RBS 2004 Annual Report Download - page 69

section
01
Operating and
financial review
67
Annual Report and Accounts 2004
Operating and financial review
Summary consolidated profit and loss account for the year ended 31 December 2004
The profit and loss account set out below shows goodwill amortisation and integration costs separately. In the statutory profit
and loss account on page 143, these items are included in the captions prescribed by the Companies Act.
2004 2003* 2002*
£m £m £m
Net interest income 9,208 8,301 7,849
Dividend income 79 58 58
Fees and commissions receivable 6,634 5,693 5,249
Fees and commissions payable (1,954) (1,337) (965)
Dealing profits 1,988 1,793 1,462
Other operating income 1,855 1,650 1,410
8,602 7,857 7,214
General insurance net premium income 4,944 3,123 1,953
Non-interest income 13,546 10,980 9,167
TOTAL INCOME 22,754 19,281 17,016
Staff costs 5,231 4,528 4,054
Other operating expenses 4,431 3,996 3,727
OPERATING EXPENSES 9,662 8,524 7,781
Profit before other operating charges 13,092 10,757 9,235
General insurance net claims 3,480 2,195 1,350
Operating profit before provisions 9,612 8,562 7,885
Provisions for bad and doubtful debts 1,428 1,461 1,286
Amounts written off fixed asset investments 83 33 59
PROFIT BEFORE TAX, GOODWILL AMORTISATION AND INTEGRATION COSTS 8,101 7,068 6,540
Goodwill amortisation 915 763 731
Integration costs 269 229 957
PROFIT BEFORE TAX 6,917 6,076 4,852
Tax 2,155 1,888 1,582
Profit after tax 4,762 4,188 3,270
Minority interests (including non-equity) 250 210 133
Preference dividends – non-equity 256 261 305
4,256 3,717 2,832
Additional Value Shares dividend – non-equity — 1,463 798
Profit attributable to ordinary shareholders 4,256 2,254 2,034
Basic earnings per ordinary share 138.0p 76.9p 70.6p
Additional Value Shares dividend — 49.9p 27.7p
138.0p 126.8p 98.3p
Goodwill amortisation 28.7p 25.0p 24.2p
Integration costs 5.8p 5.4p 23.8p
Adjusted earnings per ordinary share 172.5p 157.2p 146.3p
* restated (see page 139)