RBS 2004 Annual Report Download - page 76

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74
Operating and financial review
Operating and financial review continued
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.
2004 over 2003 2003 over 2002
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 (21) 7 (14) 15 9 24
Overseas –– — — (5) — (5)
Loans and advances to banks
UK (7) 75 68 11 (84) (73)
Overseas (8) 60 52 (8) (84) (92)
Loans and advances to customers
UK 967 666 1,633 820 (442) 378
Overseas 1,133 (172) 961 467 (190) 277
Debt securities
UK (148) 150 2 196 (117) 79
Overseas 9 (13) (4) (13) (138) (151)
Total interest receivable of the banking business
UK 791 898 1,689 1,042 (634) 408
Overseas 1,134 (125) 1,009 441 (412) 29
1,925 773 2,698 1,483 (1,046) 437
Interest-bearing liabilities
Deposits by banks
UK (190) (167) (357) (179) 20 (159)
Overseas (166) (14) (180) (12) 9 (3)
Customer accounts: demand deposits
UK (51) (490) (541) (101) 135 34
Overseas (22) (55) (77) (10) 39 29
Customer accounts: savings deposits
UK (153) (17) (170) (72) 32 (40)
Overseas (30) 38 8 (78) 47 (31)
Customer accounts: other time deposits
UK (51) (183) (234) (128) 192 64
Overseas (95) (10) (105) (10) 98 88
Debt securities in issue
UK (232) (83) (315) (205) 256 51
Overseas (39) (71) (110) (20) 110 90
Loan capital
UK (96) (35) (131) (96) 202 106
Overseas (7) 8 1 1— 1
Internal funding of trading business
UK 362 61 423 38 (250) (212)
Overseas (17) 14 (3) 6 (9) (3)
Total interest payable of the banking business
UK (411) (914) (1,325) (743) 587 (156)
Overseas (376) (90) (466) (123) 294 171
(787) (1,004) (1,791) (866) 881 15
Movement in net interest income
UK 380 (16) 364 299 (47) 252
Overseas 758 (215) 543 318 (118) 200
1,138 (231) 907 617 (165) 452