RBS 2009 Annual Report Download - page 88

RBS Group Annual Report and Accounts 200986
2009 2008
£m £m
UK Retail 229 723
UK Corporate 1,125 1,781
Wealth 420 348
Global Banking & Markets 5,709 (1,796)
Global Transaction Services 973 1,002
Ulster Bank (368) 218
US Retail & Commercial (113) 528
RBS Insurance 58 584
Central items 292 1,025
Core 8,325 4,413
Non-Core (14,557) (11,351)
Operating loss (6,232) (6,938)
Amortisation of purchased intangible assets (272) (443)
Integration and restructuring costs (1,286) (1,357)
Gain on redemption of own debt 3,790 —
Strategic disposals 132 442
Gains on pensions curtailment 2,148 —
Bonus tax (208) —
Operating loss before tax (1,928) (8,296)
The performance of each of the divisions is reviewed on pages 88 to 107.
Pro forma Group operating loss is before 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.
2009 2008
Impairment losses by division £m £m
UK Retail 1,679 1,019
UK Corporate 927 319
Wealth 33 16
Global Banking & Markets 640 522
Global Transaction Services 39 54
Ulster Bank 649 106
US Retail & Commercial 702 437
RBS Insurance 842
Central items 1(19)
Core 4,678 2,496
Non-Core 9,221 4,936
Group impairment losses 13,899 7,432
Divisional performance
The results of each division on a pro forma basis are set out below. The
results are stated before 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.
Business Services directly attributable costs have been allocated to the
operating divisions, based on their service usage. Where services span
more than one division an appropriate measure is used to allocate the
costs on a basis which management considers reasonable. Business
Services costs are fully allocated and there are no residual unallocated
costs.
Group Centre directly attributable costs have been allocated to the
operating divisions, based on their service usage. Where services span
more than one division, the costs are allocated on a basis management
considers reasonable. The residual unallocated costs remaining in the
Group centre relate to volatile corporate items that do not naturally
reside within a division.
Treasury costs are allocated to operating divisions as follows: term
funding costs are allocated or rewarded based on long term funding
gap or surplus; liquidity buffer funding costs are allocated based on
share of overall liquidity buffer derived from divisional stresses; and
capital cost or benefit is allocated based on share of divisional risk-
adjusted RWAs.
Business review continued