RBS 2007 Annual Report Download - page 36

RBS Group • Annual Report and Accounts 2007
34
Business review continued
Business review
Financial highlights
2007 2006 2005
for the year ended 31 December £m £m £m
Total income (1) 31,115 28,002 25,569
Profit before tax, purchased intangibles amortisation, integration costs and
net gain on sale of strategic investments and subsidiaries 10,282 9,414 8,251
Profit before tax 9,900 9,186 7,936
Profit attributable to ordinary shareholders 7,303 6,202 5,392
Cost:income ratio (2) 43.9% 42.1% 42.4%
Basic earnings per share (pence) (3) 76.4 64.9 56.5
Adjusted earnings per share (pence) (3, 4) 78.7 66.7 58.6
Adjusted after-tax return on equity (5) 19.9% 19.0% 18.2%
2007 2006 2005
at 31 December £m £m £m
Total assets 1,900,519 871,432 776,827
Loans and advances to customers 829,250 466,893 417,226
Deposits 994,998 516,365 453,274
Owners’ equity 53,038 40,227 35,435
Risk asset ratio – tier 1 7.3% 7.5% 7.6%
– total 11.2% 11.7% 11.7%
Notes:
(1) Total income in 2005 excludes gains on sale of strategic investments and subsidiaries. In the statutory consolidated income statement on page 120, these items are included in
total income.
(2) Cost:income ratio represents operating expenses excluding purchased intangibles amortisation, integration costs and loss on sale of subsidiaries, expressed as a percentage of
total income excluding gain on sale of strategic investments and after netting operating lease depreciation against rental income.
(3) Prior year per share data have been restated to reflect the bonus issue of ordinary shares in May 2007.
(4) Adjusted earnings per share is based on earnings adjusted for purchased intangibles amortisation, integration costs and net gain on sale of strategic investments and
subsidiaries.
(5) Adjusted after-tax return on equity is based on profit attributable to ordinary shareholders adjusted for purchased intangibles amortisation, integration costs and net gain on sale
of strategic investments and subsidiaries, and average ordinary equity shareholders’ funds.
Overview of results
As discussed on page 28, the results of ABN AMRO are fully consolidated in the Group's financial statements. Consequently,
the statutory results of the RBS for the year ended 31 December 2007 include the results of ABN AMRO for the period from
17 October 2007 to 31 December 2007. The interests of Fortis and Santander are included in minority interests.