RBS 2009 Annual Report Download - page 90

RBS Group Annual Report and Accounts 200988
UK Retail 2009 2008
£m £m
Net interest income 3,452 3,187
Net fees and commissions – banking 1,244 1,524
Other non-interest income (net of insurance claims) 251 227
Non–interest income 1,495 1,751
Total income 4,947 4,938
Direct expenses
– staff (845) (924)
– other (421) (421)
Indirect expenses (1,773) (1,851)
(3,039) (3,196)
Operating profit before impairment losses 1,908 1,742
Impairment losses (1,679) (1,019)
Operating profit 229 723
Analysis of income by product
Personal advances 1,192 1,244
Personal deposits 1,349 2,037
Mortgages 1,214 500
Bancassurance 246 217
Cards 869 831
Other 77 109
Total income 4,947 4,938
Analysis of impairment by sector
Mortgages 124 31
Personal 1,023 568
Cards 532 420
Total impairment 1,679 1,019
Loan impairment charge as % of gross customer loans and advances by sector
Mortgages 0.15% 0.04%
Personal 7.52% 3.71%
Cards 8.58% 6.67%
1.63% 1.09%
Performance ratios
Return on equity (1) 4.2% 13.1%
Net interest margin 3.59% 3.58%
Cost:income ratio 59.8% 62.4%
£bn £bn
Capital and balance sheet
Loans and advances to customers – gross
– mortgages 83.2 72.2
– personal 13.6 15.3
– cards 6.2 6.3
Customer deposits (excluding bancassurance) 87.2 78.9
Assets under management (excluding deposits) 5.3 5.7
Risk elements in lending 4.6 3.8
Loan:deposit ratio (excluding repos) 115% 116%
Risk-weighted assets 51.3 45.7
Note:
(1) Return on equity is based on divisional operating profit after tax, divided by divisional notional equity (based on 7% of divisional risk-weighted assets, adjusted for capital deductions).
Business review continued