% |
131.6% |
131.4% |
(125bp) |
(16bp) |
||
|
Risk-weighted assets |
88.7 |
85.7 |
86.2 |
89.5 |
91.0 |
3% |
2% |
||
|
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
Wealth
|
2008 |
2009 |
Q3 2009 vs. |
|||||||
|
Q3 |
Q4 |
Q1 |
Q2 |
Q3 |
Q3 2008 |
Q2 2009 |
|||
|
Income statement |
£m |
£m |
£m |
£m |
£m |
||||
|
Net interest income |
153 |
160 |
158 |
176 |
168 |
10% |
(5%) |
||
|
Net fees and commissions |
98 |
96 |
90 |
90 |
92 |
(6%) |
2% |
||
|
Other non-interest income |
19 |
19 |
21 |
21 |
19 |
- |
(10%) |
||
|
Non-interest income |
117 |
115 |
111 |
111 |
111 |
(5%) |
- |
||
|
Total income |
270 |
275 |
269 |
287 |
279 |
3% |
(3%) |
||
|
Direct expenses |
|||||||||
|
- staff |
(94) |
(97) |
(90) |
(78) |
(82) |
(13%) |
5% |
||
|
- other |
(34) |
(51) |
(33) |
(34) |
(35) |
3% |
3% |
||
|
Indirect expenses |
(39) |
(50) |
(46) |
(41) |
(42) |
8% |
2% |
||
|
(167) |
(198) |
(169) |
(153) |
(159) |
(5%) |
4% |
|||
|
Operating profit before impairment losses |
103 |
77 |
100 |
134 |
120 |
17% |
(10%) |
||
|
Impairment losses |
(3) |
(8) |
(6) |
(16) |
(1) |
(67%) |
(94%) |
||
|
Operating profit |
100 |
69 |
94 |
118 |
119 |
19% |
1% |
||
|
Analysis of income: |
|||||||||
|
Private Banking |
211 |
221 |
219 |
242 |
232 |
10% |
(4%) |
||
|
Investments |
59 |
54 |
50 |
45 |
47 |
(20%) |
4% |
||
|
Total income |
270 |
275 |
269 |
287 |
279 |
3% |
(3%) |
||
|
Key metrics |
|||||||||
|
Performance ratios |
|||||||||
|
Net interest margin |
4.68% |
4.56% |
4.47% |
4.82% |
4.34% |
(34bp) |
(48bp) |
||
|
Cost:income ratio |
61.9% |
72.0% |
62.8% |
53.3% |
57.0% |
486bp |
(368bp) |
||
|
2008 |
2009 |
30 Sept 2009 vs. |
|||||||
|
30 Sept |
31 Dec |
31 Mar |
30 June |
30 Sept |
30 Sept 2008 |
30 June 2009 |
|||
|
£bn |
£bn |
£bn |
£bn |
£bn |
|||||
|
Capital and balance sheet |
|||||||||
|
Loans and advances to customers gross |
|||||||||
|
- mortgages |
5.0 |
5.3 |
5.5 |
5.6 |
6.1 |
22% |
9% |
||
|
- personal |
4.9 |
5.0 |
4.6 |
4.7 |
4.8 |
(2%) |
2% |
||
|
- other |
2.0 |
2.1 |
2.2 |
2.1 |
2.5 |
25% |
19% |
||
|
Customer deposits |
35.8 |
34.1 |
34.9 |
35.3 |
36.3 |
1% |
3% |
||
|
AUMs - excluding deposits |
34.6 |
34.7 |
31.3 |
29.8 |
31.7 |
(8%) |
6% |
||
|
Risk elements in lending |
0.1 |
0.1 |
0.1 |
0.2 |
0.2 |
100% |
- |
||
|
Loan:deposit ratio (excluding repos) |
33.3% |
36.3% |
35.3% |
35.2% |
36.9% |
360bp |
172bp |
||
|
Risk-weighted assets |
10.8 |
10.8 |
10.6 |
10.3 |
10.7 |
(1%) |
4% |
||
|
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
Global Banking & Markets
|
2008 |
2009 |
Q3 2009 vs. |
|||||||
|
Q3 |
Q4 |
Q1 |
Q2 |
Q3 |
Q3 2008 |
Q2 2009 |
|||
|
Income statement |
£m |
£m |
£m |
£m |
£m |
||||
|
Net interest income from banking activities |
535 |
1,054 |
812 |
660 |
447 |
(16%) |
(32%) |
||
|
Net fees and commissions receivable |
405 |
187 |
291 |
409 |
338 |
(17%) |
(17%) |
||
|
Income/(loss) from trading activities |
760 |
(2,918) |
4,329 |
1,338 |
1,184 |
56% |
(12%) |
||
|
Other operating income (net of related funding costs) |
(22) |
(119) |
(93) |
(97) |
(110) |
- |
13% |
||
|
Non-interest income |
1,143 |
(2,850) |
4,527 |
1,650 |
1,412 |
24% |
(14%) |
||
|
Total income |
1,678 |
(1,796) |
5,339 |
2,310 |
1,859 |
11% |
(20%) |
||
|
Direct expenses |
|||||||||
|
- staff |
(618) |
(178) |
(1,001) |
(762) |
(760) |
23% |
- |
||
|
- other |
(284) |
(421) |
(300) |
(231) |
(261) |
(8%) |
13% |
||
|
Indirect expenses |
(160) |
(202) |
(193) |
(201) |
(191) |
19% |
(5%) |
||
|
(1,062) |
(801) |
(1,494) |
(1,194) |
(1,212) |
14% |
2% |
|||
|
Operating profit/(loss) before impairment losses |
616 |
(2,597) |
3,845 |
1,116 |
647 |
5% |
(42%) |
||
|
Impairment losses |
(2) |
(505) |
(269) |
31 |
(272) |
- |
- |
||
|
Operating profit/(loss) |
614 |
(3,102) |
3,576 |
1,147 |
375 |
(39%) |
(67%) |
||
|
Analysis of income by product: |
|||||||||
|
Rates - money markets |
384 |
748 |
853 |
466 |
287 |
(25%) |
(38%) |
||
|
Rates - flow |
- |
16 |
1,297 |
536 |
694 |
- |
29% |
||
|
Currencies |
417 |
414 |
558 |
384 |
141 |
(66%) |
(63%) |
||
|
Commodities |
47 |
403 |
228 |
239 |
120 |
155% |
(50%) |
||
|
Equities |
21 |
(214) |
371 |
364 |
282 |
- |
(23%) |
||
|
Credit markets |
(105) |
(2,341) |
858 |
690 |
475 |
- |
(31%) |
||
|
Portfolio management and origination |
266 |
53 |
527 |
113 |
180 |
(32%) |
59% |
||
|
Fair value of own debt |
648 |
(875) |
647 |
(482) |
(320) |
(149%) |
(34%) |
||
|
Total income |
1,678 |
(1,796) |
5,339 |
2,310 |
1,859 |
11% |
(20%) |
||
|
Analysis of impairment by sector: |
|||||||||
|
Manufacturing and infrastructure |
- |
39 |
16 |
23 |
33 |
- |
43% |
||
|
Property and construction |
- |
- |
46 |
4 |
- |
- |
- |
||
|
Transport |
- |
- |
- |
1 |
2 |
- |
100% |
||
|
Banks and financial institutions |
- |
194 |
4 |
39 |
237 |
- |
- |
||
|
Others |
2 |
272 |
203 |
(98) |
- |
- |
- |
||
|
Total impairment |
2 |
505 |
269 |
(31) |
272 |
- |
- |
||
|
Loan impairment charge as % of gross customer loans and advances (excluding reverse repurchase agreements) |
- |
1.13% |
0.68% |
(0.11%) |
0.60% |
60bp |
71bp |
||
Appendix 2 Analysis by quarter
Global Banking & Markets (continued)
|
2008 |
2009 |
Q3 2009 vs. |
|||||||
|
Key metrics |
Q3 |
Q4 |
Q1 |
Q2 |
Q3 |
Q3 2008 |
Q2 2009 |
||
|
Performance ratios |
|||||||||
|
Return on equity (1) |
10.5% |
(54.1%) |
66.1% |
25.1% |
7.7% |
(280bp) |
(1,740bp) |
||
|
Net interest margin |
1.24% |
1.99% |
2.02% |
1.48% |
1.08% |
(16bp) |
(40bp) |
||
|
Cost:income ratio |
63.3% |
(44.6%) |
28.0% |
51.7% |
65.2% |
(191bp) |
(1,351bp) |
||
|
2008 |
2009 |
30 Sept 2009 vs. |
|||||||
|
30 Sept |
31 Dec |
31 Mar |
30 June |
30 Sept |
30 Sept 2008 |
30 June 2009 |
|||
|
£bn |
£bn |
£bn |
£bn |
£bn |
|||||
|
Capital and balance sheet |
|||||||||
|
Loans and advances (including banks) |
188.6 |
225.5 |
206.5 |
156.0 |
157.0 |
(17%) |
1% |
||
|
Reverse repos |
206.5 |
88.8 |
80.6 |
75.2 |
75.4 |
(63%) |
- |
||
|
Securities |
157.6 |
127.5 |
124.3 |
115.5 |
117.6 |
(25%) |
2% |
||
|
Cash and eligible bills |
35.3 |
20.2 |
28.6 |
51.5 |
63.8 |
81% |
24% |
||
|
Other assets |
72.3 |
42.9 |
43.1 |
46.2 |
50.8 |
(30%) |
10% |
||
|
Total third party assets (excluding derivatives mark to market) |
660.3 |
504.9 |
483.1 |
444.4 |
464.6 |
(30%) |
5% |
||
|
Net derivative assets (after netting) |
73.0 |
113.0 |
98.0 |
70.7 |
81.5 |
12% |
15% |
||
|
Customer deposits (excluding repos) |
91.0 |
88.6 |
81.8 |
65.0 |
58.1 |
(36%) |
(11%) |
||
|
Risk elements in lending |
0.3 |
0.7 |
0.8 |
1.1 |
1.6 |
- |
49% |
||
|
Loan:deposit ratio (excluding repos) |
158.7% |
192.0% |
194.4% |
182.7% |
192.4% |
3,368bp |
962bp |
||
|
Risk-weighted assets |
165.4 |
162.4 |
148.6 |
122.4 |
131.9 |
(20%) |
8% |
||
|
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
|
2008 |
2009 |
Q3 2009 vs. |
|||||||
|
Q3 |
Q4 |
Q1 |
Q2 |
Q3 |
Q3 2008 |
Q2 2009 |
|||
|
Income statement |
£m |
£m |
£m |
£m |
£m |
||||
|
Net interest income |
244 |
249 |
220 |
225 |
234 |
(4%) |
4% |
||
|
Non-interest income |
375 |
407 |
385 |
398 |
388 |
3% |
(3%) |
||
|
Total income |
619 |
656 |
605 |
623 |
622 |
- |
- |
||
|
Direct expenses |
|||||||||
|
- staff |
(91) |
(93) |
(95) |
(87) |
(87) |
(4%) |
- |
||
|
- other |
(38) |
(42) |
(35) |
(38) |
(37) |
(3%) |
(3%) |
||
|
Indirect expenses |
(215) |
(236) |
(235) |
(229) |
(223) |
4% |
(3%) |
||
|
(344) |
(371) |
(365) |
(354) |
(347) |
1% |
(2%) |
|||
|
Operating profit before impairment losses |
275 |
285 |
240 |
269 |
275 |
- |
2% |
||
|
Impairment losses |
(7) |
(40) |
(9) |
(4) |
(22) |
- |
- |
||
|
Operating profit |
268 |
245 |
231 |
265 |
253 |
(6%) |
(5%) |
||
|
Analysis of income by product: |
|||||||||
|
Domestic cash management |
203 |
210 |
202 |
204 |
202 |
- |
(1%) |
||
|
International cash management |
179 |
200 |
169 |
179 |
183 |
2% |
2% |
||
|
Trade finance |
60 |
70 |
75 |
77 |
71 |
18% |
(8%) |
||
|
Merchant acquiring |
147 |
145 |
129 |
131 |
134 |
(9%) |
2% |
||
|
Commercial cards |
30 |
31 |
30 |
32 |
32 |
7% |
- |
||
|
Total income |
619 |
656 |
605 |
623 |
622 |
- |
- |
||
|
Key metrics |
|||||||||
|
Performance ratios |
|||||||||
|
Net interest margin |
8.54% |
8.00% |
8.29% |
9.23% |
9.63% |
109bp |
40bp |
||
|
Cost:income ratio |
55.6% |
56.6% |
60.3% |
56.8% |
55.8% |
(22bp) |
103bp |
||
|
2008 |
2009 |
30 Sept 2009 vs. |
|||||||
|
30 Sept |
31 Dec |
31 Mar |
30 June |
30 Sept |
30 Sept 2008 |
30 June 2009 |
|||
|
£bn |
£bn |
£bn |
£bn |
£bn |
|||||
|
Capital and balance sheet |
|||||||||
|
Total third party assets |
23.9 |
22.2 |
21.1 |
19.4 |
21.4 |
(10%) |
10% |
||
|
Loans and advances |
18.0 |
14.8 |
14.7 |
13.5 |
14.5 |
(19%) |
7% |
||
|
Customer deposits |
60.3 |
61.8 |
58.3 |
54.0 |
58.6 |
(3%) |
9% |
||
|
Risk elements in lending |
0.2 |
0.1 |
0.1 |
0.1 |
0.2 |
- |
100% |
||
|
Loan:deposit ratio (excluding repos) |
31.3% |
25.1% |
26.4% |
25.9% |
25.6% |
(578bp) |
(29bp) |
||
|
Risk-weighted assets |
19.4 |
17.4 |
18.7 |
16.7 |
18.9 |
(3%) |
13% |
||
Appendix 2 Analysis by quarter
Ulster Bank
|
2008 |
2009 |
Q3 2009 vs. |
|||||||
|
Q3 |
Q4 |
Q1 |
Q2 |
Q3 |
Q3 2008 |
Q2 2009 |
|||
|
Income statement |
£m |
£m |
£m |
£m |
£m |
||||
|
Net interest income |
207 |
174 |
202 |
208 |
176 |
(15%) |
(15%) |
||
|
Net fees and commissions |
69 |
60 |
46 |
39 |
45 |
(35%) |
15% |
||
|
Other non-interest income |
- |
(6) |
11 |
12 |
10 |
- |
(17%) |
||
|
Non-interest income |
69 |
54 |
57 |
51 |
55 |
(20%) |
8% |
||
|
Total income |
276 |
228 |
259 |
259 |
231 |
(16%) |
(11%) |
||
|
Direct expenses |
|||||||||
|
- staff |
(84) |
(87) |
(89) |
(81) |
(79) |
(6%) |
(2%) |
||
|
- other |
(23) |
(24) |
(22) |
(25) |
(20) |
(13%) |
(20%) |
||
|
Indirect expenses |
(71) |
(81) |
(77) |
(75) |
(73) |
3% |
(3%) |
||
|
(178) |
(192) |
(188) |
(181) |
(172) |
(3%) |
(5%) |
|||
|
Operating profit before impairment losses |
98 |
36 |
71 |
78 |
59 |
(40%) |
(24%) |
||
|
Impairment losses |
(17) |
(71) |
(67) |
(90) |
(144) |
- |
60% |
||
|
Operating profit/(loss) |
81 |
(35) |
4 |
(12) |
(85) |
- |
- |
||
|
Analysis of income by business: |
|||||||||
|
Ulster corporate |
160 |
139 |
162 |
138 |
134 |
(16%) |
(3%) |
||
|
Ulster retail |
107 |
92 |
93 |
101 |
104 |
(3%) |
3% |
||
|
Other |
9 |
(3) |
4 |
20 |
(7) |
(178%) |
(135%) |
||
|
Total income |
276 |
228 |
259 |
259 |
231 |
(16%) |
(11%) |
||
|
Analysis of impairment by sector: |
|||||||||
|
Mortgages |
5 |
4 |
14 |
10 |
30 |
- |
- |
||
|
Corporate |
3 |
43 |
40 |
66 |
87 |
- |
32% |
||
|
Other |
9 |
24 |
13 |
14 |
27 |
- |
93% |
||
|
Total impairment |
17 |
71 |
67 |
90 |
144 |
- |
60% |
||
|
Loan impairment charge as % of gross customer loans and advances excluding reverse repurchase agreements by sector: |
|||||||||
|
Mortgages |
0.13% |
0.10% |
0.32% |
0.25% |
0.72% |
59bp |
48bp |
||
|
Corporate |
0.06% |
0.72% |
0.71% |
1.23% |
1.59% |
153bp |
36bp |
||
|
Other |
1.61% |
4.60% |
2.58% |
3.50% |
5.40% |
379bp |
190bp |
||
|
0.18% |
0.65% |
0.64% |
0.92% |
1.42% |
124bp |
50bp |
|||
Appendix 2 Analysis by quarter
Ulster Bank (continued)
|
2008 |
2009 |
Q3 2009 vs. |
|||||||
|
Key metrics |
Q3 |
Q4 |
Q1 |
Q2 |
Q3 |
Q3 2008 |
Q2 2009 |
||
|
Performance ratios |
|||||||||
|
Return on equity (1) |
17.3% |
(6.5%) |
0.7% |
(2.0%) |
(12.7%) |
(3,000bp) |
(1,070bp) |
||
|
Net interest margin |
2.04% |
1.67% |
1.87% |
2.03% |
1.74% |
(30bp) |
(29bp) |
||
|
Cost:income ratio |
64.5% |
84.2% |
72.6% |
69.9% |
74.5% |
(997bp) |
(458bp) |
||
|
2008 |
2009 |
30 Sept 2009 vs. |
|||||||
|
30 Sept |
31 Dec |
31 Mar |
30 June |
30 Sept |
30 Sept 2008 |
30 June 2009 |
|||
|
£bn |
£bn |
£bn |
£bn |
£bn |
|||||
|
Capital and balance sheet |
|||||||||
|
Loans and advances to customers gross: |
|||||||||
|
- mortgages |
15.5 |
18.1 |
17.4 |
16.0 |
16.7 |
8% |
4% |
||
|
- corporate |
19.3 |
23.8 |
22.8 |
21.2 |
21.9 |
13% |
3% |
||
|
- other |
2.2 |
2.1 |
2.0 |
1.8 |
2.0 |
(9%) |
11% |
||
|
Customer deposits |
21.5 |
24.3 |
19.5 |
18.9 |
20.9 |
(3%) |
11% |
||
|
Risk elements in lending: |
|||||||||
|
- mortgages |
0.2 |
0.3 |
0.4 |
0.4 |
0.5 |
150% |
25% |
||
|
- corporate |
0.2 |
0.8 |
1.0 |
1.1 |
1.3 |
- |
18% |
||
|
- other |
0.1 |
0.1 |
0.1 |
0.1 |
0.2 |
100% |
- |
||
|
Loan:deposit ratio (excluding repos) |
172.3% |
181.1% |
217.4% |
206.3% |
194.0% |
2,165bp |
(1,237bp) |
||
|
Risk-weighted assets |
22.2 |
24.5 |
26.2 |
26.2 |
28.5 |
28% |
9% |
||
|
Note: |
|
|
(1) |
Return on equity is based on divisional operating profit after tax, divided by divisional notional equity (based on 7% of divisional risk-weighted assets, adjusted for capital deductions). |
Appendix 2 Analysis by quarter
US Retail and Commercial (£ Sterling)
|
2008 |
2009 |
Q3 2009 vs. |
|||||||
|
Q3 |
Q4 |
Q1 |
Q2 |
Q3 |
Q3 2008 |
Q2 2009 |
|||
|
Income statement |
£m |
£m |
£m |
£m |
£m |
||||
|
Net interest income |
440 |
512 |
494 |
448 |
410 |
(7%) |
(8%) |
||
|
Net fees and commissions |
171 |
183 |
198 |
209 |
159 |
(7%) |
(24%) |
||
|
Other non-interest income |
29 |
84 |
52 |
45 |
65 |
124% |
44% |
||
|
Non-interest income |
200 |
267 |
250 |
254 |
224 |
12% |
(12%) |
||
|
Total income |
640 |
779 |
744 |
702 |
634 |
(1%) |
(10%) |
||
|
Direct expenses |
|||||||||
|
- staff |
(159) |
(175) |
(218) |
(184) |
(174) |
9% |
(5%) |
||
|
- other |
(92) |
(120) |
(143) |
(188) |
(132) |
43% |
(30%) |
||
|
Indirect expenses |
(153) |
(172) |
(201) |
(194) |
(191) |
25% |
(2%) |
||
|
(404) |
(467) |
(562) |
(566) |
(497) |
23% |
(12%) |
|||
|
Operating profit before impairment losses |
236 |
312 |
182 |
136 |
137 |
(42%) |
1% |
||
|
Impairment losses |
(134) |
(177) |
(223) |
(146) |
(180) |
34% |
23% |
||
|
Operating profit/(loss) |
102 |
135 |
(41) |
(10) |
(43) |
(142%) |
- |
||
|
Average exchange rate - US$/£ |
1.892 |
1.570 |
1.436 |
1.551 |
1.640 |
||||
|
Analysis of income by product: |
|||||||||
|
Mortgages and home equity |
88 |
112 |
142 |
130 |
112 |
27% |
(14%) |
||
|
Personal lending and cards |
86 |
90 |
107 |
113 |
116 |
35% |
3% |
||
|
Retail deposits |
256 |
279 |
231 |
202 |
200 |
(22%) |
(1%) |
||
|
Commercial lending |
98 |
128 |
141 |
140 |
127 |
30% |
(9%) |
||
|
Commercial deposits |
97 |
111 |
104 |
89 |
97 |
- |
9% |
||
|
Other |
15 |
59 |
19 |
28 |
(18) |
- |
(164%) |
||
|
Total income |
640 |
779 |
744 |
702 |
634 |
(1%) |
(10%) |
||
|
Analysis of impairment by sector: |
|||||||||
|
Residential mortgages |
16 |
13 |
23 |
12 |
29 |
81% |
142% |
||
|
Home equity |
20 |
22 |
29 |
43 |
82 |
- |
91% |
||
|
Corporate & commercial |
54 |
87 |
108 |
61 |
65 |
20% |
7% |
||
|
Other |
44 |
55 |
63 |
30 |
4 |
(91%) |
(87%) |
||
|
Total impairment |
134 |
177 |
223 |
146 |
180 |
34% |
23% |
||
|
Loan impairment charge as % of gross customer loans and advances (excluding reverse repurchase agreements) by sector: |
|||||||||
|
Residential mortgages |
0.74% |
0.55% |
1.00% |
0.66% |
1.68% |
95bp |
102bp |
||
|
Home equity |
0.53% |
0.47% |
0.62% |
1.08% |
2.05% |
152bp |
97bp |
||
|
Corporate & commercial |
1.11% |
1.46% |
1.79% |
1.19% |
1.27% |
16bp |
8bp |
||
|
Other |
2.17% |
2.24% |
2.57% |
1.45% |
0.20% |
(197bp) |
(124bp) |
||
|
1.04% |
1.15% |
1.44% |
1.12% |
1.41% |
37bp |
29bp |
|||
Appendix 2 Analysis by quarter
US Retail and Commercial (£ Sterling) (continued)
|
2008 |
2009 |
Q3 2009 vs. |
|||||||
|
Key metrics |
Q3 |
Q4 |
Q1 |
Q2 |
Q3 |
Q3 2008 |
Q2 2009 |
||
|
Performance ratios |
|||||||||
|
Return on equity (1) |
7.4% |
7.9% |
(2.4%) |
(0.7%) |
(2.5%) |
(990bp) |
(180bp) |
||
|
Net interest margin |
2.79% |
2.59% |
2.33% |
2.30% |
2.34% |
(45bp) |
4bp |
||
|
Cost:income ratio |
63.1% |
60.0% |
75.4% |
80.6% |
78.4% |
(1,526bp) |
224bp |
||
|
2008 |
2009 |
30 Sept 2009 vs. |
|||||||
|
30 Sept |
31 Dec |
31 Mar |
30 June |
30 Sept |
30 Sept 2008 |
30 June 2009 |
|||
|
£bn |
£bn |
£bn |
£bn |
£bn |
|||||
|
Capital and balance sheet |
|||||||||
|
Total assets |
77.9 |
87.5 |
94.9 |
75.6 |
76.9 |
(1%) |
2% |
||
|
Loans and advances to customers (gross): |
|||||||||
|
- residential mortgages |
8.7 |
9.5 |
9.2 |
7.3 |
6.9 |
(21%) |
(5%) |
||
|
- home equity |
15.2 |
18.7 |
18.8 |
15.9 |
16.0 |
5% |
1% |
||
|
- corporate and commercial |
19.4 |
23.7 |
24.2 |
20.5 |
20.5 |
6% |
- |
||
|
- other consumer |
8.0 |
9.8 |
9.8 |
8.3 |
7.8 |
(2%) |
(6%) |
||
|
Customer deposits |
55.6 |
64.4 |
67.9 |
60.2 |
62.1 |
12% |
3% |
||
|
Risk elements in lending |
|||||||||
|
- retail |
0.2 |
0.2 |
0.3 |
0.3 |
0.3 |
50% |
- |
||
|
- commercial |
- |
0.2 |
0.1 |
0.1 |
0.2 |
- |
100% |
||
|
Loan:deposit ratio (excluding repos) |
92.8% |
96.6% |
91.5% |
86.7% |
82.6% |
(1,016bp) |
(410bp) |
||
|
Risk-weighted assets |
51.4 |
63.9 |
64.3 |
55.6 |
62.8 |
22% |
13% |
||
|
Spot exchange rate - US$/£ |
1.783 |
1.460 |
1.433 |
1.644 |
1.599 |
||||
|
Note: |
|
|
(1) |
Return on equity is based on divisional operating profit after tax, divided by divisional notional equity (based on 7% of divisional risk-weighted assets, adjusted for capital deductions). |
Appendix 2 Analysis by quarter
US Retail and Commercial (US Dollar) (continued)
|
2008 |
2009 |
Q3 2009 vs. |
|||||||
|
Q3 |
Q4 |
Q1 |
Q2 |
Q3 |
Q3 2008 |
Q2 2009 |
|||
|
Income statement |
$m |
$m |
$m |
$m |
$m |
||||
|
Net interest income |
834 |
837 |
711 |
696 |
680 |
(18%) |
(2%) |
||
|
Net fees and commissions |
325 |
294 |
284 |
324 |
266 |
(18%) |
(18%) |
||
|
Other non-interest income |
52 |
142 |
75 |
69 |
104 |
100% |
51% |
||
|
Non-interest income |
377 |
436 |
359 |
393 |
370 |
(2%) |
(6%) |
||
|
Total income |
1,211 |
1,273 |
1,070 |
1,089 |
1,050 |
(13%) |
(4%) |
||
|
Direct expenses |
|||||||||
|
- staff |
(302) |
(278) |
(313) |
(287) |
(289) |
(4%) |
1% |
||
|
- other |
(172) |
(201) |
(206) |
(289) |
(219) |
27% |
(24%) |
||
|
Indirect expenses |
(292) |
(277) |
(288) |
(301) |
(313) |
7% |
4% |
||
|
(766) |
(756) |
(807) |
(877) |
(821) |
7% |
(6%) |
|||
|
Operating profit before impairment losses |
445 |
517 |
263 |
212 |
229 |
(49%) |
8% |
||
|
Impairment losses |
(258) |
(304) |
(320) |
(231) |
(296) |
15% |
28% |
||
|
Operating profit/(loss) |
187 |
213 |
(57) |
(19) |
(67) |
(136%) |
- |
||
|
Analysis of income by product: |
|||||||||
|
Mortgages and home equity |
166 |
183 |
204 |
203 |
186 |
12% |
(8%) |
||
|
Personal lending and cards |
164 |
143 |
154 |
174 |
190 |
16% |
9% |
||
|
Retail deposits |
483 |
451 |
332 |
315 |
329 |
(32%) |
4% |
||
|
Commercial lending |
186 |
211 |
202 |
217 |
210 |
13% |
(3%) |
||
|
Commercial deposits |
185 |
179 |
150 |
138 |
160 |
(14%) |
16% |
||
|
Other |
27 |
106 |
28 |
42 |
(25) |
(193%) |
(160%) |
||
|
Total income |
1,211 |
1,273 |
1,070 |
1,089 |
1,050 |
(13%) |
(4%) |
||
|
Analysis of impairment by sector: |
|||||||||
|
Residential mortgages |
30 |
22 |
33 |
19 |
47 |
55% |
145% |
||
|
Home equity |
37 |
38 |
42 |
65 |
131 |
- |
102% |
||
|
Corporate & commercial |
106 |
151 |
154 |
99 |
107 |
1% |
9% |
||
|
Other |
85 |
93 |
91 |
48 |
11 |
(87%) |
(78%) |
||
|
Total impairment |
258 |
304 |
320 |
231 |
296 |
15% |
28% |
||
|
Loan impairment charge as % of gross customer loans and advances (excluding reverse repurchase agreements) by sector: |
|||||||||
|
Residential mortgages |
0.77% |
0.63% |
1.00% |
0.63% |
1.69% |
92bp |
106bp |
||
|
Home equity |
0.55% |
0.56% |
0.62% |
1.00% |
2.05% |
150bp |
105bp |
||
|
Corporate & commercial |
1.23% |
1.74% |
1.78% |
1.18% |
1.31% |
9bp |
14bp |
||
|
Other |
2.36% |
2.60% |
2.58% |
1.41% |
0.34% |
(202bp) |
(107bp) |
||
|
1.13% |
1.35% |
1.44% |
1.08% |
1.45% |
32bp |
37bp |
|||
Appendix 2 Analysis by quarter
US Retail and Commercial (US Dollar) (continued)
|
2008 |
2009 |
Q3 2009 vs. |
|||||||
|
Key metrics |
Q3 |
Q4 |
Q1 |
Q2 |
Q3 |
Q3 2008 |
Q2 2009 |
||
|
Performance ratios |
|||||||||
|
Return on equity (1) |
7.6% |
8.5% |
(2.3%) |
(0.8%) |
(2.5%) |
(1,010bp) |
(170bp) |
||
|
Net interest margin |
2.80% |
2.70% |
2.33% |
2.32% |
2.37% |
(43bp) |
5bp |
||
|
Cost:income ratio |
63.2% |
59.4% |
75.4% |
80.5% |
78.2% |
(1,497bp) |
231bp |
||
|
2008 |
2009 |
30 Sept 2009 vs. |
|||||||
|
30 Sept |
31 Dec |
31 Mar |
30 June |
30 Sept |
30 Sept 2008 |
30 June 2009 |
|||
|
$bn |
$bn |
$bn |
$bn |
$bn |
|||||
|
Capital and balance sheet |
|||||||||
|
Total assets |
138.9 |
127.8 |
136.0 |
124.4 |
122.9 |
(12%) |
(1%) |
||
|
Loans and advances to customers (gross): |
|||||||||
|
- residential mortgages |
15.5 |
13.9 |
13.2 |
12.0 |
11.0 |
(29%) |
(8%) |
||
|
- home equity |
27.0 |
27.2 |
26.9 |
26.1 |
25.6 |
(5%) |
(2%) |
||
|
- corporate and commercial |
34.6 |
34.7 |
34.7 |
33.6 |
32.7 |
(5%) |
(3%) |
||
|
- other consumer |
14.5 |
14.3 |
14.1 |
13.7 |
12.5 |
(14%) |
(9%) |
||
|
Customer deposits |
99.2 |
94.0 |
97.4 |
99.0 |
99.3 |
- |
- |
||
|
Risk elements in lending |
|||||||||
|
- retail |
0.3 |
0.3 |
0.4 |
0.4 |
0.5 |
67% |
25% |
||
|
- commercial |
0.1 |
0.2 |
0.2 |
0.3 |
0.3 |
- |
- |
||
|
Loan:deposit ratio (excluding repos) |
92.8% |
96.6% |
91.5% |
86.7% |
82.6% |
(1,016bp) |
(410bp) |
||
|
Risk-weighted assets |
91.7 |
93.2 |
92.1 |
91.3 |
100.4 |
9% |
10% |
||
|
Note: |
|
|
(1) |
Return on equity is based on divisional operating profit after tax, divided by divisional notional equity (based on 7% of divisional risk-weighted assets, adjusted for capital deductions). |
Appendix 2 Analysis by quarter
RBS Insurance
|
2008 |
2009 |
Q3 2009 vs. |
|||||||
|
Q3 |
Q4 |
Q1 |
Q2 |
Q3 |
Q3 2008 |
Q2 2009 |
|||
|
Income statement |
£m |
£m |
£m |
£m |
£m |
||||
|
Earned premiums |
1,128 |
1,121 |
1,106 |
1,119 |
1,145 |
2% |
2% |
||
|
Reinsurers' share |
(51) |
(48) |
(45) |
(40) |
(43) |
(16%) |
8% |
||
|
Insurance premium income |
1,077 |
1,073 |
1,061 |
1,079 |
1,102 |
2% |
2% |
||
|
Net fees and commissions |
(102) |
(93) |
(92) |
(95) |
(95) |
(7%) |
- |
||
|
Other income |
107 |
146 |
108 |
104 |
112 |
5% |
8% |
||
|
Total income |
1,082 |
1,126 |
1,077 |
1,088 |
1,119 |
3% |
3% |
||
|
Direct expenses |
|||||||||
|
- staff |
(64) |
(77) |
(70) |
(69) |
(67) |
5% |
(3%) |
||
|
- other |
(44) |
(54) |
(67) |
(54) |
(47) |
7% |
(13%) |
||
|
Indirect expenses |
(65) |
(72) |
(66) |
(65) |
(64) |
(2%) |
(2%) |
||
|
(173) |
(203) |
(203) |
(188) |
(178) |
3% |
(5%) |
|||
|
Gross claims |
(777) |
(788) |
(798) |
(776) |
(941) |
21% |
21% |
||
|
Reinsurers' share |
18 |
41 |
5 |
18 |
13 |
(28%) |
(28%) |
||
|
Net claims |
(759) |
(747) |
(793) |
(758) |
(928) |
22% |
22% |
||
|
Operating profit before impairment losses |
150 |
176 |
81 |
142 |
13 |
(91%) |
(91%) |
||
|
Impairment losses |
- |
(42) |
(5) |
(1) |
(2) |
- |
100% |
||
|
Operating profit |
150 |
134 |
76 |
141 |
11 |
(93%) |
(92%) |
||
|
Analysis of income by product: |
|||||||||
|
Motor own-brands |
492 |
491 |
477 |
495 |
517 |
5% |
4% |
||
|
Household and Life own-brands |
200 |
206 |
204 |
210 |
214 |
7% |
2% |
||
|
Motor partnerships and broker |
167 |
166 |
145 |
145 |
141 |
(16%) |
(3%) |
||
|
Household and Life, partnerships and broker |
88 |
85 |
83 |
81 |
78 |
(11%) |
(4%) |
||
|
Other (International, commercial and central) |
135 |
178 |
168 |
157 |
169 |
25% |
8% |
||
|
Total income |
1,082 |
1,126 |
1,077 |
1,088 |
1,119 |
3% |
3% |
||
|
In-force policies (thousands) |
|||||||||
|
- Own-brand motor |
4,434 |
4,492 |
4,601 |
4,789 |
4,894 |
10% |
2% |
||
|
- Own-brand non-motor (home, rescue, pet, HR24) |
5,468 |
5,560 |
5,643 |
5,890 |
6,150 |
12% |
4% |
||
|
- Partnerships & broker (motor, home, rescue, pet, HR24) |
6,052 |
5,898 |
5,750 |
5,609 |
5,371 |
(11%) |
(4%) |
||
|
- Other (international, commercial and central) |
1,122 |
1,206 |
1,211 |
1,210 |
1,212 |
8% |
- |
||
|
General insurance reserves - total (£m) |
6,661 |
6,672 |
6,630 |
6,601 |
6,839 |
3% |
4% |
||
Appendix 2 Analysis by quarter
RBS Insurance (continued)
|
2008 |
2009 |
Q3 2009 vs. |
|||||||
|
Q3 |
Q4 |
Q1 |
Q2 |
Q3 |
Q3 2008 |
Q2 2009 |
|||
|
Key business metrics |
|||||||||
|
Return on equity (1) |
18.8% |
16.8% |
9.5% |
17.7% |
1.2% |
(1,760bp) |
(1,650bp) |
||
|
Cost:income ratio |
16.0% |
18.0% |
18.9% |
17.3% |
15.9% |
8bp |
137bp |
||
|
Adjusted cost:income ratio (2) |
53.6% |
53.6% |
71.5% |
57.0% |
93.2% |
3,960bp |
3,620bp |
||
|
Gross written premiums (£m) |
1,159 |
1,002 |
1,123 |
1,147 |
1,186 |
2% |
3% |
||
|
Notes: |
|
|
(1) |
Return on equity is based on divisional operating profit after tax, divided by divisional notional equity (based on regulatory capital). |
|
(2) |
Adjusted cost:income ratio is based on total income and operating expenses after netting insurance claims against total income. |
Appendix 2 Analysis by quarter
Central items
|
2008 |
2009 |
Q3 2009 vs. |
|||||||
|
Q3 |
Q4 |
Q1 |
Q2 |
Q3 |
Q3 2008 |
Q2 2009 |
|||
|
£m |
£m |
£m |
£m |
£m |
|||||
|
Fair value of own debt |
633 |
14 |
384 |
(478) |
(163) |
(126%) |
66% |
||
|
Other |
173 |
(501) |
105 |
166 |
283 |
64% |
70% |
||
|
Central items not allocated |
806 |
(487) |
489 |
(312) |
120 |
(85%) |
138% |
||
Appendix 2 Analysis by quarter
Non-Core
|
2008 |
2009 |
Q3 2009 vs. |
|||||||
|
Q3 |
Q4 |
Q1 |
Q2 |
Q3 |
Q3 2008 |
Q2 2009 |
|||
|
Income statement |
£m |
£m |
£m |
£m |
£m |
||||
|
Net interest income from banking activities |
479 |
765 |
395 |
274 |
287 |
(40%) |
5% |
||
|
Net fees and commissions receivable |
260 |
166 |
178 |
82 |
132 |
(49%) |
61% |
||
|
Income/(loss) from trading activities |
68 |
(3,320) |
(2,865) |
(1,390) |
(735) |
- |
(47%) |
||
|
Other operating income (net of related funding costs) |
(3) |
(194) |
25 |
(56) |
83 |
- |
- |
||
|
Insurance net premium income |
252 |
249 |
244 |
196 |
173 |
(31%) |
(12%) |
||
|
Non-interest income |
577 |
(3,099) |
(2,418) |
(1,168) |
(347) |
(160%) |
(70%) |
||
|
Total income |
1,056 |
(2,334) |
(2,023) |
(894) |
(60) |
(106%) |
(93%) |
||
|
Direct expenses |
|||||||||
|
- staff |
(141) |
(110) |
(188) |
(71) |
(111) |
(21%) |
56% |
||
|
- other |
(257) |
(321) |
(230) |
(220) |
(223) |
(13%) |
1% |
||
|
Indirect expenses |
(131) |
(152) |
(142) |
(137) |
(132) |
1% |
(4%) |
||
|
(529) |
(583) |
(560) |
(428) |
(466) |
(12%) |
9% |
|||
|
Operating profit/(loss) before other operating charges and impairment losses |
527 |
(2,917) |
(2,583) |
(1,322) |
(526) |
- |
(60%) |
||
|
Insurance net claims |
(170) |
(192) |
(177) |
(137) |
(126) |
(26%) |
(8%) |
||
|
Impairment losses |
(768) |
(3,358) |
(1,828) |
(3,516) |
(2,066) |
169% |
(41%) |
||
|
Operating loss |
(411) |
(6,467) |
(4,588) |
(4,975) |
(2,718) |
- |
(45%) |
||
|
Key metrics |
|||||||||
|
Performance ratios |
|||||||||
|
Cost:income ratio |
50.1% |
(25.0%) |
(27.7%) |
(47.9%) |
(776.7%) |
- |
- |
||
|
Net interest margin |
0.38% |
1.36% |
0.61% |
0.45% |
0.55% |
17bp |
10bp |
||
|
2008 |
2009 |
30 Sept 2009 vs. |
|||||||
|
30 Sept |
31 Dec |
31 Mar |
30 June |
30 Sept |
30 Sept 2008 |
30 June 2009 |
|||
|
£bn |
£bn |
£bn |
£bn |
£bn |
|||||
|
Capital and balance sheet |
|||||||||
|
Total third party assets (including derivatives) |
293.8 |
325.1 |
297.1 |
231.9 |
220.2 |
(25%) |
(5%) |
||
|
Loans and advances to customers (gross): |
172.1 |
190.6 |
183.1 |
163.6 |
158.7 |
(8%) |
(3%) |
||
|
Customer deposits |
24.7 |
26.6 |
21.9 |
13.4 |
14.7 |
(40%) |
10% |
||
|
Risk elements in lending |
4.8 |
11.2 |
14.7 |
20.5 |
23.3 |
- |
14% |
||
|
Loan:deposit ratio |
691.2% |
718.1% |
844.6% |
1,282.2% |
1,078.5% |
56% |
(16%) |
||
|
Risk-weighted assets |
130.7 |
160.3 |
163.7 |
164.1 |
190.3 |
46% |
16% |
||
Appendix 2 Analysis by quarter
Non-Core (continued)
|
2008 |
2009 |
Q3 2009 vs. |
|||||||
|
Q3 |
Q4 |
Q1 |
Q2 |
Q3 |
Q3 2008 |
Q2 2009 |
|||
|
£m |
£m |
£m |
£m |
£m |
|||||
|
Analysis of income: |
|||||||||
|
Banking & Portfolio |
739 |
669 |
90 |
(772) |
(92) |
(112%) |
(88%) |
||
|
Retail, Commercial & Countries |
773 |
689 |
662 |
570 |
537 |
(31%) |
(6%) |
||
|
Trading |
(456) |
(3,692) |
(2,775) |
(692) |
(505) |
11% |
(27%) |
||
|
Total income |
1,056 |
(2,334) |
(2,023) |
(894) |
(60) |
(106%) |
(93%) |
||
|
Impairment losses: |
|||||||||
|
Banking & Portfolio |
252 |
1,004 |
823 |
1,619 |
878 |
- |
(46%) |
||
|
Retail, Commercial & Countries |
360 |
945 |
720 |
1,638 |
1,234 |
- |
(25%) |
||
|
Trading |
156 |
1,409 |
285 |
259 |
(46) |
(129%) |
(118%) |
||
|
Total impairment |
768 |
3,358 |
1,828 |
3,516 |
2,066 |
169% |
(41%) |
||
|
Loan impairment charge as % of gross customer loans and advances: |
|||||||||
|
Banking & Portfolio |
(0.33%) |
6.98% |
3.37% |
7.16% |
4.04% |
437bp |
(312bp) |
||
|
Retail, Commercial & Countries |
1.95% |
4.70% |
3.66% |
9.44% |
7.22% |
527bp |
(222bp) |
||
|
Trading |
7.52% |
12.91% |
(124.58%) |
42.09% |
31.73% |
2,421bp |
(1,036bp) |
||
|
1.03% |
6.12% |
2.82% |
8.39% |
5.53% |
450bp |
(286bp) |
|||
|
£bn |
£bn |
£bn |
£bn |
£bn |
|||||
|
Gross customer loans and advances (1): |
|||||||||
|
Banking & Portfolio |
91.1 |
106.7 |
103.5 |
93.1 |
88.4 |
(3%) |
(5%) |
||
|
Retail, Commercial & Countries |
73.5 |
79.9 |
78.7 |
69.4 |
68.4 |
(7%) |
(1%) |
||
|
Trading |
7.5 |
4.0 |
0.9 |
1.1 |
1.9 |
(75%) |
73% |
||
|
172.1 |
190.6 |
183.1 |
163.6 |
158.7 |
(8%) |
(3%) |
|||
|
Note: |
|||||||||
|
(1) Including disposal groups. |
|||||||||
|
Risk-weighted assets: |
|||||||||
|
Banking & Portfolio |
42.9 |
46.4 |
71.6 |
61.8 |
73.1 |
70% |
18% |
||
|
Retail, Commercial & Countries |
53.8 |
49.9 |
51.1 |
48.3 |
45.9 |
(15%) |
(5%) |
||
|
Trading |
34.0 |
64.0 |
41.0 |
54.0 |
71.3 |
110% |
32% |
||
|
130.7 |
160.3 |
163.7 |
164.1 |
190.3 |
46% |
16% |
|||
Related Shares:
RBS.L