RBS 2010 Annual Report Download - page 63

2009 compared with 2008 - statutory
Operating loss
Operating loss before tax for the year was £2,647 million compared with
aloss of £25,691 million in 2008.
Total income
Total income increased 59% to £33,026 million in 2009.
Net interest income
Net interest income decreased by14% to £13,388 million.
Non-interest income
Non-interest income increased to £19,638 million from £5,248 million in
2008. This included a gain on redemption of own debt of £3,790 million.
Excluding the gain on redemption of own debt, non-interest income
increased by £10,600 million primarily due to the increase in income from
trading activities.
Operating expenses
Operating expenses decreased from £35,065 million in 2008 to £17,417
million of which integration and restructuring costs were £1,286 million
compared with £1,357 million in 2008. Write-down of goodwill and other
intangible assets was £363 million compared with £16,911 million in
2008.
Net insurance claims
Bancassurance and general insurance claims, after reinsurance,
increased by 11% to £4,357 million.
Impairment losses
Impairment losses were £13,899 million, compared with £7,439 million in
2008.
Risk elements in lending and potential problem loans represented 5.5%
of gross loans and advances to customers excluding reverse repos at 31
December 2009 (2008 - 2.5%).
Provision coverage of risk elements in lending and potential problem
loans was 45% (2008 - 51%).
Tax
The Group recorded a tax credit of £429 million in 2009, compared with a
tax credit of £2,167 million in 2008.
Earnings
Basic earnings per ordinary and B share, including discontinued
operations, improved from a loss of 146.7p to a loss of 6.4p.
61RBS Group 2010
Business review