RBS 2009 Annual Report Download - page 98

RBS Group Annual Report and Accounts 200996
Ulster Bank 2009 2008
£m £m
Net interest income 780 773
Net fees and commissions 228 238
Other non-interest income 26 28
Non-interest income 254 266
Total income 1,034 1,039
Direct expenses
– staff (325) (330)
– other (85) (93)
Indirect expenses (343) (292)
(753) (715)
Operating profit before impairment losses 281 324
Impairment losses (649) (106)
Operating (loss)/profit (368) 218
Analysis of income by business
Corporate 580 618
Retail 412 396
Other 42 25
Total income 1,034 1,039
Analysis of impairment by sector
Mortgages 74 17
Corporate
– property 306 37
– other 203 7
Other 66 45
Total impairment 649 106
Loan impairment charge as % of gross customer loans and advances
(excluding reverse repurchase agreements) by sector
Mortgages 0.46% 0.09%
Corporate
– property 3.03% 0.34%
– other 1.85% 0.05%
Other 2.75% 2.14%
1.63% 0.24%
Performance ratios
Return on equity (1) (13.3%) 10.1%
Net interest margin 1.87% 1.89%
Cost:income ratio 72.8% 68.8%
£bn £bn
Capital and balance sheet
Loans and advances to customers – gross
– mortgages 16.2 18.1
– corporate
– property 10.1 10.9
– other 11.0 12.9
– other 2.4 2.1
Customer deposits 21.9 24.3
Risk elements in lending
– mortgages 0.6 0.3
– corporate
– property 0.7 0.5
– other 0.8 0.3
– other 0.2 0.1
Loan: deposit ratio 177% 179%
Risk-weighted assets 29.9 24.5
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