RBS 2009 Annual Report Download - page 95

93RBS Group Annual Report and Accounts 2009
Business review
Global Banking & Markets 2009 2008
£m £m
Net interest income from banking activities 2,243 2,440
Net fees and commissions receivable 1,335 1,223
Income from trading activities 7,763 (743)
Other operating income (net of related funding costs) (332) (206)
Non-interest income 8,766 274
Total income 11,009 2,714
Direct expenses
– staff (2,930) (2,056)
– other (965) (1,269)
Indirect expenses (765) (663)
(4,660) (3,988)
Operating profit/(loss) before impairment losses 6,349 (1,274)
Impairment losses (640) (522)
Operating profit/(loss) 5,709 (1,796)
Analysis of income by product
Rates – money markets 1,714 1,641
Rates – flow 3,142 1,386
Currencies & commodities 1,277 1,539
Equities 1,474 368
Credit markets 2,255 (3,435)
Portfolio management and origination 1,196 858
Fair value of own debt (49) 357
Total income 11,009 2,714
Analysis of impairment by sector
Manufacturing and infrastructure 91 39
Property and construction 49 12
Transport 3—
Banks and financial institutions 348 186
Other 149 285
Total impairment 640 522
Loan impairment charge as % of gross customer loans and advances (excluding reverse repurchase agreements) 0.59% 0.29%
Performance ratios
Return on equity (1) 30.7% (8.4%)
Net interest margin 1.38% 1.34%
Cost:income ratio 42.3% 146.9%
Note:
(1) Return on equity is based on divisional operating profit after tax, divided by divisional notional equity (based on 10% of divisional risk-weighted assets, adjusted for capital deductions).