RBS 2003 Annual Report Download - page 72

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Operating and financial review continued
70
Operating and financial review
Analysis of change in net interest income – volume and rate analysis
Volume and rate variances have been calculated based on movements in average balances over the period and changes in interest
rates on average interest-earning assets and average interest-bearing liabilities. Changes due to a combination of volume and rate
are allocated pro rata to volume and rate movements.
2003 over 2002 2002 over 2001
Increase/(decrease) due to changes in: Increase/(decrease) due to changes in:
Average Average Net Average Average Net
volume rate change volume rate change
£m £m £m £m £m £m
Interest-earning assets
Treasury and other eligible bills
UK 15 9 24 20 (7) 13
Overseas (5) — (5) 2 (4) (2)
Loans and advances to banks
UK 11 (84) (73) (199) (103) (302)
Overseas (8) (84) (92) 108 (225) (117)
Loans and advances to customers
UK 820 (442) 378 1,105 (1,548) (443)
Overseas 467 (190) 277 423 (441) (18)
Debt securities
UK 196 (117) 79 69 (325) (256)
Overseas (13) (138) (151) 348 (83) 265
Total interest receivable of the banking business
UK 1,042 (634) 408 995 (1,983) (988)
Overseas 441 (412) 29 881 (753) 128
1,483 (1,046) 437 1,876 (2,736) (860)
Interest-bearing liabilities
Deposits by banks
UK (179) 20 (159) (101) 317 216
Overseas (12) 9 (3) (12) 179 167
Customer accounts: demand deposits
UK (101) 135 34 (119) 633 514
Overseas (10) 39 29 (36) 91 55
Customer accounts: savings deposits
UK (72) 32 (40) (4) 135 131
Overseas (78) 47 (31) (2) 208 206
Customer accounts: other time deposits
UK (128) 192 64 (119) 544 425
Overseas (10) 98 88 (257) 133 (124)
Debt securities in issue
UK (205) 256 51 (184) 250 66
Overseas (20) 110 90 (13) 188 175
Loan capital
UK (96) 202 106 (130) 147 17
Overseas 1 — 1 — (3) (3)
Internal funding of trading business
UK 38 (250) (212) 213 (158) 55
Overseas 6 (9) (3) (10) (27) (37)
Total interest payable of the banking business
UK (743) 587 (156) (444) 1,868 1,424
Overseas (123) 294 171 (330) 769 439
(866) 881 15 (774) 2,637 1,863
Movement in net interest income
UK 299 (47) 252 551 (115) 436
Overseas 318 (118) 200 551 16 567
617 (165) 452 1,102 (99) 1,003