RBS 2003 Annual Report Download - page 81

79
Operating and financial review
Annual Report and Accounts 2003
2002 compared with 2001
Contribution increased by 8% or £212 million to £3,019 million.
Total income was up 8% or £294 million to £4,193 million. The
increase in income reflected continued growth in customer
numbers. The number of personal current accounts increased
by 4% to 10.63 million. Retail Banking is the leading provider of
services to small businesses and has 1.10 million customers.
Net interest income rose by 8% or £218 million to £2,840
million, reflecting strong growth in customer loans and
deposits. Average loans to customers, excluding mortgages,
grew by 14% or £2.7 billion to £21.8 billion. Average mortgage
lending was up 10% or £2.7 billion to £29.8 billion. Average
customer deposits increased by 6% or £3.1 billion to £57.2 billion.
Non-interest income rose by 6% or £76 million to £1,353 million,
reflecting growth in packaged current accounts, transmission
income and higher volumes of general insurance products
sold through the Royal Bank and NatWest networks. Strong
sales performance was seen in Bancassurance with new
business up 30% although the sharp fall in equity markets
depressed Bancassurance income.
Direct expenses increased by 4% or £33 million to £961 million.
Staff costs were up £5 million, 1% to £707 million. Other costs
rose £28 million, 12% to £254 million partly due to increased
incidence of fraud losses.
Provisions increased by £49 million to £213 million, reflecting
recent growth in lending.