Interim Results - Part 9 of 13

Quarter ended

30 June 2011

31 March 2011

30 June 2010

Managed 

Reallocation 

of one-off 

 items 

Statutory 

Managed 

Reallocation 

of one-off 

 items 

Statutory 

Managed 

Reallocation 

of one-off 

 items 

Statutory 

£m 

£m

£m 

£m 

£m

£m 

£m 

£m

£m 

Interest receivable

5,410 

(6)

5,404 

5,402 

(1)

5,401 

5,884 

4 

5,888 

Interest payable

(2,177)

- 

(2,177)

(2,100)

- 

(2,100)

(2,200)

(12)

(2,212)

Net interest income

3,233 

(6)

3,227 

3,302 

(1)

3,301 

3,684 

(8)

3,676 

Fees and commissions receivable

1,700 

- 

1,700 

1,642 

- 

1,642 

2,046 

7 

2,053 

Fees and commissions payable

(323)

- 

(323)

(260)

- 

(260)

(579)

- 

(579)

Income from trading activities

1,204 

(57)

1,147 

1,490 

(655)

835 

1,502 

608 

2,110 

Gain on redemption of own debt

- 

255 

255 

- 

- 

- 

- 

553 

553 

Other operating income (excluding insurance premium income)

863 

279 

1,142 

710 

(319)

391 

232 

114 

346 

Insurance net premium income

1,090 

- 

1,090 

1,149 

- 

1,149 

1,278 

- 

1,278 

Non-interest income

4,534 

477 

5,011 

4,731 

(974)

3,757 

4,479 

1,282 

5,761 

Total income

7,767 

471 

8,238 

8,033 

(975)

7,058 

8,163 

1,274 

9,437 

Staff costs

(2,099)

(111)

(2,210)

(2,320)

(79)

(2,399)

(2,178)

(187)

(2,365)

Premises and equipment

(563)

(39)

(602)

(556)

(15)

(571)

(516)

(31)

(547)

Other administrative expenses

(834)

(918)

(1,752)

(865)

(56)

(921)

(974)

(48)

(1,022)

Depreciation and amortisation

(396)

(57)

(453)

(380)

(44)

(424)

(435)

(84)

(519)

Operating expenses

(3,892)

(1,125)

(5,017)

(4,121)

(194)

(4,315)

(4,103)

(350)

(4,453)

Profit before other operating charges

3,875 

(654)

3,221 

3,912 

(1,169)

2,743 

4,060 

924 

4,984 

Insurance net claims

(793)

- 

(793)

(912)

- 

(912)

(1,323)

- 

(1,323)

Operating profit before impairment losses

3,082 

(654)

2,428 

3,000 

(1,169)

1,831 

2,737 

924 

3,661 

Impairment losses

(2,264)

(842)

(3,106)

(1,947)

- 

(1,947)

(2,487)

- 

(2,487)

Operating profit/(loss)

818 

(1,496)

(678)

1,053 

(1,169)

(116)

250 

924 

1,174 

Quarter ended

30 June 2011

31 March 2011

30 June 2010

Managed 

Reallocation 

of one-off 

 items 

Statutory 

Managed 

Reallocation 

of one-off 

 items 

Statutory 

Managed 

Reallocation 

of one-off 

 items 

Statutory 

£m 

£m

£m 

£m 

£m

£m 

£m 

£m

£m 

Operating profit/(loss)

818 

(1,496)

(678)

1,053 

(1,169)

(116)

250 

924 

1,174 

Fair value of own debt (1)

339 

(339)

- 

(480)

480 

- 

619 

(619)

- 

Asset Protection Scheme credit default swap - fair value changes (2)

(168)

168 

- 

(469)

469 

- 

500 

(500)

- 

Payment Protection Insurance costs

(850)

850 

- 

- 

- 

- 

- 

- 

- 

Sovereign debt impairment

(733)

733 

- 

- 

- 

- 

- 

- 

- 

Amortisation of purchased intangible assets

(56)

56 

- 

(44)

44 

- 

(85)

85 

- 

Integration and restructuring costs

(208)

208 

- 

(145)

145 

- 

(254)

254 

- 

Gain on redemption of own debt

255 

(255)

- 

- 

- 

- 

553 

(553)

- 

Strategic disposals

50 

(50)

- 

(23)

23 

- 

(411)

411 

- 

Bonus tax

(11)

11 

- 

(11)

11 

- 

(15)

15 

- 

RFS Holdings minority interest

(5)

5 

- 

3 

(3)

- 

17 

(17)

- 

Interest rate hedge adjustments on impaired available-for-sale

Greek government bonds

(109)

109 

- 

- 

- 

- 

- 

- 

- 

(Loss)/profit before tax

(678)

- 

(678)

(116)

- 

(116)

1,174 

- 

1,174 

Tax charge

(222)

- 

(222)

(423)

- 

(423)

(825)

- 

(825)

(Loss)/profit from continuing operations

(900)

- 

(900)

(539)

- 

(539)

349 

- 

349 

Profit/(loss) from discontinued operations, net of tax

21 

- 

21 

10 

- 

10 

(1,019)

- 

(1,019)

Loss for the period

(879)

- 

(879)

(529)

- 

(529)

(670)

- 

(670)

Non-controlling interests

(18)

- 

(18)

1 

- 

1 

946 

- 

946 

Preference share and other dividends

- 

- 

- 

- 

- 

- 

(19)

- 

(19)

(Loss)/profit attributable to ordinary and B shareholders

(897)

- 

(897)

(528)

- 

(528)

257 

- 

257 

(1)

Reallocation of £111 million (Q1 2011 - £186 million; Q2 2010 - £104 million) to income from trading activities and £228 million (Q1 2011 - £294 million; Q2 2010 - £515 million) to other operating income.

(2)

Reallocation to income from trading activities.

Half year ended

30 June 2011

30 June 2010

Managed 

Reallocation 

of one-off 

 items 

Statutory 

Managed 

Reallocation 

of one-off 

 items 

Statutory 

£m 

£m

£m 

£m 

£m

£m 

Interest receivable

10,812 

(7)

10,805 

11,580 

- 

11,580 

Interest payable

(4,277)

- 

(4,277)

(4,362)

- 

(4,362)

Net interest income

6,535 

(7)

6,528 

7,218 

- 

7,218 

Fees and commissions receivable

3,342 

- 

3,342 

4,097 

7 

4,104 

Fees and commissions payable

(583)

- 

(583)

(1,151)

- 

(1,151)

Income from trading activities

2,694 

(712)

1,982 

3,727 

149 

3,876 

Gain on redemption of own debt

- 

255 

255 

- 

553 

553 

Other operating income (excluding insurance premium income)

1,573 

(40)

1,533 

828 

(35)

793 

Insurance net premium income

2,239 

- 

2,239 

2,567 

- 

2,567 

Non-interest income

9,265 

(497)

8,768 

10,068 

674 

10,742 

Total income

15,800 

(504)

15,296 

17,286 

674 

17,960 

Staff costs

(4,419)

(190)

(4,609)

(4,731)

(323)

(5,054)

Premises and equipment

(1,119)

(54)

(1,173)

(1,044)

(38)

(1,082)

Other administrative expenses

(1,699)

(974)

(2,673)

(1,909)

(124)

(2,033)

Depreciation and amortisation

(776)

(101)

(877)

(849)

(152)

(1,001)

Operating expenses

(8,013)

(1,319)

(9,332)

(8,533)

(637)

(9,170)

Profit before other operating charges

7,787 

(1,823)

5,964 

8,753 

37 

8,790 

Insurance net claims

(1,705)

- 

(1,705)

(2,459)

- 

(2,459)

Operating profit before impairment losses

6,082 

(1,823)

4,259 

6,294 

37 

6,331 

Impairment losses

(4,211)

(842)

(5,053)

(5,162)

- 

(5,162)

Operating profit/(loss)

1,871 

(2,665)

(794)

1,132 

37 

1,169 

Half year ended

30 June 2011

30 June 2010

Managed 

Reallocation 

of one-off 

 items 

Statutory 

Managed 

Reallocation 

of one-off 

 items 

Statutory 

£m 

£m

£m 

£m 

£m

£m 

Operating profit/(loss)

1,871 

(2,665)

(794)

1,132 

37 

1,169 

Fair value of own debt (1)

(141)

141 

- 

450 

 (450)

- 

Asset Protection Scheme credit default swap - fair value changes (2)

(637)

637 

- 

- 

- 

- 

Payment Protection Insurance costs

(850)

850 

- 

- 

- 

- 

Sovereign debt impairment

(733)

733 

- 

- 

- 

- 

Amortisation of purchased intangible assets

(100)

100 

- 

 (150)

150 

- 

Integration and restructuring costs

(353)

353 

- 

 (422)

422 

- 

Gain on redemption of own debt

255 

(255)

- 

553 

(553)

- 

Strategic disposals

27 

(27)

- 

 (358)

358 

- 

Bonus tax

(22)

22 

- 

 (69)

69 

- 

RFS Holdings minority interest

(2)

2 

- 

33 

 (33)

- 

Interest rate hedge adjustments on impaired available-for-sale Greek government bonds

(109)

109 

- 

- 

- 

- 

(Loss)/profit before tax

(794)

- 

(794)

1,169 

- 

1,169 

Tax charge

(645)

- 

(645)

(932)

- 

(932)

(Loss)/profit from continuing operations

(1,439)

- 

(1,439)

237 

- 

237 

Profit/(loss) from discontinued operations, net of tax

31 

- 

31 

(706)

- 

(706)

Loss for the period

(1,408)

- 

(1,408)

(469)

- 

(469)

Non-controlling interests

(17)

- 

(17)

602 

- 

602 

Preference share and other dividends

- 

- 

- 

(124)

- 

(124)

(Loss)/profit attributable to ordinary and B shareholders

(1,425)

- 

(1,425)

9 

- 

9 

(1)

Reallocation of £75 million (H1 2010 - £145 million) to income from trading activities and £66 million (H1 2010 - £305 million) to other operating income.

(2)

Reallocation to income from trading activities.