RBS 2009 Annual Report Download - page 115

113RBS Group Annual Report and Accounts 2009
Business review
Reconciliations of pro forma to statutory income statements
and balance sheets
Basis of preparation of pro forma results
The pro forma financial information shows the underlying performance
of the Group including the results of the ABN AMRO businesses to be
retained by RBS. This information is being provided to give a better
understanding of what the results of the operations might have looked
like had the acquisition of ABN AMRO as well as the transfers of
businesses to the other Consortium Members occurred on 1 January
2008.
Group operating (loss)/profit on a pro forma basis excludes:
•amortisation of purchased intangible assets;
•write-down of goodwill and other intangible assets;
•integration and restructuring costs;
•gain on redemption of own debt;
•strategic disposals;
•gains on pensions curtailment; and
•bonus tax.
Income statement for the year ended 31 December 2009 RFS Reallocation
minority of one-off
Pro forma interest items Statutory
£m £m £m £m
Net interest income 13,567 2,937 — 16,504
Non-interest income (excluding insurance net premium income) 10,592 2,128 3,922 16,642
Insurance net premium income 5,266 278 — 5,544
Non-interest income 15,858 2,406 3,922 22,186
Total income 29,425 5,343 3,922 38,690
Operating expenses (17,401) (4,096) 19 (21,478)
Profit before other operating charges 12,024 1,247 3,941 17,212
Insurance net claims (4,357) (500) — (4,857)
Operating profit before impairment losses 7,667 747 3,941 12,355
Impairment losses (13,899) (1,051) — (14,950)
Operating (loss)/profit (6,232) (304) 3,941 (2,595)
Amortisation of purchased intangible assets (272) — 272 —
Write-down of goodwill and other intangible assets (363) — 363 —
Integration and restructuring costs (1,286) — 1,286 —
Gain on redemption of own debt 3,790 — (3,790) —
Strategic disposals 132 — (132) —
Gains on pensions curtailment 2,148 — (2,148) —
Bonus tax (208) — 208 —
Operating loss before tax (2,291) (304) — (2,595)
Tax credit 339 32 — 371
Loss from continuing operations (1,952) (272) — (2,224)
Loss from discontinued operations, net of tax (72) (27) — (99)
Loss for the year (2,024) (299) — (2,323)
Minority interests (648) 299 — (349)
Preference share and other dividends (935) — — (935)
Loss attributable to ordinary and B shareholders (3,607) — — (3,607)