RBS 2008 Annual Report Download - page 43

RBS Group Annual Report and Accounts 200842
Business review continued
Average balance sheet and related interest
Statutory 2008 Statutory 2007
Average Average
balance Interest Rate balance Interest Rate
£m £m % £m £m %
Assets
Loans and advances to banks – UK 18,909 943 4.99 20,999 1,028 4.90
– Overseas 31,680 1,465 4.62 12,651 546 4.32
Loans and advances to customers – UK 321,066 19,066 5.94 269,460 18,541 6.88
– Overseas 393,724 22,893 5.81 175,914 10,106 5.74
Debt securities – UK 35,725 1,493 4.18 14,554 914 6.28
– Overseas 86,090 4,078 4.74 31,879 1,515 4.75
Total interest-earning assets – banking business (2, 3) 887,194 49,938 5.63 525,457 32,650 6.21
– trading business (4) 425,454 313,110
Total interest-earning assets 1,312,648 838,567
Non-interest-earning assets (2, 3) 728,037 284,405
Total assets 2,040,685 1,122,972
Percentage of assets applicable to overseas operations 48.6% 38.0%
Liabilities and owners’ equity
Deposits by banks – UK 46,217 1,804 3.90 52,951 2,234 4.22
– Overseas 113,592 4,772 4.20 31,073 1,170 3.77
Customer accounts: demand deposits – UK 99,852 2,829 2.83 93,764 3,296 3.52
– Overseas 70,399 1,512 2.15 30,739 1,035 3.37
Customer accounts: savings deposits – UK 42,870 1,708 3.98 36,334 1,658 4.56
– Overseas 72,473 2,203 3.04 27,645 902 3.26
Customer accounts: other time deposits – UK 95,181 4,011 4.21 88,702 4,202 4.74
– Overseas 106,306 4,097 3.85 43,913 2,099 4.78
Debt securities in issue – UK 111,099 4,617 4.16 67,310 3,582 5.32
– Overseas 138,297 6,171 4.46 49,848 2,627 5.27
Subordinated liabilities – UK 26,799 1,369 5.11 23,752 1,312 5.52
– Overseas 13,019 788 6.05 4,509 230 5.10
Internal funding of trading business – UK (85,664) (3,445) 4.02 (68,395) (3,307) 4.84
– Overseas (18,090) (729) 4.03 (7,454) (321) 4.31
Total interest-bearing liabilities – banking business (2, 3) 832,350 31,707 3.81 474,691 20,719 4.36
– trading business (4) 466,610 316,453
Total interest-bearing liabilities 1,298,960 791,144
Non-interest-bearing liabilities:
Demand deposits – UK 27,700 18,416
– Overseas 9,721 14,455
Other liabilities (3, 4) 645,760 255,598
Owners’ equity 58,544 43,359
Total liabilities and owners’ equity 2,040,685 1,122,972
Percentage of liabilities applicable to overseas operations 46.8% 35.9%
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 £84 million (2007 – £85 million).
(3) Interest income has been adjusted by £332 million (2007 – £313 million) and interest expense by £860 million (2007 – £536 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.