RBS 2010 Annual Report Download - page 3

1RBS Group 2010
Essential reading
We have met, and in some
cases exceeded, the targets
for the second year of our
Strategic Plan.
2010 business achievements
Good progress against Strategic Plan targets
Core bank becoming stronger
Non-Core run-off progressing well
Significant progress on EC disposals
2010 financial highlights
Our 2013 vision
Enduring customer franchises
•A universal bank, anchored by
retail and commercial activities with
strong, complementary investment
banking capability
•A top-tier competitor in our main markets
Safer and more focused
•Capital and liquidity strength meeting
the highest international standards
•Gross reduction in funded assets
of £500 billion
A valuable, private sector bank
•Consistently profitable, with sustainable
shareholder returns targeted at 15% on
our tangible equity capital
•The Government will have begun to sell
its shares at a profit
£1.9bn
Group operating profit (1)
33%
Impairment losses
reduction
13%
Core return
on equity (2)
2.01%
Group net
interest margin
10.7%
Group Core Tier 1 ratio
56%
Core cost:income ratio
Notes:
(1) Group operating profit/(loss) before tax, amortisation of purchased intangible assets, integration and
restructuring costs, gain on redemption of own debt, strategic disposals, bonus tax, Asset Protection
Scheme credit default swap – fair value changes, gains on pensions curtailment, write-down of goodwill
and other intangible assets and RFS Holdings minority interest and excluding movement in the fair value of
own debt (FVOD). Statutory operating loss before tax of £399 million for the year ended 31 December 2010.
(2) Indicative Core attributable profit, excluding fair value of own debt, taxed at 28% on Core average tangible
equity (circa 70% of Group tangible equity based on risk-weighted assets).