RBS 2010 Annual Report Download - page 72

Non-interest income continued
2009 compared with 2008 - pro forma
Net fees and commissions fell by £486 million primarily due to the
withdrawal of the single premium payment protection insurance product
and the restructuring of current account overdraft fees within UK Retail
during the year, as well as to reduced fees received in Non-Core. This
was partially offset by improved performance in GBM (£112 million) and
US Retail & Commercial (£50 million).
Income from trading activities rose substantially during the year by
£13,083 million, principally due to lower credit market losses reflecting
improved underlying asset prices compared with 2008. Increased market
volatility and strong customer demand in a positive trading environment
also contributed to this improvement.
Other operating income increased by £243 million. This improvement
reflected a small gain in the fair value of securities and other assets and
liabilities compared with a loss of £1.4 billion in 2008 partially offset by
lower profits on sales of securities and properties and reduced dividend
income.
Insurance net premium income fell by £443 million reflecting lower
bancassurance fees, £288 million, and lower general insurance
premiums, £155 million.
2009 compared with 2008 - statutory
Net fees and commissions fell by £463 million primarily due to the
withdrawal of the single premium payment protection insurance product
and the restructuring of current account overdraft fees within UK Retail
during the year, as well as to reduced fees received in Non-Core. This
was partially offset by improved performance in GBM (£112 million) and
US Retail & Commercial (£50 million).
Income from trading activities rose substantially during the year by
£12,786 million, principally due to lower credit market losses reflecting
improved underlying asset prices compared with 2009. Increased market
volatility and strong customer demand in a positive trading environment
also contributed to this improvement.
In the second quarter of 2009 the Group recorded a gain of £3,790 million
on a liability management exercise to redeem a number of Tier 1 and
upper Tier 2 securities.
Other operating income decreased by £1,280 million. This reflected
changes in the fair value of own debt of £926 million together with lower
profits on sales of securities and properties and reduced dividend
income. Included in 2008 is a gain of £600 million on the sale of Angel
Trains.
Insurance net premium income fell by £443 million reflecting lower
bancassurance fees, and lower general insurance premiums.
RBS Group 201070
Business review continued