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41
RBS Group • Annual Report and Accounts 2007
Business review
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.
2007 over 2006 2006 over 2005
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 bills and other eligible bills
UK (76) 2 (74) (48) — (48)
Overseas 2 — 2 —11
Loans and advances to banks
UK 245 86 331 22 26 48
Overseas 279 65 344 (72) 46 (26)
Loans and advances to customers
UK 2,000 1,337 3,337 1,681 13 1,694
Overseas 3,769 344 4,113 886 884 1,770
Debt securities
UK 56 180 236 (115) 80 (35)
Overseas 516 47 563 (23) 80 57
Total interest receivable of the banking business
UK 2,225 1,605 3,830 1,540 119 1,659
Overseas 4,566 456 5,022 791 1,011 1,802
6,791 2,061 8,852 2,331 1,130 3,461
Interest-bearing liabilities
Deposits by banks
UK (706) (135) (841) (44) (157) (201)
Overseas (237) 48 (189) (49) (288) (337)
Customer accounts: demand deposits
UK (227) (641) (868) (353) (19) (372)
Overseas (593) (1) (594) 17 (159) (142)
Customer accounts: savings deposits
UK (206) (394) (600) (133) (147) (280)
Overseas (318) (158) (476) 37 (185) (148)
Customer accounts: other time deposits
UK (950) (445) (1,395) (296) (183) (479)
Overseas (485) (162) (647) (164) (493) (657)
Debt securities in issue
UK (584) (328) (912) (133) (466) (599)
Overseas (1,263) (311) (1,574) (209) (234) (443)
Subordinated liabilities
UK 13 (94) (81) (3) (106) (109)
Overseas (111) 29 (82) — (6) (6)
Internal funding of trading business
UK 1,129 285 1,414 231 537 768
Overseas 109 5 114 81 87 168
Total interest payable of the banking business
UK (1,531) (1,752) (3,283) (731) (541) (1,272)
Overseas (2,898) (550) (3,448) (287) (1,278) (1,565)
(4,429) (2,302) (6,731) (1,018) (1,819) (2,837)
Movement in net interest income
UK 694 (147) 547 809 (422) 387
Overseas 1,668 (94) 1,574 504 (267) 237
2,362 (241) 2,121 1,313 (689) 624