RBS 2010 Annual Report Download - page 89

Global Transaction Services
2010 2009 2008
£m £m £m
Net interest income 974 912 937
Non-interest income 1,587 1,575 1,494
Total income 2,561 2,487 2,431
Direct expenses
-staff costs (411) (371) (362)
- other (159) (161) (149)
Indirect expenses (894) (943) (864)
(1,464) (1,475) (1,375)
Operating profit before impairment losses 1,097 1,012 1,056
Impairment losses (9) (39) (54)
Operating profit 1,088 973 1,002
Analysis of income by product
Domestic cash management 818 805 795
International cash management 801 734 722
Trade finance 309 290 241
Merchant acquiring 451 505 527
Commercial cards 182 153 146
Total income 2,561 2,487 2,431
Performance ratios
Return on equity (1) 42.8% 42.2% 44.6%
Net interest margin 6.73% 9.22% 8.25%
Cost:income ratio 57% 59% 57%
£bn £bn £bn
Capital and balance sheet
Total third party assets 25.2 18.4 22.2
Loans and advances 14.4 12.7 14.8
Customer deposits 69.9 61.8 61.8
Risk elements in lending 0.1 0.2 0.1
Loan:deposit ratio (excluding repos) 21% 21% 25%
Risk-weighted assets 18.3 19.1 17.4
Note:
(1) Divisional return on equity is based on divisional operating profit after tax divided by average notional equity (based on 9% of the monthly average of divisional RWAs, adjusted for capital deductions).
87RBS Group 2010
Business review