28th Feb 2008 07:02
Royal Bank of Scotland Group PLC28 February 2008 Pro forma financial information for the Group under the revised divisional structure THE ROYAL BANK OF SCOTLAND GROUP plc Set out below are summarised pro forma unaudited results for the Group under therevised divisional structure. These show the underlying performance of the Groupincluding the full year results of the ABN AMRO businesses acquired by RBS. These figures are provisional and may be refined in due course. However, nomaterial adjustments are anticipated. GROUP 2007 2006 £m £m Total income 33,490 31,737 Operating expenses 16,553 15,957 Insurance net claims 4,528 4,458 _______ _______ Operating profit before impairment losses 12,409 11,322 Impairment losses 2,095 2,000 _______ _______Group operating profit * 10,314 9,322 _______ _______ BALANCE SHEET 2007AT 31 DECEMBER 2007 £bn Loans and advances to customers - gross 707.2Customer Deposits 559.0Risk Weighted Assets 490.0 DIVISIONAL ANALYSIS 2007 2006 £m £m Global Banking & Markets 4,916 4,365Global Transaction Services 1,632 1,561UK Retail & Commercial Banking 6,250 5,722US Retail & Commercial Banking 1,557 1,821Europe and Middle East Retail & Commercial Banking 760 662Asia Retail & Commercial Banking 209 119RBS Insurance 902 964Global Manufacturing (4,234) (4,164)Central items (1,678) (1,728) _______ _______Group operating profit * 10,314 9,322 _______ _______ * Group operating profit Excludes •RBS unusual items - credit market write-downs and goodwill payments, offset by the gains on sale of Southern Water and certain other assets •ABN AMRO pre and post acquisition credit market write-downs and the impact of the LaSalle sale •RBS share of ABN AMRO's shared assets •amortisation of purchased intangible assets and integration costs; and Includes •the cost of funding the ABN AMRO acquisition within Central Items. Whilst part of the acquisition consideration was funded by the issue of preference shares, these pro forma results assume that the cash element of the consideration was debt funded. THE ROYAL BANK OF SCOTLAND GROUP plc 2007 2006 Global Banking & Markets £m £m Rates, Currencies & Commodities 3,280 2,050Equities 1,221 1,036Credit Markets 2,667 2,869Asset & Portfolio Management 3,722 3,936 _______ _______Total income 10,890 9,891Direct expenses 5,850 5,476 _______ _______Contribution before impairment losses 5,040 4,415Impairment losses 124 50 _______ _______Contribution 4,916 4,365 _______ _______ Global Banking & Markets comprises the Global Banking and Markets businesses ofRBS and ABN AMRO except for transaction banking. 2007 2006 Global Transaction Services £m £m Net interest income 839 759Non-interest income 1,348 1,318 _______ _______Total income 2,187 2,077Direct expenses 543 519 _______ _______Contribution before impairment losses 1,644 1,558Impairment losses 12 (3) _______ _______Contribution 1,632 1,561 _______ _______ Global Transaction Services comprises RBS and ABN AMRO transaction banking, UKand US corporate money transmission, UK and US merchant acquiring and UKcommercial cards. THE ROYAL BANK OF SCOTLAND GROUP plc 2007 2006 UK Retail & Commercial Banking £m £m Net interest income 6,677 6,406Non-interest income 4,432 4,170 _______ _______Total income 11,109 10,576Direct expenses 2,973 2,868Insurance net claims 518 488 _______ _______Contribution before impairment losses 7,618 7,220Impairment losses 1,368 1,498 _______ _______Contribution 6,250 5,722 _______ _______ UK Retail & Commercial Banking comprises UK Retail Banking and UK CommercialBanking which are set out below. 2007 2006 UK Retail Banking £m £m Net interest income 4,680 4,544Non-interest income 3,423 3,276 _______ _______Total income 8,103 7,820Direct expenses 2,068 2,027Insurance net claims 518 488 _______ _______Contribution before impairment losses 5,517 5,305Impairment losses 1,188 1,309 _______ _______Contribution 4,329 3,996 _______ _______ UK Retail Banking comprises Retail Markets except for merchant acquiring,commercial cards and International Wealth Management. 2007 2006 UK Commercial Banking £m £m Net interest income 1,997 1,862Non-interest income 1,009 894 _______ _______Total income 3,006 2,756Direct expenses 905 841 _______ _______Contribution before impairment losses 2,101 1,915Impairment losses 180 189 _______ _______Contribution 1,921 1,726 _______ _______ UK Commercial Banking comprises UK Corporate Banking except for moneytransmission. THE ROYAL BANK OF SCOTLAND GROUP plc 2007 2006 US Retail & Commercial Banking $m $m Net interest income 3,873 3,765Non-interest income 1,870 1,905 _______ _______Total income 5,743 5,670Direct expenses 1,949 1,975 _______ _______Contribution before impairment losses 3,794 3,695Impairment losses 682 333 _______ _______Contribution 3,112 3,362 _______ _______ US Retail & Commercial Banking comprises Citizens except for corporate moneytransmission, merchant acquiring and its manufacturing activities. 2007 2006 Europe and Middle East Retail & Commercial Banking £m £m Net interest income 1,053 925Non-interest income 363 287 _______ _______Total income 1,416 1,212Direct expenses 521 423 _______ _______Contribution before impairment losses 895 789Impairment losses 135 127 _______ _______Contribution 760 662 _______ _______ Europe and Middle East Retail & Commercial Banking comprises Ulster Bank and ABNAMRO retail and commercial businesses in Europe and Middle East. 2007 2006 Asia Retail & Commercial Banking £m £m Net interest income 285 226Non-interest income 398 305 _______ _______Total income 683 531Direct expenses 356 272 _______ _______Contribution before impairment losses 327 259Impairment losses 118 140 _______ _______Contribution 209 119 _______ _______ Asia Retail & Commercial Banking comprises the International Wealth Managementactivities of RBS and the retail and commercial businesses of ABN AMRO in Asia. Global Manufacturing comprises RBS and ABN AMRO Manufacturing activities. Thescope of Global Manufacturing has been expanded to include US Retail &Commercial Banking's manufacturing activities and UK Cards operations. Central Items comprises RBS group and corporate functions, the RBS share of ABNAMRO's head office costs and the pro forma funding costs associated with the ABNAMRO acquisition. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
RBS.L