RBS 2007 Annual Report Download - page 41

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RBS Group • Annual Report and Accounts 2007
Business review
Average balance sheet and related interest
2007 2006
Average Average
balance Interest Rate balance Interest Rate
£m £m % £m £m %
Assets
Treasury bills and other eligible bills – UK 357 16 4.48 2,059 90 4.37
– Overseas 131 5 3.82 70 3 4.29
Loans and advances to banks – UK 20,999 1,028 4.90 15,850 697 4.40
– Overseas 13,795 626 4.54 7,440 282 3.79
Loans and advances to customers – UK 269,460 18,541 6.88 239,469 15,204 6.35
– Overseas 183,799 11,090 6.03 121,093 6,977 5.76
Debt securities – UK 14,197 898 6.33 13,143 662 5.04
– Overseas 32,420 1,614 4.98 22,012 1,051 4.77
Total interest-earning assets – banking business (2, 3) 535,158 33,818 6.32 421,136 24,966 5.93
– trading business (4) 313,204 202,408
Total interest-earning assets 848,362 623,544
Non-interest-earning assets (2, 3)311,914 210,358
Total assets 1,160,276 833,902
Percentage of assets applicable to overseas operations 38.0% 35.2%
Liabilities and owners’ equity
Deposits by banks – UK 52,951 2,234 4.22 35,998 1,393 3.87
– Overseas 34,559 1,417 4.10 28,813 1,228 4.26
Customer accounts: demand deposits – UK 93,764 3,296 3.52 86,207 2,428 2.82
– Overseas 30,739 1,035 3.37 13,127 441 3.36
Customer accounts: savings deposits – UK 36,334 1,658 4.56 30,933 1,058 3.42
– Overseas 29,908 1,005 3.36 19,766 529 2.68
Customer accounts: other time deposits – UK 88,702 4,202 4.74 67,806 2,807 4.14
– Overseas 47,056 2,283 4.85 36,839 1,636 4.44
Debt securities in issue – UK 67,310 3,582 5.32 55,912 2,670 4.78
– Overseas 50,064 2,650 5.29 25,249 1,076 4.26
Subordinated liabilities – UK 23,752 1,312 5.52 24,008 1,231 5.13
– Overseas 4,763 242 5.08 2,639 160 6.06
Internal funding of trading business – UK (68,395) (3,307) 4.84 (44,475) (1,893) 4.26
– Overseas (7,454) (321) 4.31 (4,930) (207) 4.20
Total interest-bearing liabilities – banking business (2, 3) 484,053 21,288 4.40 377,892 14,557 3.85
– trading business (4) 316,540 204,810
Total interest-bearing liabilities 800,593 582,702
Non-interest-bearing liabilities
Demand deposits – UK 18,416 17,909
– Overseas 14,455 11,668
Other liabilities (3, 4) 283,453 184,747
Owners’ equity 43,359 36,876
Total liabilities and owners’ equity 1,160,276 833,902
Percentage of liabilities applicable to overseas operations 35.9% 32.3%
Notes:
(1) The analysis into UK and Overseas has been compiled on the basis of location of office.
(2) Interest-earning assets and interest-bearing liabilities exclude the Retail bancassurance assets and liabilities attributable to policyholders, in view of their distinct nature.
As a result, net interest income has been adjusted by £85 million (2006 – £63 million).
(3) Interest income has been adjusted by £313 million (2006 – £215 million) and interest expense by £536 million (2006 – £465 million) to record interest on financial assets and
liabilities designated as at fair value through profit or loss. Related interest-earning assets and interest-bearing liabilities have also been adjusted.
(4) Interest receivable and interest payable on trading assets and liabilities are included in income from trading activities.