RBS 2003 Annual Report Download - page 68

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Operating and financial review continued
66
Operating and financial review
Balance sheet
Total assets were £412 billion at 31 December 2002, 12%
higher than total assets of £369 billion at 31 December 2001.
Of the total assets, £311 billion (76%) related to banking
business and £101 billion (24%) to trading business (31
December 2001: £285 billion (77%) banking business and £84
billion (23%) trading business).
Lending to customers excluding repurchase agreements and
stock borrowing (“reverse repos”) increased by 13%, £22
billion. Including reverse repos, loans and advances to customers
were up 17%. Customer deposits increased by 10%, from £199
billion at 31 December 2001 to £219 billion at 31 December
2002. Excluding repurchase agreements and stock lending
(“repos”), customer deposits grew by 7%, £13 billion.
Capital ratios at 31 December 2002 were 7.3% (tier 1) and 11.7%
(total), against 7.1% (tier 1) and 11.5% (total) at 31 December 2001.
Profitability
The adjusted after-tax return on ordinary equity was 17.6%
compared with 16.8% for 2001. This is based on profit attributable
to ordinary shareholders before integration costs, goodwill
amortisation and the AVS dividend, and average equity
shareholders’ funds.
Acquisitions
In May 2002, Lombard, the leasing arm of CBFM, completed
the acquisition of Dixon Motors PLC for a consideration of
£118 million.
In July 2002, Citizens announced the acquisition of Medford
Bancorp Inc., a Massachusetts savings bank for a cash
consideration of US$273 million and in September 2002
announced the acquisition of Pennsylvania-based commercial
bank, Commonwealth Bancorp, Inc for a cash consideration of
US$450 million. These acquisitions were completed in October
2002 and January 2003, respectively.